Real Estate Marketing Videos

I like the fact that some agents use YouTube videos to market their properties. Here are some examples:

Quay West, Alice Street, 2 bedrooms

Ciana, 2 bedrooms

Ciana, 2 bedroom listed at $530,000:

Annual Rate of Return for Apartments in Downtown Brisbane

Often, there are statistics that are published that set out the change in the medium house or apartment price. These statistics are often not helpful. For example, if in one quarter there are many low end properties that are sold, and in the next quarter, there are many top end properties sold, the medium price will increase. Similarly, if there are new apartments entering the marketplace, this will most often result in an increase in the medium price for the area. However, in both these cases, you cannot say that values have increased.


I think that it is more useful to track the gains on resale of the same property over time. I have looked at three quality apartment buildings in Brisbane, namely Admiralty Towers, Admiralty Two and Quay West on Alice Street to see what capital gains owners have made. I have looked at all apartments that have been reported as sold this year (2009), and then looked back to see what the owner paid when first purchasing the apartment. In all but one case, the resale was the third or more resale of the same apartment. I have then calculated the Annual Rate of Return, using this calculator. The Rate of Return only looks at capital gains, and does not take into account rent received, expenses paid or transaction costs such as stamp duty or agents fees. Here are the results (with P-Price being the original purchase price on the P-Date; and Sell Price being what that owner received when reselling this year):

Lot	P-Price	P-Date	Sell Price	Sell Date	A RoR
Admiralty Towers One
5	$282,500	2/08/01	$520,000	25/09/09	7.77%
73	$490,000	19/10/06	$600,000	30/06/09	7.79%
76	$498,000	15/05/03	$685,000	31/08/09	5.19%
92	$510,000	21/03/07	$545,000	7/08/09	2.83%
119	$810,000	1/02/06	$1,200,000	19/03/09	13.36%
Quay West
23	$230,000	6/12/02	$420,000	8/07/09	9.57%
24	$435,000	16/05/08	$450,000	18/04/09	3.74%
49	$256,000	4/11/95	$425,000	25/09/09	3.71%
55	$310,000	10/05/04	$440,000	25/02/09	7.58%
68	$585,000	4/03/05	$675,000	11/10/09	3.15%
99	$400,000	13/08/96	$700,000	25/09/09	4.35%
120	$275,000	28/04/97	$460,000	2/09/09	4.25%
Admiralty Two
20	$445,000	13/09/04	$725,000	11/05/09	11.03%
47	$700,000	29/08/05	$945,000	1/09/09	7.77%
81	$720,000	23/11/07	$725,000	27/03/09	0.51%
94	$615,000	19/12/06	$730,000	7/05/09	7.45%
97	$340,000	20/02/98	$780,000	12/06/09	7.61%
106	$490,000	15/11/04	$750,000	24/06/09	9.67%
107	$485,000	1/02/02	$990,000	15/08/09	9.92%
124	$615,000	13/04/07	$750,000	19/10/09	8.20%
137	$432,000	22/03/97	$815,000	15/07/09	5.28%

Annual Rate of Return for Brisbane Apartments

Often, there are statistics that are published that set out the change in the medium house or apartment price. These statistics are often not helpful. For example, if in one quarter there are many low end properties that are sold, and in the next quarter, there are many top end properties sold, the medium price will increase. Similarly, if there are new apartments entering the marketplace, this will most often result in an increase in the medium price for the area. However, in both these cases, you cannot say that values have increased.

I think that it is more useful to track the gains on resale of the same property over time. I have looked at three quality apartment buildings in Brisbane, namely Admiralty Towers, Admiralty Two and Quay West on Alice Street to see what capital gains owners have made. I have looked at all apartments that have been reported as sold this year (2009), and then looked back to see what the owner paid when first purchasing the apartment. In all but one case, the resale was the third or more resale of the same apartment. I have then calculated the Annual Rate of Return, using this calculator. The Rate of Return only looks at capital gains, and does not take into account rent received, expenses paid or transaction costs such as stamp duty or agents fees. Here are the results (with P-Price being the original purchase price on the P-Date; and Sell Price being what that owner received when reselling this year):

Lot	P-Price	P-Date	Sell Price	Sell Date	ARoR
AD1
5	282500	2001	520000	25/09/09	7.77%
73	490000	2006	600000	30/06/09	7.79%
76	498000	2003	685000	31/08/09	5.19%
92	510000	2007	545000	7/08/09	2.83%
119	810000	2006	1200000	19/03/09	13.36%
QW
23	230000	2002	420000	8/07/09	9.57%
24	435000	2008	450000	18/04/09	3.74%
49	256000	1995	425000	25/09/09	3.71%
55	310000	2004	440000	25/02/09	7.58%
68	585000	2005	675000	11/10/09	3.15%
99	400000	1996	700000	25/09/09	4.35%
120	275000	1997	460000	2/09/09	4.25%
AD2
20	445000	2004	725000	11/05/09	11.03%
47	700000	2005	945000	1/09/09	7.77%
81	720000	2007	725000	27/03/09	0.51%
94	615000	2006	730000	7/05/09	7.45%
97	340000	1998	780000	12/06/09	7.61%
106	490000	2004	750000	24/06/09	9.67%
107	485000	2002	990000	15/08/09	9.92%
124	615000	2007	750000	19/10/09	8.20%
137	432000	1997	815000	15/07/09	5.28%

Sunland buys Devine's French Quarter

Sunland Group will make its first foray into Brisbane's apartment tower market after acquiring a parcel of land in the CBD. The developer has acquired nearly half of the French Quarter site from Devine, and will seek planning permission for a tower that will feature about 200 upmarket apartments. Devine has sold several other assets in recent months.

Article from Gold Coast News

"But while one landmark disappears, another emerges, with Sunland planning to build an 'icon' on the 2067sqm site.

Company managing director Sahba Abedian said the tower would feature 200 luxury apartments, including two and three bedrooms and sub-penthouses, aimed for the baby-boomer market.

He said a development application would be lodged with Brisbane City Council within six months."

No French Quarter for Brisbane

Devine is not proceeding with its French Quarter hotel and apartment project in Alice Street. The site was listed for sale in yesterday's AFR.

As mentioned in a prior post, Devine is selling the French Quarter site.

Here are the sale details: http://www.frenchquarterbrisbane.com.au/

"The French Quarter vision has been shaped by Devine Limited after extensive research, planning and design. The French Quarter includes an agreement with IHG for an InterContinental* Hotel which will complement the development. The marketing and sales success of the apartments at French Quarter is predicated on five key success drivers:

• Brisbane’s best CBD residential address.
• A “cutting edge” architectural design.
• A broad mix of 4 and 5 star apartment types.
• The Parisian style retail environment presenting to Albert Street.
• The presence of the world renowned InterContinental Hotel.

Alice Street is Brisbane’s equivalent of Macquarie Street in Sydney and Clarendon Street in Melbourne. Alice Street has long been recognised as Brisbane’s best apartment address with the presence of The Parliament of Queensland, The Queensland Club, Quay West and The Grosvenor. Buildings on Alice Street overlook the city’s Botanical Gardens and the Brisbane River with high level views as far as the Border Ranges, Moreton Bay and the Glasshouse Mountains.

Albert Street is the principal pedestrian link between the gardens and the Queen Street Mall. This active pedestrian friendly street is well patronised for its many cafés and retail shops."

See also The Australian

Also, Story in the Courier Mail:

Twin tower plans for Brisbane axed by Devine
Michelle Hele | September 17, 2009 12:00am | CM

ANOTHER residential tower project has fallen over in the Brisbane CBD, with Devine pulling out of its $1 billion French Quarter development. An international competition was held to pick its designer and it was to house the most expensive apartments in Brisbane – up to $15 million.

Devine spent years buying up individual apartments in buildings which are currently on the land so it could control the site on the corner of Albert, Alice and Margaret streets. Stage one was to feature a tower with a luxury six-star hotel, with apartments on top, retail and commercial space on the lower levels and Parisian-style cafes and walkways.

But with Devine appointing agents to sell the property it seems unlikely it will ever be delivered.

Meanwhile, Austcorp's Vision Tower is still in limbo with no work carried out for months and some of the group's companies in the hands of voluntary administrators.

Work is also delayed on Trilogy Tower, an $800 million project on the site of the former Red Cross Blood Bank, and Metacap scrapped plans for its $500 million Empire Square tower on Elizabeth St.

Geoff McIntyre of Jones Lang LaSalle and Rick Bird of Ray White Transact have been appointed to sell the French Quarter site and will market the property internationally. Mr McIntyre said it was a one-in-a-million site. Mr Bird spent months negotiating the individual purchase of units in the apartment blocks. The agents said the plan was to sell the property to another party which would go ahead with the project.

Devine managing director David Devine said he was disappointed but after a review of operations the company realised house and land packages were providing a better short-term return at lower risk. The group was also reviewing its land holdings in Queensland and would sell some soon.

Mr Devine said the focus now would be on buying more land in Victoria so the group could turn it into profits quickly.

"You can't do everything that you want to do," he said. "It is disappointing but the fact is that our business is exceptionally good on the house and land front where demand is high and supply is low. We have too much land in some areas in Queensland and we are looking at selling that."

Mr Devine said good sites such as the French Quarter site would sell in any market. Offers to purchase French Quarter close on November 12. Mr McIntyre said in a good market the site could make up to $90 million. Mr Bird said with all the work that had gone into planning, a developer would have a significant head start on the project.

From Devine's Report

French Quarter in Alice Street Brisbane

"Continuing to progress the submission of an application for a development approval for this exciting future redevelopment opportunity."

Hamilton Harbour

"Excellent market response to the first stage of the “Hamilton Harbour” residential development"

"Development approval now received and marketing of first stage of residential commenced March 2009. First stage 86% sold."

"Strong pre-sales of residential units in Hamilton Harbour stage 1 with 86% of 257 units now sold. (This project is also a JV with Leighton Properties)"

Commencement Dec Qtr 2009
Est. Completion Staged development over approximately 5 years

Source

Brisbane Apartment Recent Auction Results

• Felix, Apt 317, Level 31, 3 bedrooms, 3 bathrooms, over 150 sqm - highest bid $820,000, now listed at $950,000
• Willahra Tower, Apt 49, 2 bed, 2 bath, 96sqm, no bid at auction, now listed at $449,000
• Quay West, Apt 401, Level 4, 2 bed, 2 bath, 126 sqm, vendor bid of $600,000
• Roma Street Parklands, Building 3, Apt 3095, 3 bed, 2 bath, end/rear unit, vendor bid $535,000, listed at $600,000 and reported as sold
• Roma Street Parklands, Building 4, Apt 4046, 3 bed, 2 bath, lower floor with no view, vendor bid $550,000, now listed at $700,000
• SoHo South Brisbane, Apt 605, 3 bed, 2 bath, impacted by new bridge being built, highest bid $550,000, now listed at $600,000
• Toowong, 24/12 Patrick Lane, 2 bed, 2 bath, sold for $487,000
• New Farm, 7/38 Elystan Road, 2 bed, 1 bath, sold for $780,000
  

French Quarter - Site Plan

Devine is proceeding with the French Quarter development, on Albert, Alice and Margaret Streets in Brisbane. Devine has applied for Council approval for a commercial tower (tower 3) at 111 Margaret Street.

Auction in Quay West

Apartment 905 in Quay West went to auction - 1 bedroom, 1 bathroom, 1 car, furnished. 72sqm, 9th floor with park and river views.
Highest bidder was $445,000.
Now listed for sale at $470,000.

Mirvac's Quay West

Mirvac built (and continues to manage) the Quay West apartment building in Brisbane's Alice Street, overlooking the botanical gardens. Large one and two bedroom apartments on the lower levels, with penthouse apartments on the top 5 levels. One of the residents is a senior person from Devine, who is constructing the French Quarter development next door. The French Quarter development will move the prices of Quay West even higher.

One bedroom on level 9, listed at $525,000
Two bedroom on level 16, listed at $850,000

Devine to Shadow Gardens

Devine's French Quarter project will place shadows over the Botanical Gardens. This is a concern.

This is what the Courier Mail says:

DEVELOPERS building high-rises over Brisbane's Botanic Gardens will no longer have to worry about casting a shadow under new city council laws.

Devine's $1 billion French Quarter precinct, fronting Alice, Margaret and Albert streets, which proposes two towers overshadowing the gardens, will be one of the first beneficiaries of Brisbane City Council's City Centre neighbourhood plan, whereby developers don't have to lodge shadow reports.

While the precinct's design is not yet complete, Lord Mayor Campbell Newman said he would still seek more details about the shadow impact.

"In relation to the Devine proposal, that will be an issue I'll certainly be asking (about)," Cr Newman said.

"With the Vision tower, there was a bit of a shadow issue - it was a small one - and we had to weigh up the positive nature of the development."

Cr Newman said the shadow impact of French Quarter would be put into perspective.

"That doesn't mean if there's a shadow, it won't get up," he said.

Labor, which comprised the majority of the council when the decision was made, said it was complying with the wishes of the Liberal Lord Mayor.

"This was the Lord Mayor's wish - this was ultimately a decision of his," Opposition Planning spokesman Milton Dick said. "At the time, the argument was there was significant shading already in the Botanic Gardens."

Neighbourhood Planning chairwoman Amanda Cooper said the City Centre plan had been through the council twice and was in the process of being implemented.

"It was felt that there was no longer any shadowing that could impact on the Botanic Gardens because of the buildings that actually existed," she said.

French Quarter - New Two Tower Design

From today's Courier Mail

THE designer behind the famous sail-shaped Burj Al Arab luxury hotel in Dubai has won an international competition to design Devine's $1 billion French Quarter precinct in Brisbane.

The design of two towers by Tom Wright of Atkins has been selected from a field of five international architectural firms which were vying for the honour.

Atkins is also the group behind the Trump International Hotel and Tower in Dubai.

Devine managing director David Devine said yesterday now that the concept for the building had been selected planning work would start with an eye to lodging a development application in the next couple of months.

The towers will form the centrepiece of Devine's $1 billion French Quarter, a 6-star hotel and residential development.

It is to built on sites fronting Albert, Margaret and Alice streets which Devine amalgamated throughout last year. Once complete it will feature two towers housing a 6-star hotel, residential apartments, retail and commercial space.

This will all be linked by a Parisian-style cafe and walkway.

Apartments in the development will be priced from $1.5 million. Prices will reach $15 million – the most expensive apartments ever to be marketed in Brisbane.

"This project will be a true coming of age for Brisbane," Mr Devine said.

Expressions of interest for an international operator to run the hotel component of the development is down to a short list with the successful operator expected to be announced soon.

Mr Devine said none of those on the shortlist were currently operating in Brisbane.

It is also the first project by Atkins in Australia.

Mr Wright said he hoped to bring a new level of luxury and sophistication to the Brisbane skyline with the design.

Mr Wright and his team will now be commissioned to work with Devine's local design firm ML Design to develop the final plans before a development application is lodged.

It is hoped construction will start in 2009 and be finished in 2012.

French Quarter in Alice Street

From the Devine website, which shows that three towers are planned:

"Devine Limited has recently obtained control of a 7,252sqm parcel of land in the Brisbane CBD directly opposite the Botanic Gardens."

"A circa 54 storey high-rise development incorporating a 120 - 150 room 6 star boutique hotel approximately with circa 70 first class residential units ranging in size from 250 - 800sqm gross and valued at between $3 million to $15 million each. The development is located on the corner of Alice and Albert Streets opposite the Brisbane Botanical Gardens.

Projects Status:
The building is currently in the initial schematic design and we have run an international design competition which we believe will produce a visionary landmark design. Submissions have already been received from some of Europe’s finest architects. We have also run an international tender seeking expressions of interest from leading hotel operator-managers and have 12 responses from national and internationally renowned organisations in the field.

Some of those include:
The Park Hyatt
Intercontinental
The Regent
Conrad Hilton
Shangrila
Mirvac
TAJ

A development application will be lodged over the site once the new Brisbane City Neighbourhood plan has been adopted in 2008."

Drawings

Promotional Video: Click http://www.youtube.com/watch?v=q_ECTk24lxg to see Devine's proposal.