Saturday, October 23, 2010

Undervalued Brisbane apartments

The Courier Mail had an article today that suggested that over reliance on property databases by real estate agents is leading to pricing discrepancies, particularly for some apartments. Reading between the lines, the suggestion is that some agents don't know the market as well as they think. The article states that "... the reales values of many homes - especially older, well positioned apartments - are being artificially curtailed. This is part of the reason why older properties remain so much cheaper than comparable newer stock."

My views on some of the inner city apartment buildings, based on recent listing prices and recent sales achieved:
  • Admiralty Towers One - undervalued - large riverfront apartments, with an excellent new onsite manager
  • Admiralty Towers Two - possibly undervalued - large riverfront apartments, but onsite manager has gone bankrupt and some owners hostile to body corporate committee leading to inefficient building management
  • Admiralty Quays - at value - beautiful riverfront building, but apartments are smaller than Towers One and Two
  • Riverplace - at value - great location on riverfront with large balconies, but lesser quality than Admiralty buildings, and larger less personal building
  • Skyline - overvalued - poorer quality building surrounded by other buildings
  • Evolution - significantly overvalued - located on a freeway, sold mostly to Asian investors, small poor quality apartments in badly managed building
  • Casino Towers - overvalued - good views from some apartments, but these apartments face West and views likely to be built out when old State Library site redeveloped into multistory tower
  • 212 Margaret - overvalued - located on edge of construction site
  • Charlotte Towers - probably overvalued - many apartments listed for sale and not selling
  • Festival Towers - probably overvalued - poor quality Devine building, likely to be further surrounded by new development and remaining views built out
  • Quay West - undervalued - large apartments with Gardens and river views never to be built out, well run building with good finances
  • Grosvenor - at value - large apartments with Gardens and river views never to be built out, low turnover of apartments
  • Felix - overvalued - smaller apartments looking with little privacy
  • Metro 21 - mixed - great difference between apartments in this building - smaller well run building with much better value than the Oaks run buildings, but one bedroom apartments in this building are not great
  • Aurora - overvalued - large, poorly run building

No comments: