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Credit crunch saves Brisbane

If all the projects for the Brisbane CBD went ahead this year, the city would be swamped with almost 2,000 new aprtments and thousands of metres of office space.
If all the projects proposed for the Brisbane CBD went ahead this year, the city would be swamped with almost 2000 new apartments and thousands of metres of office space. 

Fortunately, some say, the global financial crisis stepped in and the chance of the new year bringing new buildings to the skyline appears slim.

Development funding dried up and proposals for hundreds of apartments and new offices were buried.

Last year was more about what didn't get built rather than what did - big projects billed as changing the face of the city were canned or put on ice.

While their names were inspiring - Vision, Trilogy, Empire Square and French Quarter - it wasn't enough to help them rise above the world's financial meltdown.

And, according to industry analysts, the development freeze in Brisbane won't thaw out any time soon.

Colliers International research analyst Lachlan Walker said there were nine residential projects within the Brisbane CBD which were proposed for development, had a development application or had been approved. Eight of these had been deferred pending market conditions.

Mr Walker said there were many other sites which in a strong market would be perfect for redevelopment, such as the recently sold 96 Albert St.

"When the market turns and we enter the next cycle, these potential buildings will be developed into high-density residential communities," he said.

Pat George, of Colliers International, reckons there is plenty of potential in the city, but an inability to gain funding to build will mean little activity this year.

And even when it does start to come back, he sees a shift away from looking at sites to develop office towers back towards residential use.

According to Stephen Conry of Jones Lang LaSalle, it will be some years before we see the Brisbane skyline covered in cranes again and, to him, that is not necessarily a bad thing.

"I think the Brisbane market was actually saved by the global financial crisis," he said. "There was the prospect of a massive over-supply."

While not everything proposed gets built, if a large percentage had, it could have proved disastrous for the city.

Those which will be delivered this year are an office tower under development at 111 Eagle St and another about to get under way at 145 Ann St.

"I think it will be several years before we see any other major office developments," Mr Conry said.

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