Showing posts with label southpoint. Show all posts
Showing posts with label southpoint. Show all posts

Sunday, June 1, 2014

Place Apartment Report

Place has published their "Current Market Report - Inner Brisbane Apartments - March Quarter 2014".  Link is here.

The report focuses on new, off-the-plan apartment developments, and is worth reading.  Many people say that there soon will be an oversupply of apartments in Brisbane.  At present, it is taking longer to rent out apartments, so maybe the glut is already here.  Maybe there will be an oversupply of smaller rental apartments and an undersupply of apartments for owner-occupiers?

Some highlights from the report:
  • The three months to March 2014 recorded 639 unconditional sales. Although this is not to the same level of transactions as the record breaking December Quarter prior, this is still almost twice the 10 year average of 326 unconditional sales per quarter.
  • A weighted average of $710,524 was recorded during the March 2014 quarter. This is a figure 30% above the December period previously and representative of a higher level of owner occupier sales recorded in Inner Brisbane as opposed to any genuine price growth.
  • The increase in local buyers has seen 52% of transactions recorded as two bedroom configurations.
  • Despite this weighted average price rise, the 12 month rolling average price remains under $600,000, reflecting an overall longer term demand for affordable inner city apartments.
  • One bedroom sales represented a further 40% of the quarter’s transactions, again the bulk of which transacted within the $350,000 and $450,000 price point.
  • The distribution by price point was more evenly spread through the first quarter of 2014. The $350,000 to $450,000 price point still however retained the market share with 26% of the quarter’s sales.
  • There were 1,225 apartments remaining for sale in Inner Brisbane at the end of the March 2014 quarter – The lowest level in 4 years.
  • Overall, two bedroom apartments maintain the majority of current supply within Brisbane equating to 58% of the apartments remaining on the market. One bedroom apartments total only 29% of the available apartments for sale, and 3 beds represent only 9%.
  • There were six new projects which recorded unconditional sales during the March 2014 quarter. These included Abian (CBD), Proximity (Hamilton), 38 High Street (Toowong).
  • The best performing projects in Brisbane during the quarter were Abian (108 transactions), Broadway on Anne (58 transactions), Southpoint (46 transactions), Proximity (45 transactions), and 38 High Street (44 transactions).

Friday, August 16, 2013

Guaranteed Losses if you pay too much

If you pay too much to a developer when buying off the plan, no matter how good the location, and how good the development, you will loose money.  Often, developers will show you beautiful brochures of the facilities in the location (all true) and tell you rents are higher in this location than others (again true) and that it is a popular, closely held area (true again), and then try to sell you an apartment that is 20% above market value.  If this happens, you will likely suffer a capital loss.  See this story for example about capital losses in a bullet proof area.  Investors looking at SouthPoint at SouthBank, which is a brilliant location and looks to be a quality development, should take notice of this warning, particularly when prices are more than $10,000 a square metre.

Monday, July 22, 2013

SouthPoint

After delays and false starts, it now appears that SouthPoint at SouthBank is ready for a sales launch.  See this site and this site, for example.  The development is on Grey Street, opposite the Galleria and next to the train line, on what has been called the Collins Place site.

According to sales agents, the SouthPoint building has three sections, arranged vertically.  The central section will be an Emporium Hotel, with residential apartment sections on either side (called the North and South cores).  On the rooftop will be a 25m wet edge infinity pool, a day spa with massage rooms, hairdressing and manicure options, a roof top bar and gymnasium.

From what I have been told, in the South core, the one bedroom apartments range from $425,000 with a Southern aspect and no car parking, to $560,000 for the top level facing the river with a car park.  The one bedroom apartments are all less than 60 sqm in size.  Two bedroom apartments in the South core start at $645,000 for a lower level rear apartment facing the railway line to around $840,000 for the top level river and city view apartment.  These two bedroom apartments are all less than 80 sqm internal size, so are much smaller than similar apartments in Saville (Mantra) SouthBank.  Compare also apartments in Quay West, where one bedroom one car apartments are about 73 sqm, and sell for about $450,000 with river views and furniture.

In the North core, there are three bedroom apartments that range between $1.7million and $3.8 million. These appear to be large apartments.

Apartments on the rear of the building face West, looking over the train line.  There are surrounding buildings, so to get a good view, you will want to be on a higher floor.

This development is by Anthony John Group, who is doing lower priced apartments in Cannon Hill.  Their apartments in the Valley Emporium development were not, in my opinion, high quality apartments.  It seems that SouthPoint will have three levels of finishes, so care must be taken to ensure that you understand what level of finish will apply to each apartment.


Wednesday, May 9, 2012

Southpoint Dead?

It is rumoured that Suncorp has pulled out of the Southpoint deal, because the developer could not get finance.
See here and here.

Suncorp staff were told that the developer cannot get funding, so Suncorp have withdrawn from the deal.

Monday, November 28, 2011

Suncorp Selects Southpoint as New HQ?

There are rumours going around that Suncorp has select Southpoint at South Bank as its new headquarters.  Construction has not even started, so it will be a long way off.  (The other option Suncorp was looking at was 480 Queen St, the site of the proposed but abandoned Trilogy Tower.)  I suspect that this will add to the value of apartments in South Bank and some in South Brisbane.

Update:  Tuesday 29 November:  Rumour confirmed as correct.

Wednesday, August 24, 2011

Southpoint at South Bank

The Australian Financial Review had an article yesterday about developer Anthony Jones Group. Most of the story was about the Emporium Hotel, built on the old bus depot in The Valley. Despite its poor location in the middle of two major roads and a car park, its glitzy fitout has proved popular.

The story mentions Anthony Jones Group's proposed development at South Bank, called Southpoint, that has been promised for a number of years now. It is said to be at 17 storey retail and office block, 458 apartments, and a 180 room Emporium hotel (that no doubt will have over the top decor too.) It was reported that early works started last year, but there has not been much happening on the site this year.

Suncorp supposedly has short listed Southpoint for its new headquarters.