A former TAFE site at South Brisbane will house multiple 30-storey apartment towers, under a development application lodged by property baron David Devine.
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Mr Devine's Metro Property Development has formally submitted a proposal to Brisbane City Council to build two 30-storey towers and one 10-storey tower on the site at 1 Cordelia Street.
Known as "New World Towers", the development will include about 602 apartments - 300 one-bedroom, 278 two-bedroom and 24 three-bedroom.
The towers will comprise podium level townhouses, as well as ground-level apartments with footpath access, according to the development application.
Designed by architects Bureau Proberts, the towers will surround a central recreation zone, featuring a pool, cinema, BBQ area and garden. Three retail tenancies have also been planned for each corner of the site.
Metro purchased the 4658 square metre former TAFE site, which is bordered by Cordelia, Peel and Boundary streets, from the state government for an estimated $20 million late last year.
Mr Devine has said he expects the Brisbane apartment market to run hot for another four years.
He unveiled plans early last month for a $400 million apartment development next to the Waterloo Hotel in Newstead.
"We have been in the business for 30 years and we know what's going on. The uplift in demand for apartments will be with us for another four years, driven by migration," Mr Devine told the Australian Financial Review.
However, a report by LandMark White last month, raised the risk of oversupply in Brisbane due to the increase in development.
The report, titled "A Balancing Act", questioned whether the level of activity in Brisbane's apartment market was a response to genuine demand or irrational enthusiasm.
"This increase in activity has occurred alongside some easing of core market drivers such as vacancy, rental growth and population," LandMark White's Queensland research manager Ally McDade told the Australian Financial Review.
Brisbane's current vacancy rate of 2.4 per cent is historically high when compared with the three-year average, while rents for one bedroom units have decreased slightly and population growth is down 14 per cent on the previous year.
- with Matthew Cranston, Australian Financial Review
