With the Sydney property market beginning to show signs of slowing, savvy property developers should consider adopting a site acquisition strategy that targets suburbs with a strong demographic story and supportive high-density planning controls, states a new report from JLL.
Vince De Zoysa, senior research analyst at JLL, and Tyrone Hodge, head of institutional and middle markets, valuations and advisory at JLL, told developers to look at opportunities in the North Shore, where demand is being driven by an aging population and downsizers, as well as the Inner West, where demand is being driven by millennials.
“Increasingly, developers will focus on strategic acquisitions in these suburbs as the market softens and site values fall,” they said.
As the Harbour City’s demographic composition continues to change, property developers have the opportunity to capitalise on these changes via strategic site acquisitions.
“Such strategic acquisitions will become increasingly important as we move towards the downturn phase of the cycle in the Sydney residential market,” Zoysa and Hodge said.
With New South Wales undergoing a major multibillion dollar infrastructure boom, it’s vital that supportive planning controls around transport hubs become accepted as part of the planning discussion.
“Demand for sites in well-located suburbs around transport hubs is holding site values steady. Therefore the opportunity lies in perfecting a strategic site acquisition strategy to maximize revenue. Savvy developers who target suburbs with a good demographic story, supportive planning controls, and a modest supply pipeline are likely to come out on top.”
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