The area between Toondah Harbour and the Cleveland CBD is experiencing an apartment construction boom with 150 units under construction and at least 200 more units awaiting Council approval.
1 Fitzroy Street
Application MCU013309 was submitted on 3 September 2014 and approved by Redland City Council on 28 November 2014.
The developer is Javica Property Solutions Pty Ltd.
The project will have 65 apartments in a single block of six storeys.
12-14 Wharf Street
Application MCU013470 was submitted on 30 April 2015. Following the Council’s decision on 6 August 2015, a negotiated decision was approved on 1 September 2015.
The developer is Australia Wistar Pty Ltd.
The project will have 35 units, 32 of them will have two bedrooms and three will have three bedrooms.
There will also be 210 m2 of commercial space.
211 Middle Street and 21-23 Passage Street
Application MC012013 was made on 11 February 2013 and approved on 26 September 2013.
The developer is Middle Street Properties No. 1 Pty Ltd As Trustee
The project will have a total of 42 units.
13 North Street
Application MCU013244 was made on 5 May 2014 and approved on 13 November 2014.
The developer is Mr Peter Topatig.
The project will have 10 units in a single block of three storeys.
In the pipeline
As well as these 150 units under construction two other projects could add more than 200 units to the stock of apartments in this part of Cleveland.
86 apartments could be built on adjoining blocks in Middle Street, Wharf and Shore Street East. This proposal, by Javica Pty Ltd, was submitted to council as MCU013661 on 21 January 2016.
The project is proposed to be for a single complex of six storeys.
124 units at the Cleveland train station are proposed under MCU013612. The proposal by Envisage Development Management is for two eight storey towers to be built above the station’s northern car park.
3,600 apartments could be developed at Toondah Harbour by Walker Corporation if its plans are approved by all three levels of government. If construction is staged over 15 years an average of 240 apartments per year would be added to the area’s accommodation supply.
Rental market implications
There are indications that owners of Cleveland apartments may already be struggling to find tenants, with plenty of “For Rent” signs to be seen.
This is consistent with recent reports that Brisbane is experiencing an oversupply of apartments due to a large increase in new stock over the past year.
Landlords are experiencing long vacancy periods, declining investment yields and many are offering incentives like rent free periods to get tenants.
QUT property economist Dr Lyndall Bryant says:
In addition to the 10,000 near-city apartments under construction, inner ring Brisbane has another 15,000 apartments approved and another 15,000 waiting approval. If all these properties go ahead there will be an apartment oversupply and it’ll be a tenants’ market for the foreseeable future.
Population projections trimmed and City Plan implications
The Government has recently revised down its population forecasts for Redland City according to a report in the Redland City Bulletin. By 2041 the number of people to be accommodated in the Redlands is expected to be 18,000 less than previously forecast.
The Council’s draft City Plan 2015 was aimed at accommodating an extra 50 000 people in Redlands by 2041. Given the reduced population projections, the controversial approval of Shoreline (10,000 people) and the current Council’s plans for Toondah Harbour and Weinam Creek (another 10, 000) it’s clear that major changes to the Draft City Plan are required.
The Council elected on 19 March should reboot the planning process and manage it properly starting with a Statement of Proposal as required under the Planning Act – a step that was circumvented by the Williams Council.