Melbourne-based developer Buildcap is facing down headwinds in Brisbane’s apartment market, unveiling plans for boutique apartment project in Brisbane’s Kangaroo Point.
The developer is confident of sales at the future seven-storey development at the 525sq m site at 75 Main Street, which is located on one of the few remaining slices of land to be developed in the riverside suburb, about 5 kilometres from the CBD.
The $30 million project, dubbed The Holman, will feature a range of 13, two and three-bedroom apartments, with views of the Brisbane skyline, Story Bridge and Captain Burke Park.
While sales have slowed across Brisbane — in keeping with a cooler market, Buildcap with a portfolio of $300 million currently under management, has continued to press forward with a diverse range of projects along Australia’s East Coast.
Buildcap director Stuart Biggs said he was confident of his new project given its lifestyle proposition within a highly desirable location.
“There is nothing of this calibre on the northern edge of the Kangaroo Point Peninsula,” Biggs said.
“This truly is the ideal spot for anyone looking for the perfect fusion of panoramic city vistas and thoughtful, meticulously designed opulence inside.”
The project is designed by Brisbane-based architecture firm WallaceBrice, which has designed a number of multi-residential developments.
The development will feature private balconies, patterned brickwork, premium furnishings and integrated landscaping, including a communal roof terrace with plunge pool.
“Multi-residential design is WallaceBrice’s forte, they have an exceptional understanding of how individuals live, work and play, and they exude design excellence,” Biggs said.
“The way The Holman responds to its local surrounds means this design will undoubtedly stand the test of time and for Kangaroo Point, it is a sleek but monumental design.”
Brisbane’s recovering apartment market
Brisbane’s apartment values, “an oversupply hangover”, are finally expected to recover in 2020 after a tough few years following the apartment construction glut.
Many industry professionals have noted that the units still available for sale in the city are gradually being absorbed according to the Real Estate Institute of Queensland — particularly in the investor sector.
The state budget’s investment in economic development was also predicted to boost house prices in regional areas in the year ahead.
The latest REIQ market monitor reveals that while unit prices have stabilised, they remain in the softening sector of the market cycle.
CoreLogic-Moody’s Analytics has mirrored the sentiment in its recent home value index, forecasting that Brisbane’s apartment values were predicted to recover in 2020 following the construction boom and excess supply between 2013 and 2016.
Unit rental yields have also remained steady over recent months across Greater Brisbane, ranging from 4.3 per cent to 6.5 per cent.
Brisbane rents: Landlords in ‘rosier position’ as unit oversupply eases
Brisbane rents are creeping up and the proportion of vacant homes is inching down, as the city’s rental market recovers from years of oversupply, experts say.
Asking rents for units rose 1.3 per cent to a median $380 a week over the past year, the latest figures from the Domain Rental Report for the September quarter show.
House rents also edged up 1.3 per cent to a median $405 over the same time period, according to the report released on Thursday.
The combined vacancy rate fell 0.1 percentage points to 2.2 per cent during the September quarter.
It comes after a wave of new apartments were built in Brisbane’s inner city in recent years, with the extra supply keeping a lid on rents.
Domain research analyst Eliza Owen said the market was now in good health, despite appearing to be near-stagnant.
Median weekly asking rents for units
|REGION||SEP-19||JUN-19||SEP-18||QOQ % ∆||YOY % ∆|
|Brisbane – City wide||$380||$380||$375||0.0%||1.3%|
|Brisbane – East||$405||$405||$400||0.0%||1.3%|
|Brisbane – North||$370||$365||$363||1.4%||2.1%|
|Brisbane – South||$385||$380||$375||1.3%||2.7%|
|Brisbane – West||$400||$415||$390||-3.6%||2.6%|
|Brisbane Inner City||$420||$425||$410||-1.2%||2.4%|
|Moreton Bay – North||$315||$315||$310||0.0%||1.6%|
|Moreton Bay – South||$340||$335||$335||1.5%||1.5%|
For units, the stability was a positive story compared to oversupply-induced market weakness a few years back, Ms Owen said.
“There’s been a lot of fear about over-development but in the building space there’s been tightening of dwelling completions,” she said. “They’ve come down sharply and are returning to long-run average levels.”
Rents were now trending up and vacancy rates down, she said.
“The picture for south-east Queensland in terms of rental returns is pretty good, it’s also one of the most affordable rental markets for houses.”
Ms Owen said interstate migration, mostly from Sydney, was a major factor in keeping the rental market balanced.
“The tightening of the rental market is off the back of strong population growth and a very affordable lifestyle, and this is reflected in the rental vacancy rate which is down to 2.2 per cent from 2.6 in the previous year,” she said.
Investec Lists Fortitude Valley Office Tower
The newly-listed Investec Australia Property Fund will divest its 11-storey Fortitude Valley office building with an expected price north of $90 million as it moves to recycle capital.
Fresh off the heels of its fully underwritten institutional placement and purchase of three industrial properties in the Northern Territory, Western Australia and South Australia for $84 million last month, Investec has motioned to sell its Brisbane, 757 Ann Street, tower.
Investec purchasted the Nettleton Tribe-designed tower for 68.5 million after it was completed in 2014.
Comprising 9,422sq m of office space with a weighted average lease expiry of approximately five years, the A-grade building, anchored by technology company Asea Brown Boveri, is 100 per cent leased.
Cushman & Wakefield’s Mike Walsh and Peter Court are managing the international expression of interest campaign, to kick off mid-October, with expectations it will generate strong interest from domestic and off-shore institutions, funds and syndication groups.
“The entire commercial component of the asset is structured on a net lease basis, providing smooth, predictable cash flow for investors,” Court said.
Sales over the first half of the year surpassed the total volume of sales over 2018—reaching $1.2 billion, according to Colliers research, with Australian institutional investors dominating the lion share of transactions.
Commercial assets currently on the market include Perth-based investor RG Property’s 410 Queen Street in Brisbane’s ‘golden triangle’.
Recent Brisbane assets changing hands include the sale of the Jubilee Place Office development at nearby 470 St Pauls Terrace to a real estate fund managed by Credit Suisse, Malaysian-backed HCK’s 116 Adelaide street for $30 million, and QIC’s Q&A Centre at 141 Queen Street and 140 Elizabeth Street which sold to Taiwanese developer Shayher Group.
As for development plans in the Fortitude Valley precinct, Sydney fund manager Millinium Capital in August announced plans for a new university campus and 30-storey tower that would comprise student accomodation, co-living and co-working space at 240 Brunswick Street and 11 Overells Lane.
Australian property management startup raises $3.5 million, expands to Brisbane
Australian proptech startup :Different has announced it raised $3.5 million in its latest funding round to continue its national expansion.
The fund raising coincides with the company’s launch into Brisbane today.
:Different is a full-service property management startup where property owners pay a fixed fee of $100 per month instead of a percentage based on the rental price of the property.
The appeal of :Different is their tech base which automates the everyday tasks of a property manager.
:Different’s owner app provides 24/7 access to documents like lease agreements, statements, and maintenance requests, while the tenant app helps streamline requests and fast track communications.
Over the last 12 months, :Different’s customer base has grown five folds with more than $700 million worth of properties now under management across New South Wales and Victoria, while its team has quadrupled to 32.
The latest funding round supports :Different’s ambitions to expand into new markets, further enhance its tech platform and continue to build its team of expert property managers, said Mina Radhakrishnan, Co-Founder at :Different.
“We’ve already had huge success since launching in Sydney and Melbourne, and we’re thrilled to offer the same great offering to Queenslanders,” Radhakrishnan said.
“We have big growth ambitions for :Different. This latest funding round will help us continue to rebuild property management in Australia and beyond.”
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