THE PROPERTY DEVELOPMENT REVIEW
created some good opportunities for the opportunistic investors who are actively chasing opportunities off market, and this will no doubt continue throughout 2023. Increased lending costs hasn’t yet seen land prices cool off and this is a sector of the market we will be tracking closely. Seeing groups such as Westpac projecting house prices to continue to grow through in to 2024 will no doubt keep land rates high; the question will be how the increased holding costs coupled with high building prices offset any of this predicted growth in end product sales.
What market sectors do you anticipate being most in demand over the next six months?
Medical always feels to be the go-to investment class when speaking with buyers in our market. Adelaide tends to have a high number of private investors who drive the market, and these groups rarely transact anything which is underpinned by medical tenants. Securing these tenants tends to be a difficult process and their building infrastructure requirements make it difficult for them to relocate. The value-add buyers have also been out in force to start 2023 and this appears like it will carry through to the end of the year. In 2021 the market was about long-term cash flow, today there is a strong demand for assets with short lease profiles which can be repositioned within the next 2 years.
What advice do you have for any prospective developers in the current climate?
Fortune favours the brave.
How have your marketing strategies changed, if at all, over the past 12 months?
Our team continue to move away from the older traditional advertising methods with a strong focus on digital exposure. Having video as part of our package is now essential, it allows the interstate groups to get a much better feel for the asset than looking at it statically online.
May / June 2023 – 95
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