THE PROPERTY DEVELOPMENT REVIEW
What market sectors do you anticipate being most in demand over the next six months? Existing residential assets are receiving significant enquiry based on population growth continuing to soar in Brisbane, and a lack of supply. Queensland’s population growth is forecasted to lead the nation at 2.2% p.a. and offshore migration is returning faster than expected. I anticipate the heated demand for any residential assets will continue over the next 6 months as the issue around supply will not be alleviated for years to come. 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? Supply-chain factors seem to have largely been resolved. Labour costs appear to be major factor at present but may start to stabilize as offshore migration increases. Anecdotally, developers have suggested build costs have become more predicable lately, and as such I anticipate developers will be encouraged to re-commence project planning once labour costs show some stabilization. What advice do you have for any prospective developers in the current climate? Closely consider locations in proximity to hospitals and key employment hubs/transport. The Queensland State Government has committed a significant $9.8bn into the Capacity Expansion Program. More than ever, key worker accommodation is vital, and I believe projects that can leverage this government spend and attraction of employment will benefit. How have your marketing strategies changed, if at all, over the past 12 months? We have continued to increase focus on digital marketing, as purchasers spend more and more time online. We have found a direct correlation between digital platform spend and accessing active private capital.
June / July 2023 – 67
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