In a rare property play that reflects the growth of Southeast Queensland’s residential market, Cru Collective has sold a development site at an astonishing 500 per cent uplift in 12 months.
Cru Collective sold the 2,093 sqm site at 26 Mawarra Street, Palm Beach this year for $15 million to a Sydney developer after purchasing it for $3.3 million in late 2020. Cru sold the site with approval for a nine-storey mixed-use development attached.
Property and valuation specialist group, Herron Todd White Director Luke Nichols said the sale was an extremely rare outcome that bodes well for the developer and residential market in Southeast Queensland.
“In my career I’ve only seen a couple of sales that have ever come even close to this outcome that Cru Collective has experienced – it’s almost unheard of,” Mr Nichols said.
“However, it is becoming increasingly common in recent times for Sydney and Victorian developers to aggressively target the Southeast Queensland market, more often than not outbidding local developers for site opportunities.
“We are in the midst of a once in a generation boom property cycle and our desirable lifestyle attributes haven’t changed and these factors have become even more paramount in this unique market.
“In the changed pandemic influenced environment of 2020/2021, buyers are clearly prioritising lifestyle, and despite the firming in our market, we still have comparably affordable properties here in Southeast Queensland when compared with Sydney and Melbourne.”
According to the Queensland Government’s Shaping SEQ report, Southeast Queensland is expected to be home to nearly two million additional people by 2041, requiring approximately 800,000 new dwellings to accommodate the growth.
According to Core Logic, Queensland also recorded Australia’s highest net interstate migration figure in the year to March 2021, with interstate migration increasing 28.2% over the year.
Cru Managing Director Chris Bolger said the sale was a strategic move for the company, and supported by successful project sales this year, allows for new opportunities in 2022.
“There is huge demand for unique sites with approvals in place, and this site drew an overwhelming amount of interest from astute developers keen to tap into the southern Gold Coast market,” Mr Bolger said.
“The sale puts us in great stead for another big year ahead, as we gear up for further acquisitions and developments.
“It’s been a great year for us, both with the quick sell-out of our luxury Palm Beach development, SIARN and the successful launch of and demand for SUR in Kirra Beach.
“Both developments have seen unprecedented demand from Sydney and Melbourne buyers looking to get a foot into the lifestyle offering the southern Gold Coast boasts, and interstate developers are following suit.
The Mawarra Street site was negotiated by GV Property Group Director Antonio Mercuri to Abadeen Group, who also originally acquired the site on behalf of Cru Collective in 2020.
“The experience and local knowledge of Cru Collective allowed them to secure a great outcome in the development approval, which put Abadeen Group in a great position to hit the ground running once they’d secured the site,” Mr Mercuri said.
“Abadeen Group was one of about 12 bona fide developers, both local and interstate, keen to purchase the site. Southern developers want to be in this market taking advantage of the opportunity, no matter the cost.
“Demand for apartments is stronger than I have ever seen, and buyers recognise Palm Beach as one of the most popular resident areas on the Gold Coast.
Herron Todd White’s Mr Nichols said whilst he expects to see a stabilisation of the Southeast Queensland residential market over the next 1-2 years, there are many favourable factors at play which should underpin our economy and property market over the next 5-10 years.
“After a very strong 2021, we will more than likely see the Southeast Queensland market catch its breath during 2022, as the inevitable increases in interest rates and in certain property segments, increased supply, sees demand moderate to a degree” he said.
“However, this would be a welcome outcome, as a period of market stabilisation is needed to mitigate the risk of a price correction.
“Hopefully, such a stabilisation will then lead into the next upswing in our market which will very likely see the significant return of international migrants and increased investor activity, and at some point, also the ramp up ahead of the major infrastructure investment required for the 2032 Olympics.”
26 Mawarra Street is a unique site which has north facing and uninterrupted views across Palm Beach and is close to the ocean and the popular Tallebudgera Creek.
