Every development runs on four decisions with time between them: buy, permit, build, sell. In a small strata estate, the two decisions you can't unwind - the unit mix and the price list - are made two to three years before the buyers arrive. That lag is where returns leak in a market like this one.
This is the September read for developers and site holders in Melbourne's small strata industrial market: estates of 20 to 80 units, sold to owner occupiers, SMSFs and private investors.
Three rate rises this year. Land values up, then eased. The SMSF borrowing change on 10 August. A run of new state taxes and planning changes. Anyone holding a site or planning an estate this year is making decisions on information that's already old.
You can't shorten the build. You can shorten the distance between what the market wants right now and what you know about it. That's what real time enquiry data does, and it's what this film shows in numbers, not theory.
Taxes and charges are 18 per cent of development cost in Melbourne, double Sydney, and that isn't going away. But the information has got better. And when the landscape moves this fast, better information is the only edge left.
If you're holding a site, or planning one, CVA will show you what the market is asking for in your corridor right now. One site. One page. One week.
Next month: the state's 10-year plan for industrial land, and what it means for the site you're sitting on.
This is general information, not advice. Before you act, get your own.
