Toowong has been the the centre of many property developments these days. The champagne flute towers on Grace on Coronation Drive have been approved, whilst the Endrim House, a heritage-listed home is in danger to be turned into a childcare facility. There has also been rumours going around that the Goldicott House will be turned into an aged-care facility. Currently, a newly-approved student accommodation development is being built as well.
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Photo credit: afr.com.au
Just recently, Reserve Bank governor Philip Lowe released a warning that rental growth in Australia is weakening and demand for Australia property has slowed. In fact, growth has slowed enough to put spell caution for Australia’s biggest property company, Stockland, which has put an upcoming project on hold.
The chief, Mark Steiner, said that they are holding off on building properties in Brisbane’s inner city. His company has a development application to the Brisbane City Council for Toowong — a 520-unit that will include a supermarket and childcare centre, 4km from the CBD and near the University of Queensland.
Even though Mr Steiner believes that Toowong is a great sub-market, an overlap with the wider Brisbane city market is seen. He also thinks that Toowong has “all the ingredients” for success, but they want to be comfortable that they are going in the right direction, and at the right point of their cycle. They want to have an overview of the settlements being built whilst slowly assessing the market.
This is not the first time that a multi-million dollar property development company has put an upcoming project on hold. Walker Corporation also shelved its plan of a 433-apartment twin-tower project in Fortitude Valley. They replaced it instead with a $400 million office plan due to the market slowdown, that they point towards a “cyclical oversupply.”