Greenfield
AUSTRALIAN GREENFIELD DREAM ‘NEEDS REIMAGINING’
Author: Clare Burnett Urban Developer
Legacy Property has launched projects in Gledswood Hills, The Ranges (pictured) and a 320-lot site—5500 people are registered for the latter.
Greenfield developers are taking a glass-half-full approach to the demands in the sector, according to leading industry figures.
tracking upwards. “[Infrastructure like that surrounding] Western Sydney Airport is a beacon for development and buyer appetite,” Staedler says. Outside metropolitan areas, places such as Wollongong are experiencing “exceptionally high prices” given borrowing capacities. Newcastle, just two hours from Sydney, is faring a little better. “There we have an affordable price point for first time buyers particularly to get into, and Newcastle is probably the one that’s been the most speedy through the market over a 12 month period. And that’s really due to the affordability equation.” Sheargold managing director of communities Michael Sheargold says that the decline in first-time home buyers has been glaring. “The first-time home buyer market is down dramatically due to the whole issue of getting finance, so our market is shifting towards upsizers and downsizers,” he says. Hyder agrred, saying that this was not necessarily a bad thing— although it would have an impact on home prices overall as demand continues to skyrocket. “[What this means is] that the upgrade market is very strong. As a developer, we were very excited, 45 per cent of our enquiries have been from the upgrader market and they can pay higher prices.”
“How many businesses in the world can say we have an excess number of buyers for our product, to the point where we cannot meet the market?” Legacy Property chief executive officer Matthew Hyder told The Urban Developer Sydney Residential Development Summit this month. “Yes, it’s cyclical. Of course approvals are a nightmare in New South Wales. But if you’re a long-term developer and you have resilience and you’re well capitalised, I just cannot think of a better way to spend your time at the office.” But pressures—from councils to rezoning, interest rates on buyers and builders, fuel costs and more—are clearly making an impact. Data from the Australian Bureau of Statistics showed that in 2023 work started on just 163,285 new homes, marking a 10.5 per cent decline on the previous year. One of the biggest areas affected was new-build greenfield homes. That’s not to say the end of greenfield is nigh, RPM group manager for research and data Michael Staedler says. “There is a huge role that both detached housing and townhouses need to play across Sydney, because not everyone wants to live in apartments. We really have to have a diverse offering,” he says. Changing buyer demographics In NSW, the north-west and south-west of Greater Sydney are
18 – June / July 2024
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