Victorian real estate change: Tight supply will push buyers from land to townhouses in 2022

The typical block of land across Melbourne and Geelong soared by almost $21,000 to $347,000 in the final months of 2021. This may cause a change as different types of homes gain popularity.

The typical land block across Melbourne and Geelong soared by almost $21,000 to $347,000 in the final months of 2021.

And they are expected to rise again this year, with land for sale scarce and developers expected to “drip feed” lots throughout 2022.

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The figures and forecasts come from RPM Real Estate which has just published its latest report on the Greenfield market. which also revealed that block sizes had shrunk to 356m² in the west of the city as property developers tried to maintain affordability.

Chief executive Luke Kelly said price growth followed 6,793 lot sales in the last three months of 2021, which topped numbers recorded in 2020 – despite the federal government offering $25,000 in HomeBuilder subsidies to this that time.

“It’s surprising, but it makes sense,” Mr Kelly said.

“Established housing prices continued to rise, while land market affordability was really quite good by comparison.”

He added that last year’s high demand should leave land in short supply this year, with developers expecting the best “drip” releases to catch up, which will again put “pressure on the market”. hike” on prices in 2022. The best availability is probably to the west around Melton and Wyndham.

However, Mr Kelly predicted that townhouses will be an increasingly dominant feature in new developments around Melbourne – already accounting for around 15% of homes in new developments.

The limited supply of land in the South East and Geelong is likely to make townhouses particularly popular in these areas, while RPM research shows that a quarter of all compact home sales over the last three months of 2021 were for first-time buyers.

Mr Kelly said National Pacific Properties’ Eliston estate in Clyde had been in demand thanks to its energy-efficient seven-star townhouses with three- and four-bedroom floor plans, as well as solar panels and car charging electrics included.

Elsewhere, homes in MAB Corporation’s Preston Crossing development have already attracted nearly 200 applications as part of a wider developer scheme to help market entrants by letting them buy before other buyers are allowed to. make.

They are among 92 homes designed by Hayball Architects for the next phase of the 244-home development.

Jellis Craig’s project manager, Richard Rose, said buyers to date had been attracted by the site’s aesthetics, location, ‘village‘ design and long list of groups working in other aspects of the project including Nightingale, Breathe Architecture, Archier – plus landscaping by award-winning TCL (Taylor Cullity Lethlean).

Archier has 26 townhouses under his belt on the project, seven of which are still for sale. Homes range from 155-230 sq ft with a mix of three and four bedroom floor plans and a backyard.

All buildings at Preston Crossing will meet a five-star Green Star standard with an all-electric design, water harvesting and rooftop solar.

Originally published as Victorian property change: Tight supply will push buyers from land to townhouses in 2022

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