How a property market shift triggered the founding of Carpe Group

Around a decade ago there were some early signs the buoyant overseas property investor market was starting to cool.

That prompted Tim Campbell, former Lendlease development director, and Stuart Kacir, a former Lendlease development manager, to team up and create their own development firm, with the sole focus to create beautiful and functional apartments for the local owner-occupier.

Since founding the company in 2016, Carpe have delivered over $100m of completed residences across multiple high-quality, architecturally significant and boutique developments in some of Melbourne's best suburbs. Testament to their founding vision they have only sold one residence to an investor

"We wanted to pivot away from the high density towers Lendlease is known for and create something which catered for a completely different market," Campbell and Kacir told me in a recent interview with Urban.

"We started specifically targeting local downsizers with higher end apartments, a type of product that wasn't familiar with the more traditional, blue-chip suburbs across Melbourne."

Their first project was back in 2017, when they built nine townhomes in Brighton East.

Now, without admitting it, they have a bit of a following. That's been showcased in their most recent apartment development, The Walton in Kew, which is competing with a number of similar off the plan projects in the area targeting downsizers.

They've only been on the market for a few months and they've already sold over 50 per cent off the plan.

Construction is set to kick off on the Walpole Street site in June, after the team achieved construction funding from Australian Unity.

While over the years they've have seen personalisation of apartments, Campbell and Kacir said they've never seen so much customisation than they have in The Walton.

"It's not a case that buyers want to change the product," Campbell says, adding that they just want some features in particular upgraded.

"Some buyers have opted to remove a bedroom and turn a three-bedroom apartment into a two-bedroom to provide a second living space, but most asking for bespoke joinery, fireplaces, custom appliances, underfloor heating and even spa to the top floor terrace.”

“Given the market we are in, our main demographic tends to be couples who are downsizing from their family home of two or three decades, and there's some things they have always had, and want to continue to have.”

Electric car charging infrastructure in basements has been a popular addition for buyers in The Walton.

"They openly admit that they have no intention of owning an electric car, nor do they think they'll ever own one in their lifetime," Campbell says.

"They're just future proofing the apartment for generations to come, while also charging motorized golf carts."

Campbell and Kacir said Melbourne councils are now finally starting to require the inclusion of electric car charging as standard in new apartment developments. Coming with it will come a change in design mandate in basement garaging. Fire safety protocols will mean developers will likely have to create two points of entry and exit to a basement garage, given the heightened risk of fire associated with batteries.

Carpe are a very much design-focused developer, which is evident across the portfolio of under construction and completed projects.

"A lot of the job of developing is compliance and number crunching," Kacir says.

"When it comes to the architecture, that's something you can really get excited about, and ultimately it's how we see the finished product, so we like to make sure the architecture is something we can look back at and be proud of."

The team that created The Walton, Warren & Mahoney and John Patrick Landscape Architects, created Carpe's under construction Eaglemont project, Eaglemont Residences, which only has two apartments remaining.

A bonus of the market Carpe develop in was that the nature of the business meant they navigated COVID relatively unscathed. Of course build costs have gone up, but ultimately their target market, downsizers, saw the price of their homes skyrocket, some areas jumping over 40 per cent in around 18 months.

Sales continued through the lockdown period, as did construction, and now Carpe is in a position to take advantage of the lack of demand for development sites.

They have recently secured new development sites in Sandringham, Hampton, and another in Boroondara. 

"We look at the long term for our buyers when we're securing a site," Kacir says.

" Our niche is boutique projects in sought-after suburbs. When we find the right site, we know the apartments we build there will be in high demand, because they'll be something rare, something you can't often find anywhere else in the suburb."

The three new projects will bring around 75 apartments and approximately $190 million end value to Carpe's pipeline, with another few sites also currently in the crosshairs