Elections, Economics, and Record-Breaking Real Estate: A Snapshot of Shifting Times

Hi, Andrew Bell here.

By now, everyone is aware of the changes in the real estate market, but we’re still waiting to see if they’re temporary or long-term. Interest rates are intended to slow the economy, including real estate, but the impact hasn’t been profound until recently. While higher rates tend to temper buyer demand, they’ve also triggered more forced sellers, increasing supply in the market. Listings have risen, giving buyers more options, and buyers have become more selective about properties and pricing. However, the fundamentals of the real estate market remain stable.

Our recent auction on September 5th is clear evidence of this. We marketed 24 properties, sold 7 prior to auction, and 13 under the hammer, achieving an 83% success rate. With 70 registered bidders, there was fierce competition, including a property in Labrador that had 88 bids and sold for $1,500,000—$400,000 over reserve. These results demonstrate the strength of the market, and while we’ve always excelled in auctions, you can’t achieve this without solid market conditions.

Yes, population growth has slowed due to immigration cutbacks, but these largely affect student visas, not the core real estate buyers. The demand from Australians and those migrating who are capable of purchasing remains strong. The real issue lies in the supply of new homes. The Federal Government aimed to build 1.2 million homes over five years, but the Master Builders Association now forecasts just over 1,035,000. This number declines each quarter, mainly due to a 90,000-worker shortage and ongoing productivity issues, including those caused by the CFMEU. Record numbers of builders are going into liquidation, leading to a lack of apprenticeships and long-term labor shortages. This means supply constraints will persist, keeping the same challenges for home buyers.

Two quick updates before I finish: First, Promax has been appointed as the builder for ARC Residence on Northcliffe Terrace, with construction already underway. Surfers Paradise is booming, now ranked among Australia’s top billion-dollar markets. ARC Residence, a boutique building of just 37 apartments, has limited availability, with half-floor residences starting at $3,995,000 and full floors at $9,220,000—offering incredible value for new apartments in the area.

Finally, I’d love to see you at the Ray White Surfers Paradise Muscular Dystrophy Ball on Saturday, October 19th. This will be the last year in its current format before a refresh in 2025, making this event extra special. It’s a wonderful opportunity to come together and support kids suffering from muscular dystrophy, so whether you’re booking a table or just a ticket, we hope you’ll join us.

I look forward to seeing you in a fortnight. Andrew.