New home demand continues to moderate
Activity declined for the second consecutive month, with 842 gross lot sales recorded across metropolitan and regional growth areas in November, marking a 10% drop from October. Affordability challenges persist as interest rates hold steady throughout 2024 and construction costs remain elevated. As a result, rebates, discounts, government grants, and help-to-buy initiatives continue to support buyer activity. However, purchaser sentiment in the new home market remains more resilient in late 2024 compared to the same time last year as highlighted by a 25.1% annual growth in monthly lot sales.
Share of sales lifts in Northern corridor
The Northern growth corridor experienced the most notable jump in share of sales activity, with its proportion lifting to 27%, while increasing lot sales in Ballarat accounted for an elevated 6% of total sales. Conversely, the growth corridors of South East, Western, and Geelong all recorded double-digit percentage declines in monthly lot sales, reducing their respective share of sales by around one percentage point. The Western growth corridor maintained its position as the top selling region, accounting for 29% of total sales.
Melbourne's median lot price surpasses $400,000
Significantly, Melbourne’s median lot price surpassed the $400,000 mark for the first time in November, three years after reaching the $350,000 mark. This was quicker than the four years it took for the median lot price to jump from $300,000 to $350,000, and more than six years to rise from $200,000 to $250,000. However, average monthly lot price growth over each of these periods was similar, ranging between 0.3% and 0.4%. The time it took for the median lot price to rise from $250,000 to $300,000 was notably shorter at 9 months, resulting in average growth of 2.13%