Knowing Where to Build as a Developer

Before commencing development, there’s a list of things to keep in mind when deciding on a location. 

For general developments, there are a couple of general guidelines to go by. 

Consumer needs  

The consumer’s needs should be one of your top priorities. As a general guideline, amenities are a huge plus. Properties close to schools, shops, public transport, and hospitals are always in hot demand. Industrial areas or neighbourhoods with high crime rates score lower on the list and are likely to take longer to sell. 

Hospitals 

Keep an eye on new hospital developments. There is a huge need for workers in these areas – if the property is located 1-2km from a hospital, tenancy levels are likely to be higher. 

Soil quality  

The quality of the land itself may affect the stability of the structure down the line, so performing soil tests is essential. Also consider what is already on the lot. Is it empty, or are there trees or existing structures that need to be demolished before commencing development? 

Price, too good to be true? 

Got your eye on a property that is advertised below the market price? There’s usually a reason for this. Chances are the property is in an unfavourable location, or the lot itself needs extra (often costly) work before development can commence.  

Natural disasters  

While the risk of bushfires and flooding can’t be avoided entirely, certain areas are at higher risk. It is in your best interest to develop in a low-risk area, as properties in high-risk areas are harder to sell or rent.  

For build-to-rent developments, these properties thrive in areas that have something to offer. Great examples include developments happening in CBDs or near major shopping centres, such as Bankstown Central in Sydney and Chadstone Shopping Centre in Melbourne. Once you venture further than 15km from a city’s central business hub, these developments are unlikely to work as effectively unless they have something on offer. Think convenience, culture, and entertainment, in addition to researching what the younger build-to-rent demographic wants from a property. 

It is near impossible to find an area that ticks all the boxes. There is no perfect site, though these are some things to keep in mind as you search. Thoroughly research the type of development and area you are considering, and let the outcomes guide your decisions.