THE PROPERTY DEVELOPMENT REVIEW
you’ll have a lot of confidence that population is going to flow. Overall, the fundamental metrics are looking really strong, so now is a great time for investors to be putting their capital into Queensland property. Has there been any changes in the sales process recently? (Kyle) - I don’t think properties are taking longer to sell. I think, provided that you’re pitching it at the right level, you’ll always find a buyer for it. In terms of how we’re marketing, we’ve definitely changed our perspective. We’re taking a much more targeted approach than what we had done before. We’re spending a lot of time on trying to identify who the target groups are, and what’s the best way of reaching them. Whether that’s through social media, targeted electronic distribution, etc., it’s yielded us really good results in terms of how many quality enquiries we get. We are tending to use those traditional forms of marketing a lot less; printed media is probably not as strong for us now as it once was. Obviously, online listings are very important, but it’s the strategy that
you use to drive people to that listing that’s become even more important. What concerns have investors had when it comes to the Queensland property market? (Kyle) - Rising cost of debt and rising cost of construction are some of the key concerns, not just in Queensland but across Australia. It’s really limited the options for developers in terms of which building groups are able to do certain things. So, if you’re look to construct a mid- or a high-rise building, there’s a very short selection of builders that are in the marketplace that can do that. Obviously, they’ve been stung by some supply chain issues, and high cost of labour. But I think that will potentially taper off over time. What is the outlook for the Queensland property market over the next 12-to-24 months? (Kyle) - It depends on the sector of the market that we’re looking at. If we’re talking in a traditional commercial sense, the change to yields will be impactful. The change in yields means we’re going to have
to see rents increase in commercial applications, whether it be retail or commercial office space. I think landlords and owners are probably going to have to provide a higher level of quality to demand those higher rents. In terms of development sites, there’s going to continue to be sales in pockets of south-east Queensland, but we’re going to see more of a push into regional QLD. That’s based on availability, and the headwinds that developers are seeing in metro areas, which are more complicated to manage than developments in the regions.
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20 MINUTES
October / November 2022 – 75
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