[+] High Time for Townhouse Resurgence in the River City

There is a “colossal demand” and opportunity to develop projects with available contractors, and increase density, diversity and affordability. Despite that, townhouse development in Brisbane is barely moving. Data from Mitchell Brandtman shows townhouse approvals peaked in late 2017 and have since halved across Queensland, and make up even less of the housing approval stock in Brisbane. However, the big opportunity remains. Azure director Trent Keirnan has an extensive portfolio fueled by high-end townhouses—and says give the people what they want. “It’s colossal, there’s an insatiable level of demand because people are running busier lives, and looking for lifestyle choices, integrated amenities and low maintenance,” Keirnan says. “You can’t get it in a house and although you can get it in an apartment, it’s hard to bring a family up in an apartment. “Think about affordability—if it is a blue-ribbon suburb, a lot of people might not be able to afford houses in that suburb but they could afford a quality townhouse. “That gives them an opportunity to be close to family, friends, infrastructure and schooling which otherwise is not afforded to them.” ▲ Azure is building its Munro development at Bundamba, comprising 100 homes. Image at top: Townhouses by Green Sheep Collective in Melbourne. Mitchell Brandtman partner Caitlin Shields says the townhouse and small residential market had been incredibly busy until 2021. “That’s definitely tapered off and it’s now that market in the lower end of town where there’s a bit of capacity,” Shields says. “Contractors and subcontractors are putting their hands up. “What we’re doing in terms of workload and activity is less than we are seeing and less than the capacity we have. “So in my mind, these are the little wins that we have, where there’s capacity in the market of those subcontractors, contractors and suppliers. “It’s a bit of a glimmer of hope that there are sectors still working.” The Azure director says they are working on projects across south-east Queensland but not Brisbane. “It’s near impossible to do a townhouse development in Brisbane,” Keirnan says. “In my portfolio, if you rewound three years ago, 80 per cent would be in Brisbane City Council, whereas today I’d say less than 10 to 15 per cent of the portfolio is in the BCC area. “So it’s definitely changed and the sad part about that is it’s not providing the consumer with a diversified product. “They’re either going from a house to an apartment but that missing middle in terms of community-based or density-based living is just not existent. “The good part is what we are seeing in complexes that we’ve established—extraordinary amounts of growth because it’s a finite commodity.” ▲ Azure’s Trent Keirnan [second from left] speaks during a panel discussion at The Urban Developer Brisbane Residential Summit on April 18. Also pictured [from left] are Consolidated Property’s Don O’Rorke, 5Point Projects’ Damian Dove and The Urban Developer founder Adam Di Marco. Keirnan says there is a missed opportunity in Brisbane and the council needs to look to other cities to restart townhouse development. “I think what has happened is the council copped a lot of backlash with developers going in and buying an old house and jamming townies at the back, having no amenity and no good design,” Keirnan says. “It wasn’t policed appropriately so we’ve got little blights across the community. “What we need is the council to look at things the same way as Sydney and Melbourne and have a design-led approach. “They let good design dictate how you can get a diversified product. “Here, unless it’s actually allowed in accordance with the planning scheme, it’s not going to happen. “Letting design be a key determinant would get a better outcome for everyone.” You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] High Time for Townhouse Resurgence in the River City

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