- Investors are re-entering the Brisbane property market
- There are bargains in Brisbane property
- Rents are good, and increasing
- Interest rates are low, and decreasing
- Investors are getting more than 5% gross returns on recently purchased Brisbane apartments
Friday, November 28, 2008
New website for Hamilton Harbour residential building, called Harbour One. It is behind the Bretts Wharf development, on Kingsford Smith Drive.
"A 19-storey tower and 22-storey tower will house a total of 416 apartments, and the developers have already committed to selling a percentage of residences in the low-to-medium price range.
The budget apartments will be "space-efficient" while other one-bedroom offerings will come without a car space.
"This will enable these units to be offered for sale at a considerably lesser price to those who would otherwise be unable to afford housing in such a well-serviced location," the project plan details."
"The apartment market on the Gold Coast is more problematic because conditions there are still very tight and after Sydney, the Gold Coast is more dependent than any other city on the apartment market," he said. "Investors have been fleeing that market and combined with a decrease in buyer confidence, apartment prices may continue to come down."
Mr Anderson predicts unit prices will stabilise in the first half of 2009 before again beginning to rise.
"We are expecting to see growth again in the apartment market but it won't happen until 2010, it will take longer than the housing market, and probably not as quickly as in Brisbane," he said. "There could be a really strong rebound in that market in the first half of 2010 but it will be coming off a fairly low base."Source: GoldCoast.com.au website
See Courier Mail and Skyscraper Life
Monday, November 24, 2008
Riverbend Tower was supposed to be an all rental building. However, it appears that the developer has now decided to sell some of the apartments.
- 2 bed, 2 bath, 6th floor, 95 sqm internal, 31 sqm balcony, 126 sqm total, 1 carpark = $600,000
- 3 bed, 2 bath, 5th floor, 125 sqm internal, 36 sqm balcont, 161 sqm total, 2 carparks = $735,000
Saturday, November 22, 2008
"Matusik notes Brisbane respondents are more optimistic than property professionals on the Gold and Sunshine coasts. In turn, Gold Coasters are more bullish about a recovery in 2009 than those on the Sunshine Coast, where about half of the respondents think sales will continue to fall in the new year. Matusik says about 30 per cent of those surveyed think an inner-city pad in Brisbane will be the best residential investment."
The Australian, 22 November 2008
"Paul Braddick, head of property and financial system research at the ANZ Banking Group, says: “There is certainly a problem with sentiment and with construction finance at the moment. But for property investors I would instead focus on rising rents, the lower interest rate environment, the subsequent improvement in affordability and the increase in the first-home buyer’s grants. These all point to a brighter future for residential property, even if the next six to 12 months prove slow.”
I believe a halt in the construction of new apartment towers is a sign that it’s time for the wise investor to start researching the market and getting to know it thoroughly. First-class investment properties are available at a fair price, but there’s only a minuscule chance they will be in multi-level city buildings."
Smart Company, 20 November 2008
"If you want a swimming pool now, buy a unit in Queen Street. If you live in the outer suburbs, houses don't often have room for swimming pools," Professor Hall said.
Courier Mail, 17 November 2008
"Brisbane's CBD recorded 17 new apartment sales during the quarter, from a possible 178 units on the market.
"In terms of rental vacancies for residential apartments, inner-city Brisbane retained the lowest vacancy rate of only 1.4 per cent," Mr Walker said. "This suggests that rental rates will continue to rise as demand for accommodation increases and rental stock supply dwindles."Brisbane Times, 19 November 2008
Friday, November 14, 2008
I have previously written about Pradella's development "Parklands at Sherwood" which is high on a hilltop overlooking parks and Oxley Creek, with city views in the distance. See prior comment.
I visited again this week. Apartment Building 1 (AP1, marketed as Jacaranda) is almost complete. The bottom floor is at lockup stage, and the top floor apartments are being tiled. Looks like about 2 to 3 months work until completion. Apartment Building 2 (AP2, marketed as Brookline) now has a roof. The bottom floor has internal walls, the top floor has frames for internal walls. Probably 6 months more work till completion. There are also terrace house and detached houses.
I am very impressed with the apartments. Even the smaller two bedroom apartments seem large. Maybe this is because at least half the apartments have great park views. The design and outlook is good. I am less impressed by the detached houses -- they are in the worst location in the development, and the rooms seem smaller than I would have liked.
There are some resales already listed:
"Gabba Central's 270 luxury apartments, retail space and 300 underground carparks were slow to sell and value plunged as a result of Brisbane's stagnant property market and the global credit crunch."
"The Brisbane property is now in the hands of financiers UCIS, which is responsible for selling the remaining space at Gabba Central for market rate in order to recover the $31 million.
If the sales fail to cover the total debt, PKW is liable to hand over up to $10 million in cash or assets. Potentially this will involve Taranaki land and buildings held by the dairy giant."
My view was that this was a poor property.
Sunday, November 9, 2008
He is willing to bet that Brisbane people will be willing to pay about $500,000 for an entry-level one-bedroom apartment measuring less than than 50sq m. Big enough to swing a cat - just. He's willing to bet that they will want to live right next to the truck-laden Logan Rd, over a train line and right next to a busway in a suburb that looks like it has had too much sun and has never been known for urban chic. He's also betting that the housing affordability dilemma will mean people will question if they can afford a home and a car.But just to show how strongly he feels about Buranda, the man who developed the oh-so-swish Emporium development in Fortitude Valley says he is less confident about his separate plans for 56 luxury apartments at South Bank projected to cost between $2 million and $10 million each. "I would not like to make that call right now," he said...."
See Courier Mail
Friday, November 7, 2008
The Council has issued a plan for urban renewal in the wharf area under the Story Bridge. It looks like an excellent plan, and my guess is that it will increase the value of the apartments in the Admiralty precinct. It is called the Howard Smith Wharves redevelopment.
Monday, November 3, 2008
"Pradella have adjusted the pricing of some of the apartments in ‘Reach’ at Waters Edge. We have now sold 50 apartments, but we need to keep moving toward our pre sales targets, hence the pricing adjustments. The 1 beds have not been adjusted, but some of the 2 bed plus 1 bath, and 2 bed plus 2 bath have, and there are some very good buys to be had."
My guess is that no construction will commence until there are about 100 pre-sales.
With Empire Square and Vision both gone, it seems that the only two large inner city high rise on the horizon are Trilogy Tower and Meriton's Soleil. Both are similar heights, in a similar location, and are apartments without balconies. Both will have hotel / serviced apartments. Both will complete about the same time. I hear that some people who were initially interested in Trilogy are now interested in Soleil. They are different products. Soleil is cheaper on a price per sqm basis, and probably a different level of quality.
Trilogy (Mirvac managed hotel apartments) (residential apartments not yet on sale so not part of this comparision)
- 16 apartments per floor, over 12 levels. 192 apartments in total
- 3 elevators
- 1 and 2 bedroom configurations
- sold furnished, if one signs up with Mirvac
- 6% rental guarantee
- on sale for more than 3 months
- about 60 to 70 reported as sold
- one bedroom size - 53 to 59 sqm, most without car parking
- two bedroom size - 70 to 89 sqm, with 1 car park
Level 35, East view - $530,000
Level 41, East view - $555,000
Level 41, River view - $570,000
Level 35, river view - $890,000
Level 37, corner apartment, NE river view - $945,000
Level 37, corner apartment, SE river view - $940,000
Soleil - residential apartments
- 5 to 7 apartments per floor. 188 apartments on sale, with others being held by developer
- 3 elevators
- 1, 2 and 3 bedroom configurations
- sold unfurnished
- rental guarantee
- on sale for about 10 days
- less than 10 sold
- one bedroom size - 46 to 62 sqm, without car parking
- two bedroom size - 71 to 83 sqm, with 1 car park
Level 31, city view over Adelaide Street: $509,000
Level 40, views over All Hallows: $615,000
Level 42, views towards The Valley: $610,000
Level 42: views of River Place, and maybe Storey Bridge: $672,000
Level 47: views over Skyline towards the river: $755,000
"PLANS for Brisbane's tallest tower appear to be crumbling with builders told [Friday] the contract for works on the Vision tower had been suspended. Builder Grocon told workers at the Mary St site yesterday that the main works contract had been suspended by the developer, Austcorp. Last week an Austcorp spokes-man said the $950 million, 287m Vision was a live project and it would be Built. Austcorp head Trevor Chappell was overseas yesterday and un-able to be contacted to confirm the suspension" Source: Courier Mail.
"A company spokesman insisted Vision would be built when market conditions improved, but industry sources have told brisbanetimes.com.au completion is unlikely. One senior development figure said the project's future had been uncertain for some time and claimed there had long been doubt surrounding Austcorp's ability to secure credit.While the developer continued to tout apartment sales figures up until last month, it is understood several multimillion dollar conditional contracts had collapsed."
"RECEIVERS & MANAGERS APPOINTED IN LIQUIDATION. BRAND NEW APARTMENTS. INVEST TODAY FROM JUST $295,000 IN THE HEART OF BRISBANE, AUSTRALIAS MOST EXCITING AND LIVEABLE CITY. PLUS A RENTAL GUARANTEE OF 6.5% GROSS (avg) MANGEMENTS FEES INCLUDED."It appears that a Gold Coast company has been appointed to off load what remains for sale in M on Mary serviced (non residential) apartments. This building has 1 bedroom apartments, with some 3 bedroom apartments on higher floors. About 400 apartments in total, with over 100 reported as unsold. A very poor pool area. Most don't have car parks. Small apartments. Avoid!
Saturday, November 1, 2008
|Community Title Scheme Name||Number of Units||Number of Owner-occupied Units||Percentage Owner Occupied|
|ADMIRALTY TOWERS II||193||71||37%|
|CUTTERS LANDING - CUNNINGHAM||33||14||42%|
|CUTTERS LANDING - FLINDERS||84||53||63%|
|PARK AVENUE AT SOUTH BANK||56||32||57%|
|QUAY WEST BRISBANE||136||28||21%|
|QUEEN STREET 570||127||9||7%|
|RIPARIAN PLAZA APARTMENTS||48||23||48%|
|RIVER PLACE APARTMENTS||314||76||24%|
|THE AURORA TOWER||472||128||27%|
Across the 12 months to August 2008, Brisbane’s median house value has increased by $21,915 although, the level of vendor discounting has also increased by 3.64%. Given this, vendors who sold in August 2008 would be $6,328 better off than if they sold at the same time last year. Brisbane’s median unit value rose by $11,966 across the year to August 2008, meanwhile an increase in the level of vendor discounting of 3.09% has meant that a Brisbane vendor selling at the median unit value would have been $2,410 better off selling this year as opposed to selling at the median value last year"