Property market update
Verse Financial Adviser Ellie Fordham sat down with David McMillan, Managing Director of Performance Property, to discuss the latest trends in the Australian property market and what lies ahead.
In this conversation, David shares insights into key factors shaping the market, including:
1. Rising rents & undersupply – Rental growth has remained in double digits for consecutive years, with continued increases expected due to a lack of new housing supply.
2. Capital city & regional market trends – Markets like Brisbane, Adelaide, and Perth have seen both price and rental growth, while Ballarat and Bendigo have been impacted by higher property taxes, leading to stagnation.
3. Victorian market challenges – Melbourne is still experiencing high stock levels and longer selling times, creating a buyer’s market. However, lower-end properties remain strong due to affordability pressures.
4. Buying opportunities in Melbourne – While the broader Victorian market faces challenges, David sees a window for buyers, especially first-home buyers or long-term investors, with prices in some areas comparable to 2018.
5. Investment strategies & units vs. houses – Performance Property’s investment strategy focuses on long-term asset retention or medium-term trading for profit. High-density apartments remain poor investments, while well-located low-density units in blue-chip suburbs may offer strong future returns.
David emphasizes the importance of in-depth due diligence when assessing investment opportunities, particularly with B and C-grade stock, where hidden risks may impact long-term value.
