The real estate market is a dynamic and multifaceted industry that plays a crucial role in the economy. Over the years, it has experienced significant shifts and trends that have reshaped the way we buy, sell and invest in properties.
As we enter the new financial year we provide an overview of the current state of the residential real estate market, with a particular focus on apartment and townhouses, highlighting both key trends and developments that are influencing its trajectory.
In terms of pricing, we have seen a decline of 7.3% from the peak of the market in 2022. However, it is worth noting that prices for near new apartments in sought-after locations have remained relatively stable. This can be attributed to the limited supply of properties, making apartments more desirable to potential buyers.
One interesting observation is that off-the-plan apartments are being offered at above market rates compared to established properties. This is mainly due to the low supply of medium to high-density projects on the market. Owners believe that once interest rates stabilise, the market will quickly turn around, potentially leading to an increase in prices by the end of 2024 or early 2025.
However, despite these market dynamics, we have noticed a significant slowdown in transactions. Compared to the first quarter of 2022, transactions have declined by a third. This slowdown could be attributed to various factors including the impact of inflation and rising interest rates, which may have caused buyers to adopt a more cautious approach.
Overall, the current state of the residential market is characterised by affordability concerns, limited supply in certain segments, and a decrease in transaction activity. As always, market conditions can be fluid, and it is crucial for buyers, sellers, and investors to stay informed and adapt their strategies accordingly.
We hope this update provides you with valuable insights into the residential market from our perspective.
If you are interested in learning more about the residential market, or are considering purchasing a new property, please contact the team at Division today.
