- Qube settles the aqusition of infill site in Gosnells.
- Registrations of interest closed 90 minutes after opening.
- The site is set for the development of 58 residential lots.
QUBE Property has announced the settlement of a recent acquisition. The Western Australian-based developer purchased a 4.22-hectare, undeveloped site in the City of Gosnells from the original landholder, who has owned the site for over four decades.
The infill site is situated on Southern River Road and Chamberlain Street and was considered to be a great opportunity.
“This site appeals on a number of fronts for us and for our investors,” said QUBE Property managing director, Mark Hector.
“It can be readily serviced from existing adjoining infrastructure, is well serviced by public transport, a five-minute drive to Gosnells Train Station, and is well connected to major arterial roads such as Tonkin Highway.”
The developer is intending to submit a subdivision application for the site, which will see the construction of 58 residential lots, averaging 450 square metres, with the smallest being 375 square metres.
The Gosnells median house price is currently $390,000 and has recorded strong growth over the past 12 months, with an annual positive change in the median house price of 11.4%, according to the Real Estate Institute of WA (REIWA).
Weekly asking price for 6110, including Gosnells
“The average cost of properties in this location is generally at the more affluent end of the first homebuyer market where we are currently seeing low supply and significant and ongoing demand,” said Hector.
He added that the economy and population growth continue to strengthen, backed by a resilient resources sector that continues to attract those from the eastern states and overseas to Perth because of our strong employment opportunities and because our property market remains the most affordable compared to the other states.
“The gradual easing of inflation and predicted flattening of interest rates as we head into 2024 is a positive for the market and we anticipate will help normalise construction costs over the next few years.”
Gone in the blink of an eye
The capital raise, just under $6 million, was a swift affair. Hector said registrations of interest (ROIs) from the company’s investor base closed within 90 minutes of opening.
He added that he wasn’t surprised by the strength of the investor appetite for this asset, because it has a very favourable risk, return profile and a relatively short development time frame of under three years, which is rare for most residential development.
“The speed with which this offer was taken up and the fact that we had to cut back on some allocations shows a strong appetite for certain asset classes and I think this infill project ticked a lot of investor boxes.”
The purchase comes during a period of prudence for QUBE, as the last 18 months to two years have seen market volatility and external issues continuing to impact markets.
“We are always strategic in our evaluation and acquisition process and are rewarded by strong loyalty and support from our investor base as was the case with this opportunity.
“We continue to seek out development opportunities across Perth that make sense for us and for our investors and look forward to a further ramp up in activity in 2024.”