A major developer has paid $64.5m for a Brisbane riverfront site with plans to build more than 200 apartments at a time when the nation’s fastest-growing city is crying out for more housing.
It comes as new figures show construction timeframes have ballooned by 58 per cent in Queensland, and the state is still about 100,000 homes short of meeting its share of the 1.2 million national target by 2029.
Consolidated Properties Group (CPG) has bought the 9,368 sqm site, featuring 47m of direct river frontage, at 47 Skyring Terrace, Newstead, in an off-market deal from Mirvac Group.
Consolidated Properties Group has paid $64.5m for one of the last remaining riverfront sites in Newstead. Image supplied.
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Zoned for mixed use, the site has potential for up to 42,000 sqm of floor space and a maximum building height of 25 storeys under the Brisbane City Plan.
While many private developers are struggling to find a builder to take on their projects, CPG has managed to sign Hutchinson Builders to deliver the apartments.
CPG CEO and Chairman Don O’Rorke said the Newstead site offered a rare opportunity to deliver a “super-premium” luxury residential apartment building in a prime inner-city location.
Consolidated Properties Group has paid $64.5m for one of the last remaining riverfront sites in Newstead on Skyring Terrace, with plans for a 25-storey apartment building. Image supplied.
“Sites like this are as rare as it gets,” Mr O’Rorke said. “We thought Monarch might be a one-off, but at Newstead we’ve been fortunate to have the opportunity to create another iconic residential address right in the heart of the city on the Brisbane River. This will be something elevated in every sense — something truly special.”
RELATED: National Housing Accord 60,000 new homes short in first year
It comes as the federal government’s National Housing Accord prepares to mark its first-year anniversary, with the latest ABS figures showing Queensland has only approved 34,301 homes in the past 11 months.
Institute of Public Affairs (IPA) analysis of recent ABS data shows, on average, between 2014
and 2024, the time to build a home in Queensland increased from six months in 2014 to more than 10 months in 2024 — a 58 per cent jump, with housing construction material costs also rising by 58 per cent.
Developer Don O’Rorke from Consolidated Properties Group. Picture: David Clark.
Brisbane architect Nick Symonds, Director of MAS Architecture Studio, said the demand for high-density housing was high, but the delivery pipeline was struggling to keep pace.
“These aren’t townhouses or boutique builds,” Mr Symonds said. “We’re talking about substantial residential projects with hundreds of apartments, and developers can’t find a builder willing or able to take them on under current conditions.
“Tier-one contractors have stepped away from major residential developments — not
because they lack interest, but because these projects take too long, carry too much
risk, and no longer stack up commercially compared to government work.”
MAS Architecture managing director Nick Symonds.
Mr Symonds said Olympic-related infrastructure and major public works were absorbing much of the available construction workforce.
“The Olympics is creating thousands of jobs, which is great, but it’s pulling trades away
from residential construction at the worst possible time,” he said.
CPG plans to lodge a development application later this year with award-winning
architects, Woods Bagot, who are already working on concept plans.
CPG head of residential James MacGinley said the development would include a mix of boutique riverfront villas and 2-and 3-bedroom apartments, with north-east views up the river
towards Hamilton Hill.
Consolidated Properties Group head of residential, James MacGinley.
“It is peerless and there is no better development site in Brisbane,” Mr MacGinley said. “We plan to do it justice and deliver a signature building for the city.”
Colliers Queensland residential director Brendan Hogan, who negotiated the offmarket purchase with Troy Linnane, said demand for prestige development opportunities in Brisbane was outpacing supply.
“Opportunities like this simply don’t come up anymore. This is the last of its kind on the Newstead waterfront and arguably the best-located residential site in the city,” Mr Hogan said.
“We’re seeing exceptional demand in the premium apartment market, with ‘off-the-plan’ riverfront apartments achieving prices over $35,000 per square metre of net saleable area.
“The surge in apartment prices is largely driven by the demand from owner-occupiers who are
seeking premium and larger apartment stock, which has accounted for the majority of sales in the market over the past two years.”
The site acquisition reflects broader supply-side pressure in Brisbane’s residential pipeline.
Population forecasts show Brisbane will grow by more than 500,000 people during the next decade — faster than both Sydney and Melbourne — and inner-Brisbane is expected to face a shortfall of over 14,000 new apartments in the next four years alone, according to SQM Research.
“We know Brisbane is the nation’s fastest-growing city with unlimited potential and we’re building for that future,” Mr O’Rorke said.
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