The Australia and New Zealand Banking Group has thrown its support behind Brisbane’s ailing residential market, agreeing to found the $130 million first stage of Queensland-based developer Pradella’s West end residential development.

Developers across the country have struggled to secure funding for projects as international lenders withdraw from the market, with Queensland-based projects severely hurt by Suncorp’s decision to call in its $12 billion commercial loan book.The ANZ’s Institutional Property Group is funding the project’s first stage, with state director Matt Lawrence noting a high number of good development proposals being submitted for consideration.

“We are open for business for good projects such as this, where the developer is experienced, well structured and capitalized and has a consistent record of project delivery,” he said.

Pradella’s two-stage Waters Edge project, due for completion in 2012, is part of a $500 million 230 apartment redevelopment of a three-hectare site.

The group’s 50 per cent sales rate off the plan coincides with an overall rise in Brisbane apartment sales, according to the latest report.

The Colliers Brisbane Apartment Report, released last week for the September quarter, shows new apartment sales increased 31 per cent from the June quarter.

Almost 280 new units were sold, according to report author Colliers International research analyst Lachlan Walker, with more than $170 million in sales recorded for the quarter.

Mr Walker said it was unlikely the apartment market would get worse; however, he said it was too early to say whether a full recovery was under way.

He said the market was still price sensitive, with projects offering more affordable products securing the most sales.

Devine’s joint-venture development with Leighton Properties, Hamilton Harbour, is securing significant off-the-plan sales, with more than 80 per cent in stage one secured and 70 reservations for apartments, with a total value of more than $36 million, taken within 24 hours of stage two being released last month. Despite the significant sales figures, funding has not been secured.