Victoria’s top 20 homebuilding hotspots revealed in new report

A new report commissioned by OpenLot.com.au has identified the 20 most popular homebuilding locations in Victoria among ‘mum and dad builders’ and professional developers.

The Victorian Building Boom Report assessed all suburbs in the state based on two key metrics from 2023: annual building approval numbers and year-on-year increase in median building size. The top 20 ranking was established by giving equal weight to these data points.

The research found that 17 of the top 20 locations are in Melbourne’s outer suburbs, between 20km and 50km from the CBD, while three are located outside Geelong.

For homes built in these suburbs during 2023, the median size ranged from 269.0 to 398.5 square metres, with median building costs ranging from $272,944 to $387,688.

OpenLot.com.au founder Qi Chen said the report had identified locations that strike a balance between affordability and liveability.

“Building a home in Victoria involves trade-offs – it costs too much for the average family if you build too close to the Melbourne or Geelong CBDs, while, for many families, you sacrifice liveability if you build too far away from the city centre,” Mr Chen said.

“What we discovered through our research was that the ‘wisdom of the crowd’ has identified locations in the sweet spot of affordability and liveability. Families on average incomes can realistically aspire to buy land and build quality homes in these suburbs, and because they’re in developed areas with plenty of amenity, they’re good places to live and raise children.”

Mr Chen also noted that a rare alignment of economic metrics means now could be a good time for many families to buy land and build a home.

“Victorian land prices are increasing, but slowly, which means buyers don’t have to rush their due diligence. The growth in building costs has now moderated, after rising sharply during the pandemic. Unemployment remains low, so most people can qualify for a mortgage. Many economists are saying interest rates have peaked, which means consumers can have confidence that their borrowing costs are unlikely to increase in the foreseeable future.”

The top five suburbs in the Victorian Building Boom Report are Fraser Rise, Truganina, Tarneit, Berwick, and Greenvale. The report provides key statistics for each of the top 20 suburbs, including median build cost, number of building approvals, median building size, and year-on-year increase in median building size.