THE PROPERTY DEVELOPMENT REVIEW
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? Anecdotal evidence is that the rate of increase in building and civil costs has reduced and in some cases leveled out. Moving forward this will provide groups with more predictability in assessing costs for future projects. This certainty we anticipate is likely to encourage more commencements of projects currently on hold. What advice do you have for any prospective developers in the current climate? While the market may appear to have some challenges to work through in the short term with interest rates, construction costs etc the fundamentals of supply v’s demand will continue to underpin the market. Demand for all forms of residential products in SEQ will no doubt vary in pace but will remain constant over the next 10 years due to strong population growth and investment in infrastructure. When matched against land supply and delivery constraints there is significant opportunity for strong growth in values over that time How have your marketing strategies changed, if at all, over the past 12 months? While over the last 12 months we have moved back into more normal market conditions, the level of enquiry for most forms of residential product has remained strong albeit with a greater focus on several key influences shaping the market. Our marketing strategies have not wavered over this time with a focus on exposing properties to the widest possible target market, providing as much information as possible to assist buyers in their assessment and management of a structured process to create competition .
May / June 2023 – 75
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