Buy, Sell or Hold?

Here are some of our key takeaways:

1. We have passed the bottom of the market cycle – with strong price growth projected over the next 3-5 years.
2. Construction costs are exceeding current market prices, making new developments less financially viable, and increasing demand for existing properties.
3. Population growth is outpacing new supply which will continue to drive rental demand and yield increases.
4. There is no short-term fix for housing supply. This imbalance is encouraging more investors to re-enter the market.
5. Interstate buyers are already taking advantage of Melbourne’s relative affordability.

A recent article in The Age newspaper also reported that approximately 8,000 completed apartments remain unsold, many being offered at lower prices than newer off-the-plan options due to soaring construction costs. This presents a rare window for local buyers to secure high-quality, second-hand assets at competitive prices.