Biggest trends

Buyers holding back

Off-plan sales remain slow as high listing volumes give buyers more choice and less urgency. To release capital for future projects, some developers are offering sharper discounts and stronger incentives on unsold inventory.

Wider residential market starting to recover

Independent forecasters are typically predicting house prices will rise over the next two years. Early signs of recovery are shown through stronger sales volumes, although prices remain flat. In the short term, price growth has been held back by the large supply of homes currently on the market for sale.

Interest rates the one to watch

Lower interest rates are boosting confidence in the market and are likely to be the most important driver of the market in the short-term. At a bigger picture level, risks around tariffs and global trade have added uncertainty to the market.

Outlook for the market

Striking the balance

While small apartments with single bathrooms typically achieve good margins on paper, across most markets saleability is typically strongest for 2 bedroom 2 bathroom configurations. In the next cycle developers are likely to focus on saleability to ensure they can promptly close out projects.

Top-tier getting an upgrade

High-end product is becoming increasingly luxurious, particularly 3-bedroom apartments, which offer significantly larger floor areas and premium pricing. Developers are pushing specifications to new heights, with standout features across internal finishes, building services, and shared amenities to appeal to luxury buyers.

New housing cycle on the horizon

Sentiment amongst developers suggests a new development cycle is approaching in response to the expected recovery of the residential market. This may see a pivot towards some larger scale projects in central areas, alongside the boutique projects that were common in the prior cycle.