Warning from NZ

"Sunshine Coast Remax real estate agent Michael Knights said the local housing market had dropped between 10% and 20% in the last 12 months, and the apartment market had been the hardest hit.

``A lot of the apartments that have been bought off the plans say 18 months to two years ago are selling for $100,000 to $200,000 less than people paid for them because there's just an oversupply."

See www.stuff.co.nz/4861361a20975.html

Water Leak in Skyline Apartments

I have never been a fan of Skyline apartments in Brisbane. They were marketed as river front, when they are not. The apartments are generally small and poky. The quality of the fitout was average. The Courier Mail reports on Saturday that there was a major water leak in the building, impacting a number of apartments, and doing a huge amount of damage. "Apparently about 48 units in the Watpac-built complex were affected, with the builder blaming the subcontractor and so forth..." One resident on level 23 reports more than $100,000 of damage to her apartment. Does not bode well for this building.

Roma Street Parklands Sale

A recent Brisbane apartment auction:

7041/7 Parkland Boulevard, Brisbane
3 bedrooms, 2 bathrooms, 2 car parks
In 2006, it was listed for sale for $685,000.
Sold at auction on 21 February 2009 for $730,000

Disputes over Body Corporate Fees

Many buildings are changing the way body corporate fees are allocated amougst unit owners, causing disputes when penthouse apartments end up with lower fees.

See Courier Mail

Oaks Ok

"Mr Pointon said occupancy rates in Oaks's regional properties during January were 80-90 per cent and while its Sydney properties recorded 90 per cent, Melbourne 75 per cent, Adelaide 85 per cent, Brisbane 70 per cent and Auckland 77 per cent."

Source: The Australian

Low Demand for Prestige Homes

"The old belief that because of scarcity these properties would not fall much in this market, while more common housing stock would have bigger losses because of the amount available, has not proved correct. According to RP Data national research director Tim Lawless, this theory held true until recently when margin calls, devalued share portfolios, low company profits and lower than expected executive bonuses brought new conditions to the prestige sector. Now there is simply less discretionary income and lower demand for expensive homes.

"Demand has virtually come to a halt in some inner city areas," Lawless says.

RP Data has a stratified median house price index that divides each market into 10 layers, allowing analysis of different price segments.

In Brisbane, the most expensive tier fell 9 per cent and the least expensive fell 3 per cent.

Because no real improvement in business conditions is in sight, demand for prestige homes will remain relatively low, RP Data says"

Source: The Australian

Parklands at Sherwood Completes

Stage One at Pradella's Parkland at Sherwood is now complete. There appear to be some good buys, including a large one bedroom for less than $400,000. There are apartments for rent too. This looks like a great development.

No Sunshine for the Coast

"Among the states, hardest hit appears to be Queensland, where 4000 new apartments are going begging: 1000 on the Sunshine Coast, more than 700 in both Townsville and Cairns, and far more on the Gold Coast.

It is believed many of them have fallen into the hands of the financiers, given that most developers make just 20 per cent profit on a project."

The Australian

At least 4000 new apartments are still unsold in Queensland and most of them are believed to have fallen into the hands of their financiers.

Bankers are now asking what to do with the properties, and the problem has prompted property experts to run seminars on how to deal with hotel resorts and the unsold million-dollar beachfront apartments that many now control. Mortgagee sales remain prominent on the Gold Coast, where 1383 new high-rise apartments were for sale in the November quarter. Only 37 were sold in the three-month period.

That compares with 965 for sale in the November 2007 quarter, when there were 142 new high-rise apartments sold.

The Australian

Raptis Goes Bust

Gold Coast and Brisbane developer, Raptis, went into administration today. Also, the developer's $700 million Hilton Hotel redevelopment in Surfers Paradise was put into voluntary administration this week. See CM