Showing posts with label ray white. Show all posts
Showing posts with label ray white. Show all posts

Sunday, January 13, 2019

Brisbane Apartment Market Update

In the downtown area of Brisbane, there are a few new apartment buildings adding stock to the market.  These include:

  • Mary Lane which is on top of the newly opened Westin Hotel in Mary Street, with many apartments sitting empty (this is the replacement for 111+222 that did not go ahead)
  • 443 Queen Street, on the Brisbane River, which is currently under construction
  • Brisbane SkyTower, which is nearing completion but with the lower floors occupied prior to completion (this is the other part of the replacement for 111+222 that did not go ahead)
  • The One Residents at Brisbane Quarter (which is where the W Hotel is located), currently under construction
  • Spire Apartments on Queen St, but not riverfront, complete but with very few new apartments available for sale

For sales of existing apartments, the trends depend upon the building (quality and location).  Ray White has recently published a report of sales from October 2018 to December 2018.  It shows:

- In some buildings, there have been no sales.  These are good quality buildings, in good locations, with large apartments and fewer apartments.  The owners don't want to sell.  There are less renters and more owner occupiers.  An example is Admiralty Towers Two, at 501 Queen St on the river.

- In some buildings, there are a few sales, and there have been capital gains over the past 10 years.  For example, in this period, a large 1 bedroom in Quay West on Alice St has increased in price from about $390,000 to $525,000.  Riverplace has also done well over the past 10 years.

- In buildings which are in second rate locations, with a poor quality build, there have been no capital gains over the past ten years, and in reality, capital losses.  Buildings by Devine (and the people who did this are now at Metro) are an example.  For example, in Festival Towers, a 2 bed, 2 bath, 1 car was selling for about $500,000 ten years ago, and one sold recently for $470,000.  In Charlotte Towers, 1 bed 1 bath no car apartments have been selling consistently in the price range of $300,000 to $330,000 for the past 10 years with no capital gain.  Unilodge (which is really student accommodation) has stayed flat at the $125,000 to $130,000 range for ten years.


Saturday, September 19, 2015

Ray White Agent's View of Brisbane apartment market

From an email from a Brisbane Ray White agent:

"The concerns for property owners for the next 12-18 months is that with around 23,000 new apartments under construction around the CBD & fringe, is that it will have a volcano effect and force property prices and rent down due to the over supply. 

We are seeing this happen at the moment in Surfers Paradise with 9/10 owners are losing money on their property. Sydney and Melbourne have already seen this happen. We are recommending it's crucial to have a think what your property plans are for the next few years. 

If you are having any thoughts of selling, don't hesitate to get in touch before it's too late. This new stock coming to the Brisbane market is not far away. 

Good news is! The market is strong at the moment."

Monday, October 20, 2014

Ray White Market Update for Brisbane City apartments

From Ray White CBD:

"The third quarter has seen prices remain stable after the growth of the first two quarters on 2014. Falling rents across the inner city in the last two months have halted price growth as large developments in nearby suburbs such as South Brisbane, Bowen Hills and Fortitude Valley have been completed. This has resulted in an over supply of rental accommodation causing rents to plunge.  With over 8,000 apartments approved for the city's inner suburbs rents look certain to remain soft for the next few years.

Michael Matusik released an article on his Linkedin page this week on the rental situation that has seen the rents for 1 bedroom units drop by $60 a week in recent months and 2 bedroom units drop by over $100 a week. https://www.linkedin.com/today/post/article/20141019231540-170298265-brisbane-inner-city-apartments and following is a recent article in The Courier Mail http://www.couriermail.com.au/business/experts-say-outlook-is-not-pretty-as-fundamentals-in-inner-city-apartment-market-are-weakening/story-fnihsps3-1227024827411 

With the outlook for rents continuing to fall next year as more and more buildings are completed, it is doubtful prices will remain at their current levels.  Should you be considering selling, now is the time to do so."

Sounds like Ray White is saying now is not a good time to buy a Brisbane apartment.  Prices to fall!

Saturday, February 2, 2013

Capital Loss in Meriton's Soleil

Take care when buying off the plan!  At present, Meriton is marking Infinity, a tall apartment tower in the Roma Street area of Brisbane City.  Let's look at an example of an investor in Meriton's prior apartment tower, Soleil.

Apartment 6003 was purchased by a Sydney investor in September 2010, off the plan, for $640,000.  It is a two bedroom apartment with study, on level 60.  None of the apartments in Soleil (or Infinity) have balconies.  The apartment is 93 sqm, a good size, but faces West.

This apartment has been on the market for a number of months.  Ray White now has it listed for sale, at $575,000.  With stamp duty and agent's fees, a capital loss of at least $80,000 or more than 10%.

This is what Ray White says in an email:

Unit 6003/501 Adelaide Street, Brisbane – 2 bedrooms, 2 bathrooms, study, 1 car + storage
Please see below links to the property internet listing along with a link to the floor plan:
6003/501 Adelaide Street, Brisbane - Internet Link
6003/501 Adelaide Street, Brisbane - Interactive Floor Plan Link
This property is open for inspection today 2nd February 2013 from 1:30-2pm. 
We also have another property on the market in Soleil, Unit 4803/501 Adelaide Street, Brisbane which is a 2 bedroom, 2 bathroom apartment with a study and 1 car space. 
At the end of 2012 we sold Unit 5204/501 Adelaide Street, Brisbane for $570,000 [the vendor had paid $540,000] along with many other sales within the Admiralty Precinct throughout the year.
We currently have buyers that are interested in acquiring quality properties within the Soleil and the Admiralty Precinct.

Tuesday, January 29, 2013

Gold Coast Bottomed!!

After a recent auction, Ray White Gold Coast is saying positive things, yet again, about the Gold Coast property market.  In every press release that I have seen over the past 10 years from Ray White Gold Coast, they appear to be saying that now is the time to buy!   Always optomistic.

When I visited the Gold Coast recently, it looked old, tired and tatty.  It is not a nice resort town.  Even if the prices halve again, I would have trouble buying on the Gold Coast.  (Another recent story:  Brisbane residents prefer to vacation in Melbourne rather than the Gold Coast!)

From Fairfax:
The value of some homes on the troubled coastal strip have halved since 2007 and data from Australian Property Monitors shows the median house price in Surfers Paradise fell 33 per cent in a year. Apartment prices dropped 5 per cent. Property can sit on the market for months – even years. While it was still too early to be talking about recovery, Sunday's result showed that prices had stopped falling, he said. "I've got no hesitation in saying the market has bottomed," Mr Bell said."
See Fairfax

Tuesday, August 14, 2012

Ray White's view

This from a Ray White agent's newsletter, about the Brisbane inner-city apartment market:

"Large amounts of buyers enquiring on our properties. I have not seen this level of enquiry since the peaks of 2007. We are expecting price movement in the second half of 2012, on the back of large amounts of property selling."

I guess times must be good.  I have emailed a number of agents about apartments listed for sale in Brisbane, and many have not returned my emails.  I have inspected a few, and asked to put in an offer, but no reply.  I guess there are too many buyers out there, over-running the agents!  Or maybe, too many agents have quit the business during the past lean years?

Friday, August 10, 2012

Admiralty Precinct Sales

From an email from agent Colin Walsh:

During the first half of 2012, we have handled the sale of 3 apartments and achieved outstanding results for our clients, please see the list of units sold with the sale prices.
SOLD - 105/35 Howard St, Brisbane $532,500
SOLD - 139/501 Queen St, Brisbane $651,000
SOLD - 151/32 Macrossan St, Brisbane $963,000

Monday, March 26, 2012

Ray White Auction Results

I went to the Ray White auction yesterday.  Some results concerning apartments:
  • Apt 2804 Charlotte Towers, 1 bed, 1 bath, no car - sold prior to auction
  • Apt 2808 Charlotte Towers, 2 bed, 2 bath, 1 car - sold for $510,000.
  • Apt 3409, Festival Towers, 2 bed, 2 bath, 1 car - passed in at $480,000.
  • Apt 287, River Place, 2 bed, 2 bath, 1 car - unsold, inspect now!

Tuesday, February 21, 2012

Casino Towers Auction Result

A sub-penthouse in Casino Towers (Apt 3803, 151 George St), recently sold at auction for just over $800,000.  This was a large two bed apartment, about 130 sqm internal.  It faced East, and did not have river views.

The owner/vendor purchased this apartment in August 2006 for $875,000, and so lost money.

The first owner purchased this apartment off the plan from Devine for $840,000 in 2005, and so over 6 years, this apartment went down in value.

Friday, November 11, 2011

River Place Auction Sale


From a Ray White email:

"Brisbane's CBD Prestige Market Is Running Hot!!

This morning over 100 people attended the auction for 326/82 Boundary Street, a River-front penthouse in River Place.

With 18 registered bidders there could only be one outcome, a successful sale reaching $1.497M!

This proves there are buyers out there wishing to secure quality properties within the Brisbane CBD."

Friday, October 28, 2011

Ray White Auction

From Ray White:  "The Urban Living Group auctions were held last Saturday at The Emporium Hotel where 52 properties went up for sale under the hammer.  A great day was had with a crowd of over 200 people attending the event and 79 registered bidders on the day.  The auctions kicked off with a bang selling 7 out of the first 8 properties, with 13 out of the 26 in the first section selling at a 50% success rate. The second section of the day was far tougher with 7 out of the 26 properties selling under the hammer, but with negotiations on multiple properties we believe we will have over 80% sold by the end of next week."


Charlotte Towers
Apt 3101 sold for $313,000 (1 bed, no car)

Aurora
Apt 236 passed in at $490,000, now listed for sale at $525,000 (2 bed, 2 bath, 1 car)
Apt 458 passed in at $450,000, now listed for sale at $480,000 (2 bed, 1 bath, 1 car)
Apt 534 passed in at $925,000

212 Margaret
Apt 2103 passed in at $340,000, now listed at $375,000 (1 bed, 1 bath, 1 car)

Admiralty Quays
Apt 67 at 32 Macrossan St did not sell at $560,000 (1 bed, 1 bath), but now listed as sold.

Sunday, October 23, 2011

Bidding at Auction Via Skype


"In early October, a potential bidder for a two-bedroom unit at Cathedral Place in Brisbane's Fortitude Valley requested to use Skype from Sydney to see the auction room and observe the atmosphere. The bidder, who had previously inspected the property, ended up buying the apartment under the hammer for $437,000.
While it was a first for Ray White's New Farm office, other agents have been using the web-based PTY Property, which provides an online bidding service that has also racked up recent sales including one of more than $3 million."
I guess this is better than phone bidding -- at least you can try to see if there are any dummy bids and see how many people are actually at the auction.

Thursday, September 29, 2011

Auctions for Apartments

I never think an auction is a good way to sell a normal apartment.  The auction process benefits the real estate agent more than the seller.

Ray White South Brisbane in its latest newsletter writes:

"Last night Ray White South Brisbane & CBD Residential again held it's monthly In Room Gala Auctions at the Greek Club with 19 properties going under the hammer. A busy night was had by all with over 200 people attending and 48 registered bidders on the night. 8 properties sold under the hammer & further negotiations are taking place on 4 other properties which should deliver over 60% clearance showing again that the 'hammer' beats a flat market."

But HS Brisbane Property's newsletter this weeks says:

"Love affair" with Auctions at an end! Once touted as the best way to achieve the best price, our 'love affair' with auctions seems well and truly at an end. Just on 80% of sellers in Queensland would want to sell their property through an auction, preferring to go through the "normal" private treaty sales process are even more sceptical, with a staggering 83%* avoiding auctions. The main reasons for buyers' steering clear of this type of purchasing process are:
- Worry about paying too much, due to the excitement of the auction
- Wasting money with property searches etc. if you don't end up winning the auction
- Stress of the bidding process
Property sales statistics reflect the Queenslanders' scepticism with less than 25% of all Brisbane homes being sold by auction, while it's around 50% nationwide.
The climax of the renovation reality show, The Block, gave many viewers a wake-up call as 3 of the 4 painstakingly renovated properties didn't even achieve reserve price in the all-deciding auction finale!
Previously we've highlighted the pitfalls of auctions, and it seems that the fundamentals of the auction process are far from ideal for the current Brisbane  - and particularly CBD - residential property market ... and many Queensland sellers and buyers appear to see it this way too!"

Sunday, July 17, 2011

Dumb Advertisement

An advertisement in this Saturday's Courier Mail by Ray White CBD for an apartment at 6 Parklands (Apt 6008): "CBD Parkland Living - Below Market Value. Auction." How can a well run and well promoted auction sell a property at below market value? The auction result is exactly market value on the day of the auction. Is Ray White CBD is saying that it does not do a good job promoting the auction so that few people will know about it, and therefore it will sell at auction below market value? Another example of dumbness.

Saturday, June 4, 2011

Recent Brisbane Auction Results

Just over a week ago, Ray White had an auction where 12 Brisbane inner city apartments went to auction. Only one sold at auction (1201 in UniLodge for just over $100,000). Over a week after the auction, most of the apartments that did not sell at the auction are still listed for sale. Why vendors decide to go to auction in Brisbane amazes me. These apartments are not selling at the prices listed below, so the market must be saying that they are worth less than this. And why buy an off the plan apartment for more than these prices? Some examples of the many apartments that Ray White was unable to sell:
  • Felix, Apt 121, 1 bed, no car - failed to sell at or after auction, now listed for $330,000
  • Felix, Apt 147, 2 bed, 2 bath, 1 car, end apartment - failed to sell at or after auction, now listed for $470,000
  • Charlotte Towers, Apt 605, 1 bed, no car - failed to sell at or after auction, now listed for $315,000
  • Charlotte Towers, Apt 2401, 1 bed, 1 car - failed to sell at or after auction, now listed for at the unrealistic price of $410,000
  • Festival Towers, Apt 906, 1 bed, no car - failed to sell at or after auction, now listed for $320,000
  • River Park Central - Apt 603, 2 bed, 2 bath - failed to sell at or after auction, now listed for $410,000
  • River City, Apt 1803, 2 bed, 2 bath - failed to sell at or after auction, now listed for $433,000
  • Aurora, Apt 626, 3 bed - failed to sell at or after auction, now listed for $1,300,000
  • Grosvenor, Apt 1504, 3 bed - - failed to sell at or after auction, now listed for $1,800,000

Monday, May 30, 2011

Markup Update


There are a huge number of properties listed for sale at present, well more than average or for this time of year.

At the Ray White auction on the past Friday, about 10 inner city apartments went to auction. Only a studio apartment sold.

Sunday, May 15, 2011

Ray White's Representations

"We're on a roll here at Ray White Toowong on the back of both our biggest sales AND listing month so far this year! Local sellers are capitalizing on the growth their properties have enjoyed over past years and buyers are swooping on good quality properties as the press continues to claim it a "buyer's market." Well that may be the case but investors are loving it."

So it is both a good time to sell and a good time to buy?

Friday, May 6, 2011

The Mood In Brisbane

I have spoken to a number of agents and bankers lately in Brisbane. It seems that the mood in changing, and properties are starting to sell, especially in the $400,000 to $550,000 price range. Buyers, including investors, are buying where the price is right (typically 5% to 10% below the peak), and sellers are accepting offers. Bankers are back in sales mode and appear to be willing to lend. Vacancy rates are low and rents are good.

For example, at the Ray White auction today, a relatively new two bedroom apartment at Indooroopilly (113 sqm in total) sold for $400,000 under the hammer, where the rent is $500 per week. Another 2 bed apartment of similar size in a different complex with river views also in Indooroopilly recently sold after only a few weeks on the market for $485,000.

Good quality two bedroom apartments in the downtown area are renting for $650 per week unfurnished.

But this more confident mood is not the same everywhere. The top end apartment market is very dead. For some apartments over a million, no buyers are calling at all. On the Gold Coast, things are very slow. Juniper's Soul development has been slowed down, with the first batch of settlements being delayed until the second half of this year and there are less construction workers on site. I wonder why?

In short, the mood is picking up in Brisbane for well priced investor apartments.

Friday, December 24, 2010

Ray White Market Update

I received a Ray White CBD Residential Market Update this week. Some extracts:
  • "we also have 37% more properties for sale so buyers have more choice"
  • "The inner city unit market continues to be popular..."
  • "While there is an increase in the number of listings, there is no evidence of an oversupply of units in the marketplace."
  • "Projects that are going ahead are price targeted toward the lower end of the market."
  • "there has been an abundance of rental properties available so far this year in the Inner City causing the vacancy factor to over around 4%" (compared to Sydney and Melbourne at 1.2%)
  • "Another factor is the rapid fall off of overseas students coming to Brisbane to study."
Ray White also reports that 91% of the properties that it auctioned this year sold, with an average of 61 days to sell. This compares with private treaty sales being 50% sold within 80 days. Doesn't sound like auctions are a fast way to sell. And 80 days time on market for private treaty is very bad -- and half of the properties listed for private treaty don't sell!! Not a good market for sellers.