Identifying a property development site can indeed be tricky. Consider just these two property development challenges and risks for example. Choose the wrong location, and you may find yourself developing a project doomed to fail. Laws and regulatory requirements may change after you have already acquired a site, but before you have all the necessary permissions to get things underway. This is why property development site selection requires thoughtful consideration and due diligence.
If you are interested in acquiring a property development site, reach out to McAndrew Group. We are Brisbane’s leading property development management consultancy and can help you with your next project. Call us on 07 3266 8555 or get in touch online now to get started today.
Property Development Site Feasibility
There are several factors to consider when assessing site feasibility; they can be broadly summarised in a few bullet points that can guide you on what to look for in a development site:
Market – Supply and Demand
It is very easy to fall into the trap of setting one’s mind on a specific development project area.
A prospective developer should consider not only their personal preferences and perceptions – it is important to be acutely aware of the de-facto market situation when selecting a site. Think about what kind of properties are already present in the area you are considering. What the local market already supplies and whether it needs something that is still missing, may provide valuable insight into what kind of property development projects may have the most potential, and consequently what kind of sites you need to look for.
Economics – The Make Up of Local Strata
Consider who lives in the area local to your project. The income of the locals, where they work, how much they earn and what they can afford will likely play a part in your site selection as well. Research who may be interested in buying or renting in the locality you have in mind and if they would be happy with its current residents as neighbours.
Potential – Future Outlook
What are the prospects and projections for the suburb you are looking at? Is there growth potential or is the area in decline? Do not forget to account for the stage of the property development journey you are at either – developers who are only just starting out may not necessarily have the budget to target the most attractive metropolitan areas and newer, up-and-coming suburbs may provide better and more affordable opportunities.
Budget – How Much Can You Spend vs How Much You Will Have to Spend
Always keep in mind that the price of acquiring an adequate site is only one of the first steps to developing a property on it. It may be tempting to overspend on an attractive site, only to find yourself short–changed for the actual development process.
Outcomes – Achievable and Possible Results
Focus on achievable outcomes and carefully consider not only what you can imagine possible, but what you can realistically expect to deliver in terms of the final product and potential returns on your investment.
As you can see, site selection requires a great deal of both insight and foresight. It certainly is not easy to account for all the variables and make realistic predictions for a given site. Take advantage of our experience and in-depth industry knowledge. A property development site feasibility review from McAndrew Group can help you mitigate and overcome these and other risks inherently involved in property development while providing informed forecasts on what you can expect to achieve with your next project.
As Brisbane’s leading property development consultancy with over 30 year tenure in the industry, we can help you assess the feasibility of your project and carry out off-market development site identification and acquisition. Give your next property development project an edge from the start, call 07 3266 8555 or contact us online today.