Navigating Challenges and Embracing Opportunities: Melbourne’s Property Industry in 2024

As we step into the new year, the Melbourne property industry braces for another dynamic chapter, with a mixture of challenges and exciting developments planned for Resi Ventures. To gain insights into what lies ahead, we sat down with co-founders Khurram and Anthony. Here are their reflections on 2023 and predictions for the upcoming year.

Challenges Faced in 2023

We anticipated a tough year in 2023, with the continual interest rate hikes, low consumer confidence in builders, and minimal stock availability on our projects meant careful navigation of business decisions. The landscape, however, held some surprises and positive opportunities.

Sales Trends and Predictions

As interest rates eased in the latter part of 2023, we noted a shift in purchasing behaviour especially in the Victorian market with buyers downsizing their land preferences and begun seeking land not slated for title for at least 18 months. Nonetheless, the Queensland market held steady throughout the year, generating enquiries that enabled us to completely sell out the first two stages of our Bloom Hervey Bay project. This attracted buyers from the Sunshine Coast as well as those from Sydney and Melbourne who were seeking a lifestyle change.

Over the next five years, an influx of 1.5 million new immigrants will call Australia home, meaning the demand for new housing will be there. However, the supply side is flawed and needs to be fixed at a government level. To fulfil this growing demand, the government did indeed take a risk when it announced an ambitious plan to build 80,000 new homes a year for the next ten years. To make this happen, significant policy reforms must occur by 2024; otherwise, this will remain a pipe dream.

The prediction for 2024 is that it will continue to be a challenging market. However, optimism prevails that the market will stabilise as the year progresses, potentially with decreased or stabilised interest rates – once this happens we will see a boost in consumer confidence again.

Future Projects and Expansion

Looking ahead, we have ambitious plans for 2024, including the launch of McMahon’s Place in Echuca—a 1,000 lot development, marking our expansion across regional Victoria.

To support this and the overall growth of the business, 2023 welcomed three new staff members, with plans to recruit a senior property analyst in this year being finalised. We pride ourselves in having a great culture, long tenures and have created a business model that will stand the test of time.

Market Dynamics and Adaptation

We maintain a keen focus on the ever-changing market dynamics. The team remains vigilant in seeking new opportunities, primarily in key growth areas of Victoria —both in regional and metropolitan locations.

Whilst the core of our business lies in land development, the company emphasises adaptability, adjusting our product offerings to align with market demands and purchaser needs.

Anticipated Highlights of 2024

Our team eagerly anticipates the release of McMahon’s Place, our largest development to date. Additionally, we look forward to the stabilising of interest rates and a resurgence of positive market sentiment amongst buyers. Completing the final stages at our Accolade and Monument projects in Melbourne’s west adds to the excitement, underscoring a year of challenges met with resilience and optimism in Melbourne’s ever-evolving property landscape.