Big­ger units are

Larger, live­able apart­ments are in de­mand from owner-oc­cu­piers – as well as in­vestors, a prop­erty de­vel­oper tells So­phie Foster

The Courier-Mail - Property - - REALESTATE NEWS -

THERE may be much ado about the drop-off in in­vestors look­ing for units in ma­jor cap­i­tals, but for some de­vel­op­ers who’ve only ever been about owner-oc­cu­pier prod­uct, it’s still all sys­tems go.

Brisbane de­vel­oper Tom Doo­ley, of Tom Doo­ley De­vel­op­ments, said a “pretty broad brush” was be­ing ap­plied to the apart­ment and unit mar­ket at present when there was a clear dis­tinc­tion between smaller prod­uct aimed at in­vestors and those de­signed to be homes for owner - oc­cu­piers.

“We’ve never gone to mar­ket say­ing let’s just fo­cus on in­vestors. The rea­son for that is if you do and if the in­vest­ment mar­ket drops away, prob­a­bly like it has right now, then those units can only be sold to in­vestors be­cause no owne­roc­cu­pier will buy them.”

Typ­i­cally, owner-oc­cu­piers want more live­able space and strong lo­ca­tions, he said.

“We’ve de­vel­oped larger apart­ments,” he said.

“The small­est unit is 62sq m plus 15sq m of bal­cony. Our big­gest unit’s 155sq m.”

Mr Doo­ley said given so much fo­cus had been on smaller one- and two-bed units for in­vestors, there was now a short­fall in the rental mar­ket for big­ger apart­ments, which saw owner-oc­cu­pier stock at­tract­ing in­vestor in­ter­est.

“The three-bed lo­cal mar­ket is some­thing we’ve al­ways tar­geted but what that means we’ve also had in­vestors come buy them.

“We weren’t tar­get­ing that as in­vest­ment stock but there’s de­mand for these three bed­ders,” he said.

“We’re big on build­ing live­able units. An owner needs to be able to live in our prop­erty long term.

“That at­tracts a lot of owne­roc­cu­piers but also means apart­ments will be good in­vest­ments.”

Mr Doo­ley’s Gas­works Residences was see­ing an av­er­age price a square me­tre of $6522, with the av­er­age two-bed­room apart­ment at 110sq m.

He said more than 90 per cent of buy­ers in his Skyring de­vel­op­ment in New­stead had a 4000+ post­code “and we’re find­ing that again in Gas­works Residences”, he said of his new­est de­vel­op­ment.

He has had 60 con­tracts so far for Gas­works Residences, 95 per cent of whom were owner-oc­cu­piers – “mainly empty nesters, down­siz­ers

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