Saturday, August 30, 2014
High-rise Brisbane
"Brisbane is set for an increase in the supply of new inner-city digs. Brisbane could well face an oversupply of downtown apartment stock. And that increase in stock might more resemble a tsunami in terms of its impart on the market and potential investment outcomes.
For the past five years, the Brisbane market has been undersupplied, with an underlying demand of about 9000 new dwellings across Brisbane. However, when we break down future demand by market segment, going rental demand (those who occupy a significant percentage of inner-city apartments) appears likely to fall. And Brisbane's future demand will more likely be deriven by the increasing downs and retirement markets. Those folk are, for the main, not enticed by large, high-rise complexes.
Rents are down, the vacancy rate is increasing and some resales in recently completed inner-city apartment buildings are already selling for losses.
Currently, the vacancy rate in Brisbane city is 4.2%. Two years ago it was 1.2%.
And there are now 276 properties (as at June) for rent in Brisbane/Spring Hill, compared with just 48 two years ago. For the first time in five years, rents have fallen."
Sunday, June 9, 2013
Matusik touts 38 High Street development
Saturday, June 1, 2013
Car Spaces
Wednesday, January 9, 2013
Rising Market?
"The astute investor – and contrary to what the mass media says – knows that the property market cycles and that it turned the corner around the middle of last year. The table below outlines the past eleven residential cycles in Australia. Things might be slow, but they are looking up."
Sunday, January 6, 2013
Median Price Reports Not Always What They Seem
Wednesday, December 5, 2012
The Chelsea - an analysis
Some points from the Matusik study:
- More than half the sales were "rebated sales", making it hard to determine the actual sales price. Most rebates were given early in the sales process.
- It took about 2 years to sell the 177 apartments in the complex.
- Only six apartments have been purchased by owner occupiers. This is a very low percentage. (My rule is to purchase only in buildings where there is a high percentage of owner residents in the building.)
- 70% of the buyers appear to be Chinese, either from the Sunnybank area, Southern States, Singapore or elsewhere.
- A number of apartments are now listed for resale, at about 10% below the recorded purchase price (before any rebates are taken into account).
Saturday, November 24, 2012
Matusik's views on apartment bedrooms
Saturday, October 13, 2012
Smaller May Have Big Future
- Buyer demand for new apartments in Brisbane is for smaller apartments
- Owner-occupiers prefer larger apartments
- But in the current market, most of the new apartment buyers are investors (about 85% of buyers) and investors are very price sensitive at present.
- "With no desire to live in the property they are buying, they are purely looking at the return, and the best returns can currently be found in one-bedroom apartments."
- In the current market, one bedroom apartments range from 45 sqm to 52 sqm and are priced from $345,000 to $425,000.
- "The ideal mix [for a new development] is 70% one bedroom apartments and 30% two bedroom apartment."
Thursday, September 20, 2012
Prices Up? But sales volumes are down
Monday, June 18, 2012
Matusik Says Brisbane on the upswing
"Market watchers will have their own theories on milestones that signal a change in the fortunes of the real estate market. I, for one, think that Brisbane has turned a corner and is well-positioned on the property clock. ... Too early to call an upturn? Maybe, but the signs are definitely there. Of course, the proof in the pudding is a sustained rise in generic property prices."
I think Matusik is slightly optimistic about Brisbane at present, but that is just my view.
Sunday, April 1, 2012
Surfers Paradise
Saturday, February 18, 2012
A Reader's Response
Wednesday, February 15, 2012
Positive Signs For Brisbane Property Market
Monday, January 16, 2012
Busting Bubble?
Wednesday, December 21, 2011
Risks of Buying Off the Plan
Risks 1 to 3
Follow Up Comments
For a more detailed analysis, see the recently published Kindle Book: Buying An Apartment Off The Plan in Queensland - A Guide For Successful Buying.
This book can be downloaded to a Kindle, iPhone, iPad or computer. The cost is less than $10, so good value if you are planning on spending money on an apartment in Queensland.
Friday, November 18, 2011
Two Queensland Buildings
- An investment’s value shouldn’t be determined by what a buyer once paid but by its income.
- The distribution of costs has no bearing on the end value of a product."
Tuesday, September 6, 2011
Inner Brisbane Vacancy Rates Under Pressure
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.”
Friday, September 2, 2011
Property collapse talk is taken out of context
Saturday, August 13, 2011
Matusik's Blog
Friday, August 5, 2011
High in the High Rise
"Here's another misconception: if you're buying apartments, high-rise is best, and the higher the better. This one, too, has been shot down by the results of research.
Brisbane property analyst Simon Pressley, director of 6-Point Property, has found, contrary to popular belief, that apartments in small complexes outperformed those in high-rise buildings on capital growth.
Meanwhile, analyst Michael Matusik argues persuasively that the common belief that apartments in the higher levels are more valuable than those below is also a myth."
Full story in The Australian
It is hard to react to 6-Point Property's research, because they do not make it freely available. It can be purchased for $1,650. One reason for the better performance of small complexes compared to high rise is that many of the high rise apartments in Brisbane are relatively new, and a number of people (particularly non-Brisbane investors) purchased off the plan at inflated prices. If these buildings were removed from the survey, I wonder if the results would change?