Not all sites are created equal. To ensure your next property development project gives you a great profit, discover the key factors to look into when choosing a site.


“Location, location, location.”

This is an age-old mantra that’s prevalent in the property industry—and rightfully so. After all, location alone can make or break a property development project or investment.

When it comes to selecting the optimal piece of land, a mix of data-driven insights and established industry knowledge is a must. To help you make favourable decisions, this article will look into the five key factors for choosing a site or property location.

But first, we must get clear on one thing.

Why Location Matters

The reality is that various locations show patterns that can highlight their transition from obscurity to commercial prominence. At the same time, understanding geographical nuances will clue you in on a site’s potential hazards, for instance.

All these will help you determine whether or not a site is worth developing. 

Remember that your decision goes beyond merely purchasing a site. You’re also investing in your future wherein your chosen site can either be a significant asset or a liability to you. So, you need to tread wisely.

5 Factors to Consider When Choosing a Location 

In real estate, there’s a widely recognised principle: 

While buildings can be modified, locations are permanent. 

So, the importance of making an informed decision about a property’s location cannot be overstated. With that in mind, here are the five critical factors that determine the potential and value of a property:

Factor #1. Economic and Market Trends

Economic indicators give a clear picture of a location’s present status and potential growth. For instance, stable job growth, low unemployment rates, and the rise of sustainable industries are positive signs.

It’s also beneficial to consider the economic resilience of the area. Understand how it weathered past economic downturns. In particular, look into the diversification of industries in the region. They act as safeguards against economic shocks, offering more stability to property values.

Furthermore, keep a close watch on a location’s market dynamics. Consistent property value appreciation, competitive rental returns, and tangible buyer interest are some good indicators.

Also, make sure to analyse historical property sales data. An in-depth knowledge of the supply-demand balance can also provide insights into the potential of a location.

Ultimately, locations reflecting positive attributes in this factor are likely to experience long-term value appreciation.

Archistar makes it easy for you to determine that. The platform’s  property data layers lets you immediately access information on market trends, median prices, sold properties, and even nearby developments. And the in-depth market and project data it will give you is reliable, as it’s sourced from trusted platforms like Domain, CoreLogic, and BCI. 

Factor #2. Development Potential

Look into both redevelopment trends and future development plans of the region. Historical trends can provide you with insights into areas poised for regeneration or transformation. And as you know, future infrastructure projects or proposed amenities can significantly impact property value.

So, engage with local planning offices or community councils as you do your due diligence. Get firsthand information to ensure the project you’re planning aligns with both current regulations and future community aspirations.

Also, tap into Archistar’s  Development Potential feature to effortlessly find sites with untapped development potential. This tool streamlines the site selection process for property developers by consolidating crucial planning rules from over 25,000 sources.

Remember, understanding local guidelines will help you devise a compliant and efficient plan. Not to mention prevent unexpected complications and expenses.

Factor #3. Zoning and Regulations

It’s never enough to choose a site based on its appeal. Before making a decision, it’s essential to review the location’s zoning rules and local guidelines. These outline what and how you can build in that location. 

Also, there may be additional guidelines on construction, mandate specific design features to match local aesthetics, or enforce environmental protection measures. With increasing emphasis on sustainability, there may also be guidelines for eco-friendly construction.

Regular consultations with local planning authorities can provide you with clarity on evolving regulations. They can also advise you on any potential changes in the pipeline. It’s also beneficial to engage with local architects or builders. They are likely experienced in dealing with specific regulations in the area. As such, they can provide you with practical insights. 

To complement those discussions, leverage Archistar. 

 Archistar’s planning and zoning layers can provide you with a comprehensive overview of zoning and planning rules for your chosen site. For instance, you can note the maximum height limit in a particular area through its max building height layer feature.

With Archistar, you can immediately note any restrictions, risks, or heritage considerations that might affect your potential development.

Factor #4. Land Attributes

A location’s geographic features can shape your property development project. After all, there are areas more at risk from natural threats like bushfires, floods, or landslides. Knowing the risks in a particular location can help you in planning safer and more resilient properties. 

For example, in bushfire areas, using fire-resistant plants and materials around the property is key. In flood zones, you might consider elevated building designs. It’s not only about building safety but also aesthetics. Modern buyers value safety as much as beauty. 

So, by addressing these geographical challenges head-on, you’re not just building structures that last but also gaining the trust of future property owners or tenants.

You can take advantage of Archistar’s property research features to instantly understand your site’s land attributes and associated risks. Use its 3D terrain, flood layer, and bushfire layer features to identify, and even visualise, the potential risks in a specific property.

Factor #5. Community and Demographics

The character of a location is significantly influenced by its residents. So, assessing local demographics can offer insights into the characteristics of the residents and their needs. Such insights can also hint at desirable amenities that you can spearhead that’ll likely result in profit.

Distinctive cultural attributes might also lead to specialised markets or events. What’s more, an active community spirit, evidenced by local activities or safety measures, can enhance a location’s appeal. 

Make an Informed Decision Through Resources and Expert Consultation 

In the complex domain of property investing and development, accurate data is essential. And Archistar can provide you with all that—and more.

Central to this is the Archistar platform

The platform  goes beyond traditional research, combining innovation with expertise to aid in your selection of the ideal location for your next property development project. It can provide you with detailed insights into market trends, property dynamics, and other location-specific data. 

As a result, you can make decisions with greater precision. Ultimately, you can ensure your property investments or development projects can yield maximum returns.

Try out Archistar for free today to see how you can leverage it to find the site for your next profitable property development project.