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Property development remains one of the best ways to achieve capital growth. However, much like anything in life, it requires careful planning and thought.
The development process comes with an endless array of decisions that are far from black and white. Often, these decisions don’t have a clear "right" or “wrong” outcome. This is why it's so important to lean on the practical experience and expertise of a property development project manager.
Throughout this piece, we’ll cover what a property development project manager provides, as well as how they are able to save you significant time and money.
First things first, the property development project manager's fundamental role is to oversee the planning, execution, and completion of real estate development projects, making sure that they stay on schedule and within budget. They’ll also coordinate with architects, contractors, and local councils to manage approvals, design, and construction processes.
Other critical aspects of their role include financial planning, risk management, and verifying compliance with legal and environmental regulations. Ultimately, they are responsible for delivering high-quality developments that meet market demands and investor expectations.
It's easy to get caught up in the excitement and dream of a brand-new development. Sometimes these opportunities seem too good to be true–and sometimes they actually are. So, how exactly can you spot what’s real and what’s riddled with risk? The answer is a detailed feasibility analysis.
While each project has its own set of unique circumstances, a feasibility analysis will generally cover the following:
Remember, just because you can develop a property doesn’t mean that you should. In our experience, only approximately 1 out of 10 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.
Head here to learn more about the importance of a feasibility analysis.
Before they begin to liaise with consultants and coordinate various aspects of the project, your property development project manager will be able to assess the situation from a commercial standpoint. In an ideal situation, they’ll use key data to evaluate buyer demand, demographics, and trends in the local market.
At this stage, they may carefully look into how much everything will cost, where the gross realised value lies, the potential for price growth, and various other financial aspects that may impact the development as a whole.
Ultimately, this commercial lens is all about determining whether or not the project is profitable and worth your investment. This viewpoint applies to everything from new home sites to building for rent and developing for profit.
Want to find an investment opportunity with serious returns? Reach out to us and connect with the leading property development consultants in Melbourne.
So many stakeholders and consultants are involved in even the smallest development. A property development project manager is essentially the go-to person for keeping everything on track. They also utilise their existing relationships with key consultants like architects, town planners, engineers, and builders to smooth out the process. Thanks to these connections, the project manager can make decisions quickly, tackle any issues that come up, and keep things on budget.
A good project manager is always thinking ahead, spotting potential risks before they become problems. And, of course, they make sure everyone involved is in the loop, keeping communication flowing so that everyone is on the same page.
Evaluating early development plans is one thing–but negotiating these plans and obtaining approval from the local council? That’s another ball game entirely. The good news is that when you partner with an experienced property development project manager, this should be well within their wheelhouse.
When council approval is needed, this requires the input of a wide variety of planning permit consultants; such as surveyors, arborists, architects, drainage engineers, traffic engineers, town planners and several others. Incomplete or ill-thought applications are simply not entertained by councils, and this is where your project manager can offer critical assistance.
Local councils are the governing body responsible for evaluating potential developments and issuing final planning permit approval. However, even after planning permits and building permits are attained, there can be many other instances where the project manager will need to liaise with the local council again.
Read our recent article to learn all about ‘What to Expect from a Planning Permit Consultant’.
A solid tender package can really make or break a project, and they must be both well vetted and fully qualified to handle the job.
At this stage, your property development project manager will work to create a detailed and clear package, including a fixture and fittings schedule. This means that you’re receiving accurate, apples-to-apples comparisons from different builders, so you’re not left guessing what’s included in each quote.
They’ll also tap into their extensive network, bringing together a panel of qualified, trusted builders for the tender process. These professionals are hand-picked for their experience and reliability, so you can rest easy knowing the right people are bidding for your job.
Finally, the project manager will use their experience in value management to help you get the most bang for your buck. They’ll guide you through the process to ensure you’re not just getting the lowest quote, but the best value overall, balancing cost and quality for the long-term success of your project.
Residential Development Trends in Melbourne
As we covered in a recent article, Melbourne is currently grappling with a supply-demand issue in which the supply is struggling to keep up with demand. Let’s take recent data from the City of Melbourne as an example.
In the financial year of 2023-24, the number of total residential building approvals was 1506, markedly lower than the total of 4,827 in 2019-20 and 8,929 in 2014-15 (Source: City of Melbourne).
With less development opportunities available, this only underscores the importance of well-chosen investments even further.
Doug and Xena, successful medical professionals, were keen on expanding their property portfolio with value-add opportunities. We understand that medicos can secure 90% LVR financing and prefer investments that reduce tax exposure, such as negatively geared properties.
They were drawn to a property in a vibrant suburb, with friends nearby and a promising future. Located in a flat zone with dual street frontages, the site had strong potential for future development. After assessing it, we determined the property was underquoted at $1.80m–$1.90m, with a true market value closer to $2.1m.
The agent, representing a deceased estate, was open to a clean offer of $2.0m, avoiding an auction. After just two weeks on the market, we secured the property before many others had a chance to inspect. Doug and Xena are thrilled with the purchase and are feeling confident in its future prospects.
Every single development project is different, and there’s something to learn from each one–even for seasoned project managers. When you’re faced with 100+ decisions, it can’t be understated how important it is to surround yourself with experienced professionals.
As you can see, a property development project manager provides crucial input and assistance in so many areas. Of course, they’ll also be working in your best interests, as well as applying their knowledge of the trade to help you uncover the best investment opportunities.
At Property Analytics, we combine industry-leading data with years of practical project experience to help our clients achieve meaningful capital growth. From property investment to real estate development, buyer advocacy, and more, we’re here to help you put the best foot forward.
Contact us today and take the first step.
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