- Berwick House is Pellicano's fifth build-to-rent project
- Will be home to 110 residences
- Comes as vacancy rates in Brisbane continue to decline
Diversified developer Pellicano has commenced construction on the 110-residence Berwick House – its latest build-to-rent (BTR) project.
The $60 million project in Brisbane’s Fortitude Valley is scheduled for completion in early 2024. It is one of five BTR projects currently under construction by Pellicano, which cumulatively consist of about 500 residences across Victoria and Queensland.
The projects fulfil the company’s strategy to deliver 2,000 apartments over the next five to seven years.
Cottee Parker will be designing the project with landscaping by RPS. The project is located at the suburban cul-de-sac at 60-70 Berwick Street, which is within the James Street precinct. On top of this, it is near the Howard Smith Wharves retail precinct.
The nine-storey residential tower will feature 207 sqm of retail, a rooftop pool, an outdoor dining area. It will also feature co-working spaces that residents can use.
Pellicano Living comes as vacancy rates have continued to decline in Queensland, an issue which has been further exacerbated with recent flooding.
SQM Research shows the residential vacancy rate in Brisbane has been declining since 2016, with significant falls since the pandemic began.
Challenging times, but confident
Managing director Nando Pellicano noted that while fundamentals are sound, rising construction costs and industry-wide disruptions are making projects more challenging.
“We have a strong strategy around build-to-rent, and we remain confident in the sector – unfortunately the rising cost of construction, scarcity of materials and ongoing labour shortages are really hurting the industry,” said Mr Pellicano.
“Across the board we’ve probably noticed about a 20 percent increase in costs in the last 18 months, which makes projects like this much harder to stack up – but we know the Brisbane market well, and we’re confident Berwick House will become a popular local project.”
Nando Pellicano, Pellicano
Mr Pelicano reaffirmed the project is located close to a range of lifestyle-led amenities, including employment opportunities, although the building will facilitate those wishing to do so from the convenience of their home.
“We are incorporating a co-working space within Berwick House, consistent with what we’re doing across our portfolio, to accommodate the ongoing desire for greater work-from-home facilities within new residences.”