Melbourne Residential Outlook Report 2024

12 Developers expressed a willingness to pay an additional 2 to 4% more in interest if it meant reducing the pre-sale requirement, in order to shorten the development period and boost profitability. Given the low buyer confidence in purchasing off the plan pre-construction stage (due to the number of abandoned or prolonged pre-sale stage projects and recent spate of insolvencies) this strategy is expected to be popular among developers over the next 24 months. This trend is further supported by market conditions, particularly undersupply and stabilised interest rates. Alternative funding Q Q Would you consider alternative funding sources if it meant a lower pre sale requirement? And if so, what interest rate above your standard rate would be acceptable to you? How do you perceive the liquidity of project financiers in the next 12 months? 14.29% 14.29% 33.33% 16.67% 21.43% Not interested 0%-2% 2%-4% 6%-8% 4%-6% Not enough liquidity available 28.57% Balanced 64.29% Over supply of liquidity 7.14% 29% 64% 7% Perceive