Brisbane’s planned infrastructure is influencing investment activity within the Brisbane CBD, according to Savills latest research.
Sales activity in the CBD over the past two years has shown a marked bias of activity in precincts close to proposed infrastructure such as Queens Wharf, Cross River Rail and Brisbane Live.
Of the 31 sales above $10 million recorded since the beginning of 2017, 13 of these were in close proximity to Brisbane Transit Centre which will be transformed with the development of the Cross River Rail and Brisbane Live. A further six transactions were recorded within one street block immediately surrounding the Queens Wharf precinct and the proposed Albert Street Cross River Rail Station.
Significantly, only four transactions occurred within the traditional heart of the financial precinct of the CBD, commonly referred to as the “Golden Triangle” bounded by Edward Street, Queen Street and Eagle Street. (The amalgamation of properties for Charter Hall and Investa’s proposed 360 Queen Street office tower was treated as one transaction in Savills analysis of the data).
The attraction of Queens Wharf and Cross River Rail
Both domestic and offshore investors are identifying Queens Wharf and Cross River Rail as key attractors in assessing investment opportunities given the potential to stimulate increased pedestrian traffic and stronger office accommodation demand within these precincts.
These projects will be significant in redefining the immediate precinct in which they are located. Major projects like these lead to ongoing enhancement of the surrounding area. This can be as simple as an upgrade of existing retail amenity through to new office, residential or mixed use development.
Looking at the CBD waterfront precinct as an example; in the 80’s much of this area was still wharves, now it is the centrepiece of our financial precinct with outstanding premium grade office towers, and high quality food and beverage amenity.
Office accommodation supply
These major projects, coupled with contracting supply of available office accommodation, are generating strong attention from major institutions looking to secure sites for the next phase of office development or supply cycle.
While the timing of new office supply will be dictated by tenant demand, new product is important to stimulate the CBD.
Not only does new product remove redundant office buildings but it breathes new life into the market with the latest trends in workplace design and building amenity. The new developments such as M&G/Mirvac’s 80 Ann Street, and the proposed Charter Hall/Investa’s 360 Queen Street look exciting in what they offer from a design and amenity perspective.