With both headline and core inflation now within the RBA’s 2–3% target range and no signs of a wage–price spiral, the central bank’s second rate cut in three meetings was widely anticipated. The decision will lower the average variable mortgage rate to approximately 5.81%, saving borrowers around $81 per month on a $750,000 loan. It is also expected to lift consumer confidence, which has fluctuated recently but typically improves following rate reductions.
Victoria recorded a clearance rate of 66% from 1,223 auctions held as of 25 May 2025, with 807 properties sold. While this is a slight drop from 68% this time last year, seller confidence is improving, with vendors more likely to meet the market and achieve the prices they’re seeking. The number of auctions is also on the rise, up from 890 the previous week and 1,087 year-on-year.
While there has not yet been a sharp upswing in buyer activity, confidence has been building since April in anticipation of this rate cut, and a steady lift in sales has followed. The RBA’s move is expected to inject renewed momentum into Victoria’s land market, particularly in key growth corridors.
What Can You Buy for $400,000?
For buyers with a land budget of $400,000, there is still strong value to be found in Melbourne’s outer suburbs and regional centres. Across Mitchell, Hume and Whittlesea, land options range from 263 sqm in Craigieburn to 911 sqm in Kilmore. Suburbs such as Kalkallo, Beveridge, Donnybrook and Sunbury offer mid-sized lots between 397–424 sqm — ideal for growing families seeking affordability within reach of established infrastructure.
In the western suburbs, larger blocks can be secured in Werribee (437sqm) and Tarneit (401sqm), while Wyndham Vale, Mambourin and Thornhill Park offer lots between 371–400sqm — well suited to standard family home builds. More compact options are available in Aintree (332 sqm), Truganina (331 sqm) and Fraser Rise (375 sqm).
In Melbourne’s southeast, buyers can find larger lots in Pakenham East (411sqm) and Clyde (365sqm), with smaller blocks in Clyde North (312sqm), Cranbourne East (314sqm) and Officer (268sqm).
Greater Geelong continues to present excellent value, with a $400,000 budget securing generous blocks in Lara (518 sqm), Charlemont (502 sqm), and Mt Duneed (447 sqm). Armstrong Creek also stands out with a 445sqm lot priced just under the $400,000 threshold, offering strong appeal for both owner-occupiers and investors. Land Price Movements
Cardinia remains the most expensive municipality, with a median land price of $485,000. Despite a minor monthly decline of 0.4%, values are up 5.3% year-on-year, reflecting ongoing demand. Casey recorded a monthly increase of 1.0% but is still 2.8% below April 2024 levels, suggesting some correction after previous growth.
Land prices in Hume and Wyndham remained relatively stable month-on-month, with minor annual changes (+0.3% and +2.3% respectively). Melton recorded the sharpest monthly fall at -2.7% and a 5.8% year-on-year drop, indicating potential oversupply or reduced demand.
Greater Geelong prices held steady in May but have declined 2.4% over the past 12 months. Whittlesea saw modest declines both month-on-month and year-on-year (–1.0%). Mitchell experienced a 2.0% monthly drop but remains up 3.0% annually, likely due to affordability and availability of larger land sizes.
Key Highlights:
• Buyers with a $400,000 budget can purchase land ranging from 263 sqm in Craigieburn to 911 sqm in Kilmore, offering diverse options.
• In Greater Geelong, $400,000 secures generous lot sizes between 445sqm and 518sqm in established growth suburbs like Lara and Charlemont.
• Western Melbourne suburbs provide family-sized blocks between 371sqm and 437sqm, well-suited to standard home builds within the $400,000 price bracket.
• Land prices show regional variation, with Cardinia rising 5.3% annually, while Melton experiences a 5.8% decline year-on-year.
• Greater Geelong’s land prices have remained relatively stable, with an annual change of approximately -2.4%, reflecting steady demand in key growth corridors.
• The recent RBA rate cut has bolstered consumer confidence, encouraging more buyers to re-enter the land market across Melbourne and Greater Geelong.
Publisher Website: www.homeshelf.com.au