The Money Puzzle Why house prices will keep going higher... even without further rate cuts
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Nov 4, 2025 This week, Max Shifman, CEO of Intrapac Property Group, dives into the housing market dynamics redefining property prices. He emphasizes that the core issue isn't interest rates but a significant supply shortage. Max explains why the ambitious national housing targets are unlikely to be met and discusses the challenges of apartment construction costs. The conversation highlights the future of investment in one-bedroom units, the impact of transport infrastructure on market prices, and how ongoing tight rental markets will persist amid population growth.
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Costs Stay High Despite Lower Inflation
- Construction costs jumped post-COVID and have not fallen even as inflation eased.
- Shifman emphasizes that lower inflation rates don't mean actual costs are declining for developers.
Southbank's Oversupply Example
- Melbourne's Southbank is cited as a hotspot with many unsold investor-style apartments.
- Shifman reports about 8,000 unsold apartments across Melbourne, with a large cluster in Southbank.
Prefer Two-Bedroom Investments
- Favor two-bedroom apartments over one-bed for investment resilience and a larger tenant pool.
- Shifman advises one-beds still have demand but two-beds offer more flexibility and longevity.