This article is from the Australian Property Journal archive
AUSTRALIA may not be ready for it, but in the nation’s capital, Geocon’s Republic development has received a vote of confidence after global investment bank Goldman Sachs plunged $1 billion into the mixed use project, bringing forward completion of Canberra’s biggest residential project from 10 years to within three years.
Geocon said it would fast-track delivery “due to unprecedented demand for apartments in the nation’s capital.”
Construction of the precinct’s Republic, Dusk and High Society buildings will now be carried out concurrently to deliver the first 1,000 apartments, public carpark, hotel, office space, public gardens and amphitheatre, and restaurant and café precinct.
“Rather than a staged build as originally anticipated, we are taking the unprecedented step of delivering the first four buildings at once – almost 1,000 apartments of the 1,250 total,” Geocon managing director, Nick Georgalis said.
“We will deliver more than half a billion dollars’ worth of stock to help a rental market which has reached crisis point.”
Georgalis said with Canberra’s rental costs among the highest in the nation and vacancy rates at almost zero, there was no choice but to accelerate the project and release more stock quickly to a starved market.
Data released yesterday by SQM Research showed that Canberra led the nation in monthly rental growth through May, with both house and unit rents up by 2.1%, while the annual increases of 8.3% and 6.3% respectively were behind only Hobart. Houses currently command $631.4 per week and units $450.9 per week, making it the second-most expensive rental market in the country.
Geocon has a 50% share of Canberra’s booming apartment market, and demand for Republic has been unprecedented.
Georgalis said stage one of Republic 70% sold out before construction began, and stage two of High Society has received more than 1,000 registrations of interest.
“The national capital is undergoing a remarkable transformation, with $234 million in urban renewal spending, a new light rail system that will connect the city from north to south under construction, and a population expected to increase 6% by 2020,” Georgalis said. “Coupled with the highest wages in Australia, its lowest unemployment rates, and a new international airport opening up gateways to Asia and beyond, Canberra presents the best opportunity for investors in the country.”
Geocon’s development portfolio also includes WOVA and Grand Central Towers in Canberra’s inner south, the Metropol residential development in the city centre, and three new five-star hotels, including one in the Parliamentary Triangle.
Australian Property Journal
