Buyers optimistic but shortages persist
MARKET ANALYSIS
Rose & Jones Director and Buyer’s Agent Oliver Dunstan provides an insight into the current market and the sentiment among buyers and sellers.
What has been the general market sentiment heading into 2025?
A large portion of the market, both buyers and prospective vendors, chose to hold off on major decisions during the back end of 2024. They opted to monitor market conditions closely, particularly in the first quarter of 2025, before taking any action.
What are buyers expecting in terms of market conditions this year?
Most buyers are optimistic, expecting more stock to become available. Additionally, they anticipate more potential interest rate drops, which could increase their spending power and instil more confidence regarding their financial situation moving forward.
How has vendor sentiment been influenced by market conditions?
Many prospective vendors have been hesitant to sell or list their properties due to uncertainty about where they would go after the sale. Like buyers, they want to see how the market and stock levels unfold in 2025 before committing to a sale.
Has the expected increase in market stock materialised?
Since the start of the year, we have only seen a slight uptick in overall stock levels, which aligns with typical summer market figures for the Gold Coast and Northern NSW.
How is the supply and demand affecting the market?
There remains an imbalance between supply and demand across most price points. However, the average days on market for sellers and the time buyers are spending in the market remain elevated compared to recent years. This is due to a lack of quality stock and buyers’ unwillingness to overpay. Vendors with unrealistic price expectations may struggle to achieve a result unless they adjust their pricing to meet the market.
Which market segments are expected to see the most change in 2025?
Strong assets will continue to draw competition and secure good prices in 2025. Specifically, we expect the $1.5 million to $3.5 million price point to experience the most change, as this segment was most adversely affected by the rapid rise in interest rates in recent years. We also expect properties priced under $1 million to experience significant growth, driven by affordability factors nationwide and an increase in investor demand. Offshore and interstate buyers are recognising the value in the Gold Coast and Northern NSW markets, particularly due to the attractive lifestyle offerings in these regions, which bode well for future growth prospects, as well as strong rental yields.
“Strong assets will continue to draw competition and secure good prices in 2025. Specifically, we expect the $1.5 million to $3.5 million price point to experience the most change, as this segment was most adversely affected by the rapid rise in interest rates in recent years.”
How do Rose & Jones buyers stand out in a competitive market?
Buyers who can offer flexible settlement terms will likely attract the interest of owner-occupier vendors who need extra time to find and secure their next property. Additionally, with the support of our dedicated property management team, our clients can offer a leaseback option to prospective vendors, assisting them in seamlessly transitioning to their next venture.
To get in touch with Oliver, email oliver@roseandjones.com.au
