Hold steady: An Autumn market update with Ashley Bramich

Offering opportunities and optimism, local industry expert and Pace's Sales and Marketing Director explains how Melbourne has bravely weathered property market headwinds over the last 12 months.

Cool-heads prevail.

Developers and investors are cautiously biding their time before dipping their toes back into the market. We’ve noticed projects paused until inflation slows further, and first home buyers waiting it out until conditions improve. Even the established purchasers and downsizers have kept their cards close to their chest, seeking the best value for the family home, before hitting the market.


A slower recovery than expected.

Despite pockets of strength from suburb to suburb, we’ve recorded a lower Q1 re-entry rate. But, with a new RBA governor in place, our sights are set on a late-2024 rebound and conservative interest rate cuts.

"The long-anticipated 2023 plateau has only just arrived. We’re finally starting to see property prices, rates and supply costs settle."

A bullish outlook.

Globally, our bear days aren’t over yet. Our current economic conditions seem suppressed by the rising cost of living, low vacancies, and slowed projects due to competing demands for a skilled local workforce; driving developers to look beyond our shores. But, when one gear shifts, they’re all set to improve, with sought-after properties below the $750,000 mark primed to deliver favourable capital growth prospects for those ready to re-enter the market.

“With high immigration and low unemployment, Australia should soon experience some pre-pandemic prosperity,” says Ashley.


The silver lining.

Over the next 12-18 months, we expect an upswing in sale prices to catch up to elevated construction costs. We’re seeing developers competitively provide project incentives, with a growing number of new apartment, house and land packages on offer. Now is the time for first home buyers to find the most suitable (read: serviceable) property ahead of further increases. Stabilised interest rates may also bring good news for investors and empty-nesters, looking to downsize – or upsize their portfolio with robust rental income.

“Rather than trying to pick the bottom, seek affordability and the right debt ratio for you and, of course, do your own research,” Ashley concludes.

As an end-to-end developer, Pace weathers these conditions with integrity to deliver projects as intended. While we’re not immune to economic sentiments, we’re able to respond to market pressures with superior stakeholder alignment and a robust business model. And with a 30-year history, we have the balance sheet to back it up.

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