Friday, December 24, 2010
- "we also have 37% more properties for sale so buyers have more choice"
- "The inner city unit market continues to be popular..."
- "While there is an increase in the number of listings, there is no evidence of an oversupply of units in the marketplace."
- "Projects that are going ahead are price targeted toward the lower end of the market."
- "there has been an abundance of rental properties available so far this year in the Inner City causing the vacancy factor to over around 4%" (compared to Sydney and Melbourne at 1.2%)
- "Another factor is the rapid fall off of overseas students coming to Brisbane to study."
- Mirvac's Tennyson Reach
- Niecon's The Oracle at Broadbeach
- Raptis' The Hilton Surfers Paradise
Saturday, December 18, 2010
The Gold Coast new apartment market has seen a continued decline in stock levels during the third quarter of 2010 to sit at its lowest level in six years
- The Gold Coast and Tweed Coast new apartment market reported a total of 126 unconditional sales during the third quarter of 2010.
- There were a total of 1,588 apartments available for sale at the end of September representing 3.1 years supply based on the current selling rate.
- 2 projects sold out during the third quarter, and 2 projects were added.
- The Southport / Labrador Precinct was the standout performer for the quarter with a total of 57 sales.
- The high rise sector recorded the highest number of sales for the third quarter with 79 (63%) of the total 126 recorded.
- The average sale price of a new apartment during the third quarter was around $680,000.
It is interesting to read the submissions of some apartment owners who tried to prevent pets in other people's apartments. Maybe we should have a rule that says no children and TVs in their apartments. I have lived in expensive apartments in other cities where most people have pets. Some people in Brisbane are quite backwards! It is also strange that people have argued that there should be no pets because the building is being used (illegally) as a hotel!
"Jo Anast, owner of Lot 81, says she would like the possibility of having pets in the scheme and is in favour of the application.
Shane Doepel and Shaun Stevens, owners of Lot 31, say that the building is not suitable for housing pets in any circumstances, being a high-density CBD residential development. Most of the units are let as part of a very busy hotel. The scheme only has “modest common areas.” Owners who are buying into the scheme do so knowing that there is a “no pets” policy which in their case influenced their decision to buy.
Frank and Marilyn Moes, owners of Lot 61 (unit 1501) say that they purchased because of the “no pets” policy. They do not believe that living in the city is an appropriate environment for animals such as dogs and cats. There are no immediate close areas where a dog can be exercised, and dogs and cats should not be in all day but have a yard to play in and access to fresh air. Mr Moes also has an allergy to animal hair.
Rachel Findlay, owner of Lot 23 (unit 805) supports the application, believing it unreasonable to ban all pets. She has lived in CBD buildings which allow pets, and the animals have not been disruptive. In “Aurora” at 420 Queen Street, it is one of the reasons why the units are highly sought after. The body corporate should allow pets within reason such as pets below a certain weight/size.
Maria Barnett and Paul Schaller, owners of Lot 121 (unit 2701), say that before purchase they checked that pets were not allowed. He has severe allergies to dog and cat hair and would not be able to use the lifts or foyer if there was animal hair in the carpets. They say that in their experience with tenants, fish tanks can cause damage to carpets, clog drains and leave stains. The building is used as a hotel so a blanket ban on pets in not unreasonable. No matter how well- behaved pets are, they would cause extra work for the management and result in blocked-in balconies which would change the exterior of the building.
Verne Baistow, owner of Lot 95 (unit 2203) says that he supports a “no pets policy.” The units are too small to provide adequate room for an animal, and the units are used for hotel accommodation. “No animals are allowed in hotels” so there should not be any animals in the scheme building either. He is also concerned about health issues and noise.
Colin Yeoman and Louisa Farthing, owners of Lot 33 (room 1005) say that the registered by-law should remain as it is, since the building is inappropriate for the housing of pets.
Christine Torbey, owner of Unit 1801, says that the building is an inappropriate residence for pets, especially dogs and cats. Animals are unpredictable and it is not possible for an owner to control entirely an animal’s behaviour. She says that this is a “standard rule in city apartment blocks generally.”
Gregory Firth, owner of Unit 603 says that the scheme should not entertain pets at all."
AUSTRALIA'S house prices are over-valued by 5 per cent to 10 per cent but any correction is ''likely to be orderly'' and the result of income and rent rises rather than a collapse in prices, says the International Monetary Fund.
See Brisbane Times
The Brisbane Apartment market has recognised its strongest quarter of sales in over six years and suggests that Brisbane apartments are back on the radar for investors seeking low priced, yield driven product.
- The Inner North was again the top performer, leading Brisbane purely through supply of price pointed apartments.
- Q3 2010 finished with 1,584 new apartments available for sale in Inner Brisbane.
- 425 unconditional sales were made, suggesting a new unit supply of 11 months.
- The weighted average sales price of new apartments in Brisbane for Q3 was $534,894.
- The median price of units in Inner Brisbane was $445,000.
- High levels of residential supply are expected to enter the market in the short term.
The development, which incorporates the Heritage listed Collins Place building, will include three separate structures on the 0.85 hectare parcel of land.
A 20-storey building on the corner of Grey Street and Tribune Street will include a five-star hotel and 210 apartments.
The Emporium Hotel, Southpoint will include 132 rooms as well as a day spa, gymnasium, boutique conferencing facilities, restaurants and bars.
A 17-storey building at the centre of the site will consist of 2 storeys of retail including a full-range supermarket and 15 storeys of commercial offices. The upper level of the retail component will offer direct connection to the rail platform.
A third 24-storey building, on the corner of Vulture and Grey Streets will comprise 248 one, two and three bedroom apartments.
The development will be constructed in separate stages to meet the anticipated early demand for both the residential and commercial components.
South Point will bring a diverse range of new audiences to South Bank for both work and play and it will help to cement Grey Street as one of the great streets in Brisbane.
Friday, December 17, 2010
Colin Walsh from Ray White issued a report recently about the Admiralty Precinct. Here are some extracts:
- "one of the most sought after residences within the Brisbane CBD"
- three bedroom sale for $1,350,000
- 2 bed type C average price 2010 = $780,000
Admiralty Towers I
- "Brisbane CBD's most tightly held residential apartment building"
- 5 sales recorded this year
- 2 bedroom sold for $750,000
Admiralty Towers II
- "one of the most prestigious and desirable buildings in the Brisbane CBD"
- 8 sales recorded this year
- 3 bedroom sold for $1,063,800
- 2 bed type C average price 2010 = $718,000
- 2 bed type B average price 2010 = $838,000
- 15 sales recorded this year
- 2 bed type J average price 2010 = $582,500
- 2 bed type I average price 2010 = $647,100
- "most affordable riverfront residential building in the Brisbane CBD"
- 14 sales recorded this year
- 2 bed type E average price 2010 = $527,500
- 2 bed type B average price 2010 = $720,000
Mirvac's Newstead Waterfront project
Mirvac's Tennyson project
Pradella's Water's Edge
Kelvin Grove Urban Village
(photos taken September 2010)
Saturday, December 11, 2010
Friday, December 10, 2010
"Reduced demand for investment properties is providing ideal conditions for buyers, according to the Real Estate Institute of Queensland (REIQ).
Over the September quarter, median unit and townhouse prices held steady in most areas of the state, while demand for properties usually targeted by investors and first home buyers reduced markedly as economic conditions and higher interest rates sidelined buyers.
Preliminary sales in the $350,000 to $500,000 price bracket across the State fell more than 20 per cent compared to the June quarter while sales in all other price brackets held their ground.
“The number of first home buyers has fallen since their high of last year, however, we anticipate demand from first-timers to continue to gradually increase next year,” REIQ managing director Dan Molloy said.
“Investors have also been sitting on the sidelines, with investment demand currently half of what it is was during 2007.
“Investors and first home buyers are usually competing for the same affordably-priced properties but the current lack of competition between these two buyer types has created ideal buying conditions, especially for investors.”
Sunday, December 5, 2010
When the recession hit, buyers fled the market and prices fell across the board. After things stabilized in late 2009, the market share for two-bedrooms had dropped from a typical 40 percent to as low as 25 percent, because more people had found that they could afford three-bedrooms, which took sales away from two-bedrooms.
Now, after a lull that has lasted for more than a year, two-bedrooms are back.
Real Estate Investors Look to the Future, and See Signs to Buy Apartment Towers
Saturday, December 4, 2010
HOMEBUYER confidence has taken a dive in southeast Queensland with predictions of more pain to come.
While auction clearance rates have been on the way down for months, auctioneers are now reporting a drop in those even registering to bid.
Auctioneer Jason Andrew said only half the auctions he held last week attracted bidder registrations – significantly down on the highs of 80 per cent over the previous two weeks.
"Sixty one per cent of the properties we auctioned did not attract a genuine bid," he said.
Thursday, December 2, 2010
It will be located at 103 Mary Street, and will be 32 storeys, with 230 apartments or hotel rooms, but only 53 car parks.
See Brisbane Times.
Here is evidence that, despite what real estate agents and developers tell you, the top end apartment market is not going great. Many people have overpaid in the past 4 years.
Apt 80 in Flow, at West End, now listed for $1,850,000. This is a massive 4 bedroom, 3.5 bathrooms, 4 car, riverview penthouse apartment. It is 272 sqm internal, and 370 sqm total floor space. It has been for sale for a while. It went to auction in March 2009 and did not sell. (It was purchased off-the-plan in 2006 for over $2.3M. I think a real estate agent's investment company purchased it, but am not sure. So with stamp duty and interest, a loss over well over half a million bucks!)
By comparison, Apt 23, on a lower floor (3rd floor -- partial river views) - 3 bedrooms, was listed for sale by the developer for $1.4M in November 2007.
Or the same developer, Pradella, was selling apartments off-the-plan in Waters Edge next door in May 2008 which are not as good for $1.9M to $2.2M (these are A1 and A2 apartments, 159 sqm, 3 bedrooms).
So you can see that prices being paid for expensive apartments have not held up. (Flow and Waters Edge and Riverpoint are not the greatest locations, looking west, in a semi-industrial area a long walk from any facilities. Infrastructure touted by developers 4 years ago has not arrived.)
If Flow has been a bad investment for some, what about a $4.5M capital loss. See this story.
Tuesday, November 30, 2010
Thursday, November 25, 2010
In The Australian this week, a story about the Colliers Real Estate Agents Brisbane Apartment Report:
"Its Brisbane apartment report for the September quarter found a 56 per cent surge in the number of inner-ring unit sales, compared with the September quarter last year, for the area within a 5km radius from the central business district.
"Broadly speaking, the Brisbane apartment market is in a similar position in the property cycle as it was more than a decade ago," Colliers International Brisbane-based research analyst Lachlan Walker said. At that stage, "the market was looking more positive and just a few years from a major property boom".
The resounding theme was that the Brisbane apartment market had made strong progress in recovering from the effects of the global financial crisis."
Source: The Australian
Now my personal view: You have to take what Colliers says with a grain of salt. They are real estate agents, who are hired by developers and apartment owners to sell apartments. Of course they would sprout a positive outlook. The Brisbane inner city apartment market at the moment is not strong. Comparing this year to last year (which wasn't a great year) doesn't really say much. There has been little to no capital growth in recent times, and probably a decease in value. At present, there are more sellers than buyers; prices are not rising; it is uncertain what the rental market will be like in 2011, particularly if students do not come to Brisbane. The smart money is waiting on the sidelines -- buying an existing apartment in six months time (when prices will not be more, and will likely be less) looks like a good thing to do.
Wednesday, November 24, 2010
Thursday, November 18, 2010
Story from the AFR on Friday last week -- "Chinese love the Sunshine State". The article states: "Half a dozen significant high-rise properties on the Gold Coast and Brisbane, which are believed to have secured a significant proportion of foreign investors, are due to settle in the next 12 months."
See also Gold Coast Bulliten
Story from the AFR on Friday last week - "Banks judge Gold Coast apartments as vulnerable".
"Westpac Banking Corp has a particularly cautious view, especially of luxury properties worth more than $3M on the Gold Coast, which is described as a key area for 'additional risk management focus'. There are hundreds of apartments on the Gold Coast priced at more than $3M. At the Oracle development at Broadbeach, there are at least 50; at two other projects coming to completion - Juniper's Soul and Brookfield's Hilton - there are more than 100."
Story from The Australian today: "Gold Coast High Rise Stress Underestimated"
"MAJOR bank Suncorp estimates that less than 10 per cent of buyers are defaulting on several major apartment projects on the Gold Coast.
This apartment is back from the river, with terrace houses and a pool between the apartment building and the river. See Auction video.
Saturday, November 13, 2010
Unit rental growth over the last five years has also recorded significant increases in Darwin (84.0%) and Perth (61.7%). The three largest cities have recorded the lowest levels of rental growth at 39.6% (Melbourne), 40.6% (Brisbane) and 42.8% (Sydney). ...
Basically, the Adjudicator has upheld the protest that the 212 Margaret by-laws, which did not permit any pets at all, were invalid and unenforceable, and has ordered them changed to a permissive by-law. This dates back to a CCT ruling in 2008 (Tutton v Body Corporate for Pivital Point Residential) where the CCT magistrate ruled that total pet bans were unreasonable since certain species of animal could on no rational basis cause any difficulty to any other lot owner.
In addition, it appears there has been a further QCATA ruling in September 2010 -- McKenzie v Body Corporate for Kings Row Centre 28/09/2010 -- in which the tribunal decided that even by-laws that attempt to ban only a certain type of pet (cats and dogs) are also so unreasonable as to be effectively invalid and unenforceable. In that case, the disputed by-law was permissive of pets in general but attempted to outright ban only 'cats and dogs' specifically.
Essentially this all comes together to mean that a (or any! within a Community Titles Scheme) Body Corporate can no longer expect to ban pets (or any kind of pet) outright, even if they have already done so by voting in a ban/restrictive by-law, or even if the building was originally set up with a pet ban/restrictive by-law.
It also means that if anyone protests such a restriction, the Adjudicators will uphold their protest, allow the pet (if it's a reasonable request and there is no evidence of a reasonable reason the pet would be unsuited to the property), and forcibly change the by-law back to a permissive one. Just like they just did with 212 Margaret.
The flow on outcome from these rulings are clear: the face of Community Titles Schemes must now change - pets can no longer be banned, and Committees and Body Corporate's can no longer expect to stop people from bringing their pets to live with them in apartments, units or townhouses - unless they can provide reasonable grounds or evidence that the particular pet would be unsuited to the lot. From what I understand, this new thinking has already been tested multiple times in the Appeals process and the Adjudicators subsequent interpretation of this has also been made abundantly clear.
212 Margaret is now (forcibly) pet friendly.
Recently, the Domain property website had an offer -- Saturday's Sydney Morning Herald and the Sunday newspaper delivered in hardcopy for $10 total for 10 weeks. I thought that this would be good, so that I could look at the real estate advertised for sale in Sydney. So far, about 5 weeks into the subscription, I have received only 2 newspapers. And the Saturday SMH that is delivered does not include a real estate section. No wonder Fairfax is going backwards.
ONE of Australia's biggest developers has continued to sell units in a proposed $150 million Brisbane tower even though city planners have rejected the project.
Since marketing started a year ago, Leighton Properties has sold just over half of the 212 apartments in its planned Mosaic development at the corner of Ann and East streets in Fortitude Valley.
More than $4 million in deposits has been paid by 107 buyers - many of whom were told the 18-level residential and retail complex would be completed by late 2012.
But Brisbane City Council threw out the development application because of height concerns, forcing Leighton to file an appeal with Queensland's Planning and Environment Court in August.
Leighton state manager Andrew Borger said he met with council planners this week and the two sides were ''narrowing down the issues''.
If no deal is struck, a five-day court hearing has been set down for March next year.
Mosaic unit buyer Wagner Higgins said she recently learned about the question mark hanging over what could be one of the Valley's biggest developments.
''It does concern me because I would really like to live at that address,'' Ms Higgins said. ''But I don't think my money is at risk. The worst-case scenario is I get my money back.''
Ms Higgins, who paid a 10 per cent deposit, said Leighton representatives had been ''very forthcoming'' about the lack of approval and told her they were ''very confident'' it would proceed.
Yet she fears that her penthouse may disappear if height issues force a redesign of the project.
Council records reveal that planners also raised concerns with Leighton about the building's engineering, architecture and landscaping design.
Despite these hurdles, a Mosaic salesman last week claimed that approval was ''imminent'' and construction work would kick off in the first quarter of next year. A crane is already on site working on a neighbouring property.
In its appeal, Leighton said the Mosaic knockback had been ''overtaken by events'' since projects of ''greater building size, bulk and height'' had secured approvals in the Valley.
Among these were a council depot on St Paul's Terrace and a 20-level residential tower at Ann and McLachlan streets, the company said. But a council spokesperson said it was up to buyers to inform themselves before acquiring a property.
''Council strongly recommends people who are interested in buying units off the plan to satisfy themselves that the development has received all relevant development approvals prior to finalising their purchase,'' the spokesperson said.
Source: Courier Mail