Geelong was Victoria’s top performer for land prices in the March quarter 2021 where most municipalities recorded increases in value.

The latest Oliver Hume Quarterly Market Insights report for the three months to the end of March shows residential land prices in the Geelong local government area (LGA) rose by $19,900 (up 7.2%) from the previous quarter.

Geelong was Victoria’s top performer for land prices in the March quarter 2021 where most municipalities recorded increases in value.

The Melton LGA was the second-best performer with land prices increasing by $12,500 (up 4.1%) while Whittlesea rounded out the top three with a $12,450 increase (up 3.9%).

The median (gross) price of metropolitan Melbourne conventional lots increased from $319,000 to $323,000 (up 1.3%). Across all lots, the median (gross) price increased from $319,000 to $320,000 (up 0.3%).

Only the Wyndham (down 0.4%), Cardinia (down 1.3%) and Hume (down 1.7%) municipalities experienced slight falls in land prices in the March quarter.

The median land price across all of Victoria rose by $7,000 (up 2.3%).

The data was compiled by analysing land sales at projects around Victorian key markets. The period also marked the final months of the Federal Government’s HomeBuilder grant and the data highlighted the impact of continuing low interest rates.

Oliver Hume National Head of Research George Bougias said that rebounding prices and robust sales volumes reflected growing confidence in the economy and the appeal of regional areas like Geelong.

“Demand is driving property prices to increase in many jurisdictions and is one sign that the market is continuing to rebound following the emergence of COVID last year,” Mr Bougias said.

“Land prices in regions like Whittlesea are at similar levels to what they were 12 months ago and some areas like Geelong are well above what they were just prior to the outbreak.

“Although government incentives are important, the market has proved its resilience and with interest rates set to remain at record lows for the foreseeable future, we’ll be looking for consistent, sustainable growth in the months ahead.”

Oliver Hume Chief Executive Officer Julian Coppini said that with the HomeBuilder grant ending on March 31, the results over the next quarter should demonstrate the increasing importance of the economic recovery underway.

“The underlying confidence in the Australian economy and property industry have been key factors in the resilient performance of the real estate market, not just government and Reserve Bank support,” Mr Coppini said.

“Land prices increasing almost across the board, in metro and regional areas, is a strong sign of a healthy market and a reason to be optimistic for its future.”

To request a copy of The latest Oliver Hume Quarterly Market Insights report please contact Oliver Hume via the below contact forms.