Tennis Anyone?

Mirvac's Tennyson Reach project sold extremely well to start, but sales appear to have stalled. There are six apartment buildings planned for the site, at Tennyson in Brisbane on the same site as the Queensland Tennis Centre. Although more than 65,000 tennis spectators attended the recent tournament last week, no apartments were sold during the event.

The first two apartment buildings on the site, containing 115 apartments released in June 2007, sold out in three days. Prices ranged from $943,000 to $4.9M. These two buildings should be read for occupancy in the next 5 months.

The third building, currently for sale off the plan, has 92 apartments. Released in December 2007, 70 apartments still remain for sale. Originally marketed with a minimum price of $805,000, the minimum advertised price has now been reduced to $698,000.

According to the AFR, Mirvac plans to release building 4 at the end of 2009.

There are more than 10 resales listed on RealEstate.com.au. These include:

• 3 bed on 6th floor, listed at $1,820,000 (155sqm of internal living plus 15sqm of balcony)
• 3 bed on 5th floor, listed at $1,795,000 (174sqm of internal living plus 21sqm of balcony)
• 3 bed on 4th floor, listed at $1,395,000 (169sqm of internal living plus 21sqm of balcony)
• 3 bed on 2nd floor (so restricted river views I suspect), listed at $1,515,000 (162sqm of internal living plus 15sqm of balcony)

My guess is that these prices will drop, as a number of owners will not want to or can't settle, and rents for these apartments will be luck to be more than $800 a week.