Body Corporate Reform Set to Unlock Development Opportunities

March 15 2023

Proposed changes to Queensland body corporate legislation could prevent rebel ‘lone wolf’ unit owners from holding their building hostage if they oppose plans to redevelop, demolish or sell.
Body Corporate Reform Set to Unlock Development Opportunities

The Queensland Government announced plans to lower the unanimous termination threshold for financially unviable strata schemes to 75%.

Proposed changes to body corporate legislation have the potential to unlock prime development opportunities in the Gold Coast’s most popular lifestyle locations.

The Queensland Government has announced plans to lower the unanimous termination threshold for financially unviable strata schemes to 75%.

Currently, a community titles scheme may be dissolved only if no owner objects or if the District Court determines that it is right and equitable to do so.

Once approved, the amendments will permit the termination of a scheme with the approval of 75% of lot owners, when the body corporate has concluded that it is more financially feasible for lot owners to terminate rather than maintain or remediate the scheme.

Kollosche Commercial sales agent Adam Grbcic says the change is an essential step in solving the state’s ongoing housing crisis by paving the way to redevelop unviable buildings into newer, fit-for-purpose accommodation in high amenity areas.

“There have been several instances over the past 12-24 months where one party has blocked the possibility of a successful amalgamation,” says Adam.

“In most of these cases, final lot owners have made unrealistic demands that are several times over fair market value.

“Once approved, this change will ultimately generate more housing and better amenities which leads to jobs and improved housing availability and affordability.”

Kollosche Commercial is currently marketing an amalgamated site at 3580 Main Beach Parade, Main Beach. The 751m2 corner site comprises an existing block of eight units with development approval for a 25-level building that will offer 22 full-floor apartments.

Sales agents Tony Grbcic and Adam Grbcic are also leading the campaign on a 2.644 hectare development site opportunity with wide frontage to the Nerang River at 9 Eden Court, Nerang. Currently improved with two houses, the site is being sold with approval to develop a total of 170 units over five buildings.

“Nerang is in the geographical centre of the Gold Coast and would provide much-needed entry-level apartments to what is an undersupplied market,” says Adam.

Investors Hot for Freehold Property

Over the past two weeks, Kollosche Commercial has sold three freehold investment properties which attracted a combined 23 registered bidders at the respective auctions.

44 Thomas Drive, Chevron Island sold for $2,150,000 reflecting 6.1% net return on passing rental

10 Davenport Street, Southport sold for $1,385,000 reflecting 5.5% net return on passing rental

13-17 Wharf Street, Murwillumbah sold for $4,500,000 reflecting 8.2% net return on passing net rental

All properties had a mix of short-term leases, buildings needing some capital works, and upcoming vacancies.

“This asset class has been in demand from investors looking for well-located freehold properties where they can value add or reposition the assets by either upgrading the buildings, creating a better tenancies mix, and/or renegotiating with tenants who are still on historical rentals and below market rates,” says Adam.

Commercial Leasing News

Kelly is fielding enquiry on two modern restaurant spaces in the popular dining precinct at Treetops Plaza in Burleigh Waters. Shop 21 comes fitted out with a wood-fired pizza oven and undercover alfresco area, while Shop 24 is partially fitted out with weatherproof dining.

Kollosche Commercial offers a bespoke style of service across sales, leasing and property management. If the team can assist you in any way, please do reach out.

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