Indooroopilly’s slow but steady climb back up to real estate market strength continues. While some price brackets have shown good activity, others still lag. Now that most of the economic shackles have been loosened, it’s time for action.

In our last report (August 2013) we foreshadowed that a post-Federal election confidence surge combined with historically low interest rates would kick start a strong market revival.

That certainly did come to pass in some markets. Sydney and Melbourne have been flying, so much so that commentators in those cities are already talking about overheated conditions and unsustainable price rises.

Yet here in Brisbane, the upturn is only just beginning. Of course property market watchers will tell you that Brisbane always lags behind the southern states. And that is certainly true. But you are probably wondering why we are taking so much longer this time to catch the rising tide.

What we tend to overlook are the momentous events that beset Queensland in recent times. A few short years ago, we were hit with what would come to be known as the ‘summer of disasters’ – the 2010-11 season of prolonged heavy rain, tragic flooding and Category 5 Cyclone Yasi.

Three quarters of the state was disaster-declared. These nightmares have not been without economic consequences. What took days to destroy would take years to rebuild. Billions of dollars in

repair costs, not to mention the huge hits to production, meant the Queensland economy has had to drag a huge fiscal anchor for the past four years.

Funds from both the public and private sectors, which would otherwise have been circulated through spending or directed to job-creating initiatives, have been diverted to repair and replace what were previously perfectly good homes, businesses and infrastructure.

At a local level, people and businesses forced to spend tens, even hundreds of thousands of dollars on repair bills have not been out there spending, dining in restaurants, taking holidays, buying cars, renovating or buying real estate … all the things needed to keep our economy buoyant.

628 Coronation Drive, Toowong Qld 4066 PHONE 07 3870 2251 FAX 07 3870 5674 info@dixonfamily.net.au www.dixonfamily.net.au

SEPTEMBER 2014

Shackles loosened on promising market

In this edition

Golden Triangle Report

1 SHACKLES LOOSENED ON PROMISING MARKET

3 CSIRO SITE TRANSFORMATION UNDERWAY

4 NEW 6TH PROMISES SAFER DRIVE

5 OFFICE EXODUS: CANARY IN THE COAL MINE FOR EXECUTIVE RENTALS

6 QUEENSLAND HOUSE OF THE YEAR 2000

Continued on page 2...

Little wonder we have lagged our interstate cousins in the real estate recovery stakes. But the good news is that the shackles are finally coming off.

The Newman government has actually done a much better job of fixing our

state economy than they’ve done at selling their success message. And the Federal Government hasn’t done any better at promoting its budget initiatives. The truth is, though, our economy is starting to gain momentum and key industries are turning around.

We know, for flood survivors, the pain continues long after all the media coverage fades. We salute you for knuckling down and getting on with the job, repairing your homes and businesses and climbing back to profitability.

Now, as the residual impact of the ‘summer of disasters’ eases, the new lean, mean Queensland economy is well and truly back in business. And our property market should follow suit.

As we noted earlier, there have been some very positive signs, with gains in both turnover and prices. But, to date, the activity has been largely limited to the sub-$1 million price categories.

What we are looking for now is heightened interest above the $1 million mark. Buoyant spring and summer selling seasons across the entire market are needed to consolidate the early market gains.

A strong finish to 2014 will confirm Brisbane’s return to real estate market strength.

CSIRO site transformation underwayRedevelopment of the former CSIRO site on Meiers Road is now well underway. While the proposed new residential precinct did meet with considerable local resistance, the final master plan delivers some positive outcomes for the area.

After a lengthy period of community opposition and engagement, site owner Shayher Developments was granted ‘Preliminary Approval for a Material Change of Use’ by Brisbane City Council in November 2012.

This gave them the green light to redevelop the former CSIRO research facility land, subdividing it into 10 lots that will accommodate a number of uses including detached houses, townhouses and apartments.

At the time, public pressure had resulted in changes to their original proposal, including a reduction in building heights and cutting the maximum number of dwellings to 233. Strict conditions have also been applied in regard to traffic, trees, river views, land uses, site servicing, and stormwater.

According to BCC’s ‘approval package’, building heights will range from two storeys (lots 1 and 3) to five storeys (lot 4). The project can include one ground floor shop or restaurant, with a maximum gross floor area of 250smq, a real estate sales office and display home.

The Indooroopilly community will now be watching closely to ensure those conditions are followed, given the Preliminary Approval means subsequent development applications for individual building components will be code assessable, avoiding the public notification requirements normally expected for multi-unit projects.

That said, to their credit, Shayher has delivered on its promise to include significant green features and retain many significant trees. We did note, detailed vegetation management requirements are in place, and one of the BCC conditions required a “fauna spotter” was present on site during all clearing operations.

According to planners, Urbis, the master plan delivers “a green, well-linked, sensitively-designed outcome that reflects the uniqueness of the site whilst offering housing choice within the established area of Long Pocket.” But then they would say that, wouldn’t they?

Under the approved landscape master plan, almost 50 per cent of the site will be public open space. The existing rainforest is being retained and will be showcased via a boardwalk / track planned to meander through the forest, highlighting tree species. The walk is expected to have a viewing platform over the creek that runs through the centre of the rainforest.

Street trees and planting along Meiers Road, Shayher promises, will create a green boundary, minimising the visual impact of proposed buildings, while the Brisbane River boundary will include an esplanade road and a path with future connections to UQ. Parklands are intended to include a dog off-leash area and public BBQ facilities.

This is a long-term, staged development, which will take quite a few years (depending on market conditions) to transform the prime riverside site. A new future for the pocket was inevitable after the CSIRO ceased using the facility and moved to the new Ecosciences Precinct at Dutton Park.

There is no doubt it will change the character of Long Pocket to some extent, and cannot help but have an impact on local roads and traffic. But, now that it is a ‘done deal’, it is hoped the positives – regeneration and maintenance of the rainforest and greenspace, plus new riverside walkways and access – will be assets we can be proud of.

Development background

Records show Shayher Developments, an Australia-based Taiwan-backed company, bought the 7.2 hectare former

CSIRO site in Meiers Road for $25.3 million in September 2010.

The somewhat media-shy company is a subsidiary of Pau Jar Group, a Taiwanese conglomerate founded in 1989, specialising in residential development and active throughout Taiwan as well as in Malaysia, Australia, China and Vietnam.

According to reports in the Taipei Times, Pau Jar tops Taiwan’s residential development sector, having recorded the highest housing construction volume there for several consecutive years. Their new construction projects across Taiwan are reported worth $US 3.3 billion.

In Brisbane, in addition to the Indooroopilly project, Shayher Group has also bought the $63 million former Supreme and District Courts site in George Street, and is developing several buildings in the Northshore Hamilton urban renewal precinct.

The George Street development will be a new $500 million city landmark featuring three ultra-modern glass towers, including residential apartments soaring to 82 storeys, an office tower, and a 5-star hotel rising above retail and conference facilities.

Our Indooroopilly site seems to have received top billing when it comes to Shayher’s activities in Australia. Their projects are being built by the Australian construction company they have established … aptly named Forest Meiers Constructions!

Shackles loosened on promising market

2 // Golden Triangle Report Golden Triangle Report // 3

Continued...

Address Bed*Bath*Car Sale Price Sale Date Land Area Site Value

Glencairn Ave 5*3*2 $3,050,000 1/09/2014 1,823 $2,600,000

Glencairn Ave 4*3*2 $2,948,500 4/04/2014 1,074 $1,900,000

Hunter St 6*3*4 $2,250,000 19/04/2014 1,214 $1,000,000

Charlane Ave 4*3*2 $2,100,000 17/04/2014 1,442 $1,050,000

Neulans Rd 5*3*2 $1,700,000 25/04/2014 810 $1,000,000

Harts Rd 4*3*2 $1,568,000 11/01/2014 1,255 $1,100,000

Graham St 4*2*2 $1,550,000 11/05/2014 531 $690,000

Indooroopilly Rd 4*3*2 $1,400,000 6/02/2014 454 $620,000

Volga Cres 4*2*2 $1,382,000 30/03/2014 916 $900,000

Neulans Road 4*2*2 $1,352,500 25/08/2014 645 $830,000

Meiers Rd 4*2*2 $1,350,000 18/05/2014 1,065 $940,000

Dennis St 5*3*2 $1,260,000 17/02/2014 458 $570,000

Nindethana St 5*3*2 $1,100,000 15/01/2014 645 $630,000

Dennis St 4*2*2 $910,000 17/04/2014 885 $830,000

Garema St 3*2*1 $830,000 21/02/2014 713 $670,000

Burns St 4*2*1 $885,000 18/06/2014 330 $420,000

Iona Tce - $670,000 7/03/2014 607 $530,000

McCaul St 3*1*1 $779,000 23/08/2014 600 $680,000

McCaul St 5*3*2 $850,000 20/05/2014 482 $415,000

Swann Rd 4*2*2 $955,000 20/02/2014 723 $690,000

Victoria St 4*3*1 $901,000 9/05/2014 810 $750,000

McCaul St 3*1*1 $779,000 20/08/2014 600 $680,000

Average

SALE PRICE $1.310M

Average Days

ON MARKET 71

Number of houses currently

LISTED OVER $1M 14

298

LOT 4

LOT 991

LOT 5

11

12

13

14

15

16

17

18

19

20

21

22 23

24

25

Emt A

Emt B

LOT 992

PROPOSEDAPPROVED

PROPOSEDAPPROVED

PROPOSEDAPPROVED

PROPOSEDAPPROVED

(i) This plan was prepared for the purpose and exclusive use of Shayher Developments Pty Ltd to accompany an application toBRISBANE CITY COUNCIL for approval to reconfigure the landdescribed in this plan and is not to be used for any other purpose or byany other person or corporation.LandPartners Limited accepts no responsibility for any loss or damagesuffered howeverso arising to any person or corporation who may useor rely on this plan in contravention of the terms of this clause orclauses (ii),(iii) or (iv) hereof.

(ii) The contours shown in this plan are suitable only for the purposes ofthis application. No reliance should be placed upon such contours forany other purpose other than the purpose of this application forreconfiguration.

(iii) The dimensions, areas, number of lots, size and location ofimprovements & flood information (if shown) are approximate only andmay vary.

(iv) This plan may not be copied unless these notes are included.

BR005968.000-006

SHAYHER DEVELOPMENTSPTY LTD

PROPOSED RECONFIGURATIONOF APPROVED PROPOSED LOTS 1,2 & 3 WITHIN LOTS 349 ON SL4730,

331 ON SL3662 & 378 ON SL6514

NOTE:SURROUNDING INFORMATION IS DCDB.

INUNDATION LINE DERIVED FROM FIELD SURVEY DURING JANUARY 2011 FLOOD EVENT.

CONTOUR INFORMATION DERIVED FROM FIELD SURVEY BY LANDPARTNERS JANUARY 2011.

LOCATION OF BUILDINGS, DAMS, WATERWAYS AND DRAINAGE LINES DERIVED FROM FIELD SURVEY.

PROPOSED EASEMENTS, RETAINING WALL LOCATIONS, & CAR PARKING PROVIDED BY OTHERS.

BRISBANE CITY COUNCIL

A

PROPOSED RESIDENTIAL LOTS

LEGEND

SITE BOUNDARY

STAGE BOUNDARY

EXISTING BUILDING(To be removed)

DRAINAGE LINE

EXISTING DAM

LINE OF INUNDATION(Surveyed by LPL Jan 2011 )

EXISTING EASEMENT

PROPOSED (TYPE) EASEMENT

EXISTING CAR PARKING

PROPOSED NOMINALCAR PARKING

PROPOSED RETAINING WALLAPPROX. ( - m) HIGH

PROPOSED STORM WATERDETENTION AREA

LAND DEDICATED FORCOMMUNITY PURPOSES

PATH

N/AN/A

N/AN/A

N/AN/A

Brisbane Office13 Railway TerraceMilton QLD 4064PO Box 3916South Brisbane BC QLD 4101

t (07) 3842 1000f (07) 3842 1001e info@landpartners.com.auw www.landpartners.com.au ISO 9001:2008

FS 535063

STAGE No. OF RES GROSS No. LOTS WIDTH HA TOTAL ABOVE LINE OF INUNDATION AREA

15 - - 0.898ha 0.898ha 0.898ha

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/AN/A

N/A

SCALE 1:750 (A3)

10 0 20 40

LENGTH OF ROAD AREA OF BALANCE LOTS

PROPOSED "EMT A" IN LOT 24 AND"EMT B" IN LOT 25 ARE TO PROVIDERECIPROCAL ACCESS RIGHTS TOTHOSE LOTS

Received

BCC DA8/4/2013

THIS APPROVAL SHOULD NOT BE TAKEN TO CONSTITUTE PERMISSION TO ENTER

NEIGHBOURING PROPERTIES TO CONSTRUCT ANY BUILT TO BOUNDARY WALLS OR FENCES. PERMISSION MUST

BE OBTAINED FROM RELEVANT PROPERTY OWNERS.

3m x 3m Cornertruncation required ataccess easement

AMENDED IN RED

06/11/2013

PLANS AND DOCUMENTS referred to in the

DEVELOPMENT PERMIT

Dated:………………………………..07/11/2013

Character home in Neulans Road

Approved residential lots

4 // Golden Triangle Report Golden Triangle Report // 5

New 6th promises safer drive Extensive earthworks underway on the 6th hole of Indooroopilly Golf Club’s West Course would seem to confirm earlier plans for a land sale have been shelved once and for all.

With its fairway running along Harts Road, Hole 6 had been causing concern. Though providing a unique sporting challenge for golfers, the layout meant passing cars were at risk from stray balls hit with less than pinpoint accuracy.

The club had hoped to negotiate with Brisbane City Council to swap part of its land, not in use, for some council land, and then sell the resulting parcel to a developer. This would have allowed them to relocate Hole 6 and provided additional funds for other club needs.

Reports at the time suggested the sale of the land, which had the potential to yield 12 to 15 residential lots, could raise more than $5 million.

But the club was unable to gain enough member support for the move. At an extraordinary general meeting in

February this year, they didn’t secure the 75 per cent majority members’ support required under its constitution.

So, they were left with Hole 6 still needing attention. It has now been redesigned to reduce the risk of stray balls hitting passers-by on Harts Road, and redevelopment works are underway.

Indooroopilly Golf Club which was established in 1926 and now known as the St Lucia Golf Links has been a prominent local feature. In 1964 the Brisbane City Council developed the Long Pocket Golf Course on the riverside sweep with the clubhouse on the highest point of Meiers Road. In the 80s the Indooroopilly Golf Club negotiated a land swap with the Council and over the next two decades developed the 36 holes that are present today.

The original 18 holes became known as the ‘Old’ course, and the second 18 was called the ‘New’. But, after a redesign of the Old course in 1985 by Ross Watson, the Old course adopted the title ‘West’ course, and the second 18 holes became the East course.

The club presents 36 holes of golf, which are split into four colour-coded nines – Gold, Red, Blue and Green – allowing six 18-hole combinations. Each set of nine holes starts and finishes by the clubhouse.

In the mind-2000s, Watson was brought in again to oversee major changes to the West as part of a masterplan for the whole complex. According to Golf Australia, which this year ranked the West course No.93 on its Top-100 list, “the redevelopment gave rise to some of Indooroopilly’s most memorable and challenging holes.”

Course reviewer, Brendan James, described the quartet of holes starting at the West’s Red Nine short par-4 6th as “the most interesting sequence of holes at Indooroopilly.

So, while local residents and users of Harts Road can now enjoy a safer drive along this important local thoroughfare, Indooroopilly golfers won’t want to see their ‘drive’ compromised.

Members can only hope the reconfigured Red 6 hole will be just as “memorable and challenging” as its predecessor.

Office exodus: canary in the coal mine for executive rentalsIf you own a quality residential rental property or two in our sought-after suburbs, you might not be too concerned to hear Brisbane’s commercial office market is struggling.

Why should you care if some city office towers are emptying out? After all, the commercial and residential property markets are worlds apart, right? Well, not really.

Executive leasing down as office vacancies climb

Even though your interests lie in the residential sector, you’d do well to keep a keen eye on what’s happening in the CBD. With Brisbane’s office vacancy rate at an all time high, and yet to peak, a reassessment of residential holdings could be very timely.

The executive leasing market very often mirrors the city commercial office market. Both micro markets are driven by the same engine, namely expanding corporate activity. The current rise in empty offices owes primarily to downsizing in the two largest industry sectors housed in our CBD – public administration and mining-related businesses.

The resource sector development boom over recent years saw Brisbane city offices fill with mining executives, planners, engineers, project managers,

geologists and all manner of senior personnel from interstate and overseas. They all needed somewhere to live, so executive rental rates rose sharply due to high demand.

This gave top end home owners an alternative to selling their home in a flat market. They could choose executive leasing, where a healthy rental income and record low interest rates provided a better alternative to ‘meeting the market’.

But now, the development phase of the mining cycle has wound back, and the engineers, project managers and consultants are leaving town. This has caused a significant slump in the CBD office market. And the outlook isn’t getting any better with when the Property Council of Australia (PCA) releases its Mid Year Office Market Report next week.

Earlier this year, the PCA declared the CBD office vacancy rate had spiked to 14.2 per cent, its highest on record. Then this month, as we enter fiscal 2015, we read the rate has ballooned to 16.5 per cent, with analysts expecting it to climb to 18 per cent by the end of the year.

Such is the situation that A-grade office landlords are offering incentives of 25 to 35 per cent. For B-grade space, the incentives can be as high as 40 per cent, according to a recent report by Savills. That means office rentals have effectively come down by 15 to 20 per cent.

Top end residential property landlords will also have to adjust to a new paradigm. With the departure of so many senior personnel, demand for executive rentals has fallen sharply.

With lower demand comes lower rental rates. In this new reality, executive home rents have come down by as much as 15 to 20 per cent already, mirroring the poor office market performance.

There is a bright side, though, for high end home owners. Sydney’s residential real estate market has been flying for quite some time, and Brisbane, which always follows suit, is starting to hit its straps.

Reports from many market commentators agree the steady lift in prices and sales volumes will gain momentum. We’ve already seen some healthy one off prestige sales, and the market fundamentals look strong for some time to come.

Business confidence too is returning after the dud job the government did at selling its Federal Budget. (Maybe they need a few good salesmen in Canberra!) And Queensland has already done the hard yards in terms of trimming the public sector and encouraging infrastructure spending.

The rising prestige real estate market means anyone holding excess property can now opt to sell. In turn, this will moderate executive rental supply at a time of weaker demand.

Members can only hope the reconfigured Red 6 hole will be just as “memorable and challenging” as its predecessor.

Award-Winning Architecture 93 McCaul Street, Indooroopilly

As the recipient of the Robin Dods Queensland Home of the Year 2000, this distinctive example of stunning architecture pushes all boundaries with the unique build a triumph of design and liveability.

Every facet of the home has been thoughtfully conceived, with the construct a considered combination of natural materials, an open floor plan and a strong interaction with the immediate environment.

The main living area is a perfect example of this design aesthetic, combining multiple panels of glass with timber floors and a vaulted plywood ceiling that incorporates a run of linear skylights complete with bespoke, retractable light diffusers.

With bookshelves, bench seating, the nearby kitchen and a deck all fully integrated into the design, the space is at once intriguing, inviting and so conducive to a lifestyle at one with its surrounds.

FOR SALE $1,385,000

A self-contained studio brings endless versatility to this property, with the one bedroom escape mirroring the same architectural style as the main house and offering the perfect solution for extended family, teenagers or working from home.

Thefactor

Jack Dixon // 0408 756 694 // jack@dixonfamily.net.au