Brisbane

Renters Seek Out Lifestyle in South-East Queensland

For the first time on record renters are paying more to live in a unit in Brisbane than their urbane Melbourne counterparts.

Brisbane rental prices have soared to a new high with residents of southern states migrating north not only for the sunshine, but a less Covid-impacted lifestyle.

Data from Domain’s Rent Report for the fourth quarter of 2020 shows that the median unit rental price in Brisbane was $400, compared to Melbourne’s median rental price of $388, a four-year low, making Melbourne a tenant’s market.

Domain senior research analyst Nicola Powell said the increased rental demand was largely driven by people relocating to Brisbane during Covid-19 and the resumption of local and interstate short-term travel.

“Tenants are seeking liveability, affordability, and are no longer tied to a specific location in the work-remote era,” Powell said.

“A rebounding jobs market and lifestyle locations will continue to see accelerated demand, factors that are likely to drive significant rent rises.”

The Sunshine and Gold Coast outperformed Brisbane in unit rental yields with a median price of $430 and $445 respectively.

“It is clear lifestyle locations are experiencing an increase in demand from local travellers and those working from home opt to relocate,” Powell said.

Median house rent prices

Nationally house rental prices have continued to surge ahead with rents now at a record high, following the steepest annual gain in more than a decade.

But this is in stark contrast to the unit rental market, which experienced its steepest decline in price to 2014 levels.

This steep decline in unit rental markets has largely been driven by Melbourne and Sydney who are heavily exposed to the cessation of international migration, international students and local and international tourism.

There has also been an increase in first-home buyer numbers.

Across the rest of the country the story is not as bleak.

Sydney house rental prices reached a record high with a quarterly increase of 1.9 per cent to $550 per week.

This has been largely supported by a migration to the outer suburbs, the Blue Mountains and the Central Coast.

Median unit rent prices

Adelaide is now the most affordable city to rent a house or unit, despite a strong growth in house rental prices last quarter.

Canberra is officially the most expensive place to rent either a house or a unit, and with a less transient population with travel restrictions in place this is likely to continue.

“Tenants will find securing a lease remains competitive and some may have to resort to offering above advertised asking rents,” Powell said.

“The estimated number of vacant rentals is 24 per cent lower annually.

“This lack of vacant rentals will continue to drive up rent prices.”

Rental vacancy rates have plummeted 63 per cent compared to the previous year in Perth, where it is now a landlords’ market, and the city has posted the biggest rental recovery over the December quarter.

House rental prices have increased 6.3 per cent to a median rental asking price of $420, and units increased by 2.9 per cent to a rental price of $350.

Hobart’s rental prices remained steady, and it continues to be the tightest rental market in the country.

Darwin posted significant increases in rental prices, now at a peak last seen in 2017.

Article Source: theurbandeveloper.com

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Brisbane

Barwon secures Princess Alexandra Hospital car park

Barwon Investment Partners has snapped up a multi-level car park and medical centre on a site with significant development upside opposite Princess Alexandra Hospital.

The Woolloongabba asset at 250 Ipswich Road is setting the healthcare focused fund manager back around $95 million, reflecting a circa four per cent net passing yield.

The property contains an eight level, 773-bay garage attached to a two floor wellness centre with 21 tenancies, anchored to Gabba Dermatology, Brisbane Cardiology and Allied Health; the Weighted Average Lease Expiry is nearly seven years.

A pedestrian overpass connects the building to the Princess Alexandra Hospital, also a major teaching campus, employing 6810.

The 5106 sqm block has significant upside – up to 15 storeys based on its zoning, according to JLL’s Seb Turnbull, Elliott O’Shea and Simon Quinn, who marketed the asset with a Blight Rayner scheme.

BIP invests again

Established in 2006, BIP holds a property portfolio worth $2.3 billion.

Its medical related product, much held in a Healthcare Property fund, is priced at about $1.4b as at March, 2022.

Seven months ago, for the trust, the manager paid Forza Capital $34.7m for a South Brisbane medical centre – not far from 250 Ipswich Rd – and two Canberra assets including Belconnen’s Ginninderra Medical & Dental Centre on nearly a hectare.

Also late last year BIP spent $75m for a 12 level St Kilda Rd office majority leased to Alfred Health.

More to come.

Article source: www.realestatesource.com.au

Brisbane

Brisbane’s Office Market Greenlit for Business

Brisbane’s office market continues to shake off the pandemic doldrums with two new commercial towers approved in the CBD and fringe suburbs.

Property owner PGIM and development partner Indema’s plan for a bold adaptive reuse of a 1970s commercial building at 444 Queen Street has won approval.

The bronze 22-storey tower opposite Customs House will be stripped back to its core structure and completely remodelled with a new podium, curtain wall facade and an additional two-storey sculptural canopy.

Indema director Michael Bruderlin said they would be targeting a net zero certification for the building upon completion in the first quarter of 2024.

Bruderlin said Hutchies had been engaged in an early contractor design and construct contract to help de-risk the project and better understand the technical requirements.

The Fender Katsalidis-designed tower follows in the footsteps of another of its commercial adaptive reuse projects in Brisbane, Ashe Morgan’s Midtown, now the headquarters for Rio Tinto.

Bruderlin said retaining and repurposing the existing building is 400 per cent more environmentally friendly. Retaining the existing concrete structure provides a 70 per cent saving in embodied carbon.

The project will rejuvenate a 48-year-old building at the end of life into an A-grade commercial office asset and increase the net leasable area 40 per cent.

Bruderlin said the project would have a quicker turnaround than a normal demolish and build project and it would use clever design initiatives to increase floor plates and create a better value proposition for the asset.

PGIM purchased 444 Queen Street for $54.4 million from the Public Trustee of Queensland and Abacus Property Group in October last year.

Cornerstone has also won approval for a commercial development in the city fringe suburb of Fortitude Valley.

The Bureau Proberts-designed tower will capture the heritage brick character of the Fortitude Valley centre “borrowing from the intent of these buildings but with a stridently different and contemporary expression”, planning documents said.

“This approach is a deliberate counterpoint to the strong and solid brick structures of the immediately adjacent 47 Warner Street and McWhirters buildings.

“Brickwork or masonry is not used as a material in deference to these neighbouring buildings allowing them to become more evident and make a clear statement about the era of their inception.”

The 28-storey commercial tower at 251 Wickham Street features a stepped slanting facade fronting Warner Street, with a four-storey lobby, and an inverted podium.

There will also be a rooftop terrace, 20m pool and open-plan gym in the commercial tower, with retail offerings at the base of the building.

Brisbane’s metropolitan office market vacancy was at 16.3 per cent at the end of March and there were few transactions across the quarter, according to Colliers research.

But yields remained steady, and well above other capital cities, while incentives remained stagnant at 40 per cent.

Article source: www.theurbandeveloper.com

Brisbane

Developer Pitches for $130m Shop-Top Housing on Bayside

Brisbane’s bayside could be going up in the world with plans for $130-million highrise shop-top housing in the heart of the seaside suburb of Wynnum.

Brisbane-based developer Hambros has lodged plans for a 21-storey apartment tower on the vacant lot neighbouring the Wynnum Central Shopping Centre, after winning approval for an small extension to the retail centre late last year.

The development comprises a 6-storey retail and commercial podium, with a 275-apartment tower above, backing on to Wynnum Central Park.

Hambros has reportedly spent about $14 million on revamping the Wynnum Central Shopping Centre on Bay Terrace, as part of a $74-million plan to rejuvenate Wynnum, including cinemas.

According to planning documents lodged with the Brisbane City Council, the tower will be made up of 54 one-bedroom apartments, 148 two-bedroom apartments, and 67 three-bedroom apartments, with six penthouses, which will have private rooftop space and their own pools.

The building height is well in excess of the allowable five to eight storeys in the Wynnum Manly Neighbourhood Plan, but town planners Gateway Survey and Planning argued the plan was “outdated” and should be overhauled.

The six-storey podium would contain two levels of parking, a retail tenancy at ground level, a floor of retail, with two storeys of commercial space for office, healthcare and events space on levels 5 and 6.

Developer Pitches for Shop-Top Housing on Bayside Brisbane

▲ Shayher Group won approval for its redevelopment of Wynnum Plaza last year, which included 184 apartments across eight residential buildings.

In a statement to the council Hambros director Justin Ham said the Wynnum CBD had been left behind “with no development occurring in the last 20 years”.

“Our project is designed to put Wynnum CBD on the ‘open for business’ map,” Ham said.

“This landmark development, with a construction cost estimated at $130 million will have a huge financial and community positive impact on the Wynnum CBD and surrounding areas.

“It’s a once-in-a-lifestime opportunity to create a beautiful space overlooking the best bay in the world.”

Ham said the development would bring much-needed foot traffic to the heart of the Wynnum CBD and help bolster businesses and landowners he said were struggling to remain profitable.

Taiwanese developer Shayher Group won approval for a masterplanned retail precinct at Wynnum Plaza with plans for 184 apartments across eight residential buildings as well as boutique cinemas and increased retail space, reportedly worth more than $100 million.

Work on the Wynnum Plaza redevelopment was due to commence later this year with a completion date hedged for 2024.

Article source: www.theurbandeveloper.com