Spotlight on New Developments with Kay & Burton Projects Director Damon Krongold

A time for owner-occupiers and downsizers 

The new development market is dominated by owner-occupiers and downsizers, and is driven by lifestyle rather than investment decisions. These important decision-makers are taking their time to thoughtfully consider their options. In contrast to the investor-led market of the past six years, in which purchasing decisions were made with lightning fast speed (anywhere from a few days to a maximum of 6 weeks), lifestyle buyers are weighing up their options over 2 to 4 months before actually committing to a purchase. Consequently, new projects are on the market for longer, which affords lifestyle buyers in the market for high-quality apartments the luxury of choice. 

What’s selling? 

Inner-suburban, single-level, low-maintenance dwellings are the most popular, as is the freedom offered by off-the-plan options that allow purchasers to configure a home to suit their requirements and tastes. In fact, this preference is more popular now than at any time in my 28 years’ experience in real estate. Increasingly, the history and reputation of the developer and builder is one of the most influential factors in purchase decisions. Again, this is not something we’ve seen before to this degree, which is a sign that the market is maturing. 

The slowing market

We’ve seen a definite slowdown in the market as it recalibrates. One of the biggest contributors to this is the profusion of ‘second home’ buyers interested in new development stock. These buyers don’t qualify for the off-the-plan stamp duty savings available to first home buyers, which increases the property's overall cost. Likewise, foreign investment in new developments has also fallen dramatically since recently implemented state government policies raised stamp duty and taxes for overseas buyers, as intended. 

Lifestyle & Design

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