Deciding to build a new home is tricky in a time of extended construction timelines and rising material and labour costs.

Yet for residential developers with a solid financial base – and infinite patience – persevering with a new-build can bring healthy reward.

In today’s market, new-build homes are grabbing buyers’ attention, stealing the social media limelight and, if the product offering is right, earning homeowners’ a tidy profit upon sale.

Kollosche sales agent Taylor Kleinberg says there has been high demand for brand-new, turn-key homes since the pandemic.

“There are a tremendous number of buyers in the market who have financial capacity at the moment and each suburb is proving that house values can be increased from previous levels,” he says.

In the suburb of Mermaid Waters, for example, a stunning new-build home known as the White House at 43 Markeri Street sold for a suburb record price of $7,300,000. This was several million above the previous highest sale. It served to spark a domino effect within the suburb, with a new-build home at 84 Oceanic Drive selling only weeks later for $7,700,000.

Since then, other new-builds in the suburb have achieved comparable results, including 30 Montego Court, a high-tech, four-bedroom, new-build home which this month sold under the hammer for $7,250,000.

In nearby Sorrento, a new-build featuring cutting-edge design set the record for a canal-front home when it sold for $7,600,000.

WHAT TO CONSIDER

Before rushing out to draw up blueprints, there are some key things aspiring developers need to consider if they are to achieve premium sales results.

“The construction timeframe is critical,” Taylor says, “particularly for anyone inexperienced or who is reliant on finance, because any delays to a build will start to cut into profit margins considerably.”

“For example, if you’re paying a higher interest rate for construction, say 8 per cent, and your expected profit margin is 20 per cent, an extra six months can make a huge impact on your bottom line.”

Considering the end-user is also key and in today’s market that is owner-occupiers rather than investors, and predominantly families.

For this reason, homes that are highly functional as well as aesthetically pleasing will widen their appeal and ultimately help to boost sales value.

According to Taylor, in waterfront suburbs; block size, number of living spaces and bedrooms are important, while along the beachfront, buyers’ priorities escalate toward easy beach access and ample parking.

“The biggest mistake I see being made by both builders and renovators is trying to fit too much into a space,” Taylor says.

“It is better to have a four-bedroom house with good-size rooms and extra living rooms, rather than up the bedroom count and end up with non-functional, small spaces throughout. Less is more.

“Across the board, function is the priority above all else. No matter how aesthetically pleasing you make a property, homeowners still need spaces in which to store stuff.”

WHERE TO BUILD

There are currently a number of suburbs returning good profit margins for owner builders.

According to Taylor, Burleigh Waters and Miami are two great suburbs in which to build, with Robina also taking off.

Ultimately, he says, new-builds on the waterfront or within proximity to the beach will have a significant impact on what final sale price may look like.

“Whatever suburb you build in, you need to be mindful of the financial capacity of the end user in that market. For example, when it comes to the suburbs like Mermaid Beach, if you are closer to the highway than the beach, it may be more financially viable to head to the next suburb, where blocks are bigger and the opportunity to maximise return is elevated.”

If you’re seeking inspiration, Kollosche is currently marketing a number of newly built family homes in its Buy section.