How Do New Residential Developments in Sydney Stay Relevant on the Property Market?
New residential developments are always popping up across the country, particularly in Sydney, where the demand for housing never seems to slow down. However, as every property developer at Cite Group knows, you should never underestimate the property market. To fully take advantage of the strong property market, we should develop properties that capitalise on both the current market conditions and prepare for success in the future market.
Strong demand does not indicate easy profitability
Fuelled by a low interest rate and recovering employment, strong demand for residential properties is here to stay, but that doesn’t mean that renters and home buyers will be easy to convert. Though there may be a healthy pool of possible renters and buyers, there will also be a decent amount of properties up for rent or sale. So how do emerging residential developments stay relevant on the market? By understanding what people want.
What do we mean by the term relevant?
When we state that a property should be relevant, we mean that developments should be designed with the current consumer (renter or buyer) and market conditions in mind. The development should be relevant to their needs to be attractive to your target market.
To determine what your development needs to offer to be considered relevant, a location, economic and physical analysis should be done.
Staying relevant on the property market is important for long- and short-term profitability
Strong demand in the property market indicates a solid future for property developers across the country; this does not negate the fact that properties should be attractive to buyers and renters.
Here are two reasons why staying relevant is key for both long- and short-term profitability:
- Ensuring that your properties are relevant is key for steady rental and sales after completion of the building. This point is obvious as most property developers think about the immediate wants and needs of customers, especially as it directly affects their return on investment.
- This is particularly important for property developers, investors and landowners who rely on rent as a primary or partial form of recoupment of money. Staying relevant is key for long-term profitability because it ensures that developments remain marketable for a longer time and need minimal upgrades to re-acquire a competitive advantage for future market conditions.
Let’s now look at general trends in Sydney that new residential developments should incorporate to remain competitive and relevant.
3 elements new residential developments in Sydney should incorporate to become relevant
Wellness is the most important point on this list as it has recently overtaken sustainability in the priority list of homebuyers. Wellness refers to high-quality and comfortable living spaces that promote a natural and healthy living environment.
This emphasis on high-quality living accelerated during the lockdown period in Sydney for the COVID-19 pandemic. As homeowners spent more time at home, the need and recognition of the importance of practical but comfortable living spaces became more integral to living a balanced life that promoted both physical and mental wellbeing.
High-quality living space doesn’t mean lavish furnishings like marble countertops and chandeliers, instead, they refer to a home equipped with elements that provide natural comfort within the space. Here are a few features that Sydneysiders may be on the lookout for:
- solar access,
- natural ventilation and
- highly sophisticated on-demand lighting that aligns with our circadian rhythm.
Sustainability used to be the number one priority on prospective renters and homebuyers’ lists and though it’s slipped a notch, it is still extremely important to homeowners. Sustainability will not be fading from the minds of renters and buyers any time soon. Most people still have eco-consciousness in their minds and view it as a double-win when incorporated into homes as it is positive for the environment as well as their pockets.
Operational cost-efficiency and sustainability are always a winning combination. Here are a few key elements that are attractive to most renters and buyers:
- solar panels
- cross-ventilation window systems
- double-glazed windows
- insulated walls
Unsurprisingly, technology, like most areas in life, is a major selling point for buyers and renters. Technology is the way of the future and is especially important for enabling long-term profitability in the real estate market.
Technology adds to the comfort of a home and its perceived value. Here are a few elements that can class a home as technologically advanced or ‘smart’:
- smart appliances
- heated toilet seats
- motorised blinds
These elements aren’t as futuristic as they sound, however, many developments on the market do not have them and thus, have not taken advantage of the section of the market that values technology in homes.