Chapel Hill mixed-use development site sells following strong buyer demand

• The property is currently predominantly vacant, except for a single detached house
• It has approved for 17 small lot houses and a 108-place childcare centre
• The property was purchased by a Brisbane-based development group from YM Private Pty Ltd in a deal negotiated by Christian Sandstrom of Knight Frank

A mixed-use development site in Brisbane’s southwest with approval for residential small lot houses and a childcare centre has sold for more than $7 million following strong buyer demand.

The 8,411sq m site at 70 Fleming Road in Chapel Hill is currently predominantly vacant, housing just a single detached dwelling on the southern portion of the site.

However, it has approval for 17 small lot houses and a 108-place childcare centre with 25 car parks.

It was purchased for $7.2 million by a Brisbane-based development group from YM Private Pty Ltd following an extensive five-week Expressions of interest campaign run by Christian Sandstrom of Knight Frank.

The site is located near a bus stop, retail shops and within walking distance of the Chapel Hill State School, and enjoys more than 70 metres of frontage to Fleming Road.

Mr Sandstrom said the sales campaign generated over 80 enquiries, demonstrating strong demand for development sites suitable for boutique developments.

“There is limited availability of sites with approval for small lot house developments,” he said.

“We are currently experiencing stronger demand for smaller boutique projects aimed at owner occupiers and downsizers where end sale price points are higher than investment-grade apartments.

“Purchasers are now being more conscious of potential delivery risks, given the challenges being faced in the building industry with a shortage of builders and certain trades which have been absorbed into either large-scale infrastructure projects or high-density residential towers currently under construction.

“These smaller boutique developments can be completed in shorter time frames, limiting completion risk and providing certainty of delivery especially when some purchasers are delaying the sale of their own property to coincide with the new acquisition.”

Mr Sandstrom said there was strong demand for both residential homes and childcare in Brisbane amid a current undersupply, and developers were looking to capitalise on this.

“This property is one of the last remaining sites approved for small lot houses by council in the Brisbane local government area, which made it even more appealing to buyers,” he said.

“The development will cater for demand for the ‘missing middle’ in Brisbane and Chapel Hill.

“Chapel Hill has great access to the city and is well serviced via public transport and access to major arterial roads, as well as being rich with both public and private amenity, making it highly sought after.

“However, the predominant type of housing in Chapel Hill is large lot detached houses which has the associated land cost directly embedded into the purchase cost and accordingly is becoming increasingly unaffordable.”

For more details contact lead agent:Christian Sandstrom