Cube Shapes Plans for Sunshine Coast Employment Hub

Cube Developments is honing in on the Sunshine Coast’s biggest employment hub, selling out one apartment tower and drafting up plans for another.

The Sunshine Coast developer has created a $265-million portfolio in the growth suburb of Birtinya near the Sunshine Coast University Hospital and Stockland’s $830-million Birtinya Town Centre masterplan.

It comes as demand continues to surge on the back of the holiday hotspot among the nation’s most popular locations for tourists, renters and remote workers.

The first of three towers at Seasons by Cube sold out, recording $40 million in sales in six months, translating at 54 two- and three-bedroom apartments in an eight-storey tower designed by Cottee Parker.

The 148-apartment project on a 6000sq m site at 1 Prosperity Drive, Birtinya is one of many in the largely undeveloped suburb between Mooloolaba and Caloundra.

Cube recently also picked up four super lots with 9000sq m in November at Cardinal Place and is drafting plans to build 245 apartments on the site.

▲ Large scale projects are ramping up on the largely undeveloped sites surrounding the Sunshine Coast University Hospital. 

Cube director Scott Juniper said that quite quickly the region was becoming very attractive following the pandemic.

“It hasn’t changed the buyer profile, there’s just a lot more volume,” Juniper said.

“Since everyone has been working from home, a lot of employers realise that actually people can still hit KPIs and are probably happier.

“I started developing in the precinct 10 years ago and now Stockland have limited land opportunities down there.

“There’s a lot of interest from many multiple development companies to come into the precinct.”

Unprecedented housing demand has driven the region into a land shortage with some developers looking to build higher-density projects to overcome this.

Rental vacancies hit 0.5 per cent in December and have hovered around that mark since the pandemic began, down from about 2 per cent across 2019 and the early stages of 2020.

This compared to the Gold Coast at 0.6 per cent and Brisbane at 1.8 per cent.

The Sunshine Coast also ranked in top position in the Tourism Sentiment Index of 100 global places last week, ahead of the Whitsundays, Udaipur Rajasthan in India and Bora Bora in French Polynesia.

Nearby and on a similar scale, Habitat lodged plans for a $150-million development with 200 apartments across two, eight-storey buildings.

Citimax Property Group was also moving ahead with an eight-storey tower with 40 apartments at 27 Verney Street, Kings Beach on a 1416sq m block.

The Brisbane developer made slight adjustments to the 2015 approved plans and construction was under way on the site after launching the project last year by Gibson Architects—and is reporting strong sales.

In September, Toowoomba’s Wagner family lodged plans for a 182-room hotel in Mooloolaba on an old car park site.

 

Article Source: www.theurbandeveloper.com

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Records smashed as commercial property transactions hit $71bn

Commercial property sales boomed through 2021, with big investors chasing security and yield setting a new benchmark of $71 billion in transactions – well ahead of the previous 2019 high of $64.5 billion, according to data compiled by Real Capital Analytics.

The record total was propelled by pent-up demand after a lacklustre 2020 – when just $42 billion in commercial properties traded (the lowest since 2013) – and an unprecedented number of portfolio deals, headlined by the $3.8 billion acquisition of Milestone Logistics by GIC and ESR.

Industrial and logistics was by far the hottest sector as investors bought heavily into its e-commerce fuelled growth story, spending $28 billion and pushing average yields well below 5 per cent.

The office sector surprised on the upside, given the pressure on traditional workplaces exerted by COVID-19, recording $22 billion in deals, with foreign buyers prominent on the biggest transactions.

British investor M&G Real Estate teamed up with Mirvac to acquire half of Sydney’s EY Centre for $575 million and US-based Blackstone paid $925 million for 50 per cent of Grosvenor Place in the same city.

Retail also outperformed and had a strong finish to the year, with volume in the fourth quarter rising to $5.8 billion. This was largely thanks to the complex $2.2 billion deal in which UniSuper and Cbus Property partnered with AMP Capital to take majority ownership of Pacific Fair on the Gold Coast and a half stake in Sydney’s Macquarie Centre.

It was Australia’s biggest-ever direct retail property transaction, demonstrating the increasing influence of super funds on commercial property, lifting the total value of retail transactions to $17.2 billion, 11 per cent above the five-year average.

Benjamin Henry-Martin, RCA’s local head of real estate research, said there was an element of catch-up in 2021’s sales surge.

“There’s a combination of factors, but you can certainly see there has been a strong bounce back from 2020 when there was a lot of uncertainty and investment decisions were put on hold,” Mr Martin-Henry said.

“Those investment decisions appear to have been acted on in 2021, which is why we’ve had such a strong year.”

In terms of investment locations, Sydney attracted by far the most capital.

The Sydney office market topped sales at $8.7 billion, followed by Sydney industrial with $8.2 billion. Then came Melbourne industrial at $7.4 billion, Melbourne office at $4.7 billion, and Sydney retail at $4.6 billion.

Foreign investors were active despite international border closures, accounting for 29 per cent of commercial property investments through the year, often using local representatives to get the deals done.

Overseas investors GIC and Blackstone dominated, twice selling each other major industrial portfolios.

In April, GIC funded the ESR bid for Blackstone’s Milestone Logistics portfolio, while late in the year Blackstone bought GIC’s 49 share in the Dexus Australian Logistics Trust for $2.1 billion.

“The Australian market has bounced back significantly better than many global peers, particularly in the office and retail sector,” said David Green-Morgan, who leads RCA’s Asia-Pacific research team.

“Australia is one of the very few major markets that saw retail volumes increase on pre-COVID averages.“

 

Article Source: www.afr.com

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Pradella announce The Lanes, the final piece in West End’s Montague Markets precinct

The Lanes at West End follows the sell-out success of Montague Markets and Enclave. Part of The Lanes will be Wave Residences, which will feature 138 apartments.

The development of The Montague Markets precinct in Brisbane’s West End kicked off some 15 years ago.

Now, the awarded Queensland property developer Pradella, has announced the final development in the masterplan that has breathed new life in to the West End area.

The Lanes at West End, which follows the sell-out success of Montague Markets and Enclave, is set to be the crown jewel in the $1.3 billion masterplan. Part of The Lanes will be Wave Residences, which will feature 138 apartments.

There will be a mix of one, two and three-bedroom apartments plus media rooms on offer, as well as an exclusive Penthouse Collection.

Future residents of The Lanes will have the added convenience of the rest of the masterplan being complete, with the already thriving Montague Markets retail precinct on their doorstep. The retail precinct features an array of dining options, services and stores including a full-line Woolworths.

The Lanes will feature resort-style amenities including an expansive 200 sqm lagoon pool with beach entry and an infinity edge overlooking the city, an impressive Rooftop Retreat spanning almost 2,000 sqm including a bar with sweeping views of Brisbane’s skyline, a contemporary dining pavilion, and an opulent wellness retreat complete with mineral pool and steam room.

Having delivered over 17 projects in West End since the year 2000, Pradella has partnered with bureau^proberts, LAT27 and Position Property to create The Lanes, which is focused to exceed the expectation of the rightsizer demographic, or those looking to invest.

Pradella Sales and Marketing Director, Lee-Anne Kielar, said that the announcement of The Lanes comes following the fast uptake of boutique residences at Montague Markets and Enclave, and that this may be the last chance for buyers to secure a luxurious contemporary apartment within the vibrant West End precinct.

“There has been an unprecedented level of buyer demand for luxury apartments over the last couple of years and we anticipate The Lanes will follow suit in terms of popularity,” Kielar said.

“Residences have sold out so quickly that stage releases and construction were fast-tracked across both Montague Markets and Enclave to keep up with demand.

“We are thrilled to be able to deliver Pradella’s final West End residential development, The Lanes, which will conclude Pradella’s $1.3 billion investment into this thriving inner-city locale. Not only is this a great achievement in terms of Pradella’s construction milestones, but these masterplanned projects also showcase a level of upmarket living not seen before in this area.”

Fast facts:

– Pradella’s newest masterplanned community, The Lanes at Montague Markets, West End

– Superb selection of premier residences including one, two and three-bedroom apartments with media rooms, plus the stunning Penthouse Collection

– Resident-only amenities include architecturally landscaped gardens, picturesque pocket parks, a stunning Rooftop Retreat spanning almost 2,000sqm with private dining pavilion and bar, wellness retreat complete with mineral pool and steam room, and an expansive lagoon pool with infinity edge and sweeping views to the city.

– The final component of the Riverside West End masterplan, ultimately comprising three residential towers with city and suburban views

 

Article Source: www.urban.com.au

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Why the Brisbane apartment market has the most potential in Queensland: Five minutes with Mosaic’s Brook Monahan

Mosaic Property Group boss Brook Monahan believes the inner ring of Brisbane has the most potential of any market in the state.

All the talk has been about how the Gold Coast has dominated the South East Queensland apartment market since COVID triggered an exodus from the southern states.

And the fanfare around the coastal areas, with the majority of the country working from home for the last few years, has seen Queensland’s capital fly quietly under the radar.

Mosaic Property Group Founder and Managing Director Brook Monahan believes the inner ring surrounds of Brisbane has the most potential of any market in the state, and is looking to invest even further across its development pipeline after building a solid reputation over the last 17 years across south east Queensland.

“There’s just not enough high quality built form for owner occupiers wanting bigger units, and world class amenity, in the five kilometre ring around Brisbane,” Monahan said, suggesting there’s been a chronic undersupply for that type of buyer since around 2018.

“That issue is getting worse, not better, with the amount of people still moving to Brisbane,” Monahan added.

Data from the Australian Bureau of Statistics showed Queensland gained around 7000 people from net interstate migration over the March 2021 quarter alone.

“With the amount of infrastructure being delivered across the city, not to mention international travel getting back to normal at some point this year and the pipeline of development in preparation for the 2032 Summer Olympics, there is just nowhere near enough housing stock.”

The low stock is a pain point for the owner-occupier demographic, but not for investors, who Monahan says aren’t quite back in full force just yet.

While Mosaic tend to cater for local owner occupiers in their developments, some investors who bought apartments to lease in Brisbane, have seen rental yields go through the roof.

“If it’s difficult to buy a larger apartment due to low supply, then the only option is to rent, and those who invested are benefitting from the tight supply and huge migration numbers,” Monahan said.

Mosaic will be launching five projects in Brisbane across 2022, nine all up across South East Queensland. They’ll be venturing into the Kangaroo Point and East Brisbane apartment markets after much success there in recent years, including the The Sinclair, which is fully sold out and due for completion mid this year.

One of their major focuses for the last eight years has been in Brisbane’s inner west suburbs, which Monahan identified as a high growth area back in 2014. Last year they sold out The Witton in Indooroopilly, The Patterson in Toowong, and Kensington in Toowong, with all sales going to database buyers before hitting the open market.

The first to launch this year will also be in Toowong, which will be Mosaic’s 11th project in the space of six years in the inner-west.

The development, designed by DKO directly behind Toowong Shopping Centre, will offer a mix of large two and three-bedroom units and luxury penthouses.

The facade is inspired by the detailing and repetition of the traditional Queenslander. The veiled podium references the nearby Regatta Hotel on the Brisbane River.

There are four different zones on the rooftop. There’s a wet zone, including pool and wet deck, with views to the city and river; a dining zone, including outdoor BBQ area and shelter overlooking the city and river; a wellness zone, which is a combination of a yoga lawn and gardens; and the multiuse zone to the south west which can be utilised for co-working during office hours or a communal kitchen and dining area after hours and on the weekends.

 

Article Source: www.urban.com.au

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Housing Market Stays on Boil to Hit 32-Year High

Australia’s house prices have set a 32-year record for growth, according to Corelogic’s monthly housing data.

The growth in national dwelling values has hit its highest point since June 1989, 22.4 per cent, with the average house now worth $131,236 more than it was a year ago.

Brisbane and Adelaide lead in the increase in house values at 2.3 per cent and 2.2 per cent respectively with Hobart at 1.2 per cent. Sydney and Perth reported growth of 0.6 per cent, Darwin 0.5 per cent and Melbourne 0.2 per cent.

“Record low interest rates, elevated household savings, strong interstate migration, better relative affordability, limited detached housing supply, fewer Covid disruptions, solid government infrastructure spending and a tight rental market are all supporting home price appreciation in both Brisbane and Adelaide,” CommSec’s senior economist Ryan Felsman said.

And it has again been the regions leading the way. The combined regionals index increased by 1.8 per cent in January and 6.3 per cent over the rolling quarter.

Despite rising house prices in Brisbane and Adelaide, the combined cities index only increased by 0.8 per cent in January and by 2.6 per cent over the rolling quarter.

The difference between the two of 3.7 percentage points is an all-time high.

Change in dwelling values

City	Annual	Houses median value	Units median value
Sydney	25.3%	$1,374,970	$835,104
Melbourne	15.1%	$997,928	$627,047
Brisbane	27.4%	$782,967	$451,258
Adelaide	23.2%	$622,155	$386,420
Perth	13.1%	$533,013	$400,711
Hobart	28.1%	$747,187	$563,628
Darwin	14.7%	$565,080	$368,847
Canberra	24.9%	$1,015,900	$584,100
National	22.1%	$766,377	$602,933

^Source: Corelogic

Every state reported a minimum increase of 1.2 per cent in regional housing values with regional Queensland (2 per cent) and regional South Australia (2.1 per cent) topping the list.

This has been an ongoing trend during the past year as more people move from the cities to regional areas, particularly those with good commuter networks.

“Regional dwelling price growth slowed slightly but to a still very strong 1.8 per cent month-on-month for January, reflecting ongoing demand for regional property on the back of coronavirus and the working from home phenomenon, which has all seen a refocus on quality-of-life considerations,” AMP’s head of investment strategy and chief economist Shane Oliver said.

Commutable markets such as the Southern Highlands and Shoalhaven, Sunshine Coast and the Hunter Valley (excluding Newcastle) experienced growth of 37.6 per cent, 34.4 per cent and 34 per cent respectively.

Other regional markets are also climbing the housing value ranks.

However, growth was varied across the country with Brisbane and Adelaide showing consistent growth month to month while other cities were slowing down.

“A pick-up in listings, affordability constraints, government virus restrictions, rising fixed mortgage interest rates and new regulatory measures to tighten serviceability requirements for new mortgages have all slowed price momentum,” Felsman said.

▲ Perth house prices increased by 13 per cent in 2021 and are expected to jump another 10 per cent in 2022. 

Western Australia’s border closures look to be be contributing to Perth’s slower conditions and uptick in rental yield, whilen Brisbane and Adelaide the supply of housing is still low but demand remains high especially in south-east Queensland.

Nationally, the growth in house prices continues to outpace unit prices nationally by 1.3 per cent to 0.3 per cent in January.

Gross rental yields have also increased more in the regional areas than in the cities with the regional Northern Territory reporting a growth of 6.9 per cent and regional Western Australia 6 per cent.

Gross rental yields in the cities saw Darwin reporting a 6.1 per cent growth and Perth 4.4 per cent.

This reflects more people opting to rent in these areas where the rental prices were lower—Darwin’s rental price grew by just 0.2 per cent and Perth’s by 1.4 per cent while Brisbane and the ACT had the highest rental price increases at 2.3 per cent.

The changing nature of work and ongoing pandemic restrictions appear set to continue to affect property markets and current trends.

“Of course, the full re-opening of Australia’s international border could yet influence demand for Aussie homes, while a potential reversal of capital city to regional Australia migration—as workers look to return to city offices in either a part-time or full-time capacity—is another interesting dynamic which could also impact regional property markets in 2022,” Felsman said.

“In the near-term, homebuyers, investors and sellers should be on the lookout for signs of property market weakness, including weaker auction clearance rates; lifting advertised stock levels; a lengthening in days a home is advertised on the market; and increased levels of home price discounting.”.

 

Article Source: www.theurbandeveloper.com

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Owner-Occupier Lending Drives Home Loan High

Record low borrowing costs increased the demand for home loans 4.4 per cent in December to $32.8 billion, according to newly-released ABS lending data.

It creates a record high for the entire year of nearly $370 billion in loans issued.

The value of home lending is the highest the yearly figure has been since records started in 2002 and is also a 51 per cent increase on the stats for 2020, according to HIA economist Tom Devitt

Owner-occupiers have been the main drivers of the increase accounting for more than $22 billion in December 2021 and more than $260 billion for the whole year in lending, an increase of 43 per cent on the previous year.

They were also up 5.3 per cent month over month in December, only 4.1 per cent lower than the peak in May 2021.

ABS acting head of finance and wealth Amanda Seneviratne said the increase was driven by a 5.3 per cent rise in the value of new owner-occupier loan commitments.

“This is the second consecutive monthly rise in owner-occupier lending and follows the falls seen from June 2021 through to October 2021.”

The average home loan for an upgrader was $731,000.

First home buyers contributed $74 billion to the total amount of lending, an increase of 30.3 per cent on the previous year.

The average home loan for a first home buyer was $481,000, an increase of 11 per cent year-on-year from $433,000 in December 2020.

“Australians are remaining very active in the housing market,” Devitt said. “The pandemic has forced people to spend a lot more time at home, resulting in demand for greater amenity.”

“This is being found in both moving to a new home or renovating the home people already have.”

Lending rates for first home buyers were highest in New South Wales and Victoria, followed by Queensland and Western Australia and then South Australia and Tasmania.

CBA’s Belinda Allen said that it was a surprise that lending rates for owner-occupiers were so high.

“The strength in new home lending is a surprise given the increase in fixed mortgage rates that has occurred over late 2021,” Allen said.

CommSec’s senior economist Ryan Felsman pointed out that prices have outstripped wages and placed further pressure on affordability.

“Demand for Aussie housing remains solid, but affordability has decreased because home prices have surged more than wages,” he said.

However, owner-occupiers can breathe a sigh of relief today as the Reserve Bank of Australia announced that there would be no change to rates.

Housing prices have risen strongly, although the rate of increase has eased in some cities,” Reserve Bank Governor Phillip Lowe said.

“With interest rates at historically low levels, it is important that lending standards are maintained and that borrowers have adequate buffers,” he said.

ABS data also showed that investor lending increased by 2.4 per cent and contributed $10.3 billion to the total according to ABS data, setting another record since records began in 2002.

“Investors accounted for $106 billion worth of housing loans in 2021, up by 75.1 per cent on the previous year,” Devitt said.

The strongest rises in investor loan commitments were Victoria (up 3.4 per cent), New South Wales (up 1.1 per cent) and the Australian Capital Territory (up 10.4 per cent). All other states and territories fell.

“Investor lending has seen growth over the past 14 months and accounted for around one third of the value of new housing loan commitments in December 2021,” Seneviratne said.

 

Article Source: www.theurbandeveloper.com

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Burleigh Heads: The laid-back Gold Coast suburb with double-digit house price growth

As the Gold Coast continues to grow exponentially fuelled by waves of sea-changers, there’s a certain suburb to keep an eye on; one where proud locals embrace its inherent beauty and laid-back vibes, and enjoy views of the more frantic areas of the city off in the distance.

Cue Burleigh Heads, a seaside suburb spoiled with a lush national park backdrop, a famous Norfolk pine-lined beach, a burgeoning cosmopolitan scene and a world-class surf break.

All of which begs the question – is this the real surfer’s paradise?

On the up and up

According to Conal Martin, founder and principal of Kingfisher Realty, these reasons are why Burleigh has more permanent residents than any other suburb on this coastal strip, attracting not only holiday-goers but also an evolving slew of newcomers who are eager to call this coastal charmer home.

“You tend to see a large family demographic in Burleigh due to its safe and convenient environment, along with high-end professional couples and retirees who choose to move here for the weather, lifestyle and world-class facilities,” Martin says.

“And then, of course, there are the old-timers, who have witnessed the progress and changes that Burleigh has undergone, yet still love the way the suburb retains its much-loved village feel.”

Going from strength to strength, Domain’s latest House Price Report shows Burleigh Heads’ median house price grew 31.8 per cent over the year to $1.212 million.

“The recent trends in our local market have been changing rapidly from the sale prices to the demographics,” Martin says.The Norfolk pines are an icon of the beach at Burleigh Heads. The suburb, once popular among retirees, now attracts young families and professional couples.

“Take, for instance, 7 Tawarri Crescent, which sold in June 2020 for $2.415 million – to buyers who were a family with four children from Canberra – then, 18 months later, is back on the market with a price guide of $4.31 million, gaining interest from the likes of interstate families and young professional couples based on the Gold Coast.”

Live like a local

While Burleigh’s natural beauty lies in its coastlines, creeks and parklands, a traditional “high street” is found in James Street, where a hub of cafes, restaurants and boutique stores reside, including poke-bowl restaurant Finn Poke and burger bar Two Yolks, owned and operated by local restaurateur Jem Jacinto.

“We are lucky enough to have two businesses in this popular spot of Burleigh Heads, both of which match the fun and energetic vibe of the local lifestyle and provide a level of sophistication that this community demands,” Jacinto says.

He moved to the area from Los Angeles four years ago with his wife Yvette and their now six-year-old son, and the family have come to happily adopt the Burleigh way of life.

With its array of shops, restaurants and new developments, Burleigh Heads is expected to continue its growth whilst retaining its charm. Photo: Mark Fitz 

“An ideal day would involve spending the morning at the beach or Tallebudgera Creek with the family, followed by brunch at any one of our favourite local cafes,” Jacinto says.

“As the evening approaches, we would grab dinner at one of our restaurants, before then heading to Burleigh Hill for a picnic with friends – this is where we often watch the sunset with gelatos in hand, as we listen to the Sunday-night bongos.”

With a myriad of development projects underway and Burleigh’s glowing reputation continuing to spread, Jacinto predicts there will be plenty of new faces to come.

“We expect the future will bring a larger interstate presence who will join our ever-growing community that includes all facets of people – those who will surely enjoy this dynamic, fun, and naturally beautiful part of the Gold Coast,” he says.

One to watch

Striking, all-embracing and award-winning; Tawarri House is a luxurious residence set within an exclusive locale.

It features polished concrete floors and high, raked ceilings, made complete by a seamless indoor-outdoor design.

Kingfisher Realty’s Conal Martin is accepting expressions of interest with a guide of $4.31 million.

 

Article Source: www.domain.com.au

 

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