2024 property market outlook with Resimax Group’s Founding Director and CEO, Ozzie Kheir

2023 proved to be a tumultuous year for Melbourne’s housing market, with consecutive interest rate rises, record-low consumer confidence levels, and a cost-of-living crisis posing challenging conditions for the property industry. Bringing more than a decade of property and business experience, Founding Director and CEO of Resimax Group, Ozzie Kheir,  provides his forecast on the future trends shaping Melbourne’s 2024 property market.

Economic factors will slowly shift

Following a year of consistent interest rate rises, property developers are now facing challenges surrounding funding liquidity and market confidence. Additionally, increased construction costs affecting new builds are further exacerbating the precarious market conditions.

However, Ozzie predicts that change is on the horizon, foreseeing a turnaround in the impending economic landscape.

“Obviously interest rates will be a driving factor, but I believe before that will be the lack of housing supply that will create the rebound in mid-2024 with interest rate reduction occurring towards the end of the year,” he said.

Increased focus on build-to-rent

The lingering effects of Melbourne’s rental crisis will continue to impact the property market well into 2024. As the demand for rentals far outweighs the number of properties available, the pressure to find an effective solution for renters will continue to increase.

Ozzie has identified the build-to-rent sector as a key opportunity for the industry this year, following Resimax Group’s recent announcement of plans to retain 500 lots of designated rental stock across its developments by the end of 2025.

As the first of its kind in the Australian detached housing market, Resimax Group’s expansion into the build-to-rent sector signals an industry-wide focus on increasing Melbourne’s rental housing supply in 2024.

Market confidence will return

As conditions shift to favour both developers and consumers, Ozzie predicts that confidence will return to the market in the second half of the year, resulting in further opportunities for Resimax Group to expand its extensive portfolio.

“The biggest opportunity in 2024 is going to be for those who have done the hard yards for the last 24 months. I believe there will be a slingshot effect and those who have been patiently waiting will reap the rewards. We are one of those groups that has been patiently waiting to capitalise,” he said.

Explore Resimax Group’s pipeline of projects for 2024.