Research -> Property development and renovation
Property development is a business process to gain profit by improving the use of a parcel of land or the existing structure on that land. The activities that can be categorised as property development includes but not limited to property renovation or extension, land subdivision, house construction, etc. The property developers manage the business process, which can include property market analysis, development strategy proposal, land or property acquisition, contract management, finance arrangement, marketing and sales service or property management service procurement, etc. Property developers are different from builders, although some developers do manage the construction process.
A property developer’s aim is to maximise the profit while undertaking minimum risk. The key role of a property developer includes:
- Property market analysis and predicition
- Property development strategy proposal and execution
- Project feasibility study and risk management
- Service procurement and contract management.
There is no qualification requirement to be a property developer. In Melbourne, the entry barrier to become a developer is relatively low. Anyone with a certain financial capacity can become a property developer. However, inexperienced developers quite often make various mistakes or errors during the whole process, which can compromise the profit significantly.
In recent years, there has been a significant amount of fund and personnel entered into the property development business. Based on our observation, a large portion of them still follow the trial-and-error approach. Lots of the inexperienced developers experienced loss in their projects. Even some experienced developers still make mistakes in their strategic planning.
Real Estate Logic invests its resource in the strategic planning component of the property development process. This covers property market analysis and predicition, products selection, project feasibility study and risk management. Our advice help developers avoid the major mistakes.