Why new developments could be the worst deal in property right now

Most investors are obsessing over interest rates, but the real force quietly reshaping property values is replacement cost. As building costs surge and new supply dries up, the gap between new and existing property is widening fast. On The Smart Property Investment Show, host Liam Garman sits down with Josh Crealy, founder and director of LEVR Group, to break down why the next 12 months could reshape supply, pricing, and investor strategy across Australia. Crealy explains how rising construction costs, labour pressures, and interest rates are making new developments increasingly unviable, forcing many projects to stall before they even reach the market. He argues the shift is creating a growing opportunity in established stock, where properties are now trading well below the cost of building new ones, especially in key inner-city markets like Melbourne. The episode also explores why unit stock is becoming a standout asset class, with strong rental demand, tightening vacancies and yields that are increasingly competitive with commercial property. Crealy's own journey from agent to developer to buyer's agent highlights a clear strategy shift, focusing on simplicity, affordability, and long-term fundamentals over complex development plays. If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, X (formerly Twitter) and LinkedIn. If you would like to get in touch with our team, email [email protected] for more insights, or hear your voice on the show by recording a question below.