Ballarat new land sales dropped more than 40% in Q1 2024 as the regional market failed to maintain the momentum from Q4 2023.
Our Q1 2024 Victoria Greenfield Market Report recorded 59 sales across the region this quarter, a drop from 103 in Q4 2023, suggesting incentives and rebates heavily promoted late last year had a notable impact on buyer interest.
However, the number of lot sales was 37% higher than the same period in 2023.
Our research also shows a slight 1% decline in Ballarat’s median lot price to $307,000 compared to the past quarter, equaling a 3% drop from the prior corresponding period.
Alongside the modest price reduction was a noticeable decrease in the median lot size, which fell by 7% (-31sqm) to 417sqm.
RPM National Managing Director of Project Marketing Luke Kelly said despite the fall in sales and prices, there remained pent-up demand in the Ballarat market.
He said major improvements in activity were not expected in the short-term due to the challenging lending environment, however opportunities remained for active buyers who now held more negotiating power to secure a positive deal.
“It seems the rebates and incentives on offer in Q4 pulled demand forward into that period, and resulted in reduced activity in Q1 2024, which underscores the importance of price points in driving buyer interest,” he said.
“Regional migration is expected to remain elevated compared to pre-pandemic levels, driven by affordability and lifestyle preferences.”
“The level of demand will hinge on availability of appropriate lots in each region, with price and size being key considerations.”
“Many local buyers have been priced out of the established market, increasing demand for smaller, more budget-conscious options such as townhomes.”
“While lifestyle lots will continue to be in demand, developers offering a variety of lot sizes and types will expand the buyer pool.”
This article references findings from our Q1 2024 Victoria Greenfield Market Report.