A MESSAGE FROM DAVID

THE RESET IS UNDERWAY. THE LONG-TERM STORY REMAINS STRONG.

Australia’s residential property market is moving through a period of recalibration. After several years of exceptional growth, higher interest rates, taxation changes, tighter borrowing capacity and more cautious buyers have created a broad-based correction. Recent data indicates dwelling values are now around 3.6% below their March peak, with declines recorded across 93% of capital-city suburbs.

For developers, this environment calls for conservatism, discipline and careful decision-making. However, the reset should not be confused with a deterioration in the long-term fundamentals of Australian property.

Melbourne remains one of the most compelling long-term housing stories in Australia. The city is growing rapidly and is projected to become Australia’s largest city, with official projections placing Greater Melbourne home for over nine million people by 2050 — a population comparable to New York City’s city limits.

That growth has profound implications for housing. More people require more homes, while planning constraints, construction costs and limited development-ready land continue to restrict supply. Victoria is already experiencing a severe housing crisis driven by low supply, a diminished pipeline of residential development, restrictive planning, all reinforcing the scale of the underlying demand.

This is why the long-term trajectory for well-located Melbourne property remains positive. Price growth will not be linear, and the current market requires realistic pricing and disciplined development strategies. But over extended periods, population growth, scarcity and rising replacement costs create powerful structural support for residential values.

DealCorp understands these cycles. For 40 years, it has been a reputable and established name in Melbourne property, delivering projects through multiple market conditions. Over the first half of this decade, DealCorp has strategically broadened its development focus, pivoting into mixed-use, commercial and hospitality opportunities while continuing to selectively acquire and assess residential sites. Projects such as The StandardX Hotel in Melbourne and the Beaconsfield service station and retail precinct demonstrate this evolution, reflecting a willingness to look beyond traditional residential development and create diverse, income-generating and community-focused assets. At the same time, DealCorp has taken a more considered approach to residential land, carefully assessing each opportunity through the lens of planning, highest and best use, market demand and future value creation. 

The reset is over. The dust is settling. The next phase will favour experienced developers who focus on fundamentals, quality, affordability and genuine underlying demand. For DealCorp, that experience provides confidence not only in navigating today’s market, but in positioning for the significant growth Melbourne has ahead.

David Kobritz
Executive Chairman, DealCorp

THE PEAK

BEACONSFIELD BREAKS GROUND

Civil works and site clearing are commencing this quarter at The Peak, Beaconsfield. This project will see 112 x 2, 3-& 4-bedroom townhouses be delivered to an area and corridor of Melbourne which is in need of new, modern housing to meet a growing population and alarmingly low vacancy rate of 0.58%.

Beaconsfield offers a rare balance of connected convenience and a relaxed, nature-centric lifestyle.

Residents enjoy established local amenities, charming cafés and dining, award-winning restaurants, expansive parks and reserves, quality schools and easy access to Berwick and Officer.

SEPTEMBER 7-8th 2026

HIGHLIGHTS FROM THE 2026 AFR PROPERTY SUMMIT

ANZ global chief economist Richard Yetsenga says the country needs to take a step back and consider how far property prices have fallen in the context of how much they had risen in the past 30 years.

“Property prices in Australia have risen 6.5 per cent a year for the last 30 years. We’re down about half of one year’s gain … and up 1000 per cent the last 30 years.

McGrath Estate Agents chief executive John McGrath believes the property downturn has nearly reached its bottom and predicts things will turn around as soon as this year. “When the market takes off, it can sometimes pop quite quickly, and I suspect that’ll probably happen in the second half of this financial year, early 2027.”

Housing Minster Clare O’Neil says she does not want to downplay the seriousness of the housing downturn,  “On the other side, we have a genuine feasibility challenge facing our country.

The cost of land, construction, finance, infrastructure and regulation are all affecting whether a project stacks up. And I can absolutely see that one of the main challenges facing the people in this room is that projects that would have stacked up under the economics and cost structure seven or eight years ago are today not getting built, and we need to work together to fix that problem.”

“I think we just need one more thing … and that’s a change in government. I think if the government was changed and we had all these [negative gearing and capital gains] policies abolished and revert back to what we were with lower interest rates, the market would fly,” Damien Cooley, auctioneer at Cooley Auctions, told the summit.

THE STANDARDX

BRUNCH CLUB ON WEEKENDS 

DealCorp’s favourite hotel and brunch destination The StandardX has worked its way into iconic brunch status – particularly on the weekends. Be sure to check it out for yourself (if you can nab a table!).

– Breakfast 7-10
– Brunch 10-2
– Rooftop drinks at On Top from 2

They’re keeping it tight — a centre table stacked with pastries, muffins, fruit, cookies and fresh sandwiches. Things you see.. and immediately want.

Then the heavier hitters — salads, fritters, burgers, steak sandwich and pastrami.

JOIN THE BRUNCH CLUB

The StandardX, Melbourne
62 Rose St.
Fitzroy VIC 3065