Talking to a developer friend this week, he told me of the bizarre predicament he is currently facing.
He can get approvals from the council, which is a tick.
He can get pre-sales from buyers – another tick.
The banks are happy to fund, so you’d think there’s the trifecta.
However, he can’t guarantee construction costs or timing, which freezes the entire project, even once it’s started, and it has seen some apartment complexes just screech to a halt mid-build.
This has forced some developers to go back to their buyers and request an increase on their agreed offers, which many buyers are prepared to do because they see the alternative is no sale at all.
But, even with these increases, it is still not smooth sailing due to the uncharted building landscape we are currently facing.
Each new week sees more opportunities and stimulation for the building sector. The intentions are great, but the resources are limited, and the road out is not yet clear.
The answer is not easy, but it points clearly to one outcome.
Resale prices can’t fall, they can only rise to these new prices, which will only continue to power the existing unit market.
This market has seen strong growth over the last two years, but it looks like records are about to be broken all over the city.
I’m excited to follow arguably Brisbane’s biggest and best unit, the penthouse atop Riparian Plaza, which is being marketed by Matt Lancashire, and what can be achieved for an international apartment in our city.
In Brisbane’s competitive real estate market, standard off-the-shelf cabinetry is no longer cutting it for prestige buyers. As our city’s median price holds at record highs, buyers are looking for bespoke craftsmanship and fluted, ribbed timber detailing has emerged as the clear mark of a luxury home. Here is how vertical timber ribbing and curved … […]
“Mate, how are you coping? I heard online that the market is getting a hiding!” This is what a mate of mine said on the weekend. A lot of people have a lot of opinions about the property market, so it’s important to know where they are speaking from and what they are talking about, … […]
Cush for Comment – JUNE 29
Talking to a developer friend this week, he told me of the bizarre predicament he is currently facing.
He can get approvals from the council, which is a tick.
He can get pre-sales from buyers – another tick.
The banks are happy to fund, so you’d think there’s the trifecta.
However, he can’t guarantee construction costs or timing, which freezes the entire project, even once it’s started, and it has seen some apartment complexes just screech to a halt mid-build.
This has forced some developers to go back to their buyers and request an increase on their agreed offers, which many buyers are prepared to do because they see the alternative is no sale at all.
But, even with these increases, it is still not smooth sailing due to the uncharted building landscape we are currently facing.
Each new week sees more opportunities and stimulation for the building sector. The intentions are great, but the resources are limited, and the road out is not yet clear.
The answer is not easy, but it points clearly to one outcome.
Resale prices can’t fall, they can only rise to these new prices, which will only continue to power the existing unit market.
This market has seen strong growth over the last two years, but it looks like records are about to be broken all over the city.
I’m excited to follow arguably Brisbane’s biggest and best unit, the penthouse atop Riparian Plaza, which is being marketed by Matt Lancashire, and what can be achieved for an international apartment in our city.
That’s a ‘watch this space’.
Latest News
Curved & Fluted: The Joinery Trend Raising the Bar in Brisbane Homes
In Brisbane’s competitive real estate market, standard off-the-shelf cabinetry is no longer cutting it for prestige buyers. As our city’s median price holds at record highs, buyers are looking for bespoke craftsmanship and fluted, ribbed timber detailing has emerged as the clear mark of a luxury home. Here is how vertical timber ribbing and curved … […]
Read Full Post
WHY BRISBANE’S PROPERTY MARKET HAS A ‘SNIFFLE’ AND NOT THE FLU
“Mate, how are you coping? I heard online that the market is getting a hiding!” This is what a mate of mine said on the weekend. A lot of people have a lot of opinions about the property market, so it’s important to know where they are speaking from and what they are talking about, … […]
Read Full Post