PRIMED FOR 2024: Residential property market outlook with Prime Edition Director, Alistair Taylor
Residential property market outlook with Prime Edition Director, Alistair Taylor
With rising construction costs, a housing supply shortage, and an increasing demand for sustainable development, 2023 saw a dramatic change to the varying conditions of Melbourne’s residential property market.
As we look towards the year ahead, we asked Prime Edition Director, Alistair Taylor, to share his insights into the state of the 2024 residential property industry.
Rising costs will continue to pose challenges
Industry-wide labour shortages and the escalating price of materials resulted in an increase in construction costs in 2023 and is something that Alistair predicts will continue into the year ahead. Projects are also becoming less cost-effective to deliver following the newly introduced National Construction Code, which imposes stricter planning and construction restrictions on new builds.
“We are focused on optimising feasibilities and exploring efficient construction methods to overcome these economic challenges, whilst upholding our commitment to building expertly crafted luxury homes,” said Alistair.
Increased incorporation of construction
As the industry continues to face uncertain conditions, Australian developers are increasingly moving towards integrating an in-house construction arm or exclusive construction partner to streamline the building process.
“Relationships, such as the partnership between Prime Edition and Henny, closely align the interests and goals of each company, resulting in better coordination and often lower costs for purchasers,” said Alistair.
Sustainability becomes standard
In 2023, Melbourne saw a significant shift towards all-electric infrastructure, moving away from gas to incorporate more sustainability initiatives into new residential projects. An increase in technology use has also resulted in maximised energy efficiency throughout developments.
As sustainability becomes more important to homeowners and buyers looking to invest in residential property, this is a tool that will continue to be leveraged by the industry.
“The drive towards sustainability will continue into 2024 and beyond, with conscious building practices and the incorporation of eco-friendly materials being considered in almost all residential developments,” said Alistair.
Changing Buying Conditions
Fluctuating interest rates and an ever-changing economic landscape will have a profound impact on buying conditions in Melbourne in 2024.
“Soaring construction costs and strict loan requirements may disadvantage first-home buyers looking to break into the housing market, while those looking to purchase a sustainable, energy-efficient home will benefit from the industry’s shift towards all-electric infrastructure,” concluded Alistair.
Prime Edition has a robust pipeline for 2024, with the completion of Arbour Park in Surrey Hills and the delivery of three premium projects over the next two years; Como, Toorak, Avoca, South Yarra, and Tintern, Toorak.
