An Overview of the Development Process Danielle Davison, Davison - PowerPoint PPT Presentation

An Overview of the Development Process Danielle Davison, Davison Advisory August 2019

• Focus on medium density built form • Tip - Look out for the sign • Buckle up – there's a lot to cover!

NOTHING ELSE MATTERS IF YOU CAN’T SELL IT

What we will cover: • Acquisition of a site • Design development and • Site selection approvals • Site identification and site constraints • Feasibility creation • Sales and marketing processes • Developing the site • Sales process and preselling • Development approval • Marketing and the mediums • Planning framework • Customer relationship • Procurement • Running a live project • Contractor and consultant selection

Site Selection and Acquisition 1. Site Characteristics • What to look for (location, amenity) • Understanding plot ratio & TPS • Yield, mix and size 2. Site Constraints • What are they? 3. Demographic Analysis • Who and what? 4. Feasibility • Margin on Cost • IRR • Return on equity

Approvals and Planning Framework 1. Development approval process 30% Design • Design review panels “DRP” • Required supporting reports • What’s an RAR report? • Whats a JDAP? - Opt-in JDAP vs Mandatory NOTE - Get a cost plan done BEFORE you submit for DA 2. Planning Framework • Structure Plans • Local Development Plans LDP’s • SAT Mediation

Procurement 1. Selecting your team • Key consultants • Lead consultant 2. Contractor Procurement Types • Early contractor engagement/Involvement “ ECI ” • Standard tender process • Pros and Cons

Design Development & Approval 1. Building Permit (70% design development) • Self Certification • Council Assessment • Building Certifier 2. Tender Timing 3. Finance Considerations

Sales and Marketing Processes Write a sales and marketing plan – not the same as a budget. 1. Sales • Pricing • Benchmarking – sold, on market and comparative spend • Contracts • Preselling and completed stock – difference • Competitor Analysis • Sales team selection and structure • Buyer incentives

Sales and Marketing Processes 2. Marketing • Timing (preselling construction, and completion) • Channel marketing • Medium Marketing • Understanding the demographic • Emerging trends • Monitoring and analysis of cost per lead Know the difference between lead generation and lead nurturing

Construction Completion and Handover Inspections x 2 Running a live project Occupancy Permits Strata Set Up Titles Settlements Residents Occupy

Key Takeaways: 1. Nothing else matters if you can't sell it. Design, Location and Price are King. 2. Demographic Analysis – know who you are selling to and what they want. 3. Get a cost plan done BEFORE you submit for DA. 4. Write a sales and marketing plan, then FOLLOW it. 5. Know the difference between lead generation and lead nurturing.

Got a burning question? Danielle Davison danielle@davisonadvisory.com.au www.davisonadvisory.com.au