While the GFC may be over, tough times are still ahead for the Australian residential property industry, according to 8 industry experts interviewed for a new report published by urban planning practice RobertsDay.
However the solution to weathering tough times is not simply more small homes, argues the new report, titled: Mixing It: Is Product Diversity the Key to Making Money in Tough Times?
“Consumer confidence is down, banks are wary; property developers and researchers are saying that tough times still lie ahead for the housing sector,” says Deon White, RobertsDay managing director and publisher of the report.
“But while compact may be the new black, the road to maintaining sales in tough times is more nuanced than just ever-growing precincts of ever-smaller homes on ever-smaller lots. People don’t want to live in a precinct of 500 small homes.”
Instead, leading property players interviewed for the report, including Australia’s second largest home builder Dale Alcock, argue that it is house product diversity, along with industry collaboration, community investment and walkability, that allow smart developers to stay balance-sheet healthy.
“We’ve found that for developers who not only survived but thrived during and after the GFC, product diversity – a mix of housing types, sizes, styles and densities – has been key,” White says. “When backed by a ‘whole of life’ design approach aimed at building communities, sales rates and a developer’s balance sheet are better placed to weather volatile times.”
Also inside the report:
- The next decade: The 4 key themes that will impact the Australian residential property sector
- Blueprint for success: How a two-tiered approach of product diversity and community commitment keeps sales rates constant
- Looking to the future: Harnessing the game-changer that is green marketing
RobertsDay is a town planning and urban design firm with 20 years global experience. With branches in Perth, Sydney and Melbourne, it works with councils, developers, designers and builders to create great places.
Using the RobertsDay Great Places process, it also helps councils and local authorities reassemble their vision for a place, develop their internal skills and reframe their regulatory environment to get better place outcomes.
P: +61 8 9218 8700