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JULY 2018 NEWSLETTER
www.kinproperty.com.au

BEST PRACTICE FOR SECURING SETTLEMENT
Although the best way to achieve a high settlement percentage would be to engage a specialist entity, like
KIN, there are several other ways for developers to achieve great results. We have reviewed our successes over
the past few years and now share our key learnings that should help your business achieve settlement success:
INVEST TIME IN THE VALUATION PROCESS. Whilst valuations are known
to be a highly variable piece of the development puzzle, they are generally
the most important (in terms of settlement, at least). We recently completed
a project where valuations were undertaken in an area with no (that’s
right, ZERO) comparable sales available to demonstrate the value of the
product. The result? 75% of valuations at or within 10% of the purchase
price. We have heard reports of similarly circumstanced projects faring far,
far worse. The difference? A thorough strategy (we considered project timelines,
level of completeness, stock release and how to best showcase each
product type), intimate knowledge of the project (down to the finest of details)
and an attentive team. This approach, plus a good set of comparables
puts any project in good stead. On the comparables note, it also pays off to
invest time and effort in a good valuation pack, including like sales can be
very beneficial.
GET A DREAM TEAM. Set the bar high and only leave room for improvement.
Implement an operation excellence type approach, bearing in mind
that, often, you get what you pay for. Get the most out of your staff and consultants
by educating them on why they need to go above and beyond and
consider paying a little extra for that top-notch service. Most good quality
consultants will not compromise output by reducing costs. Consider mandating
some service standards, to help weed out the underperformers.
Your dream team is not egotistical and will be motivated by exceeding customers’
expectations. Always remember though, setting the bar high with
purchasers and then failing to deliver can be very damaging to your brand.
DON’T UNDERESTIMATE THE VALUE OF A SETTLEMENT SPECIALIST. Unless
you have a team of full time customer relations devotees, you should
seriously consider appointing a settlement specialist, for a number of reasons:
1) purchasers are serial demanders of time and rightly so, considering
their investment (if they don’t want constant TLC, they want your help
securing finance and planning their move-in), 2) managing expectations
during inspection and defecting processes is a fine art (knowing the Standards
& Tolerances off by heart and being able to recite them with a positive
spin are paramount, unique skills) and 3) even if you do have a dedicated
full time team, chances are, they will still need help during site intensive
project phases (i.e. valuations, pre-settlement inspections and key handover).
Our recent studies indicate that settlement rates increase by about
35% when an external settlement specialist has direct communication with
purchasers (you would be surprised by how far a bit of attention and positive
reinforcement can go). Developers often factor the cost of a settlement
specialist into their sales and marketing budget during feasibility. After all,
as many a wise man once said, ‘a satisfied customer is your best source of
advertisement’.
KEEP THE UPDATES FLOWING. Whether your project is ahead or behind
schedule, you should always keep your purchasers updated. This allows
purchasers the very important opportunity to reassess their situation, with
time to change plans, if necessary. One of the most common misconceptions
in the industry is purchaser preparedness after delayed settlement.
Where there has been no communication about project delays, often, come
KIN PROPERTY

settlement, finance approval will have expired and purchasers will be disengaged,
resulting in settlement delays. Honest communication is a wonderful
weapon. It shows integrity and accountability, resulting in timely
settlements and repeat purchasers.
“Set the bar high and only leave room for improvement.
Implement an operation excellence type approach,
bearing in mind that, often, you get what you pay for.”
BE OPEN TO FEEDBACK AND CHANGE. If you’re looking for zero defects
come purchaser inspections, think about adding an extra one or two rounds
of developer defecting and rely on your settlement specialist’s expertise
when it comes to gauging purchaser sentiment and scheduling. Better yet,
during the tender process, consider specifying additional inspections or
setting a benchmark standard number of defects tolerable to ensure your
product presents A+. This one relates back to the point about getting a
dream team. If you can’t get this one across the line with your construction
team you may wish to consider reassessing. Think about it this way, if dents
and scratches on a new car (worth not even one tenth of a new apartment)
is not OK, how could it possibly be OK for our off-the-plan apartments to
present with defects. The quality of your delivery process will directly relate
to your customer satisfaction levels.
DON’T UNDERESTIMATE THE VALUE OF A GOOD DEVELOPMENT AND
PROJECT MANAGEMENT TEAM. Not only will this help to prevent construction
delays and cost blowouts, but the flow on effect is a well finished, good
quality product, more likely to encourage repeat purchasers. Ensure your
development and project management teams (often the captains of the
dream team) have the resources and time to keep on top of your project. It
is paramount to have someone keeping everyone else accountable.
DEFECTING – ENSURING A QUALITY PRODUCT
KIN Property has long been providing builders defecting services to clients across Australia.
With the highly skilled team at KIN on board your
project, you can rest assured that your product
will be at the standard your clients expect by settlement.
We assists developers, project managers
and builders (tiers 1, 2 and 3) to satisfy their
builders defecting requirements with as little
as 24 hours’ notice. Engaging a service provider
like KIN to assist with builders defecting not
only ensures cost efficiencies, but also allows
for otherwise unrealistic turnaround times to be
achieved without compromising the quality of
output. Our team periodically undergoes training
on industry standards and tolerances. We
work with all major defecting platforms including
Aconex (Field), WebFM (OmTrack) and DefectID.
When using a live, online defecting platform,
www.kinproperty.com.au
we are able to streamline the defecting process
by assigning defects directly to our clients’ contractors.
At KIN, it’s all about saving our clients
time and helping our clients achieve product
excellence.
Get in contact if you think we could help your
business to deliver a premium product.

RECENT PROJECTS
UNION TOWER
Melbourne, VIC • Lots: 165
VOLAIRE
West Melbourne, VIC • Lots: 154
SUMMUS
Maribyrnong, VIC • Lots: 183
RYDE GARDEN
North Ryde, NSW • Lots: 784
AUSTRALIA 108
Southbank, VIC • Lots: 1105
CONSERVATORY
Melbourne, VIC • Lots: 473
MARINE PARADE
St Kilda, VIC • Lots: 22
ETERNITY
West Footscray, VIC • Lots: 62
KIN PROPERTY

YORK & GEORGE
Sydney, NSW • Lots: 199
SHADOW PLAY
Southbank, VIC • Lots: 546
SUPPLY CO
Richmond, VIC • Lots: 139
SWANSTON CENTRAL
Carlton, VIC • Lots: 1039
HAWKE & KING
West Melbourne, VIC • Lots: 74
AUTUN
Malvern East, VIC • Lots: 39
WHITE DAWN
Toowong, QLD • Lots: 60
CLASSIC
East Melbourne, VIC • Lots: 64
AVANT
Melbourne, VIC • Lots: 463
PELHAM
Carlton, VIC • Lots: 214
QUARTZ
Highett, VIC • Lots: 33
www.kinproperty.com.au

VALUATIONS AND
NOMINATIONS
Here are the cold, hard facts - 70% of off-the-plan valuations across postcodes
3000, 3003, 3006, 3141 in the last six months returned a result below purchase
price, meaning purchasers are left with a financial gap to bridge.
70%
The Situation
70% of properties valued
under purchase price
Average Valuation Difference
Valuations in the CBD, Southbank,
South Yarra and West Melbourne
have an average gap between
purchase price and current
valuation of 6.7%
6.7%
3 0 0 3 - W E S T M E L B O U R N E
Melbourne CBD Case Study
The below facts are from one Melbourne CBD project we worked on recently
20%
Requested Financial Assistance
20% of purchasers who suffered
from a low valuation requested
help from KIN to find an
alternative financial solution
Requested a Nominee
42% of purchasers were unable to
source finance and requested help
finding a substitute purchaser
42%
95%
Settlement Success
Despite the above, 95% of
apartments settled within four
weeks of the official settlement
date
There are challenging times ahead for the Australian property market but if you
want to safeguard your investment from settlement risk, reach out to one of the
KIN staff members ASAP.
KIN PROPERTY

A NEW HOME, A GROWING FAMILY
The last year has been one of growth for KIN. We moved offices and brought on several new staff members.
Having left our chic premises in South Yarra, we shifted into a charming, homely abode on Drummond Street
in Carlton, a stone’s throw from the CBD.
As well as establishing a new property management function, in line with
performance of previous years, the number of lots settled by us in 2017 was
almost 20% higher than the number of lots settled in 2016. Quite the recipe
for a growth spurt.
Whilst this transition represents a physical change in the business, KIN’s
core values and culture remain the same. All KIN staff continue to deliver
results driven customer service and risk mitigation excellence. We continue
to take an individualistic approach to all projects, creating a custom plan to
help clients achieve their goals, whether it be risk-free timely settlements
or simply meeting deadlines.
In the last six months we have welcomed seven new staff members, six of
whom are Assistant Project Managers. Their aim is to keep delivering the
high level of customer service excellence on which KIN was founded. Each
new staff member undergoes extensive and specialised training to ensure
all projects and clients are handled with supreme care and professionalism.
Over the past year, our property management team has contributed to the
growth of the KIN family. KIN Property Management’s extensive industry
knowledge and unrivalled commitment to customers means achieving the
best results for clients, time and time again. It should, however, be noted
that, whilst our property management team stays true to KIN service
standards and values, it is standalone to the traditional KIN settlements
business. This means that we are able to ensure that respect is always at
the fore when dealing with clients who have other property management
interests. Just another testament to KIN’s commitment to client customised
service offerings.
Another area of focus for KIN has been builder’s defecting. Since all KIN staff
are industry trained to have a keen eye for detail and a thorough understanding
of industry standards and tolerances, it seemed only fitting that
we expand into this space. Recently, our team has been on-site conducting
defect inspections for developers, builders and project managers. We view
builders defecting as a way of ensuring client happiness. For builders and
project managers, it can assist by cost-effectively satisfying contractual
obligations and for developers, it ensures that product delivery standards
are kept high and purchasers are content. In a world where purchasers are
spoilt for choice, this can only be a good thing.
We hope the theme of growth continues into the next financial year. However,
our main aim, as always, is maintaining the highest levels of client
satisfaction. We will continue to strive for excellence and ensure that our
offering remains the premium, marketing-leading service you are used to.
www.kinproperty.com.au

KIN STAFF MEMBERS
Kerren McNamara
Managing Director
Anne Paciocco
General Manager
Shannon Barker
Manager & OIEC Property Management
Donna Fleming
Accounting & Administration Manager
Jake Barker
Marketing Coordinator
Karin Jacobsen
Project Manager
Jenny Roche
Project Manager
Pippa Wright
Project Manager
Natalie Hanrahan
Project Manager
Lisa Dixson
Project Manager
Sally Clarke
Project Manager
Eeshan Ng
Project Manager
Amanda Grist
Project Manager
Kelly Coutts
Assistant Project Manager
Netta Regnani
Assistant Project Manager
Ellen Vacouftsis
Assistant Project Manager
Samantha Warrick
Senior Property Manager
Maria Shi
Assistant Project Manager
Amy MacMillen
Assistant Project Manager
Charlene Guan
Assistant Project Manager
Carla Ford
Assistant Project Manager
Anne Paciocco | +61 (0) 412 202 253 | anne@kinproperty.com.au | kinproperty.com.au
KIN PROPERTY