Lots in Melbourne housing estates have reached historic lows, as buyers are forced to pay more to break into the market
Block sizes in new estates on Melbourne’s fringe are the smallest they’ve ever been, while prices are at record highs.
Demand remains for outer suburban blocks but is slowing down due to interest rate rises, cost of living pressures and higher building costs. That report revealed blocks in the Cardinia municipality had grown in price by an alarming 31.71 per cent year on year, while Casey and Greater Geelong areas grew by 19.59 and 31.72 per cent respectively.
“This is being driven by dampened consumer and buyer sentiment, especially around interest rates and inflation among other issues,” Mr Coppini said. “In more recent months we have seen buyer behaviour continue to moderate given market conditions … we think buyers will take more time going forward as they look at various options closely.”
“We’ve definitely seen that rising interest rates and cost of living pressures have forced many buyers to reassess borrowing capacity and buying decisions, which has seen a stabilisation in market activity in 2022,” Mr Kandelaars said.