RESIDENTIAL development may be booming in the northside hub of Chermside, but it seems the market may just be playing catch up as demand continues to outweigh supply.
Brisbane City Council reports that development applications for new apartment projects have increased from 2013 and are now averaging more than two per month in Chermside and Chermside West.
Neighbourhood planning and development assessment chairman Amanda Cooper said the suburbs had been steadily growing in popularity as high-density residential areas for the past decade.
Cr Cooper said expansion of the shopping centre since the 1980s had seen continued interest around the regional husband the Chermside Centre Neighbourhood Plan, adopted in 2013, had offered more choice for families wanting to be close to jobs and services.
Developer Open Corporation has seen the demand for new residential development from all segments of the market – owner-occupiers and investors, both local and interstate.
Chermside and Chermside West are booming
Managing director Matthew McAndrew said Chermside had benefited from infrastructure and upgrades such as the AirportLink tunnel.
“The Chermside market has been undersupplied for the last few years, I think we’re just playing catch-up to the market at this point,” he said.
“There has been some holding in the area for a while and now the market has improved (the projects) have come to the market.”
But the key sites around Westfield shopping centre are starting to “dry up” according to Mr McAndrew, who is marketing the $34 million Evolve Apartments through his real estate company McAndrew Properties.
The 72-apartment project at 39 Thomas St offers a mix of one, two and three-bedroom apartments from $340,000.
Quest Serviced Apartments senior sales consultant Ian Hughes said his company showed confidence in Chermside with its second apartment project in the suburb currently under way.
Chermside on Playfield, at 38-40 Playfield St, is a $22 million investor-only development of 78 apartments.
Mr Hughes said buyers would have a guaranteed rental income, whether or not their apartment was occupied.
“This is the second Quest building in Chermside so that shows our confidence,” he said.
“We see a 25-year period there at least which provides investors with guaranteed income.”
Lennium Group operations manager Andrew Boyd doubted Chermside would become oversupplied, particularly in the townhouse market.
“There is huge demand at the moment due to a lack of buyer activity over the last five years,” he said.
“Townhouses are a scarce offering and the market, so far for us, has been highly accepting of it.”
Mr Boyd is marketing a 37-townhouse project at 853 Hamilton Rd, Chermside West.
The $18.5 million Hamilton 853 is under construction with prices starting at $484,900.
In the apartment market, Franchi Realty managing director Adrian Franchi said bigger was better and that the $18 million Affinity development would satisfy buyer needs.
Chermside and Chermside West are booming
“A lot of people are wanting to move into areas like Chermside but can’t find big enough apartments,” he said.
“Buyers are looking for quality, the kind that gives long-term growth.”
The project at 15 Kingsmill St will comprise 39 apartments from New York-style studios to large three-bedroom options, priced $239,000 to mid $600,000s.
Down the road, at 27-29 Kingsmill St, The Woodstore is also offering larger than average apartments.
About half of the project’s 45 apartments have sold. Which Property business development manager Mark Montague said buyers were drawn to the floorplan size, boutique nature of the project and competitive pricing.
Two-bedroom options start at $455,000 and three-bedroom at $675,000.
Amanda Carle, sales agent for Carbone Developments which is delivering Nature’s Edge, said Chermside’s owner-occupier market was largely downsizers.
She said the $32 million parkside project was selling fast.
“It seems that people are downsizing their homes for low maintenance and lifestyle-location living with all its fine trimmings and luxuries,” she said.
Nature’s Edge at 107 Kittyhawk Drive backs onto parkland and offers two and three-bedroom apartments from $370,000.
Source News.com.au 30 December 2014