The Research Division of RPM Real Estate Group is pleased to deliver the
Residential Market Report – September quarter 2017
The vacant land market has continued to experience strong purchaser demand through September quarter 2017. Overall, gross sales across the growth corridors within Melbourne, Geelong and Surf Coast reached a high 6,747 lots in September quarter 2017 (-0.9% from peak in June quarter 2017, and +25.2% from September quarter 2016).
This volume of lot sales was above the number of new lot releases, resulting in a diminished level of total stock on the market across most growth corridors. Consequently, price pressures have emerged, with the Melbourne median land price of $288,000 in September quarter 2017 equating to growth of 6.3% from June quarter 2017 and 26.3% from September quarter 2016.
In addition to this robust demand, supply levels have been squeezed by the delay of a number of required PSPs and the increasing delays in titles. This has resulted in many developers ‘managing’ stock releases which have impacted on prices. As a consequence, until supply level concerns are tackled, lot price growth is unlikely to dissipate significantly in the near term, in particular with strong population growth and low borrowing costs underpinning buoyant new house demand.
Furthermore, this report provides you with an economic and housing construction update, along with the latest land analysis and news from the VPA.
Download the full report to find out more.