Beulah International's Jiaheng Chan discusses the success of Hallmark Ivanhoe in light of current market conditions
Local developer Beulah International recently settled on all apartments at their now complete Hallmark development in Ivanhoe - defying market trends,.
Located on Norman Street in Ivanhoe, the development was designed by Fender Katsalidis, comprising a range of one, two, three and four bedroom apartments. Featuring an exterior based on classical proportions, the project combines travertine and bronze, ensuring it fits in seamlessly and contributes to the character of Ivanhoe .
Despite the ongoing concerns surrounding the industry, 100 per cent of the luxury residences were settled within two weeks of the settlement date, with more than 50 per cent settled prior to the scheduled settlement day.
Funded locally by NAB, the project has now been fully repaid, with more than 80 per cent of bank debts paid before settlement day, highlighting Beulah’s ability to secure and repay debt early when many are facing their own challenges doing so.
Urban.com.au spoke to Beulah International Managing Director Jiaheng Chan about the project's success and Beula International's view of the current market conditions.
Urban.com.au: What do you attribute the success of Hallmark to in the current property climate? Does this reinforce the strength of the Beulah International brand?
Jiaheng Chan: Great design and delivery. Even when our homes are priced at a premium compared to nearby properties, our purchasers and the wider market see the value of our property. We believe our property's enhanced value also lifts that of the surrounding area bringing benefit to our neighbours.
This reinforces our brand as a trusted and financially strong developer that continues to deliver, taking design and liveability seriously.
U: What do you believe developments need to succeed in a tighter lending environment but also to attract prospective purchasers, particularly when there is so much competition?
JC: Developers need to remain financially strong and importantly, place a continued focus on great design-led homes. Being in the midst of uncertainties, this will allow developers to maintain the ability to deliver in tough market conditions.
U: What do you think the effects of the Banking Royal Commission report will have on the market and the way you approach developments?
JC: We are yet to see how the recommendations in the report will be adopted by the government and the market, but we will continue to monitor the progress of this and adapt accordingly.
U: Do you see the success of Hallmark as a sign of confidence in the luxury end of the market and how does this influence your thinking on future projects?
JC: We certainly observed that the luxury end has its challenges too. Australia's population continues to grow and owner-occupiers in all sectors are still looking for homes.
We see the success of Hallmark as a sign of confidence, particularly with regards to our ethos that good design matters. It reinforces that our commitment to deliver design-led homes and spaces to our residents is the right direction for Beulah.
U: And finally what are your expectations over the next 12 months?
JC: Things are changing daily so it's difficult to predict. With the changing residential market condition, we have prepared for multiples scenarios. We are cautiously optimistic about the next 12 months in the residential space and are prepared to weather the storm with the homes and spaces we are offering the market.
We are also excited to venture into the commercial office, retail and hotel sector with each having its own changing and vibrant market dynamics.