THE PROPERTY DEVELOPMENT REVIEW
most importantly developing strong relationships is the key to success in this industry.
and QLD. These groups have been successful in their respective locations and wish to redeploy capital into Victoria to diversify their businesses. International private equity and institutional funds from Japan, Singapore and Hong Kong (for example), are participating in the market through local developers by way of joint ventures, funding arrangements and other creative deal structures. The long standing well-known private and corporate Australian developers have remained very active in the market.
Where do you see opportunities for purchasers in the short to medium term? The greenfield development market has proven its resilience throughout COVID and due to flexible working arrangements as well as affordability relative to established areas, demand is expected to remain strong. Regional locations within commuting distance to a CBD or major regional hub are likely to continue to perform well. If the forecasted rental growth levels are to come to fruition, opportunities within the industrial sector of the market will remain prevalent. From a countercyclical perspective,
What advice would you give property developers today?
Australia is a secure first world economy which offers a stable
democratic system, it is considered a safe haven for the investment of international capital and an attractive destination for skilled migrants. While COVID ceased immigration in recent years, the government understands the economic importance of attracting immigrants. Melbourne is expected to be a city of 10 million people by the 2050’s. This is the current population of London and real estate prices in this city are much higher than Melbourne. A residential developer once mentioned that he has two partners; the banks and the government as neither of these groups can afford for the housing market to crash. Banks and government are likely to take measures to ensure the continued success of the sector. If developers are willing to take a long-term view on the market, they are likely to be rewarded over time.
What is the secret to success in your sector of the market?
purchasers may look towards the owner occupier apartment
At LAWD, we have brought together numerous top performing operators who have valuation qualifications, extensive experience in professional services, and consultancy backgrounds. Having an understanding of the fundamentals has enabled our business to secure exceptional results for clients, as well as our ability to take a sophisticated approach to transactions of complexity. However, the non-tangible skills are more important than anything else. While we always endeavor to add- value through our industry knowledge, building rapport / trust with clients, doing what we say we will do and
development given the lack of supply delivered to the market in recent years. Although there are challenges with pre-sales, development costs and buyers’ current preference for traditional housing, there are likely to be opportunities in this sector. If prices continue to rise and interest rates increase, demand will increase for affordable housing.
Has there been a change in the buyer profile in recent times?
We have witnessed the emergence of new interstate purchasers in the past two years particularly from NSW
April / May 2022 – 45
Powered by FlippingBook