Commercial Real Estate
5th April 2017
Woolloongabba used to only be a hive of activity whenever cricket or AFL was being played at the ‘Gabba at the weekends.
During the week, the suburb was home to a mix of industrial businesses as well as a smattering of workers’ cottages that had probably seen better days.
But today it is being transformed into a mixed-use hot spot that’s on the radar of commercial and residential developers, investors and tenants like.
Located just two kilometres from the CBD, the suburb was named a Priority Development Area by the State Government in 2010 and it appears that is exactly what has happened.
The Real Estate Institute of Queensland (REIQ) headquarters have called the suburb home for decades and has witnessed its recent metamorphosis first-hand.
“In recent years Woolloongabba has become very attractive to developers, not only for its central location, but also for the historical performance of the residential property market, which has done better than the Brisbane LGA median,” REIQ chief executive officer Antonia Mercorella said.
“The $550 million development, South/City/SQ, is a game-changer for the suburb and the 2.1 hectare site will feature two residential towers, as well as a hotel, a childcare centre, indoor sports centre, theatre and bars – it’s a really exciting development and will transform this part of Brisbane.”
South/City/SQ, an urban regeneration project, is due for completion in 2022 and will be home to about 2,000 residents. It will also feature some 13,000 square metres of retail and hospitality space.
According to joint project developers, Pellicano and Perri Projects, Woolloongabba was chosen because of its potential for population growth – particularly in the young affluent demographic aged between 20 to 34 – planned infrastructure and government support for urban renewal.
The project’s early feasibility studies had also identified the suburb as a growing retail catchment with overwhelming statistical demand for a new retail centre.
According to the developers, the project’s master plan draws on an alfresco lifestyle and subtropical design elements combined with an urban design aesthetic to house laneways and retail spaces, and opportunities for new restaurants, hole-in-the wall cafes, and chic bars.
The historic Broadway Hotel, which has sat vacant since a fire in 2010, will also undergo a $260 million development it was recently announced. The project will incorporate residential apartments, commercial and retail space, while keeping the unique character of the heritage-listed hotel, Mercorella said.
The new commercial space can’t come soon enough for leasing agents because there is far more demand than supply from tenants who want space to rent in Woolloongabba.
“Woolloongabba has been one of the better performers in my view,” LJ Hooker Commercial Brisbane senior sales and leasing specialist Manoli Nicolas said.
“There’s a lot of people who want to be in Woolloongabba and around Woolloongabba. It’s been very hard for them to find the exact space that they want.
“We’re seeing rents being achieved when the time has been spent by the tenants finding the space that suits them.”
Announcements of the major supermarket operator, cinema, market hall operator, and medical centre within South/City/SQ are expected to be made over coming months.