Showing posts with label kelvin grove. Show all posts
Showing posts with label kelvin grove. Show all posts

Sunday, May 4, 2014

Two Tier Property Market in Brisbane?

Is there are two tier market in Brisbane for apartments?  Are Brisbane owners, investors and renters looking for one kind of apartment, but developers are building another kind of apartment for foreign investors?  Some commentators have said that there will be an oversupply of apartments in Brisbane. For a certain kind of apartment, that may be correct.  But for what Brisbanites want, there may be an undersupply.

Take Bowen Hills for example.  It is close to the city, but has very few local amenities.  It was a light industrial area, and with highways cutting through it.  It is not inner city, and too far to walk to downtown or the Valley.  There are no parks or restaurants or river views.  There are number of large apartment buildings being constructed in that area, with small one and two bed apartments.  A lot of the sales and marketing is targeted at foreign investors, particularly the Chinese.  But do locals want to live in these apartments?  They are very small, and the buildings are very dense.  There are very few owner occupiers in these buildings.

Some examples are Madison Heights (286 apartments) and Chelsea (195 apartments).  It appears that it is taking a long time to rent out or re-rent the apartments in these buildings.  Rents are being reduced, for example, to $485 for a two bedroom apartment.  I suspect that the rental market is saying that, for the location and facilities, you can do much better elsewhere, so the apartments are renting only if rents are very competitive.



On the other hand, river front apartments in Brisbane city, apartments in New Farm, and "normal" residential locations such as Indooroopilly (where very few new apartments have been added to the market in the past five years), appear to be selling well and renting quickly.  These apartments are often much larger (130 sqm compared to 75 sqm for a 2 bedroom apartment, for example), have a better location, have more owner occupiers, and there is not an oversupply.

I also wonder what rents and returns the investors in the new apartment buildings have been promised, and what they are actually receiving, and for how long the apartment sits empty not generating rent?

Will the rents hold up when it comes renewal time in six months or a year?  Will tenants stay on or move out?  The Chelsea is an example of a building that appears to have a number of apartments for rent; it completed in 2012, and received bad press at the time.  (An advertisement below from last year for Urban Edge at Kelvin Grove, settled last year, where apartments will be coming up for renewal about now.  Kelvin Grove is a much better location than Bowen Hills in my view.)


Wednesday, January 1, 2014

Pradella developments

Pradella has a number of apartment developments in Brisbane that are currently being marketed.  These include:

Riverside, West End
1 bedrooms from $400,000
2 bedrooms from $540,000
3 bedrooms from $929,000
These apartments will be located behind the Waters Edge complex.  Project website.

Skyview, Kelvin Grove
1 bedrooms from $335,000
2 bedrooms from $524,000
3 bedrooms from $789,000
Settlement expected late 2014.

Canvas, South Brisbane
1 bedrooms from $346,000
2 bedrooms from $575,000
Settlement expected mid 2014.

Urban Edge, Kelvin Grove -- development completed
1 bedrooms from $429,000
2 bedrooms from $539,000

Waters Edge, West End -- development completed
2 bedrooms from $600,000
3 bedrooms from $889,000

Parklands at Sherwood - development completed
from $395,000


Saturday, September 14, 2013

Sunday, June 9, 2013

Urban Edge Apartments at Kelvin Grove

Pradella has completed two of the three buildings in its Urban Edge complex at Kelvin Grove.  The "Horizons" building recently completed, and residents have moved in.  The Skyview building, the third of the buildings on the site, is in early stages of construction.

Horizons is an 11 storey development, with about 133 apartments.  As at late May 2013, about 40 apartments were available for sale.  The majority of these apartments are on the Ramsgate Street side, facing west, and not with city views.  I counted 20 one bedroom apartments available for sale on this side of the building.

Some example apartments that remain for sale:
  • Apt 20808, level 8, 1 bedroom, 52 sqm internal, 66 sqm total, $429,000
  • Apt 20506, level 5, 2 bedrooms, 2 baths, 72 sqm internal, 85 sqm total, $550,000
  • Apt 21105, level 11, 2 bedrooms, 2 baths, 76 sqm internal, 91 sqm total, $584,000
  • See also REA listings
These apartments appear to be of good quality construction.  However, I don't like high-rise where the air-conditioning compressor is located on the balcony and where there are aircon headends on the walls.  For a number of apartments, the kitchen is just a row of benches on the wall, and the dining area is in this kitchen space.  (That is, no separate room or even an island bench-top for the kitchen.)  Some of the bedrooms have very small windows.


Saturday, April 27, 2013

New Apartment Developments in Brisbane

New developments:


The above is only a partial list of new and off-the-plan apartment developments in Brisbane.  Take care when buying new and off the plan, as often the pricing is much higher than existing near-new apartments in a similar location.

It is also worth reading the following book, available on the Amazon Kindle and Apple stores.  

Thursday, September 20, 2012

SkyView Apartments at Urban Edge

Pradella has commenced a soft marketing launch of Skyview Apartments, the third building in the Urban Edge development at Kelvin Grove.  Priced from $345,000.  Settlement expected in late 2014.

Thursday, August 23, 2012

Rental Crash Coming?

I wonder if a rental crash is coming?  From my review of listing portals, there is a build up of property for rent in Brisbane.  Some landlords are reducing rents.  I am not sure if this is seasonal, or part of a trend.  There are less students renting in Brisbane at present, and less consultants doing government work.

A reader sent me this via email:
"Enjoy reading your blog, just wondering if you have noticed the huge rise in listed apartments for rent in Brisbane. The price also seems to have fallen, seen 2b2b1c furnished in Bowen Hills/Kelvin Grove for $520. Casino Towers 2b2b1c for $480 Emporium has gone from 2 apartments available 2 weeks ago, to over a dozen. Not sure you keep stats on these things, but would be interesting if you could post them if you do."

If anyone has any evidence on this topic, please let me know.

The economy is not strong in Brisbane.  Some government departments are doing forced redundancy programs, where 30% of employees and almost 100% of contractors are being let go.  Small business is hurting, with costs increasing and revenue decreasing.  My guess is that the actual inflation rate and unemployment rate is higher than being reported.

Tuesday, September 6, 2011

Inner Brisbane Vacancy Rates Under Pressure

Vacancy rates in Inner Brisbane are under pressure, as population increases and a shortage of new supply sees available properties dwindle, says leading property researcher Michael Matusik. Mr Matusik, director of Matusik Property Insights, said the tight vacancy rates could be attributed to a relative lack of new development in inner Brisbane, which is experiencing a resurgence in its popularity with new residents. “Inner Brisbane is attracting an average of around 5,000 new permanent residents per annum, and that is expected to continue over the next decade, whereas in the 1990s it was losing permanent residents,” he said. “The change can be credited to a shift in demographics, with an increase in lone person households and couples without children in the precinct, who are looking for a lifestyle of convenience close to amenities and transport to the CBD.”

Inner Brisbane suburbs Milton, Paddington and Rosalie are leading the charge, with figures from the Residential Tenancies Authority showing rent in these areas have risen by about 5.6 per cent over the past 24 months.

Mr Matusik said Milton was a prime example, where vacancy rates had plunged to just 0.7 per cent, with a vacancy rate under 3 per cent considered to be undersupplied. He said about two-thirds, or 62 per cent, of households in Milton were renting, which was representative of other inner city precincts. Mr Matusik said dwindling vacancy rates were not expected to improve in the short term, with the undersupply of new stock set to continue.

“For example, Milton has recorded the second highest population growth in Inner Brisbane at 4.4 per cent per annum over the past five years, just behind Kelvin Grove, which has led to its extremely low vacancy rate,” Mr Matusik said. “It is part of the Inner West precinct, which is one of the most undersupplied markets in Brisbane.

“Just 10 per cent of the current supply of new apartments for sale in Inner Brisbane are located in the Inner West, with FKP’s The Milton the only project currently selling off the plan.”

Tuesday, August 10, 2010

UrbanEdge

Pradella has commenced marketing Urban Edge at Kelvin Grove, on Victoria Park Road.

The development will have 3 apartment buildings, with 2 of the buildings being marketed softly at present. The Vista building will be 6 levels with 73 apartments. The Horizons building will be 12 levels with 122 apartments. Building C looks to be the largest. One bedroom apartments with car park at said to be priced from $298,000.

Saturday, May 8, 2010

Edenview at Kelvin Grove

Edenview Apartments at Kelvin Grove are currently being marketed by a number of agents. Due for completion in mid-2011, this complex includes 15 one bed apartments (all sold), 40 two bed apartments (about 1o sold), and 7 three bed apartments (1 sold).

The prices for the 2 bed apartments range from $519,000 to $605,000. The 3 bed apartments start at $749,000.

As an example, apartment 126 is located on level 6, with street views. It has 2 beds, 2 baths and 1 car park. It is 78 sqm internal and 18 sqm on the balcony, for a total area of 94 sqm. It is listed at $579,000, which is about $6,150 sqm. The lounge/dining area is 4m x 6.3m, which is a good size. The bedrooms are 3m x 3.2m, a little tight. The second bedroom has a window onto the apartment hallway, which I don't usually like.

The complex has a pool, and the apartments have split system deducted air conditioning.

Thursday, October 30, 2008

Rates Ripoff in Brisbane

CITY Hall will drag five times the amount of general rates out of Kelvin Grove Urban Village this financial year.
Information released by Brisbane City Council after a question with notice shows some inner city buildings will collectively pour 400 per cent more in general rates in to the city’s coffers than last year, with Kelvin Grove Urban Village facing the biggest rise. The Village’s 213 unit owners paid a total $83,411 in general rates to council in the previous financial year, the information shows. But this will jump to $443,750 for the 2008/09 financial year after changes are introduced in January, designed to increase rates for some of the city’s most expensive inner city apartments. The changes, which take effect in January, will lift the general rate for the average unit owner in the Village from $392 last financial year to about $2100 for this financial year. But just a fraction of those living in the Village are owner-occupiers, meaning all but 23 units are owned by investors.
Other addresses to be hard hit by the new ``parity scheme’’ include the Parkland Boulevard building in Brisbane’s CBD, which will collectively pay 364 per cent more in general rates than last year, increasing the building’s total contribution to $753,000. The building contains 168 owner occupied units and 232 investment units.
Council will collect 300 per cent more in general rates for the year from Riverplace Apartments in Brisbane, where 76 of the building’s 314 units are owner occupied.
Owners of units in Admiralty Towers II in Queen Street will fork out 310 per cent more than last financial year.
Riverscape West unit owners in MacDonald St, Kangaroo Point, face an increase of 150 per cent over last financial year.
The information shows just under 1000 owners of units in 116 inner-city apartment blocks will together boost council’s kitty by $6.3 million this financial year under the changes, representing a 127 per cent overall increase for the addresses.
Central ward Councillor David Hinchliffe (Labor) said the changes would take a toll on residents of Kelvin Grove’s Urban Village, which he said was ``not the most salubrious address.’’ Cr Hinchliffe said the impact on unit owners would be about an 800 per cent increase from one quarter’s rates bill to the next.
But council Finance chairman Adrian Schrinner said the information put to rest once and for all claims people were facing 1000 per cent rises in their rates bills. He reiterated a previous commitment to issue letters to unit owners showing the individual increases they face ahead of the January changes.
See City News

Friday, June 6, 2008

Is Indigo embarrassed about Kelvin Grove?

Monday, September 24, 2007

Indigo Sued - Kelvin Grove Village Development

Today's Australian Financial Review (p. 60) reports a lawsuit against the developer of the Kelvin Grove Village apartment complex by three retailers. The developer is Indigo.

"According to the court documents, an Indigo employee had told the prospective retail tenants that more apartments had been sold in the complex than was the case."

I have always assumed this to be the case for most developments. I have seen agents say "development 50% sold" when that is not the case, or "construction started" when only demolition has started and the developer has not even obtained finance.

The AFR reports that several stores in the Village have already closed down, it would seem due to lack of people traffic.

The retailers are claiming over $700,000 in damages.

I visited the development last year, and my opinion was (at that time) that it was a dog. It seemed that it would take many years, if ever, for the area to develop into something. Although geographically close to the city, it is too isolated -- one cannot easily walk to the city, and the walk is unpleasant as you have to walk along major roads and cross a highway and a railway. There are no decent shops or facilities in walking distance -- other than the ones that are in the complex, and it appears that some are closing or have closed down. No-one I know living nearby would select the Village as a destination for shopping or relaxing.

The website states:

"Bordered by the Victoria Park Golf Course, Brisbane Grammar Schools, Queensland University of Technology, State Primary and High schools and within easy access to Royal Brisbane Hospital, the RNA Showgrounds, the Aquatic Centre, Suncorp Sports Stadium and the magnificant (sic) Roma Street Parklands - its the ideal location."

Really, the site is bordered four other development sites. Or your could say it is bordered by the six lane Kelvin Grove Road and the six lane Inner City Bypass highway. To get to Brisbane Grammar School, you have to cross the Inner City Bypass highway and a large railway line.

It is also in a gully.

About this time last year, none of the $770,000 townhouses had been sold.

A one bedroom is listed today at $420,000 by the developer being sued. Now, that sounds expensive! For that price, you could buy a 2 bed 1 bath in Skyline in the city, or a 1 bed in Quay West, or a 2 bed in a Devine building in the city.

Or you could snap up a 2 bedroom apartment from $549,000 to $625,000!!! (These are 77 to 90 sqm internal.) That is over $5,500 a sqm (including balcony) - very expensive for a suburb apartment building that has been on the market for some time.