With a decade invested in helping the region expand, Growth Developments directors Jason Sherriff and Wim Van Der Pols would like very much to continue on this upward trend.
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But what factors will influence the future of this growth?
The first of these factors is the age-old issue of supply and demand according to Jason.
“Currently there is a shortage of land and our aim is to help fill that gap,” he said.
Another issue is infrastructure.
“Some areas are difficult to develop due to the fact that major service upgrades are required.”
He added that these ageing facilities made it extremely expensive to upgrade and extend.
Zoning is also crucial and Jason says a lot of work goes into the rezoning process.
“Launceston City Council has identified growth areas within its municipality. For example St Leonards is one area that has been recognised as having potential for significant development.
“The council is trying to ascertain what is needed for schools, shopping centres, natural values, public open spaces like parks and so on, developing a plan to cater for future development.”
Another element which exerts a significant influence over projects is of course, costs which Jason says have undergone significant inflation in recent times.
“The costs to construct have dramatically increased, by up to 30 per cent in two years, including the supply of services like NBN, water and sewage.
“For example, power supply requirements have tripled in some cases.
“This has resulted from the removal of subsidies for power.”
The outcome means another unknown which the developers have to consider.
“Previously there was consistent pricing for every development, but now the cost is uncertain and includes a considerable design fee.”
Wim explains all of this is a consideration in the purchase price of the initial investment and the eventual sale price of the properties.
“Low-value lots are no longer feasible due to these costs and we imagine that over time affordable developments are going to move further and further out of town.”
The team uses Perth as the prime example of how development can be a balance of lifestyle and growth.
“Not many developers have done anything in Perth, and in past ten years we have created more than 150 lots across multiple locations,” Wim said.
He estimates that’s an increase of around 500 people.
However, the evergreen argument of which comes first, infrastructure or growth, rears its head. In this case, the answer is clear.
“There is still some scope but growth is currently limited by infrastructure.”
