Good point, rents in Perth at an all time low as well. I know investors who have dropped as much as $50 per week just to meet competition then you have pm fees which are very high in Perth.
I believe its climate at the moment, sign of the time, this includes all the fruit, would you believe even ducted aircond
Can not really this information as it is a fellow forum who is using this builder, leave it up to them if they care to share. OTP - so when you say creative, I am in on it, just how creative do you mean? apartments??? I like the idea of townhouses, if we could go 4 on a site that may be a winner, same builder at $1400 per sqm. If you shop builders at the moment I think we could all get good deals.
OTP doesn't necessarily have to be apartments. It can be townhouses/villas as well. Since your end goal is to sell, you just have to make the end product more appealing. One way to do this(other than price and build finish) for FHBs and OOs is letting them have a say in the design/layout if they buy it OTP before you start construction. Could be a win-win. How are the build times for villas at the moment? I am saving up for a 3-unit build sometime next year when the market goes down a bit more.
At peak my builder was taking 9 months from pouring of slab. No idea now, perhaps @Westminster knows? Not building in Perth at the moment. Is there a market for OTP stuff in Perth, the product you are talking about? My gut says its a tough gig. I know in peak developers building villas could not sell OTP. Alternatively Melbourne is a different beast, this works in the right area. Its a bit like DA (approved plans and permits) I don't think there is a market for this in Perth, yet you can easily sell DA for profit in Melb if it ticks the boxes. MTR
Not much market, hence creative All the FHBs and would-be OOs I talked to in Perth are holding out for the market to go down and they'll jump in. It's truly a buyers market right now and will probably stay that way for a while. I am no expert but in a buyers market, product differentiation is the key. If your numbers stack up for a reduced-price sell then that would probably be the best way. In established suburbs, buying a block of land at retail prices will be out of reach for most FHBs.Selling DA approved plans on strata titles may not fetch you enough margins in a buyers market. So I thought - what do FHBs and OOs want in new properties? A design/layout they like or had a say in. You are probably right that it's a tough gig.
I have a theory, low end, good quality, good/smart design that gives FHB/OO what they want, this means cost savings on the build. Key, close to all amenities, rail etc. I am trying to work out a template/formula so that I can continue to develop in boom/bust cycles. I know this can be achieved, just go to work at it. MTR
