You can nail the site, the numbers and the build, and still come unstuck if the market does not want what you have made. Effective market research is how you make sure the end product matches real demand, and it is one of the most overlooked steps in property development.
Why research the market first
Development is ultimately about giving buyers or tenants what they want in a location they want it. Research tells you whether the demand is there, who the buyer is, and what they will pay, so you design for the market rather than for yourself.
What to actually research
Look at recent comparable sales, current supply and competing projects, the demographic and buyer profile of the area, rental demand if you are holding, and the direction the suburb is heading. Signs of growth, new infrastructure, shops and amenity all tell a story.
Know your patch
Some of the best developers deliberately focus on two or three suburbs and become the local expert. When you know a patch deeply, you can spot a good deal fast, price it accurately, and move with confidence while others are still guessing.
Match the product to the market
The research only pays off if it shapes what you build. The right number of bedrooms, the right finish, the right product type for the area, these come from the market, not from a hunch. Build what the area wants, and selling becomes far easier.
Related reading: Why Due Diligence Makes or Breaks a Property Development, Financial Feasibility in Property Development: The Number That Decides Everything
Listen to the full episode
We covered this in episode 188 of the Property Mastermind Podcast. Listen here.
Ready to learn how to run a development from finding a site through to settlement? Join our free masterclass, or come along to our 3-day Gold Coast workshop.