29 Dec Melbourne’s shift in transportation habits – Part 3 – Autonomous Cars
Property offerings and how developers choose to incorporate autonomous cars into these will be a crucial area in the years to come. Companies like Uber, Lyft, Lime, and Bird provide opportunities for developers who are looking at innovative ways of securing customers and building products outside the rigid historical model.
We are now witnessing developers innovate with their offerings by purchasing smaller parcels of land and synergising these with ride sharing companies, unlocking new avenues of transportation options for their customers without the necessity to build costly parking space and/or be located near transport amenities.
Instead of prioritising parking space and spending an exorbitant amount of money on early works in digging the underground spaces, developers could eliminate this cost and focus on working in tandem with these aforementioned companies to create more usable and high-value urban space.
This in itself could attract a premium, and in doing so restructure our pricing and financing models considerably. Another area under threat is high-value property in urban areas that generally account for mandatory parking allowances, which forces developers to include these costs into their construction and rent models.
These narratives around parking allowances will become more important as it’s a potential tool to create greater mixed-use, transit-orientated development and will accelerate the fashion of outer-city living.
Finally, small high-density apartments could face downward price pressure, especially those in the luxury range of the market, as less traffic and higher travel speeds will make these products offerings less appealing in contrast to larger options that are further out.
Bigger lots, more scenic environments (e.g. waterfronts), and close proximity to major cities and towns, all these aspects will become key selling points for developers working in suburban areas with the arrival of autonomous vehicles. No longer will these offerings be subjected to the requirement of owning a car or needing to be near some form of important public transport.
Suddenly those living in the inner city purely because of their transportation needs will be looking to these developments with increased appetite. This presents a raft of opportunities for developers that operate outside the inner-city confines and will be an area to watch intensely.
As we careen towards a society increasingly revolutionising the way we get around our cities, developers and policymakers alike are going to need to adapt and put forth innovative ideas to secure the backing of our future populaces.
I for one am incredibly excited.