A local professional has highlighted four key trends likely to impact Australia’s real estate industry.
Incoming McGrath Projects associate director Colin Griffin has unveiled four insights on developer activity set to come to the forefront off the back of COVID-19.
1. A shortage of supply in the general residential agency market
According to Mr Griffin, a lack of choice in this market may result in off-the-plan projects being a genuine option, “providing the criteria of being close to transport and within easy reach of shopping and schools is met – along with the need for developers to provide a quality end product, suiting buyers’ lifestyle needs and budgets”.
“Moving forward, the onus will be on the developer to stand by their product: it’s no longer about cost-cutting at the expense of the buyer’s expectations,” Mr Griffin said.
“Developer quality and track record will be big drivers for buyers to have confidence to switch from the general agency market to off-plan.”
2. Developers must drive their product to ensure customer satisfaction, not just satisfying revenue targets
Mr Griffin noted that the quality of build and delivery is paramount.
“Buyers deserve the right to expect that what is delivered meets their initial expectations, and strong, conscientious developers are more than willing to provide this,” he explained.
“Now, the power and immediacy of social media is a real-time indicator of how developers’ products and services are being perceived.”
3. Downsizers to play their role in the recovery
A renewed appetite for quality off-plan projects particularly from the local market is anticipated, according to Mr Griffin.
“Downsizers particularly, as there is always movement in this sector; however, now they have more expectations and demands to meet their requirements.
“This could possibly be through direct meetings with the developer, their architects and interior designers with personalised input to layouts and finishes,” he said.
4. Buyers have the power
In conclusion, Mr Griffin said the power is set to be well and truly in the hands of current and prospective buyers.
“Buyers have access to so much more information now, which can help them seek out an off-plan professional with proven experience in this field who understands and can communicate the entire process confidently in order to achieve the best end result for them,” he said.
“Communication throughout the entire process between the developer and the buyer via the agent and conveyancer is integral – not just at the time of initial purchase and when it’s time to settle.”