Site Acquisition & Financing

#42 Live Panel: Site Acquisition & Financing with Bill McWilliams, MaxCap and Mark Wizel, Wizel Property

The Urban.com.au Market Insights Live Event recently featured a compelling discussion on the evolving dynamics of the real estate market, particularly focusing on the perspective of the off-the-plan buyer in 2024. Hosted by Urban.com.au CEO Mike Bird, the panel included insights from industry experts with Bill McWilliams, MaxCap and Mark Wizel, Wizel Property. Here's a breakdown of the key points discussed:

Limited Site Transactions: Over the past year, there has been a scarcity of site transactions due to challenges in feasibility caused by escalating construction costs. Developers are focused on finding ways to develop existing sites rather than selling them.

Financing Options: To support developers, some financiers are offering backing for projects with low or even no pre-sales, particularly in areas facing high demand and with the right sponsors.

Market Challenges: The residential development market faces challenges in pricing, with concerns about affordability and the viability of smaller residential projects. There's a need for larger-scale projects to meet housing demands effectively.

Capital and Financing: While there is strong appetite for investment in credit, there's still a need for projects to stack up financially. Non-bank lenders are playing a role in supporting developers, but there's also a growing presence of bank capital, providing more flexible financing options.

Supply and Demand Dynamics: There's a discussion around the imbalance between supply and demand, with suggestions that changes in interest rates could help stimulate demand. However, there's also a call for incentivising buyers, potentially through stamp duty savings and other measures.