EP49: Why Most Small Property Developments Fail (And How to Avoid It) — With Karlie Wolfe

Episode Summary:

In this episode, I sit down with Karlie Wolfe, Senior Director of Residential Development & Advisory at Opteon, to unpack how professional valuers assess development feasibility and what really determines whether a project stacks up.

Karlie brings over two decades of experience valuing residential development projects across Western Australia—from small triplex sites to large-scale apartment towers. We dive deep into the numbers behind development: how land values are calculated, why construction costs are crippling some projects, and what junior developers often underestimate when they first get started.

If you’ve ever wondered how banks evaluate development deals, why certain projects never get built, or what separates profitable developments from financial disasters, this episode is essential listening.

Key Topics Covered✅ How valuers assess development feasibility for banks and developers

✅ The key factors that determine whether a development site is viable

✅ Why location, site shape, and topography dramatically impact profitability

✅ The residual land value method used to calculate what developers can afford to pay

✅ Why construction costs are the biggest challenge facing developers today

✅ The difference between small-scale townhouse developments and large apartment projects

✅ Why Perth has a “dead zone” in medium-density apartment supply

✅ The ongoing supply shortage driving Perth property prices higher