{"id":3416,"date":"2025-10-01T14:00:33","date_gmt":"2025-10-01T04:00:33","guid":{"rendered":"https:\/\/anp-au.com\/?p=3416"},"modified":"2025-10-01T14:05:14","modified_gmt":"2025-10-01T04:05:14","slug":"2025auspropertydevelopment","status":"publish","type":"post","link":"https:\/\/anp-au.com\/en\/2025auspropertydevelopment\/","title":{"rendered":"Australia&#039;s latest investment return gap data: Is buying land and building more profitable than buying a unit?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">In the Australian real estate market, many overseas investors&#039; first choice is to purchase an apartment, hoping for long-term appreciation and rental returns. However, experts point out that rather than investing in a single unit, it is better to consider purchasing land and developing it: this can directly create value and protect against market fluctuations.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents Overview<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/anp-au.com\/en\/2025auspropertydevelopment\/#%E5%BE%9E%E3%80%8C%E8%A2%AB%E5%8B%95%E6%8C%81%E6%9C%89%E3%80%8D%E5%88%B0%E3%80%8C%E4%B8%BB%E5%8B%95%E5%89%B5%E9%80%A0%E3%80%8D\" >From &quot;passive holding&quot; to &quot;active creation&quot;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/anp-au.com\/en\/2025auspropertydevelopment\/#%E6%95%B8%E6%93%9A%E5%8F%8D%E6%98%A0%E9%96%8B%E7%99%BC%E9%9C%80%E6%B1%82%E5%BC%B7%E5%8B%81\" >Data reflects strong development demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/anp-au.com\/en\/2025auspropertydevelopment\/#%E5%B0%8D%E6%8A%97%E9%80%9A%E8%84%B9%E8%88%87%E5%B8%82%E5%A0%B4%E6%B3%A2%E5%8B%95\" >Fighting inflation and market volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/anp-au.com\/en\/2025auspropertydevelopment\/#%E5%9C%B0%E4%B8%BB%E6%80%9D%E7%B6%AD%E5%8B%9D%E6%96%BC%E6%95%A3%E6%88%B6%E5%BF%83%E6%85%8B\" >Landlord thinking is better than retail investor mentality<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E5%BE%9E%E3%80%8C%E8%A2%AB%E5%8B%95%E6%8C%81%E6%9C%89%E3%80%8D%E5%88%B0%E3%80%8C%E4%B8%BB%E5%8B%95%E5%89%B5%E9%80%A0%E3%80%8D\"><\/span>From &quot;passive holding&quot; to &quot;active creation&quot;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While purchasing a property is often a matter of following the market, with prices driven by overall market conditions, land acquisition and development is a proactive way to create value. Through planning and construction, developers can transform a single plot of land into multiple residential or mixed-use units, directly creating a multiplier effect in the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taking a 600-square-meter plot of land as an example, if three to four townhouses are built according to urban planning, the total value of the completed development will be much higher than that of a single residential house. The profits locked in by investors can often exceed the traditional model of &quot;buying a unit and waiting for appreciation.&quot;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E6%95%B8%E6%93%9A%E5%8F%8D%E6%98%A0%E9%96%8B%E7%99%BC%E9%9C%80%E6%B1%82%E5%BC%B7%E5%8B%81\"><\/span>Data reflects strong development demand<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Australian Bureau of Statistics data shows<strong>In the first quarter of March 2025, the number of residential units that had &quot;started construction&quot; reached 47,645.<\/strong>, of which 27,923 were single-family homes and 18,161 were multi-family homes. The total construction value during the same period was approximately <strong>A$38.8 billion<\/strong>This not only means that the market is still absorbing a large amount of new supply, but also reflects that the development process from &quot;land to building&quot; is the core engine driving the property market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">also,<strong>By July 2025, the number of residential units approved nationwide reached 15,769.<\/strong>Even though it fell by 8.2% from the previous month (seasonally adjusted), it is still a huge amount. The approval data proves that development activities are continuing and the market demand for new homes has not diminished.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In contrast, investors who simply purchase ready-made units can only bear market price fluctuations and cannot share the added value from the &quot;development premium&quot;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E5%B0%8D%E6%8A%97%E9%80%9A%E8%84%B9%E8%88%87%E5%B8%82%E5%A0%B4%E6%B3%A2%E5%8B%95\"><\/span>Fighting inflation and market volatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Rising construction costs have been a global trend in recent years. While this translates to higher purchase prices for property owners, it can also be an advantage for developers. When the cost of new buildings pushes up market benchmarks, the value of completed developments increases, potentially boosting profits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More importantly, developers can adjust their product positioning to respond to demographic shifts and market demand through land planning and architectural design. For example, in Brisbane and the Gold Coast, young families and professionals tend to choose small and medium-sized homes near railways, which provides a stable demand for multi-family development.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E5%9C%B0%E4%B8%BB%E6%80%9D%E7%B6%AD%E5%8B%9D%E6%96%BC%E6%95%A3%E6%88%B6%E5%BF%83%E6%85%8B\"><\/span>Landlord thinking is better than retail investor mentality<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In summary, the value of buying land and building a building lies in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Create rather than rely on appreciation<\/strong>: Turn raw land into multiple units that can be sold or rented, doubling your profits.<\/li>\n\n\n\n<li><strong>Take the initiative<\/strong>: Be able to design products in response to market trends rather than passively waiting for house prices to rise.<\/li>\n\n\n\n<li><strong>Data support<\/strong>: Australia still has more than 40,000 new residential projects started every quarter, with the total value of construction projects reaching tens of billions of Australian dollars. Development is the main axis of market operations.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For investors who can afford it, a &quot;landlord mentality&quot; far outweighs a &quot;retail investor mentality.&quot; Buying land and building on it is the true path to outperforming the market in the long term and creating generational assets.<\/p>","protected":false},"excerpt":{"rendered":"<p>\u5728\u6fb3\u6d32\u623f\u5730\u7522\u5e02\u5834\u4e2d\uff0c\u4e0d\u5c11\u6d77\u5916\u6295\u8cc7\u8005\u7684\u7b2c\u4e00\u500b\u9078\u64c7\u662f\u8cfc\u5165\u516c\u5bd3\u55ae\u4f4d\uff0c\u5bc4\u671b\u65bc\u9577\u9060\u5347\u503c\u8207\u79df\u91d1\u56de\u5831\u3002\u7136\u800c\uff0c\u5c08\u5bb6\u6307\u51fa\uff0c\u8207\u5176\u5c07 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3418,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[],"tags":[],"class_list":["post-3416","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/posts\/3416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/comments?post=3416"}],"version-history":[{"count":3,"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/posts\/3416\/revisions"}],"predecessor-version":[{"id":3420,"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/posts\/3416\/revisions\/3420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/media\/3418"}],"wp:attachment":[{"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/media?parent=3416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/categories?post=3416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anp-au.com\/en\/wp-json\/wp\/v2\/tags?post=3416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}