M Group
Is it time for a sustainable stimulus solution
The Governments’ incentives to drive activity and growth in the property sector have been highly effective in achieving the desired outcomes. As a result, developers are calving through land stock to keep up with demand and builders are facing the pressure of delivering across the entire supply chain. So, is it time to look for a more sustainable and enduring model?
Boutique land developer, Monument, is facing the challenge of keeping up with demand more than most. The company specialises in high demand and limited supply land-sites located close to city in established areas– the likes of which will generally attract more attention to the buyer market.
Following consecutive government announcements to introduce a series of home building grants, the company was quick to experience a huge spike in interest and sales.
However, while the stimulus packages have been warmly welcomed by the sector, Mr John Wroth, Director of Monument parent company, M/Group, says it is time for the Government and industry to take stock and focus on a plan that supports the sustainable growth of the property sector.
“There has been an enormous response to the grants and incentives, and many land developers are running low of stock to meet the new demand. On the face of it, this is not a bad problem to have, although the pressure is now on to increase land production and deliver on home builds without impacting the cost to the buyer,“ he said.
“As developers fast-track new land stages, the question needs to be asked, what happens when the incentives slow down.”
Monument has recorded over 40 sales across its three boutique estates in the last month and has seen an increasing reliance on banks to speed up processing timeframes to meet the deadline driven requirements of grants. There are also fears that a pending lack of supply will create an imbalance in the market as the industry aggressively works to keep up with demand.
Mr Wroth believes the company’s predicament in achieving high sales volumes is not isolated and there could be risks associated with incentives being removed swiftly and without consideration of the impacts.
“The State and Federal Governments should be commended for acting quickly and decisively to stimulate the property sector. It is now critical for government and industry alike to consider the consequences of what happens next and what the impact will be on a sector that is so important to maintaining a buoyant economy,” he continued.
“There is an abundance of opportunities that could help to maintain the steady growth of the sector, including the slow pulling back of incentives, or even a capped program that is reoffered annually. The idea would be to continue the great work of government and maintain the growth of the sector in a measured and continuing way.
“This issue sits way beyond achieving good sales targets. It is something that will impact everybody.”
For more information visit www.landbymonument.com.au.
Renewal Puts Freo On Cusp of Change
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M Group
Renewal Puts Freo On Cusp of Change
What key drivers attracted you to develop in Fremantle and what is it that makes it attractive from a developer’s perspective?
Interestingly, our initial focus on Fremantle raised some eyebrows. In the early days we did significant work building a reputation as an inner city developer. All our projects were strategically located around the CBD and we actively promoted a new form of urban living specific to this area. It appeared in vast contrast to the eclectic beach and port side environment of Fremantle, but to us it held similar hallmarks.
What Match is very good at is identifying strategically located sites with good infrastructure and growth prospects. We laid our first claim to land in the early stages of South Beach Estate because we saw enormous potential.
Many find it hard to pigeonhole Fremantle due to its location and diverse population. However, it is without question a place where people want to live and we believed we could offer something unique to the mix.
Give us a brief overview of your Fremantle-based projects (past and current)
The Summer, South Fremantle – COMPLETED
Australia’s first Green Star Multi-Residential Building offering 36 luxury apartments with ocean views.Heirloom by Match, Fremantle – COMPLETED
Highly celebrated and award-winning adaptive use of Fremantle’s iconic Dalgety Wool Stores heritage building.M/28 by Match, South Terrace, Fremantle – COMPLETED
A boutique development of just 20 apartments and 6 commercial spaces located in the very heart of the eclectic South Terrace community.M/27 by Match, Parry Street, Fremantle – UNDER CONSTRUCTION
A boutique development of just 40 park side apartments and conservation of the heritage listed substation building located in the midst of Fremantle’s historic and cultural centre.Somersault, Fremantle – COMPLETED
An apartment complex of 58 affordable living residences inspired by the materials and textures synonymous with Fremantle.Sublime, North Fremantle – COMPLETED
Just 16 beautifully appointed apartments incorporating exteriors with colours that reflect the nearby “Dingo’ flour mill.Match has also extended its interest along Fremantle’s Coastal Corridor into areas such as North Coogee and Port Coogee including apartments and terrace homes.
There’s now a long list of developments planned or underway in Fremantle – what do you think has recently made it attractive for development?
Fremantle is definitely a place where increased development activity greatly improves the area’s atmosphere and appeal.
As Perth’s second largest CBD, the transition from a tourism and industrial location to a central residential and lifestyle hub has required both good planning and a period of adjustment. As more people are attracted to the area, they stimulate demand for residential product and, in doing so, creates an atmosphere that resembled some of the best and most populous cities in the world.
The factors that today make Fremantle so attractive could not simply be switched on. Match identified the City’s potential a long time ago but knew it would take capacity to build capacity. It is so great to see what has emerged since we arrived over a decade ago.
What are your anticipations for Fremantle’s future property market and the town itself?
Match has invested heavily in Fremantle and, in particular, its coastal corridor. We now have quite a significant footprint of projects in and around the area. We wouldn’t have made Fremantle our focus if we didn’t believe in its growth and potential.
There are very few places in Australia, if not around the world, that offers such a vibrant urban atmosphere with outstanding community infrastructure, as well as access to a coastal lifestyle. This is unique and unique translates to value.
We believe the town will continue to evolve as more people move into the community. Fremantle will continue to be a sought-after location, and quality product will become the differentiator in the property game.
We have been extremely lucky to work with a city council that is both visionary and takes a collaborative approach to development. Good planning underpins the success of any environment, and shutting the doors on development completely could have been disastrous for Fremantle.
What many might not realise is that what we are seeing now is the result of a considered approach that has been in the works for over a decade.
Strategic development sites, such as Heirloom, have been instrumental to opening key areas of the City to the public and reinvigorating the area’s incredible history.
There have been many bold moves taken over the years by the City of Fremantle, so it’s great to see everything come together for them and the community.
Comments by Lloyd Clark, Managing Director of Match parent company M/Group
A Welcome Move
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M Group
A Welcome Move
State Government moves to speed up major development projects have been met with praise from the residential construction sector, which says the policy changes will meet demands of the modern apartment market and reduce unnecessary expenditure.
The recently announced decision includes the fast-tracking of metropolitan and regional developments worth $20 million and $5 million or more respectively.
Described as a once in a lifetime change to Western Australian planning policy, the reforms are part of the State Government’s COVID-19 recovery initiatives, aimed at kick-starting jobs and economic activity in WA.
Match parent company M/Group Managing Director Lloyd Clark said the government moves would help developers avoid needless spending and give developers a better idea of when their product could be delivered.
He said Perth would largely benefit from increased infrastructure such as apartment complexes, but it could become problematic if developers were not keeping an eye on whether new buildings matched demand levels in the state.
“A more predictable development timeline will assist in the coordination of the supply chain, which involves many small businesses and can have a significant impact when delays occur,” Mr Clark said.
“Ultimately Perth residents will be the ones to benefit from increased infrastructure that does not take years to arrive and new amenity that will result from commercial developments.
“A more streamlined approvals process will certainly introduce a level of diversity into the apartment market, but there is a risk that it could encourage an oversupply of apartments.
“If the market does not respond to an apartment project, the complex might not get off the ground.
“The onus is certainly on the government to manage this process, but it will ultimately be a commercial decision whether the developer decides to proceed or not.
“Apartment buyers still need to remain diligent and do their homework to source credible developers with a track record or works before they put their deposit down.”
Despite a risk of oversupply, Mr Clark agreed the reforms were a welcome change to traditional processes, which involved a lot of time and consultation costs when engaging with local and state governments.
He said it was well known that development projects resulted in positive economic impacts and unlike in other industries, activity in construction led to helpful affects felt across a broad range of indirect businesses.
“The very nature of a development project means that the greatest impact remains local,” Mr Clark said.
“The development sector has historically been the go-to vehicle for government bodies looking to stimulate the economy because no other sector can really deliver the far-reaching benefits.
“The State Government’s planning reforms and response to COVID-19 will provide a great opportunity to upgrade or replace inefficient structures and meet the demand of a new and modern apartment market.
“Perth was relatively late in the game with regards to accepting apartment living as a genuine lifestyle option.
“Older product was therefore built largely for investment with an emphasis on capacity rather than design and functionality.
“Times have changed dramatically since then, and we now have the opportunity to make old buildings more relevant and sustainable, or replace outdated structures with buildings that will enhance the streetscapes.”
The reforms follow three years of consultation on major development projects that were brought forward sooner than planned to better support WA workers struggling in a slumped economy.
The changes include more than 25 amendments to the 2015 Planning and Development regulations, which are designed to remove planning system barriers, provide consistency and clarity for developers navigating the policy, and reduce burden on local governments.
Excerpt from The West Australian, 11 July 2020
It’s a Race to Get the Best Sites at the Right Price
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It’s a Race to Get the Best Sites at the Right Price
The Governments’ incentives have created a flurry of buyer interest with Perth’s best homesites being snapped up at pre-Covid-19 prices. However, as demand increases and stock dries up, buyers need to be aware of inevitable price increases that are likely to create an impact across the entire home building supply chain.
Since a consecutive string of government announcements introduced home building incentives to stimulate the economy, Perth developers have been working tirelessly to meet new demand from people wanting to take advantage of the incredible savings.
Of course, the best and most well-located homesites are attracting most of the attention.
Boutique land developer, Monument, is experiencing this more than most. The company specialises in boutique, high demand and limited supply land-sites located close to city in established areas.
In the past month, Monument has sold over 40 homesites across its three estates, and its sales consultants are taking new enquiries on a daily basis.
Mr John Wroth, Director of Monument parent company, M/Group, says while this seems like a good problem to have, buyers need to act fast in order to secure their home and land package before the industry responds to the increased demand.
“The response to the government incentives has been enormous, but the reality is that many developers had been running according to a measured release plan of land stock prior to the announcements, so the best available lots are now simply walking out the door,” he said.
“The process of new approvals is arduous and timely and in the case of boutique developments such as ours, there is only a limited amount of land we have available. While we have no intention of increasing our land prices, other companies will find it hard to avoid the pressure for builders to meet demand through their supply chain is likely to impact building costs.”
“It is imperative that buyers recognise the extraordinary buying conditions and ensure they are finance-ready to act fast in securing the best possible land package for their new home.”
Here are some tips to help you secure the best lots on the market.
- Bigger is often seen as better!
Larger lots continue to prove the most sought after and, as such, are often in short supply. While it may be easier to secure larger lots in the outer suburbs, value is always going to be on location so do your homework and buy wisely.
- Be on the front foot with frontages
Home frontages of 15m or more are rare and popular. They often have a wait list of multiple offers in place, so it is prudent to get in fast and secure one as early as possible.
- Be finance ready
Make sure you have your finance pre-approved and speak to your mortgage broker or bank before making the commitment to buy a lot. Being prepare not only gives you the buying power to secure the lot you want quickly, it also means you won’t miss out.
- Secure your building contract now
It is unlikely that Perth will experience better building conditions any time soon, particularly with incentives that could save up to almost $70k on a house and land package. It is therefore important to recognise that the cost of building a home is currently based on pre-Covid-19 prices and builders are only able to commit to these prices if you sign quickly.
- Location is everything
Don’t be bedazzled by low prices in large outer-suburb estates. Your money will work harder and your home will be valued higher in the long-term if your land is surrounded by established infrastructure. You’ll also have the benefit of not having wait years for it to arrive.
- Don’t settle for second best
Monument offers a range of homesites across three well-located environments at various stages of development.
Atop in Beeliar is currently selling elevated, ocean view and park side lots in Stage 2 and 3 from $304,000, with Stage 4 scheduled for release and ready for titles by November. This stage will offer ocean view lots from $298,000.
The Wedge in Wellard North incorporates a community park, playground and walk trails, and is surrounded by the natural bushland of Bulrush Nature Reserve. It has sold out of Stage 1, and will have titles in place for Stage 2 in October. Lots are available from 375sq.m to 537sq.m with prices starting from $174,000.
Finally, the company’s inaugural land estate, Hamelin Park in Secret Harbour. It is just three-minutes from the beach and only has six lots left, which are priced from $194,000.
All Monument land estates are designed to impress and are located in well-established suburbs with shops, good schools, public transport and employment at your doorstep.
For more information visit www.landbymonument.com.au
Bigger Not Always Better
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Bigger Not Always Better
Developers of smaller apartments projects across Perth say some of the state government’s recent measures to stimulate economic activity and employment in light of COVID-19 are good in theory, but may not meet expectations in practice.
Among the measures is a streamlined assessment process for ‘significant developments’, defined as those projects with an estimated cost of at least $30 million or new residential buildings proposing more than 100 dwellings.
Developer and architect Barry Baltinas hopes the approvals process for the smaller, high-end apartment projects he focuses on could also be streamlined.
“These smaller projects can get off the ground very quickly, helping to create jobs and incomes for Perth families at a time when that is very much needed,” Mr Baltinas told Business News.
“Now more than ever, buyers are putting their health and the health of their family in focus, and boutique living aligns with that.”
Baltinas’s latest project, the $19 million Habitat Residences in Applecross, recently completed construction and features 14 apartments and three penthouses.
Mr Baltinas said the lack of shared facilities at the projects had proved to be a drawcard, particularly in recent weeks.
“It not only means fewer maintenance costs, but brings fewer health implications, which is obviously top of mind for many buyers right now,” he said.
“We’re seeing more activity in the market, in particular from those downsizers who have not been greatly impacted financially by recent events.”
M/Group managing director Lloyd Clark said there had been a lot of speculation about the potential negative impact of COVID-19 on the property industry, but the company’s apartment arm Match, which mostly develops 30-40 dwellings over three to five storeys, had not adjusted its pipeline.
“Boutique product holds its value,” Mr Clark told Business News.
“It’s important to note that the apartment market is heavily impacted by continued population growth, and an emerging generation that values central urban living over the half-acre block.”
Mr Clark said this would continue to increase demand for quality product in desirable locations.
“If the government’s mandate is to stimulate the economy and fast track project development, it needs to approach all areas of the property sector equally,” he said.
“We believe it is absolutely counterproductive for the government to favour one style of dwelling over another in any capacity.
“There is a whole market sector that would never consider high-density living, so disadvantaging them with time delays does not service anyone.”
Excerpt from Business News – 22 June 2020
A Terrace Home Affair for Match
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A Terrace Home Affair for Match
Most people know that Match has been a significant trailblazer for the Perth apartment living scene. This well-earned distinction was bestowed over two decades ago when the company founders challenged Perth’s planning code and pushed design parameters to protect our streetscapes from large unsightly ‘cookie-cutter’ apartment product.
The introduction of cutting-edge boutique apartment design into our urban environments was something many had not seen before, and the company’s ability to secure highly visible and strategic lifestyle sites made everyone sit up and notice.
Today, Match is still delivering a stunning range of apartment designs and the market is now fully aware of the benefits apartment living can provide.
So, why is the company shifting its attention to Terrace Homes?
After its enormous success in the apartment sector, Match recently stunned its followers by introducing two projects that have moved away from its recognised apartment formula.
M/31 Terrace Homes and M/32 Terrace Homes are located in Landcorp’s visionary Shoreline Precinct in North Coogee.
The two projects are idyllically positioned just metres from the coastline and, like all other Match product, are distinctive in design and layout.
Lloyd Clark, Managing Director of Match parent company, M/Group, said the new category of housing was an exciting shift for the Match design team, but was not such a huge leap in terms of the company’s design philosophy.
“Every one of Match’s projects is distinctive in many ways, because we design specifically for the location and the residents we hope to attract to it,” he said.
“There is no doubt that Perth’s perception of apartment living has changed over the years, and that more and more people are moving away from the half acre block on the fringes of the city to a more lifestyle-driven atmosphere closer to the action.
“When we secured these incredible sites at Shoreline, we saw an opportunity to give our residents an experience that sits somewhere in between.”
M/31 Terrace Homes by Match are well-appointed three-bedroom terrace homes that include open plan layouts that integrate indoor and outdoor living. Each home comes with a double carport, private and sheltered courtyard, and is architecturally designed to maximise light, space and breeze.
M/32 Terrace Homes by Match is based on a unique architectural style that uses beautifully landscaped laneways and a central lawn area to create a sense of privacy, serenity and space. The terrace homes are designed to be ultra-modern and their floorplans are spacious laid out across three stories.
“As the apartment market has evolved, so too has Match’s desire to keep meeting the demand of people who want the best out of their lives and their home environments,” he said.
“We helped to break the mould of apartment living back in the early 2000’s, now we’re looking to bring even more to the table in terms of innovation and style.”
Prices for M/31 Terrace Homes by Match start from $550,000 and M/32 Terrace Homes by Match start from $685,000.
For more information visit www.m31terracehomes.com.au or www.m32terracehomes.com.au respectively or call one of our consultants on 0432 660 066.