Monday, July 5, 2010

The Studio at St Lucia near University of Queensland

Last month, I wrote about The Studio development at St Lucia, located very close to University of Queensland. The developer released one of the two buildings to the market, and it sold out about 25 apartments in a week with no marketing.

There was an interesting comment about The Studio in Herron Todd White's July 2010 "Month in Review" as follows:

"High demand rental areas with reasonably assured income are a safe bet and one of our tribe suggested St Lucia is a good place to park the dough. The nearby university and ready access to facilities add up to strong demand. One development is claiming a 6.5% return on a $440,000 outlay for a double studio apartment design where both tenants share kitchen facilities. It’s geared towards cashed up, overseas students willing to part with over $250 per week per studio, which could prove to be a tall order. Our advice, if you’re interested in this type of investment, is to consider all options. Second hand multi bedroom units are offering a solid return and, more often than not, better capital growth potential compared to new stock. Just make sure you talk to one of our valuers before proceeding headlong into any under researched option."

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