Trilogy Tower & Mirvac

APH is spreading the rumor that Mirvac will be managing its new apartment hotel complex at Trilogy. Pricing is said to start at $480,000 for a one bedroom furnished apartment without a river view.

I hope that APH will do a better job than it did on Aurora, where there are many unhappy residents and unhappy owners.

Aurora Becomes A Hotel

Another Brisbane apartment building is being turned into a hotel. This time it is Aurora.

Owner residents and tenants are upset and complaining.

http://www.brisbanetimes.com.au/articles/2008/02/01/1201801005451.html

http://www.brisbanetimes.com.au/news/queensland/hotel-boom-will-push-rents-up/2008/01/31/1201714119885.html

http://www.brisbanetimes.com.au/news/queensland/hundreds-face-high-rise-eviction/2008/01/30/1201369225722.html

See prior posts.:

Casino Towers Falls to Oaks

Charlotte Towers to Become Hotel

Turning Apartments into Hotels

When will the Council stop this?

A number of buildings are adding anti-Oaks provisions to their by-laws. The latest to do this is Admiralty 2.

Gabba Central

The Sunday Mail has a story today, which is not on its website, regarding delays at the Gabba Central apartment complex, stage 2, on Ipswich Road at Stanley Street near the Gabba cricket grounds.

This complex is on a noisy major intersection.

Many of the apartments in stage 1 are used for short term holiday rentals.

The Sunday Mail reports that one person who moved from Victoria who had purchased an apartment off the plan in stage 2 is living on the floor of a friend's house, as his apartment is not ready and no one is sure when the necessary approvals will be obtained. He is quoted in the article as saying: "The cheapest place I can rent in the complex (Stage 1) is $950 a week..." He obviously has not looked on realestate.com.au, where apartments in Gabba Central stage 1 are listed at $460 and $580 a week furnished.

I avoided this complex for two reasons (apart from the delays that the developer was having):
1. On a very busy intersection.
2. The developer's advertising. Floor plans showed bedrooms that are 3m x 3m, and showed the bed taking up only a small part of the room. For example a bed was shown as about 150cm long, which is not to scale. In fact, most of the furniture shown on the plans was not to scale, and so makes the rooms look bigger. Also, for stage 1, there was no disclosure that part of the complex was a hotel or serviced apartment complex -- the plans shown to potential purchasers did not label the reception area as a reception area for example.

Interestingly, the developer's website currently says that settlement will take place in 2007 and that the complex "is scheduled for completion in August 2007." Clearly, not only is the developer late, he is not diligent in updating his promotional website.

In wonder if this is the developer's first large residential development? Its website states:

"Barron Developments have built a formidable reputation in the real estate industry as developers of landmark lifestyle and commercial precincts. Their past successes include the retail projects of Helensvale Plaza and 19th Avenue Shopping Centres.

Each project presents new challenges and requires a fresh, forward thinking perspective. In the Gabba Central precinct, Barron Developments have successfully fused innovative design with a concept of city fringe living that leaves nothing to be desired."

Three Year Leases For Brisbane?

As reported in the Brisbane Times:

http://www.domain.com.au/Public/Article.aspx?id=1202760269214&index=NationalIndex&headline=Three-year%20leases%20

"Changes to Brisbane's rental market in coming years could see the introduction of a US-style system where three-year leases are quite common, one property analyst believes.

The shortage of rental accommodation in South-East Queensland is unlikely to improve in the short term, signalling a need for change, according to Michael Matusik from Matusik Property Insight.

In the US and some parts of Europe, tenants take out leases that can stretch for years - and sometimes generations.

A similar system would work in Brisbane where soaring prices and plummeting vacancy rates are stretching the rental market, he said.

Currently in Brisbane, the most common lease length is six months - but Mr Matusik believes an increase to at least 12-month minimums is on the horizon.

....."

See article for more detail.

Mirvac's Results

Mirvac's results release yesterday included the following information:

• Tennyson Reach QLD - $203m in exchanged contracts
• Queensland residential pipeline forecast for apartments - $1,865m
• Housing market construction activity through FY08
  - Strong: VIC, QLD
  - Moderate: WA, SA
  - Recovering: NSW - but still below long-term trend through 2008
• Inter-state economic outlook
  - Strong: WA, QLD
  - Moderate: VIC
  - Recovering: NSW

http://www.mirvac.com.au/investor/pdf/20080212_WebPres.pdf

TENNYSON DEVELOPMENT: Acquired Aug 05, Project Value $574m, Total Lots - 393; Released Lots - 207; Exchanged Lots -126
Tennyson Breakdown:
Softstone & Lushington Project Value $191m; Total Lots: 115 Released: 115; Exchanged: 115 (Settlement Apr 2009 to July 2009) Price Range: $940,000 – $4.9m
Farringford Project Value $126m; Total Lots 92; Released Lots 92; Exchanged: 11 (Settlement Sep 2009 to Jan 2010) Price Range: $805,000 – $4.9m
Pamphlett Project Value $109m; Total Lots: 82 (Settlement July 2010 to November 2010); Price Range: $695,000 – $3.2m
Parsons Project Value $96m Total Lots 67 (Settlement July 2011 to Nov 2011); Price Range: $885,000 – $3.3m
Somersby Project Value: $53m Total Lots 37 (Settlement July 11 to Nov 2011) Price Range: $885,000 – $3.3m

Newstead River Park: 631 apartments, settlement not until June 2010 to June 2014: Price Range: $800,000 – $6.0m

http://www.mirvac.com.au/investor/pdf/20080212_HYReport.pdf

Someone was not happy

The CEO of APM was not happy with this post on another blog.

Brisbane Construction

As reported on SkyScraperLife (including projected completion date and name of builder):

Under Construction:
Centary Square [108 Wickham St] -- Feb-08 <<>>
Evolution - [18 Tank St] -- due Apr-08 <<>>
Green Square [503 St. Paul’s Tce] -- Jun-08 <<>>
Tribune [199 Grey St] -- Jun-08 <<>>
WBC Annex [199 George St] -- Jun-08 <<>>
Devine Office [333 Ann St] -- Sep-08 <<>>
Wesly Mission [110 Ann St] -- Sep-08 << ???????? >>
545 Queen St [545 Queen St] -- Nov-08 <<>>
Petrie Barracks [Given Tce] -- Nov-08 <<>>
Central Plaza 3 [80 Eagle St] -- Dec-08 <<>>
NAB Annex [308 Queen St] -- Dec-08 <<>>
53 Albert St [53 Albert St] -- Mar-09 <<>>
Brisbane Central [140 Elizabeth St] -- Mar-09 <<>>
Matisee tower [110 Mary St] -- Mar-09 <<>>
NorthBridge [31 Tank St] -- Mar-09 <<>>
AM60 [42 Albert St] -- Mar-09 <<>>
The Macrossan [475 Adelaide St] -- Jun-09 <<>>
Suncorp Tower [179 Turbot St] -- Jun-09 <<>>
Icon Place [270 Adelaide St] -- Jun-09 <<>>
Sky Campus [400 George St] -- Dec-09 <<>>
NorthBank Plaza [275 George] -- Dec-09 <<>>
Vision [131 Mary St] -- Jun 2012 <<>>

Pending Start: (real Projects with construction contract, due to start soon)
Trilogy [480 Queen] -- <<>>
111 Eagle St [111 Eagle St] -- <<>>
Union [Milton Station 150 Milton Rd] -- <<>>
Westminster Hall [145 Ann St] -- <<>>
Southpoint [Collins Place] -- <<>>
Meriton [495 Adelaide St] -- <<>>
550 Queen St [550 Queen St] -- <<>>

Not all of these are apartments. Will these block views of existing apartments?

Meriton's Brisbane Plans

As reported in the Brisbane Times:

"After declaring Brisbane a "backwater" in the 1980s, one of the country's most successful property developers has announced plans for his second high-rise building - tipped to be 80 to 90 storeys.

Harry Triguboff steered clear of the Sunshine State's capital for decades, concentrating on Sydney and the Gold Coast and celebrating the success of his development company, Meriton Apartments.

But last year the billionaire property tycoon announced the purchase of a site on Adelaide Street and released plans for a 70-storey tower.

Now Brisbane is set to receive a second Meriton-built tower, with plans for a $450 million mixed-use tower of 80 to 90 storeys.

Meriton paid $25 million for the 43 Herschell Street site and plans to begin construction at the end of the year, the Australian Financial Review reports.

The 1800m2 plot is currently home to a car park, but could eventually accommodate a mammoth building comprising 650 residential apartments.

The company said it planned to engage leading architects and designers to finalise plans.

Meanwhile, construction of Meriton's Adelaide Street development could begin within months. When built it will stand taller than the nearby 67-storey Aurora Building, and in terms of height will equal the 250m Trilogy Tower high-rise on Queen Street, planned by developer APH.

Meriton's Adelaide Street tower will comprise 403 apartments, 200 of which will be serviced hotel suites managed by the company."

M on Mary

M on Mary in Mary Street, Brisbane, is almost complete and read for residents to move in.

I have always worried about Devine buildings and their quality. M on Mary makes the recent Devine buildings look like palaces.

M on Mary has over 360 apartments and just over 40 floors. The building comprises mostly 1 bedroom apartments, with about 10% of the apartments having 3 bedrooms. There are no 2 bedroom apartments. There are less than 200 car spaces, and so many apartments do not have car parking.

On most floors, there are 10 apartments. This is a high number of apartments per floor, and raises noise and security issues.

According to the on-site managers, the developer continues to own about 120 apartments. The developer has furnished these apartments and is planning on renting them on a short term basis. So M on Mary will turn into another short stay building.

The building has only 4 small elevators for 360 apartments. This is a very low ratio, so expect delays when wanting to come and go.

The building has very few facilities for residents. There is a very small pool at the rear of the building, on the boundary near Festival Towers. It is one of the ugliest pools I have seen. There is also a small residents gym.

The apartments are tiny. A typical apartment is 52 sqm internal with a 10 sqm balcony. Some apartments are 58 sqm internal with a 20 sqm balcony. Each apartment has a small bedroom, an internal room with no windows that could be used as a storage room or study, a small combined bathroom/laundry and a living room. At one end of the living room, there is an area that has kitchen cupboards, a sink and a small fridge. There is no ensuite -- the bathroom is not near the bedroom. There are no storage cupboards, linen cupboards or coat cupboards. Some apartments do not have a balcony.

The quality of finishes is below average in my opinion.

Many owners are investors who have purchased the furniture package, which consists mostly of Chinese flatpacked furniture.

Some of the apartments have views into Festival Towers, and others have views towards the Botantic Gardens. These views of the park will be mostly lost when Devine builds its apartment / hotel complex on Alice Street.

There are a number of apartments for sale, including:

• 1 bedroom on lower floor, no view, carpark, at $460,000
• 1 bedroom on lower floor, no view, carpark, at $420,000
• 1 bedroom on 19th floor, no carpark, at $320,000
• 1 bedroom on 21th floor, no carpark, at $360,000
• 1 bedroom, no carpark, at $329,000
  
• 3 bedroom on high floor at $920,000
  

The onsite manager says that the rental prices are:

• $420 a week unfurnished, 1 bed, no car
• $460 a week furnished, 1 bed, no car
• more than $500 a week for 1 bed with a car.

An agent selling an apartment has the following rental guide for a 1 bed apartment with no car:
Rental price guide:
- $350 - $380 per week Unfurnished
- $420 - $450 per week Furnished

Offsite agent is trying to rent an apartment on level 23 with no car for $400 per week,

For a comparion, see what you would get in Metro 21 across the road or (dare I say it) Festival Towers at the rear.

My opinion: M on Mary is a building to avoid.

(Korean language website is located at: http://www.monmary.com.au/kr/index.htm)

Admiralty One - Two Bedroom

Apartment 101 in Admiralty is listed for sale at $610,000. This is one of the apartments at the back of the building. Two bedrooms, two bathrooms, one car. This same apartment was listed for sale with the same agent in October 2006 for $450,000. Now thats a good capital gain!

Two Bedroom Apartments Above $800,000 in Brisbane City

Some recent sales (all two bedrooms)

• Parklands, Apt 6042, $875,000
• Felix, Apt 377, $950,000
• Quay West, Apt 1901, $850,000
• Quay West, Apt 2006, $830,000

Some listings (all two bedrooms)

• Casino Tower Penthouse, $1,300,000
• Riparian Plaza, $2,200,000
• Quay West, Apartment 606, $800,000
• Evolution, Apartment 52 (level 5) (77sqm internal), $958,000
  
• Evolution, Apartment 166 (level 16) (89sqm internal), $868,500
  
• Evolution sub penthouse, Apartment 323, $1,640,000
• Evolution, Apartment 344, $1,740,000
  
• Evolution, $850,000
• Admiralty Towers Two, $815,000
• Admiralty Quays, $880,000
• Parklands, Pinnacle, 9th floor, $1,050,000
• Parklands, Pinnacle, 6th floor, $975,000
• Quest River Park Central, 29th floor, $1,400,000
• Grosvenor on Edward, $1,100,000

Devine's Plans for Alice Street

As reported in the Courier Mail in late December 2007:

BRISBANE is about to get its most expensive apartments, as local developer Devine prepares to launch a French-inspired project boasting units priced at up to $15 million.

The price tags will far exceed the $12.36 million being asked for apartments in a proposed Kangaroo Point development, Scott Street, unveiled earlier this year.

Property records reveal the highest price paid so far for a Brisbane apartment was the $7.37 million shelled out for the penthouse in Riparian Plaza, while several units at New Farm and another at Hamilton have all topped $5 million.

The yet-to-be-built Vision tower between Mary and Margaret streets has a two-level apartment that sold for $3.89 million.

Penthouses in Skyline, on Macrossan St, are expected to bring $5 million-plus.

Devine managing director, David Devine believes the Brisbane market is ready to accept apartments of this value.

The apartments will be part of a French Quarter precinct on sites Devine owns on the corner of Albert, Alice and Margaret streets in the city heart.

The first stage will feature a tower with a luxury six-star hotel, the apartments on top, retail and commercial space on the lower levels and Parisian-style cafes and walkways.

An international design competition for the building has been whittled down to a shortlist of three.

Devine marketing director Ken Woodley hopes a final decision will be made on the design early in the new year.

He said there would be 70 to 90 residential apartments above the hotel on the Alice St site. These would range from 300sq m to 800sq m and cost $2.5 million to $15 million.

Mr Devine said while there would be only one penthouse, luxurious sub-penthouses were expected to fetch $12 million to $15 million. Another international competition will be held to design the interiors of the apartments, which Mr Devine said would feature the highest quality finishes available.

The building will incorporate the latest in "technomenities" – the latest generation smart home technology.

This will include automated systems for lighting and climate, in-home entertainment and electronic concierge services.

Mr Woodley hopes work will start on the development in the second quarter of 2009, with completion in late 2012.

What will 2008 have in store for the Brisbane apartment market?

First, how did the Brisbane apartment market do in 2007?

The results were mixed.

It is hard to get reliable information about "the state of the market" when looking at inner city apartments in Brisbane. Agents only seem to remember the last two weeks -- if they made some good sales in the past 2 weeks, then the market is booming; if they didn't get new listings or a contract collapsed, then the market is heading towards a bust.

Information providers, such as RP Data and PRDColliers, have good information, and this information is often used by the media to make general conclusions. However, general conclusions are often not useful when considering a particular apartment building or apartment.

Capital Gains

Some apartment buildings did very well, and others did not. Overall, a good building had at least a 10% capital gain in 2007.

The buildings that had good capital gains include:

• Riverplace, where the average 2 bedroom apartment increased from about $500,000 to over $600,000.
• Admiralty Two, where 2 bedroom apartments increased from about $650,000 to $720,000 (with one now listed at over $800,000).
• Quay West, with a 2 bedroom apartment selling to a senior Devine employee at auction for over $800,000.
• Metro 21, with high floor 2 bedroom apartments increasing from less than $460,000 to more than $500,000.
• Arbour on Grey, with 2 bedroom apartments now in the low $700,000 range.

Buildings that have been disappointments include:

• Charlotte Towers and Festival Towers - with Oaks taking over management. Many developer apartments still remain for sale in Charlotte Towers. Investors who purchased off the plan have had a hard time getting good prices on resale, with over 800 pokey poor quality student apartments in these two buildings, where the views will likely be lost as buildings grow around them and there will always be competition amongst sellers.
• Casino Towers, also taken over by Oaks, and with North Bank plans taking out the river views.
• Aurora, a poor quality ghetto building.
• Vue, at Milton, with apartments that sold off the plan in the mid $700,000s reselling at auction in the mid $500,000s.
• Koko, that still has not sold out, and the complex feels like a ghost town. The developer overpromised and under delivered.

Rents

Rents increased, and vacancy rates dropped in 2007. But the overall rental market is not as good as many newspaper articles suggest. The poorer quality buildings are full of students, often with 6 people living in a 2 bedroom apartment, on a rent subsidised by the developer who promised the first owner a rental guarantee. Many apartments are occupied by corporate renters (such as Accenture, engineers working on the tunnel, etc) who are willing to pay high prices for new furnished apartments; but this demand will not continue indefinitely. Some buildings, such as those managed by Oaks, are turning apartments into hotel rooms, thus reducing supply. Although December is not the best month to find tenants, there are many empty apartments in Brisbane awaiting tenants. Skyline and Koko, for example, have many empty apartments.

Although rents increased in 2007, the rate of increase slowed towards the end of the year. It is now hard to find a good unfurnished two bedroom apartment for rent in the inner city for less than $550.

Predictions for 2008

Quality inner city apartments in Brisbane will do well in 2008. Capital growth will continue, and vacancy rates will remain low. Reasons for this include:

▪ Brisbane population will continue to increase.
▪ International students still regard Brisbane as a desirable location.
▪ There are many infrastructure projects in Brisbane, requiring professional staff to work in Brisbane.
▪ Traffic will get worse, and many young singles and families will want to live in quality accommodation close to work and other facilities.
▪ It is becoming more acceptable and desirable to live in an apartment in Brisbane.
▪ The U.S. subprime problems will have little long term impact in Brisbane.
▪ There will be few new buildings entering the market in the next two years. M on Mary and Evolution, both second tier buildings, will be complete in 2008. That's about it. There are only six buildings listed on realestate.com.au in the developers section for the CBD, and four of these are completed buildings (Vue, Trilogy, Pinnacle, Skyline, The Hub, Evolution). It does not look like any new buildings will be ready in 2009. There will be new buildings for which marketing will commence in 2008, but these buildings will not be ready until at least 2010.

So here are some predictions for 2008:

• The price of a good quality 2 bedroom 2 bathroom apartment in Brisbane, with views, will be at least $800,000.
• The price of an average quality 2 bedroom 2 bathroom apartment in Brisbane will reach $650,000.
• By the end of 2008, it will be hard to find any modern inner city apartment in Brisbane in a good location for less than $600,000.
• New off-the-plan 2 bedroom apartments (for buildings where marketing commences in 2008) will start at $800,000.
• Average rent for an unfurnished 2 bedroom apartment will jump midyear to $620 per week.
• There will be more buyers than sellers.
• There will be more action in the inner suburbs than in the city. Prices for quality apartments in areas such as Indooroopilly and Toowong (where there is a train station and regional shopping, close to education facilities) will boom. By the end on 2008, it will be hard to find a good quality 2 bedroom apartment in these areas for less than $600,000.
• Noosa and Mooloolaba will rise again, as people looking in Brisbane for investments will see good value in the northern beaches, particularly beachfront apartments.
• 2009 will be better than 2008.

If you find any of these predictions hard to believe, for some buildings they are already true. For example, today:

• Small Off-the-plan 2 bedroom apartments in Brisbane, in Evolution, at 75 sqm, are selling for over $650,000.
• Two bedroom apartments are selling in Quay West, Arbour on Grey, Admiralty One and Admiralty Two for more than $700,000.
• Trilogy, in Spring Hill, has two bedroom apartments (less than 80 sqm, but with views) listed at more than $600,000. [However, a number of contracts have fallen through, as the valuations have come back $40,000 or so less than contract price.)
• New two bedroom apartments with river views in West End and Milton (e.g. in Flow and in Coronation Residences), which are not prime locations, are selling for more than $900,000.
• Off-the-plan apartments (two bedrooms, at least 85 sqm) are selling in quality developments in Indooroopilly, Toowong and Sherwood today for well more than $550,000.
• People have signed contracts for 2 bedroom apartments in Vision (e.g., level 35, 120 sqm) for more than $1,000,000. Settlement, if this building ever gets off the ground, will not be until 2011.
• The price range for a large 2 bedroom apartment in Mirvac's Tennyson Reach is $900,000 to $1,100,000. Settlement in 2010.
• Off-the-plan 2 bedroom apartments in Soul on the Gold Coast are, at a minimum, $1,800,000. Settlement not at least until 2011.

So I will not be selling in 2008.

Casino Tower Falls

Oaks has taken over the management of Casino Towers (another Devine building) and has the aim of turning this into a short term accommodation building.

Casino Towers has many apartments with good views over the river to South Bank. But it has its share of problems, even before Oaks gets involved. It faces West. Once it was advertised as having "never to to built out views", owners are now concerned that a large building is planned for right in front on the river as part of the North Bank project. And many of the apartments are poorly laid out, with small window or windows in a room facing the wrong direction.

Oaks is taking over the bottom end buildings in Brisbane:

QUEENSLAND
Oaks Aspire - Ipswich (Opening Soon)
Oaks Lexicon - Brisbane CBD
Oaks 212 Margaret - Brisbane CBD
Oaks Felix - Brisbane CBD
Oaks Festival Towers - Brisbane CBD
Oaks North Quay - Brisbane CBD
Oaks Seaforth Resort - Sunshine Coast
Oaks Calypso Plaza Resort - Coolangatta
Oaks Anchorage - Townsville
Oaks City Quays - Cairns
Oaks Piermonde - Cairns
Oaks Lagoons - Port Douglas

And many occupiers are complaining:

http://cityboard.com.au/viewtopic.php?t=436

http://cityboard.com.au/viewtopic.php?t=272

Brisbane Apartment Sales

Koko (a Stockland development)
Apartment 238 - Greenwich Building - 2 bed 2 bath pool view - sold at auction on 1 December 2007 for $553,000

Arbour On Grey (a Mirvac development)
Apartment 1320 = Stage One, 3rd floor, 3 bedrooms - Sold for $1,100,000
Apartment 2214 = Stage Two, 2nd floor, 3 bedrooms - Sold for $962,500
Third floor, 2 bedroom apartment recently sold for more than $700,000

1901/132 Alice St, Brisbane - $850,000 (Quay West)
206/132 Alice St, Brisbane - $750,000 (Quay West)

Others:

112/293 North Quay, Brisbane - $215,000 (North Quay)

1009/128 Charlotte St, Brisbane - $370,000 (Charlotte Towers)

245/420 Queen St, Brisbane - $477,000 (Aurora Tower)

4020/255 Ann St, Brisbane - $293,000 (Rendezvous)

705/35 Astor Terrace, Spring Hill - $425,000 (The Astor)

3001/255 Ann St, Brisbane - $310,000 (Rendezvous Hotel)

2006/108 Albert St, Brisbane - $305,000 (Festival Towers)

3003/108 Albert St, Brisbane - $435,000 (Festival Towers)

3008/128 Charlotte St, Brisbane - $571,500 (Charlotte Towers)

2101/92 Quay St, Brisbane - $395,000 (Vue)

Brisbane Featured in New York Times

Once Just a Stopover, an Australian City Grows Up

By JULIE EARLE-LEVINE

Published: November 4, 2007

ONCE just a stopover for tourists en route to either the Great Barrier Reef or the beaches on the Sunshine and Gold Coasts, the eastern Australian city of Brisbane has emerged as an alluring destination in its own right.

....

WHERE TO STAY

The Emporium Hotel (61-73-253-6999; 1000 Ann Street, Fortitude Valley, www.emporiumhotel.com.au) has doubles from 295 Australian dollars.

The recently opened Saville South Bank hotel (61-73-305-2500, 161 Grey Street, South Bank; www.savillehotelgroup.com) is a short walk to the Queensland Performing Arts Complex, the State Art Gallery and museums. Studio apartments with kitchenettes from 398 Australian dollars.

http://travel.nytimes.com/2007/11/04/travel/4next.html
or
http://travel.nytimes.com/travel/guides/australia-and-pacific/australia/brisbane/overview.html

Recent Brisbane Apartment Sales

Felix (26 Felix Street) Apt 194, sold for $412,000

River City (79 Albert Street) - Apt 1703 - sold at auction for $428,000

Festival Towers (108 Albert Street) - Apt 3109 - failed to sell at auction - highest bid was $440,000

Charlotte Towers (128 Charlotte Street) - Apt 507 - failed to sell at auction - highest bid was $330,000

Trilogy Tower

The pre-sales website has been launched for Trilogy Tower, on Queen Street. See http://www.trilogytower.com.au/

The developer, APH, is selling the whole building. There have been full page advertisements in the Financial Review.

Although not yet started, this building will be 70 floors high, located next door to Aurora.

"Trilogy Tower is situated on Queen Street, Brisbane's main street, and is destined to be the city's most famous landmark in the decades to come.

Due for completion in 2011, it will dominate the city and the waterfront from its position at the gateway to the CBD's highly prized 'Golden Triangle', the preferred location for Brisbane's leading corporate tenants.

Trilogy Tower is also conveniently sited within strolling distance of Brisbane's main shopping precinct, the majority of Brisbane's fine dining restaurants and many upmarket stores and lifestyle boutiques."

The building will include apartments:

"109 single and double storey prestige residential apartments

• Occupation late 2011
• World-class interior designs
• Residents will have access to premium services (TBA)
• Access to Residents private recreation deck including pool and spa on level 53
• Dedicated high-speed lifts for residents use only
• Secured basement carparks
• Secured basement storage facilities"

And a hotel:

• Five-star All Suite Hotel to commence operation in late 2011
• Managed by Five-star hotel operator
• 192 one and two bedroom hotel apartments
• Dedicated Porte Cochere and Reception via Adelaide Street
• Business Centre
• Functions Centre
• 25m heated pool
• Fitness Centre
• Stunning views of the Brisbane River and Story Bridge from all levels
• Secured basement carpark
• High speed lifts dedicated for hotel guests only
• Five-star furniture packages available
• One and Two bedroom Five-star Hotel Apartments available for investment from only AUD $450,000"

Flow West End

There is always a risk buying off the plan. Typically, that risk is off-set by getting a lower price -- i.e., buying at today's prices, but not having to pay until tomorrow.

That does not always hold true, if the initial pricing is too high. One example of an overpriced off the plan development was FKP's Vue, where a number of people appear to have sold recently for less than they paid off the plan.

Pradella is pricing its off-the-plan developments aggressively. One example is Flow at West End. Flow has been marketed off the plan for a number of years. Today's prices are about the same as one of the original price lists published over a year ago. A price list from 2006 is here. Settlement is in 4 weeks. There are some really nice apartments in Flow, and they are larger than normal. The better views are to the west, however.

This is one development where it looks like waiting until settlement (unless you got an insiders price or discount) would have been best in relation to price. However, most of the good apartments have sold, so waiting is not necessarily the best thing to do if that is where you would like to live!

Some Flow apartments listed for sale today (developer stock):

• Apt 31, 3 bed, 4th floor, river views $1,425,000 (price was $1,375,000)
• Apt 23, 3 bed, 3rd floor $1,405,000 (price was $1,380,000)
• Apt 57, 2 bed, 2rd floor $970,000 (price was $970,000)
• Apt 13, 2 bed, 1st floor $890,000 (price was $840,000)
• Apt 51, 2 bed, 1st floor $890,000 (price was $930,000)
• Apt 52, 3 bed, 1st floor $1,275,000 (price was $1,250,000)
• Apt 14, 2 bed, 1st floor, $695,000 (price was $685,000)

Brisbane Apartment Short Term or Hotel Stays in Suites

I am often asked which apartment buildings are good for short term stays. That is, which apartments in Brisbane downtown and nearby are furnished, safe and have good facilities.

These are my recommendations, in this order:

1. Quay West, on Alice Street overlooking the Botanical Gardens.

Consistently rated as the number one hotel in Brisbane on TripAdvisor.
One and two bedroom suites, with daily service and room service. Pool, gym, restaurant. Large balcony. Great location and great views from all suites. The one bedroom suites have kitchen, large living area with desk, laundry room, bathroom and large bedroom. Two modern flat screen TVs. The nicest pool in Brisbane. Operated by Mirvac.
Book here.

2. Felix Apartments on Felix Street at Eagle Street.

An apartment building that Oaks has turned into a short term stay building. Good location, and most rooms have river views. Pool. Partly air conditioned (not central air conditioning). No room service. No hotel facilities. Good clientèle. Weekly clean.
Book here.

3. Saville Hotel at SouthBank

Only 18 months old, one of the newest hotels in Brisbane. Great location, just out of the downtown, but with many good restaurants nearby. A full service modern hotel. Pool and gym. Room service.
Book here.

4. Oaks - 212 Margaret Street

This was once a good place to stay, but now has a large construction site next door. No services.
Book here.

5. Oxygen Apartments, at Spring Hill

This is a favourite place for IT workers. Small apartments, just out of the city. No services.
Book here.

...

The best hotel, for a standard hotel room, is Stamford Plaza, on the Brisbane River. Book here.

Recent Apartment Sales in Brisbane

Auctions:

• Festival Towers, Apartment 3109 - did not sell at auction - highest bidder $440,000
• Charlotte Towers, Apartment 507 - did not sell at auction - highest bidder $330,000
• Saville SouthBank, Apartment 1307 - sold prior to auction for $1,400,000

Sales:

• 99/204 Alice Street, Brisbane - $480,000 (The Gardens)
• 901/108 Albert Street, Brisbane - $407,000 (Festival Towers)
• 655/420 Queen St, Brisbane - $1,050,000 (Aurora)
• 651/420 Queen Street, Brisbane - $1,135,000 (Aurora)
• 1001/255 Ann Street, Brisbane - $290,000 (Rendezvous Hotel)
• 2004/21 Mary Street, Brisbane - $500,000 (Metro 21)
• 1004/35 Astor Terrace, Brisbane - $315,000 (The Astor)
• 5304/226 Margaret Street, Brisbane - $3,740,000 (Vision - off the plan sale)

There are plenty of listings in Festival Towers and Charlotte Towers. (For example, Margaret Waters has a corner apartment listed on level 26 (apartment 2601) for $475,000. And see other posts below.) This doesn't help the price in these two Devine buildings, as there is always competition between vendors.

What is happening at Charlotte Towers?

There have been protests in the street by tenants living in Charlotte Towers, due to Oaks taking over management of the apartment building and trying to turn it into a hotel.

Devine, the developer, has been advertising that only two apartments remain for sale. For example, in the Courier Mail "Home" section on 20 October, there is a half page advertorial titled "Guaranteed return" saying that there "are only two residences remaining for sale in the recently completed 416-apartment development". According to the article, one residence is a one bedroom priced at $367,000 and the other is a 2 bedroom priced at $498.000. Devine is offering a rental guarantee on these apartments, but says nothing about Oaks and its efforts to move the building to short stay rentals. Ken Woodley, the Devine national marketing manager (who, lives an a Mirvac apartment on Alice Street in Brisbane) is quoted in the "article".

Strangely, Colliers PRD project marketing team just listed a number of apartments for sale in Charlotte Towers. I wonder if this is developer stock? It looks like developer stock. If so, how can Devine honestly say that only 2 apartments remain for sale?

The newly listed apartments include:

• 2 bed, 2 bath, 1 car, 15th floor at $489,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380097
• 2 bed, 2 bath, 1 car, 12th floor at $465,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380147
  
• 2 bed, 2 bath, 1 car 11th floor at $482,950 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380140
• 2 bed, 1 bath, 1 car, at $475,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380071
  

• 1 bed, 1 bath, no car, 39th floor at $409,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379839
• 1 bed, 1 bath, no car, 39th floor at $399,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379967
  
• 1 bed, 1 bath no car, 37th floor at $419,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380050
  
• 1 bed, 1 bath, study, no car, high level at $420,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379937
• 1 bed, 1 bath, car, midlevel at $435,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104379998
  
• 1 bed, 1 bath, 1 car, 25th floor at $460,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380131
• 1 bed, 1 bath, no car, 24th floor at $385,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380078
• 1 bed, 1 bath, no car, 23rd floor at $399,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380031
  
• 1 bed, 1 bath, no car, 18th floor at $335,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380121
• 1 bed, 1 bath, no car, 12th floor at $329,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104380114

Devine's own website lists four apartments for sale in Charlotte Towers:

• Apt 2603, 2 bed, 1 bath, 1 car at $498,000
  http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104281213
• Apt 3312, 1 bed, 1 bath, no car at $399,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104295395
• Apt 4101, 1 bed, 1 bath, no car at $378,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104143790
• Apt 3808, 1 bed, 1 bath, no car $367,000 http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103984351
  

Do you believe Devine that only two apartments are left for sale in Charlotte Towers? My guess is that the developer is holding more stock than this.

Devine's shareholder report states that about 30 apartments remained for sale on 30 June 2007, and that sale of all the remaining units were expected in the December 07 half.

It is noted that 2 bed apartments on the lower level failed to sell at auction earlier this year, with the best bid being $360,000.

I would avoid Charlotte Towers at all cost!

Kingshome Apartments - Taringa - Auction Result

Kingshome Apartments
310/190 Swann Road, Taringa
Ray White reports as follows:

Sold Friday 05-Oct-07

SOLD - Under the Hammer - Record Price - $1,350,000

Magnificent 3 bedroom apartment

Panoramic north-easterly city skyline views

2 car secure parking with storage lock-up

Skyline's views to further diminish?

Before you buy or rent in Skyline, read the Skyline posts below. Also, have a look at this area plan, available on the Internet. You can see that Skyline could easily become boxed in, with limited views in most directions. (Similar comments for Macrossan Apartments.)

In addition, the Australian Financial Review reported this week that Meriton lodged plans to build a 70 storey tower on the corner of Boundary and Adelaide Streets, with 200 serviced apartments (not to be sold), 200 residential apartments and 3 floors of offices. This will impact Macrossan and Skyline.

Tall Building in Queen Street, next to Aurora

Be careful if you intend to buy or rent in Aurora apartments in Brisbane. A huge building is proposed for next door.

See the pre-sales website. Hotel, offices and 109 apartments.

I hear that Aurora has many other problems. For example, count the number of lifts and the number of apartments. What is the average waiting time? And how many people are in each apartment? What is the condition of the common facilities -- are they getting too much use because of the number of people per apartment? What about the cold storage room for groceries and the residents workshop? Does the iris scan security work? Who is the resident manager, and what is the relationship between the resident manager and the developer?

FKP's Albion Development

FKP has an interesting project planned for Albion, called the Albion Mill. See http://www.themillalbion.com.au/ and
http://skyscraperlife.com/showthread.php?t=7627

South Bank - Arbour on Grey - Recent Sale

Apartment 2218, 180 Grey Street, South Bank
Arbour on Grey, a Mirvac development
Sold at auction for $635,000.
2 bedrooms, 2 bathrooms, Stage 2, 2nd floor.

Recent Apartment Auction Results and Apartments for Sale

These are auction results from the Ray White auction rooms, for a series of auctions taking place on Friday 21 September 2007.

• Charlotte Towers - Apartment 4405 - Level 44 - 2 bedrooms, 2 cars, facing North West - $610,000
  
• Aurora - Apartment 331 - Level 33 - 2 bedroom - 107sqm - 1 car - $620,000
• Aurora - Apartment 509 - Level 50 - 2 bedroom - $515,000
• Festival Towers - 2 bedroom - $495,000

Ray White has these apartments el cheapo apartments listed for sale (as at early October 2007) in Festival Towers,

108 Albert Street

:

• Festival Towers - Apt 604 - 1 bed, 53 sqm internal, H type with no view - very small balcony (3 sqm) no car park - $295,000
• Festival Towers - Apt 1405 - 1 bed, 53 sqm internal, I type with no view - very small balcony (3 sqm) no car park - $300,000
• Festival Towers - Apt 901 - 2 bed, 2 bath, 75 sqm internal - E type on corner - very small balcony (3 sqm) - $417,000
• Festival Towers - Apt 1311 - 1 bed, 54 sqm internal, M type with no view - very small balcony (4 sqm) no car park - $315,000
• Festival Towers - Apt 1401 - 2 bed, 2 bath, 75 sqm internal - E type on corner - very small balcony (3 sqm) - $435,000
• Festival Towers - Apt 1408- 2 bed, 2 bath, 83 sqm internal - D1 type - looking into back of M on Mary, very small balcony (3 sqm)- $415,000
• Festival Towers - Apt 3601 - 2 bed, 2 bath, 75 sqm internal - N type on corner - balcony that can be closed in (10 sqm) - $515,000
• Festival Towers - Apt 3702- 2 bed, 2 bath, 87 sqm including balcony - O type, one of the better plans - looking into Charlotte Street, however view of river to West will be lost when Westin Hotel is built on Elizabeth Street, small balcony (5 sqm)- overpriced at $525,000
• Festival Towers - Apt 3902- 2 bed, 2 bath, 87 sqm including balcony - O type, one of the better plans - looking into Charlotte Street, however view of river to West will be lost when Westin Hotel is built on Elizabeth Street, small balcony (5 sqm)- very overpriced at $555,000
• Festival Towers - Apt 2502- 2 bed, 2 bath, 87 sqm including balcony - O type, one of the better plans - looking into Charlotte Street, small balcony (5 sqm)- auction at end of October

Indigo Sued - Kelvin Grove Village Development

Today's Australian Financial Review (p. 60) reports a lawsuit against the developer of the Kelvin Grove Village apartment complex by three retailers. The developer is Indigo.

"According to the court documents, an Indigo employee had told the prospective retail tenants that more apartments had been sold in the complex than was the case."

I have always assumed this to be the case for most developments. I have seen agents say "development 50% sold" when that is not the case, or "construction started" when only demolition has started and the developer has not even obtained finance.

The AFR reports that several stores in the Village have already closed down, it would seem due to lack of people traffic.

The retailers are claiming over $700,000 in damages.

I visited the development last year, and my opinion was (at that time) that it was a dog. It seemed that it would take many years, if ever, for the area to develop into something. Although geographically close to the city, it is too isolated -- one cannot easily walk to the city, and the walk is unpleasant as you have to walk along major roads and cross a highway and a railway. There are no decent shops or facilities in walking distance -- other than the ones that are in the complex, and it appears that some are closing or have closed down. No-one I know living nearby would select the Village as a destination for shopping or relaxing.

The website states:

"Bordered by the Victoria Park Golf Course, Brisbane Grammar Schools, Queensland University of Technology, State Primary and High schools and within easy access to Royal Brisbane Hospital, the RNA Showgrounds, the Aquatic Centre, Suncorp Sports Stadium and the magnificant (sic) Roma Street Parklands - its the ideal location."

Really, the site is bordered four other development sites. Or your could say it is bordered by the six lane Kelvin Grove Road and the six lane Inner City Bypass highway. To get to Brisbane Grammar School, you have to cross the Inner City Bypass highway and a large railway line.

It is also in a gully.

About this time last year, none of the $770,000 townhouses had been sold.

A one bedroom is listed today at $420,000 by the developer being sued. Now, that sounds expensive! For that price, you could buy a 2 bed 1 bath in Skyline in the city, or a 1 bed in Quay West, or a 2 bed in a Devine building in the city.

Or you could snap up a 2 bedroom apartment from $549,000 to $625,000!!! (These are 77 to 90 sqm internal.) That is over $5,500 a sqm (including balcony) - very expensive for a suburb apartment building that has been on the market for some time.

Brisbane Apartments in the Suburbs

Sometimes, apartments in the suburbs provide better value than city apartments.

If in a good location and near transport, there is a greater pool of possible residents -- students, young city workers, retired couples, single mothers/fathers with one or two children, widows and the like. In other words, people who want convenience, but not the problems with looking after a house; people who want safety and facilities, but not a city apartment.

The areas of Brisbane that I think will have good capital growth over the next five years are:

• St Lucia -- near the city, Toowong and the University of Queensland. Some apartments have river and city views.
• Indooroopilly -- many facilities, on a main train line, near excellent schools and the University of Queensland. Some apartments have river and city views.
• Toowong -- close to the city, with facilities at Toowong Village, and a transport hub.
• Taringa (between Toowong and Indooroopilly) and on a train line
• Sherwood -- a nice village atmosphere, only 12 km from the city, and on a train line. Near good parks and schools.

People often say West End will be the next hot spot in Brisbane. My view is that the facilities are not as good as the above. I prefer the Southbank area to West End, as you have city and river views and face north. Most of West End faces West (e.g., see the view here.)

There are big plans for Indooroopilly and Toowong redevelopments. This will drive up prices of existing quality apartments.

But you have to be careful, as there are poor quality apartments or apartments in poor locations (i.e., on major roads) in these areas.

I recommend the following apartments and off-the-plan developments.

Off-the-plan

• Fresh Apartments in Toowong -- a resort style complex, with two pools (completion in early 2008)
  
• Ciana at Indooroopilly -- includes pool, restaurant and club (completion in late 2008)
  
• Parklands at Sherwood (completion in 2009) currently in pre-sales, includes pool
  

Typically, a two bedroom two bathroom apartment in these complexes is about $500,000, and will be about 85 sqm internal, and (in addition) a large balcony of about 30 sqm and airconditioned.

Example existing complexes

• Riva at Indooroopilly - river views, pool (which are always fully rented)
  
• Ikon at Indooroopilly, on Station Road, which is the subject of about 3 or 4 proposed new developments
  
• Encore at Toowong pool, close to excellent park (which are always fully rented)

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.

Brisbane Riverfront Apartment Sales

Admiralty Quays

2003 - 17 sales
2004 - 20 sales
2005 - 17 sales
2006 - 8 sales

Average Sale in 2003 = $617,088
Average Sale in 2005 = $509,517
Average Sale in 2006 = $1,040,625

Admiralty One

2003 - 17 sales
2004 - 12 sales
2005 - 15 sales
2006 - 12 sales

Average Sale in 2003 = $819,941
Average Sale in 2005 = $524,966
Average Sale in 2006 = $550,166

Admiralty Two

2003 - 11 sales
2004 - 22 sales
2005 - 14 sales
2006 - 14 sales

Average Sale in 2003 = $512,454
Average Sale in 2005 = $794,321
Average Sale in 2006 = $905,000

River Place

2003 - 31 sales
2004 - 46 sales
2005 - 50 sales
2006 - 41 sales

Average Sale in 2003 = $436,354
Average Sale in 2005 = $412,300
Average Sale in 2006 = $465,951

Quay West in Alice Street, Brisbane

A two bedroom apartment at Quay West (Apartment 2006) on Level 20, on the western side of the building, sold yesterday at auction for $830,000.

West End - New Development called Riverpoint

Riverpoint at West End in Brisbane is reporting strong off the plan sales. However, I did not like this proposed development.

Many of the apartments are tiny. Some of the 1 and 2 bedroom apartments are so small that they can't have regular doors - they need sliding doors!

Some examples (non-riverfront buildings, with no views)

Harmony - the building on the side

• Apt 2102, which is a 3 bedroom 2 bathroom apartment. The 3rd bedroom is internal and has no windows. This apartment is only 88 sqm internal! This must be one of the smallest 3 bedroom apartments in the world. Usually, a small 2 bedroom is 85 sqm internal. For example, the 2 bedroom apartments in Metro 21 are 85 sqm; a 2 bedroom in Admiralty Two is more than 100 sqm internal. So a three bedroom the size of a small two bedroom is unbelievable!
• Apt 2208 and 2308 - 1 bedroom, 50 sqm internal (plus 22 external), for $399,000. Compare this to a hotel room! A one bedroom in Quay West, overlooking the Botanical Gardens and with river views, is about 78 sqm including the balcony, and sells for $420,000 to $450,000 fully furnished.
• Apt 2305, 2 beds 1 bath on level 3, is only 66 sqm internal, and is listed for sale at $550,000.
• Apt 2203, level 2, 86m2 in total (including balcony). The second bedroom looks too small to hold a double bed.

Mosaic - the building at the back

• Apts 7210/7212/7311 are 2 bed 2 bathrooms on levels 2 and 3-- but are only 80 or 81 sqm internal, and face the back street. No river views at all. Prices on the list that I have from August 2007 range from $610,000 to $645,000.
• Apt 7202, level 2, which have 2 beds and 1 bath, are only 66 sqm internal. The second bedroom is an internal room with no windows, so I am amazed they call this a bedroom. Sliding doors to get into the bedroom, because I guess that a regular door would hit the bed if you opened it.

With other apartments in the complex selling for more than $2 million, I would be worried if I purchased on of these that I will be surrounded by apartments that are so small that they could be slums.

By comparison, a 3 bedroom 2 bathroom riverfront Mirvac apartment at Tennyson Reach will average about 200 sqm and cost between $1.3M and $1.7M. A larger two bedroom in Admiralty Two, on the river and in the city, with great views, is around $700,000 today. A two bedroom two bath at Indooroopilly or Toowong, with no views, off the plan for 85 sqm internal is around $500,000 today.

The Grosvenor

Today, apartment 2601 in the Grosvenor Building (corner of Alice Street and Edward Street) went to auction. It was passed in, without a bid and did not sell today.

This is a Mirvac building. It is in a great location, overlooking the Botantical Gardens and the Brisbane River, and opposite the Stamford Plaza hotel.

Some of the apartments in this building are fantastic. Some have strange floor plans. It is one of the more expensive apartment buildings in Brisbane, and only about one or two apartments get listed for sale each year. Mostly owner-occupiers.

Apartment 2601 is described by the agent, Dixon Johnston, as follows:
"The Grosvenor is a truly magnificent residential complex boasting incredible views across the Botanic Gardens, Brisbane River and city

Apartment 2601 is one of just two, 2-storey penthouses and enjoys generous living spaces, quality finishes and those ideal NE facing views

Situated right in the heart of the CBD, The Grosvenor is just an easy stroll to all the restaurants, cafes and sights the city has to offer"

Skyline

Skyline apartments in Brisbane are nearing completion. Settlement is planned for late October or November.

Colliers PRD reports that as at the end of June 2007 quarter, 33 of the 192 apartments remain for sale.

I was told that the developer had a number of 3 bedroom apartments available for sale. All 2 bedroom apartments have been sold by the developer.

I was also told that many people purchased off the plan with the intent of reselling around settlement.

I had a tour through the building, and was mostly disappointed. I was glad that I didn't buy any apartments.

Some comments:

• J type - 78 sqm internal, 98 sqm total. This was sold as a two bedroom, but the second bedroom is fully internal, and has "windows" looking into the kitchen. It is really a one bed plus study. It has river views between Admiralty Quays and Admiralty One. It was sold off the plan in the high $500K. There have been resales at less than $600,000, and there are many of these apartments on the market for resale. Overall, these are small, darkish apartments, and in my opinion are not very nice. My opinion is that these apartments are not worth more than $500,000.
  
• I type - 87 sqm internal, 102 sqm total. Two bed, two baths, no walk-in-robe. This apartment is a triangle in shape. You enter into the kitchen, which has a strange shape, and the island bench looks at a blank wall. The kitchen is around a corner, so to speak, and is dark. The dining area is large, and the living room has limited views between Admiralty Quays and Admiralty One. Both bedrooms are at the front, with views. This could have been a good apartment, apart from the overall shape and kitchen -- which does not work. There are a number of these apartments for resale between $650,000 and $680,000. My opinion is that these apartments are not worth more than $600,000.
• G2 type - 117 sqm internal, 142 sqm in total. Three bed, two baths. This apartment has a large feeling. There is a river view from the balcony and sideways from the living room. The living/dining/kitchen have a really nice vista down Howard Street to the city. The bedrooms are at the back of the building (Arch Lane). For the moment, they have a western vista across the northern end of the downtown. This view will soon disappear with Macrossan Apartments are built right next door, probably turning these nice apartments into dark apartments. The main bedroom has an open bathroom, so from the bed you have a view of two vanity basins. The built in wardrobes are in the bathroom. So what could have been a nice apartment has a strange main bedroom/ensuite design and will soon the bedrooms will be built out by Macrossan Apartments. The developer has a number of these available from $720,000 to $885,000, and is prepare to discount them to clear. There are resales starting at $690,000. On a price per sqm basis, these are good value. But long term, it will not be good. So I would value these at $650,000.
• K type - 101 sqm internal, 120 sqm in total. This is a small three bedroom at the front on the north-eastern side. When you walk in the door, and from the back of the apartment -- wow! A great river view. But as you move forward, you notice that this apartment is really behind Admiralty Quays. The main bedroom, at the front, basically looks into the back of Admiralty Quays. The living room is set up so that from your couch, when looking at the TV, your view out the window is of Admiralty Quays and not the river. The main ensuite has the same flaws as the G2 type. The second and third bedrooms look at the back of Devine's River Place. This is a small 3 bedroom, that has little privacy and a bad feeling due to Admiralty Quays. The developer has stock left at $835,000 to $855,000. There are resales available for $800,000 and less. My view is that these apartments are worth about $750,000.
• On the high floors are some magnificent three beds plus media room. They combine, in effect, the I and J types. All three bedrooms are at the front, and they are high enough to look over the Admiralty buildings. These are magnificent apartments. Resales at about level 30 around $1,500,000.
  

The onsite rental people give this information regarding rentals:

1BRM
Unfurnished: $360.00
Furnished: $420.00

2BMR
Unfurnished: $550.00
Furnished: $650.00

3BMR
Unfurnished: $750.00
Furnished: $950.00

3BMR+MEDIA
Unfurnished: $950.00
Furnished: $1100.00

Other comments. The pool is very small, and closed in by Admiralty Quays and Skyline. The tennis court looks fine, but has no lights and cannot be used at night -- and so will not be useful for most city workers. The quality of finishes is good, but becoming standard. Nothing that you would not expect from a new city apartment building. There will be two retail stores on the ground floor.

Overall, my opinion is that this is a B grade location. It will be no different to Aurora Towers -- river views, one block back. It is not a prime position, and is surrounded on one side by buildings and soon will be surrounded on the other side. There appear to be many speculators who have bought of the plan. It suspect that they will get burnt. Owner-occupiers will be disappointed with the floor plans, and anyone below level 30 will be disappointed with the views. It is, in my opinion, misleading to call this building riverfront, and to say that it is "the only Brisbane high-rise development to boast river vistas from every single apartment" is clearly misleading, as the H and H1 apartments on the lower floors have only a tiny glimpse of the river between River Place and its car park.

SL8 at West End

When I inquired a few weeks ago, SL8 at West End didn't have many apartments available.

It is still in pre-release, so FKP must be very happy.

Colliers PRD reports that in the June 07 quarter, 60 of the 112 apartments have been sold, at an average price of $566,000.

I was not thrilled with the location of this building. It is a long walk to the main street in West End. It is one street back from the river, but with two 7 story buildings between SL8 and the river. Most floors of SL8 will have no or limited river views, and the ones that do, are western facing. The building overlooks an ugly warehouse and commercial strip, with the Tempo block behind that.

Coronation Residences at Milton

Coronation Residences at Milton is a luxury apartment block, overlooking Coronation Drive and the Brisbane River.

The developer is currently discounting the remaining apartments.

The cheapest is a 3 bedroom on the Western side, level 1, at $995,000. It is 137 sqm internally, with a total of 198 sqm. (There are level 2 and 3 apartments available with the same floor plan, at $1,075,000 and $1,150,000.) The only problem with this apartment is that the wall of glass on the Western side looks into an office building.

There is a two story two bed apartment on Levels 5 and 6, unit 36. It is huge, with 142 sqm internal, and two balconies overlooking the river, to give a total of 169 sqm. Each bedroom and the dining room, lounge and kitchen have river and city views. There are two bathrooms and a powder room.

A magnificent 3 bedroom, floor-through, apartment on level 5, which is 200 sqm and listed at $1,395,000.

These apartments have the some of the best finishes in Brisbane. All have river views.

The only issue is that that they get noise from Coronation Drive. The windows are all double glazed, so there is little noise in the apartment. But it is not quiet on the balcony.

Compared with Riverpoint or Flow, these apartments are a bargain.

Festival Towers

I recently visited two apartments in Festival Towers, a Devine development in Albert Street in Brisbane.

Recently, the management rights were sold to the Oaks Group.

The complex is very lively. The common rooms and bbq areas at about 5pm were packed. Mostly foreign students.

The apartments on the South East side (e.g., S, T and U types) have now had their views blocked by M on Mary, a building designed mostly for students. A big loss of privacy for this side of Festival Towers.

The apartments on the North West side (e.g., P and O types) now have a river view in a Western direction, towards South Bank and Milton. That view will be lost when the new Westin Hotel building, Empire Square, is constructed on Elizabeth Street.

Two bedroom apartments in Festival Towers are selling in the $400,000s. They range in size from 85 sqm to much smaller, e.g., less than 75 sqm.

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.

Vue Apartments on Coronation Drive

FKP's Vue apartment complex is not having much luck. There are two towers, one owned and marketed by FKP, and the other owner by private investors and marketed by Ray White (originally marketed by FKP on their behalf).

The complex did not sell out, and still has a number of apartments for sale.

Possibly, it is because of the location. On the corner of Coronation Drive and the Inner City ByPass. Soon, a new bridge will be built right across the river in front of the complex.

The prices for the unsold apartments have been reduced.

At the end of August 2007, one of the best three bedroom apartments went to auction. It is on the 8th floor with river views. It was originally marketed in the high $700,000s, and it sold for $562,000. Other similar apartments are still for sale at about $660,000.

Details: 2806/92-100 Quay St, sold by RE/MAX Property Centre, sold at auction for $562,000.

FKP is currently selling SL8 in West End, which is one street back from the River and behind Tempo (still with unsold apartments) and LeftBank (completed 2004).

FKP will soon launch a complex to be built over the Milton Railway Station and next to the brewery. It is to be called Union at Milton.

Mary Street Developments

It has been reported that Devine has bought a two level complex at 99 Mary Street in Brisbane, which is adjacent to Devine's River City apartment building (at 79 Albert Street). Devine is said to be planning an A-grade office building. This will block views from the eastern side of River City apartments.

There are also plans for an office tower at 110 Mary Street, which is opposite 99 Mary Street. This is a 24 level office tower, called the Mattise Tower. This is next door to the Quest River Park Central Serviced Apartments building, and will block the views on the western side of that building.

There is also the large Vision apartment building at 105 Mary Street, which will be more than 60 levels. This will also impact the Quest River Park Central Serviced Apartments building, and will block the park views of the Charlotte Towers building.

There is also talk that the Kings Carpark at 53 Albert Street will be redeveloped, impacting River City apartments.

Charlotte Towers

There were two auctions yesterday (16 June 2007) for apartments in Charlotte Towers (128 Charlotte Street, Brisbane). The apartments up for auction were apartments 703 and 903, which are lower floor, 2 bedroom apartments. Both failed to sell, despite a well publicised auction and marketing campaign. The highest bid for each apartment was $360,000.

Based on sales around town, it is my view that fair market value for a two bedroom apartment in Charlotte Towers would be in the range $400,000 to $420,000, depending on the floor, whether the apartment faces West, and whether it has one or two bathrooms.

Agents have reported to me that a number of apartments in Charlotte Towers have been rented to students, and that in some apartments there are over 6 students living in a 2 bedroom apartment, and that one apartment had about 10 students living there.

The management of the rental pool has been sold to Oaks Hotel group, and I wonder if the current manager cares about the quality of the tenants.

Also, the river views for this apartment building will mostly disappear when the Vision building is complete.

I can only see apartments in Charlotte Towers going down in value.

New Hotels on Alice Street

It has been reported that the Royal on the Park on Alice Street in Brisbane will be demolished and turned into a large six star hotel. Also, Devine is said to be building an apartment hotel on the corner of Alice and Albert Streets. So you should take care if you are in a building that is on Margaret or Mary Street, as you may not have a view.

Admiralty One Website

The Admiralty One Tower in Brisbane has a new website, with floor plans and photos. Have a look at http://www.admiraltyone.com.au/

This website is good if you are looking to rent an apartment in Brisbane.