Episode Summary:

In this episode, I sit down with Karlie Wolfe, Senior Director of Residential Development & Advisory at Opteon, to unpack how professional valuers assess development feasibility and what really determines whether a project stacks up.

Karlie brings over two decades of experience valuing residential development projects across Western Australia—from small triplex sites to large-scale apartment towers. We dive deep into the numbers behind development: how land values are calculated, why construction costs are crippling some projects, and what junior developers often underestimate when they first get started.

If you’ve ever wondered how banks evaluate development deals, why certain projects never get built, or what separates profitable developments from financial disasters, this episode is essential listening.

Key Topics Covered

✅ How valuers assess development feasibility for banks and developers

✅ The key factors that determine whether a development site is viable

✅ Why location, site shape, and topography dramatically impact profitability

✅ The residual land value method used to calculate what developers can afford to pay

✅ Why construction costs are the biggest challenge facing developers today

✅ The difference between small-scale townhouse developments and large apartment projects

✅ Why Perth has a “dead zone” in medium-density apartment supply

✅ The ongoing supply shortage driving Perth property prices higher

Actionable Insights for Property Investors & Developers

• Understand Your Costs: GST, site works, finance costs, and holding costs can dramatically change feasibility.
• Flat Land Matters: Sloping sites can add tens of thousands in retaining walls and site preparation.
• Design Drives Profitability: Well-designed smaller homes often sell better than larger poorly designed ones.
• Avoid Overcapitalising: Match finishes to the suburb and target buyer profile.
• Use Professional Advice Early: Valuers, builders, and local agents can help validate your assumptions before committing to a purchase.

Feasibility Must Work Today: Banks and valuers assess projects based on today’s market—not predicted future growth.

Connect with Me

Website: https://rezzi.com.au/

Podcast Hub: https://rezzi.com.au/podcast/

Instagram: https://www.instagram.com/rezziau/

YouTube: https://www.youtube.com/@rezzi5526

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