Brisbane is preparing to add a succession of new major development projects to its ever-changing skyline.
Australia’s third-largest city recently welcomed the completion of the $1.1-billion second runway at the Brisbane International Airport and has been boosted by a $50-billion infrastructure and transport pipeline. The city is also lining up an Olympic bid.
While Brisbane’s infrastructure backlog has finally started to move, the Queensland capital is still coming to terms with a stagnant apartment market.
The city’s resources-dependent economy has been thriving in recent years with rental growth across the commercial sector growling steadily within the A-grade asset class.
Despite the increase in new supply during the half-year period, Brisbane is still in for a lean period of new office buildings.
Sizeable residential masterplans and commercial precincts have added to the city’s burgeoning development pipeline, with strong population growth prior to Covid-19 unlocking development opportunities.
From the city-shaping cross-river rail to a new multi-billion-dollar casino as well as a number of high-profile high-rise commercial, hotel and residential projects, the city is primed for major development projects and growth.
Property giant Dexus is pushing ahead with plans for a $2.1-billion transformation of Eagle Street Pier and its Waterfront Place commercial precinct in Brisbane’s CBD.
The country’s biggest office landlord lodged plans in June for its 9000sq m riverfront site and secured approval in February.
Plans include two new commercial towers, riverfront dining, public plazas, extended riverwalk and ferry terminal.
The existing Eagle Street Pier building, next to the Harry Seidler-designed Riparian Plaza and Riverside Centre, will be replaced.
The 75,300sq m north tower will reach 49-storeys and the 43-storey south tower with 60,000sq m of office space in total. Both towers will sit above four levels of underground car parking.
Dexus plans to begin construction on the Eagle Pier site in 2022 with the first stage to be delivered by 2026.
• Designed by FJMT and Arkhefield
• The project will feature 9000sq m of riverside public open space
• It is projected to create more than 1,000 construction jobs
Brisbane’s $3.6-billion Queen’s Wharf development—which has taken more than a significant footprint of the CBD—has moved ahead with construction and is now well under way.
Destination Brisbane Consortium—which includes the Star Group, developers Far East Consortium and Hong Kong-based Chow Tai Fook—is responsible for the integrated resort, after being selected by the Queensland government to transform the riverfront site.
The project, the largest private sector development in Queensland, is spread over 12ha of land and 15.3ha of water and will eventually comprise a total gross floor area of 390,000 square metres.
The development, earmarked for completion by late 2022, will offer four luxury hotels, 2000 residential apartments and a casino.
• Designed by Cottee Parker
• The project is being delivered by builder Multiplex
• Will offer 50 bars and restaurants and a 100m-high ‘sky deck’
• The project has earned a 6-Star Green Star Communities rating
205 North Quay
Super fund developer Cbus Property, in conjunction with its local partners Nielson Properties and the Raniga family, is moving ahead with plans for a $600-million office tower in Brisbane’s fast-growing North Quarter precinct.
The development, a 37-storey A-grade office tower, was approved in February for a 3000sq m riverfront corner site, created from the amalgamation of properties at 205 North Quay and 30 Herschel Street.
The development will be known as 205 North Quay and will add 50,000sq m of net lettable area to the Brisbane CBD office market in the fast-growing North Quarter precinct.
• Designed by Hassell, REX and Richards & Spence
• Features a whole-floor wellness facility and rooftop facilities
• Targeting 6 Green Star and 5.5 Star NABERS Energy ratings
Griffith University is moving forward with $1-billion plans to leave Mount Gravatt Campus, lodging a development application in September to create a new vertical campus at Roma Street Station.
New and existing students will be welcomed at the 55-storey tower in Brisbane’s CBD as well as the growing Logan campus.
The ground floor of the building includes a public auditorium to be used for presentations on scientific developments, debates and community services.
• The uni plans to take up 15 of the 55 floors
• Will help accommodate 4000 students transitioning from Griffith’s Nathan Campus
• Will act as a hub for the uni’s IT, business and law schools and student accommodation
Fund manager Charter Hall has secured approval for major commercial development in the heart of the CBD.
The 35-storey project is slated for a 1850sq m corner site at the top of the CBD’s Queen Street Mall, created from the amalgamation of three properties at 217 George Street, 231 George Street and 60 Queen Street, ranging from three to eight storeys in height.
The development will be known as 60 Queen Street and, if approved, will add 29,000sq m of net lettable area to the Brisbane CBD office market.
In March, Charter Hall listed the amalgamated site after investors in the partnership decided to release the asset.
• Charter Hall purchased the site for $94 million mid-2018
• Proposal designed by Blight Rayner
• Targeting 6 Green Star and 5.5 Star Nabers energy ratings
251 Wickham Street
Brisbane-based developer Cornerstone has plans before the council for a major commercial project in Brisbane’s Fortitude Valley.
The proposal, for a high-rise commercial tower alongside the landmark McWhirters building, calls for a 28-storey development spanning 14,500sq m of net lettable area.
The development is slated for a 1357sq m site between 251 to 253 Wickham Street, together with part of 47 Warner Street, currently occupied by a derelict and dilapidated building.
Plans feature meeting and recreation spaces on levels 15 and 27, a gym with lap pool, sky terraces and balconies.
The building will offer 55 car parking spaces across three basement levels as well as 108 bicycle spaces and end-of-trip facilities.
• Designed by Brisbane-based firm Bureau Proberts
• The site currently holds approval for an 11-storey proposal
Cross River Rail
Construction on Queensland’s biggest infrastructure project, the fully funded $5.4-billion Cross River Rail being built by a consortia of several government agencies and the private sector, is well under way.
The major project will comprise a 10.2km rail line from Dutton Park in Brisbane’s southern suburbs to Bowen Hills in the north, with a 5.9km tunnel under the CBD.
The development includes four underground stations, at Boggo Road, Woolloongabba, Albert Street and Roma Street, as well as eight upgraded stations across Brisbane’s fringes and three new Gold Coast stations—Pimpama, Helensvale North and Merrimac.
The Pulse consortium—a partnership led by CIMIC Group companies, Pacific Partnerships, CPB Contractors, and UGL with international partners DIF, BAM and Ghella—is set to deliver the tunnels, stations and above-ground development.
• Early works for the project began in August 2017
• At peak, the project will create 7700 construction jobs
• First trains are expected to be running in 2024
360 Queen Street
Charter Hall and Investa Commercial Property Fund’s $650-million Queen Street tower is quickly taking shape.
The joint venture acquired the 2150sq m site in June, 2017 for $53.75 million before lodging plans for a commercial development.
The project will deliver 45,000sq m of A-grade office space, a publicly accessible retail component within its podium, childcare centre, supermarket, and indoor sport and recreation centre.
• Designed by Blight Rayner
• The building is targeting a 5-Star Green Star design rating
• It is also targeting a5 Star NABERS Energy Base Building rating
A masterplan for the transformation of Victoria Park golf course into a 45ha public parkland in Brisbane’s inner north is moving forward.
The masterplan includes a 1.4ha lake, boardwalks and trails, a high-ropes course, children’s water park, skate park and tennis courts.
A cultural hub with indigenous art, a community garden and urban farm is also slated for the park which if realised, will be more than double the size of the City Botanic Gardens.
It will cost $83 million to convert the 18-hole golf course—located two kilometres from the CBD—into Brisbane’s first new park in 50 years, with construction tipped to commence in 2021, if approved.
• The public consultation process included 16,300 people
• Designed by Lat 27, Aurecon, Wilkinson Eyre Architects, CDM Smith, Codesign, Design Flow, Project for Public Spaces and Catherine Brouwer Landscape Architects
Geon Property will soon break ground on the first stage of its $750-million Albion Exchange project in Brisbane’s inner north, after winning approval for the two-tower mixed-use development earlier this year.
The transit-oriented development, which will be delivered over 15 years, will revitalise a 4900sq m state government-owned development site adjacent to the existing Albion train station.
The 10 Stage redevelopment of the state-owned site will be bordered by Mawarra Street, Albion and Hudson Roads.
Stage one of the Albion Exchange masterplan also includes a $28.7-million upgrade of transport facilities and access to the Albion Train Station.
• Designed by Hames Sharley
• The project will include a 20-storey tower and a 19-storey tower
• The project will deliver a total of 253 units
443 Queen Street
Cbus Property’s 47-storey apartment building at 443 Queen Street is rapidly taking shape.
The $375-million residential tower, consisting of 264 apartments, will include a private dining room, catering kitchen, outdoor lounge cabanas, a gymnasium and 25m pool perched on the river’s edge.
The building was recently awarded a 6 Star Green Star design rating by the Green Building Council of Australia, the first residential building in Australia to be recognised with this rating.
Originally scheduled for completion this year, the building won’t be finished until at least August 2021.
• Designed by WOHA and Architectus
• Construction is being overseen by Probuild
• The building includes a boardwalk level restaurant
• Cbus Property acquired the site for $49 million in 2014
The state government-funded New Performing Arts Venue (NPAV), a new $150-million theatre, is currently being built as part of the Queensland Performing Arts Centre (QPAC).
The 1500-seat theatre will make the QPAC precinct the largest performing arts centre in Australia and is expected to deliver capacity for an extra 260 performances annually.
The Palaszczuk government promised $125 million in its 2018 budget to help fund the theatre, while QPAC will make up the remaining $25 million.
Early works on QPAC’s fifth theatre commenced last year and will be completed by 2022.
• Designed by Snøhetta and Blight Rayner
• QPAC will be to host an extra 300,000 visitors per year
80 Ann Street
Listed developer Mirvac is progressing on its $836-million 80 Ann Street tower in the CBD.
Mirvac acquired the 5000sq m site between Turbot and Ann Streets adjacent to Brisbane City Hall from Singaporean group Wee Hur for $79 million in late 2017.
The commercial project, spanning an entire block, will reach 35-storeys and offer 60,000sq m of net lettable area across some of Brisbane CBD’s largest floor plates at 2,200 square metres.
Financial services giant Suncorp will anchor the tower, taking 66 per cent of the total space.
Along with the 10-year pre-commitment from Suncorp, Mirvac has also closed a deal to build the tower with M&G Real Estate, which will own a half stake for $418 million, reflecting a yield of 5 per cent.
• Designed by Woods Bagot
• The project is scheduled for completion in 2022
• It is targeting 6 Star Green Star, 5 Star NABERS Energy and Gold Shell and Core WELL ratings
44 Roma Street
Plans for a 26-storey slimline hotel in the Brisbane CBD just outside the Roma Street priority development area are under assessment.
The 44 Roma Street application envisages a double-storey glass entrance to the tower, which has a ground floor foyer, cafe and lounge bar leading up to 212 hotel suites.
The hotel would include 212 hotel suites along with a ground floor restaurant and bar.
It neighbours Mirvac’s 80 Ann Street development and would sit in close proximity to Queen Street Mall and the proposed Brisbane Live precinct.
• Designed by Buchan
• Project site located at the corner of Turbot Street
Billionaire developer Maha Sinnathamby is pressing forward with plans for a $88-billion residential and commercial masterplan in Springfield, near Brisbane.
Planning approval for 2,685,600sq m of mixed-use development is in place, making Springfield Australia’s largest masterplanned city.
The region, about 26km south of Brisbane, is projected to be home to 140,000 people and 50,000 jobs by 2030.
Earlier this year, Sinnathamby appointed investment bank Moelis Australia to find a partner with deep pockets to help complete the masterplanned city.
• About 25 per cent of development has been completed so far
• At least $18 billion has already been invested
• A further $70 billion needed to fully realise the masterplan
Sekisui House is closing in on its third stage of its West Village project in Brisbane’s West End, featuring the heritage-listed former Peters Ice Cream factory as its centrepiece.
The $800-million mixed-use precinct, which is the company’s first inner-city masterplanned project in Queensland, is broken up into three stages and includes seven residential buildings.
Upon completion, the development will comprise 1200 apartments, townhouses and heritage residences, two commercial buildings, and one hectare of open space.
It will also feature a playground, a Woolworths supermarket, carparks, a gym, theatre precinct, medical precinct and 35 retailers.
• Plans for residential masterplan were first lodged in April 2015
• The development spans the 2.6ha former Absoe site
• Construction being overseen by Hutchinson Builders
• The project is scheduled for completion in 2023
The Brisbane Metro project will see the delivery of a new transport system along 21km of existing busway between the Royal Brisbane Women’s Hospital and Eight Mile Plains.
The project was initially proposed as a subway line to supersede the Northern and Southern Busways, taking hundreds of the council’s yellow-and-blue buses off the road and replacing them with 24 metre long electric bi-articulated buses capable of carrying up to 150 people.
A new underground station will be built at the Cultural Centre in South Brisbane as well as new busway tunnel underneath Adelaide Street in the CBD connecting to the Central Busway near King George Square underground station.
The project, which will be split into two parts and include 18 stations and 11 interchanges, is underway.
• Originally proposed during the 2016 council election
• Brisbane Council has committed $644 million to the project
• The federal government has committed $300 million to the project
• Services expected to start running by the end of 2023
309 North Quay
Charter Hall has two sets of plans before council for a significant riverfront site in Brisbane’s fast-growing North Quarter precinct.
The single tower scheme will feature large, which is Charter Hall’s preferred option, will feature campus-size floor plates of over 2700sq m as well as a 1550sq m outdoor garden terrace at the top of the building’s podium.
The dual tower scheme, lodged in a bid to recognise “growing flexibility in tenant requirements”, will be developed through a staged approach and will hold a more public-centric focus with a number of pedestrian laneways featuring cafes and pop-up venues.
• Charter Hall and Quadreal paid $65 million for the site
• Proposal designed by Blight Rayner
The $2-billion Brisbane Live arena, a 17,000-seat entertainment venue pegged for Brisbane’s CBD, has been touted since 2007.
The 65,000sq m arena, now part of the wider Roma Street Cross River Rail precinct, is still shrouded in uncertainty, with state government recently tapping the private-sector for investment.
If realised, the open-air precinct, likened to Melbourne’s Federation Square, would be built above the existing Roma Street rail lines under the Cross River Rail Delivery Authority in partnership with AEG Ogden’s Harvey Lister.
The demolition of the original Brisbane Transit Centre on the site moved ahead last year to make way for the new Cross River Rail station at Roma Street.
• Projected to generate $2.5bn in GRP over the next two decades
• If realised, the venue will support 600 ongoing jobs
117 Victoria Street
Sydney-based developer Crown Group has rebooted plans for its controversial $460-million residential development in Brisbane’s West End.
Crown Group originally submitted an application in January 2018, soon after picking up the 1.25ha site—the former home of Computershare—at 117 Victoria Street for $35 million.
The contentious development, which has been paused since mid-2019, will be completely redesigned after initial plans for an FJMT-designed scheme were scrapped.
Crown Group is now preparing to resubmit plans shortly to provide for larger apartments with a greater project gross floor area in response to market conditions.
Brisbane Housing Market Insights: May 2021
Brisbane housing market insights for May reveals increased demand for houses and approvals for new units has been underpinned by increasing consumer sentiment and a surge in interstate migration.
This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.
Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.
Brisbane’s typically slow-moving property market has continued to rise as part of a once-in-a-decade boom that experts say could fuel a further 10 per cent rise in house prices in the coming year.
Brisbane house prices have soared to record heights for the seventh consecutive quarter, with tight stock levels and strong demand across all demographics increasing competition.
Investors have also made their way back into the market and competition is heating up.
The latest Corelogic home value index shows Brisbane dwelling prices have risen by 1.7 per cent on a rolling four-week basis.
Brisbane house prices advanced a further 1.8 per cent during April, pushing it up 6.2 per cent for the recent quarter and 9.6 per cent for the year to date.
The current median value for dwellings is $558,295 which is $10,000 higher than just a month ago.
^Source: Corelogic Hedonic Home Value Index – April
The resurgence of buyer interest in the Brisbane property market has meant that auction clearance rates have consistently been in the 70 per cent range.
Clearance rates across April notably higher for houses compared to apartments, reflecting broader trends.
Hot spots included Brisbane’s inner city, inner east, inner west and the inner north – where house prices skyrocketed by 13 per cent over the past year to $1.2 million, 13.2 per cent to $1.053 million, 10.4 per cent to $1.17 million and 13.1 per cent to $1.1 million.
Brisbane auction clearance rates
|Week||Clearance rate||Total Auctions|
|Week ending 11 April 2021||80.9%||123|
|Week ending 18 April 2021||72.7%||104|
|Week ending 25 April 2021||76.2%||105|
|Week ending 2 May 2021||76.0%||104|
^Source: Corelogic Auction Clearance Rates – April
Brisbane is experiencing one of the tightest rental markets in a decade on the back of high demand coupled with extremely low supply.
Across April, Brisbane’s rental markets are experienced a tightening of supply, with vacancy rates currently sitting at 1.8 per cent.
Rental returns and yields have significantly increased in Brisbane, with rents soaring from 5 per cent to 15 per cent.
Gross rental yields sit at 4 per cent for houses and 5.2 per cent for units—much higher than other capital cities such as Sydney and Melbourne.
Some of the tightest vacancies across the capital’s suburbs include Anstead (0.5 per cent), Birkdale (0.3 per cent), Capalaba (0.2 per cent), Ferny Hill (0.3 per cent), Gumdale (0.4 per cent), Manly West (0.5 per cent), Rothwell (0.2 per cent), Sandgate (0.5 per cent), Shailer Park (0.4 per cent), Thornside (0.3 per cent) and Wakerley (0.4 per cent).
Brisbane residential rental vacancy rate
|City||April 2021 vacancy rate||Monthly % change|
^Source: SQM Research – April
Rental stock on market
|City||April 2021 vacancies||Vacancy net loss|
^Source: SQM Research – April
Brisbane rent prices
|Type||Rent||Monthly % change||Annual % change|
^Source: SQM Research – April
Brisbane’s housing market has remained particularly unaltered by the closure of international borders, where historically high demand from overseas migrants has been disrupted.
Tight stock levels and strong demand across all demographics have made it incredibly difficult not only to find a property to buy but to also secure something at a reasonable price.
Loan data shows investors have started coming back into a housing market they had largely vacated and the boom is being driven overwhelmingly by established owner occupiers.
Another big part of the demographic buyer base helping drive demand in Brisbane has been first homebuyers.
Brisbane’s proportion of home loans that remained on deferral at the end of March was just 0.7 per cent, indicating a very very low likelihood of distressed selling.
The seasonally adjusted estimate for total dwelling units approved in Queensland in March was 4547, 12.1 per cent up on February’s figures.
Queensland building approvals
^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)
|Dwelling||Approved||Monthly % change|
Queensland home loan lending indicators
|Region||First home buyer loan commitments||First home buyer ratio – dwellings||First home buyer ratio – housing|
^Source: Australian Bureau of Statistics – March
|Region||September (quarter) 2020 arrivals||September (quarter) 2020 departures||September 2020 quarter net|
^Source: Australian Bureau of Statistics – September quarter 2020
Brisbane’s housing market: policy updates
Australia’s central bank will maintain low interest rates to support the country’s ongoing economic recovery and surging housing market, buoyed by its busiest Easter auction market on record.
Strong tailwinds will bolster the Australian economy through the second half of the year, but macro-prudential measures are likely to be introduced to ease house price pressures in 2022.
Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.
Brisbane housing market forecasts
ANZ economists forecast Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy while Commonwealth Bank updated its forecasts, projecting a strong rebound in prices across the second half of 2021.
CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.
Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.
Article Source: www.theurbandeveloper.com
Subdued Office Occupancy Underpins Need To Support CBD
The latest results of the Property Council’s office occupancy survey show that Brisbane’s CBD activity levels have remained flat during April, as the Property Council ramps up efforts to encourage workers to return to the city.
The survey revealed Brisbane’s CBD occupancy level had stagnated at just over 60 per cent in April, marking the fifth consecutive month of little movement in the return to workplaces.
The Property Council’s Queensland Deputy Executive Director, Jen Williams, explained that while flexibility will continue to be a major feature of workplaces and there remains a small risk of future lockdowns, there is still a long way to go until the CBD reaches the level of occupancy anticipated in the new ‘normal’.
“Activity levels in Brisbane’s office buildings not only affect workplaces and office landlords, but the thousands of small businesses and retailers that rely on high levels of foot traffic to turn a profit.
“All businesses in the CBD are interrelated and largely reliant on office workers. From dry cleaners, to take away outlets, to electronic scooter companies, everyone relies on the consistent foot traffic that workers generate.
“As a direct result of the state’s success in tackling the health pandemic and the relatively low level of restrictions remaining, Brisbane was an early mover in the return of workers to the CBD.
“Unfortunately, we have seen the number of workers heading back into the CBD stagnate over the past five months. To position Brisbane for the future and capitalise on the generations of investment that have gone before, we must break the habits of COVID and get our people back together.
“In other parts of the world where employees have been forced to work from home for longer, businesses are desperate to get back to the office, as they have seen their productivity stagnate.
“With the likes of Google and Apple announcing major return to the office plans once the vaccine rollout allows, Brisbane and Australian businesses will risk losing their first mover advantage if they don’t get their teams back to together.
“This is why the Property Council is working with Brisbane City Council on a campaign to not only attract workers back into the office, but to ensure they make the most of what local retailers, cafes, restaurants, and bars have to offer.
“The State Government and Brisbane City Council’s Brisbane Holiday Dollars initiative is welcome recognition of the important role the CBD plays in contributing to the broader state and economy.
“While much is being done, there is still a long way to go until CBD activity levels return to ‘normal’. The Property Council is keen to work across all levels of government and industry to bring activity back to our city centre.”
Article Source: www.miragenews.com
Major new tenant for Brisbane’s fast growing Airport City
The list of tenants at Brisbane Airport (BNE) will soon include the world’s largest distributor for home-brewing brands such as Still Spirits, Mangrove Jacks, and Grainfather following the sod-turning ceremony for a new facility at the gateway.
Bevie’s 2,600sqm state-of-the-art unit will be located within a Warehousing Industrial Duplex Facility on Grevillea Place in Export Park.
Martin Ryan, Brisbane Airport Corporation’s executive general manager for commercial, joined John van Rensburg, CEO and president of Bevie, and more than 20 Bevie delegates on site to mark the commencement of construction.
Van Rensburg noted that a number of Bevie delegates were able to take advantage of the trans-Tasman travel bubble and fly in from New Zealand for the event.
He enthused: “We are looking forward to calling Brisbane Airport home to our soon-to-be constructed, custom facility, and I cannot wait to see the look on everyone’s face when we move in at the end of the year.
“Our existing facility in Banyo has served us well but providing our team with a modern home will allow us to serve our retail partners across Australia more efficiently.”
Ryan said the addition of Bevie is a perfect example of BNE’s evolving Airport City and our ability to attract non-aviation related businesses to Brisbane Airport.
“Bevie’s arrival is very exciting for all of us at Brisbane Airport as it diversifies the mix of industries we have here on site,” noted Ryan.
“We have a number of exciting projects underway and a property assets portfolio exceeding A$1.7 billion. Bevie is a part of BNE’s exciting future, which includes the opening of the BNE Auto Mall in 2024.”
The remaining portion of Brisbane Airport’s new Warehousing Industrial Duplex Facility is a 1,900sqm site that is still available for lease.
“These two units will complete the last piece of real estate available on Grevillea Place, but we have plenty more sites available for everyone’s needs,” added Ryan.
The project is generating more than 30 construction jobs and is expected to be completed by December 2021.
Article Source: airport-world.com
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