Graya’s St Lucia Tower Pivot Signals New Feasibility Playbook for SEQ

Luxury builder-developer Graya has filed revised plans for its landmark $150-million tower on the Brisbane riverfront, signalling a broader structural shift across South-East Queensland’s development landscape. It is a bellwether of growing feasibility friction—even in the sector’s ultra-luxury segment—as the region’s infrastructure megaprojects and private development pipeline compete for resources ahead of the 2032 Olympics. The change application comes just two months after the original plans for the project dubbed Silk were granted approval for the city’s affluent inner-west suburb of St Lucia. “Since the original approval was granted, changing economic conditions, including increased interest rates, significant construction cost escalation, and heightened demand on the South-East Queensland construction sector, have materially affected the project’s feasibility, funding requirements and delivery timeframe assumptions,” the documents said. Under the reworked scheme for the 817sq m site at 16–18 Sandford Street, the project—greenlit for 15 storeys and 22 apartments—would be upscaled by seven storeys to a 22-storey tower yielding 26 units, all three-bedroom configurations. Rather than expanding vertical bulk, Graya plans to unlock the extra density by compressing floor-to-floor and internal floor-to-ceiling heights. “The change in floor-to-floor heights is a resultant shift in the product being pursued,” a planning report prepared by Mewing Planning Consultants said. “Since the development was conceived and the original development application progressed, the federal government’s taxation changes have affected the apartment market and required recalibration of design. “The larger floor-to-floor units were a premium offering that does not quite enable delivery, and so a shift in priorities results in more efficiency and for the need for a suitably yielding building given adjusted unit price points.” ▲ Renderings of the revised tower scheme proposed by Graya for its Silk project at 16-18 Sandford Street, St Lucia. Notably, the additional storeys comprise four extra full-floor residential apartments and three technical storeys—a slightly elevated basement level, Level 1 service infrastructure replacing an approved mezzanine, and the provision of a more extensive roof over the rooftop communal area. As a result, the tower’s roof height would edge up modestly from 77.45m to 79m, while its sculptural ribbon facade is marginally reduced, rising to just over 81 metres. “The amendments seek to facilitate a more deliverable residential development while maintaining the underlying design intent, architectural quality and key built form characteristics of the existing approval,” the planning report said. As part of the change application, a feasibility statement has been submitted detailing the feasibility and delivery considerations underpinning the proposed amendments. “Cash rate increases from the RBA have occurred on three occasions, increasing landholding costs, interest-cover requirements, valuation requirements and equity contingencies,” a summary of the statement said. “Construction pricing has continued to increase, with construction prices increasing in Queensland by 9 per cent in the past 12 months, compared to the 4.1 per cent national increase. “The project is competing for construction capacity, with a growing infrastructure and development pipeline in South-East Queensland, placing pressure on the availability and pricing of skilled trades.” ▲ Renderings of Graya's upscaled plans for its Silk project on a site it acquired last year for $17 million. Architecturally, the tower scheme—true to its moniker Silk—features soaring ribbons of moulded precast concrete and split-face sandstone textures that soften its vertical mass along the river corridor Under the revised proposal, it would integrate 588sq m of communal open space across its ground level and rooftop terrace. Ground-level amenities would feature an expanded gym and wellness area, integrated with a 99sq m riverfront garden, while the tower’s rooftop terrace is to incorporate a swimming pool, spa and barbecue/outdoor dining facilities. On-site parking is to be maintained at 63 car spaces (58 resident, 5 visitor) across four basement levels and bicycle parking expanded to 34 spaces. Graya—founded by brothers Rob and Andrew Gray in 2012—acquired the St Lucia site late last year for $17 million from the Malouf family. Meanwhile, the developer has revealed it has topped $100 million in sales at The Gallery, its six-level project along Hamilton’s Racecourse Road in Brisbane’s inner-north. It has sold 25 of the development’s 48 apartments for more than $102 million. Construction began on the 3612sq m amalgamated site in June and completion is expected in 2028. Graya has also taken the covers off a $700-million project that includes a pedestrian laneway linking two of the River City’s best-known lifestyle precincts after paying $40 million for a prominent Newstead site. It has filed plans for a 35-storey Bureau Proberts-designed scheme, dubbed The Silo, comprising 170 apartments on the 3016sq m site at 19 Chester Street, 3km north of the Brisbane CBD.

Apartments
Phil Bartsch
Tue 27 Oct 26

Graya’s St Lucia Tower Pivot Signals New Feasibility Playbook for SEQ

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