Demand for ‘new age’ facilities driving Brisbane rental market
Renting an apartment close to the city no longer means compromising on space or private amenities. It’s now all about lifestyle living with access to resort style facilities on your door step at Metro’s Canterbury Towers where more than 130 leases have been signed since project completion in July.
Central Village, managed by leading QLD property management company Tessa Residential, is now the largest residential complex in Brisbane with 520 apartments in total.
To date, more than 2,760 people have enquired about renting the 136 available apartments in the $90 million stage three development. Across all three stages of Central Village, only 6 apartments remain available for rent.
Metro General Manager of Sales and Marketing, Peter Hobbs, said that new apartments close to major employment nodes, public transport and major infrastructure were in high demand.
“We have seen significant demand from your professionals with single or double incomes and no kids who want to live, work and play in their local catchment. Canterbury Towers offers all of these with the added luxury of world-class facilities,” Mr Hobbs said.
“It’s no surprise that the development is more than 94% rented only a few months after completion. We were blown away with the high level of enquiry we received for the rentable apartments.
“Today’s young professionals are keen to rent their place of residence to be close to the action and they don’t want to compromise, they want it all in the one place.”
“What’s unique about our Canterbury Towers development is the converted heritage buildings we have on site which provide residents with a state-of-the-art gym and a resident’s lounge with pool table, recreation area and library. While outside, they can relax on the yoga lawn or on the man-made beach beside the lagoon pool.”
Managing Director of Tessa Group, Brendan Tutt said that premium rentals like Canterbury Towers apartments are always in high demand and the work Metro Property Development have done to deliver such a project has resulted in a strong take up despite market noise.
Mr Hobbs said from an investment point of view Canterbury Towers was an excellent example of investors taking advantage of new Brisbane property which had higher yields than southern cities.
“Brisbane still has better priced apartments than Sydney and Melbourne but rents have remained strong. For example, at Canterbury Towers the rental yield is a solid 4.52%. According to JLL’s October 2016 Brisbane Apartment Market Report, gross rental yields for apartments in Brisbane have increased 12 basis points to 5.01% over the year to 2Q16 and are in line with the 5-year average,” Mr Hobbs said.
“People are keen to trade up in the Brisbane market, and this includes demand from the rental market for new properties that offer more than just a place to sleep. At Canterbury Towers, we have seen quite a number of tenants who have moved from the older building that don’t have a pool or gym,” Mr Hobbs said.
The Urbis Inner Brisbane Apartment Rental Review (June Quarter 2016), surveying around 4,000 new and near-new apartments across the Inner Brisbane, indicated a vacancy rate of 1.6%, a significantly tighter rental market when compared to the total Inner Brisbane rental market, which recorded a 3.4% vacancy rate for houses and units according to the Real Estate Institute of Queensland (REIQ).
Urbis Associate Director, Paul Riga, notes that this firmly highlights the attractiveness of new apartments to renters.
“The Inner Brisbane rental market is becoming increasingly competitive and we are progressively going to see a ‘flight to quality’ – with tenants looking for developments that offer lifestyle amenity – essentially high quality and useable facilities that offer a point of difference.” Mr Riga said.
Across the Central Village development, including Oxford Towers, Cambridge Towers and Canterbury Towers, only 6 apartments remain available out of the total 520 apartments.
HOUSING DEVELOPERS SNAP UP WHOLESALE BUILDING MODEL
High profile residential developers and government bodies are embracing the wholesale building model to maximise returns and deliver affordability in a tightening market, with
Creation Homes (the home building arm of Metro Property Development), witnessing a rapid take up of its product within 12 months of releasing it to the New South Wales market.
Creation Homes has reported a strong first year in NSW, signing up more than 200 residential home builds, with plans to increase on this in the 2016‐2017 year.
Creation Homes is currently working with high profile developers such as Stockland and Lend Lease on large residential communities projects across Queensland and Victoria, supplying
housing solutions through its wholesale model. Government agencies are also favouring the wholesale approach, with Creation Homes recently appointed to deliver homes at a new estate in Kellyville.
In addition to this, Creation Homes is also developing its own independent house and land projects in key growth suburbs across metropolitan Sydney such as Eden, a 150 lot project in Catherine Field in Sydney’s south‐west and within the Gables at Box Hill. Creation Homes was formed in 2010 in Melbourne and has since rapidly expanded, delivering over 500 homes in total in the last 12 months. It was recognised in 2013 with a BRW Australia’s 7th Fastest Growing Business award.
“Through the wholesale building model we can deliver brand new architecturally designed homes at affordable prices. Interest from the major players is a true reflection of the market’s need for greater options and acceptance of the wholesale model and we expect to build quite significantly on our first year’s results,” said David Mann, NSW General Manager at Creation Homes.
“Traditional mainstream house and land developers set retail building rates, whereas the Creation Homes wholesale building model allows us to cut out the middle‐man and source wholesale building materials to deliver projects at wholesale building rates,” said Mann.
Affordability is further maximised by forgoing expensive extras often priced into mainstream home builders prices such as in‐house sales teams, big ticket marketing campaigns and large furnished display homes and villages.
Residents set to move into their slice of inner-city luxury at Balwyn
Enjoying the lifestyle and convenience of inner-Melbourne’s highly sought after suburbs, without the hefty price tag, is now a reality as residents move into their luxury boutique homes at Metro Property Development’s Acacia Residences at Balwyn.
Situated on exclusive Banool Road, Metro’s Acacia Residences was completed this week with settlements now underway with buyers who secured one of only 12 architecturally-designed three and four-bedroom homes.
Metro State Manager – Victoria, David Steele, said the luxury development, which sold out within two weeks of hitting the market, was completed ahead of time with residents set to move in over the coming weeks.
“Our Acacia Residences at Balwyn blitzed the market when they were launched last year, showcasing the buyer appetite for new boutique developments in one of Melbourne’s most popular suburbs,” Mr Steele said.
“The new boutique homes provide the right mix of lifestyle, luxury and location and we are thrilled with how the development has come together. We are very excited to see residents take ownership of their new homes over coming weeks.”
With an average price of $1.35 million, the exclusive development was popular with both downsizers and young families looking to secure their piece of the Melbourne property market.
“Balwyn is one of the city’s premier suburbs with great amenities and excellent schools. This, combined with the high-level of luxury detail on offer at Acacia Residences, proved very popular with both locals looking to downsize and also young professionals and families who are keen to get a foothold in an established and leafy suburb,” Mr Steele said.
Built by Metro’s building arm Creation Homes, the development offers enviable and rare Mews style living, landscaped gardens and innovative floor plans to suit a variety of lifestyles.
In addition to Acacia Residences, Metro currently has three other boutique developments under construction including The Lincoln South Yarra, Saxon Residences at Ivanhoe and Highbury Townhomes at West Footscray.
In addition, Metro is working on development plans for recently acquired sites at South Kingsville and Maidstone, in Melbourne’s up-and-coming inner-west.