Residential property development in Australian cities has been performing well in recent years, with strong demand for housing and low interest rates driving growth.
According to data from the Australian Bureau of Statistics, the value of residential building approvals has been consistently higher than that of commercial building approvals.
Additionally, the residential property market has been relatively stable, with steady price growth and low levels of oversupply. In comparison, the commercial property market has been more volatile, with a slowdown in office and retail development due to a shift towards e-commerce and remote working.
Developing residential real estate is a complex process that requires careful planning and consideration. One of the key considerations is location. The location of the development will have a significant impact on its success. Factors to consider include proximity to schools, shopping centres, public transportation, and employment opportunities. Additionally, it’s important to consider the local zoning laws and building codes to ensure the development complies with all regulations.
Another important consideration is the target market. Knowing who the development is being built for will help determine the type of units, amenities, and pricing. For example, a development targeted at families will require larger units with more bedrooms and may include amenities such as a playground or swimming pool.
The design of the development is also crucial. The units should be designed to be functional, comfortable, and visually appealing. The development’s layout should also be well-planned to ensure it is easy to navigate and that the units receive plenty of natural light.
Financing is another important consideration. Developing residential real estate requires a significant investment and it’s important to have a clear understanding of the costs and revenue potential. This can include researching and identifying potential funding sources, such as loans, grants and tax incentives.
It’s important to have a strong management plan in place. This includes having a team in place to handle the day-to-day operations of the development, such as maintenance, leasing, and property management. A solid management plan will help ensure the development is well-maintained and runs smoothly.
To sum up, when developing residential real estate, it’s important to consider location, target market, design, financing, and management plan. These key considerations will help ensure that the development is successful and meets the needs of the community and the investors.
At High Numbers , we specialise in assisting clients, whether its for their first development whether its for tax advice for an experienced developer.