Investors eye CBD infrastructure rollout

Brisbane’s multi-billion dollar infrastructure rollout is luring investors in to the CBD.

BRISBANE’s multi-billion dollar infrastructure rollout is influencing investment activity in the CBD, according to Savills.

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 Queen’s Wharf, Cross River Rail and Brisbane Live.

Of the 31 sales above $10 million recorded since the beginning of 2017, 13 were near the Brisbane Transit Centre, which will be transformed with the development of the Cross River Rail and Brisbane Live.

A further six were within a street block surrounding the Queen’s Wharf precinct and the proposed Albert Street Cross River Rail Station.

An artist's impression of Mirvac's proposed tower at 80 Ann St in the Brisbane CBD.

Significantly, only four transactions were in the Golden Triangle which included Charter Hall and Investa’s amalgamation of three properties for the proposed 360 Queen St office tower which was counted as one.

Savills Queensland managing director Anthony Ott said investors were identifying Queen’s Wharf and Cross River Rail as “key attractors”.

“These projects will be significant in redefining the immediate precinct in which they are located,” he said.

“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.”

Mr Ott said that these major projects, coupled with contracting supply of available office accommodation was 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 it remove redundant office buildings but 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 St, and the proposed Charter Hall/Investa’s 360 Queen St look exciting in what they offer from a design and amenity perspective.”