Drawing from our extensive experience working with leading property developers across New Zealand, we’ve pinpointed the key qualities that set the most successful apart. These traits not only drive the success of individual projects but also help establish a long-standing reputation in the property development industry. In this blog, we’ll delve into what we consider the top 10 most essential qualities.
1. Strategic Vision
A strong strategic vision is fundamental for successful developers. They possess the ability to foresee potential in a property or land that others might overlook. This vision is not just about immediate gains but includes a long-term perspective, ensuring each project fits into a broader business strategy. Considerations range from the nature of the project to size, scale, location, and long-term financial objectives. Our most successful clients have consistently shown that a clear, well-articulated vision is critical in driving a project that exceeds market expectations.
2. Financial Acumen
Understanding the financial landscape is crucial in property development. Developers who excel are those who have mastered financial management, including budgeting, cost estimation, and cash flow management. They have a deep understanding of the various development financing options available to them across the market including main bank, non-bank, and mezzanine finance companies. Key concepts like LVR, LTC, and IRR are well understood, as is the ability to calculate the differences between line fees, establishment fees, and how capitalised interest is applied to a loan (the S-Curve). This financial savvy allows them to secure the best development funding terms and ensure financial viability from start to finish.
3. Regulatory Savvy
Navigating the complex web of regulations is another area that requires a deft hand. The regulatory landscape (including legal) spans zoning laws, consenting processes, building codes, contract law, tax codes, and more. Each stage of the development life cycle is impacted by regulations—whether it’s understanding what you can build or knowing your legal rights and obligations under a sale and purchase agreement, keeping up with evolving regulations is critical to project success. By understanding and adhering to these regulations, experienced developers avoid costly mistakes and ensure smooth project completion.
4. Strong Negotiation Skills
Negotiation is an art, and the best developers are masters at it. Whether negotiating land purchases, construction contracts, or financing terms, these successful developers demonstrate exceptional negotiation skills. They know how to secure favourable deals that benefit their projects while maintaining positive relationships with all parties involved. This ensures that projects are delivered on time and within budget, even in challenging market conditions.
5. Adaptability and Risk Management
The property market is dynamic, and thus the ability to adapt to changes is a hallmark of successful developers. Those who excel understand when to take action and when to hold back. As a developer, the challenge is balancing patience and opportunity, particularly when the market is in flux. Risk management is also paramount—conducting thorough due diligence to identify potential risks early on. In some cases, avoiding risk entirely is the best approach, though this may not always be possible. Our most successful developers are prepared for market fluctuations, such as rising interest rates or cost escalations, and have contingency plans to mitigate these risks. Their adaptability ensures they can handle unexpected challenges and still deliver.
6. Exceptional Project Management
Effective project management is essential. This role, often synonymous with the developer’s work, involves meticulous planning, coordination, and execution of every aspect of a project. Developers ensure timelines are met, budgets adhered to, and stakeholders are kept informed. Strong organizational skills and attention to detail allow for the delivery of even the most complex projects successfully.
7. Innovative Thinking
Innovation is at the heart of property development, so too is the ability to think outside the box. One cannot be afraid to challenge conventional approaches—top developers seek new ways to enhance the design, functionality, and sustainability of their developments. This innovative mindset not only sets their projects apart from the competition but also advances the industry as a whole.
8. Attention to Detail
Success in property development often comes down to the details. This includes meticulously reviewing contracts, architectural plans, and construction progress. The margin for error in property development is extremely small, and unchecked errors can quickly turn into large problems. The most successful know that small details make a big difference.
9. Leadership and Team Coordination
A strong team is essential. The most effective developers excel at building, motivating, and leading teams of experts, including planners, architects, contractors, and financiers. They know that the smartest approach is to bring together the right experts, even if they aren’t the smartest person in the room. This ability to unite stakeholders is crucial for delivering high-quality, on-time projects.
10. Understanding Price vs. Value
Price is what you pay, and value is what you get. Top developers prioritise value; this might mean working with a more expensive contractor or securing a higher-quality lender with a pedigree and reputation. While such decisions may cost more upfront, they can make the difference between failure and success. This long-term view focuses on sustainable success rather than short-term gains.
Conclusion
The path to becoming a top property developer is filled with challenges but cultivating these essential qualities positions developers for long-term success. Our experience with some of New Zealand’s most successful developers shows that those who excel in these areas consistently deliver outstanding results. Whether you’re aspiring to become a developer or looking to refine your skills, focusing on these key attributes will help you navigate the complexities of the property development landscape and achieve your goals. And, of course, a little luck helps—though it’s often true that the hardest workers tend to be the luckiest.
ASAP Finance are market leaders in providing fast, simple, and effective development finance to builders and developers across New Zealand. Whether you’re tackling a large-scale project or need a tailored funding solution, our expertise will help you succeed. Get in touch with our team today