Just because you can develop a property doesn’t mean that you should. In our experience, only about 10 in 100 Melbourne properties with development potential are worth exploring. And, only about 1 in 10 of those promise strong enough profits at an acceptable level of risk. Experienced property developers always say a similar thing, “profits are made at the time of purchase”. Before buying a property for development purposes, it’s critical that you understand everything there is to know about the site, its potential, and the profitability associated with multiple design concepts.
What’s possible on a site? Should you build 2 large houses targeting established families who value the school zone and parklands? Or should you build 4 smaller townhouses targeting young professionals who value proximity to shops and transport? A comprehensive feasibility identifies the most profitable design concept, with reference to buyer demand and specifications.
Feasibilities spell out ALL Costs, including but not limited to Acquisition, Planning, Construction Holding, Subdivision and Sales (don’t forget stamp duty, council open space contributions, margin schemes, etc). They estimate the Gross Realised Value of the properties developed with reference to nearby comparable sales of new townhouses. They provide timelines, detail GST Inputs/Outputs, and spell out Equity and Debt requirements.
Ultimately, developers look for Profitability in terms of Return on Capital and Return on Equity. And, they need to know all of these numbers before they purchase.
A lot of moving parts go into feasibility study reports. It takes time and expertise to complete them properly. Experienced developers appoint us to save them time in securing their next project. They run their own feasibility analyses, but they simply don’t have the capacity to complete dozens before finding the right property (not to mention the headache of dealing with all the selling agents!). Newer developers appoint us because of our in-depth experience and expertise, and our relationships with highly qualified consultants.
Want to know whether you’re talking to a good feasibility study consultant? Ask about their local knowledge – buyer demographics, market values, neighbourhood character. Ask about the last permit they secured, or project they completed. Ask how they determine construction costs, assess site constraints, gauge Council responses, and assemble project teams .
We know the types and locations of property development projects that achieve the strongest profits. A lot of experience and research shows that profits vary widely from one suburb to the next. At a high level, much depends on the relationship between land cost, project scale, buyer demographics, and resale ceiling prices. The property development feasibility analyses that we provide means that you minimize your risks and maximise your profits through a streamlined development process.
Property Analytics specialise exclusively in low-rise residential property developments within Melbourne suburbs. We have completed and advised on 50+ projects over the last few years alone – from straight knockdown rebuild projects of single houses to dual occupancy, duplex, multi-townhouse, and land subdivision projects. We keep our focus narrow so that we can provide the best possible service based on experience. If you’re interested in apartment towers, commercial buildings, or projects in regional VIC or interstate – sorry, we’re not the
Are there site constraints, what can be built, how much will everything cost, and where will the gross realised value lie?
Don't simply buy an investment property and rely on price growth. Value-add through development.
Calculate site yields, design mud maps, assess market values, define all costs, sales, profits
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Someone who’s full time job involves studying real estate and uncovering important property market insights. We seek to understand the Melbourne property market conditions and trends, and future property market forecasts.
Our focus is predominately on the 400+ suburbs that make up the Melbourne property market. As Buyers Agents in Melbourne, we don’t purchase in regional areas or interstate.
Our primary focus of research is residential real estate, particularly the housing market in Melbourne. We only purchase houses, land and townhouses as Buyers Agents and Property Developer Advisors in Melbourne.
We provide graphs, maps and stats that explain the Melbourne property market to sellers, buyers and landlords – where are prices trending, how are auctions tracking, where are buyers coming from…
We’ve been specialist Property Analysts for over a decade, and have long-term subscriptions with all the most credible data providers: REIV, Core Logic, Pricefinder, Landchecker, ABS, RBA… A big part of our job is consolidating all property data to gain a comprehensive understanding of the Melbourne real estate market.
Our staff have a range of Certificates, Diplomas and Degrees in Business, Real Estate, Construction and Data Management. We are fully licensed Real Estate Buyers Agents, with the required professional indemnity insurance.