How to get consent for your development in 6 to 8 weeks

The consenting process doesn’t need to be a headache. This quick guide outlines our unique approach to the consenting process that gets a quick, successful outcome – every time.

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The Difference Between A Buyers’ Market And A Sellers’ Market

As the media continues to report on a daily basis, the property market in Auckland, and some parts of NZ, has shifted slightly from a sellers’ market to a buyers’ market.

We often hear of the potential horrors that could follow when markets shift and plenty of buzzwords get banded around to warn people of the near impending apocalypse.

While a shift to a buyers’ market does have some impact on house prices and property development overall, it is important to understand that opportunities still remain strong for those that think outside the square and plan correctly.

When the property market shifts to a buyers’ market this does not necessarily mean that all buyers have disappeared, it simply means that the type of buyer has changed.

Typically within a sellers’ market, you will see high demand for:

  • Large landholdings
  • Properties selling within the inner-city areas where values are higher; and
  • High-end housing.

The bulk of the purchasers are made up of developers, property investors and ‘up-sizers’ (those waiting to upgrade their existing home and move into a bigger home closer to the city).

When a buyers’ market hits, the type of buyer changes and we begin to see the rise of first home buyers or young professionals looking to purchase a new home.

These were the buyers that often never stood a chance in a sellers’ market. They take their time raising deposits and making decisions, so seller market auctions etc… – don’t really suit them. They actively hunt for affordable properties that meet their budget and expectations and are often happy to live a little further out from town in locations with good public transport.

So, the burning question is, what are the opportunities for developers in a buyers’ market?

Well, it is clear from the above that the key to developing in a buyers’ market is ensuring you have the right product for the right buyer.

Developing products in the ‘affordable housing’ bracket in areas slightly further out from the inner-suburbs, for example, will increase buyer demand. Often these developments can be medium to high density terraced or duplex developments where the balance of land value, unit size and construction cost provides a healthy end margin and works for all parties.

The ‘get in, get out’ mantra subsides somewhat in a buyers’ market and thinking outside the square and taking your time to get the right product becomes more critical to ensuring the success of your development.

One final thought on this, while there are still opportunities for developers in a buyers’ market, it is vitally important to have a back-up plan or Plan B. The back-up plan should always be and the question you should always ask yourself is – “in the event my product does not sell, can I hold all or most of my product for rentals?”

At TDC we often work with our clients and encourage them to think outside the square. We work closely on project delivery to ensure it suits the market and is a viable project and we have great fun doing it.

The above is just one example of this. So feel free to drop us a line with any questions – we’d be more than happy to help.

 

Bayard McKenzie has over 15 years of planning experience for private and government organisations. He is the founder of The Development Collective – a revolutionary property development service that supports developers through the entire process from consent and design through to completion. Contact Bayard<

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