Saturday, September 8, 2007

Skyline

Skyline apartments in Brisbane are nearing completion. Settlement is planned for late October or November.

Colliers PRD reports that as at the end of June 2007 quarter, 33 of the 192 apartments remain for sale.

I was told that the developer had a number of 3 bedroom apartments available for sale. All 2 bedroom apartments have been sold by the developer.

I was also told that many people purchased off the plan with the intent of reselling around settlement.

I had a tour through the building, and was mostly disappointed. I was glad that I didn't buy any apartments.

Some comments:
  • J type - 78 sqm internal, 98 sqm total. This was sold as a two bedroom, but the second bedroom is fully internal, and has "windows" looking into the kitchen. It is really a one bed plus study. It has river views between Admiralty Quays and Admiralty One. It was sold off the plan in the high $500K. There have been resales at less than $600,000, and there are many of these apartments on the market for resale. Overall, these are small, darkish apartments, and in my opinion are not very nice. My opinion is that these apartments are not worth more than $500,000.
  • I type - 87 sqm internal, 102 sqm total. Two bed, two baths, no walk-in-robe. This apartment is a triangle in shape. You enter into the kitchen, which has a strange shape, and the island bench looks at a blank wall. The kitchen is around a corner, so to speak, and is dark. The dining area is large, and the living room has limited views between Admiralty Quays and Admiralty One. Both bedrooms are at the front, with views. This could have been a good apartment, apart from the overall shape and kitchen -- which does not work. There are a number of these apartments for resale between $650,000 and $680,000. My opinion is that these apartments are not worth more than $600,000.
  • G2 type - 117 sqm internal, 142 sqm in total. Three bed, two baths. This apartment has a large feeling. There is a river view from the balcony and sideways from the living room. The living/dining/kitchen have a really nice vista down Howard Street to the city. The bedrooms are at the back of the building (Arch Lane). For the moment, they have a western vista across the northern end of the downtown. This view will soon disappear with Macrossan Apartments are built right next door, probably turning these nice apartments into dark apartments. The main bedroom has an open bathroom, so from the bed you have a view of two vanity basins. The built in wardrobes are in the bathroom. So what could have been a nice apartment has a strange main bedroom/ensuite design and will soon the bedrooms will be built out by Macrossan Apartments. The developer has a number of these available from $720,000 to $885,000, and is prepare to discount them to clear. There are resales starting at $690,000. On a price per sqm basis, these are good value. But long term, it will not be good. So I would value these at $650,000.
  • K type - 101 sqm internal, 120 sqm in total. This is a small three bedroom at the front on the north-eastern side. When you walk in the door, and from the back of the apartment -- wow! A great river view. But as you move forward, you notice that this apartment is really behind Admiralty Quays. The main bedroom, at the front, basically looks into the back of Admiralty Quays. The living room is set up so that from your couch, when looking at the TV, your view out the window is of Admiralty Quays and not the river. The main ensuite has the same flaws as the G2 type. The second and third bedrooms look at the back of Devine's River Place. This is a small 3 bedroom, that has little privacy and a bad feeling due to Admiralty Quays. The developer has stock left at $835,000 to $855,000. There are resales available for $800,000 and less. My view is that these apartments are worth about $750,000.
  • On the high floors are some magnificent three beds plus media room. They combine, in effect, the I and J types. All three bedrooms are at the front, and they are high enough to look over the Admiralty buildings. These are magnificent apartments. Resales at about level 30 around $1,500,000.
The onsite rental people give this information regarding rentals:

1BRM
Unfurnished: $360.00
Furnished: $420.00

2BMR
Unfurnished: $550.00
Furnished: $650.00

3BMR
Unfurnished: $750.00
Furnished: $950.00

3BMR+MEDIA
Unfurnished: $950.00
Furnished: $1100.00
Other comments. The pool is very small, and closed in by Admiralty Quays and Skyline. The tennis court looks fine, but has no lights and cannot be used at night -- and so will not be useful for most city workers. The quality of finishes is good, but becoming standard. Nothing that you would not expect from a new city apartment building. There will be two retail stores on the ground floor.

Overall, my opinion is that this is a B grade location. It will be no different to Aurora Towers -- river views, one block back. It is not a prime position, and is surrounded on one side by buildings and soon will be surrounded on the other side. There appear to be many speculators who have bought of the plan. It suspect that they will get burnt. Owner-occupiers will be disappointed with the floor plans, and anyone below level 30 will be disappointed with the views. It is, in my opinion, misleading to call this building riverfront, and to say that it is "the only Brisbane high-rise development to boast river vistas from every single apartment" is clearly misleading, as the H and H1 apartments on the lower floors have only a tiny glimpse of the river between River Place and its car park.

2 comments:

Kjetil said...

Thank you very much for writing this blog, it gives insight to a lot of different apartments available in Brisbane.

Is $360 really what you need to pay nowadays to get an apartment in the CBD? I currently live on the 41st floor of Charlotte Towers, and I only pay $320 for a one bedroom apartment.

Unfortunately I can't live here much longer, as I'm going overseas, and not returning until mid-February.

Do you know of any apartment buildings in the CBD that should offer $320-ish rental for 1 bedroom apartments? Anything interesting in popping up in January/February?

Cheers!

Brisbane Apartment said...

I think that the Skyline rental price list is a little on the high side. You can do better. However, by the time you return next year, you will probably find that it will be hard to get a one bedroom in a decent building in CBD Brisbane for less than $350 per week.