How Geelong's New Land Market Compares to Melbourne Right Now

Geelong Advertiser journalist Peter Farago reports on rising cost pressures facing Geelong home builders, as a HIA industry roundtable warned of red tape and tax burdens threatening the state's housing targets.

Geelong's Land Market Performance

Oliver Hume Chief Economist Matt Bell said Geelong's new land market was outperforming Melbourne's, with average monthly sales of 120 blocks in line with the long-term average and a median lot price of $397,000, just below Melbourne's median of just over $400,000. He noted Geelong's median house price of $740,000 sat below Melbourne's near-$800,000 median, keeping it in the more affordable end of the market.

Buyer Incentives and Established Home Competition

Mr Bell said land rebates in Geelong had run higher than in Melbourne, with incentives of $60,000 to $70,000 compared to $30,000 to $40,000 around Melbourne, though Melbourne developers were now introducing similar incentives of their own. He also pointed to government taxes and charges built into land prices as a factor drawing first-home buyers toward cheaper established homes, with some recently built homes now reselling for less than their original construction cost.

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