So if I'm choosing a suburb to do a development in, how is knowing demographics (age, household incomes) of the suburb going to help decide if its a good suburb to choose?
It will help you refine your offering. Are there more diers than buyers? If the demographic is older single level is preferred and if there are more residents without kids then four bedroom dwellings might not do well. Common sense really. Demographic information along with your ancillary due diligence will help you plan your product to suit the market.
I would hang out at a cafe in the day and a pub in the eve and chat with a few pple. Find out the issues. If there is a housing shortage (appartly only in Syd and Melb now) they will give your case colour. Also all the usual due diligence such as demographics/infra. Do pple drive or walk? Single mums? CL customers? How much disp income do people have - do you want high end finish or basics? A lot of new builds in Sydney are so flashy people are happy to pay double for that brand new, top end hotel feel - usually young high income earners without kids, and empty nesters with about 3 mil from selling their big old house in the burbs
As above, it helps you decide what type of dwellings to build. In an area full of high income families you build nice homes with high end finishes. In an area full of average income singles you build 1bed apartments with nice but not high end finishes etc. I like to go through home opens in the area and see what type of people are looking at what type of dwelling.
Thanks guys. It's a pretty diverse kind of suburb in terms of incomes. It has beachfront properties worth $4 million, but 22 % of the households are housing commission.
Then find what is the best demographic to cater to in the area that has the best end sales values and fits your block with least risk involved.
It wont matter, developing property is only about one thing the numbers. Follow the developers who are making money, and where they are developing and copy, no need to reinvent the wheel. I would be more interested in where/what is gentrifying ie developers jumping in, what new developments sell for, product, what you have to pay to make it work and if it actually works, and most importantly market conditions are you buying at peak??? if so run a mile. No point worrying about demographics if the numbers don't stack up.
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