Wednesday, November 2, 2011
Gold Coast and Soul
It will be interesting to see how many of the Soul apartments actual settle. Some photos of Jupiter's Soul -- the place looks bare and barren.
Friday, October 21, 2011
Call to build "pure hotels"
"Building a condo is all about a high ratio of units to small public space and without that space you don't get the big groups of tourists. ... they don't provide the benefits brought by the meetings and convention marketing, including the food and beverage offerings."
Take note of this warning if you intend to buy, rent, live or stay in an Oaks building in Brisbane. It is not a hotel -- it is just a cheaply built apartment complex without hotel facilities, but being misleadingly marketed and sold as a hotel. Not good for residents. Not good for people thinking that they are booking a hotel.
Friday, October 7, 2011
Buying Off The Plan
Wednesday, September 28, 2011
Miserable Gold Coast
SURGING body corporate fees have combined with price volatility in the wake of receiverships to continue the Gold Coast's ''miserable'' run of highrise unit sales this year. The Midwood Report yesterday revealed 49 unconditional sales of highrise apartments were recorded in the three months to the end of August.
This was down from 51 sales three months earlier and compared with 74 a year ago.
Report author Bill Morris said ''escalating'' body corporate fees were among the factors taking their toll on apartment sales on the Gold Coast as fees and apartment values headed in opposite directions. Mr Morris said the issue was a state-wide problem that was hurting returns for investors. ''Accordingly, the investment market has deteriorated quite dramatically,'' he said.
Mr Morris said the problem was more acute in older buildings but the failure of bodies corporate to allocate enough in sinking funds to meet maintenance issues was swaying potential buyers away from apartments generally.
He said the spate of receiverships in the Gold Coast highrise market, along with a tough stance taken by valuers, also had pushed potential buyers to the sidelines.
''Unconditional sales volumes of new apartments have continued to be miserable for the region since the beginning of 2010, averaging only 57 sales a quarter,'' Mr Morris wrote in the latest Midwood Report. The level of available highrise stock also dropped, with 618 new apartments remaining for sale the lowest in nine years.
Mr Morris said using the sales average of the past two years, the Coast still had 30 months' supply of highrise apartments. The picture for medium and low-rise apartments was even worse, with 24 and six unconditional sales recorded respectively in the three months to the end of August.
''This is a dismal result given that there are 611 new apartments currently for sale in medium-rise projects and 159 new apartments in low-rise projects,'' Mr Morris wrote. He said the State Government's $10,000 stimulus for new homebuyers could see a rise in sales over the remainder of the year.
Saturday, September 24, 2011
Gold Coast Settlements Off the Plan
Friday, September 16, 2011
Settlements Start At Soul
The $850 million Surfers Paradise project has been 11 years in the making and Mr Juniper plans to see it through to the end.
"We have the complete support of our financiers and we are with this journey all the way through," the co-managing director of Juniper Group said. "We will be delivering this building and Juniper will be there -- it's that simple."
Settlements of the first stage of the apartment project began on Tuesday, a process expected to take months to complete.
The family-owned Juniper Group has contracts on 173 apartments in the first stage, but Mr Juniper could not disclose how many had settled.
He confirmed Juniper Group was still finding buyers despite the dire Gold Coast apartment market and that he had secured an unconditional 30-day contract for an apartment yesterday.
See Gold Coast Bulliten
I am not sure why settlement will take months. Usually, all settlements (even for a large building) are done in less than a week.
Sunday, September 11, 2011
Gold Coast High Rise
The article reports that more than $1 billion of apartments purchased at the top of the market are due to settle soon in The Oracle and Juniper's Soul developments.
Lawyers are apparently circling to try to get buyers out of contracts. For example, it is said that Nyst Lawyers believe buyers can get out of their Soul contracts because the Soul development is now being managed by Mirvac under the Sea Temple brand. What a crazy argument. The buyers want to get out of the contracts because the contract price that they promised to pay is now too much. The buyers took a risk, and lost out. You have to be very careful when buying off the plan.
The AFR reports that prices in Soul are down about 17%, based on one resale of a 23rd floor three bedroom apartment, 161 sqm, that sold off the plan for $1.8 million and resold in February this year for $1.5 million.
Friday, September 2, 2011
Soul to be branded as Sea Temple
HTW Market Update
That said, there are some suburbs that were tarnished by the flood that offer excellent value for non-flooded stock due to the overall lack of buyer confidence. For example, st Lucia has a ready source of student renters, is close to the CbD and enjoys good local services, but its riverfront areas copped a hiding in January. As a result, the dry property (and there is plenty) has also had a downturn. not too long ago, one of our valuers had a look at a two- bedroom, three-level townhouse that sold for $400,000 and will easily see $430 per week in rent. A 5.5% gross return in this location is a very nice earner indeed. ...
General market conditions across the Gold Coast are very tight. only those properties where the vendor is willing to meet the market are selling. there is generally an oversupply of similar properties listed for sale. Feedback from locals within the property industry indicate that the market may not yet have bottomed out which is concerning potential buyers. Our opinion is that we are bumping along the bottom similar to the late 1990’s and that properties will sell within a wider value range depending on the circumstances of the vendor.<
Source: HTW Report
Wednesday, August 17, 2011
Oracle Litigations
Saturday, July 30, 2011
Oracle Broadbeach
Tuesday, July 5, 2011
State of the Market
Friday, June 10, 2011
Soul and Mirvac and Oracle and Hilton
LISTED property trust Mirvac Group will operate a luxury hotel at Juniper Group's Soul apartment complex on the Gold Coast.
It is understood Juniper had been speaking to potential operators about incorporating a hotel/resort in the development which had originally been planned as purely top-end apartments.
Juniper and Mirvac are close to finalising an agreement, industry sources say.
Apartment values on the Gold Coast have fallen by up to 50 per cent due to oversupply of projects, many of which were started before the global financial crisis.
The resort in the Soul complex will compete with Mantra's five-star Peppers Hotel at the newly- built $700 million Oracle Broadbeach tower and also the Hilton Surfers Paradise Hotel and Residences, which was part of a development launched by failed Gold Coast developer Jim Raptis.
There is a total of 20,000 hotel rooms on the Gold Coast.
The Hilton hotel is on the market with price expectations of more than $60m on behalf of receivers acting for ANZ.
Oracle was also placed in voluntary receivership in December by Michael Nikiforides, a director of South Sky Investments, a Niecon-related company.
It was also suggested Mirvac briefly looked at takeover target Oaks Hotels and Resorts, for which Thai-based conglomerate Minor International is now a majority shareholder.
Mirvac was not available for comment yesterday.
It is understood that at least 200 apartments in the Juniper Group's Soul apartment project at Surfers Paradise are due to settle in stages from July.
Industry sources said Juniper had been marketing the Soul apartments in Asia with the promise of three-year rental guarantees on a $2m apartment, equating to $2000 a week. There are still 92 apartments remaining for sale at Soul, according to the Midwood Report, although the group provided no details on sales in the complex during the February quarter.
The yet-to-be-completed 77-level Soul tower fronts both the beach and Surfers' main retail strip, Cavill Mall, on the corner of The Esplanade and Cavill Avenue.
INVESTORS who bought into the failed $700 million Oracle Broadbeach development on the Gold Coast have been trying to offload their apartments at auction, but are finding no buyers, according to real estate sources.
It bodes unfavourably for the 200-plus pre-sold apartments in the Juniper Group's Soul apartment project at Surfers Paradise, due to settle in stages from July.
It is understood Juniper has been marketing the Soul apartments in Asia with the promise of three-year rental guarantees on a $2m apartment -- equating to $2000 a week -- and has involved a corporate advisory firm.
Market sources said the apartments at Oracle, on Elizabeth Avenue, Broadbeach, had been put to auction after the investors had settled with the receivers. But the apartments had not sold, mainly because of an expectation receivers would put more stock on the market at steeply discounted prices.
Oracle was placed in voluntary receivership in December by Michael Nikiforides, a director of South Sky Investments, a Niecon-related company. Niecon, of which Con Nikiforides is the chief executive, developed Oracle.
One Oracle apartment owner said then he was aware of people who had bought apartments for $3.5m and had since sold them for $2.5m. As at January, it was believed the developer had secured about $160m from more than 400 pre-sales in the 505-apartment complex, and between October and January about 180 of those had settled.
The value of Gold Coast apartments has typically fallen by 30 per cent since the global financial crisis.
The Oracle project is believed to have cost about $700m, with up to $550m in loans from a syndicate including National Australia Bank, Westpac, Suncorp and Bank of Scotland.
Juniper's Soul, which unlike Oracle is not insolvent, has 92 apartments remaining for sale, according to the latest data from the Midwood Report, although the group provided no details on sales in the complex during the February quarter.
Tuesday, June 7, 2011
Discounting is rife
Saturday, June 4, 2011
Valuer's View
Tuesday, May 31, 2011
Heavy Discounting on the Gold Coast
Saturday, May 21, 2011
Watch Out For Illegal Conduct of Developers!
"... Ms Greenwood and Mr Gaffney contracted to purchase an apartment, lot 80, by a contract with the defendant dated 27 December 2006. Their contract specified a price of $508,400. However, on a separate page it contained a special condition, handwritten by Ms Greenwood, which was as follows:
"The settlement to be on forty-five (45) days, but if settlement occurs within thirty (30) days, there will be a rebate of one hundred thousand dollars ($100,000)."
Their evidence is that Mr Kemm asked them to contract in these terms, the mutual intention being that the price would be $408,400, because he thought it desirable that it be represented that this apartment had sold for $508,000, which Ms Greenwood said had become the list price by the time of their contract.
Whilst Mr Stumer knew that Ms Greenwood and Mr Gaffney were themselves buying an apartment, he was unaware of the price and of its significant discount upon the listed price. There is no specific complaint that the non-disclosure of her contract price was misleading and deceptive. However, that non-disclosure, in the circumstances of the long friendship between these individuals, does not enhance her credibility. More importantly, the fact that Ms Greenwood and Mr Gaffney were prepared to facilitate a misrepresentation of their contract price to other potential buyers is relevant to their credibility."
Thursday, April 14, 2011
Market Cracks
Apartment prices in the luxury beachside Australian town of Noosa Heads have tumbled by a fifth since 2008 as cracks emerge in a housing market that’s so far escaped the rout seen in the U.S., U.K. and Ireland.
The median apartment price in the tourism and retiree town 150 kilometers (93 miles) north of Brisbane has slumped 21 percent in three years to A$570,000 ($594,000), according to the Real Estate Institute of Queensland. Sales have more than halved across Queensland state’s Sunshine coast, home to “Crocodile Hunter” Steve Irwin’s Australia Zoo, and the Gold Coast, known for its surfing beaches and casinos.
“We have a very overvalued housing market and even a small adverse shock can be magnified by a large adverse impact on property values,” said Gerard Minack, Sydney-based global developed markets strategist at Morgan Stanley (MS), who asserts Australian home prices are as much as 40 percent overvalued. “We’re seeing that now in parts of Queensland.”
Wednesday, March 23, 2011
Soul Settlements Coming Up
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/