Blockbrief Development Update April 2015

23/04/2015 4:58 am
by Michael Radovnikovic on April 22, 2015

It’s a new all-time record in Sydney with an 88.2% clearance rate last Saturday. With activity at an all-time high we thought to focus on other stats and facts.

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The South Australian development market is changing. Adelaide has had traditionally slower growth and development movement than other states but we are seeing some foreign interest in density projects due to land values. The impeccably designed $160M project U2 on Waymouth apartments have recently broken ground both in construction, pricing and attitudes. In downtown Adelaide this 25 storey building developed by Datong Australia includes 257 apartments with prices ranging $300,000-$650,000 for 1 bedders through to penthouses. Similarly, the $110M Bohem building is better suited as a sister building to Central Park Sydney with sweeping sky pools and vertical gardens. Starfish Developments have recently received planning approval for this unique living development. People are flooding to catch a glimpse of these projects which are sparking the new wave of developments in Adelaide’s CBD. It’s reinforcing to see that new developers are taking charge seeing the potential growth in Adelaide after the market has slumped in recent times. With key economic indicators nationally dropping, the best developers see the opportunity to pick up great value sites to take advantage of the imminent upswing. Blockbrief will continue watching South Australian key towns and the CBD with interest.

It has never been a surprise how much market depth there has been through the Queensland development cycles over the last 20 years. The diversity of product in various cities is as vast as its size. Queensland home sales hit a 5 year peak last year with “$51 billion worth of residential property changed hands”, according to the Real Estate Institute of Queensland (REIQ). The strength on the roller coaster upswing along with record low interest rates and increased foreign investment has bolstered this market considerably with savvy new developers and some Queensland institutions taking advantage of selling commercial property at strong yields and focussing residential developments. FIRB are keeping the demand for higher end product strong with 2,600 properties over 320 suburbs transacting for more than $1 million in 2014. 2015 is another big year with no indication of swinging the FIRB market. In Queensland developer action Consolidated Properties, working with LJCB Investments is developing the $850M Yeerongpilly Green site in Southern Brisbane. With development sites from 3 – 5 storeys and a mixed use masterplan, this will be a developers boxing match for prime wholesale land. Further, Stockland have announced their progress on the Caloundra South development on the Sunshine Coast. The mammoth 2,310ha site is a masterplanned community is more than a $10B site which will take 20 years to fully develop with a town centre and 6 neighbourhood centres.

 

 

About Michael Radovnikovic

Michael is a co-founder of Blockbrief and heads up market research, analysing the impact of zoning on the market, development market conditions, demographics and economic trends across the county.