Kingsford Direct regularly works closely with many developers, architects, project managers and property professionals at various stages of the development cycle. As a result, we have had many conversations lately around the decision to build or hold.
So is it a yes or a hold?
The market is in, if not unprecedented position, a rare state of flux. But, like anything, there are ways to find the advantages and work with the current state of things. In times past, this kind of question might be best answered with a feasibility study or work with a financial forecaster, but in recognising the volatility of the market, that it’s changing and moving faster than the analysts can keep up with, approaching Kingsford Direct is a step in the right direction.
While the market stalls, Kingsford Direct has seen continued sales and watched as their properties, under their advice, have succeeded where others haven’t. Call it boots on the ground, a nose to the grindstone, call it what you will; Kingsford Direct can recommend developers if they should build or wait, depending on the market and their personal circumstances.
“Today’s buyer is intelligent, sophisticated and savvy. They’re hyper-aware of the market and their own needs, but if nothing else, they know what they don’t want.”
– Sonia Fava, Director.
We never suggest pushing the low-quality stock, but in buoyant markets, we have seen all kinds of properties become available. But as we see in this market, for those looking to eliminate risk, lining up their needs and wants with a buyer is crucial. Ensuring that their product offering is on point can be a game changer. Our experience shows that people are still happy to buy and spend on the right product.
When speaking with a builder, Kingsford Direct will talk about and assess:
- The accommodation mix. Does it need to be reconfigured?
- How pricing can be set and maximised
- Advice on how you can manage existing and upcoming uncertainty
- Your financial situation – on the project and the market
“People are happy to buy and spend on the right product; meeting the market with the right options can turn something around. There are a lot of opportunities out there for the right developer. It just needs reassurance and the backing of a solid, quality product.”
– Martin Russell, Director of Kingsford Direct
Martin considers some of the most essential factors in a volatile market that can closely impact the success of your project and breaks them down for us:
- Suitability of the product/market, and always encourages our clients to back the product to the needs and wants of their target market
- Pricing, which is not only determined by nearby properties or supply/demand but also the quality you enhance
- Promotion, which involves a customised mix of traditional and innovative marketing opportunities
“The golden rule is, once you get the first one right, the second one follows, and Kingsford Direct can help you every step of the way”, Martin explains.
Sonia Fava is abreast of the market and notes that “there certainly is a supply issue around good quality investor stock, due to developers holding still. If your product can cater to investors with a real point of difference, the decision to build or not to build would be based on your target market, your situation and expected return on investment. During a time of scarcity, creating valuable opportunities for investors can be a strong option to consider.”
After all, one of the best things about going to market is the point of difference. If a builder can offer a suitable project and meet the demand with a solid product in a time of want, there is no reason to hold off. Ultimately, there is no one answer to the question of whether to build or not. And at Kingsford Direct, we will never advise everyone to do the same thing, as it’s a disservice to our clients, buyers and the community.
Listening to our client’s needs is the only way to develop a product that will produce results in all markets. By engaging our team and consulting with our experts, we can assess and advise on your next building project to achieve the results that you truly desire.
Contact Sonia Fava or Martin Russell to get started.