Luxury developer Kokoda Property is experiencing skyrocketing demand for its luxury apartment development, ‘Chester’ in Newstead, recording 135 sales totalling $94.9 million in the past seven weeks alone, after a slower-than-expected initial launch which saw a handful of sales earlier this year.
Designed by Hayball and with interiors by Singapore firm, Ministry of Design, the project initially launched with much fanfare in June, however according to the developer, the election and regulatory changes had contributed to a slower than anticipated sales rate.
According to Kokoda Property’s sales and marketing director, Sam Tucker, the project’s recent sales success comes as the “fog appears to be lifting” on market uncertainty and local buyers step back into the market with confidence.
“The federal election definitely created instability and fuelled negative perceptions of inner-city apartment developments in Melbourne and Brisbane,” Tucker says.
“The process was incredibly drawn-out and buyers lost confidence. Now the dust is settling, and we are seeing a return to high levels of demand.
“In stark contrast to earlier this year, throughout August we have experienced substantial interest in Chester’s luxury apartment offerings. We believe the multi residential market in Brisbane is now maturing with discerning investors and owner occupiers turning their heads to high-quality developments in well-performing suburbs outside of the CBD.
“While market research suggests a stalling interest in smaller investment stock, what we are seeing is growing demand for architecturally-designed off-the-plan residences that offer tenants a superior lifestyle,” Tucker says. “Brisbane is rapidly transforming into a new world city; its culture, business centre, technology, and lifestyle is evolving with over $40b of infrastructure investment planned, so naturally there is a shift occurring with demand now skewed towards sophistication and luxury residential design.
“There has been a significant amount of talk about oversupply in Brisbane but we believe that good projects of a higher level of quality, in strategic locations on the city fringe, will outlast market fluctuations.
“Newstead is an area that experiences strong capital growth, with high rental yields and a consistently low vacancy rate. Our recent sales at Chester have indicated that high-end product in a sought-after location and with a unique dedication to lifestyle amenity, will continue to drive demand due to its rarity and widespread tenant appeal.
“Chester doesn’t have any competitors in the market that are offering the same top-end amenity at a comparable price per square metre. This scarcity is driving its value and buyers are just falling in love with the product,” Tucker says.
Associate Director at Urbis, Paul Riga, says the market is now experiencing a ‘flight to quality’ as discerning investors select projects that feature high-end amenity, design, finishes and construction, and are located in areas with desirable lifestyle factors.
“Various disruptors, such as the election and regulatory factors, meant we saw subdued new apartment sales in the June quarter,” Riga says.
“Preliminary data indicates a strong underlying demand for higher quality product. The marketplace is entering a phase of increased competition as investors and owner occupiers become more savvy in their purchasing decisions.”
“Kokoda has a great track record in Melbourne for delivering high-quality projects and they are bringing that sophistication to the Brisbane market,” he says.
Kokoda says the demand in Chester is showing no signs of slowing, with 45 sales recorded in the last week alone. According to the developer, seventy per cent of the recent sales were derived from the Brisbane and Sydney market. The remaining 30 per cent has been driven by international buyers, where interest in the developer is growing.
The success of the sales campaign can partly be attributed to an opulent display suite, which Kokoda Property spent over $1 million to design and construct. Potential residents can experience a tangible representation of a three-bedroom apartment, helping them picture their life in this unique development. The display suite has deservedly earned a reputation for itself, with potential residents and other industry members flying interstate to view it.
Located on the corner of Chester and Ella Streets in Newstead, the development borders the blue-chip suburbs of Teneriffe and New Farm. The project offers a round-the-clock, hotel-style concierge along with a total of 1500sqm of exclusive resident amenity including a rooftop facility with a swimming pool, spa, outdoor cinema, kitchen and barbeque areas, and golf putting greens, in addition to a private dining facility and another lower-level amenity offering complete with a courtyard terrace, health & wellness centre, and gymnasium.
“The great Australian dream is changing,” Tucker says.
“Well-off young professionals and established downsizers are now looking for ways to be closer to the city and are demanding never-before-seen levels of service and amenity.”
“Chester is filling that demand.”
One, two and three bedroom apartments at Chester range in size from 60sqm to 120sqm and are priced from $430,000 to $1.1 million with secure car parking and storage.
Three and four bedroom penthouses at Chester range in size from 158sqm to a substantial 430sqm and are priced from $1.78 million to $3.5 million with secure car parking for multiple vehicles.