Biggest trends

Market recovery off to a sluggish start

Independent forecasters are typically predicting property prices will rise over the next two years. Strong migration and constrained housing supply are likely to continue to drive long-term price growth.

Buyers distracted by high stock on market

Record high levels of properties for sale is reducing urgency amongst buyers and making it hard to hold their attention. There is steady demand for good quality lifestyle property at different price points, but buyers have become sensitive to properties with perceived shortcomings.

Prices down but the peak not forgotten

Vendors with price expectations above market remains a challenge for the market. Honest appraisals supported by recent relevant sale evidence remains key to setting realistic expectations to provide the foundation for successfully selling.

Outlook for the next 12 months

Interest rates the one to watch

The Reserve Bank has recently lowered interest rates with further reductions anticipated over time. Interest rates remain a key pressure point for buyers so the future pathway for rates will likely be the main influence on the market in the short-term.

Remote working and connectivity extends buyer reach

A combination of improved connectivity coupled with working-from-home trends will continue to enable lifestyle ownership for a more diverse buyer pool. The search areas for some buyers will expand as they become less sensitive to driving distances.

Lifestyle owners remain watchful

The government’s changes to regulations and investment priorities remain on the radar for lifestyle property owners. Key areas to watch are interventions around the zoning of land and availability of infrastructure to service development on the edge of urban areas.