on the river
Volume 8 March 2015
When it comes to the Brisbane River, we wrote the book.
River on course for great things For anyone who lives on the Brisbane River, or aspires to, the rewards can be summed up in one word: enrichment. The views the river presents, the ambience it creates, and the leisure opportunities it affords all enrich life. For these reasons, riverfront real estate will always be in demand. The market may ebb and flow with economic cycles, but the upward trend will always stay on course. This is clearly demonstrated in our annual market wrap-up. In this edition, we present an analysis of riverfront real estate market performance for the year just ended. As forecast, strong 2013 gains led to a busy 2014 sales year on the river, with plenty of activity encouraging healthy price rises. Our coverage brings you the highlights, including the landmark sale that has
given Brisbane its own ‘House of Hancock’. For the finer detail, take a look at our tables listing all the 2014 river sales and giving you the numbers important to anyone with an interest or stake in riverfront property. Looking at the broader picture, 2015 kicked off with a State election that turned things upside down in a political sense. We are not too concerned about ramifications for the market. But there are some important development issues to consider. Our river is a defining asset of this city. And, as such, it has incredible potential to enrich everyone’s lives – not just those who live on along her banks, but surrounding communities, all Brisbane residents, and the millions who visit us from around Australia and the world. Currently, three landmark riverfront precincts – in the CBD, beneath the Story Bridge, and adjoining our Cultural Precinct – are earmarked for dramatic
transformation. These proposed developments are of city-changing scale and significance. We review each of them, look at what stage they have reached in the planning process, and consider how a change of State government might affect their progress and quality. These are projects we must get right. And, if we do, river life will be all the better for it. As always we really value your feedback. Please let us know your thoughts on the issues raised in these pages, and suggest topics you would like to see covered in future editions. For more, visit www.dixonfamily.net.au /river-blog, or join us on Facebook (facebook.com/pages/Dixon-FamilyEstate-Agents).
In this edition 628 Coronation Drive, Toowong Qld 4066 PHONE 07 3870 2251 FAX 07 3870 5674 info@dixonfamily.net.au www.dixonfamily.net.au
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Impressive 2014 market performance 2014 riverfront sales table Yeerongpilly green advancing Navigating government change Setting our aim high
The record-setting $14 million ‘House of Hancock’ in Hawthorne.
Impressive 2014 river market performance Promising gains made in our exclusive riverfront real estate market in 2013 have been consolidated by an impressive 2014 performance. Highlights of the year were a surge in both volume and turnover, and the arrival on the Brisbane River of Australia’s richest person. Brisbane recorded 56 residential house or land sales along the river in 2014, representing a total value of almost $147.4 million. The tally included 38 absolute riverfront sales for a total of $121.35 million, and 18 in riverside locations worth $26.04 million (separated from the river by only a reserve or thoroughfare).
Worth noting is, while the number of absolute riverfront sales rose only by a modest 5.5 per cent (from 36 in 2013) the total sales value increased by a hefty 35.5 per cent, from $89.6 million in 2013 to almost $121.4 million last year.
Richest record The big news on the river was of course the arrival of mining magnate Gina Rinehart who, in October, paid a reported Brisbane record price of $14 million for a sprawling Aaron Avenue, Hawthorne holding, plus picked up a $4 million lot next door. The home, across the river from New Farm Park and the Powerhouse, is widely recognised for the ornate wrought iron lacework on its wrap-around verandahs, and two rotunda-like turrets. It boasts some of Brisbane’s best private riparian amenities, including a tennis court,
Riverfront Residential Market Highlights 2014 Total number of sales
56*
Total value of sales
$147.4 million
Highest absolute riverfront house price
$14.0 million
Lowest absolute riverfront house price
$875,000
Average absolute riverfront house price
$3.074 million
* 38 absolute riverfront, 18 riverside
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swimming pool, landscaped grounds and boat moorings. Ms Rinehart, who is investing heavily in Queensland, has since lodged a development application to expand the floor area of the expansive home to around 480sq m, adding further poolside shower and toilet facilities and a three-stop lift from garage to entry and glass-covered verandah.
Average price leap Good news for everyone on the river, is a considerable leap in the average price of an absolute riverfront house. It has risen by 19.6 per cent, from $2.57 million in 2013 to $3.07 million last year. Of course Ms Rinehart’s purchase had some bearing on that, but it was far from the only factor. Our table showing the price brackets in which sales were made shows that fewer properties were priced under $3 million, and there was a strong lift in the number of sales made in the higher price categories. Significantly, 11 sales were recorded in the $3m - $5m bracket (compared with five in 2013), and the number of $5m-plus sales rose from four to six. Along with the record price, there was an $8.25m Fig Tree Pocket transaction and two more in Hawthorne for $6.1m and $7m respectively.
Hawthorne shines
Crystal ball gazing
Hawthorn now owns the title of the Brisbane River’s ‘golden mile’. The Aaron Avenue stretch is the most expensive in Brisbane, and the Hawthorne reach takes the highest average price crown, recording seven sales last year ranging from $3.33m to $14m.
So, where to this year for Brisbane’s river market?
Its premium position owes somewhat to the lavish quality of the homes there, but mostly to its outstanding location and amenity. It combines proximity to the city with close boating access to Moreton Bay, has a host of lifestyle infrastructure, restaurants and cafes nearby, and is handy to elite private schools Churchie and Somerville House. Hawthorne has been the location of Brisbane’s top-priced riverfront house sale for three consecutive years now. In 2014, it was also one of the most active markets, recording seven sales for the period. Other precincts to experience strong sales activity were Chelmer (6), Westlake (7) and, the busiest of all, Fig Tree Pocket (8). Volume of sales has actually risen dramatically in the Brisbane riverside suburbs that were worst hit by floods in 2011 (not that all the houses were necessarily impacted). Fig Tree Pocket and the Centenary suburbs accounted for 19 of last year’s riverfront and riverside sales.
The strong 2014 performance was as we predicted. But I’d have to say the crystal ball is not as clear in 2015 as it was 12 months ago. That said, we do see promise of further growth. National market analysts are still tipping Brisbane will outperform other capital cities this year and for some time, across all residential market segments. Towards the end of 2014, BIS Shrapnel forecast 17 per cent median house price growth for Brisbane over the next three years. Affordability compared to Sydney and Melbourne is one of the factors turning attention to Queensland right now. Whichever price bracket you are in, our real estate looks like an inviting prospect compared to the southern
There are some economic and political factors that temper our bullish outlook, including falling coal prices, uncertainty about the new State government, and leadership instability at the Federal level. But there’s plenty of good news too – falling interest rates, the lower Australian dollar (encouraging expats to return) and the climbing All Ordinaries Index. I’d say the positives come out on top. Notwithstanding property market cycles and the occasional weather event setback, river property is an outstanding investment and lifestyle choice. Limited and diminishing supply of Brisbane River houses and residential blocks, combined with ever-present demand, always makes for long-term upward market pressure. And, let’s face it, there’s no better location in the city for sheer living enjoyment.
Brisbane Absolute Riverfront Sales Record Year
Under $2m
$2-3m
$3-$5m
$5m+
Total
2014
16
5
11
6
38
2013
18
9
5
4
36
2012
9
8
8
4
29
2011
8
7
4
1
20
2010
8
14
9
7
38
2009
10
8
11
5
34
2008
4
17
5
3
29
2007
11
18
13
7
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capitals.
Proximity to the bay for boating is a major value-driver for eastern suburbs.
A fine view of river life.
on the river // 3
Brisbane Riverfront Sales 2014 Suburb Bulimba
Hawthorne
East Brisbane West End Highgate Hill Yeronga
Tennyson Graceville Chelmer
Jindalee Westlake
Riverhills Moggill
Bellbowrie Kenmore Fig Tree Pocket
St Lucia New Farm Teneriffe
Address Quay Street Quay Street Waterline Crescent Leura Terrace Leura Terrace Gordon Street Scott Avenue Virginia Avenue Aaron Avenue Aaron Avenue Laidlaw Parade Ryan Street Glenfield Street Rosecliffe Street Fraser Terrace Brisbane Corso Brisbane Corso Heritage Close King Arthur Terrace King Arthur Terrace Molonga Terrace Molonga Terrace Hargraves Avenue Rosebery Terrace Sutton Street Sutton Street Sutton Street Glencairn Avenue Kooringale Drive Mt Ommaney Drive Carnegie Street Carnegie Street Carnegie Street Westlake Drive Wendouree Crescent La Belle Court (LAND) Balaton Street Daintree Place Priors Pocket Road Landing Place Hawkesbury Road Lather Road Sunset Road (DEV. SITE) Ningana Street Jesmond Road Mandalay Street Botticelli Street Botticelli Street Botticelli Street Kenmore Road Spinkbrae Street Hiron Street (LAND) Maxwell Street Oxlade Drive Macquarie Street Macquarie Street
Area (sq m) 459 762 376 810 405 2,985 812 1,966 1,088 3,457 390 582 450 759 549 916 1,017 1,367 835 1,154 830 840 999 883 483 473 1,411 1,074 1,791 1,898 1,009 904f 1,045 1,627 1,177 1,614 545 704 27,000 10,500 43,200 10,100 10,500 9,991 17,200 1,060 948 1,545 1,685 1,036 515 454 805 405 354 365
TOTAL SALES ABSOLUTE RIVERFRONT TOTAL SALES RIVERSIDE TOTAL RIVER SALES LEGEND:
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Absolute Riverfront
Price $3,500,000 $3,550,000 $2,600,000 $4,000,000 $3,500,000 $6,100,000 $3,330,000 $7,000,000 $4,000,000 $14,000,000 $3,350,000 $2,475,000 $1,700,000 $1,480,000 $1,400,000 $4,380,000 $1,570,000 $3,180,000 $2,100,000 $3,810,000 $1,590,000 $1,200,000 $2,075,000 $2,650,000 $1,442,000 $1,442,000 $1,880,000 $2,948,000 $1,518,000 $1,725,000 $2,300,000 $1,150,000 $1,190,000 $1,600,000 $1,500,000 $608,000 $630,000 $730,000 $1,000,000 $771,000 $1,500,000 $1,000,000 $5,676,500 $8,250,000 $1,120,000 $1,310,000 $1,400,000 $1,200,000 $1,850,000 $1,475,000 $790,000 $1,950,000 $2,100,000 $1,985,000 $5,150,000 $3,785,000 $121,353,500 $26,037,000 $147,390,500
Riverside (separated by only reserve or public thoroughfare)
Yeerongpilly Green advancing Along the Tennyson Reach, the Yeerongpilly Green ‘transit oriented development’ (TOD) is advancing. A decision on the preferred developer of residential, retail and commercial lots in Stage 1 should be known by April. Development of Yeerongpilly Green will unfold over the coming five to 10 years, across three stages. The first, for which three developers have been invited to submit final proposals, includes 263 apartments, a total of nearly 20,000sqm of commercial and office uses, 8,750sqm of retail. The vision is for Brisbane’s new 14ha mixed-use lifestyle precinct to be relaxed and walkable, with integrated parks and open space promoting an outdoor lifestyle and active recreation in a sustainable environment close to frequent and reliable public transport. We imagine a look and feel not unlike the Newstead – Teneriffe area. Neighbours face the prospect of some short-term construction pain, but we hope and expect the gains will be worth it. Concept planning and consultation has been going on since 2010, and some facilities have already been completed. Construction of the South Brisbane Regional Centre (SBRC building for Brisbane City Council) was finished in 2012, and the Montrose Access respite centre was just finished in December last year.
The tallest of the buildings are on the southern side, along the rail line, and the low buildings are close to the park. Areas nearest the Tennyson Reach riverfront apartment buildings, opposite and adjacent to the river, will be parkland. King Arthur Terrace is to be straightened and upgraded, with more traffic lights and public transport access. In all likelihood, this will deter rat-runners, encouraging them to opt for Tennyson Memorial Drive. In the end, the lifestyle infrastructure and amenity planned will have a positive impact on local property values. With this master-planned community nearby, residents will benefit from more shopping, dining, walking, cycling, sports, social and entertainment choices right on our doorstep. It’s said the boutique retail hub, to incorporate one of the existing heritage buildings, will offer “hand-picked niche specialty stores unique to Yeerongpilly Green” making it a destination for shoppers. So it promises to be quite a cosmopolitan urban quarter. And, best of all, river residents can always adjourn to the peace and tranquility of their riverfront homes, thereby enjoying the best of both worlds. For more information, visit these State Government websites: www.yeerongpillygreen.com.au www.dsdip.qld.gov.au/local-areaplanning/yeerongpilly-transit-orienteddevelopment.html
Article by David Sheppard
Yerongpilly Green key spaces The key public realm and open space areas are shown here: 1. feature bioretention garden 2. ‘ The Green’ main activity and gathering park 3. terraced amphitheatre 4. river park 5. p ocket park, including storm water bio basin 6. heritage buildings 7. f orecourt to heritage buildings 8. p edestrian link (outdoor dining and retail zone) 9. arrival plaza 10. landscaped courtyard 11. r etail ‘hub’ major retail precinct 12. c ommercial (office and related) buildings 13. B CC South Brisbane Regional Centre 14. community garden 15. potential future connection/link 16 p otential future QTC expansion Source: Department of State Development, Infrastructure and Planning, Yeerongpilly Transit Oriented Development Detailed Plan of Development, Sept. 2014
Now Economic Development Queensland (EDQ) will oversee development of public infrastructure, including roads, parks and open spaces, and the delivery of other Yeerongpilly Green components by private developers. A vast amount of information, plans, artist perspectives and reports on heritage, traffic and environmental considerations is available online (see links below). Extensive planning seems to have addressed a number of issues of concern to local residents, including acoustics, building location and heights.
on the river // 5
A waterfall bridge is a signature element of the Greenland-Crown Queen’s Wharf concept.
Navigating government change on the river Most of us are contemplating what life may be like under Queensland’s new Labor government. When it comes to Brisbane River issues, we say a change of officers on the bridge shouldn’t mean the course of the ship will alter. Governments come and go every few years. But the property market is not necessarily linked to State political changes. It is an historically cyclical beast, more influenced by global economic fluctuations, interest rates and, to a lesser extent, Federal policy. Anyone who fears Labor’s win in the State election might somehow stall the real estate market should remember that Premiers Beattie and Bligh were in power prior to and during our last two booms in 2003-04 and 2007-08.
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In terms of private residential housing on the river, the State Government has little involvement or impact. At this level, Brisbane City Council, as the planning and administrative authority, has primary control and influence. The same is true for most property developments. Major private projects such as Sunland’s three-tower Grace on Coronation (the ‘champagne flutes’), for example, will proceed through the planning and approvals process regardless of who occupies George Street. The State does come into play in regard to issues such as pontoons and jetties, in that these are defined as ‘tidal work’, which comes under State control. While Council processes applications, proposed work does need consent from State departments such as Marine Safety Qld, Transport and Main Roads, and Environment and Heritage Protection.
We will keep a close eye out for any sign of policy changes in these areas. Rightly or wrongly, there was a perception that the Newman LNP Government may not have been quite as robust as other administrations when it came environmental enforcement. However, looking at the bigger picture, there are three major Brisbane River projects that will rely on State Government backing to advance. And all three have enormous potential to positively impact Brisbane’s ‘River City’ brand and lifestyle appeal if handled well. They are:
- Q ueen’s Wharf Brisbane, integrated resort development,
- t he Howard Smith Wharves hotel and leisure precinct, and
- t he Kurilpa precinct master plan.
Queen’s Wharf Brisbane During its reign, the LNP put in train a process to redevelop State-owned land covering a major section of the city along the north bank, between the river and George Street, stretching from Alice Street to Queen Street. Only one month before losing the election, after a lengthy expressionsof-interest period, it announced the two final proponents – Greenland Group with Crown Resorts, and the Destination Brisbane Consortium (Echo Entertainment Group, Far East Consortium and Chow Tai Fook Enterprises). Both have unveiled ambitious concepts to connect city landmarks, including some of our earliest and most significant heritage buildings, the Botanic Gardens, Queen Street Mall, South Bank and the Cultural Precinct, the Parliamentary Precinct and Brisbane River.
Aerial overview of the Destination Brisbane (Echo) Consortium proposal for Queen’s Wharf.
Greenland/Crown wants to give us nightly 3D light shows, a towering roof garden lookout reminiscent of Singapore’s Marina Bay Sands, and, their pièce de résistance, a new suspension pedestrian bridge with a cascading waterfall to the river beneath.
Greenland’s and Echo’s plans share a lot in common, proposing multiple hotels, open-air plazas and event spaces, world-class restaurants and shops, theatres and functions facilities, cycling and pedestrian links, parks, tourist attractions and, of course, casinos.
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Echo proposes turning the Treasury Building (current casino) into a premium department store, an ‘Undercurrent Village’ of performance spaces, bars and restaurants, a mangrove walk and Indigenous heritage trail. It too wants a new pedestrian bridge link to South Bank. The final preferred developer was to be announced in “early 2015”. We can only assume that timeline might be delayed to some extent while new ministers responsible get their heads around what will be a defining project for the city and the state. Given Labor’s stated focus on job creation, you’d think this would be regarded as an employment powerhouse.
Howard Smith Wharves
An artist impression from the Kurilpa Riverfront Renewal Draft Master Plan.
The $100 million redevelopment of the historic Howard Smith Wharves area beneath the Story Bridge has already had an on-again, off-again history. Plans initially championed by then Lord Mayor Campbell Newman were scrapped by the Bligh government in 2011.
When Mayor Newman became Premier Newman, his LNP backed the proposal, and plans for the redevelopment were swiftly reinstated and progressed by the Brisbane City Council and current Lord Mayor Graham Quirk. In October, Cr Quirk announced HSW Consortium, led by local business identities Adam Flaskas and Elisha Bickle, had won a hotly contested tender process (300+ groups from Australia and overseas had expressed interest) to take the prize of a 99-year lease on the Howard Smith Wharves site. They have promised an “iconic riverfront precinct that brings life and transforms one of Brisbane’s last working wharf precincts.” It is likely to include a 150room luxury hotel, for which Art Series Hotels has been singled out, high end restaurants, and event spaces. HSW is now in the process of preparing its development application, and a decision on the DA is not expected until the second half of this year. Given the political tug-of-war that stalled the project last time, you’d have to wonder if it could be scuttled again.
Kurilpa Master Plan In August 2014, Lord Mayor Graham Quirk and former Deputy Premier and State Development Minister Jeff Seeney’s revealed plans for a billion dollar revamp of South Brisbane’s Kurilpa Point.
…continued next page
on the river // 7
Aim high on these defining projects …from previous page They released a master plan for more than 25 hectares of industrial and public land stretching for one kilometre along the river, from GOMA to riverside Mollison Street. It would be the largest urban regeneration in Brisbane for decades, incorporating residential, business and leisure opportunities. The trouble is, they seemed to have come up that quite detailed master plan over seven months without asking for any community input. So when they released it and allowed just six weeks for public feedback, they met quite an outcry.
World-class opportunity There were reports that the local councillor, local MP and president of the district’s community group were locked out of the Executive Building when they tried to lodge a petition calling for greater public say and a longer submissions period. The Australian Institute of Architects (AIA) described the master plan as a “fluffy cartoon”. AIA Queensland president Richard Kirk was quoted in
the press saying “the Kurilpa Master Plan is a world-class opportunity for Brisbane and deserves a world-class process. And we have not seen that world-class process.”
Competition call There are concerns about density and the rushed roll-out. Variously, the plan has been criticised as “lacking imagination” and being “short-sighted”. There have also been calls for an international design competition, as was the case for South Bank in the 1990s. According to Council’s website, we are currently in the “evolving the master plan” phase, while they review more than 100 submissions and the petition, with the final master plan due for release in mid-2015.
Milk factories and concrete plants really shouldn’t still be lining our river smack bang in the middle of Brisbane. The Parmalat property (2.5ha) and Hanson Concrete site (1.3ha) are now on the market. The change of government gives us a chance to take a deep breath and think what could be achieved along this prominent central river reach. We would urge both BCC and the new State government to take the time to make the most of this opportunity. We simply must do better than produce a whole lot of apartment blocks and parks.
Be brave
But, given Mr Seeney’s high profile role in all of this, we wonder if that will be stalled by the change of government.
Give us brave, exciting, creative architecture and facilities that will enrich Brisbane and its inner city communities. Do something that furthers our growing tourism reputation as a modern, laid-back and happening destination for leisure, food, music, culture and entertainment.
We agree this is a ‘world-class opportunity’. Brisbane City Council has estimated income from jobs and investment could “double Brisbane’s GDP in 20 years” to $270 billion.
What was it Michelangelo said? “The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.”
Concept drawings show the potential future promised by the Howard Smith Wharves revitalisation project.
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