Property Development in Australia: 2021 Trends
Recent trends in the property market can offer great insight to the future of the Australian property landscape. Not only this, but these trends can provide direction on the best practice of how to approach and manage development. Keep reading on to find out more about the key trends for property development in Australia in 2021…
Growth in Quantity of First Home Buyers:
In spite of the high rates on Australian properties over the past 5 years, price growth is stabilising. This is due to a combination of factors, including strict borrowing requirements. This means there is room for first-home buyers to enter the market.
With an increased amount of cautious home buyers inclined to invest in property development in Australia, there is estimated to be a significant incline of sales, due to the favourable selling climate.
A Decline in Property Investment:
In some Australian regions, there are signs of slower growth, which may deter property investors. However, some investors may take this opportunity to invest whilst there is little competition in the market. This approach is risky, but may pay off in the long run.
However, certain locations including Sydney, Hobart and Melbourne are against the declining trend, and instead looking highly profitable in the property investment market.
Surge of Renovations:
Homeowners will likely choose to renovate over upgrading due to increased stamp duty on Australian property transfers.
Homeowners are also utilising their additional property equity towards renovation costs. This is an economical approach for those who lack the budget for high transfer fees.
Software for Agents Involved in Property Development in Australia:
With increased buyer confidence in the market, there exists an opportunity for real estate agents to utilise digital tools. The agent’s role encompasses consistent communication, address questions and concerns and provide subtle advice. Due to high quantity of clients, personalised communication is unrealistic. ‘Customer relationship software’ is a new digital solution which aims to address this challenge for agents.
Another interesting aspect to explore is risk aversion for agents. Digital risk management tools have the ability to provide agents with risk analysis reports. This gives them the opportunity to fully form an opinion in order to make the most constructive decision. This is ideal for themselves, the business and the client.
Given the competitive nature of the real estate industry, and high expectations of buyers/sellers, it is important to ensure excellent service delivery.
As a whole, it is evident that property development in Australia has reached a point where it has opened up the market. For Agents, first home buyers, and property investors, 2021 is shaping up to be a good time to engage in property development.
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