The most noticeable change I’ve seen as a real estate agent in this new market is the lack of competition or appetite for properties with a large land component. Previously anything on a 600m2, a corner block, or even if a house showed a hint of knock down rebuild potential it was so highly regarded they basically sold themselves. I can remember coming back to the office after signing up a seller basically pencilling in the commission for the auction date in 4 weeks. Now days, forget it. It means practically nothing.
What a change its been, this is almost solely based on the cost of construction. Pre 2022 you could build a 3 bed 2 bath unit for under $250,000 nowadays your looking at $350,000+ for something decent meaning profit margins are gone.
The flip side to this is we are now seeing so many previously land banked, developer purchased sites coming back on the market often for less than what they were purchased for.
So on a more wholesome note, Its good news for first home buyers and owner occupiers who get the opportunity to snap up the great Australian dream a house with a big back yard and a hills hoist as opposed to mainly unit and town house options only.