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Regional Snapshot: AUSTRALIAHow the Australian Property Development industry is responding to disruption and
rapidly-changing market pressures
36% 72%
Cross-Border Trade Policy will have a
NEGATIVE IMPACT
Millennial Expectationswill have a
POSITIVE IMPACT
82%42%
Public Infrastructure will have a
POSITIVE IMPACT
Transport Technology will have
NO IMPACT
The millennial generation - the largest ever born - are experience-hungry and endlessly curious. Their desire to be constantly stimulated, entertained, and locally-connected is radically changing the face of retail. As a result, I think we’ll see a move back to town centres that function as the social heart
to the community, with a mix of local retailers, fresh food markets, essential services, eateries, and entertainment, layered in with the flexibility to activate unique events and experiences that will keep
people coming back for more. We call this the ‘super-neighbourhood’ model - a place where meaningful connections with friends and lasting memories are made; not just a place where shopping is done.
— Joanna RussellGeneral Manager, Retail Development, Frasers Property Australia
Perceived Impact of
EMERGING TECHNOLOGY ON DEVELOPMENT
Getting Smarter with
DATA AND ANALYTICS
PRE-FAB58% Building Pre-fabrication will create major disruptive changes
3D PRINTING66% 3D printing will have minimal impact
CONSTRUCTION SITE ROBOTICS40% Construction site robotics will create major disruptive changes
CONNECTED JOB SITES64% Connected job sites will have minimal impact
87%
see signifcant potential to conduct more extensive benchmarking on CONSTRUCTION COSTS
82%
see significant potential to conduct more extensive benchmarking on PERFORMANCE TO BUDGET
Degree to which respondents are planning or considering traditional bank financing in the next 3-5 years
Degree to which respondents are planning or considering alternative financing in the next 3-5 years
Percentage of respondents who believe
TRADE AND LABOUR SHORTAGES will present a significant challenge over the next 5 years:
How developers see market forces
IMPACTING THEIR DEVELOPMENT PIPELINE
Development financing and the
RISE OF ALTERNATIVE LENDING
Currently Using
52%
Currently Using
87%
Considering Planning
31%
Considering Planning
13%
Not Considering
17%
Not Considering
0%
TRADITIONAL BANK LENDING ALTERNATIVE FINANCING OPTIONS
The overwhelming force impacting Australian developers at present is the continued pull-back of the major banks from new investment and construction lending. As a result, what we’re seeing in the
marketplace is a triple threat: less credit, more expensive credit and more stringent pre-conditions for credit. What is starting to emerge is a nascent ‘non-bank’ credit market, however the impacts of the retreat of the major banks is still being washed through the system, while the non-bank lenders - such as private
lenders, hedge funds and family offices, for example - are yet to pick up the slack resulting in an impact on market liquidity not seen since the GFC.
— Adam Di MarcoFounder & Publisher, The Urban Developer
of Australian Developers are considering Joint Ventures citing the top 3 drivers for JV’s and Partnerships being:
MIXED USE OPPORTUNITIES
GREATER INVESTMENT RETURNS
TEAMING OF COMPLEMENTARY SKILLS / DISCIPLINES
36%
28%
48%
25%30%
35%
23%
Latin America AsiaEuropeUKAustraliaUS Canada
Compared globally, Australian developers see the most benefit in better construction and development cost data
62%
REAL ESTATE DEVELOPMENT TRENDS REPORT
WA 48%VIC 71% QLD 67% NSW 65%
[email protected]/global-real-estate-development-trends-report
74%of Australian Developers said
GOVERNMENT REGULATION has a high impact on their
volume of activity in market