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Welcome to The Urban Developer's housing market pulse check for the city of Melbourne... 

Gold Coast Housing Market Insights

The booming lifestyle property market of Queensland’s Gold Coast has surged past the $1 million median price for detached houses as the city’s rental market continues to tighten…

Brisbane Housing Market Insights: November 2021

The Urban Developer’s latest Brisbane housing market insights...

Sydney Housing Market Insights: October 2021

The Urban Developer’s housing market insights combines market research, rolling indices, and expert opinion to unpack Sydney's real estate market...

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Strong pricing for retail assets in the current market has meant that owners must be willing to part with high-performing assets. In Vicinity Centres’ case, the divestment of Runaway Bay, at an 18 per cent premium to book value, enabled Vicinity to invest in Harbourtown—a natural complement to its existing outlet business.&nbsp;&nbsp;In this TUD Plus Briefing, taken from The Urban Developer’s <a href="https://the-urban-developer.myshopify.com/collections/on-demand-webinars/products/retail-property-vsummit" data-mce-href="https://the-urban-developer.myshopify.com/collections/on-demand-webinars/products/retail-property-vsummit">Retail Property vSummit</a>, Vicinity Centres chief development officer Carolyn Viney talks about her group’s ongoing work to balance the portfolio.“At the core of our strategy is that diversification,” she said.<span class="mce-preview-object mce-object-iframe" contenteditable="false" data-mce-object="iframe" data-mce-p-allowfullscreen="allowfullscreen" data-mce-p-src="https://www.youtube.com/embed/vscI-w2ayBE?rel=0"><iframe src="https://www.youtube.com/embed/vscI-w2ayBE?rel=0" width="560" height="314" frameborder="0" allowfullscreen="allowfullscreen" data-mce-src="https://www.youtube.com/embed/vscI-w2ayBE?rel=0"></iframe> “The idea of shopping centres that are in neighbourhood centres and that non-discretionary spend—we've got a big part of our portfolio in that space.“Then we've got the flagship centres in CBDs and places like Chadstone, which are playing to a different market.“But then you've also seen us over the last couple of years really positioning ourselves to grow our mixed-use pipeline and that's the other key plank of how we see diversification for our assets.”<hr> You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals.<a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans"> Click here to learn more.</a><img style="width: inherit; height: inherit;" src="https://images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" data-mce-src="https://images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" data-mce-style="width: inherit; height: inherit;">

In this TUD Plus Briefing, Vicinity Centres chief development officer Carolyn Viney talks about her group’s ongoing work to balance the portfolio and why it’s crucial...

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The past two years haven’t been easy for many real estate sectors, in particular for retail, despite online shopping hitting new highs.However, as we emerge from pandemic lockdowns and international border reopen, what’s next for the retail sector?In this TUD Plus Briefing, taken from The Urban Developer’s <a href="https://the-urban-developer.myshopify.com/collections/on-demand-webinars/products/retail-property-vsummit" data-mce-href="https://the-urban-developer.myshopify.com/collections/on-demand-webinars/products/retail-property-vsummit">Retail Property vSummit</a>, director of Location IQ Gavin Duane outlines his predictions, with the good news that while things may slow, opportunities remain.Duane said the ending of isolation meant retail now had more competition for consumers’ dollars, including people keen to again travel overseas.<span class="mce-preview-object mce-object-iframe" contenteditable="false" data-mce-object="iframe" data-mce-p-allowfullscreen="allowfullscreen" data-mce-p-src="https://www.youtube.com/embed/I_V5H7ydcNA?rel=0"><iframe src="https://www.youtube.com/embed/I_V5H7ydcNA?rel=0" width="560" height="314" frameborder="0" allowfullscreen="allowfullscreen" data-mce-src="https://www.youtube.com/embed/I_V5H7ydcNA?rel=0"></iframe> “In the next 12 months, we're still going to have some low population growth, inflation is increasing, real growth should remain relatively high,” he said.“And that should mean a relatively robust retail sales environment.“In the post 12 months, will have stronger population growth. Inflation will be increasing or moderating depending on a range of factors.But real growth and what we spend on retail will have a lot more competition.“I suspect we'll go back to a period where growth will be slower.“So, the key for people is, in my view—there is a market out there. the question is can you make that market?”<hr> You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals.<a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans"> Click here to learn more.</a> <div id="2GhuueZl01Zwo2aFfjNVi2"><picture><img src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" alt="TUD + Banner" data-mce-src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg"></picture><div> </div></div>

In this TUD Plus Briefing Location IQ Gavin Duane outlines his predictions for the retail sector, with the good news that while things may slow, opportunities remain…

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Faced with new legislation, looming insurance responsibilities and a shifting risk profile, developers and contractors are being forced to consider new software to help them prepare for the increasing administrative and regulatory burden.The introduction of two consumer protection initiatives in 2021 are the result of shifting industry sentiment as the balance of risk and responsibility is pushed further up the line.The Independent Construction Industry Risk Rating Tool (iCirt) and Design and Building Practitioners Regulation 2021 (NSW), together with plans for NSW government's introduction of decennial liability insurance, have forwarded more accountability to developers, requiring they share responsibility for build quality and compliance, open their books to receive risk ratings, and prove they have sufficient capital to undertake remedial work if defects are identified.While the new legislation comes with additional requirements, what is ultimately being demanded from developers is not necessarily more paperwork, but more accountability and transparency from all stakeholders involved in the build process.However, in an industry known to be slow to adopt new technology, the ability to comply is being hindered by the fact that many developers are still using old software designed to meet industry standards of 10 to 20 years ago.Simpel chief executive Kurt Robinson has worked in property for more than 20 years and observed how software needs have evolved.“Developers used to manage risk by pushing it further down the line and old software was more of a tool for liability, to help cover themselves,” Robinson, who is also Simpel co-founder, said.“It did the job because requirements were basic and communication and document management was more about storing files and correspondence.”As the regulatory environment evolves, responsibility is shifting with it and developers are looking for innovative solutions to help them and their contractors meet new requirements without increasing administration burden or cost.“Developers require auditable records of every file change or communication that has occurred; from the DA and design phase, through to the build process, because they’re going to have to carry build warranties and insurance liability for seven to 10 years beyond completion,” Robinson said.As the pace of regulation picks up, so too have expectations and the software designed to deliver it.&nbsp;“We’ve been speaking to a lot more developers in the last few months who are frustrated with their older software,” Robinson said.“Once they’ve seen what else is available, their eyes light up and their checklist expands.“Now it includes document comparison and drawing markup tools, pixel tracking, BIM, document audit controls and real-time updates, all pushed to site via smartphone compatible interfaces or QR code scanning technology.“Centralising this functionality is the easiest way for them to deliver transparency and accountability down the line and across the project lifecycle without needing lots of systems.“Simpel is a single system designed and built in Australia for the Australian construction industry, which means we can adapt and innovate quickly and it’s cost effective from day one of a project.”<hr> The Urban Developer is proud to partner with <a href="https://www.projectsimpel.com/" data-mce-href="https://www.projectsimpel.com/">Simpel</a> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.

Regulatory changes are pushing the construction industry into a new era, but it’s nothing to fear, says Australian software solution specialist Simpel…

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Australia is upgrading strict data privacy laws and regulations.Breaching these laws will result in hefty penalties and the immediate loss of brand reputation.Unfortunately, many developers and agents use legacy systems that provide limited security of client data. So, what can you do? Is there a comprehensive solution available?“The continued use of legacy sales tools and processes puts developers and builders at new levels of risk,” the managing director of SaleFish AU Tony Tadros said.The pandemic has revealed that ad hoc tools such as email, texts, chats, and other single-task software used on personal or company devices are simply not secure.The improper handling, collection, and storage of personal data is the leading cause of most data breaches.The only option is a fully integrated, secure end-to-end platform sales system that comprehensively addresses the above issues.There are three pillars of cyber security. They are:Technical controlsPreventing the compromise of confidential informationThis includes strict and auditable hardware, software, and access controlsPolicies and proceduresEnsuring no interceptions are made that put your company or your clients at riskThese controls cover all scenarios (In office, remote, and use of personal devices)PeoplePreventing the loss of Personal Identifiable Information (PII)Preventing the fraudulent use of your payment data due to a breach of dataKinds of personal information involved in breaches: all sectors<div id="X3fP6b7tV1dKdBmJwNzA9"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2yIrrAPfCN3bGkLN1DZbP2/d7c5cb2b7e25efa93044e068ce3c11e5/salefish_spons_graph_march_2022.jpg" alt="salefish graph march 2022" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2yIrrAPfCN3bGkLN1DZbP2/d7c5cb2b7e25efa93044e068ce3c11e5/salefish_spons_graph_march_2022.jpg"></picture><div>^ <span style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;" data-mce-style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;">Source: OAIC </div></div>According to the Office of the Australian Information Commissioner (OAIC), this graph depicts that contact information (name, address, phone number, etc.), identity information (driving licence, passport details), and financial details (banking details, credit card numbers) take the top three spots.Legacy systems and process risk examplesThe current processes and legacy systems do not protect your client’s data. Sellers now face new penalties when they fail to protect their client’s privacy and personal data.Real-world examples that have led to data breaches in Australia include:Manually completed reservations or Expressions of Interest (EOI’s) include PII, such as photos, driver’s licence, or passport.Agents often collect buyers’ data manually, using inefficient and insecure ad hoc processes (mobile phones, emails, etc) to developers and other partiesLegacy platforms often do not move past the reservation or EOI forms, exposing developers, agents, and purchasers to privacy breaches.Buyers entrust agents with their contact information, credit, and income details to fill out on their behalf via the limited legacy reservation or EOI forms to secure a purchase.&nbsp;Last year, human error data breaches accounted for 30 per cent of all data breaches, according to the AOIC.Agents have accidentally shared confidential data, posted personal data online, or left it lying around in offices.Breaching privacy laws in Australia can put you and your company at risk of receiving significant penalties (up to $2.1 million and $10 million for repeated breaches) and even jail.Hence it is paramount to understand obligations and responsibilities under the new Australian privacy laws.So, what can be done?The post-Covid scenario is different for every industry, and the real estate industry is no exception when it comes to data collection and information security. The critical steps required to protect you from cyberattacks and data breaches may include:Review all policies and procedures that govern how personal data (PII) is collected and stored in your organizationPeriodically audit your IT security policies, technical controls and infrastructure to ensure it keeps up with the evolving threat landscape.Conduct regular employee training on identifying and responding a cyber incident.Finally, real estate agents and developers dispose of legacy systems to more advanced solutions that provide comprehensive data security.<div id="tG0PLzb2m8nsgcR6gyuj6"><picture><img src="//images.ctfassets.net/8pr762qjocl3/oC9tbA9FPQyO6NIPLa4qR/337cc1e37b5b75f9e6ab9539d064a36c/iStock-701249404.jpg" alt="Australia is upgrading strict data privacy laws and regulations—for the property sector, it means the writings on the wall that the processes of yesterday won’t cut it today." data-mce-src="//images.ctfassets.net/8pr762qjocl3/oC9tbA9FPQyO6NIPLa4qR/337cc1e37b5b75f9e6ab9539d064a36c/iStock-701249404.jpg"></picture><div>▲ Australia is upgrading strict data privacy laws and regulations—for the property sector, it means the processes of yesterday won’t cut it today. </div></div>Why SaleFish?<a data-mce-href="https://salefishsoftware.com/" href="https://salefishsoftware.com/" target="_blank">SaleFish</a> is Certified as <a href="https://www.ic.gc.ca/eic/site/137.nsf/eng/home" data-mce-href="https://www.ic.gc.ca/eic/site/137.nsf/eng/home">Cyber Secure</a> by Cyber Essentials Canada, which is on par with the GDPR federal government certifications offered in the UK, EU, and the US.These countries are working on bilateral agreements to enable these certifications to be recognised in each region as an equivalent certification.SaleFish includes a best-in-class four-factor authentication solution to ensure a robust security posture.Australia has not yet implemented a Cyber Security Certification on par with Cyber Essentials. However, the ACSC (Australian Cyber Security Centre) strongly recommends implementing MFA (Multi Factor Authentication). Hence, you can be assured partnering with SaleFish puts your organisation at the top of the secure data global standards.<a data-mce-href="https://salefishsoftware.com/" href="https://salefishsoftware.com/" target="_blank">SaleFish Software</a> is a global market leader in the property space with the proven capability to generate contracts for the chosen property, derived from real-time stock lists, and steps all parties through an innovative digital workflow to eliminate any risks to buyers, property agents, and developers.Here’s how SaleFish’s solution works.The buyer, agent, or both pick out the home or property of their dreamsThen we biometrically authenticate the buyer’s identity to their government ID, including an international fraud list review, and populate the data directly into the sales contract eliminating human errors such as misspellings.Our integrated one-touch digital signature solution instantly signs all of the documents where they are required and will process any electronic deposit as per the transaction requirementsAfter that, we securely email all parties with four-factor authentication (MFA or Multi-Factor Authentication) for enhanced security to access the contracts and necessary digital paperwork for everyone involved in the transaction.In the end, SaleFish is the one-stop shop to enable your company to comply and follow the complex and ever-changing regulations cost-effectively.The risks associated with data privacy when selling property development projects are significant in today’s unprecedented times of evolving cybercrime.The lack of practical data governance and legacy systems are critical contributors to these risks. They may lead to undesirable outcomes, including financial loss, reputational damage, and regulatory penalties.Therefore, real estate developers and agents need to implement a data governance framework that securely identifies and manages sensitive data to mitigate these risks.<hr> The Urban Developer is proud to partner with <a href="https://salefishsoftware.com/home-new-popup-au/" data-mce-href="https://salefishsoftware.com/home-new-popup-au/">SaleFish</a> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.

Australia is upgrading strict data privacy laws and regulations—for the property sector, it means the writings on the wall that the processes of yesterday won’t cut it today, as the Salefish team explains…

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Securing a site for development is not often cut and dried, with negotiations behind the scenes taking any manner of twists and turns.For Forme’s Luna residential tower at Burleigh Heads on the Gold Coast, that was very much the case, as Forme managing director David Calvisi explains in this TUD Plus Briefing taken from The Urban Developer <a href="https://the-urban-developer.myshopify.com/collections/on-demand-webinars/products/boutique-development-vsummit" data-mce-href="https://the-urban-developer.myshopify.com/collections/on-demand-webinars/products/boutique-development-vsummit">Boutique Development vSummit</a>.Luna, on Goodwin Terrace, is an eight-storey high-end tower with three-bedroom, full-floor apartments. All eight, priced from $3.9 million, sold out in January 2021. Construction was completed in February 2022.Calvisi said the site, formerly the home of popular restaurant The Fish House, had been purchased from a group of investors in 2018 for $5.5 million.<span class="mce-preview-object mce-object-iframe" contenteditable="false" data-mce-object="iframe" data-mce-p-allowfullscreen="allowfullscreen" data-mce-p-src="https://www.youtube.com/embed/dN4ua4tOpLk?rel=0"><iframe src="https://www.youtube.com/embed/dN4ua4tOpLk?rel=0" width="560" height="314" frameborder="0" allowfullscreen="allowfullscreen" data-mce-src="https://www.youtube.com/embed/dN4ua4tOpLk?rel=0"></iframe> “One of those owners was actually the ex-chief executive of Billabong, Matthew Perrin—at the time he was in jail, and it made for a pretty tricky negotiation,” he said.“We were able to get someone to go in and see him, and get the deal done that way.“When we bought it, the site was leased to The Fish House and it had 10 years remaining on the lease.So, a separate deal was struck with the owner to purchase the business … just shortly after purchasing the site.“We paid $1.8 million for the business and that obviously included all the assets of the business which we which we sold down by via an auction.”<hr> You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals.<a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans"> Click here to learn more.</a><div id="2GhuueZl01Zwo2aFfjNVi2"><picture><img src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" alt="TUD + Banner" data-mce-src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg"></picture></div>

Forme’s David Calvisi takes you behind the scenes, including the negotiation to secure the site, for its successful luxury residential tower Luna at Burleigh Heads in this TUD Plus Briefing...

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Builders and developers enjoyed a strong property market in 2021, yet some will remember it as the year of the ‘profitless boom’.Demand for&nbsp;property&nbsp;soared, but&nbsp;developers&nbsp;also had to deal with surging land and construction costs, widespread shortages of materials and trades, council delays and other impacts of Covid.So, what’s in store for property development and construction in 2022?According to <a data-mce-href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" target="_blank">Trilogy Funds</a>’ head of lending &amp; property assets Clinton Arentz, while&nbsp;the scarcity of building supplies continues to delay projects and drive-up building costs, there are good reasons for the construction sector to have confidence in favourable business conditions in 2022 and beyond.&nbsp;“We’ve seen tremendous sales support over the last 12 months which has caused developers to bring projects forward or accelerate existing projects,” he said.&nbsp;“While some delays in completing projects have resulted in developers drip-feeding product to the market, this has created a strong pipeline of demand, particularly in capital city locations.&nbsp;“The return of international students and international migrants are an exciting prospect as we expect to see this demand continue throughout 2022.”Here are four areas of opportunity for property development and construction this year and how to take advantage of them:1. Residential builders to be kept busyDespite the end of the HomeBuilder grant scheme, demand for both detached home building and multi-unit construction remains strong, and this will be maintained throughout 2022 and 2023,&nbsp;according to the HIA.Building approvals have remained consistently high. This pent-up demand for residential construction is likely to persist for some time to come as Australia’s economy bounces back and borders reopen, and HIA chief economist Tim Reardon said this would ensure ‘boom conditions’ for home builders are sustained.&nbsp;“Multi-unit approvals (up 34.3 per cent quarter on quarter) have also been recovering from the adverse impact of Covid … this is an encouraging sign that apartment construction will return prior to the return of overseas migration,” he said.When it comes to boutique residential developments such as townhouses, apartment buildings and duplexes, Arentz said:&nbsp;“we’ve seen a range of high-quality boutique projects being proposed by developers seeking finance from <a data-mce-href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" target="_blank">Trilogy Funds</a>, other non-bank financiers and more broadly in the market.&nbsp;“Developers and architects are experimenting with different styles of product, often at a higher level of quality to meet expected ongoing demand.&nbsp;“While demand is high, there are still challenges to navigate, such as construction cost escalation coupled with supply chain interruption, but developers who stick to detailed project plans will be able to generate optimal financial outcomes.”Material delays over third quarter, 2021<div id="78agmtNy7mYL7PPF9Eofr6"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3U3Qz6YjCFxP3IbEZeEl4j/efa5227113d3e09da1f667d4c97b4b5f/Picture_1.png" alt="Trilogy march 2022 spons hero" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3U3Qz6YjCFxP3IbEZeEl4j/efa5227113d3e09da1f667d4c97b4b5f/Picture_1.png"></picture> &nbsp;^ Source: MBA </div>2. SDA housing receiving strong government support&nbsp;Specialist Disability Accommodation housing presents compelling opportunities for developers and investors as it attracts significant government funding through the National Disability Insurance Scheme (NDIS).Kyle Hunt of the Health Care Providers Association said there ws a general lack of awareness by investors and developers of the opportunities available in this sector.“We are seeing billions of dollars in potential funding remaining untouched,”&nbsp;<a href="https://www.theurbandeveloper.com/articles/demand-for-ndis-services-forecast-to-triple-by-2023" data-mce-href="https://www.theurbandeveloper.com/articles/demand-for-ndis-services-forecast-to-triple-by-2023">Hunt</a>&nbsp;said.<a data-mce-href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" target="_blank">Trilogy Funds</a> is proud to include tailored funding for NDIS and SDA projects in its broad lending offering and is looking to support more developers and projects in this space.“In 2021 we co-funded SDA projects in Sydney and Queensland,” Arentz said.“We believe this sector will increase significantly over the next 10 years, not only due to government funding and participant demand, but also because of the opportunities it presents to support socially responsible projects.”3. Commercial property benefiting from foreign investorsCBDs are expected to be reinvigorated as the Covid health crisis recedes. Offices, shopping centres, student accommodation and hotels are expected to benefit from increased mobility and the reopening of international borders.&nbsp;The commercial property sector is also being underpinned by strong interest from offshore investors, who, despite the closure of our international borders accounted for 33 per cent of the volume of $1-million-plus commercial properties sold in Australia in 2021 according to Real Commercial, snapping up assets ranging from offices to malls and aged care centres.&nbsp;Knight Frank expects&nbsp;pent-up demand&nbsp;for office space to boost occupancies in 2022 and drive recovery in that market. There’s a flight to quality builds, suggesting that premium and upper A-grade space will be most sought-after.&nbsp;Herron Todd White says there is&nbsp;strong interest&nbsp;in small, high-quality suburban office assets from both investors and owner-occupiers, providing opportunities for developers who can meet this need.&nbsp;Many businesses in bricks-and-mortar retail have suffered as a result of the e-commerce boom that has spiked demand for logistics properties, but notable exceptions have included essential retailers like supermarkets, and smaller neighbourhood shopping malls. These have been the top pick for retail real estate investors recently according to AFR property editor, Nick Lenaghan.Arentz also sees good opportunity in other commercial areas.<div id="3BisrRqgpEcaSEWkhuYgnt"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4ZjwmzHETVyxUunKAp2zY6/68b4a3c81d95d5c02feb4d737a95da55/iStock-517160186.jpg" alt="After a year of mixed fortunes, there is much to be optimistic about in 2022." data-mce-src="//images.ctfassets.net/8pr762qjocl3/4ZjwmzHETVyxUunKAp2zY6/68b4a3c81d95d5c02feb4d737a95da55/iStock-517160186.jpg"></picture><div>▲ After a year of mixed fortunes, there is much to be optimistic about in 2022. </div></div>“Well-thought-out commercial projects in good locations, particularly those that focus on education, health and wellbeing, and speciality services, will continue to remain in high demand, particularly by end users aligned to medical centres or essential service based mixed-use retail,” he said.&nbsp;4. Further tightening of industrial supply for prospective tenantsThe industrial and logistics sector continues its strong run that began before the Covid crisis, thanks in large part to the growth in e-commerce.&nbsp;Vacancy rates are at record lows (just&nbsp;<a href="https://www.theurbandeveloper.com/articles/industrial-vacancies-hit-all-time-low" data-mce-href="https://www.theurbandeveloper.com/articles/industrial-vacancies-hit-all-time-low">0.4 per cent in Sydney</a>), and rents surged by double digits in some capital city markets in 2021 due to intense competition for warehousing.&nbsp;&nbsp;According to Colliers, industrial completions nationally are expected to reach 2.4 million square metres in 2022, including 1.3 million square metres of new logistics facilities in the first six months alone.&nbsp;&nbsp;&nbsp;“The demand for quality industrial space and specialist spaces such as cold-storage is expected to continue for some years, providing opportunities for developers with access to well-located land and a strong understanding of the type of assets required in that area,” Arentz said.&nbsp;“A fund-through situation in which the tenant or multiple tenants are secured on long leases prior to construction may be ideal for developers and can be similarly attractive for investors and funds seeking to acquire the property.”&nbsp;How to take advantage of these growth areasEnsure you understand the market&nbsp;into which you’re developing. As they say, location is everything, but so is knowing what type of project will provide the best return on investment.Plan carefully. Be clear on your project plan, the risks involved and potential opportunities. Do this by leaning on specialists in the field such as valuers, quantity surveyors and property lawyers.&nbsp;&nbsp;Get your financing in order and work with a financier who understands property development and considers your project’s needs. “In a competitive market, there are many property development finance and construction loan options, but I would look for a financier who not only has good rates and terms but will provide that ongoing support you need to meet your project plans, from land acquisition right through to sales,” Arentz said.&nbsp;Looking for a way to finance property development with a trusted financier?Trilogy Funds offers tailored and flexible funding solutions to finance property development across the residential, commercial, industrial, and retail property sectors.&nbsp;“We provide property <a data-mce-href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral">development finance and construction loans</a> across most states of Australia,” Arentz said.&nbsp;<hr> The Urban Developer is proud to partner with <a data-mce-href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" href="https://trilogyfunds.com.au/financing-borrowers/?utm_campaign=4%20growth%20areas%20article%20tud&amp;utm_source=the%20urban%20developer&amp;utm_medium=referral" target="_blank" rel="noopener">Trilogy Funds</a> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.&nbsp;

Builders and developers enjoyed a strong property market in 2021, yet some will remember it as the year of the ‘profitless boom’. So, what’s ahead in 2022?