Real estate buyer activity in Melton has decreased over the last year, according to the latest quarterly data from RPM Group.
The organisation’s Greenfield Market Report for the second quarter of 2022 has shown that buyer demand has shifted from Melton to Wyndham, with the latter’s sales 3 per cent higher this quarter.
According to RPM, while Melton had 14 more active housing estates than Wyndham, many were nearing completion
Meanwhile, Wyndham had 5 per cent more new lots released than Melton due to larger estates with availability.
The report showed that the market for housing in estate developments had significantly slowed across the state in the latest quarter, due to pressures caused by inflation, increasing construction costs and rising interest rates.
RPM managing director of project marketing Luke Kelly said real estate buyers currently faced multiple challenges that weren’t present two years ago.
“Many buyers have been forced to reassess their borrowing capacity and re-evaluate their buying decisions in light of interest rate rises, including the most recent 0.5 per cent increase in the cash rate to 1.85 per cent,” Mr Kelly said.
“At the same time, they’re facing increasing residential construction costs, rising living expenses
fuelled by inflation and higher home loan repayments.”
For the latest quarter, the western region of Melbourne made up 45 per cent of the total sales in Victorian growth corridors, despite sales falling 9 per cent during the quarter to 2,049 lot sales.
Estates in Thornhill Park and Rockbank, some of the newer developments in the Melton municipality, are filling up with few lots available.
RPM managing director of transactions and advisory Christian Ranieri said typically the undeveloped land real estate market wasn’t normally affected by issues that negatively impacted the rest of the residential market.
“Greenfield development sites, particularly around Melbourne, are scarce,” Mr Ranieri said.
