The Residences at The Westin

The Empire Square "The Residences at The Westin" website has gone live.

www.empiresquare.com.au

AFR - RP Data Brisbane Apartment Survey 2007

Building	Number of Resales	Median Annualised Capital Growth	Median hold period
Riparian Plaza	4	24.8%	2.8 years
Grosvenor	7	11.9%	3.7 years
Admiralty Towers	10	9%	6 years
KoKo	15	7.6%	2.3 years
Quay West	13	6.1%	11.1 years
Festival Towers	61	2.3%	3.9 years
Charlotte Towers	13	0.8%	2.9 years

Capital Growth is only for apartments that were sold in 2007. The median hold period includes time held from original off-the-plan contract date to sale.

Auction - Ray White Spectacular

Auction - 20 April 2008

112 properties listed for sale, including 26 vacant lots on Russell Island and 6 rural properties.
10 out of 80 residentials sold prior to auction
18 out of 70 sold at auction
21 sold within a week after auction.

According to Ray White, the day proved a good "educational process. .. Buyers are more discerning. ... some vendors are not yet in tune with the slight change in the market."

There were about 10 apartments that went to auction, including one in Skyline and some in Aurora and Festival.

Not so gloomy?

A recent Australian Financial Review article (16 April 2008) has the headline - "Gloom on house prices may be misplaced."

"In Australia, the long-term trend is very much the reverse [of the United States] - not enough housing stock to meet strong underlying demand for housing. This is the trend in both the home purchase and the home rental markets. In the short term, buyers are keeping their powder dry, following aggressive interest rate rises of the past six months. But this temporary stalling will do nothing to deflect the pent-up demand for Australian residential property that has been building over recent years - or the chronic under supply of housing stock that has developed since 2000. ... That said, there is a growing view that interest rates in Australia have now peaked. If this is right, the next leg up in residential property could come sooner than you think."

Market Comments

From the recent RP Data Property Pulse:

For those property owners who are considering selling, it would be a good idea to hold off if possible. There are a lot of properties listed for sale and fewer buyers in the market. Those buyers that are willing and able to purchase now have the luxury of time on their side, which means more negotiation, higher levels of discounting and longer selling times. Selling a property now is likely to result in a less than optimum sale price.

On the flip side, the time to buy may be ripe. We can expect the savvy investor to be on the prowl and owner occupiers who have their finances in order may also be stepping up to the plate. Times like these can be rich pickings for knowledgeable buyers who have the financial clout not to be deterred by further rate rises. These buyers will be making low offers and will be largely inflexible in their negotiations. The primary target will be properties that have been up for sale for more than two months or distressed sales.

Forced sales are likely to show a further increase during 2008. Those mortgage holders who have been holding out for a rate fall will be bitterly disappointed. Instead, they will be looking at steady or rising rates most likely into the next year. Many will be unable to withstand the sustained financial pressures.

Recent Sales Website

The Ray White - Chris Hinds website has recent apartment sales in Brisbane.

Examples:

Casino Towers, Apt 2301, 2 bed, 2 bath, 2 car = $660,000
Aurora, Apt 289, 2 bed, 1 bath, 1 car = $425,000

Also, building information.

How to Find a Great Apartment to Rent in Brisbane

** Updated post click here **

It is becoming harder to find a good apartment to rent in Brisbane. Not only are rents increasing, but there are few new buildings opening over the next few years and a number of existing buildings are being turned into short stay "hotels".

Good apartments are often snapped up quickly. Also, onsite managers control the majority of apartments for rent in most buildings, and don't often advertise on the usual property websites (as they don't need to do so). Some have their own website. Onsite managers may have a relationship with executive relocation services that are given preference.

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

If you are looking for a place to rent a good inner city apartment, I believe that this is one of the better sites to look at: http://www.seqrents.com.au

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

You want to avoid any buildings that are primarily short stay buildings (unless of course you want to stay for 2 nights to 2 months.) So avoid buildings managed by Oaks, as they focus on short term hotel style rentals. Look here if you want a short stay apartment in Brisbane.

There are some cross-over buildings, that are officially hotels but that have apartments on higher floors. Usually, the apartments in these buildings have the option of receiving hotel services. Two examples are Quay West and Saville South Bank, which are good places to live.

Look around -- the rents for some of the newer buildings are much higher, and the apartments are smaller, than in buildings that are five to ten years old.

Some places to look:

In the downtown area:

Admiralty One, is good value: http://www.seqrents.com.au/admiralty/

Admiralty Quays and Admiralty Two are also good quality. At present, I think some of the best value apartments for rent are in Admiralty Two.

Admiralty One (also called Admiralty Towers), Admiralty Two and Admiralty Quays were all developed by the same developer and are direct river front, an easy walk to the downtown. They all have one or more swimming pools.

Next door to Admiralty Quays on the river in the city is River Place , that is clearly not as good quality (it is a Devine built building), but is likely to have availability as this is a large complex. Careful of Storey Bridge noise. Great views. Recently taken over by Mint Apartments, which is doing short stay and hotel rentals.

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. It does not do short stay. The balconies are large: http://www.realestate.com.au/realestate/agent/metro+21+brisbane/mlibri
and http://www.metro21apartments.com.au/

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. Half of this building is a hotel managed by Mirvac. All apartments are privately owned. You want to get above level 7.

It is also worth trying some of the off-site agents:

• Harcourt
• Ray White CBD
• Ray White Projects
• Blocksidge
  

In my opinion, some of the buildings to avoid (see prior posts) are

• 212 Margaret
• Festival Towers
• Charlotte Towers
  
• Aurora
• River City
• Felix
• Casino Towers
  

In SouthBank:

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

Also, Saville at SouthBank is one of the nicest buildings if you get a river facing apartment: http://www.seqrents.com.au/saville/index.htm

I know people at LeftBank at West End who like living there, but it is a little bit far to walk to any shops -- it is in an industrial area: http://www.seqrents.com.au/leftbank/

In the suburbs:

In the back of Toowong, Encore is a relatively nice complex, with good pricing (but currently construction next door, so take care of which apartment). http://www.seqrents.com.au/encore/

St Lucia is harder to find quality -- the quality is there, it is just that there are few onsite managers and it is harder work to find good available apartments.

In Indooroopilly, Riva is the only quality building -- again, some noise in some apartments due to nearby construction. Some have river views. http://www.seqrents.com.au/riva/

There are very few vacancies in quality apartments in the suburbs.

Brisbane Apartment Search Engine

Click here for a specialist search engine with information about Brisbane apartments.

Margaret Street Developments

Margaret Street has two new buildings under construction. They will impact:

• Oaks 212 Margaret
• River City Apartments
• Charlotte Towers and River Park Central
  

Meriton's Brisbane

Triguboff still a fan of Brisbane

17 Apr 2008 | The Australian Financial Review | Michelle Singer

"The Sunshine State agrees with Meriton and billionaire boss Harry Triguboff's approach to development..."

-----------------

This recent story in the AFR states that Meriton's tower on Adelaide Street in Brisbane will have 403 apartments and 200 serviced hotel suites. There will be a 10 level underground carpark. Construction will commence this year.

Meriton's second Brisbane project, the Hercshel Street building, will be up to 90 storeys.

Mirvac's Tennyson

According to the Australian Financial Review, a penthouse apartment in Mirvac's Tennyson Reach development recently sold off-the-plan for $5.25 million. It is 731 sqm. The second stage (92 apartments) is reported to be 25% sold.

Collier's Opinion of Residential Development Market in Brisbane

• Experiencing differing levels of demand for varying price segments, ie $1m - $1.5m the best, $600K - $900K poor.
• Projects with long settlements tracking the best.
• Slow sales for projects with short construction timeframes, are midway through construction or are completed.
• Supply levels are fine and should continue to reduce as a lot of proposed developments do not get off the ground.
• Fundamental property drivers other than interest rates are very good and improving however negative sentiment from bad press is severely affecting this.
• Agent incentives and price rebates / negotiation items are increasing however we see this a short term trend as the major driver of this related to June 30 reporting. Most projects have achieved good sales over the past 24 months and as such are in strong positions. Extended negative reporting and sentiment could however increase these past this date.
• Development site market has softened with supply levels increasing dramatically in the last two months. However buyers are taken a “sit and watch” approach.

See report from 2008 Residential Market Summit (March 30 & April 1, 2008)
http://www.affordablehome.com.au/files/pdf/Colliers-International-Advanced-Residential-Marketing.pdf

also, see ANZ's report - Housing Supply Shortfall, from the same Summit.

Evolution Reviews

The Evolution Apartment building at North Quay in Brisbane is now complete and people have moved in.

Unfortunately, it is being run as a short term and holiday "hotel". You can book at wotif.com and stay the night. Or you can spend more than $2 million and buy the penthouse and share your facilities with overnight visitors.

I visited last week, and these are my opinions.

General:

The views from some of the apartments are magnificent, especially from the higher floors and those looking down the river in the South Eastern direction.

The quality of finishes is generally good. Ducted air-conditioning, good kitchens, floor-to-ceiling tiles in bathrooms, plenty of cupboard space in most apartments, good security, nice windows and sliding doors.

Two elevators, both spacious.

I didn't like the car parking -- the driveways were too narrow.

The pool area on level 6 is relatively nice. A big outdoor space, with bbq and good light. An indoor kitchen nearby. Also, a TV room. The gym was very small. When I visited, the pool area (but not the pool itself) was getting a lot of use. A large group having a bbq and another in the TV room.

One feature that the developer highlighted in advertising was the communal sky lounge on level 36. It has a quality kitchen and pool table, plus small TV and lounge area. It is not a large area overall. But, if you wish to use it, you have to pay a $200 fee to the on site manager!

I did not like the noise from the South East Freeway, which could be heard in all apartments that have river views. It is one of the busiest roads in Brisbane, and is directly below the building (between the building and the river). This is a major drawback. Some apartments had double sliding doors, which cut down the noise when closed. Sitting on the balcony was very noisy.

Type A Apartment Two bed, two bath. (84 sqm internal, plus two balconies, with total space of 102 sqm)

Overall, this apartment had a good feel. It seemed larger than 84 sqm internal. The main balcony was a good size - it looks one direction along the South Bank river reach and the other direction along the Coronation Drive river reach.

The apartment has a westerly aspect, which is a negative. The living room / dining room is, however, small. One couch was pushed up against the kitchen bench, and the dining table pushed up against the wall.

There is a large entry and hallway, that includes a good study desk.

The bedrooms are relatively separated. The main bedroom is a good size with a large ensuite. However, it looks west. The second bedroom gets little light, as its aspect is blocked by the main bedroom.

Warning: On most floors, this apartment is blocked by the office building next door -- which is right up along side. This has a major negative impact on the second bedroom, and a negative aspect on the main bedroom. The second bedroom in the apartment that I saw had very minimal natural light and no view at all.

Type B Apartment Two bed, two bath (76 sqm internal and 10 sqm external - total of 86 sqm)

Not a large apartment, and about 5 sqm is hallway. Small kitchen. Small balcony. Bedrooms on each side of living room, and directly off living room (so less privacy). This apartment had a cramped feeling. So small that there was no room for a bath -- two showers but no bath. The views were good, South East down the South Bank river reach. It is best to be above level 15 or so, otherwise the Federal Court on the other side of the road may impact views, but not dramatically. Main bedroom was a good size with good views from large windows. Overall, too tiny.

B type apartment on 11th floor, 115, for sale at $760,000. This is way too expensive in my opinion for this apartment.

Type C Apartment Two bed, one bath (64 sqm internally plus 13 sqm balcony = total of 77 sqm)

There are two types of C type apartments, next door to each other. One is the mirror image of the other.

Surprisingly, I liked this apartment the best.

It is very small. There is no ensuite. There is a shower but no bath. The main bedroom is behind the 2nd bedroom and so has a small window and little light.

However, as soon as you walk in, you see the view. It looks South East down the South Bank river reach. It is a surprisingly good view from higher floors. However, you must be above level 15 or so, otherwise the Federal Court on the other side of the road will impact views dramatically. The balcony is a good shape and size. Not impacted by the Western sun.

Keep in mind that as the office building under construction at 402 George Street grows, these apartments will loose a lot of their city views. But this will not impact the river aspect.

C type apartment on 18th floor, 183, for sale at $650,000.

Type D Apartment One bed, one bath (53 sqm internal and 9 balcony - 62 sqm total)

Very small. Has Western aspect. No river views. Views mostly of Roma Street railway goods yards. No carpark included. Views will be impacted by proposed Meriton Tower on Herschel Street and office building being constructed on George Street. Kitchen is just a wall of cupboards. This apartment has no redeeming features at all.

D type apartment on 11th floor, 111, for sale at $414,000

There are a number of "sub-penthouse apartments" for sale as well. For example, apartment 344 on level 33 is a 2 floor apartment, 2 bedrooms upstairs and living kitchen downstairs. 144 sqm in total, so it is a good size, with a good aspect. However, the balcony is glassed in, so has a strange feeling. But the price -- $1,700,000 for a 2 bedroom apartment !!!

More details on the "sub-penthouse" apartments here.

Overall, this building has some nice apartments and some horrid apartments. It is ok for a short stay, for example, if you had to live here for 3 months. But I would not want to live any longer. The apartments with the good layouts and aspects are too small, and the larger apartments on higher floors are too too expensive. Many apartments have negatives -- too small, western aspect, built up against another building or poor layout. Over time, I suspect that this building will not live up to its promises and will become a place for students or short term stays only. I will avoid Evolution.

Prior posts on Evolution are here.

Skyline Falls

Skyline apartment, which is supposedly an exclusive residential building, is doing short tern and vacation rentals.

See Check-in.com.au or wotif.com

Not very good if you spend a million dollars on your apartment and you have the football team staying next door.

And for "hotel" guests, take care. This is not a hotel. The "reception" is open limited hours. Don't try to check in at reception Saturday afternoon or Sunday, and don't try to speak with anyone in management after hours either if something goes wrong in your apartment.

Empire Square - Residences

Floor plan for Westin Residences - Empire Square - at the top end of Elizabeth Street, Brisbane

Off-the-plan marketing techniques

Some interesting articles for developers regarding off the plan marketing. Useful for buyers to read, so you don't get tricked...

• The pricing process
• The display suite
• The website
• Branding

These are from the Residential Developer Magazine. (Distribution: For a list of newsagent stockists, click here. For a list of companies receiving the magazine via direct mail, click here.)

South Point at South Bank

Apartments and hotel rooms, at South Bank -- will be developed on the Collins Place site in Grey Street behind the Galleria.

Video

South Bank announcement

Photos

News report

Stanley Cove - South Bank

Concepts diagrams of Stanley Cover development at South Bank, which will be located in from of the Park Avenue apartment building, on the river:

http://www.southbankcorporation.com.au/about_us/stanley_cove_boardwalk_redevlopment

Brisbane Apartment Pipeline

As far as I can tell, these are off-the-plan apartment sales that will be launched this year in Brisbane (larger apartment developments only). I have put in bold those that are in the downtown area.

1. Trilogy Hotel - 192 apartments
   
2. Trilogy Skyhome Apartments - 109 apartments
   
3. Westin Residences (Empire Square) - 104 apartments
   
4. Waters Edge at West End - 220 apartments in the first 2 buildings to be released
   
5. Union at Milton - 213 residential apartments and 127 hotel rooms
   
6. French Quarter - about 70 apartments and 150 hotel rooms
7. Hamilton Harbour - about 250 apartments
   
8. Meriton Tower - 200 serviced apartments plus 200 residential apartments
9. The Mill at Albion
10. Waterfront Newstead - 631 apartments
    

Current off-the-plan buildings being marketed and under construction

1. Vision (400 apartments)
   
2. Iceworks at Paddington (47 apartments)
   
3. Parklands at Sherwood (82 apartments for sale now; 211 apartments planned in total)
   
4. Tennyson Reach (393 apartments)
   
5. SL8 (112 apartments)
   
6. Ciana Indooroopilly (132 apartments)
7. Portside Hamilton
8. Riverpoint West End (280 apartments)
   
9. The Macrossan (42 apartments)
   
10. SW1 (57 apartments)
11. Fresh Toowong (92 apartments)
    

Current completed buildings with unsold apartments

1. Skyline
2. M on Mary
3. Evolution
4. Koko
5. Tempo
6. Flow
7. Vue
8. Aurora Skyhomes
9. Pinnacle Parklands

From recent Collier's reports: "With three new projects bringing only 100 new units to the market in total, we now have our lowest unit supply since March 2004. Based on this quarter’s demand level of 104 units per month, we currently have enough stock in the market to last until May 2008."
"As a result the Dec 07 quarter has closed with 754 units available for sale, translating to 8.9 months of supply based on current demand levels. This supply is not evenly spread however, with the north precinct left with only 2.9 months of supply and the west with only 3.2 months, meaning if current demand levels remain constant both of these precincts will be completely sold out by the end of April 2008, unless new projects are released within these areas."
"Rental unit vacancy rate for Inner Brisbane sits at 1.3%, showing a considerably tighter rental market than the remainder of Brisbane which shows a rental vacancy rate of 2.2%."
See, e..g., http://www.colliersresidential.com/files/research/brisunitreport_dec07.pdf

Union Development - Milton Railway Station

From the FKP website:

http://www.unionmilton.com.au/

"Union is proposed to incorporate:

• 30-storey residential building comprising 213 – one, two and three bedroom apartments
• 127 room, 4.5 star hotel
• 10-storey office building comprising 13,500 sqm of net lettable floor space
• Prime podium and street frontage retail
• Multi-million dollar Milton Railway Station upgrade."

"Views to the river. Views to the city. View to the hills. Bring your worlds into Union.

Unrivalled 360 degree views of Brisbane and beyond will be the focal point of Union’s proposed 30-storey residential building. As a stunning and sleek landmark in Milton, Union will offer a location free from the clutter of neighbouring buildings.

Residential opportunities at Union are proposed to commence from Level 8 and will comprise an array of architecturally sophisticated options, including:

• proposed terrace apartments overlooking Railway Terrace
• proposed one bedroom apartments up to Level 22, and a variety of two and three bedroom apartments with a bird eye views of Brisbane up to Level 30.

For those seeking the pinnacle in residential apartment living – a limited number of two storey, three bedroom apartments are also proposed."

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.)

Losses at Devine's Festival Towers

As far as I can tell, many early off-the-plan purchasers of apartments at Devine's Festival Towers at 108 Albert Street, Brisbane have made no money (or losses) on resales, particularly if you take into account stamp duty and agents fees.

Some examples:

• Apt 3601, purchased off-the-plan in April 2004 for $468,000, resold in October 2007 for $495,000
• Apt 3209, purchased off-the-plan in September 2003 for $491,000, resold in May 2007 for $505,000
• Apt 3201, purchased off-the-plan in September 2003 for $457,000, resold in July 2007 for $460,800
• Apt 3109, purchased off-the-plan in September 2003 for $483,000, resold in October 2007 for $475,000
• Apt 3101, purchased off-the-plan in September 2003 for $455,000, resold in March 2007 for $415,000
• Apt 3003, purchased off-the-plan in September 2003 for $414,000, resold in October 2007 for $435,000
• Apt 2903, purchased off-the-plan in October 2003 for $380,000, resold in October 2007 for $418,000.
• Apt 2902, purchased off-the-plan in September 2003 for $440,000, resold in October 2007 for $485,000
• Apt 2601, purchased off-the-plan in October 2003 for $441,000, resold in November 2007 for $460,000
• Apt 2501, purchased off-the-plan in October 2003 for $443,000, resold in February 2007 for $440,000
• Apt 2403, purchased off-the-plan in November 2003 for $369,000, resold in November 2007 for $435,000
• Apt 2303, purchased off-the-plan in September 2003 for $365,000, resold in June 2007 for $389,000
• Apt 2505, purchased off-the-plan in November 2003 for $301,000, resold in April 2007 for $294,500
• Apt 2404, purchased off-the-plan in September 2003 for $293,000, resold in November 2007 for $323,000
• Apt 2105, purchased off-the-plan in September 2003 for $296,000, resold in October 2007 for $310,000
• Apt 2006, purchased off-the-plan in September 2003 for $300,000, resold in October 2007 for $305,000
• Apt 1706, purchased off-the-plan in October 2003 for $296,000, resold in September 2007 for $305,000
• Apt 1501, purchased off-the-plan in October 2003 for $407,000, resold in April 2007 for $417,000
• Apt 608, purchased off-the-plan in February 2004 for $398,000, resold in October 2007 for $410,000

So take care when purchasing off-the-plan. Not everyone makes money. And with M on Mary and the proposed Empire Square blocking views from Festival Towers, it could get worse rather than better over time for some owners.

Vision

"Vision has captured the imagination of Brisbane and has proved enormously popular with sales now at $250 million, with 70% of apartments already sold," Mr Chappell said.

"The pre-sales of apartments and the recent commercial sale shows the strength of the Brisbane market and confirms an enthusiastic acceptance of the project among future residents and investors."

See: http://blueprint.austcorp.com.au/edition-07/vision.html

New Apartment Prices in Brisbane

1. Trilogy Hotel Rooms (studios & two bedrooms)

• levels 36 to 47
• 16 apartments per floor
• sold fully furnished with 2 year rent guarantee
• hotel managed by Mirvac
• sizes range from 53 sqm to 89 sqm
• no balcony
• 3 elevators
  
• about half will have river views
• most do not have car parking
• completion about 2012
  

Average price per apartment on level 36: $639,000
Average price per square metre on level 36: $9,785

Average price per apartment on level 47: $695,000
Average price per square metre on level 47: $10,630

2. Empire Square (two and three bedrooms)

• levels 47 to 60
• 7 apartments per floor
• sold unfurnished
• hotel managed by Westin
• sizes range from 117 sqm to 150 sqm
• no balcony
• 5 elevators plus service elevator
• about half will have river views
• 1 or 2 car parks per apartment
• completion about 2012
  

Average price per apartment on level 47: $1,502,857
Average price per square metre on level 47: $11,336

3. Aurora Skyhome

• levels 64 to 65
  
• 5 apartments per floor
• sold unfurnished
• managed by Oaks
• 2 and 3 bed apartments
• four with river views
• 2 car parks per apartment
• completed in 2006
• Last year, apartment 643 on level 64 was listed at $1,095,000. 2 bed, 2 bath, 2 cars, 102 sqm internal, 125 sqm total, $8,760 per sqm metre

4. Pinnacle Parklands

• levels 4 to 12
• 5 apartments per floor
• range of sizes
• No river views - views of Roma Street Parklands
• completed 2007
  
• Last year, a 3 bed/2 bath/media room/3 car park display apartment about level 5 was being sold furnished at $1,675,000. 184 sqm internal, 257 sqm total, $6,517 per sqm.
  

5. Tennyson Reach

• five buildings, each around 10 floors
• some floors have 8 apartments, some 2 apartments
• range of sizes
• almost all have river views
• to be completed in about 2010
• about 1 elevator per 3 apartments per floor

Examples

• 2 bed, 2 bath, 111 sqm internal, 141 sqm total, 5th floor, $910,000 ($6,453 per sqm)
• 3 bed, 2 bath, 192 sqm internal, 227 sqm total, 4th floor, $1,320,000 ($5,814 per sqm)
• 3 bed, 2 bath, 189 sqm internal, 235 sqm total, 5th floor, $1,475,000 ($6,276 per sqm)

Water's Edge at West End

For a photo of the proposed development, see this Vox site.

104 Apartments for Bardon

First, there was Roma Street Parklands. Then Sherwood Parklands. My guess is that next, the Pradella Construction Group will launch Bardon Parklands. Pradella owns the Bardon Conference Centre.

"Brisbane City Council is assessing an application by the Pradella Group to rezone the 3.4ha site from a community purpose and conservation area for redevelopment. The proposal, lodged with the council in September 2006, features four three-storey buildings to house 104 apartments and 20 attached units, with 248 car parks."

See

http://mountcoot-tha.greens.org.au/media-centre/interviews/centre-rezone-ask-for-units

http://www.thebardoncentre.com.au/assets/bardon-map.pdf

http://www.pradella.com.au/web/pdf/news_2007_issue1.pdf

http://www.pradella.com.au/content/news/press_display.asp?id=141

Would you live in Charlotte Towers?

I visited Charlotte Towers recently. It was built and sold by Devine as an apartment building, and sold as "residential apartments". However, it is now an Oaks Hotel. There are still some people living here on a full time basis. But it is not nice. Four things that I saw on my visit:

• room service plates and trays left in the hall
• cleaners with trolleys blocking halls and elevators
• a hotel guest who was very frustrated, who had a bad check in experience, and could not find her way to her "room" - she took her frustrations out on me
• the driveway to the car park blocked with people trying to check in -- there were four cars trying to get in and two cars trying to get out -- but it was blocked by a car of guests checking in.

An agent said that it was better now, as the facilities got less use -- before Oaks, there were many students in the building, often illegally overcrowding apartments. Oaks, he said, is now focusing on short stays for executives. The agent said that Oaks had over 90% occupancy during the week.

Online, I could reserve a one bedroom apartment for $150 a night.

RP Data Report

RP Data reports that Brisbane Apartment prices increased about 28% last year. Growth, however, is slowing.

See http://apr.cpmresearch.com.au/apr/Portals/0/MR290208.pdf

This valuer's report is also interesting.

Brisbane Westin

The Empire Square development is now in pre-sales. It is called The Residences at the Brisbane Westin Empire Square.

"The building area will be approximately 85,000m2. It is designed to be 250 metres high with 68 storeys and 62 habitable floor levels. Currently there are only 2 other buildings in the Brisbane CBD of comparable height.

The building architects Cottee Parker Architects Pty Ltd have designed an iconic structure which will be a signature building in Brisbane, with an ultra-modern tower and timeless qualities adding to the elegance of the city skyline.

Internally, the design aims to create a pleasing and peaceful ambiance in keeping with the elegance of the structure, whilst providing modern and practical solutions.

The development will be located on a land area of almost 2,000m2 at the upper end and southwest side of Elizabeth Street Brisbane.

The building will also feature 23 floors of "A grade" office space from levels 5 to 27. The office section will have a separate foyer and dedicated lift bank.

The building will also incorporate 104 strata titled residential apartments over 16 floors from floor 47 to 62. The current proposal is to integrate the apartments within the ´5 Star Hotel´. Through the integration concept, the apartments will be complementary to the Hotel and benefit from a wide range of premium facilities offered by the Hotel including; swimming pool, gymnasium, sauna, steam bath, relaxation lounge, food and beverage, house-keeping and laundry services.

The development will provide a range of accommodation choices from two bedroom apartments (some with study) to three bedroom sky homes and double storey penthouses. Prices start at $1,300,000.

The Hotel will occupy 20 levels of hotel rooms and facilities, which will incorporate 306 luxury hotel rooms and suites, including a presidential suite overlooking South Bank.

Level 30 will feature the hotel´s recreational facilities including pool, his & hers gyms, beauty centre and day spa. Meeting rooms and a business centre will also be available to guests.

Bar and dining facilities will be available on the mezzanine levels."

Trilogy Tower

Trilogy Tower, 480 Queen Street Brisbane

"Pre-release: VIP Appointments commence this Sunday 16th March. Official launch Saturday 19th April. 25 sales logged in 48 hours."

My summary (more details to follow): Hotel apartments - managed by Mirvac. Floors 36 to 47. There are 16 apartments per floor - six are 2 bedroom and ten are one bedroom. Price ranges: 1 bedroom - $480,000 to $595,000; 2 bedroom - $710,000 to $990,000. Sizes - 1 bedroom - 53sqm to 59 sqm; 2 bedroom - 70 sqm to 89 sqm. No balconies. Due for completion in 2012.

"Trilogy Tower is a 70 storey multi-use tower that derives its name from the three integrated environments contained within its spectacular steel and glass facade - office space, living space and hotel space. With its gaze firmly fixed on success, Trilogy Tower will become a centrepiece for Brisbane's future workforce, short stay visitors and permanent residents.

The $650 million to come to life on the site known as the Red Cross building, has been approved to 250m high, but will climb much higher once the City’s height limit is removed under the new CBD Masterplan. The state-of-the-art ultra-highrise tower will also contain the Brisbane CBD’s first new 5-star apartment hotel project in more than a decade.

The residential apartments will offer living areas from 85 sqm through to double-storey sky-homes of up to 350 sqm. Permanent residents at the top of the building will enjoy design, finishes and amenity rarely seen before in Australia.

The 5-star hotel accommodation component of the building comprises one and two-bedroom apartments of up to 100 sq m in living area. APH has signed a heads of agreement with a soon to be announced 5-star operator after fielding inquiry from a dozen or more local and international hotel management groups.

This iconic development will deliver the next generation of technology and sustainable design with first class accommodation facilities for office workers, short-term visitors to Brisbane and permanent residents as well as unparalleled and uninterrupted views of the Brisbane River, the Story Bridge and greater Brisbane,” said APH Managing Director John Wilson.

“The residential buildings we see around the CBD now are a part of the first generation of CBD living in Brisbane,” Mr Wilson said. “This new tower will meet the standards of a market that won’t be moving in until 2011, so it has to be beyond the forefront of design innovation."

French Quarter in Alice Street

From the Devine website, which shows that three towers are planned:

"Devine Limited has recently obtained control of a 7,252sqm parcel of land in the Brisbane CBD directly opposite the Botanic Gardens."

"A circa 54 storey high-rise development incorporating a 120 - 150 room 6 star boutique hotel approximately with circa 70 first class residential units ranging in size from 250 - 800sqm gross and valued at between $3 million to $15 million each. The development is located on the corner of Alice and Albert Streets opposite the Brisbane Botanical Gardens.

Projects Status:
The building is currently in the initial schematic design and we have run an international design competition which we believe will produce a visionary landmark design. Submissions have already been received from some of Europe’s finest architects. We have also run an international tender seeking expressions of interest from leading hotel operator-managers and have 12 responses from national and internationally renowned organisations in the field.

Some of those include:
The Park Hyatt
Intercontinental
The Regent
Conrad Hilton
Shangrila
Mirvac
TAJ

A development application will be lodged over the site once the new Brisbane City Neighbourhood plan has been adopted in 2008."

Drawings

Promotional Video: Click http://www.youtube.com/watch?v=q_ECTk24lxg to see Devine's proposal.

Hamilton Harbour - Over 200 Apartments Planned

From Devine's website:

PROJECT SIZE

•Mixed-use development comprising approximately 250 apartments, 30,000m2 commercial office space and 1500m2 retail space.

PROGRAM

•A preliminary development application was lodged over the site in January 2007, which is currently being processed by Brisbane City Council and is anticipated to be approved in early 2008.

PROJECT END VALUE

•$400 million

ANTICIPATED COMPLETION DATE

•FY 2011 (stage development)

ANTICIPATED CONSTRUCTION START DATE

•Last quarter 2008

Drawings

REIQ Apartment Price Report for Brisbane

REIQ Unit Report - see http://www.brisbanetimes.com.au/media/prices.pdf

Brisbane City - medium price is $469,000 for December 2007 quarter, which is a 8.7% change of the quarter. A number of suburbs have a higher medium price.

From the Brisbane Times this week:

The median sale price of units and townhouses in the inner-city suburb of Milton almost doubled last year, beating growth seen in Hamilton and New Farm.

A suburb known for its student population, proximity to a brewery and a miniature Eiffel Tower, Milton left other city hotspots for dead in 2007. ...

A scarcity of potential development sites in the inner-city area had seen Milton placed "in the firing line" of developers because of its location, he said.

As a result, industrial and commercial lots in the suburb could soon be replaced with new apartment projects, he said.

Units in Milton represent almost 39 per cent of all dwellings, with a higher proportion of older properties built between the 1960s and 1990s.

"The median unit price since 2004 has experienced significant fluctuations, particularly when new apartment stock dominates the total number of transactions," Mr Rivera said.

Prices in the area had performed "exceptionally well" lately thanks to the introduction of high-rise apartments, which achieved a much higher price than mature unit stock, he said.

Planned developments in the area confirmed Milton as a "strategic location" for residents and businesses, as it was likely to bring new infrastructure and improve liveability.

One such project is FKP's Union Milton development situated above the train station, and is proposed to include a 30-storey residential building of 214 apartments.

Along with the residential component, the developer plans to include a hotel and 10-storey office space.

While there was a drop in sales in the December quarter, Mr McGrath said investors would likely return to the market as yields improved over the course of 2008.

Brisbane Auction Results for early March 2008

From APM Home Price Guide Newsletter:

In Brisbane this week 171 properties were auctioned and the clearance rate was 41%. Last week, 102 properties went to auction and the clearance rate was 47%. During this week of last year 46 properties went to auction with 59% selling at auction or prior.

17 properties were auctioned this week on the Gold Coast and the clearance rate was 20%. Last week 49 properties were auctioned with 22% selling at auction or prior. During this week last year the clearance rate was 58%.

• Aurora, 420 Queen Street - Apartment 336 (6th Floor) 2 bed, 2 bath, 1 car, reasonable river views - not sold - highest bid $535,000

For the week ending 8 March, auction results for apartments in Brisbane were not good.

At a midweek Ray White auction, there was good attendance. But mostly people watching the market. There were few active buyers.

Results of the midweek Ray White Auction

Charlotte Towers (128 Charlotte Street, Brisbane)

Apartment 3801 - Level 38 - 1 bed plus study - 57 sqm - no car park - sold at auction for $320,000
Apartment 3105 - Level 31 - 1 bed with big storage room - 60 sqm - no car park - not sold
Apartment 2410 - Level 24 - 1 bed with large shower - 61 sqm - no car park - sold at auction for $310,000

[I suspect the above sales were below the original purchase price, so the seller made a loss.]

212 Margaret Street
Apartment 1504 - not sold

River Park Central (120 Mary Street)
Apartment 602 - 2 bed, 2 bath, 1 car - 85 sqm - not sold at auction - now listed for $420,000

Saturday Auction (Brisbane clearance rates were a low 44%; national clearance rates

Elysees (15 Walsh Street, Milton)
Apt 33, Penthouse - 3 bed, 2 bath, 2 car - no bids at auction - now listed for $969,000

15 February Ray White Auction

Tempo (West End)
75/20 Donkin Street, 3 bed, 2 bath, 2 car - not sold - vendor bid of $800,000 - still listed for sale.

Evolution Discounted

Received in the email today:

"... the developer is offering a limited offer to all purchasers of 2bed, 2bath, 1car and 2bed, 1bath, 1car apartments in Evolution as a part of our Grand Opening.

A type Apartments 2bed, 2bath, 1car apartments

• 1 year, 5% rental guarantee
• $50,000 rebate to purchaser at settlement

C type Apartments 2bed, 1bath, 1car apartments

• 1 year, 6% rental guarantee
• $30,000 rebate to purchaser at settlement

This offer valid for sales where the SAF is received by 31 March and the contract is unconditional on or before 14 April, 2008."

I guess this means that Evolution was overpriced or is not selling well or the developer is worried about a market downturn.