Development opportunity on Brisbane’s CBD fringe sells amid strong buyer demand

A property ripe for a future development right on the fringe of Brisbane’s CBD has sold for $6.5 million following strong buyer demand.

The 950sqm site at 309 Wickham Terrace in Spring Hill is currently home to a three-storey residential building consisting of 12 generous one-bedroom plus study apartments.

It has two-street frontages (to Wickham Terrace and Penton Lane) and overlooks Wickham Park and Roma Street Parklands.

Under the Spring Hill Neighbourhood Plan it could be redeveloped to accommodate an eight-storey building, including a residential or hotel development, or another alternative use.

The property was purchased by local developer Packhill, which plans to land bank the property for the short term, while taking advantage of the holding income and redeveloping the property in the future.

The sale of the property, which saw the transaction rate sit at a record of $6,842/sqm on land, was negotiated by Knight Frank agents Blake Goddard and Matt Barker following an Expressions of Interest campaign on behalf of a private international vendor.

Mr Goddard said response to the sale campaign was strong, with more than 100 enquiries from potential buyers and 13 offers received at the close of the campaign, five of which were unconditional.

“This was a prime development opportunity, with the property actually offering one of the first on- market opportunities to acquire a quality boutique site this year,” he said.

“The rebound of Brisbane’s residential market has been well documented throughout the first half of 2021 and high-quality inner-city development sites, particularly those offering residential development potential, have become a scarce commodity.

“The site was extremely sought after by developers due to its development potential, as well as its positioning along the Wickham Terrace ridge, providing uninterrupted views of Roma Street Parklands and the CBD, as well as secondary views to the north.

“With ongoing positive sentiment in Brisbane, particularly in relation to the 2032 Olympic Games, sites located in key hubs such as this will continue to be highly sought after.”

Mr Barker said while the property had great development potential, it also offered buyers the opportunity to hold the property over the short to medium term.

“The asset has a holding income of $152,000 net per annum, with potential for further rental growth,” he said.

“From a rental perspective it is sought after by tenants given its strategic location and abundance of transport options, including Roma Street Station, Central Station and the new Roma Street Cross River Rail Station, part of a $5.4 billion project scheduled for completion in 2024 that will funnel 46,320 passengers per day through the area.

“Retail and amenity is also prevalent, with major shopping precincts and health facilities within walking distance of the property.”