News & Insights
New Home Demand Is Rebounding: What It Signals for Victoria’s Growth Corridors
KEY TAKEAWAYS
- Buyers are more cautious, not gone: focus has shifted to value, security, and lower risk.
- Melbourne stands out on affordability: now cheaper than most capitals, attracting renewed interest.
- Demand is rebounding: buyer interest hit a 4-year high, led by house & land.
- Certainty drives decisions: clear pricing and timelines are critical for buyers.
- House & land is the preferred choice: offers value, simplicity, and long-term security.
- Growth corridors = long-term upside: strong population growth + infrastructure = capital growth potential.
The conflict in the Middle East has introduced fresh economic uncertainty into the Australian housing market at a point when conditions were beginning to stabilise. Construction costs had moderated after years of significant increases, interest rate expectations had been easing, and buyer confidence was rebuilding across Melbourne’s outer suburbs. That backdrop has now shifted, with forecasters pointing to potential further construction cost increases, rate increases and sustained cost-of-living pressure.
The effect on buyer behaviour has been a recalibration rather than a retreat. Where buyers were previously weighing affordability against aspiration, value and lower risk have moved to the front of decision-making. That shift is showing up directly in where and what people are choosing to buy.
Melbourne is well-positioned within that context. The city’s median price stagnated compared to Sydney, Brisbane, Adelaide, Perth and Canberra due to the abundance of new apartments. Melbourne, Australia’s second largest and fastest growing city in terms of population, now has a median price below all capital cities other than Hobart and Darwin. In a market where buyers are prioritising security and long-term value, that relative affordability has become a primary drawcard, with some buyers even reversing the long-standing trend of relocating to South-East Queensland as a result.
Against this backdrop, realestate.com.au recorded its highest level of buyer interest in four years in early 2026, with the house and land market accounting for the majority of that activity. Ozzie Kheir, Founder and Managing Director of Resimax Group, says the underlying trend reflects a durable shift in sentiment.
“When value and lifestyle are the long-term focus, buyers gravitate back to detached housing. That has always been the foundation of Victoria’s growth corridor market. House and land remain the most practical pathway for families who want space, security and long-term value,” said Ozzie.
Is now a good time to buy or build a new home in Victoria?
The Victorian housing market has moved through a period of adjustment in recent years. Construction prices, prior to the middle east war were stabilising, as were delivery timelines, encouraging households to increasingly consider building and buying a new home.
In residential development, certainty is often as important as price. Buyers want clarity around build costs, completion timeframes and settlement expectations. As those elements become more transparent, buyers who may have been holding off on purchasing a home can move forward with greater confidence.
Government initiatives aimed at supporting first-home buyers, including the recently expanded Australian Government 5% Deposit ‘Home Guarantee’ Scheme and the Help to Buy Scheme, are also providing new pathways to help buyers enter the market.
These factors together are improving market sentiment amongst first home buyers, investors and upgraders.
Why are house and land packages leading buyer interest?
Across Victoria, house and land packages account for the majority of buyer demand in the new homes market. That preference reflects long-standing, practical drivers rather than trends.
Detached housing continues to offer space, flexibility and long-term security, particularly for young families and first home buyers who require proximity to schools, open space and transport connections. In established inner suburbs, these criteria can be increasingly difficult to find at an attainable price point.
Purchasing a house and land package can offer several practical advantages in the current market:
- Price clarity from the outset: Securing land and build costs upfront offers protection from price rises.
- Brand new home delivery: New builds comply with current building standards and include structural warranties, offering greater peace of mind compared to older homes.
- Streamlined process: Purchasing land and engaging a builder within the same estate, such as Tick Homes, can create clearer timelines and defined stages from contract through to handover.
- Masterplanned community benefits: House and land packages are typically located within estates designed around parks, schools, retail and future infrastructure, rather than ad-hoc developments or infill sites.
Are Melbourne’s growth corridors still the best place to buy a new home?
As detached housing continues to anchor new home demand in Victoria, Melbourne’s northern and western growth corridors remain central to the supply.
These suburbs are consistently among the fastest growing in Australia, are absorbing the majority of Victoria’s population growth, and are supported by expanding employment precincts, transport upgrades and staged infrastructure investment. Housing supply in growth corridors must therefore evolve in step with that demand.
Resimax Group’s acquisition and delivery strategy reflect long-term confidence in these areas. Communities such as Eynesbury, Tara and Talisen in Beveridge, and Newbridge South in Wallan, are positioned within established Precinct Structure Plans and aligned with long-term infrastructure sequencing.
“Growth corridors present one of the clearest value propositions in the Victorian market. Buyers are entering at today’s pricing, in areas that are still evolving. As population growth accelerates and infrastructure, schools and employment hubs come online, history shows that values respond accordingly. If you can secure a well-located property early in that cycle, the fundamentals are there to support long-term capital growth,” Ozzie said.
Are growth corridor communities a strong long-term investment?
For investors, rising new home demand provides an important signal. Detached housing remains a core asset class within Melbourne’s growth strategy, and outer communities continue to underpin the bulk of new residential supply.
As population growth continues and infrastructure investment expands across Victoria’s north and west, well-planned masterplanned estates are positioned to absorb long-term demand. Communities designed with integrated infrastructure, open space and staged amenity delivery tend to demonstrate not just resilience across cycles, but potentially additional growth due to their premium nature.
“The city is growing outward, not inward, and that detached housing in these corridors is the most in-demand product type. When you combine early-cycle entry pricing with sustained population growth and infrastructure rollout, the conditions are there for long-term capital appreciation. Investors who understand that growth trajectory tend to be rewarded over time,” Ozzie said.