THE PROPERTY DEVELOPMENT REVIEW
fact that at present demand for residential development sites is significantly biased toward genuine BTR opportunities. What is your forecast for the market’s behaviour in H2 2023, and how might increased lending and building costs impact different market segments? The market is particularly difficult to read at present. However, from a development site perspective, the next period is likely to present very good buying opportunities to the market place. Most certainly, buyers are demonstrating a high level of cautiousness in their decision making process with many choosing to sit on the fence until a clearer picture emerges as to the direction the market is taking. Due to the prevailing economic issues and weaker buyer activity, I expect buyers with the genuine capacity to purchase to take a hard line approach to their development feasibilities and exercise greater discretion than they would have 12 months ago as to what they decide to purchase or otherwise. On this basis, I expect the market to produce excellent buying opportunities to those courageous enough to enter the market. Personally, I am a supporter of a counter cyclical approach to property acquisition. Which industry sectors do you anticipate will experience high demand over the next 12 months? Over the course of the next 12 months, I think the highest level of buyer demand with be within the Industrial market (for investment and development grade assets) and BTR. Although, I think some great opportunities sit within alternative markets. As an industry expert, what advice would you offer to a developer with a $10 million budget on identifying potential investment opportunities through site selection and location? Develop an acquisition strategy around basic fundamentals.
assets ability to deliver on those objectives. Most importantly, never buy an investment property solely based upon the tenant. Could you share details about some of the most notable or fulfilling campaigns you and your team have been involved in, and what made them particularly meaningful? In recent times, I would have to say the Esplanade Hotel. An amazing asset which we had the privilege of selling last year. A truly iconic Melbourne property with a very rich history that extends from it’s birth in 1878 to today whereby it is widely noted as Melbourne’s premier hospitality venue. The property was leased on a 20 year term (plus options) with a net annual rental of approximately $3,150,000. The property sold for $64,000,000. I have a particular passion for heritage buildings and having the opportunity to be involved in the sale of such a notable asset was a true privilege for myself personally as it was for the Gorman Allard Shelton business. In light of the affordable housing crisis, what measures do you believe should be taken to encourage the development of more affordable housing, and how can developers contribute to this endeavour? I think there are limitations as to what more developers can do. If issues relating to the country’s housing crisis are to be dealt with it needs to be through government (at all levels) creating adequate incentives to deliver such product to the market. This may be simply through creating stronger tax concessions, releasing greater land supply for residential development, in addition to improving and streamlining the planning process for such developments. I am not convinced the Albanese Government $2 billion Accelerated Social Housing program (released on the weekend) does enough to address the issue… maybe time will tell?
Focus on a high quality property with limited capital expenditure exposure situated in a prime location.
Be very site specific and be clear on your immediate and longer term objectives for the property in an effort to establish the
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