Matthew George from Urban Activation Market Insights

Episode 46. Market Insights: Urban's Mike Bird chats with Urban Activation, Matthew George

In a recent interview with Matthew George, Sales and Marketing Director at Urban Activation, a leading project marketing firm with a $3 billion national pipeline, offered a nuanced analysis of the Australian property market. His insights, particularly regarding regional variations and buyer behaviour, hold significant value for developers navigating the current landscape.

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Divergent Markets: Melbourne vs. Gold Coast

The interview underscores the stark differences in market performance across Australian cities. Melbourne, according to George, presents a unique situation. Conversely, the Gold Coast market is experiencing exceptional strength. Here, George highlights consistent daily sales across their projects, with frequent price increases due to overwhelming demand. This trend, he emphasises, compels buyers to act swiftly to secure properties before prices escalate further.

Newcastle vs. Gold Coast: Buyer Profiles

The interview delves deeper into buyer profiles across regions. Newcastle, for instance, exhibits a predominantly local market fueled by upgraders and traders within the Hunter region. George mentions Third.i Group as a successful developer catering to this specific demographic. In contrast, the Gold Coast attracts a more diverse buyer pool. Here, according to George's insights from working with both Hirsch & Fagan and MRCB, nearly 75% of apartment purchases are made by investors, with a mix of permanent residents, weekenders, and potential relocators, primarily from Sydney, Melbourne, and Brisbane.

Reliable Partnerships:  The Importance of Builder Selection

The interview acknowledges the well-publicised challenges in securing builders. However, George highlights strategies employed by successful developers to mitigate these risks. Urban Activation, for example, emphasises strong developer-builder relationships.  Their ongoing projects with Hirsch & Fagan on the Gold Coast benefit from the latter's established partnership with Hutchinson Builders, a highly regarded national construction firm.  George acknowledges alternative approaches, such as Iris Capital's in-house construction team in Newcastle. However, he reiterates the importance of thorough due diligence for developers building their own teams.

Beyond Sales:  The Long-Term Perspective

The interview concludes with a focus on long-term project viability.  George emphasises the growing buyer sophistication, with increasing attention paid to developer track records, builder relationships, and financial stability.  This, he suggests, aligns with the growing role of funders in scrutinising developers and ensuring project completion.  The interview serves as a reminder that a strong reputation built on past performance and reliable partnerships is paramount for developers seeking long-term success.