MAXIMISING SALES AND REDUCING SETTLEMENT RISK
Today’s property market is ever changing and more and more developers are employing innovative approaches to boost sales and reduce settlement risk. For many property developers, property marketers and investors, settlement risk is top of mind in today’s market, with many professionals looking for a way to mitigate the risk before it becomes an issue. Settlement risk puts pressure on the developer to sell the property at potentially a lower price, which not only devalues that specific property, but could impact the entire development. Devaluing the development can increase the risk of subsequent settlement failures. This flow-on effect impacts all facets of the property market.
Marc Conias, Managing Director and Founder of leading furniture solutions provider PPS Tailored Furniture Solutions (PPS), says that to strengthen sales and mitigate settlement risk it is important to have a clear understanding of the intricacies of buyer and seller motivations.
“People are not looking for a cookie cutter approach to a property, in today’s market, they are now looking for individual and unique solutions,” Mr Conias said.
“PPS has worked on a number of developments who faced minimal issues with settlement. Why? Because the marketing for the project capitalised on and emphasised its unique qualities and offering to buyers and investors.”
Mr Conias also said investors and owner-occupiers alike unanimously seek out three key considerations when looking for a new property:
- Location – Is it close to work? Public transport? City life? Is it close to key amenities? These are things not only homeowners are looking for, but investors should consider when renting out.
- Lifestyle – Does this fit in with the potential buyer or renter’s lifestyle? i.e. if the occupant is a corporate tenant, would proximity to restaurants bars and proximity to the CBD be an important factor?
- Design – Is the design unique? Does the property tell a story? Does it have all necessary amenities? High quality developments that have a main point of difference will win with savvy buyers and investors.
“Buyers and investors immediately look at the quality offering of the development, finishings, size of the apartment and the view, essentially what the point of difference is,” Mr Conias said.
“They will also consider two other key elements: First and foremost, property yield and a close second being potential future capital gain for the investment they’re purchasing.”
Mr Conias said the property market has become increasingly challenging and developers need to employ new tactics in order to incentivise potential buyers and show the benefit of what each property has to offer.
“We have seen that by providing full turn-key furniture packages to property owners and investors of quality inner city apartments, PPS are assisting to create an immediate return on investment through both higher occupancy and increased rental returns.