RetailEditorial DeskTue 08 Aug 23

Time & Place’s Tim Price: Thoughtful Innovation

Business as usual is all well and good, but if “the usual” is far from that, where does that leave things?

Given the seismic shifts the property sector is undergoing, those who are finding new ways to work surely are ahead of the curve.

Yet it is a lack of innovation that’s high on the list of concerns for Time & Place director Tim Price.

Price, who founded the “new generation” developer about 15 years ago, is one of 50-plus speakers taking part in Urbanity at the Gold Coast on August 29-31. He spoke to The Urban Developer in the lead-up to the event.

Time & Place has completed around $3 billion since it was founded and has a pipeline of work of about $5 billion.

Working in the Melbourne and Sydney markets, Time & Place has a staff of about 60.

“The property industry is facing several challenges at present,” Price said.

“One of the main concerns is the lack of innovation in response to ongoing uncertainties caused by inflationary pressure, escalating construction costs and difficulties in securing stable tender pricing, which also brings associated risks.

▲ A render of Time & Place’s Victoria Place, a “new generation of workplace” on the corner of Victoria Parade and Lansdowne Streets at East Melbourne.

“Additionally, the industry is grappling with the constant news of contractors and subcontractors entering administration due to the rising and unmanageable costs.

“ESG factors are now closely linked to investor actions, with the focus on reducing emissions creating both stimulus opportunities and pricing risks in development projects.

“These headwinds collectively pose significant challenges to the property industry, necessitating thoughtful strategies to navigate through these difficult times.”

But, Price said, there was also an upside—opportunity, particularly for residential projects, due to forecast undersupply in major cities.

“As fewer projects are completed and immigration returns to pre-Covid levels, there is potential for strong demand,” he said.

“There is a trend towards a flight to quality in the office market, with a rise in popularity of neighbourhood commercial office buildings.

“These positive factors are contributing to the industry’s growth and potential success.”

▲ Middleton Lane by Time & Place is in Melbourne’s Domain Precinct and designed by Wood Marsh.

Price said that in coming months, developers would feel increasing pressure to raise prices in response to rising land values and construction costs, “as this becomes crucial to maintain the viability of delivering apartment projects”.

“However, many developers will be hesitant to implement price hikes amid low consumer sentiment and higher interest rates,” he said, “particularly, developers who have already paid premiums and are highly leveraged are likely to feel pressure to hold on to their sites, considering the diminishing capital and interest rates.”

“On a positive note, the light industrial market is expected to perform well due to the continued growth of online retail, resulting in a shortage of build-to-sell warehousing and increasing demand for industrial properties from end-occupiers and investors at a sub-institutional level.

“Nevertheless, we anticipate significant recalibrations in certain locations and markets, such as the CBD office market, which may face substantial pressure as investors seek to exit and free up capital.

“There will be ongoing demand for premium downsizer and right-sizer offerings in areas where people have been living, reflecting a consistent market trend.”

Price said the sector was in a privileged position.

“I am passionate about how we as developers and designers can better influence the social fabric of the communities that we are working in in a positive and healthy way,” he said.

“It remains one of the great privileges to provide the platform or conduit for someone to buy their first home or investment and even more so for them to buy their last.

“It’s the years in-between where I am most interested in understanding how we can best connect people and, in doing, so create lasting value.”

Urbanity is Australia’s premier conference for the property industry, brought to you by The Urban Developer.

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