Issue 55 | The Property Development Review

THE PROPERTY DEVELOPMENT REVIEW

public transport and with access to major arterial roads and freeways are highly sought after. The North East Link project (due for completion in 2028) is the missing link in Melbourne’s freeway network and will connect the M80 Ring Road to the Eastern freeway. Once competed it will provide seamless access to most areas of Melbourne and beyond and reduce congestion on suburban streets. Locations that are set to benefit from this development include suburbs in three North and Eastern suburbs thus providing great connectivity to the wider Melbourne market. Recently, there’s been a strong re-bound in market activity & transaction volumes-how are you seeing this play out at ground-level & what has been the prevailing sentiment echoed from key clients. For most of 2024 the market has taken a cautious approach to purchasing property given the uncertainty around interest rates, unstable construction costs and global issues. The pending election in the USA has slowed a number of businesses down in their decision-making progress. Transaction volumes and stock levels are down Y/Y with average prime yields in the Melbourne market rising by 20bps in Q2 to 5.90%. We anticipate an uptick in deals towards the back end of this year and into 2025 as market sentiment and stability continues to improve.

August / September 2024 – 55

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