A CoreLogic-Housing Industry Association report released this week shows in the past financial year the cost of a patch of dirt surged a jaw-dropping $96,550 in Geelong, $76,000 in Shepparton, $64,500 in Ballarat, and more than $37,000 in Bendigo, as the wider Victorian median land price rose to $250,000.
But despite demand from investors and those selling a house in Melbourne driving the growth, on July 1 the state government quietly rescinded a $10,000 bonus grant used by thousands of first-home buyers building a new home.
It attracted 2783 applications from just 10 postcodes in the 12 months to its closing date on June 30.
This included 902 applications in the Armstrong Creek area west of Geelong, 318 around Ballarat and 275 in the Upper Plenty, Hidden Valley region north of Melbourne.
Ballarat-based Samm Jay Property buyer’s agent Simon Brearley said with investors and buyers relocating from Melbourne, “affordability is becoming a bit of an issue”.
“It has been good for first-home buyers, but it is getting harder,” Mr Brearley said.
“There’s pressure from so many different directions.”
HIA chief economist Tim Reardon said the $55,000 increase in regional Victoria’s median land price reflected “the shift in population out of Melbourne” and “the relatively small amount of land to accommodate that population”.
“We have seen a significant shift out of Melbourne towards regional Victoria,” Mr Reardon said.
Source: News.com.au