Winter state of the property market update with Ashley Bramich & Zafer Tillem

Employing decades of experience within the property industry, our Sales & Marketing Director Ashley Bramich provides insight into issues directly impacting the market at present. Additionally, Pace’s Construction Director Zafer Tillem offers his perspective on the unique conditions experienced within the building sector.

Since we last evaluated the state of the market, a federal election has occurred which resulted in a change in government, we witnessed three interest rate rises – with the possibility of further rises before the end of the year – leading to a reduction in consumer confidence and increased pressure on the industry. The present market conditions are arguably presenting the most challenging climate in recent years for new market entrants and established property investors alike.

Ashley and Zafer share their evaluation of the property and construction market and discuss how the current climate is affecting prospective property buyers.

“Whilst our margins have been impacted and we have observed a noticeable decrease in property sales, we have moderated costs where possible and have resisted pressure to pass on price increases to purchasers,” explains Ashley.

“Thanks to our strong balance sheet and long-standing relationships with all stakeholders, we have been able to largely withstand turbulent external conditions.”

“Our vertically integrated business model has proven to be critical. Whilst we are not immune to cost pressures, we can balance and manage our margins between our development and building businesses,” said Ashley.

Zafer echoed this sentiment of stoicism and confidence thanks to Pace’s successful operating model.

"Being an end-to-end developer and builder, we are not as affected by macro conditions as that of a standalone builder or developer. Our track record and financial stability is proving to be robust in such tumultuous times."

“In a time where it feels like every news outlet highlights the struggles in the property and construction sector, it is comforting to have the support of our trusted network of suppliers and subcontractors,” said Zafer.

An example of this perseverance is Pace 3058. We have brought forward the construction start date of this project despite the current tough market conditions. This confidence is bolstered by our strong leadership structure and financial acumen – coupled with the genuine appeal of the project. We are committed to delivering this project to purchasers and will continue to pursue other projects.

“It (Pace 3058) is a result of significant research into both the progressive nature of the suburb and identifying what buyers want, need, and appreciate in great design, sustainability, and amenity,” said Ashley.

Ashley offers a cool albeit pragmatic evaluation when asked to surmise his thoughts on what the immediate future holds.

"We are coming off an incredibly buoyant period and this shouldn’t be our measuring stick. While the Covid pandemic, supply chain issues and global geo-political tension are creating uncertainty, we are adapting and responding to continue delivering homes that Melburnians love to live in."

“We are still buying, developing, and launching exciting projects – like The Darley – that we are passionate about,” said Ashley.

Zafer concludes with similar sentiments,

“When you look across the Melbourne market or even the Australian market for that matter, there is only a handful of developers that I could name that are in the same sort of space and enviable position as we are,” said Zafer.

For 30 years, Pace has handled several property cycles with shrewd determination and dedication, with the ultimate goal of consistently delivering a quality product for residents.

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