Oversupply in Northern Brisbane?

According to an article in the Australian Financial Review yesterday, there is a glut of new apartments for sale in the inner northern suburbs of Brisbane such as Albion and Hamilton.  In the Reed Construction Data report from July 2011, more than 7660 new Brisbane apartments were either in the market or earmarked for launch before December 2012.  Of these, 44% or 3380 apartments were in the inner northern suburbs.

"The glut of stock has come as sales volumes hit new lows in 2010 but the soften has slowed as prices have readjusted and interstate investors see value in Brisbane property. ... Research analyst Lachlan Walker warned that if the majority of projects were not overwhelmingly successful it would put further downward pressure on buyer confidence."

The article had a nice rendering from the Arden Property development at Albion called Eden.  This is said to be a $215 million residential development, with 3 buildings of six storeys each, for a total of 280 apartments.

Eden Apartments in Albion

Eden Apartments are currently in presales. There are a number of buildings, each about 6 levels heigh. Some of the apartments are a good size.

Price ranges:

• 1 bed (55 sqm, small) - $325,000 to $411,000
• 1 bed (larger) - $411,000 to $518,000
• 2 bed, 2 bath - $621,000 to $823,000

Example

• 1 bed plus study, 85 sqm to 87 sqm - $411,000 to $462,000
• 2 bed, 2 bath 115 sqm - $706,000 to $721,000
• 2 bed, 2 bath 116 sqm to 131 sqm - $686,000 to $696,000

The location is borderline industrial. Seems expensive to me when compared with apartments about a year or two old of similar size.

Eden in Albion

Arden Property from Brookfield is developing Eden at Albion. Prices start at $325,000. Arden also developed Ciana Indooroopilly, which is a good looking low rise development.