Sunday, September 26, 2010
Sunday, September 19, 2010
FKP has opened its sales office for "The Milton", a new apartment building that FKP plans to build next to the railway line at Milton Station.
- FKP's recent developments in Brisbane have not been great. Vue at Milton was did not turn out to be great, and many of the apartments there are still selling below the original sales price. The Albion Mill project never started. I considered the SL8 development at West End to be a disappointment.
- The Milton is being built on a railway.
- The Milton is located close to the XXXX brewery, and so residents will be impacted by smell, fumes and fallout from the brewery.
- Despite the nice brochures from FKP, The Milton is located a fair distance from the river. It is not river front, and will only have distant river views. There is the strong possibility that other towers will be built between this development and the river. In my opinion, the artist's impressions being distributed by FKP are somewhat misleading.
- There is the risk that the apartments on each end will be built out if similar apartment buildings are constructed on the neighbouring land. The Milton is not on a corner block, and this is a risk.
- The building does not have central airconditioning. The hallways are unlikely to be airconditioned. Not all rooms in your apartment will have an airconditioning output head. So FKP selected the low quality option here.
Sunday, September 5, 2010
I received this from a Sydney investor, who was asked to invest in Infinity, on Herschel Street in Brisbane:
- 1 bedroom with study with city views from: $398,000
- 1 bedroom with study with river views from: $448,000
- 2 bedroom with city views from: $525,000
- 2 bedroom with river views from: $560,000
Saturday, September 4, 2010
"Importantly, do not read ‘relatively affordable’ as ‘secondary quality’. It is better to stretch the dollar a bit and buy a dodgy looking second had unit with good bones and quiet position in an area such as Ascot or Toowong, rather than a brand newie in the same areas that is the size of a bathtub and has full exposure to rail noise. The good thing with these units is that they always have a strong rental demand and some value-add potential if you get something that needs a little love.
... there are some areas that you should steer clear of.
The first that comes to mind is on the Redcliffe Peninsula and specifically high rise unit developments. A favourable council hell bent on turning the area into something beyond a sleepy seaside habitat went gung ho with developers to create a mini Surfers Paradise along the esplanade. The result was a number of multi-level unit projects designed to take advantage of the views and the natural attributes that usually have investors salivating. Unfortunately the suitors became a little too enamored and far too many projects came out of the ground, with many units snapped up by out of town buyers for prices well beyond the average local punters cashbook. The result - there is now a glut of these attached dwellings throughout the area. Some initial buyers have lost large money and given the abundant supply on the market and the near zero demand from well informed local buyers, the prospects of growth appear somewhat limited for some time at least.
Overall market sentiment has remained very slow/ subdued over the winter months, with minimal market activity and some less than impressive sale results. Therehas been a significant drop off in the number of sales and selling prices, and fingers are crossed that demand will increase as the election is out of the way and the weather warms up."
The report then lists recent sales where the vendor has lost money.
The report also states that the Brisbane apartment market is "peak of market" and that the Gold Coast apartment market is "declining" but that the Sunshine Coast unit market is at the bottom of the market. This would suggest that it is best to buy on the Sunshine Coast, than in Brisbane or the Gold Coast.