Which Would you Pick

I'd say a lot of Sydney was definitely starting to slow, but then we keep getting an interest rate cut and things kick up again. You were definitely getting far less of those unexpected frothy results you see at Auction after a rate cut.
You only have to look at Clearance rates to see that.
It probably is just a case of kicking the can down the road ~12months though.

There was a lot of talk for a while about settlement risk on a lot of these large OTP developments that were heavily sold to Overseas Investors.
I'd imagine due to the relative strength of the markets and interest rate cuts, they have probably been successful in offloading them but. Might get a bit more ugly if the market turns.

I think there's a big difference between selling OTP to Foreign Investors or locals but, if prices fall more than 10% you might have a chance suing a local for the difference if they have other wealth. Good luck with that foreign investor.

 

Good call. From someone who lives, works, develops, breaths this area you won't have any problems selling now, during or completion.

In my experience and from some fellow developers I know in the area who achieve the best prices, they often don't sell/have opens etc until the whole site is completed.

They will ensure the landscaping, presentation and building finish is spot on and stage one of the units/townhouse for opens. they focus on simple yet inexpensive finishes. There is lots of developments in this area however these small finishing touches always set yours above the rest. (eg. New fences and painted, free standing screening instead of trellis for over looking requirements, neat/symmetric plantings in common/private open spaces, paint any retaining walls, use instant turf instead of trying to seed, fix the nature strip and street appeal, try use some quality wood as a feature on the facade or even letter box).

I have seen this approach fetch 50-100K extra per unit in the Croydon area.

One example of a staged unit which sold 17 months ago for 640K -

Sold Price for 21 Plumer Street Croydon Vic 3136

Same again here, yet sold for 700K -

Sold Price for 1A Midhurst Road Croydon Vic 3136

 

Good advice.
Thanks for the links on Croydon properties, fetching some good prices, I agree important to get the overall presentation/spec correct.

The market turned when I was developing in Perth, 3 villa development and I personally believe it was the presentation that saved the bacon, they sold within 4 weeks, while similar developments were not selling or at much lower price. Many of the developers opted for very cheap finishes and though location may have been superior to my location, presentation/quality one the day.

MTR