- Experiencing differing levels of demand for varying price segments, ie $1m - $1.5m the best, $600K - $900K poor.
- Projects with long settlements tracking the best.
- Slow sales for projects with short construction timeframes, are midway through construction or are completed.
- Supply levels are fine and should continue to reduce as a lot of proposed developments do not get off the ground.
- Fundamental property drivers other than interest rates are very good and improving however negative sentiment from bad press is severely affecting this.
- Agent incentives and price rebates / negotiation items are increasing however we see this a short term trend as the major driver of this related to June 30 reporting. Most projects have achieved good sales over the past 24 months and as such are in strong positions. Extended negative reporting and sentiment could however increase these past this date.
- Development site market has softened with supply levels increasing dramatically in the last two months. However buyers are taken a “sit and watch” approach.
See report from 2008 Residential Market Summit (March 30 & April 1, 2008)