Big developers add to Brisbane project pipeline

Demand for Brisbane development sites continues to rise, with national giant Frasers Property Australia and local firm Mosaic Property Group settling a pair of separate transactions this week, collectively valued at more than $21 million.

Frasers Property Australia announced that it had acquired a plot in Brisbane’s Newstead for $16.5 million, where it is planning to build a mix of apartments and terrace homes.

The 3,016 square metre site is located on the corner of Chester and Morse streets and has direct access to Brisbane’s popular James Street retail and entertainment precinct. 

Frasers Property Australia executive general manager of development Cameron Leggatt said the site provided the company with a unique opportunity.

“Not only is this site well-positioned to provide future residents easy access to James Street, but it is also located close to The Gasworks precinct and Brisbane River.

“It presents an opportunity to create a boutique, high quality project with a higher proportion of 3-bedroom apartments and terrace homes.”

Mr Leggatt said the regeneration that has occurred in recent years in Newstead and Teneriffe had made it one of Brisbane’s most desirable lifestyle areas.

“Given the strong demand for homes in south-east Queensland, we look forward to creating a place that leaves a positive legacy in the community and brings much-needed housing choice to the locality,” he said.

The off-market deal was brokered by JLL’s Elliott O’Shea, Tim Jones and Sam Byrne.

Meanwhile, Knight Frank said it had finalised a $5.7 million deal involving four private vendors on behalf of Mosaic Property Group in Toowong.

Mosaic acquired two properties located at 36-38 Sylvan Road and two at 1-3 Standring Street to create an amalgamated development site.

Earlier this year, Mosaic announced plans to build an eight-level, 63-apartment building known as Kensington at the site, which will be the company’s eighth project in Brisbane’s inner west.

Settlement of the deal was timed to allow Mosaic time to obtain development approval, launch marketing activities and begin construction as soon as the transaction was completed.

Mosaic Managing director Brook Monahan said Mosaic was attracted to Toowong because of a genuine appetite for an inner city lifestyle.

“Everything you could possibly want is in such close reach, including some of the most significant infrastructure projects of our generation, such as Brisbane Live, the Victoria Park redevelopment, Queensland Wharf, and Toowong's new $450m mixed-use town centre, The Aviary,” Mr Monahan said. 

Knight Frank’s Matt Barker, who was part of the team that negotiated the sale, said the deal was indicative of the rising developer interest for suitable sites across Brisbane. 

“The biggest challenge is finding quality sites, which is why Mosaic worked hard to secure this particular property,” Mr Barker said. 

“Since launching the Kensington project in late April, Mosaic has sold all but two remaining apartments, which is an astonishing result and a key indicator of the strength of the residential market.”