Chapter Two in move to expand land holdings

The Courier Mail | 25 NOVEMBER 2023

Brisbane residential developer Chapter Two has bolstered its Brisbane holdings with the purchase of 169 Roghan Rd, Taigum, for $7.33m.

Known for its focus on pursuing infill subdivisions in well-established areas, Chapter Two snapped up the 1.24ha site after a competitive expressions of interest campaign that drew 13 formal bids from a field of 100-plus inquiries.

Chapter Two directors Oliver Bagheri and Jon Quayle said it fleshed out a house-and-land development portfolio that stretched right across the city’s compass points, from McDowall and Bridgeman Downs in the north to Fig Tree Pocket in the west and Tingalpa in the east.

“Housing undersupply remains a critical issue across the southeast corner, which is something the region’s strong schedule of apartment and townhouse developments will help to address,” Mr Bagheri said.

“But there remains significant appetite for the classic Australian dream of building your own house on new land – at a price point that remains affordable amidst our escalating cost-of-living pressures.”

Mr Quayle said: “By taking an innovative approach to the basics of development, for example through the creation of smaller lot sizes, we’re able to satisfy this appetite.”

An example of this is Chapter Two’s nearby Cordyline at Taigum development, primed for construction in 2024, where blocks will average about the 300sq m mark.

The parcel at 169 Roghan Rd will be amalgamated with Chapter Two’s holding of the adjoining property at 159 Roghan Rd and is expected to yield a total of 37 blocks.

The sale – bringing to market a tightly held landholding among a row of five lots – was handled by JLL metropolitan and regional senior executives Jake Burrowes and Liam Petersen.

Mr Burrowes noted the continued elevation of the development site market.

“Developers are limited by the scarcity of suitability zoned landholdings,” he said.

“The feasibility of higher density remains unclear, as the detached housing model appears to be the only way in which the private market can build its way out of the current housing crisis.”

Mr Burrowes said the Taigum site offered a strategic combination of connectivity and potential.

“As one of the last remaining undeveloped parcels of land in the area, it is no surprise the site sparked considerable interest and attention from the market,” he said.

“Its key advantages include well-established transport corridors, with easy, immediate access to the Gateway Motorway to the north, Sandgate Rd to the east and development front to the west.

“Set within a fast-growing area, it presents an exciting opportunity for the developers to further contribute to the ongoing transformation of Taigum through much-need housing solutions.”

Mr Petersen said the strong sales figure spoke to the immunity development site markets had from macro-economic headwinds.

“Despite an unfavourable business environment, headlined by ‘higher for longer’ cash rate sentiment and escalating construction costs, demand for suitably zoned sites in South East Queensland remains substantial,” he said.

“This continues to result in benchmark results across the region.”