Construction Industry in Australia Soars to New Heights with Record Crane Activity
Australia’s construction industry is on an exhilarating journey marked by a remarkable…
12 July 2023
The Tweed Coast, located in far north New South Wales, is currently experiencing a resurgence. The driving force behind this rejuvenation is substantial investment in both public and private sector projects. Notably, fund manager Clarence Property has taken the initiative to benefit from the scramble for developable sites in the region.
Following multiple inquiries from developers based in Sydney and Melbourne, Clarence Property has decided to auction the last development sites in the oceanfront district of Casuarina Beach. With recent transactions in the coastal strip being closely monitored, the company anticipates the five lots sale, which together span nearly 1ha, could yield more than $20 million.
Peter Fahey, Clarence Property’s managing director, observed that despite a scarcity issue, the high-end beachfront market remains resilient. The company has been approached mostly by high-end residential developers. He believes the current market conditions make it an appropriate time to conclude the firm’s profitable ten-year syndicate investment and sell the remaining 9663sq m of its Casuarina Beach holdings.
Several significant property transactions have been completed in the region recently. Azure Development Group purchased a 7354sq m parcel within the town centre for nearly $21 million. Furthermore, Holm Developments and DeMartini Fletcher Property Development procured a neighbouring 4083sq m site for $8.69 million.
Fahey highlighted that the Tweed region is gaining momentum due to a $1 billion infusion in major infrastructure investment. This is generating substantial demand for end-products. The construction of the new $723 million, 430-bed Tweed Valley Hospital at Cudgen and the $260 million terminal expansion at the nearby Gold Coast Airport have played key roles in heightening demand for development sites and housing in Tweed.
Recently, Elanor Investors Group revealed plans for a staggered $900 million transformation of the Tweed Shopping Mall. The proposal includes the construction of 13 buildings up to 15 storeys high, housing over 1400 townhouses and apartments.
Clarence Property is facilitating the sale of its remaining Casuarina Beach holdings through an expressions-of-interest campaign, led by representatives from CBRE and Colliers. The lots range in size from 1283sq m to 2482sq m and can be purchased individually or collectively.
The sale is expected to attract considerable interest from residential and mixed-use developers, as the sites are suitable for a mix of three and four-storey developments. The Casuarina Beach Town Centre plan allows a wide range of applications, including commercial, medical and retail spaces on the ground level and residential-only boutique apartments.
Casuarina Beach was initially developed by Consolidated Properties. However, in 2012, Clarence Property seized the remaining 21ha of land in the community for $6.1 million during what Fahey characterizes as the “lowest ebb of the post-GFC market.” With the current rise in property values, this move now seems shrewd.