Amid reports of a property market crash in Australia, buyer's agent Minhal Lakhani told SBS that the market is not experiencing a crash, but rather a natural correction. He said the decline is more noticeable in higher-priced areas, while more affordable suburbs remain relatively stable.
Minhal Lakhani said the use of the word “crash” is misleading, as the market is instead experiencing a normal correction driven by higher interest rates and property price growth of between 80 and 100 per cent in some areas over the past five to six years.
According to Lakhani, a clear correction is occurring in more expensive suburbs, where properties are typically valued between A$1.5 million and A$2 million, while sales activity in more affordable areas remains relatively stable.
He described the current conditions as a good opportunity for first-home buyers, saying higher interest rates can lead to modest price falls and greater room for negotiation. However, he stressed that property should be viewed as a long-term investment over five to seven years, because markets generally recover despite short-term declines, as seen after the COVID-19 pandemic.
Commenting on newly developed areas, Lakhani said a larger share of the price of a new home reflects construction costs, while in older, established suburbs, land value makes up a greater proportion of the purchase price. He said buyers should consider factors such as their family’s needs, access to schools and transport options before making any decision.
