Australia’s residential greenfield markets are increasingly being shaped by the affordability squeeze creating “endless rows of grid-like homes”.
So says Redbank Communities business development manager Jock Douglas.
“Yields are getting squeezed and squeezed … there’s been a real trend in the greenfield market in western Sydney towards smaller and smaller lots,” he says.
“That’s happening because not only are developers thinking about their bottom line but also affordability for their clients.
“And so you’re seeing these new developments now with block sizes starting from 250sq m, which is pretty shocking.”
But Douglas says despite such pressures the key to the success of greenfield developments going forward will largely hinge on one thing—lifestyle.
“You've got to keep lifestyle at the forefront of it all.
“Not just keep producing this product that we keep seeing, these developments of endless rows of grid-like houses squeezed in together with not a lot of open space.”
Douglas, who will present at The Urban Developer Sydney Residential Development Summit 2023 on May 11, says the proof was in the pudding at Redbank Communities’ North Richmond, a 180ha, 1400-lot lifestyle-oriented greenfield development in western Sydney.
“We didn’t want to go down that same path as everybody else,” he says. “And so we went for more of a traditional subdivision with an average block size of about 650sq m and up to a acre … so bigger block sizes and a lot more open space, including about 30km of walking trails connecting extensive parkland.
“We thought we could offer something a lot different out here … a place that was fantastic to live in. And we’ve been proven correct.
“Our values have held up very strongly even in this downturn that we're experiencing at the moment. We're settling lots at the moment that we’ve sold over the last two years and haven’t had any fall over.”
About 500 lots still remain to be developed and taken to market in the estate.
“And because North Richmond is a bit more of a traditional sort of subdivision and we’ve gone for that lifestyle model, we have attracted very few investors and mainly owner-occupiers … people who are buying here to live and work here.”
The Urban Developer Sydney Residential Developer Summit will take place in Sydney on Thursday, May 11. Click here to learn more and to register.
