Melbourne-based property developer Kokoda Property has won approval to build a $120 million high rise residential building in Brisbane’s inner suburb of Milton as confidence grows in the capital city’s market upswing.
The luxury development, located at 19 McDougall Street, will consist of 181 apartments selling from $400,000 for one-bedders and up to $2 million for three-bedroom apartments, set to be released later this year.
Named ‘The Ambrose’, Kokoda purchased the 2000 square metre site for $12 million in December 2017.
The green light is a sign that demand is finally returning to the Brisbane housing market according to Mark Stevens, founder and managing director of Kokoda Property.
“Following the election, we’ve seen a significant upswing in the Brisbane market and have had enormous interest in our projects,” Mr Stevens said.
Kokoda is counting on the city’s strong population growth to fuel housing demand.
“Brisbane has remained on track to become home to more than 386,000 new residents in the city by 2041,” Mr Stevens said.
Kokoda isn’t alone in predicting a rosy future for Brisbane. BIS Oxford Economics has recently issued an upbeat forecast for Brisbane, predicting a 20 per cent rise in median house prices over the next three years on the back of a stronger economy and affordable housing offering.
The report also points to a 14 per cent upside to Brisbane’s median unit price over the same period.
However, Brisbane’s housing market has long been anticipated to grow strongly but so far prices haven’t taken off, dragged down by the weakness in the unit market.
The Corelogic Home Value Index in July showed Brisbane’s median unit price fell by 2.8 per cent annually and lost 2.6 per cent since the start of the year. The lower unit price has resulted in higher rental yield, which currently sits at 5.5 per cent.
This article originally appeared in the Australian Financial Review July 18 2019 – www.afr.com/real-estate/residential/kokoda-property-gets-permit-to-build-120-million-brisbane-development-20190717-p5283z