Brisbane Commercial Real Estate News

More Brisbane Hotel developments coming on stream.

This report is based on an article by DINAH LEWIS BOUCHER in The Urban Developer.

The New $60m Howard Smith Wharves Hotel is reported to be progressing nicely.

Art Series Hotels has officially announced it will open its $60 million flagship hotel at Howard Smith Wharves in March 2019, unveiling new images of the five-star venue.
The SJB designed hotel, which will bring 166-guest rooms to Brisbane, has long been rumored it would call the $100 million Howard Smith Wharves development along Brisbane’s River precinct home.
Inspired by and dedicated to Australia’s contemporary artists, The Art Series will release further details, including the hotel’s namesake artist later this month.
The Arts Series Hotels, which launched in 2009, was privately owned by the Deague family until it was acquired by Mantra, is being developed by the Deague Group under chief executive Will Deague.
Deague described Brisbane as one of Australia’s fastest-growing capital cities and that it “continues to remain a major focus for the Group”.
This will be the first new property for the Art Series brand, known for original artworks adorning its walls and halls, since being acquired by AccorHotels in May this year.
“The flagship hotel at Howard Smith Wharves is a strong sign of Accor’s belief in the much-loved brand and will kick start our plans for future growth across Australia and New Zealand,” AccorHotels Pacific Chief Operating Officer Simon McGrath said.

SJB director Tristan Wong said the historically significant location would provide visitors a unique opportunity to understand more about Brisbane’s history.
“Howard Smith Wharves was constructed in the 1930s in conjunction with the Story Bridge.
And while the site was originally built as the Brisbane Central Wharves, it was leased by shipping company Howard Smith and Co. from the mid 1930s.”
During World War II, a number of air-raid shelters were constructed below the cliff face.
“Today, the remaining wharf buildings provide rare physical evidence of the pre-1940’s Port of Brisbane, and the air-raid shelters are some of the most intact group of shelters remaining in Brisbane,” Wong said.
Additionally, a $12 million ferry terminal servicing the precinct, jointly funded by Brisbane City Council and the Howard Smith Wharves Consortium, announced last week, is scheduled to open in 2020.
Howard Smith Wharves will stage its opening, with the first stage now open to the public.

Another beautiful day in Brisbane.
The city is bustling and there is plenty of commercial real estate for sale.

Confidence high in Brisbane with the New Westin Brisbane Hotel Opening.
The latest luxury hotel The Westin Brisbane has officially opened, marking the brand’s Queensland debut, and bringing in another offering to the city’s blossoming hotel market.
The $200 million hotel from the Marriott Group sits within the Woods Bagot-designed 37-storey mixed-use tower on Mary Street in Brisbane’s CBD.
The Westin has 299 guest rooms and suites. The Mary Lane tower comprises 184 luxury residential apartments located above the hotel component of the development.

The Westin is a 5-star hotel with a focus on its guests’ health and wellbeing.

Woods Bagot’s Bronwyn McColl described the hotel’s design as sophisticated, evoking a sense of refuge and ritual.
“Being a new building gave us scope early in the design process to marry sustainability with the values of health and wellness.”
The hotel has a fitness studio, a spa and regular yoga and Pilates classes. Wellness is a big focus, with the hotel even having a “run concierge” also known as a local running partner.
“Guests will feel the authenticity of a truly local experience,” McColl said.
The ground floor lobby flows into the hotel’s street-side jazz bar, as McColl says the ground floor hospitality was designed to merge with the street in a greater way than a traditional hotel.

Brisbane City Council’s hotel incentives, announced in 2012, offered infrastructure reductions for four and five-star hotel developers.
Subsequently, a wave of hotels hit Brisbane’s market in recent years, including the 103-room Ovolo, the 312-room W Brisbane.
The Malouf family opened their long-awaited $100 million The Calile Hotel just last month.
While the 164-room Howard Smith Wharves Art Series Hotel is due to open early next year.
This is greatnewsfor the Brisbane .

Confidence levels are high with several new office towers also under construction.

New report makes Brisbane Australia’s Most Liveable Capital City

Brisbane has again proven to be the most affordable and liveable capital city, according to latest research.
PRDnationwide analysed each state to find the most affordable suburbs as part of their capital city Affordable and Liveable Property Guide for the first half of 2018.
To measure a suburb’s affordability, PRD considered location (within a 20km radius from the CBD), price growth, rental yields, project development.
Suburbs also had important liveability criteria, being within 5km of amenities like schools, parks, shops and health care facilities, low crime rate, and a lower than average unemployment statistics.
Brisbane had the lowest entry price and highest rental yield compared to Sydney which had the highest entry price yet the lowest rental yield.

Affordable and Liveable Suburbs – Houses

Suburb
Median Price*
Rent Yield
Future Projects*
Brisbane
Algester
$514,500
4.1%
$1.5M

Bracken Ridge
$500,000
4.0%
$2.9M

Geebung
$538,000
3.8%
$3.8M
Sydney
Milperra
$899,000
3.5%
$3.9M

Panania
$1,050,000
3.0%
$1.1M

Jannali
$1,106,000
3.3%
$6.5M
Melbourne
Westmeadows
$595,000
3.4%
$4.9M

Tullamarine
$650,000
3.6%
$4.9M

Gladstone Park
$645,000
3.6%
$3.3M

Affordable and Liveable Suburbs – Units

Suburb
Median Price*
Rent Yield
Future Projects*
Brisbane
Algester
$365,000
5.4%
$1.5M

Northgate
$414,000
4.8%
$5.1M

Parkinson
$401,000
5.4%
$12.0M
Sydney
Dee Why
$800,000
4.0%
$74.3M

North Rocks
$826,000
4.0%
$16.0M

Lane Cove
$845,000
3.8%
$87.3M
Melbourne
Westmeadows
$490,000
3.6%
$4.9M

Pascoe Vale
$565,000
3.7%
$32.9M

St Kilda East
$558,250
4.0%
$5.0M

Brisbane’s Algester was the standout suburb for both houses and units with the lowest entry price and highest rental yield.
PRD highlighted Algester for having the best of both affordability and liveability given its low entry prices and proximity to supermarkets, parkland, public schools, a medical centre and the motorway.
Sydney’s median house prices experienced a gentle growth of 0.8 per cent, while units softened by -2.4 per cent from 2016 to the first quarter 2018.
In Milperra, south-west of Sydney’s CBD, homeowners benefit from nearby shopping centres, schools, golf courses, the Western Sydney University and public transport.
Sydney’s unit market is benefiting from increased unit supply with suburbs such as Dee Why becoming highly active, recording 630 sales over the last 15 months and a solid price growth of 10.3 per cent.
In Melbourne, the median house price experienced a 1.3 per cent growth and median unit prices grew by 7.9 per cent from 2016 to the first quarter 2018.
Northwestern suburbs Westmeadows, Tullamarine and Gladstone Park were standouts as the city’s most liveable affordable areas for houses.
Westmeadows, Pascoe Vale, and St Kilda East lead in unit affordability and liveability, with low vacancy rates, proximity to transport arterials and public transport access the primary drivers.
“It is no longer realistic to simply report on affordable suburbs, but to include those that have high ‘liveable’ factors,” the report stated.
“Liveability is gaining traction among home buyers and does attract a cost.”
“This latest release provides insights into the cost of liveability and how much home buyers need to be prepared to pay to have this requirement met in their purchase.”

From Martin North DFA

RBA reveals its cash rate decision for the month

The Reserve Bank has this afternoon made its cash rate call for the month of November, against a backdrop of record rate lows and a softening housing market. 
As widely predicted, the RBA has today left the official cash rate on hold at 1.5 per cent.
Australia’s top economists were unanimous in predicting another hold, including ING Direct’s Michael Witts, who said there are no triggers in Australia which would require a move.
“There was no discernible change in domestic economic indicators over the past month, ensuring that the RBA will hold the cash rate steady in November,” he said.
“A number of global economic developments may yet have an impact on the outlook for the Australian economy. That’s said, there is little chance of a change in the official cash rate in the short term, especially given the ongoing soft inflation numbers and the slowdown in the housing market; due to higher interest rates and tighter lending restrictions by the banks,” he said.
Others, like Saul Eslake, pointed to patterns in employment which will continue to inform the RBA’s decisions.
“Although most recently reported economic growth figures were above trend, and unemployment rate is 5 per cent – the level traditionally regarded as signifying full employment – the above trend growth is unlikely to be sustained in the near-term, the unemployment figure was probably rogue, there is still a lot of spare capacity in the labour market by other measures,” Mr Eslake said.
“The RBA itself has started to wonder out loud that unemployment probably needs to be lower for longer than history suggests before wages growth starts to pick up – and, most importantly of all, the latest CPI data show underlying inflation still running below the RBA’s target range,” he said.
Gavin Roberts, director of QB Commercial said “We expect little impact on the Commercial Real Estate market as fundamentals continued to be strong.”