The development is located at 35 Peel Street, and backs right onto the rail line. Peel Street is a busy access street for the Grey Street Bridge, and is not a residential neighbourhood. So this is a pretty poor location in South Brisbane.
Although it is being sold as an apartment building, it is already being marketed as a hotel. The sales agent says the the apartments are designed to be hotel rooms. For example, looking at apartment 408, this is 68 sqm internal, and is a 2 bed 2 bath dual key apartment (i.e., a hotel room and a studio with a kitchen area along the wall). One of the bedrooms does not have windows -- it is the back of the apartment, but as it is a hotel room, that probably doesn't really matter. Although dual key, there is only one car park. It is on level 4 and looks onto Peel Street. If buying, care should be taken, because some banks will not lend for hotel room purchases.
Apat 408 is listed for sale at $608,000, including furniture. This seems to be extremely expensive. Better located better quality larger two bedrooms can be bought in near new buildings for about $100,000 less.
This apartment has a rental guarantee of $37,370 a year after agents fees, but before rates and body corporate. So a net of about $31,500, or a return of 5% once stamp duty is taken into account. (The developer misleadingly says that the net return is 6.15%, but ignores stamp duty, body corporate and rates when calculating the net return!) At today's interest rates, this is still a loss. And once the rental guarantee expires, I doubt that this small apartment will have a gross rent of more than $800 a week, which is what will be needed to accomplish similar returns to the rental guarantee. (One can rent a furnished luxury 2 bedroom apartment at Saville/Mantra, which is 120 sqm, with river and city views, for less than $800 a week today.)
But it seems that Forrester did a good job marketing The Capitol Apartments, if 70 have been sold to date -- poorly located, small apartments that are really nondescript unbranded hotel rooms for high prices.