Why build a simple apartment block when you can build a neighbourhood?
These new Brisbane and Gold Coast developments have embraced lifestyle and leisure in their latest offerings.
This multi-stage development in Brisbane’s south is more than just a housing block; it’s a new neighbourhood.
As a budding urban village, Yeerongpilly Green comprises boutique apartments and townhomes, along with employment, medical and education facilities to be completed over the next 10 years.
Currently for sale off the plan are one, two and three-bedroom north-facing apartments, penthouses and terraced homes.
The project’s “village heart” will include a full-line Woolworths supermarket, retail shops and restaurants, and lifestyle amenities including a cinema, gym, healthcare and childcare facilities, alongside restored heritage buildings and three office blocks.
Neighbouring the development is the Ashley Cooper Riverwalk and historic Brisbane Golf Club, along with the Queensland Tennis Centre and Yeerongpilly train station.
The site is owned by the Queensland government, who partnered with the private sector to bring the desirable riverside land back into community use. So far, $70 million has been spent on core infrastructure.
Chief executive officer and executive chairman of Consolidated Properties Group Don O’Rouke said a key focus of the development was innovative architecture made for Brisbane.
“It’s high-quality architecture and it’s made to take advantage of the sub-tropical climate that Brisbane has, so an emphasis on cross-flow breezes, correct sun orientation – there’s definitely that focus on sustainability,” he said.
“We’ve paid particular attention to room sizes, ceiling heights; we really applied a fine-toothed comb to each element of the apartments from the outside down to the size of the broom closet.”
Mr O’Rourke said purchasers could have peace of mind knowing that the vendor was the state government and that the project had engaged Australia’s largest private contractor Hutchinson Builders.
“We have a sunrise date, so we have a guarantee to our purchasers that we will start construction of a stage on a particular date, so they’re not sitting in limbo,” he said.
Prices range from $460,000 for a one-bedroom apartment to from $975,000 for a penthouse, and from $1.275 million for a townhome.
Yeerongpilly Green is located at 28 Godiva Avenue, Yeerongpilly, Queensland.
For more information, contact the sales team on 1300 855 460 or visit https://www.domain.com.au/project/3707/yeerongpilly-green-yeerongpilly-qld/.
A sales centre is open daily from 10am to 5pm at 21 Queens Way, Yeerongpilly.
Estilo on Kittyhawk
In the north Brisbane suburb of Chermside, this new development offers one to four-bedroom apartments beside 73 hectares of lush parkland.
Three and four-bedroom apartments have already been snapped up, with only one and two-bedroom residences remaining and move-in ready.
The project has appealed to both owner-occupiers and investors, with 5 per cent yields on both one and two-bedroom apartments.
Estilo is located in the northern part of the suburb, with easy access to cycling and walking tracks in the nearby park and of course to Westfield Chermside, a major shopping centre and dining precinct.
Marketing and sales director Samuel Gardener said this proximity made for a key selling point.
“The site offers fantastic accessibility to both the parkland and Westfield [shopping centre], including the main bus hub for transport,” he said.
“Walkability is the key to the location, and peace and quiet with the parkside locale.”
On-site amenities include a heated pool and recreation or function space on the ground floor, a rooftop recreation space with dining and barbecue areas, and a community herb garden.
Interiors feature Ceasarstone benchtops, Bosch appliance and German tapware, porcelain tiles, noise-cancelling glazing, and wool carpets, as well as zoned and ducted airconditioning.
Mr Gardener said there were several aspects of the development that set it apart from others in the market.
“The design and quality of the interiors and exterior of the apartments is a key physical differentiating factor to other apartment complexes within Chermside,” he said.
“The parkside position and accessibility to Westfield Chermside are also valuable drawcards, but what is most impressive is the sense of community within Estilo on Kittyhawk.
“Since completion, we have seen the growth of this prospering community with resident-driven functions, wine tastings, fitness classes, vehicle and herb sharing platforms, and even a car washing service!”
Prices start at $344,000 for a one-bedroom apartment and $397,000 for a two-bedroom apartment.
Estilo on Kittyhawk can be found at 91 Kittyhawk Drive, Chermside, Queensland.
For further details, contact Sandra Gardner on 0413 430 896 or visit https://www.domain.com.au/project/2842/estilo-on-kittyhawk-chermside-qld/.
Situated in a prime waterside location on Hope Island, this retirement development will offer 300 apartments and villas, alongside 150 metres of water frontage.
Touted as “the Gold Coast’s most luxurious retirement community”, Esperance offers bountiful amenities, proximity to nature and picturesque surroundings.
On offer in the first stage of development are two-bedroom, two-bathroom homes and three-bedroom penthouses with water and island views.
The project will be home to a host of amenities, including a cinema, bar, cafe, library, private function and dining rooms and outdoor entertainment spaces.
For health and wellness, residents will have access to indoor and outdoor pools, a gym, yoga studio, hair and beauty salon, and outdoor exercise spaces.
The development also plans to incorporate aged care living options.
Outside Esperance, residents will be close to the shops and eateries of Hope Island Marketplace, as well as jetties and beaches for keen boaters or kayakers.
Reside Communities chief executive Glen Brown said the development stood apart from standard apartment or townhouse living in its services, facilities and social opportunities for older residents.
“Esperance has been uniquely tailored to meet the needs and expectations of today’s generation of active and independent retirees based on research undertaken by Reside,” he said.
“Our research has found top priorities for Gold Coast retirees include proximity to the water, independence, convenience, security, privacy, freedom of choice, social connections, and an experienced and trustworthy operator.
“Travelling, health and fitness, volunteering, and spending quality time with families and grandchildren are among their most desired leisure time activities.
“Esperance has been carefully created to offer all this and more right in the heart of the highly sought-after Gold Coast North Shore.”
Construction of the project’s first stage is due to begin in early 2021, with a build time of 12 to 15 months.
Prices start at $550,000. Esperance is located at 2 Sickle Avenue, Hope Island, Queensland.
For more details, contact Esperance Sales on 0490 003 162 or visit https://www.domain.com.au/project/4150/esperance-hope-island-qld/.
A sales suite is open on-site between 10am and 3pm, Tuesday to Saturday.
This article is republished from https://www.domain.com.au/ under a Creative Commons license. Read the original article.
Brisbane-based fund manager Cromwell will add the former Flight Centre headquarters at 545 Queen Street in Brisbane to its managed portfolio.
Settlement is imminent for the $117.5 million acquisition being sold by Axis Capital, which bought it in 2017 for $70 million, in a deal that requires Foreign Investment Review Board approval.
The 13,300sq m, A-grade office building is located on a 2735sq m parcel of land at the entrance to the Brisbane CBD’s ‘Golden Triangle’ and has undergone an extensive refurbishment programme.
Hamish Wehl, Cromwell’s head of retail funds management, said the property fit its target profile with 88 per cent of income derived from the federal government, as well as listed or multinational tenant-customers
“The current interest rate environment has made things challenging for investors searching for opportunities that meet their income needs.
“Cromwell is actively seeking additional assets that will help DPF meet its objectives and benefit unitholders even further,” Wehl said.
DPF, which started in 2013, owns seven office and retail assets—in Queensland, New South Wales, Victoria, South Australia and ACT—outright and has exposure to a further three with a total value of just over $1 billion.
Wehl said the fund had been strongly supported by local investors who are paid a monthly dividend averaging 5.8 per cent a year.
The transaction was negotiated by CBRE’s Peter Chapple, Bruce Baker, Flint Davidson and Stuart McCann.
“We have seen a strong increase in buyer demand for high quality, multi-let Brisbane office towers, with long-term investors backing that there will be a flight to quality as tenants seek to upgrade to prime grade CBD and metropolitan office assets,” Baker said.
Brisbane’s renowned Golden Triangle has been subject to a number of high-profile transactions in recent years.
The tower, at 410 Queen Street, sold for $53.5 million to local development and investment group PGA Properties early last year.
Dexus and Canada’s CPP Investment Board also recently sold Brisbane’s 10 Eagle Street office tower for $285 million to Brisbane-based investment manager Marquette Properties.
Speculators back in the game to push up property prices
Investors in residential property have come out of hibernation and were the driving force behind the record 5.5 per cent increase in housing finance in March.
Having kept a low profile during the pandemic, investors and speculators are now returning to the market with gusto. And that suggests only one thing – home prices will continue to be pushed higher.
The colloquial definition of what turns a housing boom to a housing bubble is the increasing participation of investors. Judging by the latest numbers from the Australian Bureau of Statistics (ABS) investors could soon replace first home buyers as key drivers of the red-hot property market.
The 12.7 per cent increase in financing to investors dwarfed the (already strong) 5.2 per cent increase in finance to owner occupiers. And the value of those loan commitments to investors is up 54 per cent on March last year.
And the phoenix-like rise in housing investors has coincided with early signs of a peak in demand for finance by first home buyers whose participation in the housing market appears to be running out of steam. In March first home buyer finance fell by 3.1 per cent (seasonally adjusted), according to the ABS.
The levelling out of first home buyer demand was only ever a matter of time as this group would ultimately come up against the barrier of affordability.
Government assistance and low interest rates spurred demand from first home buyers last year but as prices have moved up the window of opportunity has narrowed. Meanwhile, some of the robust demand from those making their first move into property is thought to have been pulled forward.
Investors deserted the residential property market in response to COVID as rents and returns fell as did values in the early stages of the pandemic. The apartments segment was hit particularly hard as immigration disappeared.
While rents remain at historically low levels, there are clear signs that rental increases are starting to come through – particularly in the outer suburbs of capital cities, the smaller capitals and in regional areas. In March rents rose by 0.6 per cent in Sydney and by 0.2 per cent in Melbourne according to CoreLogic
But the broader enticement for investors is capital gains on offer in the housing market, which is now in full swing. Prices nationally rose by 1.8 per cent in April and by 2.8 per cent in March and careered ahead 6.8 per cent over the past three months.
For big banks lenders the return of the residential property investor could provide them a new source of demand growth in the event the first home owner market continues to run out of puff.
Despite historically low interest rates, the banks say they are not seeing any deterioration in the quality of their loan books. This is despite intense competition among bank and non-bank lenders to capitalise on the demand for housing finance driven by low rates.
Westpac’s accounts for the six months to March, which were released this week ,showed that only 2 per cent of customers were behind on repayments – a level that has remained the same for a year.
For the most part the banks are arguing that there is no need to apply any macroprudential brakes to the housing market.
But history tells us the rise in investor participation also sets off alarm bells within the regulatory agencies, the Australian Prudential Regulation Authority (APRA) and the Reserve Bank.
Both have been disinclined so far to wade into the rapidly heating property market and introduce measures that will hamper first home owners. But regulators have plenty of form in targeting the more speculative investor cohort with macroprudential tools. And the banks will need to avoid the riskier lending that has traditionally been associated with financing investors.
’The resurgence in investor financing and the continuing surge in owner occupiers who are trading up points to further near term strength in home prices,” according to AMP chief economist Shane Oliver.
“It also points to a further acceleration in housing debt, a further rise in the share of interest only loans and increasing lending at high loan to valuation ratios. All of which is increasing pressure on the RBA and APRA to move to tighten lending standards in order to head off increasing risks of financial instability – which we expect to occur sometime in the next six months.”
Cromwell buys in Brisbane and on the hunt for more properties
Cromwell Property Group has confirmed it is buying the former Flight Centre headquarters at 545 Queen St, Brisbane, for $117.5 million.
Hamish Wehl, Cromwell’s head of retail funds management, said the refurbished office building in the Brisbane CBD’s so-called “Golden Triangle” was purchased for its Direct Property Fund (DPF), a retail investment vehicle.
“We are actively looking for further acquisition opportunities,” he said.
“The fund remains open, we’re seeing attractive investment inflows and it’s all about acquiring the right property that suits the return profile of the investors.”
He said DPF has been strongly supported by “mum and dad investors” who are paid a monthly dividend averaging 5.8 per cent a year.
DPF, which started in 2013, owns seven assets outright and has exposure to a further three with a total value of just over $1 billion . All but one – a Bunnings in South Australia – is an office building.
Mr Wehl said office will remain a focus for DPF though there is scope to invest in other sectors, depending on returns.
“We are cautiously optimistic in the current environment and think the office sector as a whole will always be relevant for white collar employment,” he said.
“It fosters innovation, creates and maintains workplace culture.”
He added: “There’s still a bit to play out from last year’s fallout [and] if we see quality property that is attractively priced within the retail and industrial sectors, the fund has the ability within its investment mandate to acquire those assets.”
Cromwell bought the 13,000sq m building – now 100 per cent leased with average weighted expiry of 4.1 years – from Axis Capital, which paid $70 million in 2017 shortly after Flight Centre moved to other premises and left it mostly empty.
Axis Capital refurbished and repositioned the building, leasing it up before selling to Cromwell on a yield of 5.9 per cent.
The sale required Foreign Investment Review Board approval due to the large stake activist investor, ARA Asset Management, based in Singapore, has in Cromwell.
The transaction was negotiated by CBRE’s Peter Chapple, Bruce Baker, Flint Davidson and Stuart McCann.
Brisbane CBD has sprung back to life after the quiet 2020, with at least four other major properties still on the market. Total transaction value this year is expected to exceed $1 billion over the next two months.
The catalyst for the listings surge has been strong post-COVID-19 prices paid for office towers at 10 Eagle Street, which fetched $285 million, and 310 Ann Street, sold to Ashe Morgan for $210 million.