Residential Development – the final frontier for Embedded Networks
Embedded networks are on the rise in Australia, with around 500 large-scale and thousands of smaller networks already established.
Embedded networks are created when all services supplied to a development, such as electricity, hot water, drinking water and broadband, are configured to allow the owner of the site to sell the services to the tenants or residents.
This is already common practice for developments such as shopping centres, retirement villages and apartment complexe. But there is a vast, untapped potential in large-scale, residential developments where entire neighbourhoods could be operating in this way.
Benefits all round for property developers and end users
For developers who build, retain and manage sites, embedded networks can provide an income stream to offset building maintenance costs. This offset can then be used to benefit property purchasers through reduced owner corporation fees. This also benefits developers who build to sell as it offers an attractive point of difference for prospective buyers.
Future tenants and owners can also benefit financially from embedded networks because they become part of a bigger buying group. This creates more bargaining leverage, and can often achieve lower agreed rates for utility services.
Embedded network one-stop shops
There are a number of providers offering a comprehensive package of embedded network services. Operators such as Arc Energy Group organise co-ordinated connections and negotiate competitive pricing on aggregated utility services for a new development. This can save developers a great deal of time, hassle and money.
“Developers can enjoy up to $1,200 in savings per unit”, Arc Energy Group says.
In addition to bargaining hard with utility suppliers and project managing the roll out of utilities on site, these providers can also set up ongoing accounts for each unit, and manage the maintenance of the embedded networks within a development.