The Quiet Cost of Waiting
Right across the Surfcoast, from Torquay to Lorne, landowners who’ve held vacant blocks of land for years are starting to feel the pinch.
Whether you’re keeping a block for future use, inheritance planning, or waiting for “the right time” to build, the reality is shifting. Rising council rates, vacant land taxes, and infrastructure levies are making it more expensive than ever to simply sit on land. Add to that increasing construction costs and tighter planning regulations—and suddenly, waiting may not feel like the right choice.
What’s Driving the Pressure?
There are a few key forces at play:
- Rising Holding Costs
Many councils in Victoria, including Surf Coast Shire and the City of Greater Geelong, are actively reviewing how long vacant blocks are left undeveloped. While not as extreme as the rate hikes proposed in Frankston (300% in some key locations), councils are increasingly using financial levers—like reclassification of land use and higher minimum rates—to incentivise new construction. - Demand for More Homes, Sooner
Geelong and Torquay are seeing continued population growth, particularly from Melbourne-based buyers relocating for lifestyle and remote work. This growth is pushing councils and developers to unlock underutilised land to ease the pressure on housing affordability and supply. - Infrastructure and Planning Reforms
State Government policy is also driving development faster. The Victorian Government’s “Housing Statement” has set targets for new dwellings across regional centres like Geelong, and rezoning is happening to accommodate this. Land that remains vacant risks being bypassed by developers who are ready to move now.
Is Land Banking Still a Viable Strategy?
If you’re holding land in a high-growth corridor like Armstrong Creek, Mount Duneed, or the northern edges of Torquay, the real question is: can you afford not to build?
Vacant land doesn’t generate income, yet it still incurs annual costs—and those are only going up. Meanwhile, construction prices continue to rise incrementally. A block you planned to build on “someday” may soon require a significantly higher outlay just to get started.
Worse still, if zoning laws change or new infrastructure is planned nearby, delays can mean missed opportunities for capital growth or rental income.
A Smarter Way Forward: Build Better, Sooner
At NSL Builders, we support landowners who are ready to stop waiting and start building. We understand the local planning system, we know how to design to and manage a budget in today’s construction climate, and we specialise in building high-performance, sustainable and healthy homes that future-proof your investment. In short; building better.
Many of our previous clients have held land for years—and when they finally take the step to build, they’re often shocked at the present day return compared to what they imagined. When looking purely through a financial lens; a high-performance home will generally attract higher resale and rental value, whilst delivering significantly lower running costs compared to a standard home.
Let’s Build Something Better, Together!
Holding land in the Surf Coast region might have felt like a smart strategy five, ten or even 20 years ago—but with rising costs and intensifying demand for housing, it’s now a decision that needs careful reconsideration.
Building now means turning a static asset into a living, breathing home. One that serves you, your family, and future generations.
At NSL Builders, we’re here to help landowners turn vision into value—with homes that are healthier, more energy efficient, and designed to thrive in the Surf Coast climate.
Need Expert Advice? We’re here to help.
Book a Discovery Consultation to discuss your vision for your custom home project