New data from the Oliver Hume Quarterly Market Outlook revealed several breakthroughs in the Victorian land market for the last quarter of 2021.
According to the report, Melbourne’s median lot price hit a new high of $355,000, while key residential market growth corridors in Melbourne and Geelong hit a record median land price of over $300,000. .
The report also identified the top three municipalities in terms of median land price gains, with Cardinia leading the pack with a 23.2% growth in values over the year, resulting in a median land price of $429,900.
Casey came in second with gains of 20.5% over the same period last year and closed the December quarter with a median price of $418,000.
Melton ranked third among municipalities with a median land price of $347,500 at year-end.
Julian Coppini, managing director of Oliver Hume, said the strong conclusion to 2021 underscored continued strong buyer confidence in Victoria’s pristine land markets – and he looks optimistically towards 2022.
“While 2022 is likely to be a year of consolidation as the market faces both headwinds and tailwinds, we remain broadly positive about the outlook as the economy improves and let the borders reopen,” he said.
New inventory and accessibility issues have already slowed sales, but the market is still managed price growth over the past year.
For example, the city of Geelong saw the fastest annual price rise, with the median price rising 23.6% to $339,900 in the year to the December 2021 quarter, according to the report. .
Coppini said that the continued price growth is supported by “historically low interest rates and positive sentiment towards the real estate sector in general.”
In addition, demand for metropolitan and regional markets is still on the rise, but buyers’ appetite is stronger for the latter.
“We expect regional real estate to remain in high demand,” Mr. Coppini said.
Changes in the Victorian land market have set the stage for a new phase in the property market cycle, according to George Bougias, head of national research at Oliver Hume, with the landscape in 2022 becoming increasingly distinct from what it was during the previous two years. .
Reviewing the data in the report, Mr. Bougias highlighted five key factors, in addition to COVID-19, that could possibly influence the real estate market:
“These factors include higher inflation and rising interest rates, potential changes to lending policy by the Australian Prudential Regulatory Authority (APRA), upcoming federal elections and the gradual reopening of international borders.”
Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.
Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.