Melbourne Residential Outlook Report 2024

4 Feasible development preferences It was interesting to see that two highest responses for accepted feasibility range were equal being, 15 to 18% and 19 to 23%. Certainly, pre-Covid, the expectation before the construction cost escalation in recent years, the expectation for net profit was overwhelmingly expected to be in the 19% to 23% range. So in summary, it’s better to be in market actively selling albeit at a lower profit range than sit back and wait. Q Q What is the accepted feasibility range for new development projects? What instils confidence in these developments for you? Rank in order of importance. 1 2 3 4 5 Score Profitability 50.00% 28.57% 16.67% 2.38% 2.38% 4.21 Demand / Ease of Sales 38.10% 38.10% 19.05% 4.76% 0.00% 4.1 Acquired and held for some time 11.90% 14.29% 19.05% 16.67% 38.10% 2.45 Funding availability 0.00% 4.76% 16.67% 54.76% 23.81% 2.02 Cost to build 0.00% 14.29% 28.57% 21.43% 35.71% 2.21 20.93% 32.56% 32.56% 13.95% 23% Plus 19%-23% 15%-18% 10%-14%