What Today’s Property Buyers Need to Know: My Spring Market Update 

I recently had the opportunity to present an Australian property market update to a room full of accountants.

It was a valuable conversation because accountants see the financial position behind a property purchase: cashflow, taxation, ownership structures, borrowing commitments and the effect of a decision on a client’s longer-term plans.

As a buyer’s agent and property advisor, I assess the property itself: the market, location, value, rental demand, growth potential, risks and acquisition strategy.

Bringing these perspectives together allowed us to explore three important questions:

• How are recent tax reforms and market changes influencing property buyers?
• Which opportunities are investors examining more closely?
• What risks should buyers consider before purchasing brand-new, off-the-plan or commercial property?

Tax reforms and market changes are reshaping buyers' behaviour

Recent reforms, economic uncertainty, affordability pressures and changing borrowing conditions have influenced the way Australians approach property.

Some buyers are delaying decisions or becoming more conservative. Others are adjusting their budgets, widening their preferred locations or considering property types they may not have investigated previously.

Investors are also looking more closely at the relationship between taxation, cash flow, capital growth and ownership structures. However, tax should never be considered in isolation.

A potential tax benefit does not automatically make a property a good investment.

The property must still have strong fundamentals, sustainable demand, an appropriate level of risk and a purchase price that can be justified by the market.

Good entry-level properties are still attracting interest

Although buyes'r behaviour has changed, one part of the market remains highly competitive: good-quality properties at entry-level price points. Entry-level hits differently depending on the market you are focusing on.

The reality is that first-home buyers, rentvestors and investors often compete for the same limited stock. These buyers may have different objectives, but they are frequently searching within similar budgets and prioritising similar features:

• An accessible purchase price
• A location with established demand
• Functional and broadly appealing accommodation
• Limited immediate renovation and maintenance
• Good transport, employment and lifestyle connections
• Future resale and rental appeal

As affordability becomes more constrained, demand is concentrated around properties that offer a realistic entry point into a desirable market.

This means that even when media commentary describes conditions as a “buyer’s market,” the best entry-level properties can still attract multiple interested parties and sell quickly.

Buyers should not assume that general market uncertainty will automatically create a bargain. A compromised or overpriced property may sit on the market, while a well-located and accurately priced property can still generate strong competition.

There is no single Australian property market. Conditions can differ between states, cities, suburbs, price brackets and individual properties.

Where are property investors looking for opportunities now?

With competition continuing for good entry-level residential properties, the remaining investors are investigating a wider range of options.

Some are considering brand-new properties for lower initial maintenance and potential depreciation benefits. Others are looking at off-the-plan purchases or exploring commercial property in search of stronger rental yields and longer leases. Those two asset types are still negative gearing eligible, leading to unprecedented spotlight and increased interest.

These options can appear attractive, particularly when promoted using tax benefits, rental guarantees, projected growth or high advertised yields.

However, each has a different risk profile.

Before choosing an investment type, buyers need to look beyond the marketing and understand how the property would perform in the long run.

What are the general risk considerations before buying a brand-new property?

Brand-new properties can offer modern layouts, contemporary finishes and limited immediate maintenance. Eligible investors may also benefit from depreciation deductions.

However, “new” does not necessarily mean “low-risk” or “good value.”

Before buying a newly constructed apartment, townhouse or house, investors should investigate:

• The developer’s and builder’s track records
• Construction quality and potential building defects
• Whether the property carries a new-build premium
• The underlying land component
• The number of similar properties in the development
• Competing rental supply
• Local vacancy rates and genuine tenant demand
• Strata levies and future capital works
• Long-term owner-occupier and resale appeal
• Whether incentives have been incorporated into the price
• Clauses in the contract of sale

A brand-new property may look impressive, but appearance alone does not determine investment performance.

If many nearly identical properties are available in the same development, the owner may face greater competition when leasing or reselling. Investors must consider what will make their property desirable once it is no longer new.

What are the risks of buying off the plan?

Buying off the plan introduces an additional layer of uncertainty because the purchaser commits to a property before it has been completed—and sometimes before construction has commenced.

The market, lending environment and buyer’s personal circumstances may all change between signing the contract and settlement.

Important risks include:

• Construction delays
• Developer or builder insolvency
• Sunset clauses and complex contract conditions
• Permitted changes to layouts, dimensions and finishes
• A bank valuation below the contract price
• Changes to borrowing capacity before settlement
• Oversupply within the development or local market
• Difficulty reselling before completion
• Building defects
• Unrealistic rental or capital-growth projections

A buyer may have finance available when signing the contract but still need to qualify for a loan at settlement. If the completed property is valued below the purchase price, the buyer may also need to contribute additional funds.

Off-the-plan property may suit some strategies, but buyers need independent legal advice, thorough research and sufficient financial buffers.

What are the risks of commercial property investment?

Commercial property is receiving greater attention from investors looking for higher rental yields, longer leases and contractual rent increases.

But commercial property is not simply residential property with a better return. It requires a different approach to finance, leasing, due diligence and risk.

Before buying commercial property, investors should examine:

• The tenant’s financial strength and business stability
• The remaining lease term
• Renewal options and rent-review provisions
• Guarantees and other lease security
• Who is responsible for paying property outgoings
• Local vacancy rates and leasing demand
• Potential vacancy periods between tenants
• Zoning and layout limitations
• Rent-free periods and other leasing incentives
• Fit-out contributions
• Property-management and reletting fees
• Legal and lease-preparation costs
• Building compliance and maintenance obligations
• The property’s suitability for alternative tenants
• Finance, GST, tax and ownership-structure implications
• What type of tenant you are buying with the budget you have

The advertised yield is only the starting point.

A commercial property may generate attractive income while occupied, but an extended vacancy can significantly affect the result. The landlord may also need to fund incentives, fit-out works, outgoings and leasing costs before securing another tenant.

Investors must assess the property, tenant and lease—not just the headline return.

Property strategy must start with the client

The range of available opportunities does not mean every buyer should pursue the same type of property.

I do not start with a preferred suburb, property product or investment formula and try to make the client fit it. I start with the client.

Before developing a strategy or recommending a location, I consider:

• What the client wants to achieve
• Their lifestyle and family priorities
• Their financial position and borrowing capacity
• Their preferred timeframe
• Their tolerance for risk
• Their need for income, capital growth or flexibility
• How involved they want to be in managing the property
• How the purchase fits into their longer-term plans

Two clients with the same budget may receive completely different recommendations because their goals, lifestyles and circumstances are not the same.

For an owner-occupier, the right property must support everyday life. Schools, commute, community, space, future family needs and resale appeal may all matter.

For an investor, the priority might be capital growth, cash flow, diversification or building the capacity to purchase again.

For a rentvestor, buying in another market may provide a more affordable way to build wealth while allowing them to continue enjoying their preferred lifestyle.

My role as a buyer’s agent is not simply to find a property. It is to determine what the client should buy, where they should buy and why that particular strategy makes sense for them.

A boutique buyer’s agency built through word of mouth

For a boutique buyer’s agent whose business has grown primarily through referrals, presenting to a room full of trusted financial professionals was particularly meaningful.

I am not trying to be the loudest buyer’s agent online.

I do not spend heavily on digital advertising, meta ads to chase visibility for its own sake or build my business around a high volume of transactions. Instead, I have built IMMelody Buyers’ Agent one client, one carefully considered property and one personal recommendation at a time.

Most people discover me through a former client, accountant, mortgage broker, property professional or someone in their community. They may not have seen my name repeatedly in sponsored advertisements, but they have often heard it from someone they trust.

I have also intentionally kept my agency small. This allows me to remain personally involved from the initial strategy and education through to property research, due diligence, negotiation and purchase.

My clients are not passed between departments or directed towards a predetermined property product. They work directly with me, and every recommendation is shaped around their goals, circumstances and lifestyle.

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IMMelody is based in Maroubra, in Sydney’s Eastern Suburbs. I assist owner-occupiers and first-home buyers purchasing in Maroubra, Randwick, Bronte, Clovelly, Coogee, South Coogee, Kingsford, Kensington, Matraville, Hillsdale, Pagewood, Botany, Mascot, Waterloo, Rosebery and surrounding areas.

I also help investors, rentvestors and SMSF buyers develop and execute tailored property acquisition strategies across Australia.

As a bilingual French-English buyer’s agent, I have a particular understanding of the challenges faced by French buyers and expatriates navigating the Australian property market. But my strategic, personalised approach is valuable to any buyer who wants clarity, independent advice and someone genuinely in their corner.

I may not be the buyer’s agent whose advertisements follow you around the internet.

But if you ask the right people who provides strategic, tailored and genuinely personal property advice, IMMelody might come as the best recommendation.

I want to be the recommendation people are pleased to discover—and become the obvious choice once they understand what I offer.

Your goals. Your lifestyle. Your property strategy.

Decide with strategy. Buy with confidence.

This article provides general information only and does not constitute financial, taxation, legal or credit advice. Buyers should obtain advice from suitably qualified professionals based on their individual circumstances.