Greater Brisbane's better priced property options for developers: Knight Frank

Greater Brisbane's better priced property options for developers: Knight Frank
Greater Brisbane's better priced property options for developers: Knight Frank

Greater Brisbane has shifted to better priced options compared to Sydney or Melbourne, according to Knight Frank's latest residential development report.

When Sydney and Melbourne were experiencing significant growth in turnover and value in higher density development sites in 2013/14, Brisbane was seen as a viable option for local and foreign investors priced out of these markets.

Since this time, the southern market has shifted with better priced options available in Australia’s two largest capital cities.

Brisbane CBD saw $16.1 million worth of residential sites suitable for higher density sold in the year to 30 June 2016, with an average indicative rate of $90,000 per apartment.

By 2022, Queen’s Wharf accommodating the new Brisbane Casino, and integrated resort, will breathe new life into the George Street sector of the CBD.

Together with the North region, a total of 29,280 apartments are projected until the end of 2019, with 9,560 currently under construction, 5,885 being marketed and further 13,840 were sitting with DA Approval as at 30 June 2016 (Figure 14).

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Greater Brisbane's better priced property options for developers: Knight Frank

The North region not only dominated the number of apartments projected, but development site sales volume in the year to 30 June 2016.

A total of $513.4 million was sold, with the average rate ranging from $40,000 to $105,000 per apartment (with an indicative average of $70,000 per apartment).

The region will benefit from proposed infrastructure such as the redevelopment of the Herston Quarter, an estimated $1.1 billion mixed-use precinct for health, residential, commercial and recreational activity due for completion by 2027.

The South region saw total sales volume reach $42.1 million in 2015/16 with an average sales rate per apartment of $30,000 to $95,000 (indicative rate of $60,000 per apartment).

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Greater Brisbane's better priced property options for developers: Knight Frank

Approximately 2,845 apartments are under construction in the South region whilst 1,535 are being marketed, potentially completed by December 2019.

Two key infrastructure projects in Greater Brisbane are the Qld Government’s Cross River Rail and Metro Brisbane projected by 2025. Both will play a critical role in ensuring rail and bus networks can meet the city’s future public transport needs.

Once the allocation of key sites along the route is determined and access to funding is sourced, both projects will provide a good injection of stimulus into the Greater Brisbane economy.

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Greater Brisbane's better priced property options for developers: Knight Frank

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