Flight to quality: premium property attracts premium returns

In recent years, inner Brisbane’s new apartment market was flooded with one and two-bedroom product primarily targeted to the investor market. Typically these developments, while in good locations, lacked a range of considerations that play a vital role in strengthening living appeal for the end-users, and therefore optimising investment returns.

While central to the decision-making process, location is not the only factor buyers or tenants look for in a potential apartment purchase or rental. Other factors such as design, functionality, finish and amenity all go a long way to increase perceived value by the end-user. This heightened living experience, in turn, will translate into a higher resale price, better quality tenants, and above market rents.

When it comes to investing in property, ask yourself a simple question – “Would I live there?”.

Mosaic always designs developments and apartments that appeal to the end-user, whether it be an owner-occupier or tenant. How do we do this?

1. Identifying locations that tick all the boxes

Mosaic has a highly disciplined, systematic approach to site acquisition, based on the fundamentals of successful project delivery over many years and through multiple cycles.

Mosaic’s stringent selection criteria ensure our sites are characterised by specific attributes that drive strong market demand.  These are considered at both macro and micro levels and include:

• An in-demand location with sustained population growth;
• Proximity to transport and infrastructure investment;
• Proximity to employment nodes, schools and universities;
• Proximity to lifestyle amenity;
• Appealing orientation and outlook;
• A propensity to realise value uplift from proposed infrastructure;
• Controlled density; and
• Proximity to green space.

2. Considerate sizing and functionality

Mosaic always designs with the owner-occupier in mind. Our apartments are larger than the typical market offering and include a variety of options to suit different household types, life stages, and budgets.

Mosaic’s apartments all typically feature:

• Enough space for a minimum of two couches in the living room;
• Separate living and dining zones;
• High ceilings and large windows/doors to maximise light and fresh air;
• Sufficient space in bedrooms to allow for at least a queen bed and bedside tables;
• Additional storage; and
• Generous entertainer balconies that function as a genuine outdoor living area, with no airconditioning condenser unit taking up space.

3. Premium quality craftsmanship and finish

Mosaic prides itself on attention to detail and are passionate about the quality of finish in our developments. We don’t only want a home to look good; we want it to feel good.  

Simple design elements vastly impact a person’s ability to live comfortably in an apartment, and also significantly improve the likelihood that your investment will attract a higher purchase price or attract first-class and improved rental returns.

Typical design elements of Mosaic apartments include:

• High-quality flooring, including the use of sustainable and durable timber, large-format tiles to wet areas, and luxury carpet with soft underlays to bedrooms;
• Large, double-glazed and operable windows and doors, allowing for maximum natural light and fresh air, while minimising heat and noise transfer;
• Recessed tracks to large balconies, enhancing the indoor-outdoor flow;
• Custom kitchens with bespoke material and design elements;
• Ceiling fans to all bedrooms;
• Ducted and zoned air-conditioning; and
• Blinds and/or recessed curtain tracks.

4. Resident amenity

There is no denying the continuing trend towards low-maintenance apartment living. One of its biggest appeals is having access to the benefits of a home, such as green space or a pool, but without the maintenance.

Mosaic’s developments feature an elevated level of amenity, relative to scale, such as:

• A ground-floor food and beverage offering;
• Resort-style pool;
• Lushly landscaped green-zones;
• Health and wellness centre, including fully equipped gymnasiums, spa, steam room, sauna and yoga zone;
• Executive lounge;
• Wine cellar;
• Library;
• Private dining;
• Media room;
• Outdoor shower and pet wash; and
• Concierge services.

All of these considerations improve an apartment’s likelihood to attract and retain quality tenants, generate improved rental returns and ultimately resell to the local market for greater value in the future.

The following case studies highlighting the direct link between product quality and rental returns.

Amparo by Mosaic

Upon completion in June of this year, Amparo by Mosaic, a boutique collection of just 16 residences located in the bluechip suburb of Taringa, experienced strong rental demand, realising weekly rents between $890 to $1,025, far exceeding expectations in a soft rental market. All rents were achieved at full asking price within the first week of viewings and included two leases to highly affluent executives at 24-months and another at 48-months.

At a median rental price of $870 per week, Amparo commands a $350 or 58% premium over other 3-bed apartment rentals in the broader Taringa market. Such a result is made even more remarkable given they were achieved amid the global COVID-19 pandemic.

Median 3 bedroom apartment weekly rent

(Source: Mosaic, RTA)

These outstanding results can be attributed to a number of considerations:

• A prime location in one of Brisbane’s most prestigious suburbs;
• An elevated position offering spectacular city, suburban and hinterland views;
• Average apartment sizing of 157sqm;
• Functional floorplans allowing for separate living and dining zones, as well as multi-purpose rooms and studies;
• Non-standard finishes such as a 3m long island kitchen bench with custom timber leg detail, custom oversized cabinetry, 2.7m high ceilings;
• Double glazed doors and windows;
• DecoWood cladding to the balcony soffit;
• Spacious master bedrooms that feature walk-in robes, heated ensuite flooring, and a feature VJ panelling wall;
• Access to an exclusive 100sqm rooftop with pool, sun deck, and entertaining area.

Vive by Mosaic

Completed in mid-2019, Vive by Mosaic in Indooroopilly, commands a 36% premium for 3-bed apartments, and 37% for 2-bedroom.

This success can be directly attributed to heightened end-user appeal due to:

• Central location right on parkland, minutes to education, employment, lifestyle amenity, and healthcare;
• Large, flowing layouts with separated living zones;
• Premium finishes such as engineered oak timber flooring, 2.7m high ceilings, and ducted air-conditioning; 
• Generous balconies with appealing outlooks and without space-consuming air conditioning condenser units; and
• A rooftop recreation space.

Drift by Mosaic

On the Sunshine Coast, a 3-bedroom oceanfront apartment at Drift by Mosaic in Coolum Beach recently recorded a $950/week lease over a five-year term.  This is a staggering result, given the median rental price for 3-bedrooms in the suburb currently sits at an average of $536/week.

Completed in late 2019, there is no denying Drift’s magnificent, direct beachfront location attributed to its success, however, the project also offers a range of value-added benefits for residents, including:

• A clever design that maximises ocean views for most apartments;
• An elevated level of finishes including stylish, woodgrain timber-look tiles or luxurious engineered oak, 20mm stone benchtops, gas cooktops, and feature VJ walls;
• Spacious balconies accounting for 15% of total living space;
• A unique, private outdoor ‘beach room’ to select apartments, containing a shower to rinse off sand and storage space;
• A range of exclusive resident amenity including an outdoor barbecue and entertainment area; a show-stopping centrepiece pool finished in a spectacular ‘Green Sakabumi’ natural quartzite stone and with a unique “viewing window” creating a unique water feature; the ‘Green Room’, featuring lounges, a kitchenette, TV and table tennis; and a wine cellar.

Designed for Life

Each Mosaic home is approached with the singular desire to create iconic, visually captivating, and exceptionally finished spaces in which people simply love to live. We pay attention to the small details – and we keep an eye on the big picture.

Our signature end-to-end approach encompasses all aspects of research, design and development. This allows us to consistently deliver award-winning properties that set new benchmarks in residential living, and positions buyers to potentially achieve above-market rental returns and significant value uplift.

We retain the management and caretaking of our properties post-completion, so you can rest assured that your asset is beautifully cared for and maintained.

View Mosaic’s projects here.