Melbourne homebuyers’ ‘last chance’ to secure land under $500k | RPM

The city’s growth corridors are set to become a battleground for first-home buyers and investors. Find out where you can still snag one for under $500,000.

David Bonaddio

@daveobigbro

3 min read

November 27, 2024 - 11:50AM

Melbourne and Geelong’s growth corridors are promising a way in for buyers trying to secure a new home.

Melbourne is seeing a resurgence in first homebuyers and investors securing land for under $500,000, with experts penning the city as having some of the best opportunities to get bang for their buck.

However, with increasing demand, some of these investment opportunities might soon become financially out of reach with anticipated interest rate cuts in the new year.

RPM Real Estate group revealed the southeast growth corridor stands out for buyers seeking a secure investment, with areas like Officer ($484,000), Clyde North ($436,000) and Clyde ($412,000) offering 350sq m blocks for under $500,000 — with Berwick ($532,000) being the only outlier.

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RPM real estate group director Luke Kelly said the southeast was “highly regarded” not just for its stability but for its potential to weather market fluctuations with minimal value depreciation.

“The southeast is the most highly regarded area of Melbourne for new property coming onto the market – the market has been resilient even with the changing economic climate” Mr Kelly said.

“For buyers looking at more cost-effective options Geelong now presents good value compared to 12 months ago.

RPM director Luke Kelly said Melbourne and Geelong has prime greenfield investment opportunities at the moment.

“Recent price corrections have made the region exceptionally attractive – it’s affordable and has growth potential.”

While the southeast and Geelong draw buyers and investors, Mr Kelly said Melbourne’s western growth corridor remains popular due to its affordability.

“Despite a six per cent decline in sales during the last quarter, municipalities like Melton and Wyndham are still highly attractive due to the corridor’s standing as the most affordable for land in Melbourne,” Mr Kelly said.

“The area has strong appeal to first-home buyers and investors alike – in outer areas, approximately 50 per cent of buyers are first-home buyers.

Geelong’s “recent price corrections” has made the region more affordable to buyers.

“Melbourne’s growth corridors are not just geographical expansions but strategically planned areas for both immediate and long-term investment opportunities.”

The real estate group director said while some regions currently offer affordable entry points, the current “market dynamics” suggest that these opportunities might not last.

“First-time buyers and seasoned investors should remain vigilant, capitalising on market trends while also looking ahead to the future potential these corridors present.

“Government policy, strategic land releases, and evolving buyer preferences are the keys things to watch … understanding the nuances of each corridor and region is crucial for buyers making informed investment decisions.

Clyde North's Smiths Estate is just one of the many new estates in the City of Casey.

“The Melbourne market is just as diverse as it is promising – it could be their last chance before the interest rate cuts and demand increases, buyers should act now.”

However, RPM strategy manager Tim Hyland warned of possible pitfalls – while strategic planning is in place, execution remains a potential bottleneck that could hamper affordability if not addressed properly.

“While this move offers some clarity, it also raises key concerns around practical delivery,” Mr Hyland said.

The northern suburbs are also proving affordable and popular with buyers. Picture: NewsWire / Andrew Henshaw

The RPM report found the Northern Growth Corridor is continuing to perform well, maintaining a 29 per cent share of total sales – with a mixture of titled and non-titled lots offering flexibility for buyers.

Areas such as Wallan, Beveridge and Woodstock are offering buyers offering 350sq m land between $310,000-$345,000.

Meanwhile, the South-East’s has a 15 per cent, with the regions capability adapting to rising demand.

The City of Casey, in particular is a focal point for new estates.

RPM national managing director said reduced inflation pressure has eased market conditions in Melbourne.

RPM national managing director of communities Rod Anderson said there had been a change to buyer behaviour, noting a modest improvement in buyer sentiment following recent financial measures and reduced inflation pressure.

“Buyer sentiment improved as inflation concerns eased,” Mr Anderson said.

Despite this, Mr Anderson said the overarching concern within the market is affordability, with the sensitivity continuing to dictate buying patterns and property development strategies across Melbourne.

Wallan tops the list as one of the best places to buy land in Melbourne.

RPM general manager Michael Staedler said the anticipated interest rate cuts are expected to play a pivotal role in revitalising the market further.

“Favourable purchasing conditions that emerged this quarter are likely to boost buyer confidence heading into 2025,” Mr Staedler said.

As such, Mr Staedler added these economic shifts are likely to further influence buyer purchasing decisions.

Cheapest Melbourne and Geelong suburbs to buy land (350sq m)

Suburb	Area	Price
Wallan	North	$310,000
Melton South	West	$320,000
Mambourin	West	$328,000
Beveridge	North	$337,000
Bellarine	Geelong	$340,000
Armstrong Creek	Geelong	$344,000
Woodstock	North	$345,000
Wyndham Vale	West	$347,500
Lara	Geelong	$349,900
Diggers Rest	North West	$350,000
Manor Lakes	West	$350,000
Sunbury	North West	$353,900
Rockbank	West	$358,000
Werribee	West	$361,000
Strathtulloh	West	$363,000
Donnybrook	North	$378,500
Kalkallo	North	$381,000
Tarneit	West	$383,900
Mickleham	North	$393,000
Truganina	West	$393,500
Mernda	North	$394,000
Bonnie Brook	North West	$396,000
Deanside	West	$399,000
Thornhill Park	West	$402,000
Fraser Rise	North West	$410,000
Clyde	South East	$412,000
Craigieburn	North	$413,000
Wollert	North	$420,000
Clyde North	South East	$436,000
Greenvale	North	$473,000
Officer	South East	$484,000
Berwick	South East	$532,000