
Rural Insight -
Wider residential market starting to recover
Independent forecasters are typically predicting house prices will rise over the next two years. Early signs of recovery are shown through stronger sales volumes, although prices remain flat. In the short term, price growth has been held back by the large supply of homes currently on the market for sale.
Buyers more selective but ready to act
High stock levels continue to give buyers plenty of choice, reducing urgency. However, serious buyers are quick to move on well-presented, well-located lifestyle properties. Homes with strong visual appeal, practical layouts, and good connectivity are attracting competitive interest.
Vendors shifting towards realistic pricing
More sellers are aligning expectations with current market realities, though some still benchmark against peak values. Transparent, evidence-based appraisals remain critical to setting prices that generate engagement and offers.
Interest rates the one to watch
Lower interest rates are boosting confidence in the market and are likely to be the most important driver of the market in the short-term. At a bigger picture level, risks around tariffs and global trade have added uncertainty to the market.
Connectivity and remote work broadening appeal
Upgrades to rural broadband and transport links, combined with ongoing flexible work patterns, are enabling more buyers to consider lifestyle living. However, there may be a softening of demand from remote workers as more companies implement office-return mandates. The scale of this impact is uncertain and will likely overlap with a cyclical upswing in the market, which could offset any reduction in remote work-driven demand.
Consenting being unlocked
Government is progressing changes to the planning regime that should ultimately make development easier. In the long run this should contribute to streamlined development for some lifestyle blocks on the edges of urban areas.