The last ten years have brought huge changes for Australian property developers and investors. And it’s set to continue too. The rise of technology in the sector, changes in buyers’ and renters’ attitudes, and a housing crisis looming closer each day are a few of the factors influencing these changes. Build to Sell (BTS) developers in 2024 will do well to pay heed to the trends playing out. It’s worth keeping one eye on BTR trends for 2024 too.
These days, people looking to jump on the property ladder want something quite different to a family home on a quarter-acre block. Urban living is coming back to the city. It’s a change that buyers from all demographics are getting excited about. That’s because BTR and BTS developments are making convenience, connection and cultural accessibility a reality. Read on for our top 5 BTS developer trends to watch in 2024 so you can cut your slice of the action.
#1 BTS developer trend: A rise of mixed-use developments
Mixed commercial, residential and recreational developments used to be somewhat of an oddity in Australian and Asian property markets. That’s partly to do with local laws, council zoning stipulations, and societal expectations for living in one locale and doing business in another. Now the idea of hybrid working styles is spreading to other facets of living.
Laws are being changed in different parts of the world to accommodate this shift. BTS developers are obliging markets with exciting mixed-use developments. And councils are taking a renewed interest in mixed-use developments because they provide unique opportunities to reinvigorate and regenerate urban areas.
It’s a win-win solution for all. Developers get to diversify their investments. Councils can lift local economies and downtrodden urban areas with exciting opportunities that appeal to a wide range of demographics. And buyers get unique investment opportunities with strong appreciation potential.
#2 BTS developers will switch sides
The Build-to-rent (BTR) sector is gaining momentum in Australia and the Asia Pacific Region. While BTR housing stock accounts for more than 5% of all residential properties in the UK and US, the APAC region is in its infancy — less than 1% of housing stock is BTR. That’s set to change this year and it’ll change fast.
BTR developments are gaining traction with targeted government incentives, resident and investor interest, and a shift in ideas about what an ideal home is. Older homeowners, families and young professionals are showing more interest in BTR communities than purchasing a home to own. These factors will continue switching up the property development landscape for the next five years or more.
In response to this, many BTS developers are flipping their strategies from BTS multi-unit construction to BTR. From central Brisbane to Shanghai, BTS developers are finding the grass is greener on the BTR side of the fence and jumping over.
#3 BTS developers will build for well-being and connection
Property developers who are wedded to the BTS model will take a slight switch of focus. To be able to market their multi-unit developments to prospects who are interested in buying, they’ll need to build more than four walls.
A growing interest in well-being and connection is impacting property developments. That means buyers are looking for apartments and flats that provide far more than a simple roof over their heads. Convenience, connection and community need to become the catchcry for developers looking to sell once construction comes to an end.
Location is just one factor when it comes to multi-unit developments. That ticks the convenience and urban lifestyle boxes, but connection, community and culture ask for a little more thought. Dowen Farmer’s East London residential building is a perfect example of the additional amenities BTS developers should consider to improve the saleability of their lots.
BTS developers who put effort into creating a community with amenities that support greater connection will be the winners. That means incorporating gyms, pools, creches and co-working spaces to attract buyers. It also means creating spaces for social interaction between residents and facilitating building events, group activities and opportunities for residents to feel a part of something bigger. These enhancements for a better quality of life in BTS developments will be the draw cards that seal the deal with buyers.
#4 Buildings will need to get smart
In both Australian and Asian markets, there is an increasing awareness of environmental issues. Multi-unit communities that prioritise sustainability attract buyers easily. Features such as energy-efficient appliances, green building materials, and eco-friendly landscaping are just the beginning when it comes to swaying environmentally conscious buyers.
The technology that is available today for new developments allows buildings to really become smart. Sensors can detect if rooms are occupied and adjust HVAC, lighting and security accordingly. Data is collected to understand exactly how a building is used. Facilities can adapt to support high-demand periods. That saves energy, increases efficiency and improves convenience.
These technologies need to speak with each other and come together through a single management interface to truly be able to work for residents, management teams and owners’ committees. BTS developers who find building management software that can integrate with other technologies will put themselves ahead of the curve.
By jumping on this trend now, BTS developers will impress buyers. Not only that, they’ll future-proof their property while improving its investment appreciation potential. BuildingLink integrates with a wide range of best-in-breed technology providers that allow you to create a bespoke smart-tech ecosystem for your development.
#5 More proptech solutions will reshape the property landscape
Fintech investment is down, proptech is up. US investment in proptech tripled in 2022-23. The market is expected to grow substantially over the coming few years with a prediction it will hit 119.9 billion in 2032. But what does that mean for BTS developers?
The software solutions on offer are about to explode in variety. Knight Frank launched their proptech portal for buyers and sellers earlier this year. Others will follow, and follow fast. Going from just a handful of software solutions, BTS developers will be spoilt for choice when it comes to technology solutions. Options that promise to improve workflows, boost brand identity and make their lots more saleable will grow.
The trick will be to choose the best solution for the building and the lifestyle you are aiming to create. Watch out for half-baked technology solutions that offer the stars and deliver disappointment and frustration. Book a free demonstration of BuildingLink’s software solution to see if we’re a good fit for your development.