A 1.32-hectare site just 20 minutes’ drive from Brisbane’s CBD has been snapped up by Southern Cross Care Queensland (SCCQ) just months after the organisation purchased an adjoining property.
The first site secured by the aged care and retirement living provider was an amalgamation of four lots at 1-7 Northmore Street in Mitchelton. The site totals 4,768 square metres and sold for $5 million in March.
Now, SCCQ has purchased an adjoining allotment that was a former horse paddock at 1A Northmore Street for $9.9 million.
Interestingly, while the first purchase was approved for a 106-bed residential care facility, the second was already owned by Sydney-based developer Traders in Purple which had secured approval for a retirement village there.
Traders in Purple was approved for 196 apartments across three buildings which would have ranged from seven to ten stories. A total of 35,000 square metres of residential floor space would have been available at the proposed Wilshire Village site.
Community services provider Burnie Brae was slated to deliver aged and community care services.
Brett Lentz, who was Traders in Purple’s head of operations in Queensland in 2021, told The Urban Developer the location would be attractive to those looking to downsize.
“The site’s greatest attribute is its green outlook to the Kedron Brook on its northern, eastern and southern boundaries – a natural green corridor that we wanted residents to enjoy both actively and passively,” he said.
“Our vision from the beginning was to create a strong community and village atmosphere which can be shared by the residents as well as provide benefits to the wider community.”
However, after several years of inactivity, the block of land went back on the market. Colliers Queensland residential development site sales team members Troy Linnane and James Matley directed the sale.
Linnane shared that the location attracted plenty of interest from aged care providers and other developers.
“This was a particularly rare site as it is located in an established residential area with expansive views over the Kedron Brook and parklands and close to the Brookside Shopping Centre,” Mr Linnane told The Urban Developer.
“The fierce buyer interest reflected the market demand for infill residential development sites.
“We received 10 offers from apartment and townhouse developers as well as aged care groups, with the ultimate buyer planning to provide much-needed retirement living on the site.”
Once completed, the co-located retirement village and residential care home will be SCCQ’s first site in Brisbane’s north. It currently operates 12 residential care homes and five retirement villages alongside home care offerings.
Knight Frank agent Sam Biggins, who was involved in the sale of 1-7 Northmore Street, said Mitchelton is a suburb experiencing a major demographic change.
“Along with growing demand we have seen increasing interest from property investors in the healthcare sector, which is only expected to strengthen,” he said.
“The defensive characteristics of the healthcare sector and the demographic tailwinds – with Australia facing an ageing population – are driving investment in the sector.
“Mitchelton is poised for a significant demographic shift in the coming decades, with an increasing ageing population, and combined with the surrounding suburbs including Keperra and Arana Hills, will drive accelerated demand for aged care accommodation in the area.”
Residents would have instant access to the neighbouring Brookside Shopping Centre and Osborne Road Shopping Complex. North West Private Hospital and Samford Road Day Hospital are located nearby.
Kedron Brook’s greenery is also accompanied by Teralba Park, Everton Park and McConaghy Street Park in the parkside cluster.
Mr Matley added that low vacancy rates and housing shortages in the Brisbane region were driving strong demand for development sites.
“With Australia’s aging population and baby boomers reaching retirement age and wanting to downsize, the demand for aged care living is huge,” he said.
“There are a number of operators who have missed out on this opportunity that we are now looking to place with similar sites.”
Colliers also stated that 1a Northmore Street has the potential for 33 medium-density townhouses, subject to council approval.
