In this episode of Market Insights, Urban discusses the state of play in the Australian property market with powerhouse developers Mirvac and TOGA. With both teams behind some of the country’s most iconic residential projects, they bring candid insights on buyer behaviour, pricing trends, and the benefits of running tightly integrated operations.

Key takeaways from the discussion:

1. Market Outlook: Limited Supply, Solid Demand

• Both developers are reporting strong sales activity through December, January, and February, especially across premium stock.
• Buyer demand remains high, especially in undersupplied locations.
• Prices are expected to keep climbing due to constrained supply and renewed buyer confidence, with new releases expected to perform strongly.
• Momentum is buoyed by a flight to quality, with buyers increasingly gravitating toward established brands.

2. Interest Rates & Affordability

• The recent interest rate cut has lifted sentiment, but more relief is needed to meaningfully shift affordability across buyer segments.
• Buyers at different price points experience varying levels of sensitivity to interest rates; affordable and mid-tier markets remain most impacted.
• Developers emphasised that affordability constraints are slowing decision-making, especially for price-conscious and first-home buyers.

3. Buyer Trends: Downsizers Lead, But Inertia Remains

• Downsizers remain a core demographic, but many are delaying the move due to a perceived lack of “value gap” between their current homes and new apartments.
• Projects that offer exceptional amenity and location can motivate hesitant downsizers, Harbourside by Mirvac is a key example.
• Developers are also focusing on lifestyle offerings, with strategic retail and precinct design playing a growing role in buyer decision-making.

4. Developer Reputation: Brand is Everything

• Buyers are more discerning, with developer track record and delivery certainty under close scrutiny.
• Both Mirvac and TOGA highlight the value of brand equity, customers often visit completed projects and assess finish quality firsthand.
• Mirvac was the most viewed developer on Urban throughout 2024, testament to enduring brand power.
• Walk-throughs of completed projects and loyal repeat buyers help reinforce credibility.
• Loyalty and referrals are a significant source of pre-sales:
  
  • Mirvac sees 30 to 40 per cent repeat purchases.
  • TOGA receives around 25 per cent of buyers via referral or repeat.

5. In-House Sales & Marketing: End-to-End Control

• Mirvac and TOGA both run fully integrated models, managing sales, marketing, design, and delivery internally.
• This “closed loop” allows for customer feedback to directly shape future design and development.
• Ownership from start to finish fosters deeper team accountability and a more seamless buyer journey.
• The developer brand consistently ranks as the #1 consideration for buyers, according to internal customer surveys.

Final Thoughts

• The key to success in 2025? Quality product, brand integrity, and staying in tune with what buyers actually want.
• “You can’t market from behind a desk”, both developers stressed the importance of staying close to the ground.
• With the right mix of trust, product, and agility, Mirvac and TOGA are well-positioned to lead through the next cycle.

Why This Episode Matters for Industry Professionals

• Buyer Sentiment: Get real-time insights into how interest rates and supply constraints are shaping buyer confidence.
• Downsizer Demand: Learn what it takes to move hesitant buyers, hint: standout amenity and emotional connection.
• Brand Power: Understand why developer credibility is now a top priority for buyers.
• Loyalty & Referrals: See how repeat buyers and referrals are driving up to 40 per cent of pre-sales.
• In-House Advantage: Discover how integrated sales, marketing, and delivery teams create a seamless buyer experience.
• Data That Matters: Focus on actionable metrics like showroom visits and repeat engagement to guide strategy.

The Market Insights podcast continues to serve as a crucial resource for real estate professionals. Episode 85 with Mirvac and TOGA is packed with insights you can take straight to the boardroom, whether you’re planning a new launch, refining your go-to-market strategy, or exploring how to future-proof your brand.