Melbourne-based Kokoda Property Group has lodged plans with Brisbane city council to build a $1.5 billion mixed-used development in the riverside suburb of Teneriffe.
Previously home to a sand and gravel business for half a century, the 17,612 sqm site, zoned for mixed-use, has a 220m-plus river frontage and was bought by Kokoda Property last May for an all-time Brisbane record price in excess of $100m.
A collaboration between design partners Cottee Parker Architects, Carr, Urbis Town Planning and Landscaping, the riverside project is expected to include:
- Three distinct buildings with 380-plus high-quality residences including one, two, three and four-bedroom apartments and wool store-style lofts.
- A 9,149sqm boutique hotel.
- A large plaza.
- Extended riverwalk.
- Pathway connecting the newly extended riverwalk back to Skyring Terrace.
- Laneways provide links through the site to the ferry terminal and CityGlider bus stop.
- 15 office tenancies totalling 2,400sqm and 2,800 sqm of retail.
- Cafes, and restaurants.
Subject to approvals, construction is expected to start in the second half of next year and take 25 months to complete.
Improving building conditions
With higher input costs – which contributed to 660 construction companies collapsing nationally this year – finally easing, Kokoda Property founder and managing director, Mark Stevens concluded that projects like Riverside Teneriffe were now looking decidedly more viable.
Stevens notes with construction costs finally easing, coupled with growing confidence that the rate-tightening cycle is close to its peak, developers are more capable of meeting demand, especially from owner-occupiers willing to pay more for well-located apartments.
“Building prices have stabilised and revenues are starting to creep up,” he told the Australian Financial Review.
“The cost of funds has come down. It’s a combination of these three things.“
Consumer confidence is returning
What’s clearly buoying consumer confidence, adds Stevens, are both an uptick in auction clearance rates on the eastern seaboard and higher housing values.
He’s currently witnessing a lack of pushback from buyers to negotiate different terms, which suggests incentives aren’t necessary to attract buyers.
Stevens was also encouraged by an uptick in demand for Brisbane apartments, with a project at Milton [close to Teneriffe] selling 100 of its 144 off-the-plan units six weeks after launch.
Further evidence of returning demand is also evident within new Australian Bureau of Statistics (ABS) figures which show:
- New housing approvals, a barometer of future activity, were up 7% in August to a seasonally adjusted monthly total of 13,647, following two months of decline.
- Detached house approvals picked up 6% to 8762.
- Apartments, townhouses and semi-detached homes rose 8.8% to 4886.
Image: Kokoda Property’s proposed $1.5 billion Teneriffe development on the Brisbane River
