A premium residential development site overlooking the Ross Creek Marina and the Townsville city centre is up for sale.
The 2,023sq m amalgamated site of four lots at 39-41 Palmer Street in South Townsville is expected to sell for around $3 million.
It was previously approved for a high-density residential development of up to 10 levels with 74 units, but has a permitted building height of up to 12 levels, enabling potential views to the Strand, the Ville Casino and the Queensland Country Bank Stadium.
It will be taken to the market via an Expressions of Interest campaign run by Craig Stack, Andrew Forster and Christian Sandstrom of Knight Frank on behalf of the owner, OCL TSV Pty Ltd.
Knight Frank Townsville Senior Partner Craig Stack said it was expected there would be strong developer interest in the site, particularly with confidence in the Townsville prestige unit market and quality accommodation hotels returning strongly.
“This site is situated in Townsville’s established accommodation and dining precinct, and suits residential development for short-term or long-term occupants,” he said.
“We found very strong levels of interest in prestige units for permanent residents earlier this year when we successfully sold Anelay on The Strand prior to completion.
“Since then, it has been difficult to get owners to sell high-quality development sites on the Strand with water views at ground level, and Palmer Street now makes very good sense.
“Palmer Street and the beachfront units on the Strand are the only addresses that consistently achieved sale prices in excess of $2 million for prestige units over the past few years.
“39 – 41 Palmer Street provides water views at ground level and 12 levels of permissible building height. By the time you are reaching level four you are looking over the Townsville foreshore to Magnetic Island.”
“The street is also achieving very strong hotel occupancy levels and is regularly full during the many Townsville events and Cowboys games. Our new stadium is only 500 metres away, with a great Creekside walk.”
The price expectation of $3 million for the amalgamated site would equate to a sale price of $1,500/sq m.
Mr Stack said this was very achievable, with the last development site sold by Knight Frank on the Strand being priced at $3,150,000, equating to $2,318/sq m.
Mr Forster said the economic performance of Townsville City and the wider North Queensland Region had been incredibly strong since 2018, which was attracting investors.
“The major private investment in the Resources and Renewables sectors in the past five years is now being accompanied by major public expenditure in the Defence and Health sectors over the next three years,” he said.
“The Townsville region now has an unemployment rate of only 3.9 per cent and has reached a record workforce of over 132,000.
“The launch of major construction and resource operation projects in 2023 and 2024 is likely to increase pressure on residential accommodation, improving pricing for this type of product. The Expressions of Interest campaign for the property will close at 4pm on Thursday, December 8.