Trafalgar Lane, an $86 million mixed-use development in Woolloongabba, has experienced resounding success with all apartments in the 147-apartment project settled following completion in July, along with 100 per cent of available apartments leased within 60 days of settlement.
The project, developed by Melbourne-based diversified property group Pellicano, has demonstrated a strong demand for quality residential dwellings driven by investors and renters in the rapidly transforming area.
The settlement success comes at a time when investors and developers are questioning the strength of the local Brisbane market. According to Maddocks, defaults on settlements have historically lingered at three per cent, with some recent projects recording defaults as high as five per cent.
Despite this, Pellicano Managing Director, Nando Pellicano says the fundamentals of a quality project, including location, design, transport, services, employment and value for money, still apply, and drive demand.
“Pellicano offers value and a quality product, with the added bonus of us being both a developer and construction company that has an extremely strong track record,” says Pellicano.
“For us, Brisbane is not a short term investment. We’ve been in Melbourne for 49 years, and in Brisbane for 19. We foresee substantial more growth and opportunity to come in select areas of Brisbane including Woolloongabba due to its proximity to the CBD and attractive existing lifestyle amenity nearby.
“We undertake careful feasibility studies and research when considering a project, and then spend a considerable amount of time and dedication on the design phase to create functional apartments that will stand the test of time.
“With a good quality product, reasonable prices and a high growth location, settlement risk is dramatically reduced. These rules can be applied consistently across the market and we have recently witnessed the results with the success of Trafalgar Lane.”
The twenty-storey development features 147 apartments designed by architecture firm DBI Design. Twenty per cent of the residences were bought by owner-occupiers, with the remaining 80 per cent snapped up by discerning investors.
The majority of tenants are affluent young professionals who work in the immediate area and Brisbane CBD, only two kilometres from the project.
According to research released by think tank Urbis in March, employment in the Woolloongabba catchment area is set to increase by 3.9 per cent per annum over the next twenty years.
“The rental demographic in Woolloongabba is overwhelmingly focused on people in their mid-20s to late-30s, with generally higher than average incomes,” says Pellicano.
“This group values quality amenity and a dynamic yet low maintenance lifestyle, and the ability to live close to where they work. Woolloongabba offers this with an evolving dining precinct, ease of transportation, retail, and growing employment offerings.
“The area is going through substantial rejuvenation off the back of the infrastructure currently being built by the State Government. Woolloongabba is one of the main benefactors of the new cross-river rail, and transportation has historically been a driver of growth rates and prices.”
Trafalgar Lane itself features extensive amenity, with residents enjoying access to the Trafalgar Residences Retreat, complete with lap pool and spa, sauna, steam room, gym, yoga lawn, residents’ lounge, barbeque area and media lounge.
The one, two and three bedroom apartments feature an edgy and modern design, with floor-to-ceiling windows boasting views across the Gabba to the Brisbane River and the CBD. Luxurious, hand-selected finishes include stone benchtops, high-quality tapware, bespoke joinery and crisp, refined interior detailing.
The development also features a unique retail aspect on the ground floor – an intricate laneway design connecting Stanley and Trafalgar Street where the development is located.
“We worked hard to create a distinct ambience for the laneway, which features raw timber finishes and exposed piping to create an industrial feel,” says Pellicano.
“This fitout reflects Woolloongabba’s transformation from an industrial hub to a true lifestyle destination, which is now home to some of Brisbane’s best restaurants, shops and cafes.”
Pellicano says its success is partly due to the company’s commitment to retaining ownership of the retail assets in the buildings they create, giving purchasers the knowledge they are invested in the project for the long term.
Pellicano has also seen outstanding success at its joint venture with Perri Projects, the $600 million urban regeneration project South City Square, also in Woolloongabba. The partners recently announced $190 million in sales across its first three towers, further demonstrating buyer demand for quality, well-located apartments“The state of play in property is more complicated than a simple ‘oversupply’. Supply isn’t oversupply until it is built, and constricting forces on the market are preventing some of the less feasible projects from even hitting the market in the first place,” Pellicano says.
“The product we are building is servicing the market, and the supply is being absorbed both at the sales and at the leasing end,” he said.