Completed planning works for a mixed-use subdivision in high-growth Frankton provide developers, land bankers and investors with a project primed to take advantage of resilient housing demand and a scarcity of appropriately zoned landholdings.
Two adjacent bare land sites primed for development in the thriving Frankton area have been placed on the market for sale, featuring existing planning and consent permissions.
The sites at Lot 2 O’Meara and Lot 3 Hall Street total 23.22ha (more or less) and are offered for sale by tender process, closing at 4:00 pm on Thursday, 16th November 2023 (unless sold prior).
Bayleys chairman John Bayley is marketing the properties with Mark Martin and Sheryl Williams of Bayleys Queenstown.
Mr Bayley says both Frankton and the wider Queenstown region have experienced robust population growth and steady asset appreciation in recent years, bucking the national trend whilst enhancing feasibility for development projects.
“We’ve seen double-digit population growth across the region for the last 15 years, which has kept demand for homes high, and median sale values steady at around 5.60 percent growth year-on-year.
“An acute shortage of appropriately zoned development sites continues to constrain housing development locally, thus creating competition for viable land sites and finished housing products.
“Our seller has undertaken a proposed subdivision plan, which provides purchasers with the flexibility to acquire one or several allotments, offering developers and land bankers a rare opportunity to acquire prime and well-zoned real estate in one of the country’s most desirable locations,” he says.
The proposed subdivision scheme plan enables the formation of six smaller allotments ranging from 0.25ha to 0.47ha (more or less).
The properties are zoned Frankton Flats Special Zone B, providing for the efficient use of one of the last land areas suitable for development within the Urban Growth Boundary.
Bayleys Queenstown salesperson Mark Martin says the zoning enables a built environment at densities not currently achieved in the District, involving a significant mix of activities.
“The vendor has secured a pre-existing consent for an impressive terraced housing project, including 225 residences with eight architectural options.
“They have successfully completed a portion of this project, serving as a valuable precedent for success in alignment with the thriving growth opportunities in Frankton.
“Recent project development includes a successful modification to the original consent which outlines a comprehensive mixed-use plan, including 82 apartments, 18 terraced houses and a central courtyard, an underground car parking facility, and various ground level amenities, including a café.”
Mr Martin says the existing resource consent permissions and conditions enable a developer to mitigate planning risk and execute the impressive scheme plan to maximum effect in a market more amenable to feasibility.
“Labour shortages have eased, and construction costs have stopped rising. At the same time, there is greater certainty across the economy regarding the government and interest rate path.
“With civil services in place and the opportunity to acquire the sites together or separately, the proposition presents a compelling development opportunity, underpinned by Frankton’s future growth profile,” he says.
Surrounded by New Zealand’s iconic Remarkables mountain range and ski field on the northeastern shores of Lake Wakatipu, the subject properties provide 360-degree views of the Crown Range, Coronet Peak, and Walter Peak.
Bayleys salesperson Sheryl Williams says the location features superb development attributes, being just a 15 minute drive from central Queenstown.
“Frankton is exceptionally well-serviced by two new commercial hubs – the Remarkables Park Town Centre and Five Mile Centre. Ongoing investment into the area from both the private and public sectors reinforces confidence in the longevity and growth potential of the immediate area.
“Significant works are underway across the region to provide new housing, critical infrastructure, road upgrades, and research and innovation facilities. This will see Queenstown continue to thrive as New Zealand’s most vibrant and exciting southern hub.
“The subject property presents a shovel-ready opportunity for investors, land bankers and developers to take advantage of the planning works already completed, walking right into a project enhanced by strong growth fundamentals, enduring demand, and second-to-none geographical features in one of New Zealand’s most desirable destinations,” she says.