Melbourne, Victoria

Whilst inquiry levels are at their highest in 12 months across all of Satterley’s Melbourne projects (as well as other key competitors), transaction volumes in the greenfield land market continue to lag.  Preliminary data from the Research4 second quarter NLSP indicates sales volumes in Melbourne averaged 497 gross lot sales per month during the quarter (average ~6,000 lots per year, down 7% from Q1 2019).  While the median price was reported at $332,000 per lot, it would be lower if the survey data had included negotiated discounts/rebates which are not shown on price lists.

Below are the top trading estates during Q2 2019 in Melbourne by gross sales:

  1. Edgebrook, Clyde North – 40 sales/month
  2. Arcadia, Officer –21 sales/month
  3. Gravenall, Caroline Springs – 16 sales/month
  4. Minta Farm, Berwick –15 sales/month
  5. Woodlea, Rockbank – 14 sales/month
  6. Mt Atkinson, Truganina – 13 sales/month
  7. Highlands, Craigieburn – 12 sales/month

(Source: Research4)

The graph below demonstrates the improvement in leads at Satterley estates which increased significantly following the May Federal Election.

While greenfield land sales and price activity stabilise, Melbourne’s population and employment continues to grow strongly.  ABS data indicates that Victoria’s population increased by 139,400 residents during calendar year 2018.  This equates to a growth rate of 2.2%, higher than the national average of 1.6%.  Seasonally adjusted unemployment increased by 0.2% to 4.8%, which is still well below the national figure of 5.2%.

(Source: ABS)

Figure 1 Population Growth Quarter on Quarter – Victoria

(Source:  ABS Cat 3101.0)