Utility infrastructure is one of the areas that developers are consistently reviewing in order to save precious capital costs. Utility pricing has become a hot topic in recent years, and not just for energy consumers. As developers face rising costs in a strengthening market, they are looking for innovative ways to reduce capital expenditure, while delivering advanced technology to their customers.
Why Go Bulk?
Bulk utility supply has some obvious benefits for both Developer and the end user. Buying anything in bulk saves money and the same is true for electricity. This means that levies will be lower and is a strong incentive for purchasers in the market.
Making sure the right user pays for their accurate consumption is another strong incentive for owners and can be achieved through an embedded network system.
In a market constantly growing with competition, it is important for developers to have a unique selling proposition.
Below are the benefits that you could be passing on to owners by implementing an embedded network in your development.
Electricity
As far as utilities go, electricity is usually the most compelling argument for communities. In the current Strata market, we are seeing large scale strata communities taking advantage of bulk electricity discounts. Some schemes saving up to 50% off their bill. Not only do residents benefit individually, but the Body Corporate also takes advantage of the increased purchasing power. As a result, significant savings can be made on common property electricity charges.
With utility charges often being one of the largest costs to a Body Corporate, any savings in this area can have a significant effect on lot owner contributions. This creates more buy-in interest from potential buyers.
Hot Water
Centralised hot water systems provide a cost effective and environmentally friendly alternative to individual heaters for each apartment.
Air Conditioning
As with hot water, centralising the air conditioning system can provide both economic and environmental efficiencies. A centralised air conditioning plant can also save space, depending on the type of plant used. Once again, it is important to install appropriate metering to ensure the cost of this service is passed on directly to the user, helping to keep levies as low as possible.
Gas
By allowing gas to be purchased in bulk in your development, this will allow the Body Corporate to pay for the gas cost up front and then on-charge residents based on actual metered consumption. This will be particularly beneficial if you are considering implementing gas stove tops in your next development.
Fibre Optic Networks
Fibre Optic Networks can also be a selling point for developments when included in an embedded network system. Multiple users can benefit from the higher connection speeds that are gained through fibre optic networks.
Want to know more?
Many providers can offer cost neutral packages where the provider covers the full supply and installation costs for the developer making it a win for both the developer and future savings to be had by the Body Corporate.
If you wish to discuss how your next development could benefit from bulk utilities, please feel free to get in contact with SSKB https://www.stratadeveloper.com.au/contact-us/
Prepared by SSKB
