With a tightening funding market, higher interest rates, and rising construction costs, prospective purchasers require increasingly reliable and accurate data more than ever. Good data drives great decisions, and our in-house research team and Core’s recently launched, proprietary GRIP (Greenfield Research Information Platform) have been a major reason that Core Land’s campaigns continue to achieve market-leading results for our clients.
Driven by both a strong up-take in sales over the past 36 months, and recent state government announcements pushing more development to our established markets, available greenfield land supply across our key metro and regional markets continues to dwindle. This scarcity has seen the greenfield land market (particularly for landholdings within approved PSPs, or where the PSP has commenced) remain relatively stable, despite the softer conditions in the retail lot sales market. Whilst the average time it takes to transact landholdings has pushed out from 3 months to 5-6 months from the start of a sales campaign, the deals are still ultimately being completed at similar per-hectares rates to those in 2021 & 2022.
2023 has seen a significant rise in super lot transactions across all asset classes, with many groups having taken the opportunity to realign their delivery programme and divest non-core assets, including house & land, medium density, mixed use, town centres/commercial, and school sites. Buyer activity and interest across these uses has been incredibly strong, evidenced by our record-breaking transaction of the Orana Town Centre, with per hectare records also achieved off-market across several land lease and retirement transactions. Core Land has also facilitated the transaction of several Non-Government School Sites. We successfully aligned developers with reputable school providers enhancing the development amenity whilst also procuring exceptionally strong sales results for these super-lots.
This year, adapting to ever-changing market conditions was the key to our success in achieving market-leading results in development site sales.
With 2023 coming to an end, our Core Land Team caught up to chat about the top trends that have defined the market landscape.
Our team is already gearing up for plenty of on-market campaigns launching in early 2024.
If you are considering a sale in early 2024, now is the time to start preparing for a sales campaign. Please contact us today for a confidential discussion.