In this episode of Market Insights, Mike Bird, CEO of Urban.com.au, sits down with Heath Thompson from Projects by Buxton to discuss the evolving property market landscape in 2025. The conversation highlights renewed buyer confidence, particularly among downsizers and investors, and how developers are seizing the opportunity to launch long-awaited projects.

Market Trends and Buyer Sentiment

Reflecting on the shift from 2024, Heath Thompson notes,

‍"It's actually started a little bit better than I thought. It was a pretty tough year last year, but we've had some really encouraging signs."

Buyers who were on the sidelines are now re-engaging with the market, signaling a shift in sentiment. While Projects by Buxton predominantly caters to downsizers, Thompson has observed a resurgence in investor activity.

‍"We've actually seen some investors coming back to the market, and given that we haven't really been targeting that, I think that's really encouraging."

Mike Bird echoes this optimism, mentioning a significant increase in project launches in early 2025,

‍"We've had more project launches in February than any other time in the company's history."

Spotlight on The Edison, North Fitzroy

A key project discussed is The Edison in North Fitzroy, developed by Second Nature and designed by Austin Maynard Architects. This project has seen overwhelming interest, primarily from locals.

Thompson shares, "Out of around 200 inquiries, only five have come from outside North Fitzroy. The rest are locals or former residents wanting to move back."

The architectural design pays homage to the neighborhood’s character, incorporating a vertical rhythm and hit-and-miss brickwork that provides privacy while allowing ample natural light. The project's interiors are designed as a "blank canvas," allowing buyers to personalize their space. Key features include fluted glass shower screens, large light wells, and integrated landscaping.

Sales and Buyer Preferences

The Edison offers a diverse range of residences, including two-bedroom apartments in the low $1 million range, penthouses exceeding $4 million, and unique townhouses priced between $2.25 million and $3 million. A significant portion of buyers are down sizers looking for a flexible layout, with an increasing demand for home offices and secondary living spaces.

Safety Beach: A Different Market Approach

Switching gears, the conversation moves to Safety Beach, where Buxton is marketing a completed project by renowned builder-developer Figurehead. Unlike The Edison, this development is move-in ready, attracting local downsizers looking for a low-maintenance lifestyle near Martha Cove Marina.

According to Thompson, "The quality of this build is next level. Figurehead has been left to build it the way they want, and the proof is in the finished product—it’s already won awards."

Pricing starts at $795,000 for two-bedroom apartments and $1.8 million for three-bedroom units. Surprisingly, the project has also garnered investor interest, despite not being marketed towards them.

The Road Ahead: 2025 Market Outlook

Looking ahead, Thompson remains optimistic, citing improved sentiment and anticipated interest rate cuts as key drivers.

He notes, "Even if we don't get a rate drop at the next RBA meeting, we know it's coming. The speculation and nervousness of rate hikes are behind us."

Melbourne’s affordability, compared to other major Australian cities, further reinforces its potential for price growth. With this positive momentum, Projects by Buxton is selectively taking on new developments, focusing on quality projects that align with their market strategy.