Issue 46 | The Property Development Review

VIC MARKET OVERVIEW

VICTORIA

VIC Market Overview with John Bongiorno

As we approach the traditional spring selling season for residential property, what’s your take on current sentiment amongst buyers and sellers. Sellers appeared to start to filter into the market July/August but that speed has tapered off whereas buyers entering the market has continued at a more rapid pace and hence we are seeing strong demand and strong results across all price ranges. Interest rate hikes have challenged the market over the past twelve months but with rates now entering a period of stabilisation, how are you finding the response has been from vendors. We initially thought that the 12 rate hikes that we have had would have possibly put pressure on some vendors but they seem to have absorbed the pressure and although results are strong, it doesn’t seem to be motivating anyone just yet (apart from those who are selling for normal reasons.) Reflecting on prevailing market dynamics, which properties are most in-demand from buyers currently. The hottest properties in the market are those that buyers can walk straight into that are either new or fully renovated, in other terms, turn key homes. With a resurgence in interest from expat and international buyers, have you observed a corresponding increase in transaction activity. Most definitely, with the weak Australian dollar, expats and international buyers are keen to take advantage of the current benefit they have over local buyers. In terms of your local market, what has been the appetite from buyers for new projects and what are the fundamentals that end-users are looking for in these developments. Good projects in good positions are still well sort after in all price ranges. From a developers perspective, where are the opportunities and what is the ideal product mix (townhouses, apartments, mixed-use, commercial). Position, position, position – innovation, innovation, innovation and quality, quality, quality is what the market wants When bringing properties to market, what is the most effective approach to marketing and what is your advice to vendors looking to sell this year. You get one chance at doing it properly and for the sake of 5 or 10 thousand dollars versus

JOHN BONGIORNO Sales Director Marshall White Stonnington

46 – September / October 2023

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