Every year, the Australian off the plan property market shifts gears. Investorist felt that taking a health check or ‘sentiment pulse’ of the Australian market was overdue, and has just published The Australian Off The Plan Sentiment Report, the first and only comprehensive report focused on the industry. Investorist surveyed 201 members representing a cross section of company sizes and locations, who collectively sold approximately 20,000 properties in FY18.
The report data covers all types of property including high density, townhouses and house and land, from both sellers’ and buyers’ perspectives. It provides an analysis of demand and current sales activity levels and future predictions of the dynamic Australian off the plan market.
- Across the major cities, 87% of Sellers did not believe the off the plan market was over-saturated
- Some 69% of Channel Partners expect to increase their total sales in FY19, and also to be selling larger projects
- The ‘Big Three for OTP’, Sydney, Melbourne and Brisbane represented 90% of sales in FY18
- With Chinese investors down 26%, sellers still expect China to represent 60% of their foreign sales in FY19
- Sellers expect buyers from India, Vietnam and Indonesia to increase significantly in FY19
- The ‘sweet spot’ for house and land and apartments is $400k-$600k (remarkably consistent in all markets)
- The significant impact of loan availability (68% said this has affected local buyers purchasing decisions)
- Whilst price increases were not expected to be significant, commission rates will definitely rise in the industry
Early media coverage of The Australian Off The Plan Sentiment Report has appeared in The Australian, The Australian Financial Review and Smart Property Investment.
Quotes from CEO Jon Ellis published in The Australian:
“Developer and agents have had to adjust to the ‘new normal’ of less sales, which are harder to find and take longer to close”
“There has been a further and noticeable ‘flight to quality’ in apartment offerings, regardless of scale”
Investorist’s Australian Off The Plan Sentiment Report launch events have finished with a bang this week, with a booked-out event in Sydney on Wednesday evening, following events in Melbourne and Brisbane last week. Around 500 Investorist clients, industry professionals and media executives joined Investorist at the launch events, which were sponsored by Domain. All were keen to be the first to get their hands on this information-packed and topical new report.
To download your free copy of this valuable report for yourself, click here.