Showing posts with label Admiralty Towers. Show all posts
Showing posts with label Admiralty Towers. Show all posts

Saturday, March 3, 2018

New or resale apartment?

I am often asked whether it is better to buy a new or a resale apartment.  Often, you get better value in a resale apartment.  There are less marketing and agent costs, and the seller does not have to achieve a price to satisfy a bank or investors.  A resale apartment may have an older kitchen or bathroom, but will often be larger.

Before buying a new off the plan apartment, look at what is available today for resale.  For example, this apartment in Admiralty Towers Two, on a high floor, is listed for sale at $749,000.  This is in a good location on Queen Street, near the Marriott Hotel and the Howard Smith Wharf development.   It is direct river front, has excellent views, deducted air-conditioning (not a split system) and is 116 sqm (much larger than most new two bedrooms.)  Currently, it achieves $670 a week rent.


Tuesday, May 2, 2017

Recent Brisbane City Apartment Sales

M on Mary
Apt 1506, 1 bed, 1 bath, no car - $310,000

Charlotte Towers
Apt 4011, 1 bed, 1 bath, 1 car - $390,000
Apt 2804, 1 bed, 1 bath, no car - $311,000
Apt 3602 - 1 bed, 1 bath, 1 car - $410,000

Casino Towers
Apt 2306, 1 bed, 1 bath, no car - $310,000

Riverplace
Apt 277, 2 bed, 2 bath, 1 car - $600,000
Apt 157, 2 bed, 1 bath, 1 car - $552,000
Apt 175, 2 bed, 1 bath, 1 car - $552,500
Apt 234, 2 bed, 2 bath, 1 car - $772,000

Aurora
Apt 528, 2 bed, 2 bath, 2 car - $808,000

Admiralty Towers Two
Apt 3, 3 bed, 2 bath, 2 car - $975,000
Apt 95, 3 bed, 2 bath, 2 car - $1,350,000
Apt 100, 2 bed, 2 bath, 1 car - $730,000

Felix
Apt 216, 2 bed, 2 bath, 1 car - $520,000

Admiralty Quays
Apt 49, 3 bed, 2 bath, 2 car - $1,075,000

More the most part, these prices are similar to prices that were being achieved 7 years ago.  Riverplace has had the biggest increase in value over this period.

Thursday, January 26, 2017

Brisbane City Apartment Sales

Recent sales in November and December 2016:

Parklands
Apt 3104 - 2 bed, 1 bath, 1 car - $590,000
Apt 3036 - 3 bed, 2 bath, 1 car - $650,000

Charlotte Towers
Apt 1207 - 2 bed, 2 bath, 1 car - $460,000
Apt 1502 - 2 bed, 2 bath, 1 car - $490,000
Apt 1704 - 1 bed, 1 bath, 0 car - $322,500
Apt 602 - 2 bed, 2 bath, 1 car - $510,000

Riparian
Apt 4301 - 3 bed, 3 bath, 2 car - $2,562,000

Admiralty Towers One
Apt 135 - 2 bed, 2 bath, 1 car - $615,000
Apt 21 - 2 bed, 2 bath, 1 car - $720,000

Admiralty Towers Two
Apt 29 - 3 bed, 2 bath, 2 car - $1,059,000

Meriton Infinity
Apt 2907 - 1 bed, 1 bath, 1 car - $420,000
Apt 5006 - 2 bed, 2 bath, 1 car - $600,000
Apt 5406 - 2 bed, 2 bath, 1 car - $580,000

Riverplace
Apt 109 - 1 bed, 1 bath, 1 car - $516,800

Festival Towers
Apt 2905 - 1 bed, 1 bath, 1 car - $390,000

Aurora
Apt 248 - 2 bed, 1 bath, 1 car - $400,000

Capital gains were best for direct riverfront buildings and worst for the large apartment towers built by Devine (Charlotte Towers and Festival Towers and Aurora).  The Devine developers now run Metro.


Monday, January 9, 2017

Admiralty Towers One Sales

Some recent sales from Admiralty Towers One, which is located at 35 Howard Street in Brisbane.  This is a direct riverfront building, although not all apartments have river views.  Some apartments have spectatular views.  The apartments are larger than most apartments being built today, with some one bedrooms about 70 sqm and some 2 bedrooms more than 130 sqm.

Apt 21 - 2 bed, 2 bath, 1 car - $720,000
Apt 56  - 2 bed, 2 bath, 1 car - $710,000
A[t 49 -  2 bed, 2 bath, 1 car - $692,000
Apt 135 - 2 bed, 2 bath, 1 car - $615,000
Apt 121 - 2 bed, 2 bath, 1 car - $575,000
Apt 88  - 1 bed, 1 bath, 1 car - $415,000

Sunday, March 20, 2016

Glut of one bedroom apartments?

Many of the new apartment buildings have a large number of small one bedroom apartments, that have been sold to investors.  These investors are hoping to rent them.  In the past, a one bedroom apartment gives a good rental return relative to purchase price.

However, at present, there is a problem.  There are too many one bedroom apartments.  Owner-occupiers prefer two bedroom  (or larger) apartments or houses.  There is less demand for short term rentals at present, where a one bedroom apartment was a good alternative to a hotel room.  And most young Brisbane renters prefer to share and rent large apartments or houses.

Some one bedrooms are sold without a car park, making them even less attractive.  In my view, a one bed with no car that is 60sqm or less in size is worth about $310,000.

If rents go down, which they will, then capital values will fall.

There may be one exception here.  Some of the riverfront older apartments, which have larger apartments (e.g. a one bedroom over 70sqm) seem to be holding up well.  See for example this apartment and this apartment in Admiralty Towers

Sunday, January 10, 2016

Response to Reader Comment regarding quality Brisbane apartments

A reader recently posted this comment, in relation to my post below:

"... you are certainly correct that there is a lot of stock under construction that will settle through the end of this year and next. However, with few exceptions most of this is small 1bd and 2bd "investor" stock targeted at the rental market. As you said, this is already leading to increases in vacancy rates and lower rents - at present, this is probably just a return to normal but it will probably over-correct and the rents/vacancy for small 1bd and 2bd stock will be worse than long term trend levels. That said, why do you see this impacting on quality owner occupier buildings such as admiralty, quay west?? The investor stock being constructed at present is vastly different to the owner occupier stock and I doubt there are many occupiers out there tossing up between admiralty and meriton's soleil. I feel the two markets will diverge and the the limited amount of quality owner occupier stock will lead to growth in this market. Do you not agree?"

This is my response.  The over-supply in Brisbane is having an impact on the rental market for the high quality, owner occupied buildings.  Note that many these buildings still have more than 40% of the apartments rented out, usually to long term tenants.  For example, in Admiralty Towers, large three bedroom apartments that rented for about $1,400 a week at the top of the rental market boom are now renting for less than $1,000 a week.  An excellent large one bedroom apartment with river views, fully furnished, has been vacant for months, at an asking rent of less than $600 a week.  This apartment would have rented quickly at about $640 a week two years ago.  For some reason, some tenants prefer smaller apartments in newer buildings.

The rental market in quality buildings is being impacted by a number of factors, and not just new apartments being completed.  These factors include:
  • the end of the mining boom, so less executive rentals
  • a rental boom, that probably caused rents to increase too much
  • short term rental apartments not achieving good returns, and so these are re-entering the long term rental market
  • lower population growth
  • no income growth
  • younger people having different views as to what is a trendy apartment
  • more choice in more inner city locations
Prices seem to be holding up at present, partly because interest rates are so low.  I recently locked in an investor loan fixed for 3 years at 4.09%.  Even at a reduced rent, this property is cash flow positive today.  So why sell?

I agree that owner-occupiers still have little choice for quality apartments in Brisbane.  If you are looking for a large two or three bedroom apartment in a quality building in a good location, there is still not much choice.  Very few of the new buildings would be suitable if you are looking for a long term residence.

Sunday, August 2, 2015

Recent Brisbane City Apartment Sales

Some example recent sales in Brisbane city apartment buildings.  Some buildings are tightly held and have few sales.

Quay West - 132 Alice Street
  • Apt 88, 1 bed, 1 bath, 1 car, park views - $512,000 in June 2015
  • Apt 50, 2 bed, 2 bath, 1 car - $705,000 in February 2015
Admiralty Towers 1 - 35 Howard Street
  • Apt 119, 3 bed, 2 bath, 2 cars, river front - $1,240,000 in February 2015
Admiralty Towers 2 - 501 Queen Street
  • Apt 78, 3 bed, 2 bath, 2 cars, river front - $1,100,000 in March 2015
Charlotte Towers - 128 Charlotte Street
  • Apt 3701, 1 bed, 1 bath - $368,000 in July 2015
  • Apt 2504, 1 bed, 1 bath, 1 car - $436,000 in July 2015
  • Apt 1702, 2 bed, 2 bath, 1 car - $545,000 in Juune 2015
Casino Towers - 151 George Street
  • Apt 2101, 2 bed, 2 bath, 1 car - $872,000 in July 2015
  • Apt 1506, 1 bed, 1 bath, 1 car - $334,000 in July 2015
  • Apt 2104, 1 bed, 1 bath - $384,750 in June 2015
  • Apt 1307, 2 bed, 2 bath, 1 car - $480,000 in June 2015
Riverplace - 82 Boundary Street
  • Apt 288 - 2 bed, 2 bath, 1 car - $740,000 in July 2015
  • Apt 38 - 2 bed, 2 bath, 1 car - $677,500 in June 2015
Soleil - 501 Adelaide Street
  • Apt 5501, 2 bed, 2 bath, 1 car - $695,000 in July 2015

Saturday, March 7, 2015

Troubles within Body Corporates

When buying an apartment, it is important to understand whether the body corporate committee is professional and sensible, and whether the building owners are cohesive.

An example of a building with major troubles in this area is Admiralty Towers Two at 151 Queen St. This is a prestigious riverfront building, with large apartments and great facilities, is in a really super location.  However, onsite management company went bankrupt a few years ago, and the receivers are trying to sell the management rights (that is, the contract for the caretaker for the building and onsite rental office).   The current body corporate is opposed to management rights as a concept -- some sort of religious like zeal.  The management rights were sold, and at an AGM the owners narrowly approved the sale to the new caretaker, but the committee is trying to block the sale.  The committee is spending owners money to engage a lawyer from Sydney to fly to Brisbane on this issue -- a lawyer who has publicly stated he is against management rights.  Fights and more fights.  Lawyers everywhere.   Uncertainty over who will be the caretaker.  This has and will impact the value of apartments in this building.

Another building where a fight is brewing is Quay West, where the management rights contract will come to an end in a few years.  Some committee members in this building are also opposed to management rights.  The committee is doing illogical things, just to make the onsite manager's life as difficult as possible.  One example:  the onsite manager offered to buy a new smoke detection system for the building at the manager's own cost to bring the building up to standard, but the committee rallied owners to vote against this.  Does this make commercial sense?

And in Admiralty Towers One, one owner keeps bring legal action against the body corporate and has been regularly unsuccessful.  See this decision and this decision and this decision for example.  This one owner is causing all the other owners to waste money on lawyers, rather than improving the quality of the building.

Another example is The Phoenician at Broadbeach.  The committee at this building has been hostile to a succession of onsite managers for years.  One example -- the committee got into a trade mark litigation with the onsite manager, and lost, having to pay the legal costs of the onsite manager!  What a waste of owners' money.

One common threat running through all this is the Unit Owners Association of Queensland.  Buildings listed above that have had internal disputes often have committee members from UOAQ living in the building or on the body corporate.  It is not uncommon for committee members in such circumstances to push the views of the UOAQ with religious like zeal, often to the financial detriment of residents and lot owners.

(Click on letter below to make bigger)




Recent Sales - Admiralty Towers One and Two

Recent sales in Admiralty Towers One (35 Howard Street)
  • Apt 145, 2 bed, 2 bath, river views from side (not direct riverfront) 105 sqm - $600,000 in January 2015
  • Apt 101, 2 bed, 2 bath, no river views - 104 sqm - $577,000 in January 2015
  • Apt 146, level 24, 2 bed, 2 bath, no river views (same floor plan as Apt 101) - 104 sqm - $575,000 in September 2014
  • Apt 54, level 8, 1 bed, 1 bath, 1 car - no river views - 74 sqm - $426,300 in September 2014
  • Apt 44, level 6, 2 bed, 2 bath, 1 car - full river views - 132 sqm - $810,000 in June 2014
Recent sales in Admiralty Towers Two (501 Queen Street)
  • Apt 72, 3 bed, 2 bath, 2 car - full view views - 151 sqm - $1,050,000 in October 2014
  • Aprt 133, 3 bed, 2 bath, 2 car - full view views - 175 sqm - $1,250,000 in October 2014
  • Apt 95, 3 bed, 2 bath, 2 car - full view views - 151 sqm - $1,048,000 in August 2014

Sunday, August 3, 2014

Recent Brisbane Apartment Sales


iStay River City - 79 Albert St

Apt 1201, 1 bed, 1 bath - sold on 27 July for $335,000

Charlotte Towers - 128 Charlotte St

Apt 2404 - 1 bed, 1 bath, no car - sold on 27 July for $340,000
Apt 1201 - 1 bed, 1 bath, no car - sold on 18 July for $365,000
Apt 4403 - 2 bed, 2 bath, 1 car - sold on 29 May for $650,000
Apt 2803 - 2 bed, 1 bath, 1 car - sold on 2 May for $495,000

Skyline - 30 Macrossan St

Apt 53 - 2 bed, 2 bath, 1 car - sold on 27 July for $603,000
Apt 193 - 2 bed, 2 bath, 1 car - sold on 2 June for $618,500
Apt 31 - sold on 16 May for $750,000

M on Mary - 70 Mary St

Apt 1205 - 1 bed, 1 bath, no car - sold on 2 July for $322,500
Apt 4302 - 5 bed, 3 bath, 3 car - sold on 31 May for $1.9M
Apt 1009  - 1 bed, 1 bath, 1 car - sold on 26 May for $365,000
Apt 506  - 1 bed, 1 bath, no car - sold on 10 May for $395,000

Festival Towers - 108 Albert St

Apt 3807 - 2 bed, 2 bath, 1 car - sold on 30 June for $516,000
Apt 1503 - 2 bed, 1 bath, 1 car - sold on 25 June for $460,000
Apt 4007 - 2 bed, 2 bath, 1 car - sold on 10 June for $541,000
Apt 704 - 1 bed, 1 bath, no car - sold on 5 June for $298,500
Apt 2610 - 1 bed, 1 bath, 1 car - sold on 3 June for $400,000
Apt 905 - 1 bed, 1 bath, no car - sold on 2 June for $319,500
Apt 2510 - 1 bed, 1 bath, no car - sold on 22 May for $350,000
Apt 2301 - 2 bed, 2 bath, 1 car - sold on 9 May for $525,000
Apt 508 - 2 bed, 2 bath, 1 car - sold on 8 May for $475,000

Felix - 26 Felix St

Apt 217 - 2 bed, 2 bath, 1 car - sold on 29 June for $580,000

Riverplace - 82 Boundary St

Apt 92 - 2 bed, 2 bath, 1 car - sold on 27 June for $645,000
Apt 147 - 2 bed, 1 bath, 1 car - sold on 23 June for $551,000
Apt 52 - 2 bed, 1 bath, 2 car - sold on 7 May for $650,000

Admiralty Towers One - 35 Howard St

Apt 44 - 2 bed, 2 bath, 1 car - sold on 8 June for $810,000
Apt 146, 2 bed, 2 bath, 1 car - sold on 12 May for $585,000

Infinity - 43 Herschel St

Apt 3807 - sold on 27 May for $400,000
Apt 4303 - 2 bed, 2 bath, 1 car - sold on 26 May for $630,000
Apt 6304 - 2 bed, 2 bath, 1 car - sold on 20 May for $640,000

212 Margaret St

Apt 82 - 2 bed, 2 bath, 1 car - sold on 26 May for $555,000

Admiralty Quays - 32 Macrossan St

Apt 137 - 3 bed, 2 bath, 2 cars - sold on 12 May for $1,100,000
Apt 34 - 2 bed, 2 bath, 1 car - sold on 2 May for $850,000

Riparian - 71 Eagle St

Apt 4302 - 1 bed, 2 bath, 2 car - sold on 8 May for $1.5M

Admiralty Towers Two - 501 Queen St

Apt 166 - 3 bed, 2 bath, 2 car sold on 28 April for $979,900

Aurora - 420 Queen St

Apt 301 - 2 bed, 2 bath, 1 car - sold on 26 April for $627,500

Quay West - 132 Alice St

Apt 103 - 1 bed, 1 bath, 1 car - sold on 24 April for $510,000

Sunday, June 1, 2014

Admiralty Towers One

From a recent Ray White report by Colin Walsh:

"Admiralty Towers 1 continues to be one of the Brisbane CBD's most sought after resident apartment buildings with the recent complex improvements adding a fresh appeal.  Seven sales were recorded in 2013 with prices on the incline.  For the first time in a couple of years, there are two D Type apartments sold for $880,000 and $900,000.  This illustrates that buyers are sawing new opportunities in the complex and are prepared to meet seller's demands."

The D Type apartments are two bedroom, two bathroom apartments, and are over 130 sqm in size.  Apartment 44 is a D Type, and went to auction recently but did not sell at auction, and is now listed for sale for "over $825,000".  This looks like a great deal.  This apartment is one of the best two bedroom apartments available in Brisbane.

Admiralty Towers 1 is direct riverfront, located at 35 Howard Street.

Saturday, March 1, 2014

Admiralty One

Apartment 59 in Admiralty Towers One sold at auction this week for $585,000.  It is a two bedroom apartment, in one of the best buildings in the city.

Wednesday, January 1, 2014

Recent Sales in Brisbane's Admiralty Precinct


Admiralty Towers One (35 Howard Street)
  • Apt 93, 2 bedrooms, 2 bathrooms, 2 car parks - sold in September for $880,000
  • Apt 58, 2 bedrooms, 2 bathrooms, 1 car park - sold in September for $900,000
Admiralty Towers Two (501 Queen Street)
  • Apt 108, 3 bedrooms - sold in September for $938,000
  • Apt 132, 2 bedrooms - sold in August for $760,000
  • Apt 26, 2 bedrooms - sold in July for $662,000
Admiralty Quays (32 Macrossan Street)
  • Apt 100, 2 bedroom 2 bathroom - sold in October for $800,000
  • Apt 12, 1 bedroom - sold in August for $590,000
Skyline (30 Macrossan Street - not riverfront)
  • Apt 125, 1 bedroom, 1 car - sold in December for $347,000
  • Apt 13, 3 bedroom - sold in October for $1,131,000
  • Apt 172 - 2 bedrooms - sold in July for $590,000
Riverplace (82 Boundary St)
  • Apt 215, 1 bedroom - sold in December for $510,000
  • Apt 140, 1 bedroom - sold in November for $435,000
  • Apt 316, 2 bedrooms - sold in October for $750,000
  • Apt 54, 2 bedrooms - sold in October for $647,000
  • Apt 146, 1 bedroom - sold in September for $370,000

Saturday, November 2, 2013

Recent Brisbane City Apartment Sales

A list of some recent reported apartment sales in Brisbane CBD area, since June 2013.

Admiralty One
- Apt 93, 2 bedrooms, 2 bathrooms, direct river views, large 132 sqm - $880,000
- Apt 125, 2 bedrooms, side river views - $600,000

Admiralty Towers Two
- Apt 132 - 2 bedrooms, direct river views, 116 sqm - $760,000
- Apt 26 - 2 bedrooms, direct river views - $662,000
- Apt 124 - 2 bedrooms, direct river views - $705,000

Admiralty Quays
- Apt 104 - 3 bedrooms - $960,000

Riverplace
- Apt 146, 1 bedroom - $370,000
- Apt 82 - 2 bedrooms - $750,000
- Apt 165 - 1 bedroom - $500,000
- Apt 31 - 2 bedrooms - $650,000

Metro 21
- Apt 283, 1 bedroom on level 28, no carpark - $307,000
- Apt 301, 2 bedroom on level 30 - $553,500

Felix
- Apt 312, 2 bedrooms, 2 bathrooms - $555,000
- Apt 294, 2 bedrooms, 1 bathroom - $485,000
- Apt 324, 2 bedrooms, 1 bathroom - $475,000

Quay West - construction starting next door, and disharmony in building
- Apt 86, 2 bedrooms - $655,000
- Apt 129, 3 bedrooms - $1M

Saville South Bank - reports of two bedroom apartments selling above $900,000.

It appears that pricing is picking up.  In some instances, apartments are selling for record highs.  In other instances, prices are still below the 2007/2008 peak.  Volumes of sales in the period June to September do not appear to be high, although in recent weeks, this may have changed.  The high end sales appear to be to owner occupiers.

Saturday, September 14, 2013

I just don't understand

It seems to me that newer apartments are overpriced.  One example.
You can buy a year old apartment in Meriton's Soleil as follows:
  • 93 sqm internal
  • No balconey
  • Air conditioning not ducted
  • 2 bedrooms, 2 bathrooms
  • Facing West, so hot in the summer
  • General views of an ugly part of Brisbane
  • Large, impersonal building, used as a hotel
  • Your neighbour may be an Eastern European hooker or a football team on tour
  • Price = $629,000 (apartment 4403) - $6,763 a sqm
Or you could buy an apartment in River Place:
  • 113 sqm total
  • Massive balconey
  • Riverfront
  • 2 bedrooms, 2 bathrooms
  • Outdoor pool overlooking the river
  • Price - $659,000 (apartment 54) - $5,831 a sqm
Or you could buy an apartment in Quay West:
  • 130 sqm total
  • Two balconies
  • Ducted air-conditioning
  • About 130 apartments in building
  • Views of botanical gardens
  • 2 bedrooms, 2 bathrooms
  • Price - about $600,000 - $4,615 a sqm
It will be interesting to see what this apartment sells for in Admiralty One:
  • 130 sqm in total
  • Balconey
  • Direct riverfront
  • Ducted air-conditioning
  • 2 bedrooms, 2 bathrooms, separate laundry room
  • North Eastern view
  • About 120 apartments in the building
  • Auction -- there has not been a similar apartment sold in this building for years.
Why would you buy in Soleil?  Or in some of the currently marketed off-the-plan developments, when some of the "older" apartments are cheaper on the price per sqm basis, and in better locations?

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Friday, October 12, 2012

Recent Brisbane Apartment Sales

Recent sales:
  • Riparian, 71 Eagle Street, 3 bedrooms on level 44, sold for $2.3 million
  • Charlotte Towers, 128 Charlotte St, Apt 1903, 2 bedrooms, 1 bathroom, sold for $465,000 (after being on the market for some time)
  • River City, 79 Albert St, Apt 2706, 2 bedrooms, 1 bathroom, sold for $420,000
  • River City, 79 Albert St, Apt 2106, 2 bedrooms, 1 bathroom, sold for $430,000
  • Admiralty Towers One, 35 Howard Street, Lot 110, 2 bedrooms, 2 bathrooms, sold for $535,000
  • Roma Street Parklands, Apt 6008, 3 bedrooms, sold for $1,220,000
  • Riverplace, 82 Boundary Street, Apt 82, 2 bedrooms, sold for $645,000
  • Casino Towers, 151 George Street, Apt 1604, 1 bedroom, sold for $347,000
  • Festival Towers, 108 Albert St, Apt 3402, 2 bedrooms, 2 bathrooms, $495,000
  • Aurora Towers, 420 Queen St, Apt 568, 2 bedrooms, $750,000

Friday, August 10, 2012

Admiralty Precinct Sales

From an email from agent Colin Walsh:

During the first half of 2012, we have handled the sale of 3 apartments and achieved outstanding results for our clients, please see the list of units sold with the sale prices.
SOLD - 105/35 Howard St, Brisbane $532,500
SOLD - 139/501 Queen St, Brisbane $651,000
SOLD - 151/32 Macrossan St, Brisbane $963,000

Sunday, June 10, 2012

Recent Apartment Sales in Brisbane

Metro 21 (21 Mary Street)
  • Apt 1701, 2 bedrooms, 3 bathrooms, sold furnished $492,500 (rents for $700 per week)
  • Apt 1003, 1 bedroom, $310,000
Quay West (132 Alice Street)
  • Lot 29, Apt 503, 1 bedroom, 73 sqm total size, sold furnished $450,000
Admiralty Towers One (48 Howard Street)
  • Lot 105, 2 bed, 2 bath, on Macrossan Street side, sold on 28 April, $532,500
  • Lot 85, 1 bedroom, direct riverfront, sold on 4 April for $562,000
  • Lot 141, 2 bedrooms, 2 bathrooms, $535,000
  • Lot 31, 2 bedrooms, 2 bathrooms, $615,000
  • Lot 5, 1 bedroom, 1 bathroom, on rear of building, for $490,000
Admiralty Quays (32 Macrossan Street)
  • Lot 83, 1 bedroom, $580,000
Felix (26 Felix Street)
  • Lot 57, 2 bedroom, 1 bathroom, large courtyard, sold for $540,000
  • Lot 152, 2 bedrooms, sold for $475,000
  • Lot 117, 2 bedrooms, sold for $465,000
  • Lot 278, 1 bedroom, no car, sold for $325,000
Casino Towers (151 George Street)
  • Apt 1503, 2 bedrooms on front/side, with river and Southbank views, settled in May for $580,000.
  • Apt 1603, 2 bedrooms, on front/side with river and Southbank views, $565,000
  • Apt 2202, 2 bedrooms, middle front with river and Southbank views, 103 sqm total size - $655,000
  • Apt 2107, 2 bedrooms, river views, 93 sqm total size - $515,000
  • Apt 2104, 1 bedroom on rear - $362,500
  • Apt 3803, 2 bedroom sub penthouse, 188 sqm in size - $805,000

Saturday, June 9, 2012

Is Median House Price Data Useful?

There are many newspaper reports that discuss rising or falling house & apartment prices by reference to the median sales price for a particular period.  For example, see this recent report from REIQ.  The median price is the middle price of all the properties sold in the defined period.  (For example, if there were 5 sales in the period, for $1, $10, $1000, $1001 and $6409, then the median is $1,000.)

If you select a different length of time to measure the median, you get a different result of course.  For example, according to REIQ, the median sales price for Brisbane apartments (all of Brisbane local government area) for January 2012 to March 2012 was $387,750.  The median for April 2011 to March 2012 was $395,000.

The median is not the average price.  (The average for the example above is $1484.)  See also here and here.

The statistics only look at the properties that were sold in the period.  If the median changes, it does not necessarily mean that the value of any particular property has changed.  For example, if in one quarter, there are many two bedroom apartments that are sold, and in the next quarter, there are mostly one bedroom apartments that are sold, then the median price is likely to decrease.  If a new off-the-plan development settles in the period, then the median is likely to increase for that period and decrease for the next period.

So how reliable are the recent REIQ statistics?  I had a look at a number of the more larger, upmarket and top end apartment buildings, and there are no or few reported sales for the relevant period (January 2012 to March 2012).  For example:
  • Admiralty Towers Two - no recorded sales
  • The Grosvenor - no recorded sales
  • Quay West - only one sale, a 1 bedroom.
  • Admiralty Quays - only one sale, a 1 bedroom
  • Riparian - 1 reported sale, a 2 bedroom
  • Metro 21 - 2 reported sales (1 bedroom & 2 bedroom)
  • Admiralty Towers One - no sales on direct riverfront side of building
  • Fresh Taringa - no sales since October 2010
  • Riva Indooroopilly - no sales in more than 12 months
  • For the above, there were no 3 bedroom sales at all.
It seems that the larger and more expensive apartments are not being sold.  Thus, the median price will be less than periods where there are more of these apartments that are being sold.  That the larger or more expensive apartments are not being sold could be for a number of reasons:  (A)  They may be listed for sale, but not selling because the owner does not want to or need to decrease price. (B) These buildings have more owner-occupiers, who do not sell as often.  (C) If rented, the rents are good, and so selling for a lower price makes less sense than renting out the apartment.  (D) An owner who needs to sell may decide to rent the apartment for a short period, until prices rise.  (E)  There may be no buyers at the high end of the market.

So it is hard to determine if the apartment values have fallen for the kinds of apartments that are not often sold, and if so, by how much.  Also, the median price decease for Brisbane may be because of a change in mix of the apartments that are being sold.

Friday, April 22, 2011

Good Size Two Bedroom Apartments in Brisbane

I have been asked recently as to which apartment buildings have good sized two bedroom apartments in inner Brisbane. Not including the super luxury apartments (such as Riparian, or Coronation Residences (169 sqm)), the following list of Brisbane apartments gives some examples of larger two bedroom apartments (all including balcony, not including car park or storage rooms):
There are others, and I would be happy to add to this list with more examples.