In Homeshelf’s first episode of Unpacking the Build, Director George Glover is joined by General Manager of Communities at RPM, Jonathan Driessen, where they delve into the intricacies of the current property market and the dynamics of building or buying new homes.
RPM Group is an end-to-end project marketing company with over three decades of experience, with communities across Victoria, New South Wales and Queensland. Drawing from his extensive six-year tenure at RPM, Driessen brings forth a wealth of knowledge and expertise, offering invaluable insights for prospective homebuyers.
In their conversation, Driessen and Glover discuss RPM's significant involvement in launching multiple estates and shaping the property market. They cover recent market trends, focusing on increased migration rates and the potential return to pre-pandemic immigration levels. Additionally, Driessen highlights various advantages of building new, along with an overview of how the industry has changed with the introduction of recent technologies.
2024 Property Market Outlook
In discussing the market outlook for 2024, Driessen acknowledges the challenges but also identifies promising signs. He notes the recent surge in migration rates, stating, "The market's been pretty subdued over the last few years, but what we are seeing is migration is coming through quite thick and fast."
Driessen anticipates a significant increase in immigration levels, potentially reaching pre-pandemic levels of 80-90,000 immigrants, indicating substantial pent-up demand.
Driessen highlights the degree of uncertainty surrounding government regulations, particularly the shift towards prioritising greenfield developments over inner urban areas. He acknowledges the challenges of affordability and supply in inner-city developments observing how "we're now seeing that flip” from inner-urban to greenfield. “We're seeing PSPs [Precinct Structure Plans] soften or slow down, or being put off the planning line," suggesting potential implications for the market dynamics.
Glover discusses the contrasting preferences between high-density urban living and spacious greenfield properties. He acknowledges the trade-off between connectivity and space, emphasising the importance of catering to diverse preferences in the market. “There's always going to be room for both of those categories to kind of grow," says Glover, highlighting the continued relevance of both urban and greenfield developments in meeting varying consumer demands.
Building New versus Buying Existing Properties
When comparing the benefits of building or buying new homes versus purchasing established properties, Driessen emphasises several key advantages. He highlights the financial aspect, stating, "fundamentally it's about money saving." Driessen underscores the savings on stamp duty associated with building new, explaining,
Additionally, he emphasises the freedom of choice and customisation afforded by new builds, noting, "You get to pick your own journey." Driessen points out the ability to select floor plans, tweak designs, and personalise fittings and fixtures according to individual preferences. “With an established house you're governed by what's there, and what the previous parties have done.” If you’re building new, “you get to pick your own floor plan, on your own block of land, in the location that you want."
Driessen contrasts the customisation and warranty benefits of new builds with the potential hidden costs and maintenance issues associated with older properties. Emphasising the importance of warranty coverage, Driessen states, "all that stuff is accompanied by your warranty, so you're not fixing the old people's problems", a risk you run when buying an existing property.
Choosing the Right Community
Driessen offers practical advice for individuals considering house and land options.
He emphasises the importance of aligning community features with personal requirements, understanding block sizes, and considering title timeframes before making a decision.
“It's important to know that if you're buying a titled block of land or an untitled block of land, what that does to your personal lifestyle. So before you go out and buy it, do you need to sell first? Do you need to rent for 12 months? Do you need to move back in with family if you're a first home buyer? “
The Impact of Technology
Glover and Dreissen discuss the transformative impact of technology on the property market in recent years. With advancements such as interactive masterplans, virtual tours, and online reservation systems, the home-buying process has been streamlined, and the customer experience enhanced.
Glover notes how today’s technology is all about “information on-demand”; making the journey faster, easier, and more interactive for buyers. Driessen agrees: "if you go back and think about when you used to walk into a land estate, there used to be models, you know, little homes that fit on the block of land". Whereas now, there are “interactive masterplans” displaying “what packages are available within that block of land [and]... the proximity of where that block is within local amenity”.
In Conclusion: Looking Towards Collaborations
As the conversation concludes, both George Glover and Jonathan Driessen express optimism about future collaborations between RPM and Homeshelf. They aim to provide greater exposure to communities and streamline the home-buying experience for customers.
Watch the full 10 minute episode here.
Publisher Website: www.homeshelf.com.au