Insights from the Savills Annual Residential Property Outlook

Michael Lang, State Director Victoria - Residential Savills Australia, recently hosted the Savills Annual Residential Property Outlook event, which brought together industry leaders to discuss the state and future of Melbourne's property market.

The evening was a rewarding opportunity for knowledge-sharing, networking, and connecting with like-minded individuals who share a passion for real estate.  Each of the panelists shared great insight; Benni Aroni of Pitcher Partners, Adelene Teh of Beulah and Bill McWilliams of MaxCap Group providing invaluable insights and thought provoking discussions.

Navigating Uncertainty with Optimism

Reflecting on the current state of the market, Michael Lang expressed a sense of cautious optimism, acknowledging that while challenges persist, there's a growing positivity about the next phase of the property cycle. This sentiment underscores the resilience of the market amidst ongoing uncertainties.

Demand Dynamics and Market Realities

Participants at the event perceived 2 and 3 bedroom residences as the most in demand. However, Michael Lang noted that their sales track record highlights the strength in one-bedroom transactions. This discrepancy is largely attributed to tightening budgets and the resurgence of investors in the market.

Shifts in Urban Development Patterns

One of the key takeaways from the event is the notable rise in developers constructing townhouses, particularly in inner Melbourne. This trend signals a shift in urban development dynamics, with older areas being targeted for knock-down and rebuild projects to create modern residences with established amenities. The State Government's emphasis on inner urban development, driven by the high costs of infrastructure in greenfield areas, further supports this trend.

Affordability Driving Housing Choices

Despite higher median prices for houses and townhouses in inner Melbourne, apartments emerge as a more affordable option for buyers. This affordability factor, coupled with high interest rates and reduced borrowing capacity, makes apartments a viable choice for many. Given the acute housing shortage, apartments are expected to become increasingly appealing for living, investing, and appreciating in value, similar to trends observed in Sydney over the past two decades.

Savills Residential: A Comprehensive Approach

Savills Residential stands out for its unique full-service offering, seamlessly integrating various stages of the property journey. Whether it's site acquisitions, valuations, or sales, the team is committed to helping clients thrive through their property endeavors.

“Just like the proverb ‘If you want to go fast – go alone - If you want to go far – go together’ we're your collaborators, your visionaries, and your partner to turning that development dream into reality” - Michael Lang