West Village in West End

The West Village development in Boundary St, West End is being heavily marketed at present.

Is this a good place to invest?  I have a number of concerns:

• The development consists of 11 new apartment buildings, going as high as 22 storeys, with a huge number of new apartments.  It is being developed and sold in stages, with the first two buildings settling at the end of 2018.  If you buy today, not only will you be living near a construction site for years, you will be competing with new apartments as they come online over the next few years.  Hard to resell or rent in this situation.
• In my opinion, the apartments do not appear to be high quality.  For example, in the two bedroom apartments, the second bedroom is not air-conditioned.  The air-conditioning is not a central system, but a split system with unsightly head ends on the wall.  
• Most of the bedrooms do not have large windows -- they appear to have one tiny window, and I suspect they will be dark and feel pokey.
• The bathrooms are small.  (None have a separate bath -- compare Saville Southbank by comparison.)
• Most bedrooms don't have access to the balcony.  Of itself, this is not an issue, but it makes both the bedroom dark (and for the smaller apartments, the balcony will be dark and alley-like). 
• The apartment layouts are troubling.  For example, in 1 bedroom apartments, the bathroom is a long way from the bedroom, through the kitchen.  For most two bedroom apartments, the second bedroom is too close to the main bedroom and too far from the bathroom.   
• The prices are expensive!  For example, a one bedroom apartment is selling for $467,000 on a low floor.  This apartment is 54 sqm internal.   (The balconies are long and skinny, with an air-conditioning compressor on the balcony.  The apartment, especially the kitchen, is likely to be dark.)
• The 3 bedrooms are being sold for more than $1.6M.  Small two bedroom apartments (only 84 sqm internal) start at $700,000!

The design is such that you can't even put a sofa in front of the TV!

It is worth comparing the West Village apartment with a similar recent development nearby, for example, Opera on Cordelia Street that settled about 6 months ago.  A similar size brand new one bedroom in Opera, which I feel is a better quality development is a better location, recently sold for $415,000 on a midlevel floor.  A floor plan for the Opera apartment is below.  When you compare the apartments side by side, you can see that the Opera living room space is bigger, and the design is better.  Opera even has a walk-in wardrobe and a separate laundry, plus more storage cupboards, and an island kitchen bench.  (It is also better quality, for example, deducted air conditioning.)

So make sure you compare what is currently happening in the market, for existing apartments, before buying in a risky new off-the-plan development.

Is there an oversupply of apartments in Brisbane?

"Brisbane’s high-rise apartments have been growing at a rate of 34% to 43% each census since 2001. This year alone, Brisbane has had 9,000 new apartments supplied, which is a massive 200% increase since 2015. As a result, Brisbane currently has a huge supply of new apartments, and is evidently oversupplied in popular inner-city suburbs such as Fortitude Valley, Newstead and West End.

However, over the past 12 months, there has been a large reduction in apartment building approvals as more developers have become fearful of the current market. At the moment, 38% of projects with development approval have been deferred indefinitely. Larger developers are even opting to land bank and sell existing projects as they fear getting stuck with a partial apartment development. This is now contributing to Brisbane’s stalling apartment price growth in the densely populated suburbs."

See https://www.validum.edu.au/brisbanes-apartment-oversupply-mean-property-investors-real-estate-agents/

Poor Urban Design for South Brisbane and West End

As previously reported, the government has released a "master plan" for South Brisbane.

The plan has been widely criticised.  In my view, it is a risk buying off-the-plan in South Brisbane and West End at present.

Another Pradella West End Development

Pradella has started marketing a new development on the large parcel of land it has accumulated in West End.  This development is being promoted as Gardens Riverside West End (although it is not river front, and has a road and the Waters Edge buildings between it and the river, and it is a long walk from the main shopping and restaurant street in West End).

There appear to be many more Pradella buildings planned for this plot of land in West End.

Pradella developments

Pradella has a number of apartment developments in Brisbane that are currently being marketed.  These include:

Riverside, West End
1 bedrooms from $400,000
2 bedrooms from $540,000
3 bedrooms from $929,000
These apartments will be located behind the Waters Edge complex.  Project website.

Skyview, Kelvin Grove
1 bedrooms from $335,000
2 bedrooms from $524,000
3 bedrooms from $789,000
Settlement expected late 2014.

Canvas, South Brisbane
1 bedrooms from $346,000
2 bedrooms from $575,000
Settlement expected mid 2014.

Urban Edge, Kelvin Grove -- development completed
1 bedrooms from $429,000
2 bedrooms from $539,000

Waters Edge, West End -- development completed
2 bedrooms from $600,000
3 bedrooms from $889,000

Parklands at Sherwood - development completed
from $395,000

The Glass Factory Apartments in West End - Sold Out

CBRE was marketing The Glass Factory at West End.  It is reported as being sold out.  The current website states:

"West End’s fastest selling boutique development is now 100% SOLD.  After an incredible response from the market, the limited opportunity to purchase an apartment within The Glass Factory has passed."

Here is a price list from August 2013:

Soda Apartments, South Brisbane

A new development at South Brisbane is in pre-sale, Soda Apartments.  Lifestyle video here.

The building is 20 storeys, with 131 apartments.  It is behind Fish Lane Apartments, and is located at 27 Cordelia Street, which is a busy street leading on to the Go Between Bridge.  (Soda will impact the apartments on the northern side of new Fish Lane apartment building, which can be seen on the left in the rendering below.)

• 19th Floor, 2 bed, 1 bath, 71 sqm, apt 1906 = $510,000
• Apartment 608, 2 bed, 2 bath, 90 sqm, no view = $595,000
• Apartment 602, 1 bed, 1 bath, no view = $375,000
• Apt 604, 1 bed, 1 bath, no car, no view, 64 sqm = $340,000
• Apt 1908, 3 bed, 2 bath, 190 sqm = $1,650,000

This pricing looks expensive to me!

South side apartment developments

I received an email from an agent selling apartments off-the-plan, listing four current projects.  Here are the details that were sent to me.

Fish Lane Apartments

-          48 Apartments at corner of Melbourne and Cordelia Street, South Brisbane;

-          Brisbane State High School catchment area

-          Currently under construction (completion to 5^th floor) and expected settlement on December 2013.

-          Bosch appliance (gas cooktop, microwave, oven, dishwasher) and dryer inclusive

-          One bedroom apartments with car – sold out

-          Two bedrooms two bath one car apartments North East city view facing Level 5 from $595,000

Edge Apartments 

-          48 Apartments at Manning Street, South Brisbane

-          Brisbane State High School catchment area

-          Currently complete demolishment and expected settlement late 2014

-          Bosch appliance (gas cooktop, microwave, oven, dishwasher) and dryer inclusive

-          One bedroom apartment with car – sold out

-          Two bedroom two bath one car apartment South-West facing Level 1 and 2 from $555,000

-          Current promotion with $25,000 cash back at settlement or $10,000 cash back and full furniture pack

Arena Apartments 

-          191 Apartments at Edmonstone Street, South Brisbane

-          Brisbane State High School catchment area

-          Currently commence construction, expected settlement Dec 2014 to Feb 2015

-          Bosch appliance (gas cooktop, oven, dishwasher) and dryer inclusive

-          One bedroom apartment with car - $390,000 Only two left

-          Two bedroom one bath one car - $520,000 at Level 5

-          Two bedroom two bath two cars with 86m2 internal and 45m2 court yard - $645,000 at Podium Level

-          Three bedroom full upgrade Skyhomes with three cars - $1.45m, $1.7m and $1.75m three available

Glass Factory

-          47 Apartments at Vulture Street, West End

-          Brisbane State High School catchment area

-          VIP Launching on 7^th September

-          One bedroom with car from $370,000

-          Two bedroom two bathroom with car from $555,000

-          Three bedroom two bath two car with city view at high levels from $825,000 

Vida West End

PointCorp is developing an apartment complex at 101 Riverside Drive, West End.  This is next door to Pradella's Left Bank development, and near to Pradella's Tempo development.

This new development is being marketed as Vida.  It consists of two towers of about 10 floors each, with about 150 apartments.  Some apartments will look West across the river.  About half the apartments will look East towards West End.

The Courier Mail says that for the apartments on the riverside, 1 bedrooms will be from $460,000; 2 bedrooms from $660,000; and three bedrooms from $1.2 million.  It will be interesting to see how expensive the apartments on the higher floors will be.

Compare a recent listing in Left Bank next door -- two bedrooms on a lower floor with river views for $599,000.

New Apartment Developments in Brisbane

New developments:

• 38 High Street, Toowong
• Arena South Brisbane
• Riverpoint, West End
• Urban Edge, Kelvin Grove
• Park at Newstead
• Pinnacle at Hamilton
• Vida, West End
• Hamilton Reach
• Mowbray, East Brisbane
• Aspect on Benson, Toowong
• Savoir Faire, Milton

The above is only a partial list of new and off-the-plan apartment developments in Brisbane.  Take care when buying new and off the plan, as often the pricing is much higher than existing near-new apartments in a similar location.

It is also worth reading the following book, available on the Amazon Kindle and Apple stores.  

Buying An Apartment Off The Plan in Queensland - A Guide For Successful Buying

River Point on Ferry and Flow

Stockwell is marketing 50 new apartments at West End, in its River Point development, called River Point on Ferry.  Prices range for $560,000 for a 1 bedroom apartment up to just under $2M.

Nearby, Pradella is marketing apartments in Waters Edge, which has been completed but still has unsold developer stock.  Apt 1606, 2 bedrooms, is listed at $619,000.  Apt 2209, 2 bedrooms, is listed at $699,000.  Apt 1111, 3 bedrooms, is $929,000.  A neighbouring development by Pradella, Flow, also has developer stock for sale.

West End High Rise

The State Government has allowed 12 storey apartment buildings to be built in West End, against local community interests, and as a reward for loyal property developers.

"The Newman government has cleared the way for 12-storey buildings in the part of West End opposite Toowong by ticking off on changes to the local plan.  Deputy Premier Jeff Seeney yesterday confirmed he had approved the reinstatement of parts of a Brisbane City Council plan that had been blocked by the former Bligh government."  See Brisbane Times

FKP's SL8 Monster

FKP developed a project in West End, called SL8, a few years ago.  It is interesting to look at how it has performed.  FKP advertised this as an architect designed building in a good location.  In my opinion, the design was poor, and the location (even though in West End) is not great.

Here are the recent resales of apartments in SL8 (all two bedroom apartments), 8 Musgrave :

• Apt 146, sold off-the-plan for $545,000 in 2007; resold for $475,500 in May 2012
• Apt 123, sold off-the-plan for $585,000 in 2008; resold for $449,000 in November 2011
• Apt 174, sold off-the-plan for $725,000 in 2007; resold for $600,000 in November 2011
• Apt 144, sold off-the-plan for $765,000 in 2008; resold for $610,000 in October 2011
• Apt 214, sold by the developer for $520,000 in July 2010; resold for $440,000 in September 2011

Who said you can't loose buying property?  Every purchaser who has resold in SL8 has lost money.  And don't forget, the above does not take into account stamp duties and real estate agent fees.  Most buyers lost more than $100,000 when reselling.  If the buyers borrowed 80% of the purchase price, the buyers would have lost 100% or more of their equity.

Why such massive capital losses?  The property market has clearly gone into negative territory.  But a key factor here in my opinion is that the developer priced the apartments above the market value even in 2007, promoted the development heavily (including website keyword optimisation), and delivered a mediocre product.  (Have a look at the comments regarding this FKP advertorial.)  Take extreme care when buying off the plan!

More Affordable and Smaller Apartments

The Courier Mails reports that developers are building apartment buildings with smaller apartments, because that is what is selling today.  Does this mean that there will be a shortage of larger, family sized apartments in Brisbane in the future?

From the Courier Mail:

"Developer FKP recently withdrew a development application from Brisbane City Council for a future tower at its Gasworks development at Newstead.  It was lodged in 2009 and executive director Mark Jewell said it needed to be revised in line with the present market. The tower, known as Parkside Boulevard, will be released in the next three to five years.  Two weeks ago, the same developer released its reworked masterplan for The Mill development at Albion.  A change in market conditions early in 2010 saw it refund deposits for units already sold off the plan and designs changed. It has now launched the first tower and is waiting for sufficient pre-sales before it starts construction.

In Brisbane's CBD, Melbourne-based developer Billbergia unveiled plans to develop the failed Vision site into a 90-storey residential tower with about 800 apartments, a hotel and a 34-storey commercial tower.

Bellise at Fortitude Valley had initially been planned as a 199-unit development, but had received a new approval to reconfigure it to a 228-unit development of smaller product.

Citimark's Angus Johnson said the launch of its 200-unit Rivana development at Hamilton would wait until the market was right.

While Stockwell plans to proceed with the 150-unit stage two and 50-unit stage three of its Riverpoint development at West End, it has not yet advised a time frame.

Sunland has preliminary approval for the 47-storey Carrington in Alice St in the City. Managing director Sahba Abedian said there were conditions attached, which they were working through."

South Bank to Expand?

The Queensland State government plans to expand South Bank upriver, and into South Brisbane & West End.  This will involve the purchase of the Parmalat milk premises.  See story here.

"The South Bank Corporation would oversee the expansion of the parklands precinct from 42ha to 69ha. It would include a 50m pool and aquatic play area, green space, picnic and barbecue areas, markets and a retail and dining precinct.  There would also be new commercial and residential buildings to offset the cost of public infrastructure.  Ms Bligh said one of the features of South Bank 2 would be a new cultural institution, with a national indigenous museum favoured by authorities.  She said the plan envisaged Hope St and Montague Rd becoming "vibrant destinations" similar to James St in Fortitude Valley and Little Stanley St in South Brisbane."

It looks like a great plan.  But if the government changes at the next election, this is unlikely to go ahead because Campbell Newman said that he wants to abolish South Bank Corporation.

Finding A Great Apartment to Rent in Brisbane

Introduction


Finding a good apartment or home unit to rent in Brisbane is not easy, particularly in January and February when the demand for apartment rentals is high and many tenants are looking.


In the best buildings, the existing tenants do not often leave, and when they do move out, the apartment is often snapped up quickly. For the better buildings, a large percentage of the apartments are occupied by the owner, and so are not rented out.   Also, onsite managers often control the rental rolls, and don't often advertise on the usual property websites (as they don't need to do so).  Some have their own website.  Also, onsite managers may have a relationship with executive relocation services, and the better apartments may be provided to corporate tenants.  For the mid-quality buildings, many apartments are furnished and rented on a short term basis, sometimes even overnight.  Thus, there may be few apartments available for rent. 

At one time, a good specialist website for apartments was http://www.seqrents.com.au However, it seems that some buildings are not using this site anymore, or are not bothering to update their listing on this site. So, although useful, it is less useful.


A newer website that has a number of rental listings is CityApartmentSales, and is used by a number of the onsite managers to list apartments for rent.  The largest number of listings are located on RealEstate.com.au, but a number of onsite managers do not use this website.  Also, try Central Apartments for rentals in Pradella buildings.

You have to find out how each manager advertises his/her vacancy.

Generally, you want to avoid any buildings managed by Oaks, as they focus on short term hotel style rentals.

This website has a list of most city apartment buildings, with useful information and links about them. Also, try this customised search engine.

Downtown Brisbane:

If you want to live downtown, then I recommend the Admiralty Precinct. This comprises three first-tier buildings (Admiralty One, Admiralty Two and Admiralty Quays), plus River Place (good location, not as good quality) and Skyline (second tier).  Recently partially opened just behind these buildings is Meriton's Soleil (budget quality).

Admiralty One is good value, and has some of the largest two bedroom apartments in Brisbane, but is a smaller building.  It is direct river front - http://www.admiraltyone.com.au/

Admiralty Two also has good sized apartments, and the building has great facilities. http://www.admiraltytwo.com.au/

Admiralty Quays is newer, and has a great pool, but the apartments are smaller than the two Admiralty buildings listed above, and it is more expensive. http://www.admiraltyquays.com/

Nearby on the river in the city is River Place, that is not as good quality, but is likely to have availability as this is a large complex. Careful of Storey Bridge noise. Great views.  Great pool.

Soleil has only just opened.  It is currently the tallest building in Brisbane.  A large building with over 400 apartments, but less than half have been sold.  In late December, the Soleil website said that there were currently no apartments available for lease.
On Alice Street in the city, if you can get an apartment in Quay West, that is fantastic, as it has park and river views.  About half the apartments in this building are hotel managed, so it is easy to get short term accommodation in Quay West, but difficult to find an apartment for a long term lease.  All apartments are privately owned. You want to get above level 7.

For an inner city downtown building, Metro 21 is one of the better quality buildings. It has only 4 apartments per floor -- and tries to be more upmarket so is better than most buildings that aim at students -- it seems to have better availability, and some of the two bedroom apartments have three bathrooms. The baloneys are large:
http://www.realestate.com.au/realestate/agent/metro+21+brisbane/mlibri
and http://www.metro21apartments.com.au/

M on Mary has recently been taken over by new management, so it will be interesting to see what happens in this building.  It was not high on my list previously, but that may change with the new management.

Parklands at Roma Street also has some good apartments.

SouthBank


I recommend Arbour on Grey at SouthBank: http://arbour.com.au/cms/welcome.html

Also, Saville (Mantra) at SouthBank is one of the nicest buildings if you get a river facing apartment.  The apartments are level 8 and above.  Below level 8 is a hotel.  The best thing to do here is call to find out availability.  Telephone 07 3305 2559

West End


There is likely to be some availability in some of the riverside West End apartments.  These include Waters Edge, Flow, Koko and Left Bank.


Some of the better apartments not on the river road include SL8 and Tempo.


In my view, all of the above West End apartments are too isolated.

Apartments in Suburbs

The suburbs that I recommend, due to location, transport and large number of better quality apartments, are Toowong, St Lucia, Taringa, Indooroopilly and possibly Milton and Hamilton.  I don't recommend Chermside.

In Indooroopilly, there has been very little recent construction.  Two of the newer, quality buildings Riva and Ciana.

Riva has apartments with great river views. It is a quiet building, with a pool, and is close to the train station and Indooroopilly Shopping Centre.  It has good onsite managers, but apartments rarely become available here.

Ciana is a larger new complex, in a central location, with many large apartments. There is a pool and gym, plus a bowls club! 

The newest complex in the Toowong / Taringa area is Fresh.  This complex has two pools, a gym and great gardens, and a large number of apartments are owned by super funds and thus are rentals.  Try here.

Next door to Fresh is Encore, which is a relatively nice complex, with good pricing (but not as nice as Fresh, and some of the apartments are small).  This complex flooded in January 2010.  

St Lucia is harder to find quality -- there are few onsite managers. So you have to try local real estate agents.

If you want an apartment complex that feels more suburban, then Parklands at Sherwood is a great choice. Many apartments have park/rural views, and there is a great pool and bbq area.

Nearby is Tennyson Reach, where you can get a large new apartment on the river. This is a new complex, but (apart from river views) not a great location.  It was badly flooded.  You can rent a high quality apartment at a reasonable price here, if you don't mind the location.

Apartment Rentals In Inner Brisbane

Top 10 most expensive inner-Brisbane suburbs for unit rentals: RP Data

Ugly West End Tower

Developers Aria are planning an ugly high rise tower in West End. It will be 30 storeys, with 275 apartments. Local residents are not happy. It is clearly out of character in the area. What facilities are the council building for all the new residents coming to West End? None.

Maybe buyers and renters should avoid Aria's other projects as a sign of protest?

Allure West End

Another out of the way development in the industrial area of West End -- Allure. Before buying, check out the near by Ferry Road apartment buildings, and look at the price drops for those apartments.

Allure has one bedrooms from $375,000 and two bedrooms from $489,000. Sounds expensive to me. Take care!

Montague West End Gone?

What has happened to Montague at West End? After a blitz of advertising, it has now seemingly disappeared. The project website has been down for most of this year. Once called "The Wave", maybe this project should now be called "The Muddy Hole".