Now that funding and sales are getting harder to achieve many industry players change their tact and market positioning. Developers are beginning to target smaller, boutique projects. This can be a result of focusing on owner occupiers as the investors purchasing reduce. Also it reduces their exposure and is easier for the developer, competent in larger projects, to achieve funding. The projects turn over faster than the larger ones and need less time to achieve the presales lenders require.
Builders are also looking at smaller projects. Projects that recently they would not have considered will now become a target market for them to keep turn over up as the larger projects numbers reduce. This happens from a tier one all the way down to townhouse builders. It could be said it’s also a result of lenders becoming more picky on the builders they would accept for each particular project.
We keep a close eye on this. It’s important to us and developers to know which builders can appease the major lenders.
Boutique over 55’s developments are so hot right now! We have recommended builders for over 10 in the last 12 months. Especially in affluent areas where sale prices are demanding over $2m each. A lot of what is coming through planning are proposals of 5-20 units or townhouses. Many of these require Home Owners Warranty Insurance so getting a builder with the available insurance and quality is difficult. If you need some direction in this space we have plenty of knowledge of good performers.
One of our builders has recently completed a childcare project in Sydney. The job is a great quality project and was built for $1700 psm including the internal fitout, but excluding the outdoor playground. They are keen to do more so if you are interested please get in touch.
We have been busy over the last two quarters. There has been a lot of projects in the 10-50 apartment range that we have been recommending builders for. Also renovation and extension has been a busy market. We have a strength of builder recommendations in this space with capacity for more work.
- Apartments in Ipswich
- Senior Living in St Ives
- Renovation in Rose Bay
- Apartments in Cremorne
- Townhouses in Kew
- Townhouses in Reservoir
Our Builder Network is Improving
We are continually in touch with the market. This means our network of builders is improving all the time. We have new up and coming builders, experienced builders taking on bigger projects and others moving into new areas and markets. We’re happy to have chat to share our knowledge.