A Melbourne-based developer has reaffirmed its commitment to Brisbane with the purchase of a third site in leafy St Lucia.
Kokoda Property plans to deliver 60 high-end apartments to the prestigious suburb.
The site was bought with an existing DA that will enable its swift entry to the market. The developer aims to cater to the suburb’s strong owner-occupier demographic through premium finishes and a substantial number of penthouses.
A recent report by property research firm Place Advisory, Brisbane’s Future Apartment Pipeline, predicted a trend for larger apartments in the next three years. The report estimated 11 per cent of new apartments in Brisbane will be three bedroom units by 2019, compared with only 5 per cent this year.
Kokoda sales and marketing director Sam Tucker says Brisbane is moving away from investor-driven projects to a smaller owner-occupier market.
“The Brisbane market has transformed and offers exceptional opportunity for developers looking to offer premium product as higher-end purchasers are now driving the demand,” Mr Tucker said.
“Previously, the high volume of apartments being pushed through the pipeline were small apartments designed purely as investment stock. We’re now seeing a real change in the Brisbane environment as the stronger owner-occupier market emerges. These buyers have refined tastes and are seeking a higher level of design and finish as a result.
“There are [fewer] projects going to market, but the ones that are moving forward are of exceptional quality and designed to appeal to this new cohort of buyers.”
Kokoda’s first foray into Brisbane with Chester & Ella in Newstead generated $95 million in sales in the first four weeks of stage one. This sales momentum continued into the second stage. Chester & Ella achieved $22 million in sales at its opening weekend in November last year. The project has sold more than 280 apartments to date, with a limited last release to be available soon.