Thursday, March 31, 2011
Tuesday, March 29, 2011
Sunday, March 27, 2011
- Quay West: 4 apartments for sale (two 2 beds; two 1 beds).
- Admiralty Quays: two 2 beds
- Admiralty Towers: one 2 bed at rear
- Admiralty Two: one 2 bed; one three bed
- Arbour on Grey: 2 apartments for sale (one 2 bed; one 3 bed).
- Saville SouthBank: zero
Wednesday, March 23, 2011
Soul off-the-plan purchasers in the low rise section are getting ready for settlement. Soul is located at Surfers Paradise, in a prime location. It is a very high end high rise. Photo from March showing progress.
Valuers and banks for purchasers are looking at contracts and doing valuations. I have heard of a situation where the apartment was valued at 70% of the contract price. That may not seem to bad, but if the contact price is $2M, then the purchaser needs to find an extra $600,000 to settle.
And there has been no announcement of who will manage this complex.
Will Juniper survive, or head the same way as Raptis and Niecon?
One purchaser is trying to resell his 2 bed apartment for more than a 3 bed apartment is being valued at: www.soul-apartment.com/
Tuesday, March 22, 2011
Saturday, March 19, 2011
"As already noted, Mr Cox values the apartment at $1,500,000 and said that its value would have been $1,750,000 had the view been the equivalent of that from the display centre. " Mirvac v. Holland
"The defendant [Mirvac] is in possession of the apartment. After the flood, it removed the mud. The walls of the apartment consisted of Gyprock sheeting. The defendant removed the lower level of the Gyprock, which was flood affected. Wiring was disconnected; switches were removed and piled into a heap; appliances were disconnected. Dunworth v. Mirvac
"It is that the area of a part of the actual Lot varies by more than five per cent from the area depicted upon the drawing for that part. In this case the area of each of the balconies varies from what was shown within the original drawing by, in one case, 10.35 per cent and in the other by 15.30 per cent. Because clause 6.3(a) of the proposed (and actual) contract permitted a change up to five per cent to the “size of the Lot or any part of the Lot” it is argued that these changes made the actual Lot different from the proposed Lot as originally identified." Mirvac v. Beioley
Tuesday, March 15, 2011
The body corporate has prepared a damage report and a preliminary estimate of costs for the clean-up, hire of plant and equipment, purchases involved in the clean-up, temporary electrical power and supply, pump equipment, rubbish disposal, repairs to the electricity supply and switchboards, repairs to ducting and air-conditioning, replacement of pumps and sensors, repairs to sewer and stormwater pumps, repairs to 8 lifts and replacement of lift equipment, pool pumps, entry roller door, fire doors, painting and “miscellaneous.”
The total estimate is $551,341.35 including supervision and co-ordination of the repairs, exclusive of GST."
See decision regarding Riverpoint at West End.
Sunday, March 13, 2011
As pressure mounts on sellers some under siege from banks prices of homes in the iconic playground for the rich and famous have dropped.
Prominent agent Tom Offermann said that for "those with confidence" this was a defining moment. "You can buy well and reap the rewards," he said. "Stock is up 20 per cent on normal levels, buyers are down about 30 per cent and there's good value."
Mr Offermann said the reason behind the downward shift was that Noosa had a high concentration of "discretionary properties" holiday and investment homes that people looked to dispose of in uncertain times. However, he said the area coped better than other hotspots and would bounce back faster.
Mr Offermann's agency recently sold a duplex apartment at 2/11 Mitti St, Little Cove, for $2.015 million for sellers who had acquired it in 2006 for $2.43 million a reduction of 17 per cent.
A stunning waterfront unit in Las Rias on Noosa Sound is listed at $1.95 million 22 per cent below the 2008 value of $2.5 million."
Saturday, March 12, 2011
- 2000 apartments worth an estimated $2 billion listed for sale
- few buyers
- dire oversupply
- only 300 apartments are selling on average each year
- between 5 and 7 year supply of apartments
- high asking prices and a reluctance by banks to lend had compounded the oversupply problem
- NAB less likely to lend to the Gold Coast apartment market
- Mr Korda, receiver for The Oracle, estimates average apartment price for the past 10 years has been about $400,000, while the average price for an Oracle unit is $1.2M.
- Soul will add to the glut, where the average asking price for the top third of the 77 storey building is $3.87 million.
- "If you have a $1 million apartment, you could probably only get bank finance for $360,000" Mr Korda said.
- Its a price point and liquidity issue.
Friday, March 11, 2011
|Region||Median Sale Q4.10||Qtrly change||Median Sale 12mths Q4.10||Median Sale 12mths Q4.09||1yr change|
"The Queensland unit and townhouse market held its ground over the December quarter last year, even as the number of investors and first home buyers remained relatively subdued.
Completing a trend throughout 2010, the last three months of the year were characterised by lower overall buyer demand, particularly from the type of buyers who typically target the unit market.
Similar to the house market over the December quarter, Real Estate Institute of Queensland (REIQ) figures show unit sales across the State easing over the quarter however some regions fared better than others.
“The unit and townhouse market at the end of last year was impacted by less overall demand from investors as well as the lower number of first home buyers in the market compared to the same period in 2009,” REIQ acting CEO Ian Murray said.
“Although we have experienced a number of natural disasters in Queensland in the beginning of 2011, it is hoped that the steady interest rate environment and the stable property pricing that now appear to be in play will result in a strengthening unit and townhouse market by year’s end.”
In Brisbane and surrounds broadly, a drop in the number of unit and townhouse sales occurred predominantly within the $350,000 to $500,000 price bracket which is the price range usually targeted by first-timers and investors.
The inner city continues to be the most sought after for units in Brisbane with Brisbane City recording 76 preliminary sales, New Farm recording 48 preliminary sales, and Fortitude Valley recording 33 over the period.
Over the December quarter on the Gold Coast it was the bottom and top end of the market that performed the best with preliminary sales increasing in the sub $250,000 price bracket and the $1 million-plus price bracket compared to the September quarter. Surfers Paradise and Broadbeach were the star performers with each recording 20 more preliminary sales than the previous quarter.
On the Sunshine Coast, Sunshine Beach and Caloundra recorded increases in preliminary sales numbers, while the region as a whole saw unit sales numbers hold steady."
Saturday, March 5, 2011
Friday, March 4, 2011
"Transaction activity in the new Inner Brisbane Apartment market is currently being driven principally by demand from investors. Recently owner-occupiers have been largely absent from the market due in part to expectations of flat prices in the short to medium term, higher borrowing costs and the removal of fiscal stimulus measures.
Currently investors are accounting for 80-90% of all transactions in the new Inner Brisbane apartment market. Investor demand - which is driven largely by rental return and expected capital appreciation - is even stronger for affordable stock (less than $650,000). Notably, the market generally is strong for price-pointed affordable stock.
Returns, which ultimately drive transaction activity for investors, are highly sensitive to both rental values and borrowing costs. Currently, both of these variables are delicately balanced, with rental values sensitive to current and future levels of supply and borrowing costs dependent on the bank’s cost of capital and macroeconomic factors such as inflation. In the near term, investor returns are likely to be driven by rental income rather than capital growth.
Given the current market imbalance, stemming mostly from elevated supply in Inner Brisbane, owner occupiers have become increasingly cautious before committing to purchase. In addition, there is now less urgency to purchase as the strong levels of capital growth witnessed in recent years have dissipated.
Despite the aforementioned threats to performance, the fundamentals of the new Inner Brisbane apartment market remain reasonably solid and underlying demand has held up well. This is reflected by the number of unconditional sales over 2010, which are well above trend levels. However, the ability and/or willingness of both investors and owner-occupiers to purchase has been eroded by increased borrowing costs and expectations in the near term of flat prices and limited rental growth. Whilst some rental markets will be influenced in the short term by home owners displaced by the floods, a sustained increase in tenant demand will be required to deliver solid levels of rental growth.
The annual demand for new apartments in Inner Brisbane is rising, as reflected by the number of unconditional sales reported during 2010 (1,433). The number of transactions in the year to December 2010 is now at its highest level since December 2005 and is well above the long term average for this market. Similarly, demand continued at trend levels over the final quarter of 2010, with 339 unconditional sales.
On the supply side, the number of new apartments available for sale in Inner Brisbane rose to 2,228 during Q4 2010, representing an increase of 24% from the previous quarter. More importantly, available supply is now at its highest level in over 10 years and is well above previous highs observed in 2002 and 2004 (circa 1,500 apartments). Current levels of available supply in Inner Brisbane represent 19 months of demand, based on the average number of unconditional sales witnessed over 2010.
Like many property markets – both residential and commercial - the New Inner Brisbane Apartment market is experiencing the impacts of a misalignment between the business cycle and development cycle. Economic conditions turned down sharply in 2009 and are yet to fully recover, whilst the supply pipeline has retained its strength, resulting in a significant market imbalance.
Most of the new apartments currently for sale in Inner Brisbane are located in the CBD and Inner North, which account for 34% and 41% of the total respectively. Additionally, when we include our estimates of apartments which are likely to be released during 2011, the Inner North and CBD continue to account for the largest share of supply.
The weighted average price of unconditional sales has been trending downward since late 2008. Despite above trend levels of demand during 2010, prices have continued to fall, although the pace of decline has eased significantly. Continued recent falls in the weighted average sale price are a reflection of the large proportion of price pointed affordable stock that transacted during 2009 and 10. The weighted average price of unconditional sales for Inner Brisbane during Q4 2010 was $556,200, a moderate increase from the previous quarter.
The unconditional sales of new apartments in Inner Brisbane during Q4 2010 were comprised largely of affordable stock, with 84% of transactions involving properties less than $650,000 in price. More specifically, 42% of the unconditional sales in the fourth quarter involved properties less than $450,000 in price. Evidently, purchasers continue to be very price conscious and this trend is likely to continue in the near term. Fourth quarter transactions in Inner Brisbane were dominated by one and two bedroom stock, with each category accounting for 45% of the unconditional sales reported.
The number of unconditional sales in the Brisbane CBD rose substantially over the final quarter of 2010, increasing to 94, which is more than twice the average witnessed during 2010 (45). Most of the sales were achieved by Meriton projects, with Infinity and Soleil accounting for 61 and 30 sales respectively. Furthermore, the majority of transactions involved two and one bedroom apartments, with 65% and 21% respectively of the total. The CBD precinct achieved 28% of the sales reported for the new Inner Brisbane Apartment market during Q4 2010 and 12% of the 2010 total. In annual terms there were 179 unconditional sales for the Brisbane CBD during 2010.
The CBD precinct represents a large component of available supply in Inner Brisbane, with 34% of the total (758 apartments). Supply levels are expected to rise substantially during 2011 due to the expected release of some 875 units.
Colliers International Research has estimated approximately 4,000 apartments will be released within Inner Brisbane during 2011.
Approximately 45% of this supply is expected to be located within the Inner North precinct. Madison on Mayne will release the largest number of apartments to the market (286).
The CBD precinct is likely to receive 21% of the potential supply with Camelot providing 420 apartments.
Resales of Existing Apartments
- During the third quarter of 2010, the number of apartments (new and established) which settled in Inner Brisbane fell by 12% to 1,191.
- The number of settlements in Q3 2010 was significantly lower (-23%) than the equivalent quarter of 2009 (1,357).
- Buyers continue to be very price conscious, as reflected by the large number of settlements involving affordable stock, with almost 80% involving apartments less than $600,000 in price."
The $55 million first stage of the Hamilton Reach project features 78 residential apartments across two five-storey buildings and will initially create up to 80 full time construction jobs. Once complete, the Northshore development will comprise around 800 apartments and townhouses across 530 metres of elevated riverfront living, about 6 kilometres from Brisbane’s CBD.
The Promontory stage of Yungaba is around 60 per cent sold totalling $30 million. The project was initially met with some resistance from the community, particularly the Yungaba House Action Group who believed the redevelopment of the heritage building wasn’t in the interest of the public. Fulcher says the protests are well behind the company and the project will preserve the cultural value."
Thursday, March 3, 2011
"Prudent buyers are seeking out prime beachside locations and purchasing both units and dwellings at prices up to 50% discount from there peak in late 2007.
The ‘Buyers Market’ which has been created by and oversupply properties has seen a steady decline in value levels throughout late 2010 and into 2011 with Iocal agents reporting buyers are willing to purchase if they feel a large enough discount has been given. This is very evident with local agents advising cash contracts being offered at open homes which are not subject to finance."