Growth and record-breaking sales in Douglas real estate landscape
BUSINESS FEATURE
Good news for those invested in the real estate market as evidence of a slowing market in our region is still proving hard to come by. In fact, it is showing signs of growth in some sections of the market.
Open homes continue to astound us with strong numbers, some resulting in multiple offers. There is positive interest in all properties priced correctly and showing either a strong income return or lifestyle opportunity.
Our team at Ray White has achieved sales this month that have proudly broken price records. Moreover, our recent weekend auctions were a resounding success, with all four properties selling and an impressive three of them surpassing their reserve prices plus all proudly exchanging ownership with local families.
Buyers vs Sellers
The one thing that doesn't change in real estate is that buyers want the prices to fall and sellers want growth.
The dynamic forces of supply and demand wield a mighty influence on property prices.
In the Douglas Shire, however, the absence of significant developments or a substantial influx of residential homes and apartments has been palpable, particularly within the affordable price bracket of $250,000 to $800,000.
Amidst our thorough industry research and extensive engagement with local builders and building companies, a stark revelation emerged.
Since 2021, there has been a large decline in buyer sentiment towards constructing new homes. This trend has been propelled by the increase in building costs, limited availability of builders, and lengthy construction timeframes.
Further investigation
Given I am currently marketing a number of vacant allotments of land, including The Beachfront Residences Estate on Four Mile Beach, along with a vacant allotment of land in the popular Newport Estate in Craiglie and another allotment in Andrews Close Port Douglas, I thought it highly relevant to investigate this further.
The findings reveal a significant easing of building pressure, as costs stabilise. Construction time frames have returned to some normality, while builders, now readily available, eagerly seek to secure building contracts with prospective clients.
As agents in the community we need to educate the buyers in our local market that building new again is worth investigating and that you can still get some really great value in building, versus current prices for existing homes, if you are prepared to go through the building process for a more custom and personalised property.
Local builder’s perspective
Local builder Nathan Verri believes that Port Douglas and surrounding areas are typically a sound solid market.
“Whilst the quality of both home and lifestyle seamlessly mesh, I feel our region has and will continue to offer what many are seeking in this new post pandemic world,” he said. Mr Verri also added that construction sectors have been significantly frantic over the past few years.
“I do however see a plateau in demand with rational and maintainable flow to solidify with the ongoing consistency of quality bespoke projects and product to be a stable environment moving forward.
“As home builders we have always tried to set the benchmark for design and deliverance through our multi award winning homes and developments.
“I can only hope that this benchmark assists to maintain and lift the economic climate in our region across the board and not only the real estate market. It is important that all industries benefit from the achievements of the others in the region.
“The flow on effect of success can be like a river to an ocean if managed and supported well throughout the community as a whole.”
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