Northern Corridor

Northern Growth Corridor experienced a significant surge in sales activity in Q2 2023, with the proportion of gross lot sales escalating to 35% - marking its highest share in over a decade. We recorded a remarkable 32% increase in sales this quarter, totalling 747 lots. All four sub-growth areas contributed to this growth, experiencing double-digit quarterly increases.

Lot absorption outpaced new supply, which rose by a modest 2% to 574 lot releases, despite the addition of two new estates in both Hume and Whittlesea. As a result, the average time spent on the market of lots sold in Q2 was three months - the lowest among all growth corridors.

The Northern Growth Corridor’s relative affordability (with a median lot price of $370,000) continues to attract buyers. This price point makes it less expensive than the Western (3%) and South East (15%) Growth Corridors.

It is this affordability factor that is supporting demand – particularly in an environment where purchasers are increasingly price-conscious.

Owner occupiers constituted a staggering 73% of all purchasers in the Northern Growth Corridor, with the majority of them being first home buyers. The proportion of buyers aged between 25-34 and 35 –49- years old was even – each accounting for just under 40%. Consequently, households comprising of couple with children households accounted for 47% of all purchasers.

The preference for single and double-storey homes was relatively balanced, leading to home size cohorts of 16sqs to 202sqs+, where each accounted for at least 20% of demand. This diverse preference spread out the budgeted new home construction costs; indicating flexibility among buyers in the area.

+32%

A substantial increase from 565 sales last quarter, taking the Northern Corridors share of sales to a decade high 35%.

350sqm

Median Lot Size

No change observed in median lot sizes.

Lot absorption outpaced new lot supply in Q2 2023.

$370,000

Median Lot Price

+2% +1%

Stock added to market - Northern Corridor