The Geelong property market is witnessing a surge in land sales, with homebuyers grabbing incentives worth up to $50,000. As the region’s housing market battles affordability concerns, rebates of up to $40,000 on land purchases are proving to be a significant driver of this recent uptick.

In this blog, we’ll take a closer look at the current trends in the Geelong real estate market, the impact of these rebates, and what it could mean for both homebuyers and builders in 2025.

$40,000 Rebates Driving Geelong Sales

According to recent research from Red23, the number of land sales in Geelong increased by 16% at the end of 2024, thanks to the rising popularity of financial incentives. While this is a welcome boost for the industry, it’s important to note that sales are still significantly lower than long-term trends in the region. Despite this, the incentives being offered by major developers are helping buyers navigate the challenges of today’s housing market.

Leading developers in the region, including Villawood Properties, Stockland, and Dennis Family Corporation, are offering impressive rebates to buyers who purchase residential land, particularly titled lots. Buyers looking to secure their dream property in estates such as Armstrong Creek, Mount Duneed, and Lara can receive up to $40,000 in rebates.

This initiative, coupled with the $10,000 government grant for eligible buyers, means homebuyers can access up to $50,000 in total incentives, giving them a significant boost when purchasing their first home.

Why Are Incentives So Important in Today’s Market?

Incentives like these are critical in today’s challenging market, as homebuyers continue to face affordability issues. With mortgage rates high and housing prices on the rise, many buyers are struggling to afford their dream homes. Developers’ efforts to make land and properties more affordable through rebates are crucial for keeping the market moving.

The median land price in Greater Geelong recently reached $420,000, marking a modest increase of 2.26% over the last year. However, this slight price rise still falls below the historical trends of the region. Many buyers have been hesitant to enter the market due to rising interest rates and the increased cost of living, but these financial incentives are a glimmer of hope.

Builders Are “Praying” for Interest Rate Cuts

While these rebates are certainly helping buyers, the real challenge remains the high cost of financing. Builders and developers are desperate for relief, hoping for a reduction in interest rates to help stimulate the market further.

As Rory Costelloe, Executive Director at Villawood Properties, mentioned, many builders are “hoping and praying” for an interest rate cut in the coming months. With sales down by as much as 50% compared to the previous decade’s average, the pressure is mounting on builders to find ways to maintain activity in a slowing market.

“Builders are feeling the pinch, and it’s more important than ever for the Reserve Bank of Australia (RBA) to make a move on interest rates,” said Costelloe. “It’s crucial for bringing some affordability back into the market and giving buyers the confidence to proceed.”

The Role of Government Policies in Supporting First-Home Buyers

Government grants and rebates play an essential role in helping first-home buyers break into the market. With the right financial incentives, many buyers are finding it easier to afford their first home purchase, even amid the challenges posed by rising interest rates.

For those eligible, the combination of the $10,000 government grant and up to $40,000 in rebates from developers provides a powerful financial tool for securing a property in Geelong. These financial incentives make it possible for more first-home buyers to take that crucial step toward homeownership.

What’s Next for the Geelong Property Market?

Looking ahead, the Geelong property market is poised for a delicate balancing act. While incentives like rebates are providing relief to buyers, the overall affordability issue remains at the forefront. Builders and developers are hoping that interest rate cuts will provide the necessary momentum to stimulate the market.

As interest rates remain a hot topic, both builders and homebuyers will be eagerly awaiting the Reserve Bank of Australia’s next move. A rate cut could bring much-needed relief and revive activity in the property sector, benefiting both developers and those looking to buy their first home.