Orens Market Overview Q1 2023

Sales activity across the Melbourne and Geelong growth areas recorded 1,879 lots over Q1 this year, deceased 9% from the previous quarter and two thirds lower than the same time last year, to the lowest record in the recent three years. Borrowing capacity continues to deteriorate as a result of the tenth consecutive rise to the cash rate in March, which has now lifted by a cumulative 350 basis points since the middle of 2022. Purchaser confidence remains heavily constrained, despite the growing incidence of incentives trying to entice purchasers to enter the new home market.
Melbourne’s median lot price dropped by 0.3% over Q1 to $380,900, while the median lot size shrunk by 2.1 % to 350 sqm, leading to the per sqm rates escalated by 2% to $1,088. In Geelong, as the median lot size increased by 3.8% to 400 sqm, the median lot price increased slightly by 2% to $385,000 and the average price per sqm dropped by 2% to $963.