Brisbane apartment prices might be easing but eastern seaboard developer Fortis says it is bucking the trend and forging ahead with the purchase of a fifth development site in the Sunshine State.
Brisbane unit prices dropped for the first time in three years in the June quarter, falling about $10,000 or 1.2 per cent to an average of $790,087.
But Fortis, acting as a development manager, has purchased an inner Brisbane site in the popular riverside suburb of Teneriffe for $31.5m, saying the narrative that buyers and investors are stepping away from the city’s apartment market isn’t reflected in what it is seeing on the ground.
At Teneriffe, Fortis plans a luxury mixed-use residential block designed by Fraser & Partners with the project to incorporate ground floor retail. The off-market acquisition of the 2386sq m site fronting 49 Doggett Street, was handled by Sam Byrne, director of private and institutional markets at Patona Property.
Positioned at the convergence of the James Street, Gasworks and Teneriffe precincts, the site is 2.5km from the Brisbane CBD, close to lifestyle amenities, and with views to the trendy waterfront suburb of New Farm towards the Brisbane CBD.
In a statement, Fortis general manager of development in Queensland Dan Boman said the acquisition of 49 Doggett Street was another deliberate step as the company scaled its presence in Queensland.
“Fortis clients are targeting tightly held, blue-chip locations like Teneriffe, where we can deliver design-led product that differentiates,” said Mr Boman, adding that opportunities of this calibre are rare.
Mr Boman said Fortis’s off-the-plan apartments in Brisbane were selling strongly.
“The performance of the Brisbane portfolio has validated that approach. River House, a 15-unit development in Kangaroo Point has set a strong benchmark, while Crest & Walker comprising 65 units in Newstead, is already generating significant early demand.”
He said there had been 18 unconditional sales at Crest & Walker worth nearly $34.5m, including 15 sales prior to launch.
“Queensland remains a priority growth market for Fortis clients, and we are actively pursuing further opportunities where we can apply our design, delivery and market positioning,” Mr Boman said.
“We believe demand hasn’t disappeared – buyers are simply taking longer to make decisions. That’s reflective of broader market conditions, with purchasers taking a more measured approach. But when the location, design and quality are right, buyers are still prepared to act. We remain confident in Brisbane’s residential market and its long-term growth trajectory.”
Other Fortis projects in Brisbane include 12 two and three-bedroom apartments in the up-market suburb of Hamilton. The Lynsford project is designed by Koichi Takada Architects with sales set to launch next month.
Fortis is also developing Rosemont in New Farm on a 5,727sq m corner site comprising 74 large scale apartments. The project has been designed in collaboration with architecture and interiors practice DKO.
The Rosemont project generated around 295 inquiries within days of the launch of the registration-of-interest campaign, ahead of the planned September sales launch.
