How to become a property developer
More than ever, successful property developers of the future require a vision beyond just bricks and mortar.
Between shifting economic landscapes, an urgent need for sustainable innovation, and the far-reaching impacts of globalisation and tech advancements, tomorrow’s property developers must be equipped with a diverse skill set to navigate these complex challenges.
In other words, they must be visionaries. The reward? Shaping a better future – quite literally. And with property development roles amongst the highest-paying in Australia, they can see great returns for their work. But how do you become one?
Below, we explore the qualifications needed for Australian property development, the steps to getting qualified in property development, the benefits of certification in property development and which skills are in high demand.
Whether you’re looking to fast-track your current property development trajectory or pivot into this exciting arena from a different field without forgoing progress, consider this your ultimate guide for how to become a property developer in Australia.
How to become a property developer in Australia
Like any highly sought (and highly paid) career path, there are a number of advanced skills required to succeed in the property development industry. While formal qualifications aren’t necessarily required for employment in this field, obtaining higher-level accreditations is a solid way to set yourself apart in a competitive market.
It’s also a strong way to expand your career trajectory options – there are many professions in this field, including property analyst, acquisition manager and more – and increase your value and subsequent earning potential.
Higher education attainment is consistently linked to higher total incomes in Australia. Certification in property development has many benefits, and there are several entry points to a high-level career in this space.
For example, you may be already working in the property development sector and looking to futureproof employability, or you may be coming from a different field without wanting to sacrifice seniority. Because of this, there are several potential pathways to get there.
We outline each of these below.
Get qualified
If you want to secure the advancement of your property development career, qualifications are a great way to do it. There are a number of options available, depending on your experience level and professional background. These include:
- Certification: Certifications can be beneficial for those already working within a property-related industry who want to deepen their expertise or gain specialist skills in a particular area of property development.
In Australia, examples of these include a Certificate IV in Property Services (Real Estate) and a Graduate Certificate in Property Development.
- Bachelor’s degree: A bachelor’s degree can be a strong progression strategy for anyone new to the property development field who wants to gain a thorough understanding before commencing their career.
An undergraduate degree can generally provide a strong foundation in the field, covering topics like valuation principles, urban planning, market analysis and commercial management principles.
- Master’s degree: An advanced qualification is a strong way to level up for both existing property development professionals looking to upskill and increase their earnings, and aspiring property developers looking to climb from related industries.
Specific curriculums will vary between institutions, but generally, a master’s degree will provide in-depth knowledge of property development, strategic planning and innovative project execution.
Postgraduate degrees like UTS Online’s Master of Property Development can open doors to high-level positions and prepare graduates to tackle more complex, large-scale (and large-impact) projects. They’re also a great upskill strategy for aspiring property developers looking to start their own firms or consult.
Check licensing for your state
If you are based in the Australian Capital Territory (ACT), you will need to apply for a licence before you can start construction on new developments.
The ACT is the first jurisdiction in Australia to introduce a licensing scheme to regulate property developers. At the time of writing, no other Australian states have followed suit yet.
Research
Once you’ve gained the relevant qualifications and licences, you can start the process of property development.
As a first port of call, a thorough understanding of the real estate market you want to operate in – including current trends, property values, future projections and regulatory requirements – is critical to identifying profitable opportunities and avoiding potential pitfalls.
Consider these aspects during your research:
- Market trends: Become an expert in what types of properties are in demand. Are residential or commercial properties more lucrative in your ideal market? What design features are buyers and tenants looking for? How does sustainability play into future construction plans and consumer demand?
- Location analysis: Location is one of the most determining factors in the success of a property development project. Factors like accessibility, future infrastructure plans, proximity to transport and shopping centres, green space and neighbourhood amenities should all be comprehensively evaluated.
- Regulatory environment: Compliance with sustainability and environmental regulations, local zoning laws, building codes and any other regulations is non-negotiable to avoid legal issues and project delays. Ensure you have a thorough understanding of these from the beginning.
- Financial viability: A comprehensive assessment of the finances of your project is critical to ensure its viability. This includes things like cost estimates for materials and resources, funding options, contingency costs, and realistic returns on investment.
Develop a business plan
Like any industry, a solid business plan in the world of property development outlines your vision, goals and strategies to manage any strengths, weaknesses, opportunities and threats. This is where the research you completed in the prior step comes into play.
Critically, your business plan serves as a roadmap for your project and helps to secure financing from investors or lenders. Here’s what to include:
- Market analysis: Include detailed insights of your target market, including demographics, purchasing power, notable trends and preferences.
- Financial projections: Investors need to know there’s viability for a strong return. Provide estimates of costs, revenues and profitability of your project. Include a detailed budget covering acquisition, development, marketing and contingency expenses.
- Risk management: Project development always comes with a degree of risk, as you’re operating in an environment privy to a number of external influences such as market risks, construction and/or material delays, and regulatory changes. Ensure you’ve identified these and outlined strategies to mitigate them in your business plan.
- Operational plan: Detail the steps required to execute your project efficiently and effectively. This includes logistical and resource planning, timelines, key milestones, and roles and responsibilities of team members.
- Marketing strategy: Attracting buyers or tenants is critical to the profitability of your project. Include a plan for how you intend to do this, highlighting the unique selling points and value proposition of your project.
Identify budget and funding
Needless to say, securing adequate financing for your project is critical. Once you’ve determined your budget as accurately as possible by considering acquisition, development and contingency costs, you can explore several funding options. These include:
- Bank loans: One of the most traditional financing routes, banks tend to offer competitive interest rates on loans. Notably, they require a solid business plan and collateral.
- Private investors: A popular option for established and specialised property development firms, partnerships with private investors can provide significant capital. They’re also more likely to offer flexible financing options but will expect a strong return on their investment.
- Government grants: In certain circumstances, such as sustainable development or affordable housing projects, governments will provide financial aid and funding support.
- Joint ventures: Joining forces with fellow developers or investors to split the costs and risks is a popular funding route for larger private projects.
- Crowdfunding: A less traditional but growing-in-popularity way to finance, crowdfunding involves raising small amounts of money from large amounts of people. There are numerous platforms now dedicated to crowdfunding for real estate investments.
Start purchasing properties
Once you’ve finalised your business plan and sourced adequate funding, you’re in a position to start acquiring properties that align with your development goals.
Due diligence on factors like location, potential for appreciation and regulatory requirements is critical. Further tips for property acquisition include:
- Negotiation skills: Strong negotiation skills are an essential asset in the property development world. Make sure you’re up to speed on market conditions and the seller’s motivations to give you an edge and secure properties at the best prices.
- Legal advice: Work with property and/or contract lawyers to ensure your agreements are legally sound and that all bases are covered.
- Valuation: Ensure you’ve obtained professional property valuations to confirm you’re paying a fair price and assist in securing financing.
Begin development
Once you’ve secured your property, you can begin development. This phase has a number of elements within itself, which include:
- Planning and approvals: Obtaining necessary permits to comply with local regulations. You will have identified which of these is required during your research phase and it helps to start engaging with local authorities early to streamline the approval process.
- Design and construction: Liaise between architects and builders to bring the vision to life, ensuring the design aligns with both market demand and regulatory requirements.
- Project management: A critical component of property development is overseeing the construction process to ensure it stays on schedule, remains within budget and that any issues are handled effectively.
- Quality control: Implement rigorous quality control measures to ensure the final product meets customer expectations.
Which property developer skills are in demand?
As the market continues to evolve, standout property developers are those who possess a skill set that builds on traditional industry expertise with future-focused agility. These skills include:
- Financial analysis and valuation: The ability to effectively forecast development sustainability and profitability of large-scale residential, commercial and industrial projects is increasingly vital. Overcoming the real-life challenges of today’s fast-moving and dynamic property market is a key differentiator for industry professionals.
- Comprehensive understanding and application of social value principles: Shaping tomorrow’s landscape for the better is non-negotiable for modern-day developers. The ability to drive key community initiatives and factor in a comprehensive understanding of livability and climate change risks is a must-have.
- Effective communication, negotiation and problem-solving: Property development is a fine, multi-faceted art – demanding not only technical expertise but ‘soft skills’ as well. The ability to recognise potential in people and partnerships, forge the right relationships and lead teams to success will set you apart.
- Agility within rapidly changing market contexts: Critically evaluating and leveraging sustainable practices to provide future-focused development is rapidly growing in importance. The ability to adapt to fast-changing markets is foundational to building the resilient cities we need.
Step up to your new career
Tomorrow’s successful property developers have a vision that goes well beyond bricks-and-mortar. With flexible study options and a cutting-edge curriculum designed by leading experts, UTS Online’s Master of Property Development can help you hone yours and actualise it.
Reach out to our Student Enrolment Advisors today on 1300 477 423 and learn more about how you can build value with the UTS Online Master of Property Development.
