Chapel Hill on its way to prestige suburb status after $5.9 million land sale

House prices in Chapel Hill are likely to rise substantially over the next couple of years following a significant land sale in one of its most prestigious streets.

Leading property developer Sunland Group recently purchased a prime 2.29-hectare (5.65-acre) site on Kirkdale Road for $5.9 million and have earmarked it for a boutique residential development of three and four-bedroom houses, with an estimated end value of $30 million.

It’s a significant development for Chapel Hill, a leafy enclave that lies seven kilometres west of the CBD with a median house price of $790,000 – and according to the McGrath Paddington agent who brokered the deal, Reuben Packer-Hill, it’s a sign of things to come.

“The majority of people who buy and live in and around this area are white collar professionals like doctors and lawyers, who love the privacy, the large blocks and leafy streets, yet still want to be close to the CBD,” Mr Packer-Hill says.

“In the last 12 months I’ve seen confidence, at the top end of the market especially, improve dramatically and we’re seeing new benchmarks set constantly.

“This is an area that’s extremely sought after and I would expect this new development will get a lot of attention. Morever, I would expect that this development, once the houses are sold, will lift the value of houses in Chapel Hill by up to 5 per cent straight away … Sunland is well known for its beautiful developments that are in keeping with an area’s feel.”

Recently, 68 Tristiana Road, Chapel Hill, a five-bedroom home set on a 2003-square-metre block, sold for $1.95 million prior to auction.

Across the road at 71 Tristiana Road, a six-bedroom home spanning nearly an acre under roof has just been listed and is expected to break the suburb house price record of $3.6 million. The replacement value of the house alone is $4.3 million and it features a guest apartment, cinema, sandstone foyer and lavish-sized bedrooms.

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David McMahon, Sunland’s national director of communities, says he expects the new development will appeal mainly to young families and genuine downsizers.

“Those people who have lived in the area for a long time and don’t want to keep maintaining their big blocks and houses but want to stay part of this environment,” Mr McMahon says.

“This will also appeal to young families who are trying to break into the area.”

Mr Packer-Hill says it’s these two segments of the market that are most active right now. “The biggest driving forces in Chapel Hill right now are downsizers moving out of the family homes they’ve lived in for 30 years and young families moving in, wanting a piece of the area,” he says.

Bordered by two large community parklands and intersected by a natural waterway, almost one hectare of the Sunland development will be dedicated to open green space, encompassing substantial revegetation along the brook’s edge.

The houses will be freestanding but set on a community title. Construction is anticipated to commence during the first half of 2018, with completion in late 2019.

Sunland’s other developments in Brisbane include the luxury Abian residential tower in the Brisbane CBD, which commenced settlements in June, and Shea Residences in St Lucia, which is scheduled for completion early next year.