Ray White Invest has completed the development of a 46 residential lot sub division in the north western Sydney suburb of Glenwood. The property was purchased off Wincrest Homes in 2008 just prior to the commencement of the GFC.  

The property possessed some strong attributes, namely, its proximity to a major arterial highway (the M7), to commercial employment (the Norwest Business Park), to retail employment and shopping (the Parklea markets) and education (Glenwood High School). All of these attributes made the case for a residential development to support an expanding populous.

The onset of the GFC was unexpected and derailed the planing of the project. Lending for home buyers was on the decline and as such so too was demand for land. To counter this, Ray White Invest realised the need to work closely with the project’s participating major home builders on the marketing of the land. No longer was it sufficient to offer land and house packages separately – the strained financial climate demanded more. Buyers and banks were hesitant about the cost of building a house after purchasing land so a combined approach was required. 

Clarendon, Metricon and Castle Homes worked alongside Ray White Invest in a strong marketing campaign that surfaced in press advertising, internet and radio, offering house and land packages. Incentives were added to the marketing campaign also; rebates to first home buyers and buyers who purchased off the plan, for instance. 

Despite the standoffish environment created in the property market by the GFC, the entire estate was sold within three months due, mostly to the effective and innovative marketing campaign employed as well as the  announcement of the first home owners grant in mid-2008.

As a result, the original plan to construct the project in two stages was abandoned and the project was delivered in one stage. The high level of buyer interest saw the funding provided without question from the first mortgagee and the project was completed within 18 months from acquisition.

A net IRR in excess of 35%vp.a. was delivered to investors.  

The success of the project, with blocks ranging from 350sqm to 500sqm, was due to the innovative partnership with builders. The ability to approach pricing in a cooperative fashion allowed buyers the confidence to re-engage in property despite the precarious state of the  market at the time.