THE PROPERTY DEVELOPMENT REVIEW
online advertising. With more people spending time online and working remotely, these channels have become increasingly important for reaching potential clients and promoting our properties. In addition, we have also invested in virtual property tours and other online tools that allow clients to view and explore properties from the comfort of their own homes. This has helped to maintain strong levels of client engagement despite the challenges of social distancing and remote work. Overall, our approach to marketing has become more agile and flexible, allowing us to adapt quickly to changing market conditions and client needs. This has been a key point of difference for us compared to our larger, more traditional competitors, who may be more constrained by red tape and corporate governance. We believe that by staying nimble and focused on client needs, we can continue to deliver exceptional results in the Melbourne commercial real estate market. Here are some statistics to support our marketing efforts: • According to the Australian Bureau of Statistics (ABS), in the year ending June 2021, online retail sales in Australia reached a record high of $49.1 billion, an increase of 57% compared to the previous year. This highlights the growing importance of digital channels for reaching consumers in Australia. • A survey by social media management platform Hootsuite found that in 2021, 18.3 million Australians were active social media users, representing 72.7% of the country’s population. Thishighlights the potential reach of social media advertising for our agency. • The ABS also reports that in 2020, the average Australian spent 5.2 hours per day on the internet, up from 4.5 hours in 2018. This underscores the importance of having a strong online presence for our agency, as this is where many consumers are spending their time. • In terms of virtual property tours, a survey by realestate.com.au found that 83% of Australian property seekers would be more likely to enquire about a property if it had a virtual tour. Additionally, 55% of respondents said that they would be less likely to inspect a property in person if it did not have a virtual tour available. These findings suggest that virtual tours can be a highly effective way to engage with potential buyers or tenants in the Australian market.
order to succeed inthe Melbourne commercial real estate market. What advice do you have for any prospective developers in the current climate? 1. Stay informed: Keep up to date with the latest industry news and trends, as well as any regulatorychanges that could impact your projects. This will help you to make informed decisions and stay ahead of the competition. 2. Be flexible: The commercial real estate market can be unpredictable, so it’s important to beadaptable and open to changing your plans if necessary. This might include modifying your design ormarketing strategy to meet changing market conditions. 3. Focus on sustainability: Sustainable design and building practices are becoming increasingly important in the commercial and residential real estate industries, so consider incorporating green features into your projects. This can not only help to reduce your environmental impact, but also make your projects more attractive to tenants and investors. 4. Build relationships: Relationships are key in the commercial real estate industry, so invest time in building strong connections with other professionals, including architects, contractors, and lenders. This can help you to secure financing, attract tenants, and execute successful projects. 5. Manage risk: The commercial real estate industry involves a certain level of risk, so it’s important to have a solid risk management strategy in place. This might include carefully evaluating potential projects, securing appropriate insurance coverage, and having a contingency plan in case of unexpected events. By keeping these factors in mind and staying focused on your goals, prospective developers can navigate the current climate and succeed in the Melbourne commercial real estate market. How have your marketing strategies changed, if at all, over the past 12 months? As a digital-savvy commercial real estate agency, we have always been focused on leveraging the latest tools and technologies to reach our clients and promote our properties. However, the past 12 months have seen a significant shift in the way we approach marketing and client engagement, due to the impact of the COVID-19 pandemic. One of the most significant changes has been an increased emphasis on digital communications, including social media, email marketing, and
3. Data centres: With the growth of cloud computing and the increasing importance of data storage and processing, data centres are expected to be in demand. This is likely to drive demand for properties with suitable infrastructure and connectivity. 4. Residential development: Demand for residential development sites is expected to remain strong, driven by a growing population and ongoing demand for housing. This could include both greenfield and brownfield development opportunities. We also anticipate demand for affordable and social housing to increase off-the- back of heightened inflation and interest rate rises. Overall, these market sectors are expected to be in demand over the next six months due to various demographic, economic, and technological factors. However, it is important to note that market conditions can change quickly, and demand can be impacted by a range of factors such as government policy, economic conditions, and shifts in consumer behaviour. 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? Building costs have been increasing due to various factors, including higher material and labour costs, increased regulation, and supply chain disruptions caused by the pandemic. While it’s difficult to say whether building costs have already peaked or not, there is potential for costs to stabilise or even decrease if supply chain disruptions ease or if new technologies or materials become more widely adopted. Supply chain challenges have also impacted developers, causing delays and cost increases. However, if supply chains become more resilient or if there is greater investment in local manufacturing and production, these challenges could ease in the future. Market sentiment is also important for developers, as uncertainty and volatility can make it difficult to secure financing and attract tenants. If the market stabilizes and becomes more predictable, this could help developers to plan and execute projects more effectively. Overall, while there is potential for some of these associated factors to improve for developers over the next 6-12 months, it’s important to note that there are still many ongoing challenges and uncertainties inthe market. Developers will need to stay informed and adapt to changing conditions in
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