Azure Doubles Down on Townhouse Strategy as Sales Target Hits $1.5 Billion

Azure is set to expand its development pipeline in southeast Queensland, targeting the growing affordable housing sector with the recent acquisition of a 4.5ha site at Rothwell in Brisbane's north. The company, currently engaged in three projects in Rothwell, plans to transform the newly acquired site into a master-planned community featuring 230 townhouses. This move aligns with Azure's strategy to address demand across the market spectrum, catering to both downsizers seeking premium inner-city properties and those searching for more affordable housing in key fringe growth precincts.

The Rothwell acquisition elevates Azure's active portfolio to over $500 million, including high-end developments such as One Earle Lane at Toowong and One Five Six by Azure at New Farm. The latter set an inner-city price record with an $11.4 million penthouse sale in 2022. Azure's Acquisition Director, Chris Schroor, emphasizes the company's bullish outlook on townhouse developments, especially to meet the growing demand for affordable housing.

"We're doubling down on our strategy through this acquisition," said Schroor. Azure has identified the need to move further from the Brisbane metropolitan area to meet affordability criteria successfully. Projects priced below $800,000 are experiencing strong demand. The Rothwell project's plans align with Azure's Munro development in Bundamba, offering 100 terrace homes with a focus on affordability.

Schroor highlights the importance of securing sites like Rothwell to deliver projects of scale, ensuring the company can meet prevailing market price points effectively. Azure's existing projects in Ipswich, including Seasons by Azure in Brookwater and a proposed 129-lot project at Flinders View, complement its Rothwell initiative.

The Rothwell development is poised to become Azure's flagship project in the area, featuring a mix of three and four-bedroom terrace homes with a multi-purpose room. Azure is also considering introducing a two-bedroom product to enhance project diversity. The development will prioritize extensive communal amenities and significant landscaping, in line with Azure's brand identity.

Despite challenges in the construction sector, Azure, operating as an integrated builder-developer, remains confident in delivering its planned project schedule. Schroor notes that the current market conditions play to Azure's strengths, and the company is actively assessing new opportunities. With a strategic plan to achieve $1.5 billion in sales over the next five years, Azure is positioned for further growth and success in the dynamic southeast Queensland market.