Last year it became apparent that Melbourne’s house and land market had become an giant bubble after the median price for a housing lot hit $339,000 – up 21% in only 12 months – with steeper rises in the cost per square metre:
In August 2018, the panic began to set in with land speculators rushing for the exits.
In March, the Urban Development Institute (UDIA) reported the cancellation rate among lots had jumped from 5% in the three months to September to 12% in the three months to December, suggesting “a level of panic across builders and/or consumers”, with the Melton growth corridor in Melbourne’s West experiencing the highest cancellation rate.
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