Bendigo

Following a robust period of triple-digit sales during the first half of 2022, the Bendigo market has undergone a significant contraction, marked by a decline to just 29 lot sales in Q2 2023.

This decline in sales is accompanied by a notable increase in inventory accumulation, reaching 205 lots by the end of the quarter. This level has not been observed since Q1 2020, despite a modest release of only 34 lots in Q2.

Despite the subdued sales activity, there are notable signs of resilience and potential opportunities. The pricing landscape also demonstrated a 3.2% increase (+$8,500), bringing the regional price to $275,500. This signifies a notable 8.5% surge (+$21,500) from the same quarter last year. Additionally, the median lot size saw a decrease of 24sqm, with a median size of 488sqm. As a result, the median price per square metre rose by 7.9% to $534.

Historically, Bendigo’s northern region has been the primary driver of sales activity. While HomeBuilder did stimulate activity in other areas, the northern region retained the majority of sales, accounting for 89% of the Q2 total.

Interestingly, the stock overhang for the quarter exceeded the median price of sold stock, with an overhang median price of $295,000, which is $20,000 higher than the sold stock. However, the overhang stock had a substantially larger median size of 647sqm, which is 159sqm more than the lots that were sold.

29 Gross Lot Sales

A substantial decrease of 74% compared to last year.

488sqm

Median Lot Size

A decrease of 24sqm from last quarter.

34 New Lot Releases

A modest increase in new stock coming off a low base.

$275,500

Median Lot Price

Despite a fall in sales activity, prices rose by $8,500 over the quarter.

- 41% - 5% +15 +3%

The current landscape means sales activity in Bendigo is expected to remain restrained in the upcoming year, particularly if prices continue to remain at their heightened levels. The market has not yet experienced the same degree of direct discounts that historically drove sales, meaning there is strong potential for developer discounts and incentives to emerge in the latter part of the year. This can drive up sales activity and engage potential buyers, particularly if developers focus on stimulating sales and addressing construction backlogs.

An increase in available stock in regions outside the north is also likely to invigorate buyer activity. While historically the northern region has been the driver of sales activity, a diversification of stock is expected to attract a broader range of households. The western region offers larger lifestyle lots at a comparatively lower price per square metre rate, while the eastern region provides a diverse selection including premium lots and higher price points. These factors cater to second or third-time homebuyers seeking varied options.