Silverstone Developments has secured two sites on New Farm's iconic Brunswick Street.
Jim Watson, Silverstone's General Manager, said they purchased the two prominent outgoing corner sites at 676 Brunswick Street and 598 Brunswick Street with the intention to develop two mixed use apartment buildings in 2014.
"We have had our eye on these sites for a while now and are pleased to have secured them. We think New Farm is a fantastic area and we are not alone - over the coming years to 2031 the population within New Farm is projected to grow by approximately 1400 additional new residents, according to Resolution Research.
"We will be offering 41 apartments over 4 levels at 598 Brunswick Street and just 15 apartments at 676 Brunswick Street.
Silverstone aren't newcomers to the area, having completed two successful developments in the area over the past 12 months."
"We completed a boutique apartment complex, Vivid, New Farm, last year and finished and relocated to the redevelopment of a contemporary new office space at 1/24 Macquarie Street in July this year.
"Vivid, New Farm was a real success for us; the apartments were snapped up before the development even publicly launched, and we know the demand exists for more quality apartments in this area. In fact, we have already received a lot of interest in the new developments based purely on the New Farm locations and our track record with Vivid.
"We find what has attracted people to our developments is that we price for the investor but offer owner-occupier quality and size."
Silverstone Developments is an emerging boutique, privately owned Brisbane residential and commercial property development company with a reputation for real development outcomes and consistent delivery.
About New Farm
Information courtesy of Resolution Research
Based on average annual absorbency rates, New Farm's apartment market is currently undersupplied. There is an estimated demand for an additional 200 new apartments within the suburb, with plans for the delivery of only 152. The net effect of this undersupply will likely to continue to underpin price growth across the apartment market as demand outstrips supply.
Furthermore, land supply is highly constrained within the suburb with little to no opportunities for future development of any significant scale. Over the coming years we predict that price growth throughout the suburb will gain strong momentum as the supply demand imbalance becomes further exacerbated.
Rental growth throughout the suburb has been particularly strong in the context of the broader inner city markets. With median weekly rental growth across the one, two and three bedroom apartment markets all averaging between 7.5% and 9.5% per annum over the past five years. These particularly high rates of growth are indicative of a market where there is a high level of sustained demand for rental properties within the area.