Melbourne land prices stable as demand for small lots increases

Demand for Melbourne land continues to moderate with prices remaining stable in the three months to the end of September, compared to the June quarter. The median price of land in metropolitan Melbourne is now $325,000.

 

The latest Oliver Hume Quarterly Market Insights (QMI) report showed that while median prices were unchanged in the three months to September, strong growth in late 2017 and earlier this year delivered average gains of over 10% across all markets.

 

While prices were up over the year across all markets, the Mitchell Shire continued to be the most affordable despite recording strong growth over the quarter and over the year. The municipality of Melton experienced the largest median price growth for the second consecutive quarter, with the median price of lots now sitting above $300,000 for the first time.

 

Oliver Hume Chief Operating Officer Julian Coppini said the September quarter result reflected moderating of demand for Melbourne land.

 

“Overall, we expect prices to remain relatively stable although some locations may see median prices trend lower,” he said.

 

The Oliver Hume research, compiled from analysing thousands of transactions, showed also that sales volumes were lower as conditions moderated and developers wound back new releases.

 

 

Median Price

Quarterly Change

Annual Change

Metro. Melbourne

$325,000

0.0%

10.6%

Cardinia

$338,000

-7.1%

11.6%

Casey

$360,000

-1.4%

1.7%

Hume

$339,500

-3.0%

7.8%

Melton

$305,000

3.4%

13.8%

Mitchell

$277,000

1.8%

19.1%

Whittlesea

$330,000

0.9%

8.2%

Wyndham

$323,450

1.0%

12.3%

Oliver Hume National Head of Research George Bougias said one of the major market responses to the rapid price growth of recent years had been the increase in demand for smaller, more affordable lots.

Media enquiries to Ben Ready on 0415 743 838.