The photo shows development sites by Devine, Citimark, Mirvac and Brookfield Multiplex. (Double click on photo for larger view.) An endless supply of apartments, which means values are unlikely to rise significantly.
Listed real estate group Mirvac is set to continue its successful track record of quality residential development on Brisbane in-fill sites after the purchase of a prime 7,637-square-metre former Department of Primary Industry site at Hamilton.
Previous projects by Mirvac on classic in-fill sites in Brisbane include The Arbour On Grey (at South Bank), Quay West, Grosvenor, Waterline Bulimba, Park Hill Village, Mariner’s Reach, Cutters Landing and more recently Waterfront Newstead.
Mirvac’s Queensland CEO Matthew Wallace says the Hamilton site, located in Hercules Street, is six kilometres from the CBD and will likely accommodate more than 500 residences. Its end value will be around $300 million.
“We are very excited about the purchase of this site and while our planning is still in its initial stages at present we will be delivering a residential product that will broaden the price segments in which we operate,” he says. “The site is extremely well located and the same team that has delivered such projects as Cutters Landing, Tennyson Reach and more recently Waterfront Newstead will be behind the Hamilton development.
“The product will be affordable, it will be quality, it meets the State Government and city council’s planning goals of higher density in the CBD fringe and will be a prime example of contemporary urban design.” Wallace says the Hamilton development is a prime example of Mirvac’s national strategy to continually review and refine its product offering in line with demand and opportunities that arise.
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Wallace says the Hamilton development will leverage off the established amenity within the immediate locale and it is proposed that the urban street environment will integrate with the existing Portside development.
The site is adjacent to the Portside Wharf development and cruise ship terminal, is approximately 500 metres to the City Cat, five minutes to the Gateway Motorway and 10 kilometres south of the Brisbane Airport.
The DPI has recently vacated the site.
“We are planning a range of innovative one and two bedroom product on the site and our research indicates that there will be significant demand for this product and this location,” he says.
“Our plan is to provide affordably priced, high-quality residences to a broad section of the marketplace and our team is excited about turning their minds to a new challenge.
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Wallace says it is expected that approvals permitting, Mirvac will release the first of the residences at Hamilton next year.
See QBR
Multiplex have started to sell the fourth building in the Portside development at Hamilton Shipping Terminal. This building is named Promenade. Here is a video.
Promenade is being marketed as waterfront, but the building is not waterfront. It is behind other buildings. (In addition, the firth building, Hamilton Waterfront Residences which is the same height, will be built in front of Promenade. HWR will have "absolute waterfront" apartments with an average price of $1.6M.)
Promenade has apartments from level 4 to level 15. There are a mix of 1, 2 and 3 bed apartments. There are two levels of quality -- the lower levels are not as good quality as the higher levels. For example, the lower levels are not fully airconditoned - there is a wall mounted unit in the living room only. The cupboards are laminate. On the lower levels, the quality of finishes are lower, and in my opinion by today's standards, quite poor.
There are 144 apartments, and according to documents dated 19 September 2008, 45 apartments have sold. Most of the apartments that sold are on levels 6 and 7 (which are the 3rd and 4th levels of apartments). Only 8 apartments have been sold on the top six levels. The most expensive is $1,650,000. The cheapest is a 1 bed with no car for $385,000.
Here are some sample prices (noting that the first level of apartments is level 4):
Level 5, Apartment P014, 2 bed, 2 bath, 1 car, 90 sqm internal, 24 sqm balcony, 114 sqm total, plaza views = $669,000
Level 8, Apartment P033, 2 bed, 2 bath, 1 car, 95 sqm internal, 29 sqm balcony, 124 sqm total, river views = $719,000
Level 12, Apartment P141 (illustrated above), 2 bed, 2 bath, 1 car, 92 sqm internal, 18 sqm balcony, 110 sqm total, river views = $960,000
Level 12, Apartment P142, 2 bed, 2 bath, 1 car, 93 sqm internal, 17 sqm balcony, 110 sqm total, Hamilton views = $790,000
Level 14, Apartment P068, 2 bed plus study, 2 bath, 1 car, 103 sqm internal, 26 sqm balcony, 129 sqm total, north view = $990,000
The rentals estimates given out at the display say that the rentals estimated for Promenades for two bedroom apartments is $520 to $600 per week, or up to $675 per week if there is a study. This is not a great return for the prices listed above.
Some other figures in the Multiplex brochure:
Capital growth for units in Hamilton in 07/08 was negative 5.9% (for Brisbane City it was 13.5%).
Medium sales price for units in Hamilton in August 07 was $645,000, in March 08 it had dropped to $438,000. In the corresponding period, Brisbane City medium sales price for units had risen by $30,000.
What concerns me about this building is that it is not absolute waterfront, more than half the apartments do not have river views, the quality of finishes on the lower floors are poor (thus attracting cheaper rents and pulling down building values), and the building will eventually be surrounded by other buildings on all sides. Those apartments with river views have obstruction and roof views of other buildings. The price per sqm is high, for example $8727 for a 2 bed on a higher floor. As far as I can tell, this building does not have a pool or gym.
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