Cushman & Wakefield says NSW developers shift to defensive sites with greater planning certainty

Cushman & Wakefield says the NSW development market has become more selective, with capital shifting to sites offering higher planning certainty.

Higher construction costs, financing costs, longer planning timeframes, and buyer price sensitivity are tightening feasibility screens for new projects.

Developers are underwriting land deals to current end values and funding conditions, not future market growth or easier credit.

Demand for housing remains strong, but the key constraint is converting land into financially viable projects under current economics.

Pricing gaps are widening as execution capability drives divergent site valuations, favoring “defensive” locations with constrained competing supply.