There are no shortcuts in pricing Land Lease

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We’ve been pricing land lease communities since I started Channel Marketing 9 years ago. During this decade we’ve witnessed the sector accelerate and become more sophisticated and more complex.

Fast forward to today we work with a range of developers during acquisition and pre-launch and each have different pricing biases or tendencies. Some tend to stick closer to the historic below median price, others are looking to push the envelope in some instances $400k above.

Either way, what is very clear and what we’ve always emphasised with our clients but now more than ever, there is no easy simple calc to price land lease…not even at acquisition stage.

There is no perfect science and whilst there are some geographic and lifestyle trends you can lean on, it really has become a far more site by site specific pricing strategy and one you can’t set and forget and apply aggressive escalation rates to, particularly if you’re relying on outside catchments.

Here’s a few factors that have influenced our pricing recommendations over the years…

1. Yes, recent migration has opened up new catchments with larger pockets

2. Yes, market acceptance for land lease is well and truly on the rise

3. Yes, customers have struggled to see the value in IL retirement villages

4. However, a healthy median price post covid doesn’t mean the market is moving

5. And, regional towns doesn’t always equal people living in large properties

6. And, sea-changers with bigger budgets aren’t always at high velocity

7. And, relying on broader catchments multiplies your risk exposure

So what does this all mean.  It means you need to take a site by site approach, and be far more strategic and have the project team fully understand the implications of pricing decisions that are made now and WOL.  Don’t rush pricing, don’t do it from your desktop, don’t rely on someone who is busy.

To chat more, reach out.

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