Office is still not worth it, even in Brisbane, say the developers of a Milton office block who have filed reworked plans for the project.  Silverstone Developments is scrapping its approved 26-storey commercial building in favour of a 30-storey residential tower.  It lodged new plans for 299 Coronation Drive with the Brisbane City Council last week. The developer acquired the 3210sq m site three years ago for $13.3 million according to Corelogic data.  Silverstone development manager Wade Fraser told The Urban Developer that even with the company’s history of delivering large-scale office projects, it was not to be.  “Despite strong office rental growth in the near-city sector, soft capitalisation rates and high construction prices led us to explore alternative strategies,” Fraser said.  The residential development is consistent with planning objectives encouraging increased housing density in well-located inner city areas, according to the assessment report.  “The ability to feasibly deliver high quality development has changed and the approved development is no longer considered viable to develop,” the report said.  ▲ A render of the reworked Coronation Drive development. The Woods Bagot-designed tower on the 2339sq m lot facing the Brisbane River would replace a four-storey 1980s commercial building on the site.  The plans seek to “maximise the locational advantages available,” delivering 192 apartments in a “rapidly changing” market “where housing demands are high”, according to the assessment report. Silverstone had seen this for itself at existing projects, Fraser said. “We are currently under construction at The Windermere at Ascot, which comprises luxury three-bedroom apartments, and have been impressed by the demand from the market for this type of product,” he said. “This market in general has shown incredible depth and sales rates have continued to grow across south-east Queensland over the past few years.  “The vision for 299 Coronation Drive as a market-leading luxury apartment development was born from witnessing these trends firsthand and forecasting that they will likely continue for a while to come.”  ▲ Consistent with the previous office plan, the tower proposal has a stepped facade facing Coronation Drive but adds private balconies. A 26-storey tower will sit atop a four-storey podium, with seven levels of parking including three basement levels.  Given the limited number of Brisbane riverfront sites available, the tower will be aimed at the higher end of the market.  “We see the target demographic as a diverse group made up of wealthy downsizers from all around Brisbane, Sydney or Melbourne residents looking for a base in Brisbane, and international investors looking to get exposure to an unrepeatable opportunity in Brisbane ahead of the Olympics,” Fraser said.  But the design also incorporated 48 two-bedroom apartments which would cater to buyers at a lower price point, he said.  ▲ The proposal includes food and drink outlets at ground level. Milton is undergoing continued urban renewal as Brisbane gears up for increased population and the 2032 Olympics.  “People seem to forget that the suburb of Milton directly adjoins the CBD,” Fraser said.  “It certainly lends itself to residential with its location, riverside location, access to train and ferry, an established office precinct, and plenty of retail amenity.   “The suburb is transforming into a southern hub as legacy light industrial uses are gentrified or redeveloped. “We only see Milton getting better over time as more investment is made into the suburb.” Further down Coronation Drive towards Toowong construction is under way on Spyre’s Arc residential development , while Consolidated Property’s Monarch Residences is also well advanced on its construction program. 
