The State of the State report, released this week by the Victorian Planning Authority, reveals residential land in Melbourne’s Greenfields is selling at a record pace.
First National Real Estate Neilson Partners’ Narre Warren sales manager, Michael Patchell, said locals can see the reality of this in the thousands of new homes recently constructed in the Officer, Clyde and Cranbourne growth corridor, with the most visible outcome being the pressure on our roads, schools and transport systems.
“This is set to continue with large tracts of land rezoned and to be developed for housing,” Mr Patchell said.
The report provides a snapshot of key demographics and economics metrics across Victoria, including population growth, house prices and building approvals.
It reveals Melbourne’s Greenfield areas are immensely popular for homebuyers, with 22,000 residential lots selling in the past four quarters – a record – and the strongest market in Australia.
In the year to June 2016, the median price for a Melbourne Greenfield lot was $221,730, which is cheaper than all Australian capitals except for Adelaide. Comparative prices in Sydney are more than double the Melbourne median, at $460,375.
However, land in Melbourne’s Greenfields has increased since last year, driven by a slight decrease in approved lots coming to market.
To counter this, the VPA said it has established a new program that will support councils to speed up approvals in the post-PSP process. It said this would ensure a strong pipeline of new houses going to the market, to maintain Victoria’s advantage in supply and affordability.
Victoria’s population is now six million, and is growing at a rate of over 100,000 people per year – the highest increase in Australia.
The report also revealed that Victoria’s construction industry remained strong, with $31 billion worth of approvals in 2015/2016.
The number of new residential dwellings approved in 2015/16 was 67,003 across Victoria, with 53% for detached houses, 16% for semi-detached dwellings and 31% for apartments.
VPA chief executive, Peter Seamer said the organisation thought it was important people understand what is happening in their city.
“For the past 10 years, the VPA has been designing terrific new suburbs that have plentiful open space, well-connected streets and lively amenity,” Mr Seamer said.
“We have also been focusing on key urban renewal precincts in the inner city and middle ring suburbs, including the Monash area, to ensure all areas of our city remain a terrific places to live and work.”