Assessing the Importance of Property Development Risk Factors

Author/s: Graeme Newell, Mark Steglick

Date Published: 1/01/2006

Published in: Volume 12 - 2006 Issue 1 (pages 22 - 37)


Property development makes a significant contribution to the Australian property industry and economy. However, property development is inherently risky, with a number of risks evident throughout the property development process. From a survey of leading property developers in Australia, the importance of 34 property development risk factors is assessed. The most important property development risk factors identified were environmental risk, time delay risk and land cost risk.

Download Full Article

Download the Full Article PDF

14445921.2006.11104197.pdf 14445921.2006.11104197.pdf (114kB)


Environmental Risk - Land Cost Risk - Property Development - Property Development Stages - Risk Factors - Time Delay Risk


  • Australian Property Institute (2004), Professional Practice 2004. APCanberra.
  • Booth, P., Matysiak, G. and Ormerod, P. (2002), Risk Measurement and Management for Real Estate Investment Portfolios. Investment Property ForuLondon.
  • Byrne, P. (1996), Risk, Uncertainty and Decision-making in Property Development. E & F N SpoLondon.
  • Cadman, D. and Topping, D. (1995), Property Development. E & F N SpoLondon.
  • Cameron, S. (1990), Managing interest rate risk in real estate development. Journal of Applied Corporate Finance 72-79.
  • Dullisear, R. (2001), Checklist helps tick off how to avoid pitfalls during development. Australian Property Journal 3509-514.
  • Ernst & Young (2002), Economic Impact of the Development Industry in Queensland, 2001/02. Ernst & YounSydney.
  • Ernst & Young (2003), Economic Impact of the Development Industry in NSW, 2001/02. Ernst & YounSydney.
  • Markham, J. (2001), Development finance: analysing structures here and internationally. Australian Property Journal 3695-703.
  • Miles, M., Haney, D. and Berens, G. (2000), Real Estate Development: Principles and Process. Urban Land Institute: Washington.
  • Pyhrr, S., Roulac, S. and Born, W. (1999), Real estate cycles and their strategic implications for investors and portfolio managers in the global economy. Journal of Real Estate Research 17-68.
  • Standards Australia and Standards New Zealand (1999), Australian/New Zealand Standard: Risk Management - AS/NZ 4361999.
  • Tan, Y.K. (2004), Is development good for LPTs? Property Australia 19(350-51.
  • UBS (2005), Real Estate Monthly Report: January 2005. UBS: Sydney.
  • Urban Development Institute of Australia (2003), The Development Industry - NSW’s Engine Room. Developers Digest 12-13.
  • Whipple, T. (1988), Evaluating development projects. The Valuer (Oct158-170.