A buyer has purchased $14 million worth of property in a single transaction at Kokoda Property’s $119 million Ella development in Newstead, Brisbane, after searching the entirety of the eastern seaboard for a high-end development at the top end of the market.
This purchase was on top of a hugely successful project launch in mid-November where more than $22 million in sales was transacted.
The $14 million buyer purchased a complete floor, plus three additional apartments on a separate level, after being impressed by the development’s luxury design and resort-style facilities on offer.
After a slower start earlier this year for the project’s first stage, ‘Chester’, Kokoda Property has experienced market buoyancy in recent months, fast-tracking the release of the second stage, ‘Ella’, after demand started to soar and the first building achieved 135 sales totalling approximately $95 million in just seven weeks.
Unsurprisingly, this first stage, Chester was recently named the second best performing project in Brisbane in the last quarter, as per the PLACE advisory report released last week.
Located on the corner of Chester and Ella Streets in Newstead, the project offers a round-the-clock, hotel-style concierge. A total of 1500sqm of exclusive resident amenity includes a rooftop space with 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 and wellness centre, and gymnasium.
Kokoda Property sales and marketing director, Sam Tucker said Chester & Ella had become an obvious stand out in the maturing Brisbane market, where buyers are becoming more educated and discerning in their decisions. The buildings have been designed by world-renowned architecture firm Hayball and interiors by award winning Singapore Ministry of Design.
“We wanted to offer Brisbane something it had never seen before. We did extensive research to identify gaps in the market and to really understand where the market is moving in order to develop a luxury project that seamlessly connects with Brisbane’s culture and lifestyle,” said Tucker.
“Kokoda’s heritage lies in high-end luxury so this narrative carries through our brand into all our projects. Continuing this history is extremely important to us as this high-grade offering lies at the core of the company’s value proposition. We engage the best architects and interior designers from around the world to ensure that we are market leading and cutting edge.”
In contrast to Chester’s masculine design, Ella’s golden façade features more curvature and a classically feminine design. The interiors of the apartments feature gold plated finishes with a lighter colour palette, white joinery, and matte gold tapware. The building holds 149, one, two, three, and four-bedroom dwellings.
Tucker says that the benefit and ultimate value in high quality developments is two-fold.
“A higher quality offering attracts tenants and investors that are willing to pay a premium,” he says.
“Secondly, these developments are more likely to see stronger capital growth than their lower grade competitors purely on the basis that quality will stand the test of time. Without a doubt, the majority of our developments will see strong capital growth within the period they’re sold to when they are settled.
“The market is realising that true value lies in higher grade product rather than the investor stock that Brisbane was focused on seven to 10 years ago.”
Kokoda Property spent $1 million on the display suite for Chester and Ella, bringing in key attributes of the amenity on offer at the development. According to Tucker, a strong emotional response is key to selling off-the-plan, where purchasers often find it hard to visualise their potential lifestyle.
“We integrate a number of touchpoints to take our purchasers on that journey. We have a media production consultant that has developed animated 3D renders so people can really immerse themselves in how the space will feel,” says Tucker.
“A large-scale replica lobby with concierge gives people a simulated experience of walking into actual building. The project and cinema room then facilitates the introduction of the amenity and lifestyle through a cinematic experience. Life-size floor plans can be projected onto the walls, and projections of the view line from various apartments give the impression of scale,” he says.
Tucker says Kokoda Property undertook extensive research into the lifestyle on offer in Newstead to determine viability of the site. Key drivers included a high level of lifestyle amenity with restaurants, cafes, entertainment and premium retail options, proximity to the city and access to bike and running tracks.
Combined with low vacancy rates, strong rental yield, and significant capital growth at an average of 9.7 per cent annually for the last 10 years, this presented the perfect opportunity.
Tucker says Kokoda’s commitment to the Brisbane market is long-term, with the luxury developer currently in due diligence on another project.
“The demand is definitely there but it all comes down to finding the right site and investing heavily into designing the right project that will meet the demand,” he says.
Ella’s one and two bedroom apartments range in size from 55sqm to 82sqm and are priced from $440,000.
Three and four bedroom penthouses range in size from 145sqm to 197sqm and are priced from $2.3 million.
Completion of the project is expected in 2018.