Western Corridor

Sales activity in the Western Growth Corridor is facing challenges, struggling to gain momentum, compared to the two other Melbourne growth corridors. In Q2 2023, gross sales edged higher by only 1% to 814 lots, remaining significantly lower (at 60%) compared to the same time last year. Consequently, its share of total lot sales has declined to a three-year low of 38%.

On the other hand, new supply recorded a stronger uptick, with releases increasing by 12% to 839 lots. This boost was primarily driven by significant increase in new supply in Wyndham – more than doubling from its long-term low in Q1.

Despite the overall marginal decline of 0.6% in the median lot price over Q2 to $382,500, the median lot size remained unchanged at 350sqm. Wyndham stood out with more attractive price points, as its median lot size was larger than Melton’s, despite offering more affordable median lot price. However, sales activity in Melton remained higher, which can be attributed to its larger number of active estates which is nearly 50% more than Wyndham.

814

Gross Lot Sales

A 1% gain over the quarter, but still 60% lower than the same time last year.

350sqm Median Lot Size

No change observed in the median lot sizes.

Owner occupiers represented the lowest proportion of purchasers in the Western Growth Corridor, accounting for 49% of buyers. Among these, 69% were first home buyers – marking the highest concentration among all growth areas. The majority of purchasers fell within the 25-34- and 35-49-years age groups – each cohort accounting for over 40% of purchasers. This indicates that couples with children are the most prominent household structure at 55%.

Approximately two-thirds all purchasers were considering building a single storey home, which is the highest share among all growth areas. This preference led to 40% of purchasers expressing interest in homes sized between 21sqs and 25sqs.

839

New Lot Releases

Driven by a boost in new supply in Wyndham, more than 2 times its long term low in Q1.

$382,500 Median Lot Price Largely holding constant

June 2022.