CFMG Capital now holds more than 1500 residential lots across south-east Queensland and Melbourne after picking up three new sites for $29 million.
CFMG has spent more than $60 million buying up residential land in both Victoria and Queensland in the last six months and sold more than 550 lots in 2021.
CFMG’s latest acquisitions were in Park Ridge, Caboolture and Rochdale in south-east Queensland. The group has three new projects slated to start in the first half of 2022. The estimated gross realisation value of the three sites is more than $100 million.
CFMG’s Land Opportunity Fund and its First Mortgage Income Fund raised more than $100 million in third party equity to fund the acquisitions.
CFMG Capital general manager Andrew Thomson said that they wanted to be prepared for continued demand for housing.
“The market is still struggling to service the demand for new homesites in Queensland, and we expect that to be the situation for most of 2022, particularly in the high growth, affordable corridors,” Thomson said.
The first site on Koplick Road, Parkridge will realise 249 lots and borders CFMG Capital’s existing Birchwood Estate with 89 lots.
The new site will be sold as additional stages of the Birchwood Estate in March, 2022.
▲ View over Brisbane suburbs where buyers are flocking to take advantage of lower prices and a different lifestyle.
“Park Ridge and Logan have been an outstanding market for CFMG Capital, and we have already delivered more than 500 lots in the area,” Thomson said.
“We think it will continue to be a popular destination for first and second-home buyers.”
The 3.1ha site in Caboolture is earmarked for the Pumicestone Pocket project with 60 lots ranging between 300sq m to 510sq m and starting at $245,000.
Next to CFMG Capital’s existing site Mayfair Lane, the 3.5ha site in Rochedale will have ten lots averaging 2000sq m from $1.5 million with a project to be launched before June subject to full development approval.
“With our recent experience in the immediate area, this development site ticks all the boxes in relation to the clearly defined CFMG Capital acquisition strategy and is a fantastic opportunity to expand our development portfolio,” Thomson said.
CFMG also spent more than $20 million in Brisbane’s northern corridor in 2021 to buy 14ha across six different sites in Morayfield and Burpengary, $16.4 million of which went on 212 lots on Andrews Road in Morayfield.
Corelogic research director Tim Lawless said that Brisbane and south-east Queensland was one of the strongest housing markets.
“It’s one of the fastest growing,” Lawless said.
“Both Brisbane and Adelaide stand out because of the cheaper price points but also people looking for the lifestyle that they can have in Queensland.”
“It’s also getting harder to find land that can be developed and subdivided in the Brisbane local government area,” he said.
HIA-Corelogic’s residential land report for September 2021, showed that greater Brisbane’s median lot price was $200,000 while its median lot size grew to 546sq m.
“Housing design has become a lot smarter over time so we see more smaller lots but that also helps with affordability because the lot price is calculated by the rate per square metre.” Lawless said.
Article Source: www.theurbandeveloper.com
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