The Q3 2024 National Cordell Construction Cost Index (CCCI) which tracks the cost to build a typical new dwelling, is up from a 0.5% rise over the June quarter and is the strongest quarterly increase seen from the 3 months to December 2022 (1.9%). Core Logic said the data would likely put additional pressure on the Federal Government’s target of 1.2 million new homes. Over the year to June, approximately 176,000 dwellings were completed which is – 26.6% below the 240,000 annually needed to fulfill the target. In August, national monthly dwelling approvals came in at -17.9% below the decade average and -30% under the 20,000 a month target needed to achieve the Government’s goal.
On a positive note: Victoria tied with South Australia for the smallest quarterly increase, both up to 0.8% over the quarter, whereas Queensland had the highest quarterly change of 1.1%.

GREENHILLS RD MEDIA
A property associated with one of KLM Spatial’s long time clients, Brookfield Properties was reported in the media this week. Greenhills Road (Cardinia Logistics Estate), appeared in The Age and The Urban Developer. It was reported the approval secures supply for small and medium enterprises seeking domestic supply chain solutions, a Brookfield spokesperson said. The report referred to the scale of the development being undertaken and the importance of this land where there is a shortage of industrial land.
Victoria Greenfield Market Report Q3 2024
Topics addressed in this include (See Full Report):
- Development Sites – opportunities and challenges in Victoria’s 10-year growth strategy (first image below)
- 47.71-hectare PSPs located in areas with high demand have been slated for long-term approval including the Clyde South PSP, the final major residential precinct in the Casey growth corridor. If not expedited, delayed development risks creating a housing shortage that could exacerbate affordability issues.
- Regional Land Market Outlook – interest rate cuts near the horizon, but affordability and strategic planning are critical factors
- Drouin & Warragul: This region recorded 42 sales in Q3. Although this is a 6% drop from last quarter, it recorded twice the number of sales from the same time last year and is the highest since Q1 2022.
- Overall, whilst the economic outlook is likely to improve in 2025, regional areas face challenges in construction including higher building costs compared to metropolitan Melbourne, and a shortage of skilled tradespeople. Yet, regional property demand is anticipated to remain robust, provided it aligns with affordability.
- Vacant Land Market – buyer sentiment improved as inflation concerns ease.
- Sales activity across Melbourne and Geelong growth areas rose 1% in Q3, wit 2350 lots sold. This is a
slight rise; however it signals a broader rebound in purchaser sentiment (see figures 3 and 4) - $100m sale in Bonnie Brook
- The recent $100 million sale of the rise; landholding at 562 & 600 Leakes Rd by RPM demonstrates forward developer confidence in Melbourne’s greenfield sector, despite cautious market activity from individual homebuyers
- Affordability and the resurgence of single storey townhomes – targeted medium density product paving the path to homeownership (see example below)


The legislation now means that gas can be stored offshore in underground
reservoirs deep in rock layers, where it formed naturally, before being
extracted.
This will ensure that supply can be made available when and where it is
most needed. Hopefully – this will reduce Victoria’s exposure to swings in
gas prices during periods of high demand and will provide supply for gas-
powered electricity generators to balance the electricity system when
required.
One proposed offshore gas storage project (which is approved) could
increase Victoria’s storage capacity by almost 50%.
The Golden Beach Energy Storage Project will become Victoria’s first
offshore gas storage facility, located off the coast of Gippsland. It will
complete an initial short period of production before it can be transitioned to a storage facility. It is expected to deliver ~25 per cent of Victoria’s annual
household and small business consumption of gas in about a year.
This is to help keep Victoria progressing to 95% renewable energy by 2035,
with gas providing the remaining 5% to maintain reliable and secure supplies
of electricity.
See link: More Gas Storage Secured For Our Energy Transition | Premier.

Designs unveiled for Melbourne’s newest station
VIC Gov – 15 Nov 2024 Update. See link: Designs Unveiled For Melbourne’s Newest Station | Premier.
Early designs for a brand-new station in Tarneit have been released.
It will be located near Davis and Leakes roads and will include 2
platforms with an accessible pedestrian underpass for crossing the
rail line. It will have a four-bay bus interchange, and a new road will
be built off Leakes Road – to provide access to 400 new car parks for
local commuters.
Construction is set to commence next year with operations expected
to start 2026.