Resimax founder Aziz “Ozzie” Kheir has secured one of the largest residential property deals in Victoria’s recent history by bringing Mitsubishi Estate Asia (MEA) on as a 50 percent partner in the $2 billion Eynesbury estate development, located approximately 44 kilometers west of Melbourne’s central business district. The project includes more than 700 residential lots ready for development, a further 4,000 lots planned for the future, and a commercial and retail hub. Final approval for the partnership was recently granted by the competition regulator.

Despite this significant milestone, Mr. Kheir expressed concerns about the broader economic climate in Victoria, citing a protracted downturn characterized by high taxes, subdued business confidence, and restrained developer activity. He described the current period as a “doom and gloom” environment, one in which developers are being compelled to build in anticipation of future improvements rather than present market conditions.

Market demand has softened, influenced in part by the federal budget announced in May, which Mr. Kheir said diminished buyer interest across the board. Investors are reportedly exiting the market, and rising interest rates have constrained first-home buyers. However, he noted that demand remains relatively robust at the more affordable end of the spectrum, with homes priced below approximately $650,000 to $700,000 maintaining steady interest due to continued need for housing. Conversely, the luxury housing segment is experiencing greater pressure.

A key issue highlighted by Mr. Kheir is the policy focus on approving apartment developments, which he suggests neglects a sizeable demographic seeking alternative housing options. Apartment projects themselves face challenges in achieving financial viability, leading to a noticeable decline in construction activity. “You’d be barely lucky to see a crane in the sky any more,” he remarked, cautioning that this shortfall in supply may have more pronounced effects in the coming years.

Developers contend with a difficult cost environment, as delays, taxes, and higher interest rates are ultimately transferred to buyers, affecting affordability and project feasibility. Mr. Kheir urged the Victorian government to accelerate efforts to streamline land approvals and reduce red tape to mitigate an escalating housing crisis. He noted that Eynesbury's progress benefitted from pre-existing approvals, which is not the case for many other developments.

The partnership with Mitsubishi Estate Asia also signals a shift in the source of development funding. While institutional capital of this magnitude has typically been the domain of large, publicly listed platforms, MEA’s investment underscores privately owned developers’ ability to attract substantial international investment. MEA’s involvement in Australian real estate extends beyond Victoria, with prior stakes in projects alongside Lendlease in Sydney and Mirvac’s $2.3 billion Darling Harbour development, as well as partnerships on projects on the Gold Coast and in New South Wales.

MEA’s head of Australia, Yosuke Matsunaga, described Eynesbury as a project combining “significant scale and long-term residential potential” with an experienced local partner. Despite the current challenges in the Victorian market, Mr. Kheir remains optimistic, characterizing the downturn as a “short-term low.” He anticipates market improvement over the next several years, driven by factors including population growth, wage increases, and enhanced business confidence, which he believes will restore profitability for developers.

With the Eynesbury project now well capitalized for its next phase, Resimax plans to expand its portfolio with new acquisitions and has ambitions to develop up to 10,000 homes across the coming decade. The involvement of major Japanese investors in Australian property markets is viewed by Mr. Kheir as a positive indicator for the sector’s medium- to long-term outlook.