Red23

Happy Holidays from all of us at Red23 With the holiday season here, it’s a natural time to reflect on the year gone by. 2024 has brought its challenges to our industry but it has also shone a light on our resilience, our ingenuity, and the value of our enduring partnerships. Working in this industry is a privilege. We get to help people realise their dream of home ownership. And we get to turn paddocks into thriving communities. When we speak to our team, that’s the reason they continue to go above and beyond what’s expected every day. Thank you to every member of the Red23 team for your brilliant work in 2024. To our clients, partners and colleagues – your trust and support have been the cornerstone of our success for the last 17 years. Thank you for helping us navigate the challenges and make the most of the opportunities 2024 had to offer. We closed our head office at 5pm today and will be back on Monday 6th January 2025. Until then, stay safe and enjoy a wonderful break.

It’s been another challenging year for the property development industry. As we come to the end of 2024, our Managing Director Terry Portelli is sharing his reflections on the year that was.

Our Market Reset series has delved into the challenges and opportunities faced by the urban planning and construction industries. This month, we’re chatting to a leading valuer, Yong Lim, about how industry and government can kickstart development projects in the face of multiple challenges.

Red23 has been involved in medium density developments since 2015 when we partnered with Salter Brothers on 116 townhomes in Keysborough.   Salter Brothers engaged Red23 right from the start of the project, when the site was being rezoned for residential use. This early involvement meant we could use our expertise to determine the best product mix and design: 👉 40% of the stock included 2 bedrooms plus a single garage, 20% included 3 bedrooms plus a single garage and the remaining 40% included 3 bedrooms and 2-car garages. This ensured that the development had suitable options for a range of buyers including first home buyers, young families, professionals and downsizers.   👉 A high percentage of the stock included private open space instead of balconies which differentiated the development from competitors while escalating prices.   👉 A central park within the development provided a fantastic outlook for many of the homes.   In the lead-up to the launch, we contacted all our previous purchasers in the area and offered them exclusive access to the plans. This contributed to all 26 townhomes in Stage 1 selling out on the opening weekend in 2018.   If you’re wondering when to get us involved in your property development project, Keysborough Townhomes is a perfect example of – the sooner, the better.

Looking for a great way to wrap up 2024?   Red23 is proud to sponsor an end of year event with a difference. The Urban Developer Long Lunch brings together some of Melbourne’s most prominent property development experts to unpack what’s really happening in the market.   It's about sharp perspectives and forward-thinking strategies to shape a successful 2025.   You’ll learn how to navigate current challenges and leverage emerging opportunities while connecting with over 300 industry peers.   The Urban Developer Long Lunch presented by Superloop Date: Thursday 28 November Time: 11.30 am - 3.00 pm  Location: Carousel, Melbourne   Includes networking drinks, panel discussion, two-course lunch plus prizes and giveaways.    This event has sold out quickly in the past two years so secure your spot today. Booking link in comments 👇

Market Insights: Buyer types and trends in Melton This month, our Research Development Manager, Hoang Vo-Tran is looking at buyer data for the City of Melton including what's shifted over the last two years and what's stayed consistent. 👇👇👇

If you read our September interview with Nick Hooper, you’ll know that we’re focused on how we can propel the property development industry forward. The market is tough but not everything is out of our control – innovative sales strategies, data-driven pricing and advocating for reform can pave the way for future growth. It all starts with a conversation.   This month, we’re chatting with Simon Mandragona, General Manager of Sales at AHB Group Australia, the second largest builder in Victoria. With 25 years in the property industry, Simon has experienced the highs and lows but he’s never seen a market quite as challenging as the one we’re in at the moment. While Simon believes a shift is on the horizon, he says it’s time for the government and lenders to step in and remove the barriers to buying.

Today we’re looking at how buyer types and trends have shifted in the City of Whittlesea over the last few years. Whittlesea includes the suburbs of Wollert, Epping, Mernda and Fawkner as well as Melbourne’s CBD. Now: 49% owner occupiers (upgraders) 32% renting In 2021/2022: 60% owner occupiers (upgraders) 21% renting This indicates that owner occupiers are holding off buying due to higher interest rates and increased building costs. They’re likely deciding that upgrading their home is not worth the risk. It’s safer to stay put and wait until prices in the established market start to increase. Now: 23% family households 77% couples 92% yet to have children at school In 2021/2022: 25% family households 75% couples These numbers have stayed pretty consistent over the last two years. Now: 44% first home buyers 9% second home buyers 47% investors In 2021/2022: 36% first home buyers 13% second home buyers 44% investors It’s also interesting to note that 58% of buyers have an annual household income over $103,950 – up from 39% in 2021/22. This is due to more couples buying together and fewer people buying on their own. With current barriers to obtaining finance along with cost of living pressures, people with low to middle incomes simply can’t afford to purchase. The key things buyers are looking for in a Whittlesea land estate come as no surprise. Buyers prioritise location, affordability, size and investment potential. These drivers have remained consistent over recent years. Let us know which area you’d like us to profile next.

K1 Residences: Luxury living overlooking Albert Park Lake We are proud to introduce K1 Residences – an exquisite collection of 13 apartments overlooking Melbourne’s prestigious Albert Park. These luxurious apartments enjoy uninterrupted views of the city and Albert Park Lake – Melbourne’s favourite spot for a walk, run, row or coffee. Each floor features a single expansive apartment with a lift transporting residents directly to the entrance of their home. Inside they’ll enjoy over 180m2 or architecturally designed living space that perfectly balances aesthetics with functionality. Four bedrooms and a short walk to Wesley College, one of Australia’s best independent schools, make these apartments an ideal choice for families. Buyers will also enjoy low body corporate fees and easy access to public transport. We are delighted to be partnering with Optimus Developments on this outstanding project expertly brought to life by ASPECT Studios, Bergman & Co, Hamilton Chase, Kavellaris Urban Design, Cobild and Tomassi & Co. Book your private inspection today by calling Red23’s Melanie Rowe on 0482 818 181 or Danny Ruan 0404 694 817.

🏠 House & Land vs Established House: What’s the data telling us? There’s a lot of talk in the industry about the established market outperforming house and land. In a tough market, established homes are often viewed as a safer option for buyers because they can be occupied right away without the worry of construction costs and potential delays. There are also clear advantages when purchasing house and land. Buyers are able to customise the home to their needs and achieve a higher energy rating with lower running and maintenance costs. With affordability a key priority, what do the numbers tell us? ➤ The average cost of a house build in Victoria is $327,475. ➤ The total house and land price in the greenfields areas can start from $715,811 in an affordable suburb such as Beveridge and reach almost $870,000 in more expensive suburbs such as Greenvale and Botanic Ridge. ➤ With the land component of the total cost averaging between 50 per cent and 62 per cent, Mitchell Shire is the most affordable with the Casey and Cardinia Shire having the most expensive median land price. ➤ In areas like Mitchell, the cost of house and land is below the median house price with a price difference of $28,411. In most municipalities, the cost of house and land is higher than the median house price. But we’re not comparing apples with apples. You do need to look at the type of established homes in the suburb. Case in point – Hume. In Greenvale, it’s more affordable to build a home because it has a higher median house price due to its location and the quality of homes. In Sunbury, it’s more affordable to buy an established home because the homes are dated and tend to be smaller. At Red23, we’re continuing to focus on residential land development while expanding our focus on apartments and townhouses to leverage every market opportunity. See table of cost of house and land vs unit price vs house price in comments 👇