- A Canberran apartment hotel is expecting to fetch $50M.
- Four townhouses in regional NSW are being developed, expecting over $2.5M each.
- The Gold Coast is also set to see more townhouses hit the market.
After development slowly resumed in 2022, more smaller properties are hitting market again. Over $50 million in townhouse developments across the east coast have been announced, and a $50 million apartment hotel is on the market, following a shaky start to 2023.
The sales come as Australia’s real estate market has gotten off to a shaky start. This month, the Australian Bureau of Statistics (ABS) released its latest figures (reference period November) for dwelling approvals, with houses approved down over 13 per cent year-on-year, and total dwelling units approved down over 15 per cent. The monthly changes were down 2.5 per cent and 9 per cent respectively.
ABS data released this month for building activity (reference period September 2022) showed total dwelling commencements fell 5.2 per cent to 45,489 dwellings, with new houses down 4.9 per cent. The value of building work, however, rose 1.5 per cent to $30.6 billion.
House price decline relives buyers
January also kicked off with news that Australian house prices saw its largest ever value decline, according to CoreLogic.
The CoreLogic Daily Home Value Index (HVI) recorded a decline of -8.40% as of 7 January this year. This follows the peak on 7 May 2022.
This breaks the record of -8.38%, which occurred between October 2017 and June 2019.
However, while that downturn lasted 20 months, this price fall occurred in less than nine months.
CoreLogic Economist Kaytlin Ezzy says “The downswing has meant buyers who were previously priced out of some markets might start to see opportunities appearing, particularly in cities where larger downturns have been recorded such as Sydney, Melbourne, Brisbane, Hobart and Canberra. However, it’s likely much of the benefits of falling values have been offset, with rising interest rates pushing serviceability buffers and mortgage repayments higher.”
In particular, smaller dwelling such as the following townhouses and apartments may be within reach of those who were formerly priced out.
Residential development to deliver four residences between $2.5M to $2.7M each
Located at 56 Kangaloon Road in Bowral, some one and a half hours south west of Sydney’s CBD, a new luxury boutique residential development is taking place.
Four pavilion residences in New South Wales’ Southern Highlands is being designed by Bowral-based Tziallas Architects for the developer, Birdy, with the properties priced from $2.5 million each.
Each home comprises three bedrooms, three bathrooms, and a double garage, with internal living space ranging from 214 square metres to 233 square metres, and land size from 387 square metres to 407 square metres.
The homes, which are currently under construction, are being marketed for sale by Knight Frank agent Nathan Berlyn.
Berlyn said the homes would appeal largely to downsizers looking for freestanding single-level homes, and that the Southern Highlands had seen significant demand during and post Covid from Sydney-based buyers.
“We are still seeing strong demand across multiple projects, with Sydney buyers from affluent areas seeking a weekend retreat or eventual retirement home in Bowral,” he said.
The residences are expected to be completed in the first half of this year.
Currumbin Waters to see 30 new townhouses
In a refreshing break from the countless apartment developments on the Gold Coast – this next development features 30 townhouses.
Stone Real Estate’s Central Park Residences is situated in the Gold Coast suburb of Currumbin Waters, about half an hour south of the Gold Coast, and ten minutes north of the Gold Coast Airport.
The company said Currumbin Waters saw close to an 18% increase in median house price over the last 12 months, with the development great for downsizers and young families.
The developer of the project is ASG Group, who have completed multiple projects across QLD and NSW, recently in Indooroopilly & Greenslopes. The selected builder for this project has won Master Home Builder of the Year among other industry awards.
“The developer is also very mindful of the environment and all townhouses will be fitted and ready for buyers to add their own preferred solar and electric vehicle chargers as well as having energy-efficient, double-glazed windows,” said Stone Real Estate’s, Rebecca Leo.
Canberra apartment hotel to fetch $50M
The Abode Hotel and Apartments Woden has been listed for sale by The Shakespeare Property Group, a boutique property investment fund manager, the property is expected to sell for around $50 million.
CBRE Hotels’ Michael Simpson and Vasso Zographou are managing the sale via an Expressions of Interest campaign closing March 6, 2023.
“With high yearly rental increases and a long-term lease, the hotel provides the incoming purchaser with the certainty of income and rental growth,” Mr Zographou said.
“Opportunities to secure such a centrally located leased asset providing net rental growth is extremely rare in today’s market.”
The property is located 10 kilometres south of the Canberra CBD and 5 kilometres from the Parliamentary precinct, at 10 Bowes Street. It is situated on a 1,516 square metre Crown land-leased site, comprising 151 self-contained apartment style rooms and one two-bedroom apartment, three conference rooms, and a restaurant.
The hotel is leased to Iconic Hotels under its Abode brand.
