“Moving into Hyper Drive”
Since December 2016, the Melbourne new land market has clearly entered a new phase. Within the past three months land sale volumes have pushed higher and land prices have been increasing at an accelerated rate. The market cannot keep up with current levels of demand. The additional first home buyer incentives coming in to play in July 2017, is likely to place greater pressure on prices.
New Land Market Outlook
The outlook for the Melbourne market is for demand to remain strong over the coming quarter. Prices to move from the current $252,000 toward $270,000 per block. It can be argued, that a price point that exceeds $270,000 per block is moving beyond the fundamentals. The long running relationship between land and homes has been 40%. The drivers of demand remain strong. Migration flows continue to hold up. The state government is preparing to hand first home buyers a further bonus post June 2017. Not sure why the market needs this stimulus, however by the time it gets here, first time buyers may need the added cash to counter the inflated lot price. Contact Research4 for more detailed research via email R4 Insights 2017