- The site is on the corner of High Street and Sherwood Road.
- Purchaser intends to undertake JV with adjoining owner to develop a new town centre.
- The proposed $1B project will include retail, office, and residential.
A Brisbane-based investment company has acquired a 9,000 square metre (sqm) development site on the corner of Sherwood Road and High Street, also known as Aviary Toowong.
The site was purchased from Ray White Capital (RW Capital) and State Development Corporation in a $53 million deal.
A new $1 billion town centre may be developed, with the purchaser intending to undertake a joint venture with the adjoining owner at 80-88 Jephson Street. The development will see new retail, office, and residential development over a total of 1.3 hectares of land.
“We are delighted that the purchaser will look to develop the property,” said MD of State Development Corporation, Ross McKinnon.
“Since launching the development in 2020, we have received overwhelming support from council, local residents, and retail tenants, and we have no doubt that once built, the project will provide fantastic amenity to the Toowong community.”
The deal was negotiated by Christian Sandstrom, of Knight Frank. Sandstrom also originally sold the site to State Development Corporation and introduced the new purchaser in the current sale.
Sandstrom said he had been working with the purchaser for an extended period in transacting the deal.
“This property is in a prime site in the heart of Toowong, and will follow other recent developments including the Monarch development on the old ABC site and Mosaic developments on Sylvan Road and Archer Street.”
The sale was completed in conjunction with Ian Heatherington from Ray White.
Much needed supply
Any incoming residential stock will be warmly welcomed, with rental supply in Toowong at significant lows; the latest rental supply peak was barely above the lowest troughs recorded in 2011 and 2012, according to SQM Research data. The vacancy rate is currently 1.3%.
Weekly rent listings for 4066, including Toowong
Properties available for sale in the suburb are also subdued, with the latest SQM data showing a total of 116 listings.
Total property listings for 4066, including Toowong
According to Domain data, the median three-bedroom house price for the suburb is under $1.2 million, and spent an average of 54 days on market.
Other developments in the suburb include Monarch Residences, a $450 million project that is being constructed by Hutchinson Builders, and delivered by Consolidated Properties Group, in conjunction with funding partner Qualitas.
Consolidated Properties Group purchased the Monarch site at 600 Coronation Drive for $43.5 million from Sunland in March 2021. The development application was filed in November 2021 and approved in July last year.