“There is no doubt that the Brisbane market has slowed in recent months. Developer funding challenges and increasing construction costs have made the environment increasingly difficult to get new projects off the ground in Brisbane, but we are committed to Fortitude Valley and excited to launch this project in the next market cycle,” Mr Gurner said.
Recently approved apartment developments worth approx $1 billion will be postponed.
Owners appear to be waiting for the next property cycle or looking to sell out because of concerns about oversupply, financing, construction costs and government regulation.
The number of apartments approved for construction across the country in April rose to 10,490 – the highest monthly figure since last October’s 10,838. Groups such as BIS Shrapnel expect there will be more than 45,000 new apartments completed this year, rising to over 56,000 next year.
Wealthy Melbourne developer Tim Gurner, who has just received approval for a $140 million apartment project in Brisbane’s Fortitude Valley, says he will wait for the next cycle to develop.
In Melbourne developers have been flipping their apartment sites, with BRW rich lister Paul Little selling an approved 940-apartment project in Melbourne’s Fishermans Bend for $60 million to a Shanghai developer.
Mr Gurner said that his financing was secure but he had known of several other projects where financing had been knocked back.
“It is the escalation of construction prices in Brisbane in the past 12-18 months that will pose more of an issue,” Mr Gurner said. “Projects that weren’t fully pre-sold last year are now not viable given the recent spike in construction costs, which is incredibly shortsighted as this will only hurt builders and trades in the following 12-36 months when there won’t be any new projects to commence construction,” he said.
His development is one of a number of projects that have received approval but will be put on ice in Brisbane.
Brisbane residential property developer ARIA was given approval for a new 82-storey residential tower at 171 Edward Street with 652 apartments which would become one of Brisbane’s tallest buildings worth hundreds of millions of dollars.
However, there is no plan to start construction or marketing. ARIA managing director Tim Forrester declined to comment on the approval.
Elsewhere, Urban Construct’s Woolloongabba development in Brisbane won approval for about 200 apartments but that property is now being offered for sale.
A similar situation is developing in Sydney and Melbourne.
Hong Kong-based Maville Group decided to sell rather than develop a property in Sydney’s CBD, for which it obtained a permit for 24-levels of hotel rooms and apartments.
Maville paid just under $48 million for the property at 333 Kent Street four years ago and is now seeking $90-$100 million.
Selling agent Vince Kernaghan of Colliers International said selling out had become a more attractive option.
“What I am noticing is that a lot of owners, who bought very well in the past, are deciding to take an early profit rather than spend money on development and construction.”
Foreign buyer taxes
While the owners did not give a reason for selling, Mr Kernaghan said the new foreign buyer taxes announced in NSW were a factor in some developers choosing to sell.
Ami Simon of Gresham Property, which launched a $400 million institutional-backed fund last year to provide debt to property developers, said several developers had decided to delay their projects despite winning approval.
“The availability of development finance for developers has certainly tightened and a lot of the approvals and potential supply will possibly not get developed in this cycle,” Mr Simon said.
In Melbourne last year, BRW rich listers Ashley Williams and Ron Walker, who own developer Evolve, sold a $350 million infill townhouse and apartment project in Melbourne’s Williamstown to listed developer AV Jennings for between $90 million and $100 million.
“The apartment market is pretty heated at the moment with a lot of supply coming on board,” Mr Williams said at the time. “We’ll focus on smaller, city fringe apartment developments.”
A key trend emerging in Melbourne is a preference to develop in the middle suburbs, where buyers are mainly local.
Knight Frank is tracking $175 million of site sales in the inner suburbs and a move by offshore developers into the house and land market, including the likes of Chinese group Dahua, which partnered with local developer Dacland on a $60 million acquisition in Melbourne’s west.
Original article published at www.afr.com.au by Matthew Cranston & Larry Schlesinger, 23/6/16
Di Carlo Property Group set for Broadbeach owner-occupier apartment tower
The Brisbane-based Di Carlo Property Group has ventured back in to the Gold Coast market.
The family run company, who in recent years have been developing boutique projects in Brisbane’s inner ring, have lodged plans for their first tower in Broadbeach, dubbed Lusso Sky Homes.
Lusso Sky Homes (Lusso is Italian for luxury) – is a collection of just 17 full-floor apartments at 11 Anne Avenue.
Designed by Hayes Anderson Lynch Architects, the four-bedroom apartments span over 200 sqm internally, with a further 40 plus sqm of balcony space.
The kitchen (complete with butler’s pantry), meets the living and dining space, which opens to the balcony oriented to front Anne Avenue and capture south east ocean views. The master suite, complete with walk in wardrobe and ensuite, is also cleverly located at the front of the apartment to capture the views.
In addition to the master, there are a further two bedrooms and a multi-purpose room, which has been designed o act as either a second living area, a home office, or a fourth bedroom.
Crowning Lusso will be the resident amenity rooftop terrace, featuring a pool, gym, sauna and barbecue facilities.
Alfie Di Carlo, one of the family directors at the company, says the design offering should hit the mark for the luxury buyer.
“We produce boutique, owner-occupier developments in Brisbane so we definitely wanted to stay in our lane and produce something that would service that type of buyer on the Gold Coast,” Di Carlo told Urban.
“Its a really nice pocket of the Gold Coast and it’s always been on the agenda,” Di Carlo added.
“This site ticked all the boxes given its centrally located between the beach, the Broadbeach entertainment and dining precinct, the Star Casino and Pacific Fair Shopping Centre.”
Di Carlo expects a healthy enquiry mix from local downsizers cashing in on their houses but not wanting to compromise on space, and interstate and Brisbane holiday makers who are looking for a high-end holiday home or weekender.
The development acts as another diversification for the Di Carlo Group, who have recently started developing in the retail and commercial space.
The team have over 40 years experience building and managing in excess of $500 million of property development and construction projects across South East Queensland.
Article source: www.urban.com.au
Bassar Construction Group set for Eternity, Broadbeach apartment tower
Bassar Construction Group, who are behind the sold-out Broadbeach apartment building Infinity, is preparing to release its second Broadbeach project.
Bassar, who sold out the 62-apartment, 39-storey Infinity development in March, currently under construction on the corner of Surf Parade and George Avenue, has secured a site at 14-18 Mary Avenue to developer Eternity.
Kollosche agent Simon Worthington negotiated the off-market sale of the 1518 sqm site for $16.6 million.
That sale, which settled at the start of May, paves the way for Eternity, a DA-approved 35-level development comprised of 88 apartments, including two penthouses, and resort-style amenities.
“The major appeal of this site is the unobstructed ocean views because that is what people expect when they visualise their sea change on the Gold Coast,” said Leo Sarris, who heads up Bassar Construction Group alongside Simon Bassil.
“Our commitment and focus remain in Broadbeach because we feel it is the suburb that caters for everyone and everything you need is within walking distance.” Located opposite Broadbeach State School, the site is currently home to two seventies-style blocks of flats across two titles.”
Gold Coast-based Plus Architecture has been engaged to conceive a slender design which improves upon an existing development approval sold with the site.
Eternity will offer three and four-bedroom floor plans ranging from 190 sqm to 300 sqm, in addition to the 500 sqm for the penthouse suites.
Apartments will each have a double garage, while the penthouses come with triple car parking, a rooftop terrace and a plunge pool.
Residents will also benefit from a magnesium pool and spa, infrared sauna, steam room, gym and residents’ lounge.
“We know that buyers in the luxury space prefer to have larger apartments,” said Sarris.
“That third or fourth bedroom is important for downsizers who like to host guests and for growing families who prefer easy, low-maintenance living.”
Kollosche New Projects has been appointed as the exclusive selling agents for Eternity, with registrations of interest now being taken ahead of the official project launch in June.
Hutchinson Builders, who are also building Infinity, have been appointed by open negotiation to lead a 2.5-year construction timeline which would see the team break dirt in early 2023.
Sarris noted the key relationships forged on Infinity have carried over to Eternity, creating not only a smooth pathway for the developer but also confidence for buyers.
“Aligning ourselves with the right people in the industry has been key to our success on the Gold Coast to date and we’ve been very deliberate in taking those relationships into our next project,” said Sarris.
“When you look at the issues we’ve faced as an industry through Covid – be that increases in material prices and supply issues – you’re always better off working with people that you know will take the project to completion with you.”
Article source: www.urban.com.au
$1.4b Jewel finally set to shine with The Langham opening in June
The $1.4 billion Jewel development, completed two years ago and still with only a handful of apartment sales under its belt, is finally set to come to life with the announcement that Langham Hospitality Group will open its long-awaited five-star hotel at the property in June.
The Langham Gold Coast will be the third hotel in Australia for the Hong Kong-based hotels group which takes its name from the legendary Langham in London.
It will also be the second five-star hotel opened on the Gold Coast since The Star Entertainment Group’s (ASX: SGR) The Darling welcomed its first guests at Broadbeach in 2018.
The 339-room Langham hotel, set to open on 23 June, will occupy the central tower of Jewel Residences, the largest of the three-tower complex located on the beachfront at the southern end of Surfers Paradise. The hotel offering will comprise 169 hotel rooms and 170 serviced apartments within the tower.
The opening has been hotly anticipated since the announcement in mid-2020 that The Langham would be managing the hotel component of Jewel. The hotel was originally expected to open by Christmas last year as fitout work progressed through the year.
With bookings for the hotel opening on 16 May, The Langham Gold Coast has revealed the hotel offering will introduce a host of new restaurants and amenities to appeal to tourists and locals, including the lobby lounge’s Palm Court, modelled on The Langham London’s famous afternoon tea venue, and an all-day dining offering named Akoya.
Later this year, The Langham will introduce T’ang Court – sister venue to the group’s Michelin-starred restaurants in Hong Kong and Shanghai – as well as an open-air terrace bar, Coral Moon, and the casual dining outlet 26 & Sunny. The Langham will also introduce a holistic wellness centre that embraces traditional Chinese medicine.
The planned opening has been described as a milestone for The Langham, its first beachfront property ‘in one of the world’s most desirable travel destinations’.
“Since first opening in London in 1865, The Langham has built an unmatched, global reputation for timeless elegance and a true five-star experience,” says John O’Shea, general manager of The Langham Gold Coast.
“The Langham Gold Coast will bring together Langham’s global expertise in luxury hospitality and gastronomic dining with an iconic Gold Coast oceanfront location to provide a unique, one-of-a-kind hotel, dining and events experience. The team have been working hard behind closed doors to add the final sparkling touches to the hotel and now, we can’t wait to welcome our very first guests into what will be a new era of luxury for the Gold Coast and beyond.”
Destination Gold Coast CEO Patricia O’Callaghan welcomed the announcement which she says introduces a ‘globally recognised brand’ to the Glitter Strip.
“As the first development with direct beachfront access to be built on the Gold Coast for 30 years, The Langham will bring a new level of luxury accommodation to our city,” says O’Callaghan.
The opening of The Langham caps off more than a decade of hurdles and controversy for Jewel, a project that has changed hands multiple times since it was first mooted in 2011 by Chinese company Ridong Group for the prime 1.1ha beachfront site. Jewel was touted by the industry as the kickstart the Gold Coast economy needed at a time when it was still suffering the extended fallout from the Global Financial Crisis.
Although the project was called in by the Queensland Government in 2012, fast-tracking the development, the site lay dormant for years until Ridong sold a majority interest in the project in 2015 to Beijing-based Dalian Wanda, owned by Wang Jianlin, who at the time was Asia’s richest person. Ridong would later offloaded its remaining 45 per cent stake to Sydney-based Yuhu Group, another company backed by Chinese interests.
However, a crackdown on foreign capital outflows from China thwarted progress of the development and Dalian Wanda was forced to sell full control to Yuhu Group in 2018.
Originally pitched as a drawcard targeting the then lucrative inbound Chinese tourist market to the Gold Coast, led by direct flights to the Gold Coast from Wuhan that were introduced by Dalian Wanda, Jewel took a different tack under Yuhu’s ownership. The company poured more than $100 million into redesigning the Jewel project’s interiors, including apartment layouts.
However, since the project was completed in 2019, just 18 of Jewel’s 520 planned apartments have ever settled – despite the Gold Coast experiencing its biggest property boom over the past two years, driven by a shortage of apartments.
When Jewel was relaunched to the market in 2018, two-bedroom apartments were priced from $2.575 million and three bedrooms from $3.982 million, which at the time was considered well above the prevailing market.
Despite the planned opening of The Langham, there are still no signs of a new marketing push by Yuhu to sell the remaining apartments in Jewel.
Article source: www.businessnewsaustralia.com
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