Property & Property Development
Trident Financial Group is highly specialised in the property and construction space, allowing us to service a range of large or small property developers – from residential and commercial to large projects to investors and businesses.
Australia’s property development market has been wrought with commentary about foreign investment surges, particularly from countries like Malaysia, China and Singapore. Market fluctuations and changing regulations can be challenging for property businesses.
Asia Pacific investors bought Australian property worth over $3.8 billion, sustaining the high levels of foreign property investment in the country. The office market space accounts for nearly 70% of this investment. Office developments in Sydney’s Barangaroo and Melbourne’s Docklands have added to medium-term supply, which has kept rental growth low. But office yields remain stable at around 6% due to demand from international and institutional buyers for prime investment property.
Key Factors Influencing the Industry
- Low interest rates have led to increase in demand and rising property prices. As interest rates normalise, increased borrowing costs will lead to tapering demand.
- Tougher controls and review of FIRB restrictions are in the process of being implemented to prevent avoidance tactics implemented by foreign investors.
- Labour and material costs continue to rise for property developers, and are expected to continue.
- Banks and lenders are implementing tougher credit approval measures for developers and investors, along with a requirement for higher levels of equity.
Factors to Consider
Delays expected in a development project and you are unlikely to be able to pay your debt facilities by the date of maturity. How can you maximise your property portfolio value?
Trident Financial Group has first-hand knowledge of the complexities and issues related to property development and can conduct strategic reviews for all projects. We can assist you establish a robust framework for project management, while helping you negotiate a strategy with your financiers to achieve the best results for all parties involved.
You have insufficient funding for your development project? What can you do?
We understand how dynamic the property development page-item is with several factors affecting budgets and profitability. We undertake an ongoing feasibility analysis to provide our clients with strategic advice. Our experts have long-term relationships with equity and debt providers, allowing us to assist you with acquiring mezzanine or senior debt, along with options in the equity raising markets.
Are you better off holding or selling?
Our property specialist team offer pre-sale due diligence, sell side assistance and transaction support for all jobs – big or small.