Market Update with OpenLot.com.au (May 2024)

6th May 2024

Finance & Budgeting Pre-Construction Design & Trends

This article provides a comprehensive market update based on insights from OpenLot.com.au, covering key trends in new home construction, buyer activity, and regulatory changes in 2024. It explores buyer confidence, incentives from developers, and new tools like OpenLot’s Buyer Demand Index and Open Display feature, helping home buyers make informed decisions.

Market Update with OpenLot.com.au (May 2024)

Introduction

The property market in Australia is constantly evolving, and staying informed is crucial for home buyers and investors alike. In this episode of the Home Building Hub Podcast, hosts Colin Bischof and Darren Brennan are joined by Ryan Smits from OpenLot.com.au to discuss the latest market trends in new home construction, buyer activity, and the impact of recent regulatory changes.

Understanding OpenLot.com.au

OpenLot is a specialised platform designed to help buyers find land, house and land packages, and townhouses across Australia. Unlike general real estate platforms, OpenLot focuses exclusively on new home developments, making it an essential tool for first home buyers, owner-occupiers, and investors.

Key Market Insights for Q1 2024

• Increase in buyer confidence – With interest rates stabilising, there has been a noticeable rise in inquiries and site traffic.
• State-by-state trends:

• • Victoria saw a 63% increase in inquiries from December to January.

  • New South Wales, Queensland, Western Australia, and South Australia also experienced strong growth.

• First home buyer and investor activity:

• • Investor numbers are rising, showing renewed confidence in the market.

  • First home buyer inquiries remain steady, though borrowing capacity remains a challenge for some.

• Regional trends:

• • Owner-occupiers are more dominant in the Southeast.

  • Investors and first home buyers are more active in the Western suburbs.

Timeframe to Purchase – What’s Changing?

• The process from research to purchase is shortening, with many buyers making decisions within 1-3 months, compared to longer decision times in previous years.
• This is partly driven by:

• • Stabilisation of interest rates.

  • New regulatory changes, including the introduction of the seven-star energy rating.

  • Various rebates and discounts offered by developers and builders.

Key Market Drivers for 2024

• Rebates and incentives:

• • Some developers are offering significant discounts on land (up to $40,000 in some cases).

  • Builders are providing joint promotions and deposit reductions.

  • Some developers are even offering rental assistance while buyers wait for their homes to be built.

• NCC Changes & Seven-Star Energy Rating:

• • New building regulations are impacting pricing.

  • Buyers are acting fast to secure properties before costs increase.

• Preferred contact times for buyers:

• • 47% of buyers prefer immediate call-backs.

  • The majority of inquiries occur in the afternoon and evening, suggesting that industry professionals should adjust their contact times.

New Features on OpenLot.com.au

• Buyer Demand Index – A data-driven tool that helps buyers and industry professionals track market trends, popular regions, and buyer preferences.
• Open Display – A new feature allowing buyers to virtually explore display homes through 3D Matterport technology before visiting in person.
• Builder Portal (Coming Soon) – A dedicated space for builders to list house and land packages, providing buyers with more comprehensive options.

Key Takeaways

• Buyer confidence is improving, with strong activity across multiple states.
• Incentives from builders and developers are making it an opportune time to buy.
• Understanding new regulations and market trends can help buyers make informed decisions.
• Platforms like OpenLot provide valuable insights and tools to streamline the home-buying process.

Glossary of Terms

• Owner-Occupier – A person who buys a home to live in rather than as an investment.
• Seven-Star Energy Rating – A new standard for energy efficiency in new home builds in Australia.
• House and Land Package – A deal where buyers purchase both the land and a home to be built on it.
• National Construction Code (NCC) – The regulatory framework governing building standards in Australia.

Frequently Asked Questions

1. Is now a good time to buy a new home?

2. • With stabilised interest rates and attractive rebates, 2024 presents strong buying opportunities.

3. What is the seven-star energy rating, and how does it affect pricing?

4. • It refers to energy efficiency standards that homes must meet, impacting materials, insulation, and overall construction costs.

5. How can OpenLot help me find a home?

6. • OpenLot provides a comprehensive database of new home listings, land availability, and virtual display home tours.

Listen to the Full Episode

For more insights, listen to the full episode here: Market Update with OpenLot.com.au (May 2024)

About the Home Building Hub Podcast

The Home Building Hub Podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process – completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at Home Building Hub and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.