Melbourne has the largest and most affordable supply of greenfield properties in Australia, according to the most recent market analysis.
The National Land Survey Program’s quarterly report shows 1300 greenfield lots a month were sold in Melbourne in the March, 2015, quarter – more than 30 per cent of all residential sales in growth corridors across the country.
Greenfield sites are undeveloped land identified for residential development and are usually on metropolitan fringes.
Urban Development Institute of Australia chief executive officer Danni Addison said Melbourne had regained its title as the highest volume greenfield market in Australia with 31 per cent of national sales.
“Higher demand in Melbourne has been driven by an increase in the number of trading estates, competitive prices, a robust established housing market and historically low interest rates,” she said.
“Coupled with this demand, healthy competition between developers is ensuring that Melbourne is producing the highest volumes of affordable land supply in the nation.”
Melbourne’s median greenfield lot price is $210,000, compared with $260,000 in Perth, $250,000 in south-east Queensland and $395,000 in metropolitan Sydney.
Simon Pressley, managing director of Propertyology, said Hume and Whittlesea had experienced population growth last year well above that of greater Melbourne (2.3 per cent) and the national average (1.8 per cent).
Hume grew by 3.1 per cent in the 2013-14 financial year and Whittlesea by 4.4 per cent.
“We anticipate moderate price growth for the Hume and Whittlesea regions over the next couple of years.
Developers have large stockpiles of land in the region and are well placed to supply property ahead of demand, thereby capping price growth rates,” he said.
Samantha and John Cacchione were the first residents to move into the Merrifield Estate, one of Melbourne’s largest residential developments that is under construction in Mickleham.
They are expecting their first child and moved to the estate from Epping for the open space, large blocks and short commute to the family business in Campbellfield.
“We thought this was somewhere we wanted to raise our kids,” Mrs Cacchione said.
