Showing posts with label stockland. Show all posts
Showing posts with label stockland. Show all posts

Tuesday, July 5, 2011

Bumpy Ride in Residential Sector

"PROPERTY developers with an exposure to the residential sector are in for a bumpy ride in coming months, with Morgan Stanley analysts predicting a drop in home values of between 5 and 10 per cent.


Stockland and Mirvac have the biggest exposure to the home market but their earnings will be protected from big falls by the strong office market."


See SMH

Saturday, February 13, 2010

Market Update from Stockland

Queensland:

  • Suffered the greatest slowdown and the mildest recovery to date
  • Difficult investment climate; government levies increasing
  • New housing starts remain below underlying demand
Stockland's apartment division

Further urban consolidation is inevitable in order to meet the Federal Government’s stated population growth targets

However, Stockland’s Apartments projects have not delivered appropriate returns in recent years:

Wrong style of project (e.g. high end lifestyle, non urban) that did not reflect our core markets and strengths

Planning blockages significantly impacted speed to market

Further apartments projects will only be considered as part of mixed-use projects which play to our diversified asset class capabilities:

Working closely with government approval authorities to resolve planning and delivery blockages

Focus on right product / place / price with significant amenity and convenience

Tuesday, July 28, 2009

The Wave, West End


A Korean developer called Mirae Queensland Pty Ltd is in the final steps of obtaining development approval for an apartment complex at West End, just behind Stockland's Koko project. The development is called "The Wave" and is located at 321 Montague Street, West End.

It is an 8 storey development, proposed to have 424 apartments. There are a large number of studios and one bed apartments. In total, there are 563 bedrooms in the development. There are over 500 car parks. So this development will have a large number of apartments.

There will also be some retail in the development.

There have been a significant number of objections filed to the Development Application, so it is not certain whether or when this will go ahead.


Friday, April 24, 2009

Stockland Results 2009

Mr Quinn told analysts and reporters that Stockland’s residential sales performance remained strong, particularly among first-home buyers, and there were signs of recovery among second- and third-home buyers.

Mr Quinn said the high-end residential market remained soft and continued to affect Stockland’s apartments business.

Source: The Australian

Sunday, January 4, 2009

Stockland Residential Outlook December 2008

Stockland reports that:
  • The top end of the residential market is very soft.  Very fragile, and oversupply issues.
  • First home owner segment stronger due to interest rate cuts and government grants
  • Choice between owning and renting starting to favour owning, as rents are rising and interest rates are falling
  • Investors returning to the market due to interest rate cuts, rising rents and poor stock market performance.   Investors make up 10% of Stockland buyers at present.
See Report (alternative site for Report) 

Stockland and FKP

"FKP intends to continue  discussions with Stockland, to ascertain whether a transaction in the best interests of FKP securityholders can be consummated."

See FKP Media Release from December 2008

Thursday, December 18, 2008

Stockland Downgrades Residential Portfolio by $105M

"He said two factors in the past two months had prompted the downgrade of its residential inventory.

He said there had been a "massive downturn" in the top end of the residential market.

Secondly, the company had made a "conscious decision" to sell some high-end projects outright at a discount to their carrying value.

Mr Quinn said: "The first home buyers are well and truly back because it is now cheaper to buy than to rent."

Stockland had started to reconfigure some high-end projects to create more affordable products.

"Traditionally, 20-25 per cent of our market is first home buyers. They now represent 45 per cent of our total buyer profile." He said sales had picked up nationwide."

See The Australian

Tuesday, August 19, 2008

The Compass Points North

See SMH

Look out Sydney and Melbourne, the exclusive apartments that are planned along the Brisbane River, the Gold Coast and further north are threatening to steal your limelight.

MONEY IN THE BANK

Roseville resident Rhonda Sear knows how to identify a prime apartment in a quality development. This full-time property investor bought a $1,175,000 penthouse in Queensland's South Bank development in 2004 and sold it 18 months later for $1.6 million. Sear has just listed for sale her three-bedroom, two-bathroom apartment in Norman Reach, a $108-million premium development on the Brisbane River at Norman Park.

Sear bought the apartment for $1,739,000 in 2006 and expects to make a profit despite the softer market. "It's an appealing city and it's a lot more affordable than Sydney," she says. "The key is actually buying the prestige product that has a uniqueness because it should still show strong growth in a soft market because it represents a certain lifestyle."

Sear has also spent $1.51 million on a unit on level 55 of Empire Square, Brisbane.

Saturday, August 16, 2008

Google Insights

Google has an interesting service, that allows you to see what people are searching for on Google.

It is called Google Insights. It is helpful when making investment decisions.

For example, when looking at searches conducted in Australia over the past 12 months, the following are relative rankings of various searches:

trilogy brisbane
mill albion
empire square
westin brisbane
sl8


mirvac
pradella
devine
fkp
stockland


indooroopilly
new farm
west end
st lucia
toowong


Friday, August 15, 2008

Stockland Results

http://www.stockland.com.au/

"Short term weakness in Residential; to rebound strongly in medium term"

In 2007/08 FY, Stockland sold 225 apartments Australia wide, for a total of $212M, at an operating profit of $11M or 5%.

Sunday, April 13, 2008

Allisee Development

First, Stockland sold its Saville hotel and apartment development to MFS/Stella, who have rebranded Saville as Mantra.

Next, Stockland has had a hard time selling its Koko development on the river at West End. It has reduced prices of the highend stock.

Now, Stockland is abandoning its Allisee development on the Broadwater on the Gold Coast. An advertisement in Thursday's AFR states that Stockland is selling Stage 3 of Allisee in one line -- total area of 8,679sqm over 3 sites. (The advertisement also states that Stage 1 is complete and 80% sold, and Stage 2 is underdevelopment with 30% sold.)

Saturday, September 22, 2007

Pradella's New West End Development

Soon, Flow will be complete. Next door, Pradella will launch a new West End riverside development. I suspect it will be worth considering.

It does not have a name, but it does have a website.

Pradella will have developed three West End riverside complexes:
  • Flow (to be completed in 2007) which looked extremely overpriced, but now just looks expensive; some apartments will be excellent (riverside on high floor) and some are not great
  • New and unnamed
  • LeftBank which is still looking very good
Stockland has Koko, which didn't live up to expectations.

And there is Riverpoint, currently selling off-the-plan, which looks very mixed.

I suspect there will be more to come.

Saturday, September 1, 2007

Koko at West End

One agent told me recently that Stockland has a significant number of unsold apartments at the Koko development at West End. Another agent told me that the apartment complex has a significant problem getting water for the courtyard gardens, and that it was costing the body corporate more than expected.

I found the gardens over all to be disappointing at Koko. Looking at the original marketing material, and comparing what resulted, there is a big difference. One example: the pool had clear glass-like pool fencing in the brochure; but the pool was built with an ugly metal pool fence.

A number of apartments are being resold, with 2 bedrooms of about 85 sqm being sold for less than $600,000, even $550,000.

A three bedroom on the top floor is listed at $1,450,000.

They just don't seem to be selling that fast.