Smaller dwellings come onto market amid downswing, answering increased demand

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  • An apartment hotel in Canberra expects to raise $50 million.
  • Four townhouses are being developed in regional NSW, each expected to exceed $2.5 million.
  • The Gold Coast will also see more townhouses coming onto the market.

After development slowly resumed in 2022, more smaller properties will come onto the market again. More than $50 million in East Coast townhouse developments have been announced, and a $50 million apartment hotel is on the market, after a shaky start in 2023.

The sales come at a time when the real estate market in Australia has had a difficult start. This month, the Australian Bureau of Statistics (ABS) released its latest figures (November reference period) for housing approvals, with homes approved up more than 13 percent year-on-year and the total number of housing units approved up more than 15 percent. Monthly changes were down 2.5 percent and 9 percent, respectively.

ABS data released this month for construction activity (reference period September 2022) showed that the total number of home starts fell 5.2 percent to 45,489 homes, with new homes rising at 4.9 percent. However, the value of construction works increased by 1.5 percent to $ 30.6 billion.

House price fall revives buyers

January also kicked off with the news that Australian house prices saw their biggest drop in value ever, according to CoreLogic.

The CoreLogic Daily Home Value Index (HVI) registered a decline of -8.40% as of January 7 of this year. This follows the peak on May 7, 2022.

This breaks the record of -8.38%, which took place between October 2017 and June 2019.

While that downturn lasted 20 months, this price drop happened in less than nine months.

CoreLogic economist Kaytlin Ezzy says, “The downturn has led buyers previously priced out of some markets to potentially begin to see opportunities, particularly in cities that have recorded larger downturns, such as Sydney, Melbourne, Brisbane, Hobart and Canberra. However, it is likely that many of the benefits of declining values ​​have been negated, with rising interest rates driving up maintenance buffers and mortgage repayments.”

In particular, smaller properties, such as the following townhouses and apartments, may be within reach of those that were previously too expensive.

Residential development to deliver four homes between $2.5 million and $2.7 million each

Located at 56 Kangaloon Road in Bowral, about an hour and a half southwest of Sydney’s CBD, a new luxury boutique project is taking place.

Four pavilion homes in the southern highlands of New South Wales are being designed by Bowral-based Tziallas Architects for the developer, Birdy, priced at $2.5 million each.

Each house consists of three bedrooms, three bathrooms and a double garage, with internal living space ranging from 214 square meters to 233 square meters, and an area ranging from 387 square meters to 407 square meters.

The homes, currently under construction, are listed for sale by Knight Frank agent Nathan Berlyn.

Berlyn said the homes would particularly appeal to those looking for detached single-storey homes, and that the Southern Highlands had seen significant demand from Sydney-based buyers during and after Covid.

“We continue to see strong demand across multiple projects, with Sydney buyers from affluent areas looking for a weekend retreat or ultimately a retirement home in Bowral,” he said.

The homes are expected to be delivered in the first half of this year.

Currumbin Waters to see 30 new townhouses

In a refreshing break from the myriad of apartment developments on the Gold Coast, this next development features 30 townhouses.

Stone Real Estate’s Central Park Residences is located in Currumbin Waters, a Gold Coast suburb, about half an hour south of the Gold Coast and ten minutes north of Gold Coast Airport.

The company said Currumbin Waters has seen a nearly 18% rise in median home prices over the past 12 months, with great development for downsizers and young families.

The developer of the project is ASG Group, who have completed multiple projects in QLD and NSW, most recently in Indooroopilly & Greenslopes. The builder selected for this project has won the title of Master Home Builder of the Year, among others.

“The developer is also very conscious of the environment and all townhouses will be equipped and ready for buyers to add their own favorite solar and electric car chargers, as well as energy-efficient double-glazed windows,” said Stone Real’s Rebecca. Estate. Lion.

Canberra apartment hotel raises $50 million

The Abode Hotel and Apartments Woden has been put up for sale by The Shakespeare Property Group, a boutique property investment fund manager. The property is expected to sell for approximately $50 million.

Michael Simpson and Vasso Zographou of CBRE Hotels are managing the sale through an Expressions of Interest campaign closing March 6, 2023.

“With high annual rent increases and a long-term lease, the hotel offers the incoming buyer the security of income and rental growth,” said Mr. Zographou.

“Opportunities to secure such a centrally located rental property that generates net rental growth are extremely rare in today’s market.”

The property is located 10 kilometers south of the Canberra CBD and 5 kilometers from the Parliamentary District, at 10 Bowes Street. It is located on a 1,516-square-foot Crown leased property consisting of 151 self-contained apartment-style rooms and a two-bedroom apartment, three meeting rooms and a restaurant.

The hotel is leased to Iconic Hotels under the brand name Abode.

residence hotel and apartments woden canberra act for sale
The Abode Hotel and Apartments in Canberra’s Woden is expected to raise $50 million. Image: Delivered.
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