Regional Markets

Despite a decline in demand levels, there has been a slight uptick throughout Q2 2023. This revival in activity is anticipated to continue at a moderate pace throughout the latter half of the year and into the early months of 2024; projected to persist until a reduction in the cash rate provides some relief to overall household finances.

The scarcity of supply in the regional established market has led to a marginal 0.6% uptick in prices during this quarter, bringing the median price to $604,000. However, we must acknowledge that this value remains 1.2% lower than the figures recorded at the same time last year.

Although the Ballarat market witnessed a challenging period throughout 2022 (with four consecutive quarters of dwindling sales activity marking a sustained low), Q2 2023 injected some vitality back into the market. We recorded a noteworthy 108 gross sales, marking a halt in the declining trend previously witnessed and suggesting a potential reversal of the market’s challenging trajectory.

While the 151% surge (65 lots) remain 51% (112 lots) lower than the corresponding quarter last year, it still marks a commendable improvement.

Beyond the sales boost, another positive sign for the region was the introduction of 120 lots into the market, the highest for a quarter since Q3 2022. This reflects developer confidence in managing and advancing previous stock sold through the HomeBuilder program without major issues.

Despite reaching a peak of $315,000 this quarter, median lot prices have demonstrated minimal fluctuations despite the decrease in activity caused by rising household costs. However, Q2 presented a significant 4.3% decrease, equivalent to $13,499, bringing the median price to $302,500 – the lowest since Q4 2021. Notably, this reduction in price is attributed to the constant lot size of 448sqm, resulting in a 4.3% decrease in the price per sqm rate.

This price reduction aligns with expectations however, particularly when considering the prevalence of incentives and rebates in the market. Furthermore, these discounts are now being prominently displayed on retail price lists – successfully boosting buyer engagement.

It is important to highlight that the remaining stock at the end of the quarter had a lot price of $310,000, which is $7,500 higher than the sold stock. Additionally, the unsold lots were larger at 476sqm compared to the 448sqm of the sold lots. This underscores the market’s price sensitivity and emphasises the delicate balance developers must maintain between pricing and lot attributes.

Up significantly from the long time low last quarter of 43 sales.

448sqm

Median Lot Size

No change observed over the quarter.

446

Stock was boosted by an the introduction of 120 lots entering the market.

$302,500

Median Lot Price

Median lot price of stock on market at end of June is $310,000.

+151%

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