QMI: June 2024

A two-tiered land market is becoming increasingly apparent, with South East Queensland (SEQ) and Adelaide performing well while Victorian buyers remain hesitant.

The Victorian residential land market continues to face challenging conditions while relatively more affordable markets such as SEQ and Adelaide continue to experience growing levels of buyer demand and activity.

Furthermore, the Victorian market continues to be impacted by rising supply (both in established and off-the-plan markets) and changing expectations among buyers.

A slowing economy has also impacted Victorian buyers’ confidence. More broadly, higher interest rates and rising living costs remain key factors inhibiting many buyers’ ability to afford a new home.Victorian gross prices declined in the quarter due to higher interest rates and cost of living pressures. Incentives and rebates have become increasingly common across metropolitan Melbourne and some Victorian regional markets.

Gross prices in South East Queensland and Adelaide experienced strong growth over the quarter, both reaching new peaks during the June quarter.Buyer confidence and activity will be partly shaped by their views on potential interest rate movements and the impact of state / federal government cost-of-living stimulus packages.

Despite these challenges, a gradual improvement in market conditions and sentiment is anticipated over the medium term.

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Julian Coppini

Chief Executive Officer - Project Marketing