A significant development application for a 36-storey, 185m commercial tower has been submitted by Charter Hall, reports brisbanedevelopment.com.

The tower, to be located at 266 George St is the 2^nd for Brisbane Square. Features would include 43,824 square metres of commercial space, 6-star Green Star office rating, retention of ground level publically accessible civic square, enhanced facilities for Jan Powers farmer’s markets, and a new food/drink outlet.

The development is a good sign for the office leasing market, with the September market overview from Knight Frank highlighting potential new developments and high investor interest are helping with steady improvement, with prime gross effective rents up 4.7% in comparison to 12 months ago.

Positive signs in the leasing market are flowing into some good activity in the CBD office sales market.

Core Logic has released their latest ‘Cityscope’ showing commercial CBD sales to the beginning of November are up $390 million then compared to the 12 months prior. A total of 60 sales were recorded for the period, totally over $1.6 billion.  More specifically, in the past three months 17 transactions have taken place totalling $574.6 million. This includes $531 million for commercial, $6 million for commercial strata and $1.6 million for retail strata and $36 million in the ‘other’ category.

Significant commercial/retail transactions recorded in the quarter were the sale of; a 50% interest in 400 George Street for $210 million (34-storey office building), 160 Ann Street for $119.5 million (recently refurbished 22-storey office building), and the unconditional contract of 150 Charlotte Street for $105.75 million (19-storey office building formally known as Energex House).

Hannah Schuhmann is positive the activity around office space in Brisbane CBD should translate into more jobs, driving increased demand for residential Brisbane CBD properties.

The Queensland Government is considering a market led proposal for a brand new 2000 seat theatre, reports brisbanedevelopment.com.

One of the suggested sites is the old State Library, which is part of the $3 billion Queens Wharf Development.

QPAC, located in the Brisbane CBD, is currently the busiest and most profitable theatre complex in the country. Seating 2000, it is the only theatre in the city which is large enough to cater for major musical productions.

Adding to the need for another venue, QPAC is booked out for the next five years, having to knock back seasons of major productions. Graeme Kearns, the General Manager of Foundation Theatres indicates the standstill affects the whole of Australia.

“Tours are not viable if they don’t play the big theatres on the east coast. Brisbane has become such an important part of the touring circuit, as seasons there are running longer,” he said.

Foundation Entertainment, who is behind the old State Library proposal suggests that it would be a mistake if the new theatre was anything under 2000 seats.

In relation to funding the project, Foundation Entertainment would contribute $75 million, and the other $25 million would be required from the government.

The proposal is gaining international support from such well-known industry personalities as the head of Disney’s Global Theatrical Productions, Thomas Schumacher.

“Whether it’s civic or private is not my concern but there is a market here and sales are strong. The economic impact of live theatre and live performing arts for any community is large.”

A government spokesman indicated to the Courier Mail that the government is exploring options for a second theatre, and are aware that the need is there. 

The Brisbane Metro project is progressing, with Council selecting Rochdale as a preferred site to construct a depot for the new metro vehicles, reports brisbanedevelopment.com.

The ideal spot for the depot is adjacent to the Eight Mile Plains busway station, with Lord Mayor Graham Quirk announcing that Council has contacted several land owners regarding acquiring their land. 

Commencement for the proposed depot would commence in 2022-23, with the 2.5 hectare site set to accommodation 60 metro vehicles.

“Council is committed to providing residents with a world-class public transport service, which means more buses for the suburbs, fewer cars on the roads and more travel options for residents,” Mr Quirk said.

“Brisbane Metro is the right transport solution for Brisbane, it is affordable with a very high benefit cost ratio and now is the time to deliver it.

“Importantly the Brisbane Metro will improve our lifestyle and leisure opportunities by providing an average of a one-hour weekly travel time saving for metro commuters.

“Council is getting on with the job and has identified land required for the project’s depot at Rochedale that provides direct access to the Eight Mile Plains busway station where the Metro line begins.”

The Brisbane Metro is an estimated $944 million project that will link Eight Mile Plains to Roma Street, and Royal Brisbane and Woman’s Hospital to University of Queensland Lakes, and all busway stations in between. The two new high-frequency/capacity lines will run over 21 kilometres.

The project is also in the process of acquiring a 1,600 square metre site from Queensland Rail at Grey Street. 

Queensland’s economy is looking like it’s turned a corner and the future is looking bright, reports Deloitte in their latest quarterly Business Outlook report.

Highlights include:

• Business investment up 3.4%,
• Economic growth forecast at 3.1% each year until 2021 with gas continuing to drive growth
• Employment up 1.9% and job vacancies also trending higher
• Retail spending broadly back on par with corresponding nation-wide increases. A significant improvement after a prolonged period of underperforming
• Small business confidence is holding on since 2015 with improvement in retail spending a contributing factor for this
• Population growth is gaining momentum due to housing affordability which Sydney and Melbourne can not compete with. Queensland attracts 11,000 more people than it loses each year
• Commercial construction continues to ‘over achieve’ with projects in the pipeline and the value of the work lifting
• International exports have grown by 37.7% to a staggering $18.1 billion in the year to June 2017
• International tourism is solid with average growth of 4.7% out to 2021. Almost two-thirds of all resort and hotel developments across the nation are based in Queensland (most of the dollars in upcoming planned work for the time being).  The lower Australian dollar is a contributing factor to the great figures.

Interestingly, the report conducted a special investigation into the Great Barrier Reef (GBR) showing it is valued at $56 billion to the economy (equivalent of twelve Opera Houses), and supports 64,000 full time jobs in Australia (more than large companies such as Qantas, Telstra, NAB, Kmart).

With 42% of Queensland’s population living in Brisbane, now is looking like the time to invest in our great city. Contact Hannah Schuhmann to discuss Brisbane CBD property investment options. 

Widely respected business and financial commentator Peter Switzer, has challenged the media on some recent negativity around the economy and property market, indicating he is optimistic about house prices and debt-servicing abilities.

Mr Switzer said to be cautious of doomsday negativity, especially after many experts tipped depression-like outcomes from the global financial crisis. People were pushed into term deposits as the safer option which were at about 6%. Now, over the time they had their money locked away they would be lucky to have gotten a 30% overall return.

Interestingly, if at the same time, investors had bought good property in Sydney or Melbourne in 2008, or bought in the stock market index (as opposed to term deposits), their investments would have shown returns of 100%+.

A former Reserve Bank of Australia board member, Dr. John Edwards takes the opinion that interest rates will rise quicker than other economists believe (the most indicating it will be about a year). He thinks the official cash rate should rise 2%, from 1.5% to 3.5% in a short two and a half years. However, he did indicate this could actually be 5 years down the tracks, and even when we get there, Australian households will still be able to cope.

With regards to the reported potential crumble in housing prices, Mr. Switzer recalls during the 1991 recession, when unemployment hit above 10 per cent, prices did not tumble.

He states when the banks are doing good, the economy is not doing as badly as some of the media would like us to think. Commonwealth Bank shares have shown phenomenal growth since 30 January 2009 with a 186% increase; growing from $26.75 to $76.66 this week.

The full article can be read by at the link below:

http://www.switzer.com.au/the-experts/peter-switzer-expert/more-housing-bs-but-please-read-entire-story-before-tweeting/?utm_medium=newsletter&utm_source=switzer-daily