How on the ground insights helped create 33 Manning in Brisbane's Milton
National developer Goldfields' first foray into the Brisbane apartment market was no snap decision.
It's taken the prominent diversified developer years to put the plans together, seeking local market insights from the Colliers QLD team on the correct product mix for current market conditions.
Colliers International Australia’s Andrew Scriven, who will be heading the sales team for 33 Manning in Milton, believes the landscape has shifted significantly in residential real estate in the last two to three years.
Scriven says developers now needed to be “smarter and more considered, not only when finding opportunities but in seeing them through”.
“COVID brought with it changes that we didn’t expect but also provided opportunities we didn’t see, initially in the house and land space but subsequently in the apartment space as people chose to change the way they live,” he says.
“This could be changing states or downsizing from a larger house. This has created opportunities for developers and one of those has been tapping into previously undersupplied markets.”
As part of the consulting team behind 33 Manning, Scriven points to a combination of data insights and deep geographical and sector expertise being more valuable than ever before.
In-depth data analysis formed a critical part of the development of the new 18-storey, 131-apartment building. The insights gained helped inform the location, design and offering of the residential tower.
“Population growth is a key indicator for changing consumer behaviour and it’s hard to ignore the opportunities offered by the explosive population growth in South-East Queensland and Brisbane over the past two years," Scriven says.
"Net interstate migration exceeded 30,000 people in 2021 and population growth in Queensland was recorded at 1.6% 1 ”.
Considered alongside the lack of available of stock within the western suburbs of Brisbane, Goldfields, development partner Icon, and Colliers saw an opportunity for maximising the post-COVID market.
Scriven believes few have fully understood the potential value of the western suburbs of Brisbane.
“The western suburbs have been undersupplied for some time, and local migration is still increasing at a faster rate than the supply of new homes on this side of the city,” he says.
“We identified that buyers want to live in the western suburbs and as such we needed to deliver a diverse range of product to cater to a wide range of buyers and occupants. 33 Manning does just that with its mix of one, two and three bedroom apartments and penthouses with river and city views.”
Scriven says downsizers are actively seeking out lifestyle precincts that offer connection and a village atmosphere.
“These buyers are looking to stay close to the things they know while enjoying new experiences and unlocking value,” he says. “For investors, the market fundamentals on offer in Milton are its relative affordability compared to other states as well as the population and employment growth in the area.
“With the Olympics around the corner and low supply levels a result of construction and supply chain issues, we don’t see any of these fundamentals changing significantly for some time.”
For Scriven, the city’s low vacancy rate, which is currently under 0.7% is another indication why suburbs like Milton will experience increasing demand for housing.
Apartment resurgence
The combination of useful data and deep expertise is critical for developers looking to find value and stay ahead of the market. Similarly, collaboration with leading consultants and experts is invaluable.
“We started to recognise that although sea-changers and tree-changers initially started buying land to build bigger houses at the height of the pandemic, affordability and confidence has led to a recent resurgence in apartment living.
“Additionally, many owner occupiers have been unlocking equity as house prices rise, downsizing their home while upsizing their lifestyle,” he said.
In Brisbane, there is currently a 46 per cent difference between the average house price and apartment price; the largest gap in the country, and the most significant in 10 years. Apartments in the city are currently providing the most value for owner occupiers and opportunity for investors.
