Buying land and building a new home is a significant undertaking, and as of December 2025, it’s a path many Melburnians are considering, particularly given the moderate dwelling value growth currently forecast for 2026.
In Melbourne, the process differs from purchasing an established property. Sellers of vacant land typically engage agents to market the block’s potential, emphasising zoning regulations, permitted building envelopes, and nearby amenities. Currently in Melbourne’s Eastern Suburbs, land sales often attract buyers seeking to customise their homes, particularly near sought-after school zones like those in Balwyn and Blackburn. The sales process for land is generally shorter than for established homes – typically 4-6 weeks – but due diligence is crucial. Buyers will investigate soil conditions, easements, and potential development overlays. Once land is secured, building contracts and permits add considerable time, and potential cost fluctuations need to be factored in. As of December 2025, building costs are stabilising, but remain sensitive to material supply and labour availability. Fletchers’ experience shows that marketing campaigns for land often focus on lifestyle potential, utilising visualisations and detailed plans to appeal to prospective builders. Expect agent commission to be similar to established property sales, typically between 1.5-2.5%.
Ultimately, buying land and building offers customisation, but requires careful planning and a thorough understanding of the Melbourne property landscape.