High-rise apartment towers now set to be a feature of regional cities
Developers are starting to look outside big cities for plots to built big apartment towers, as prohibitive land values in the east coast capitals force many home buyers to look for more affordable options.
Regional cities such as Gosford, Geelong, Wollongong and Cairns have all had towers taller than 20 storeys approved recently, in part as a result of surging demand for apartments.
The number of developers vying for a single site in capital cities is much higher than in regional areas so developers can be more likely to find a bargain in smaller centres, agents say.
A marketing image of the Gosford development site for sale. Photo: Supplied
And as the populations of these small cities increase so does the need for amenities, meaning developers are adding retail components to these towers.
Ray White is now selling a development site in Gosford with approval for 21-storey mixed-use tower.
The planned tower would have 102 apartments in a mix of one, two and three-bedroom designs, with 500 square metres of commercial retail below.
Managing director of Ray White Commercial NSW Jeff Moxham said they’re expecting the site to sell for at least $5.5 – $6 million.
“It’s definitely a lot more affordable than a similar site in Sydney and that’s why we’re seeing more interest in Gosford and also Wollongong,” he said.
Selling agent Michael Ajaka said another drawcard for developers in Gosford, as well as the lower cost of land, was the steady stream of sea-changers moving there from Sydney.
“Apartments sell quite strongly off the plan in the area and there’s a lot of demand from renters and first-home buyers. Developers have clocked that people love the beautiful lifestyle here,” he said.
Mr Ajaka also said the council had a preference for mixed-use developments, and he predicted more apartment buildings with retail spaces would be coming to Gosford.
In April the 21 storey ‘Miramar’ apartment tower in Geelong was approved.
In Geelong, a city of about 190,000 one hour from Melbourne, the 21-storey ‘Miramar’ tower that is set to be the city’s tallest was given approval in April.
Selling agent Andre Veronie, from Whitford Newtown, said he had no doubt more developers would be building high-rise apartments in Geelong as Melbourne continued to sprawl out.
“There’s been a change of attitude here. Homeowners, particularly downsizers, are ready to embrace apartments and it’s driving developers over here,” he said.
Mr Veronie also said he was “blown away” that 80 per cent of the 112 apartments had sold in less than seven weeks.
The Signature tower will be Wollongong’s tallest building when it is completed, in around two years. Photo: MMJ Wollongong.
About 90 kilometres south of Sydney, the skyline of Wollongong is also set to change.
The Signature will be the tallest building there when it’s completed, in about two years. Construction starts next month.
It’s set to be 21 storeys comprising 120 apartments, three levels of retail space and a childcare centre that has already sold.
Geoff Jones from MMJ Wollongong who is managing sales at The Signature said the area had seen a development boom off the back of skyrocketing apartment prices; the median unit price is now more than $500,000.
“Developers have found it very hard to compete in Sydney and they’ve come to Wollongong and they’d rather invest there, even though sometimes the yields are higher,” he said.
Mr Jones said whilst residential property was hot, commercial tenants had been slightly more wary about purchasing off the plan.
Like Gosford, Wollongong has a significant number of commuters to Sydney.
NOIPO Investments Pty Ltd’s Cairns Citi Tower has a mix of offices, apartments and hotel suites. Photo: Supplied.
In the Far North Queensland city of Cairns, the 20-storey Cairns Citi Tower, backed by former Papua New Guinean prime ministerial candidate turned property developer Raphael Noipo, was given council approval in March.
The tower would have a mix of residential apartments, hotel rooms, a conference centre, a five-storey carpark and office suites.
