A GROWING number of families are “walking away” from deposits on house and land packages in the northern suburbs, according to research.
More than one in three deals fell through with buyers returning 1800 building lots to developers across Melbourne in the September quarter.
In the north, the hardest hit areas were Epping, Mernda-Doreen, Wallan and Craigeburn, said Colin Keane, director of analyst group Research Four.
He said the number of deals cancelled in the outer northern suburbs was higher than the average Melbourne rate of 30 per cent.
Mr Keane said his company’s latest National Land Survey Program research was alarming when compared to the 5 per cent average cancellation rate in 2009-10, before the property market collapsed.
He said Wallan was the hardest hit with 44 per cent of new home contracts cancelled. ” Epping experienced just under 40 per cent, Craigieburn 37 per cent and the Mernda market posted a cancellation rate of 31 per cent,” he said.
“Under normal conditions these markets would experience a 5 per cent cancellation rate. However, since June 2012 the number of deposits being left on the table has been steadily rising.
“The rise in cancellation rates has coincided with a dramatic drop in new land sales across these markets.
“Builders and families are prepared to walk away from their deposit because of a range of factors, including job uncertainty.
“With the loss of the $13,000 state government first home-buyer bonus in July 2012, the ability for new families to purchase has been significantly diminished.”
