Founding Partner Michael Hryczyszyn (Developer) discusses his perspective on development stock, why there isn’t much property around and how the Blackwood team are looking at the horizon.
In the residential construction world its obviously impossible to build houses without land. The question is why is there a perception that there isn’t enough land around to fulfil the demand of house owners in SEQ? Well the truth is, there is plenty of land around. The challenge for developers is that this land is not really developable. Zoning changes, environmental constraints and various other overlays completely stop any development of the land – or at least depletes the viability of developing it. With there being a requirement for 6500 new dwellings across Gold coast per year, we are seeing this shortage considerably drive up the prices on properties.
Outside of affordability, there is the ongoing concerns of the volume of housing construction slowing down and how it could largely effect the amount of industries construction supports in our economy, making this a real issue that needs to be contemplated by local and state governments.
So what is Blackwood Building Company doing to maintain their supply of land availability?
Thankfully, we are very active in acquisition of our own and other developers land across SEQ and Northern NSW. Our strong relationship with land owners has allowed us to carefully select areas that aligns with our partners and clients requirements. However, there is a need from the consumer to consider the greater urban footprint and look to secure land in the outer master planned areas. Every suburb starts and has its growth. Being the early adopters (especially if price points are a consideration) has historically been where the gains are made.
Keep an eye on our news feeds, as we are working on some projects that we will share in the near future.