A slow market and decreasing price per square metre rate offers prospective buyers value for money in the weaker Geelong market.
Our Q1 2024 Victoria Greenfield Market Report showed a 3% rise in the median lot price to $406,000, however this was underpinned by a 9% rise in the median lot size to 437sqm, resulting in an overall decrease in the price per square metre rate.
Despite the value in the Geelong market, sales dropped 28% to reach a new long-term low, with just 98 sales recorded in the three months to the end of March – 46% lower than the prior corresponding quarter.
Geelong continues to experience sustained weak demand and stands out as the only corridor where stock returns exceeded new lot releases.
The low demand for new homes has extended the average time between lot releases and sales up to 211 days, the longest among all growth corridors and a 14% increase from the previous quarter.
RPM National Managing Director of Project Marketing Luke Kelly said the Geelong market remained highly challenged by affordability and reduced new supply.
“We did see new lot supply increase 51% to 89 lots compared to the past quarter, however that is well below the long-term average,” he said.
“The high price for lots, which is second only to the south east, is making it difficult for buyers facing cost of living pressures and reduced borrowing capacity, to get into the market.”
“While the price per square metre has come down, the market needs more incentives to spark action from buyers waiting on the sidelines.”
This article references findings from our Q1 2024 Victoria Greenfield Market Report.