Still building: The developers beating Qld’s construction industry crisis

Thousands of new apartments worth billions of dollars are under construction across Brisbane despite the building crisis, as developers with their own builders race to address the housing shortage.

An artist's impression of The Prescott by Mosaic Property Group.

Thousands of new apartments are under construction across Brisbane despite the building crisis plaguing the country, as developers with their own building arms race to address the housing shortage.

Mosaic Property Group has 14 active construction sites across Brisbane, the Gold Coast, and the Sunshine Coast, with projects valued at almost $1.3bn, including six Brisbane apartment developments that will create 560 new homes in the next two years.

An artist's impression of the rooftop of The Prescott by Mosaic Property Group.

The latest project to break ground is The Prescott in Toowong, which is more than 90 per cent sold, with the majority of two and three-bedroom apartments selling for an average price of $1.1m – mostly to owner-occupiers.

It’s Mosaic’s third project in Toowong after The Patterson and Kensington, which are both set for completion in coming weeks.

Mosaic Property Group founder and managing director Brook Monahan. Picture: Patrick Woods

Mosaic founder and managing director Brook Monahan said being able to ensure buyers that the project would be delivered without construction issues was central to the projects’ sales performance.

“Conditions remain challenging for developers and builders regarding construction costs and labour, and for this reason, only a handful of high-quality projects will realistically be delivered in the foreseeable future,” Mr Monahan said.

“We are lucky to be considered amongst a small pool of developers who have, and continue to deliver consistently, regardless of market conditions or cycles.

An artist's impression of the kitchen in one of the apartments of The Prescott by Mosaic Property Group.

“This is because we are unique in controlling every aspect of the development process, including construction, meaning we can closely manage outcomes.”

Pradella is another Brisbane developer with its own in-house building arm that is continuing to roll out apartments south of the river.

Construction on stage one of the final development within its $1.3bn Riverside West End masterplan, The Lanes, is now under way.

An artist's impression of the rooftop of The Lanes by Pradella.

Spanning three towers comprising about 355 apartments, The Lanes is now 80 per cent sold.

Just three minutes away, residents of stage one of Pradella’s other masterplanned community, Enclave, are now settled in, with residents due to move in to stage two later this year.

The developer has also just filed plans for a 25-storey, 154-apartment tower in Boundary St – one of the precincts identified for investment ahead of the 2032 Games.

An artist's impression of the rooftop of Enclave by Pradella.

Pradella sales and marketing director Lee-Anne Kielar said local buyers had shown strong interest in Pradella’s West End projects, which total 22 masterplanned communities valued at more than $2bn.

“We’ve seen ongoing high demand for our premium apartment offerings, particularly over the last few years, which indicates that buyers want to come home and enjoy the unique community features on offer like resort-style pools, fully-equipped fitness centres and stunning rooftop escapes,” Ms Kielar said.

Vicki and Michael Brandon recently moved into an apartment in the Enclave development in West End. Picture: Lyndon Mechielsen.

Michael and Vicki Brandon moved in to their apartment at Enclave late last year after downsizing from the Brisbane suburbs.

“We love it here and wouldn’t live anywhere except West End,” Vicki Brandon said.

“Michael and I wanted to get out of suburbs and we chose West End because of the lovely restaurants and facilities, while also being close to city.”

Local builder and developer Graya is also full steam ahead with its apartment projects, including Canvas in Bulimba, and a new one called Chalk in New Farm that just received council approval.

Graya's new residential development, Chalk, has received council approval. Image: Supplied

Chalk will offer two and three-bedroom apartments, designed to appeal to downsizers, right-sizers and professionals looking to be close to the river.

Graya managing director Rob Gray said local buyers accounted for more than 70 per cent of purchasers in Canvas, with only two developer-held apartments remaining for release.

Graya recently branched into the multi-residential space after recognising the rise of apartment living.

An artist’s impression of Graya's new residential development, Chalk. Image: Supplied

“Being the developer and the builder is a definite advantage in this market,” Mr Gray said.

“We’ve been able to navigate the market challenges as a team, carefully manage costs, and instil confidence in our buyers that we have the capacity to deliver the project to the highest standard.

“Construction of Canvas is now well advanced, with completion scheduled in Q4 2023.”

Herron Todd White director David Notley said Brisbane’s inner-city unit market had gone from being severely oversupplied eight years ago to undersupplied.

An artist's impression of Canvas by Graya, which is being built in Bulimba.

Mr Notley said the quality of unit stock had improved, making it more attractive to owner-occupiers, but investors had still not made a return to the market.

“Investors can enjoy a very healthy return on their purchase price and there are longer-term benefits from holding an inner-city asset too, particularly given increased infrastructure spending and the promise of an Olympic boost to the local economy,” he said.

According to the National Housing Finance and Investment Corporation, Brisbane will experience a shortage of 12,300 homes within the next five years.