Is the Great Australian Dream Changing? Aussie Builders Weigh In

Some of Australia’s biggest property developers say the path to the Australian dream of homeownership has radically shifted – and the industry needs to keep up.

Speaking on a panel at the Property Council of Australia’s National Housing Solutions Summit in Melbourne on Tuesday, property developers Stockland, Frasers Property and Salta addressed how demographic changes are impacting the housing market.

Particularly, they addressed whether the great Australian dream of owning a home is still viable and the role new housing supply plays in ensuring Aussies can get onto the property ladder.

Stockland general manager of marketing and development Cherie McMahon said while the dream of owning a home is still real for many buyers, the journey to get there is evolving.

The panel featured Stockland’s Cherie McMahon, Frasers Property’s Emily Wood, Salta’s Emma Woodhouse and ANZ’s Adelaide Timbrell. Picture: Supplied

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“Holistically, the great Australian dream is alive and the demand that we have coming into our business tells us that, but the way in which customers want to deal with us and how they want to purchase homes is changing,” she said.

Ms McMahon said digitisation is one way developers are evolving with the customer journey and said eventually, the journey of building will largely be a digital experience for buyers.

She also noted that builders and developers need to make changes to respond to incoming buyers, especially around amenity.

“Years ago, people used to be okay with moving to the outer ring and waiting for infrastructure and amenity, but we’re certainly seeing customers now want the amenity there earlier,” Ms McMahon said.

“This notion of hyperlocal in a postcode world is what people want, but this collaboration between developer, government and builders to try and make sure what people have when they get there, is what is evolving.”

Frasers Property executive general manager of development Emily Wood agreed and said having a walkable neighbourhood is becoming more important for incoming buyers.

“COVID began with a catalyst to make people rediscover their own neighbourhoods and we’ve seen that play out now with people having more flexibility on where they live, because working from home is a choice around that,” Ms Wood said.

“For us, we think about everything through that lens of ‘how do we create, not just a home, but enable and make sure people have access to education, workplace, retail, green open spaces that’s going to help their wellbeing long-term.’”

The build-to-rent (BTR) model, which continues to boom across the country, sees amenities as an important piece of the puzzle.

“It’s about connections and being purposeful with the amenity spaces and thinking about how people are going to use them,” Salta chief operating officer Emma Woodhouse said during the panel.

Salta released its first BTR development Fitzroy & Co. under its Est portfolio in October 2024 and has two more projects in the pipeline.

Ms Woodhouse said that BTR can be a positive housing alternative.

“We don’t want renting to be a second-class option for people while they’re waiting to be able to afford a home,” she said.

“People want to have a good lifestyle. They want to travel. They want to eat at good restaurants and renting can be a long-term option.”

What builders are seeing across the country

With national home prices rising again in March by 0.27%, according to the latest PropTrack Home Price Index, affordability continues to be a barrier for many buyers dreaming of owning their home.

Builders and developers need to respond to incoming buyers around amenity, according to the panel. Picture: Getty

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At the panel, the developers shared where trends are heading for buyers considering buying or building new. They shared which areas of the country are seeing interest from buyers across their portfolios and which areas are presenting challenges in attracting buyers.

Ms McMahon noted that there are certain states where building is a more attractive prospect. For example in Queensland, the company sees a high level of interest from first-home buyers.

“There’s obviously a first-home buyer grant in place there. We’re at about 65% first-home buyers,” she noted.

“New South Wales has supply challenges, so we always see consistent performances there.”

And in the west, business is still going strong thanks the turbocharged market experienced across Perth and some smaller cities over the past few years. But Ms McMahon expects that could slow in the future.

“Western Australia as well is going incredibly well. I think it will start to moderate pretty soon,” she said.

From Frasers’ perspective, despite a dampened market in Victoria and particularly its capital of Melbourne, there are opportunities for counter-cyclical investing in the new homes space.

“What we have started to see with Frasers is that investors are starting to return to market and see that value proposition in the Melbourne market,” Ms Wood said.

“Hopefully, investors are the first and the others will follow.”

Are you interested in buying and building new? Check out our New Homes section.