Sustainable Property Development
From:
Andrew Groom
Date:
Jul 31 23:37 UTC
Short link
Hi Joe,
On Fri, 2008-08-01 at 10:50 +1200, Joe Colgan wrote:
> Building owners/developers are faced with costs that make the proposal
> return less than could be gained by leaving monies deposit, they are
> mindful of the need to return a profit and maintain their business and
> the funding difficulties and risk premium placed on undertaking
> refurbishments with the inherent unknowns that accompany such a venture,
> force them to seek easier, more fundable, lower risk options and often
> demolition and new build is the obvious one. That or find a greenfield
> site.
Thanks for that. I can completely understand that you need to make a
buck and that, e.g., greenfield development is far more profitable. I
suspect that the root of the problem is that zoning rules are forcing
you towards greenfield development so that the Council can generate more
rating revenue. However, surely the increased infrastructure costs and
traffic congestion offset this ?
My major concern is that increasing fuel costs are going to make living
in new subdivisions much less attractive in the near future, but that
we're still cranking out homes in the "asteroid belt" that people will
soon be less inclined to buy. This trend is playing itself out in the
US:
http://www.newsweek.com/id/144114
That must be concerning you as a developer ? Where do you think that
trend is going to head and what are the implications for your industry ?
.