Developing Queensland: Townhouse plan proves a winner for Azure

Azure has doubled down on a townhouse strategy as its sales target hits $1.5bn over the next five years

Azure is ramping up its development pipeline in South East Queensland to $1.5bn over the next five years, with the latest acquisition of a site at Rothwell in Brisbane’s north doubling down on its strategy of targeting the affordable sector.

Currently undertaking three projects in the Rothwell area, Azure is planning to transform the 4.5ha site at 499-507 Anzac Ave into a masterplanned community of 230 townhouses, building on the company’s success with similar projects in South East Queensland.

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Azure’s portfolio is tackling demand at both ends of the market – from downsizers looking for premium stock in Brisbane’s inner city to more price pointed housing in key fringe growth precincts.

The Terraces by Azure, a 53-townhouse development at Mango Hill, is set for completion in January.

The latest acquisition boosts the company’s active portfolio of seven developments to more than $500m, including two luxury high rises in inner Brisbane – One Earle Lane at Toowong which is edging closer to a sellout and One Five Six by Azure at New Farm which set a price record for the inner city in 2022 with its $11.4m penthouse sale, which was purchased off the plan.

Acquisition director Chris Schroor said the purchase of the Rothwell site built on the company’s strategy of townhouse developments to meet the growing demand for affordable housing.

“We’re bullish about townhouses and we’re doubling down on our strategy through this acquisition,” he said.

Azure's Brisbane northside project The Terraces is within a park setting.

“We currently have three townhouse projects on the northern side of Brisbane, so this will add to that strategy.

“However, in order to meet the affordability criteria, we’re finding that we have to move further out of the Brisbane metropolitan area.

“Any offerings that we can deliver below $800,000 are selling quite strongly.”

In August, Azure launched the $55m Munro by Azure which comprises 100 terrace homes in a gated estate at Bundamba in Ipswich.

The sold-out development offered three-bedroom, two-bathroom terrace homes for between $545,000 and $557,000 each.

“Our plans for Rothwell are similar to the Munro project, although it will be stronger from a price point considering the location,” Mr Schroor said.

Munro by Azure, the company’s first Ipswich project, will feature 100 terrace homes in a gated estate.

“It’s important to secure sites such as this that can deliver projects of scale to ensure we can meet the price points where the market dominates at present.”

Azure already has two other Ipswich projects in train – the $50m Seasons by Azure, comprising 68 terrace homes at the Brookwater enclave in Springfield, which is due for completion this month, and a proposed 129-lot project at Flinders View.

The Rothwell project joins Azure’s existing Brisbane northside projects of The Terraces by Azure, a 53-townhouse development at Mango Hill set for completion in January and located within a park setting and featuring a communal garden and pool, and Willow by Azure at North Lakes which comprises 76 terrace homes that are priced from $699,900.

Azure secured a buyer for the most expensive penthouse in the One Earle Lane development at Toowong, with a $3.85m deal.

The Rothwell development will become Azure’s flagship project for the area with plans to create a mix of terrace homes comprising three- and four-bedroom designs with a multipurpose room. Azure is also considering adding diversity with a two-bedroom product.

“In terms of sales, confidence from all sectors of the market has well and truly returned,” Mr Schroor said.

“We’ve had strong sales in the second half, with Munro selling out and the North Lakes development selling strongly.”

While the construction sector remains challenging, Mr Schroor said as an integrated builder-developer, Azure had been able to successfully deliver its planned schedule of projects.

AZURE

Profile: Azure is a privately-owned real estate development and investment company that has delivered more than 1400 terraces, units and residential lots since it was founded in 2014

More info: azd.com.au