Long-established Sunshine Coast developer Henzell Property Group has finalised an unconditional contract for a major CBD landholding in central Caloundra for 17 million dollars plus GST, in a deal that reinforces market confidence in the city’s transformation.
The mixed-use development site, at 139 Bulcock Street and 70–76 Omrah Avenue, was completed via an Expressions of Interest campaign handled by Colliers. The site holds an existing development approval for a mixed-use project to 30 metres in height with indicative schemes showing potential for a 45-metre outcome, sweeping ocean and hinterland views and walkable access to the CBD and beaches.
Henzell Property Group Director, Mclean Henzell, said the transaction is both a strong result for Caloundra and a deliberate pivot point for the company.
“This is a great result for Caloundra’s property market, and it will be fantastic to see the revised development proposal get out of the ground,” Mr Henzell said.
“For Henzell Property Group, this sale marks a planned shift away from apartment development in the CBD over the next few years and a renewed focus on delivering high-quality townhouse and low-rise product for the Caloundra region.”
Four generations of the Henzell family have helped shape Caloundra since the 1930s, from early subdivisions through to the master-planned Pelican Waters community and its latest luxury apartment enclave, The Cove.
“Our role now is to reinvest in the next chapter of Pelican Waters and other townhouse-style projects where we see very strong owner-occupier demand from locals and downsizers in addition to families and professional couples,” Mr Henzell said.
“At the same time, we are pleased that an experienced builder-developer has secured this CBD site, with delivery capability to realise the next wave of apartment product that Caloundra clearly needs.”
Colliers Manager for Special Projects, Baydn Dodds, who managed the Expressions of Interest campaign from March 2025 with colleague Mark Wollin, said buyer enquiries exceeded activity recorded from one to two years ago.
“We engaged with more than 80 buyer groups during the campaign, and both enquiry volumes and the level of engagement were noticeably higher than for comparable Caloundra residential development sites marketed in the previous couple of years,” Mr Dodds said.
The majority of interest came from private developers based on the Sunshine Coast, across Southeast Queensland and from interstate groups in New South Wales and Victoria.
The successful buyer, a private builder-developer with extensive high-rise delivery experience, has already engaged local architecture firm OGE Group to refine a staged mixed-use apartment project focused on efficient building design and product types that match current market demand.
“The depth of buyer interest and the eventual unconditional contract at 17 million dollars further enforce the market confidence in Caloundra as an emerging Sunshine Coast destination undergoing major transformation and renewal,” Mr Dodds said.
Mr Dodds said these attributes contributed positively to buyer interest, while also needing to be weighed against current construction costs and achievable end prices.
“The approved scheme and the potential for a taller outcome were both useful in framing the site’s potential, but sophisticated developers are very alive to build cost pressures. The pricing outcome reflects a balance between view-driven apartment values, rising construction costs and realistic purchaser depth at the premium end,” he said.
“Residential developers focus very heavily on walkable amenities. Caloundra offers immediate access to café and dining options, medical and service use, and lifestyle drawcards such as Pumicestone Passage, Bulcock Beach and Kings Beach,” he said.
Mr Henzell said Henzell Property Group’s strategy is now to concentrate on projects where it can leverage decades of experience in creating liveable townhouse and low-rise communities that appeal to local owner-occupiers and downsizers.
“We are very optimistic about the Caloundra area’s long-term future. Our family has been part of its growth story for generations, and we intend to remain so,” he said.
“From our perspective, this outcome is a win for Caloundra, a win for future residents, and a logical evolution of Henzell Property Group’s development pipeline.”
