The offering comprised a 2.56Ha* cleared, generally level vacant site less than 4km* from the Ipswich CBD with approval for 114 x 3 bedroom townhouses
The campaign yielded a total of 36 enquiries which is an average level for a medium density site in the Ipswich area where there is generally a slightly smaller pool groups actively seeking townhouse sites as compared to other regions in SE Qld.
The physical characteristics being cleared and elevated as well as the locality of the site was viewed favourably with its proximity to a wide variety of local facilities and amenities including shopping, schools, parks, transport, health and recreation.
The DA was viewed as a positive as it established the development conditions and ICC’s support for this use. Several groups suggested that they would be seeking to alter the design of the dwellings to their preferred building layouts which would consequently reduce the yield to between 90 and 95 townhouses.
The majority of the assessment of the site related to the market and depth of demand for a high volume townhouse project in the Ipswich area. Feedback in this respect was softer than anticipated with feedback suggesting stock would need to be pitched at around the low $300,000 mark to in order to generate suitable sales volumes and obtain valuation support critical to the target market which in this instance is primarily the investor market.
While the site is in an excellent location it was viewed that as an older area there was a healthy supply of second hand townhouse stock at much cheaper price points that would limit the prices achievable or new stock. In addition the market for detached house and land product in the area was still very price sensitive with completed product competitive.
Several groups with interest in the site advised that their preferred use would be for small lot house and land product however the resultant yield on this basis did not make their offering competitive.
A number of alternative other uses were targeted including aged care, retirement and Manufactured Home Estate developers. One particular MHE group submitted a strong offer only to be advised by ICC that they would not support the use in this location.
|Method of Sale:||Expressions of Interest|
|Marketing Timeframe:||6 Weeks|
|Total Offers Received:||3|