The moderation of interest rate increases towards the end of last year proved to be pivotal, fostering a more stable purchasing environment and encouraging buyers to re-enter the market with renewed enthusiasm. This has led to a significant increase in our listing volumes compared to the same period last year.

The demand for quality homes across Richmond remains robust. We have witnessed a notable surge in interest in properties in exclusive neighbourhoods such as Richmond Hill and around Barkly Gardens. Clearance rates for exceptional properties priced competitively remain strong, while others are often negotiated before or after auction with a leading buyer. It's also worth highlighting the growing attraction among younger demographics to residences that seamlessly integrate lifestyle amenities with the vibrant cultural tapestry of Richmond.

Elevated construction and renovation costs, along with extended project timelines due to ongoing labour shortages, have placed a distinct premium on well-renovated and more modern properties. This presents an opportunity for buyers to acquire established homes at more competitive prices than comparable new builds.

Since 2021, these escalating construction costs have caused some developers and homeowners to defer building projects. The high costs render most projects financially unviable, and owner-occupiers who choose to build or renovate understand the long-term commitment required to recoup expenses through capital appreciation.

A number of residential property providers have chosen to exit the market due to increased holding costs, rising expenses and stricter compliance laws. This has further diminished the rental pool, particularly in inner-city areas such as Richmond and Abbotsford, leading to an
imbalance between supply and demand and strong rental growth.