THE PROPERTY DEVELOPMENT REVIEW
the development encompasses a minimum of 50 apartments, all of which must be accessible for public rental and retained in a single ownership. Furthermore, the rental provider must offer lease terms spanning no fewer than 3 years. This modification is anticipated to stimulate foreign investment in Australia, particularly for the BTR projects. Its aim is to contribute to the nation’s growing demand for increased housing supply and affordable housing. Do you feel that associated factors like building costs, supply-chain challenges and market sentiment will improve for developers over the next 6-12 months? For instance, have building costs already peaked? Most of the supply chain issues seem to have been effectively addressed. Current labour expenses stand out as a prominent concern, although there’s potential for them to level off with the rise in offshore migration. Building costs seem to have stabilized and we are not experiencing the 20-30% increases in materials that we have seen over the last 1-2 years. Regarding market sentiment, it can be shaped by several elements like economic expansion, interest rate fluctuations, inflation and government directives. Since Perth is forecasting positive growth and a budget surplus and if interest rates maintain their low levels coupled with manageable inflation figures and pro-growth policies gain government backing, there’s potential for an upswing in market sentiment in the upcoming 6-12 months. Such an upturn could establish more advantageous circumstances for developers. Undoubtedly, it remains crucial for developers to closely monitor market shifts and evolving dynamics. Despite ongoing challenges, avenues for success and adaptation to evolving consumer desires and preferences might still exist.
What advice do you have for any prospective developers in the current climate?
To understand the market and conduct in-depth market research to identify emerging trends, shifting consumer preferences, and areas with demand for specific types of developments. To identify strategic sites that offer proximity to key infrastructure and transport hubs and conduct a thorough due diligence and minimize risk. A high priority should be given to quality construction and design. Delivering a high-quality product and incorporating sustainable and energy efficient features enhance your reputation and attract satisfied buyers. Overall plan with a long-term perspective in mind.
How have your marketing strategies changed, if at all, over the past 12 months?
Keep up the proactive promotion across a range of platforms. Digital communications have gained greater significance to ensure extensive market visibility. Nonetheless, regardless of the effectiveness of various platforms it remains crucial to complement them by dedicating ample time to phone interactions. As the market trends towards more discerning buyers, the value of leveraging personal connections and understanding the needs of active buyers remains indispensable when entering such environment.
August / September 2023 – 101
Powered by FlippingBook