Brisbane Rates

The Council successfully defended the lawsuit challenging the additional rates imposed on unit owners.

See Brisbane Times

See court judgment

Admiralty Quays - 1 bedroom apartment

There is a one bedroom direct river front apartment for sale in Admiralty Quays, listed at $625,000. This is one of the best buildings in Brisbane City, but that is a steep price. There are about 14 apartments in this building currently available for rent, including six furnished one bedrooms at $600 per week. (For about the same price, you can rent a two bedroom apartment with river views in Arbour on Grey at South Bank.)

Residex Prediction

"Residex is now confident that the property market will not crash as it did in the USA and UK. In fact, some areas are about to experience good future capital growth..."

Muddled Market

"The Australian Bureau of Statistic's latest report was of a 6.7 per cent national fall in the prices of detached residential dwellings for the year, and a 2.2 per cent fall since the December 2008 quarter.

That contrasts with figures from Australian Property Monitors and RP Data/Rismark International, both of which recently reported slight increases in national housing prices between the December 2008 and March 2009 quarters. Part of the reason is that ABS statistics are only for detached housing, while the other two include units, terraces and semi-detached dwellings.

But the difference really only highlights that statistics shouldn't be taken in isolation when making decisions about buying. Buyers advocate Curtis Associates says the APM and RP data figures are probably closer to what's really happening."

Source: The Australian

Letter from Vision

"... The financial crisis has also impacted Austcorp Group Limited, the ‘ Vision’ project parent. Austcorp has recently taken the step to appoint BRI Ferrier as Voluntary Administrator (VA) whilst it undertakes a restructure.

I wish to confirm that this VA appointment does not apply to Vision Brisbane Pty Limited the company with which you have an unconditional contract for your apartment.

I wish also to assure you that your deposit funds or guarantees are safe and held in a lawyer’s Trust Account as required by Queensland law. Should the project not proceed, your deposit will be returned to you along with any accrued interest entitlements. However, we are still confident that we are able to meet our obligations to you in delivering your apartment to your expectations.

We will continue to keep you informed about progress of the project along the journey to completion and handover of your ‘Vision’ apartment.

Trevor Chappell, Director, Vision (Brisbane) Pty Limited"

Light Rail for Brisbane

Brisbane's inner-city rail study has got the green light in the federal budget with a $20 million investment to work out an underground route and a preferred way of funding the ambitious $14.2 billion project.

SMH

Colliers March 09 Apartment Report

"Currently, the new apartment market is not healthy. A lack of appropriate product, has led to a lack of demand. Only 87 new apartments were sold the Inner City during the three month period to March 2009 producing a weighted average sale price of $650,063. From a historical perspective, this is the lowest weighted average price Brisbane has recorded since the March quarter in 2007 and displays the mind set of the current consumer who is seeking a price driven product. A total of 688 new apartments remain for sale within the Inner Brisbane ring. The bulk of this Inner City product exists as two and three bedroom apartments totalling 41% and 37% of new stock respectively. Based on recent demand through the past three months, the 688 available apartments allow an apartment supply of almost two years, a subjective figure but an eye opening one nonetheless."

Source: Colliers International Brisbane Apartment Report March Qtr 2009

Too Many Small Apartments?

"One of the other more interesting aspects that is starting to emerge in the market is the trend to smaller lot sizes and smaller houses, tiny apartments and an obsession with price points. In the short term this is a natural market reaction to tighter credit conditions, rising unemployment and a realisation that it is no longer a matter of “build it and they will come”. However, the net result of this market reaction and redesigning of projects not yet ready for the market is that in three years time, there will be a chronic shortage of good quality, larger apartments. This will apply to some extent to land subdivisions, however there is considerably more flexibility in being able to redesign land. The same cannot be said for apartments. So from this perspective, in late 2010 or early 2011 when Australia should be gathering momentum in the world again, there will be a shortage of premium, well located apartment product that is available to the market."

"Property values will fall in certain circumstances, but they only fall if you have to sell. Property is also not really a readily tradable commodity like shares, particularly when credit has become moredifficult to source. However the expectation surrounding residential property was that it continued to be easily bought and sold and as a result was highly liquid...wrong."

Source: NPR May 09 Newsletter

Dark Vision

Austcorp, the developers of Vision in Brisbane, has called in the administrators.

"The group said a "key cause" of its appointment of a voluntary administrator was the withdrawal of one of three banks in the syndicate to finance to Vision project.

It said it was "optimistic" the tower would go ahead and it would continue to "talk with interested parties who share their recognition that Vision is a very significant Queensland and Australian project that must succeed"."

Brisbane Times

See also The Australian

Real Estate Investment Books

List of real estate investing books (that can be shipped to Australia)

• What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures
• After the Fall: Opportunities and Strategies for Real Estate Investing in the Coming Decade
• The Complete Guide to Locating, Negotiating, and Buying Real Estate Foreclosures: What Smart Investors Need to Know - Explained Simply
• Short-Sale Pre-Foreclosure Investing: How to Buy "No-Equity" Properties Directly from the Bank -- at Huge Discounts

Visit the Real Estate Book Store

Mirvac's Tennyson Reach

Mirvac's Tennyson Reach (Stage One - the first two apartment buildings) is complete, and residents will be moving in this month.

I visited the display apartment at Mirvac's Tennyson Reach apartment complex. The apartment was on the 6th floor of the Softstone building -- it is a 3 bedroom apartment -- a "floor through" apartment with the main bedroom and a balcony at the front and two bedrooms at the rear. The view from the main bedroom, with floor to ceiling glass, was absolutely fantastic. A great view up river towards Indooroopilly, and you can see the city in the other direction. The Indooroopilly Gold Course is across the river.

The quality of the apartment was A1 plus. Plenty of room. The lighting was particularly clever. I loved the apartment and the view to the river. The view out the back was so-so. If the apartment was not so expensive (about $1.7M for the display apartment) and the location was not so remote, then I would definitely buy!

There seem to be more than 30 apartments listed for re-sale on RealEstate.com.au. Some examples:

• 3 bedroom, 226sqm, 7th floor, $1,850,000
• 3 bedroom, 3rd floor, $1,380,000
• 3 bedroom, 5th floor, $1,600,000
• 2 bedroom, 6th floor, $1,150,000

Brisbane Vacancy Rate

Vacancy rate for all Brisbane properties (houses and apartments, anywhere in Brisbane) is a low 1.9%

SQM has a good website to look at rental vacancy rates:
Brisbane City (4000 postcode) - 1.7%
South Brisbane area (4101) - 1.6%
Toowong (4066) - 1.4%
St Lucia (4067) - 1.5%
Indooroopilly (4068) - 1.9%
Sherwood area (4075) - 2.6%
Hamilton (4007) - 4.4%
Noosa (4567) - 2.2%
Mooloolaba (4557) - 1.3%

See also story in Courier Mail

"INNER Brisbane rents are increasing at more than 10 per cent a year, with a downturn in new apartments expected to keep vacancies tight.

DTZ Research has shown the biggest growth has been in one-bedroom units in the inner south and inner west suburbs of South Brisbane, West End and Indooroopilly, where rents have risen by up to 20 per cent.

The median rent of a one-bedroom unit in the inner south is now $420 a week, only $10 less than the CBD median price. DTZ director of project marketing Paul Barratt said the strongest growth in the next two years would be in near-city units and middle-ring suburbs with good transport."

APH Liquidation Sale

"THE last apartments in the Drift development at Casuarina will be up for grabs via a liquidation sale, after developer APH Properties announced a major sell-off of its final holdings in the project."

"On completion in 2010, the Casuarina community is expected to include 600 beach homes and 1500 apartments and villas, along with commercial and recreational facilities."

Source: GC

Prices still seem high. They are listed at $685,000 to $900,000 for a three bedroom apartment.

I will avoid this development and location!

APH is the developer who is trying to get Trilogy Towers off the ground - so maybe they need cash to proceed with Trilogy? The sales agent said that APH had finance, and would start work in February this year, but clearly that was not the case.

New Vigour in Property

See the debate involving Chris Joye in the Business Spectator, and the Crikey response.

"Of the mainland capitals, Darwin (+2.8 per cent), Sydney (+2.4 per cent), Melbourne (+2.4 per cent), Canberra (+1.4 per cent) and Brisbane (+1.3 per cent) led the charge during this period. The laggards were Adelaide (-0.3 per cent) and Perth (-0.7 per cent)."

"The most expensive houses are in Sydney (median value $565,928) and the cheapest in Adelaide ($410,442). The most expensive units are in Perth (median value $439,042) and the cheapest in Brisbane ($330,390)."

Matusik comment

Matusik comment

29 April 2009

"First home buyers continue to drive the property market, for the time being at least, while tenants wait for the investors to return and increase supply. We wrote earlier this year about a potential first-home buyers’ bubble.... There is now little doubt that such a bubble exists. Brokers, banks, valuers and agents cannot keep up with demand. ...prices for stock under $500,000 have risen by over 10% (and often more) since the introduction of the boost late last year. Assuming the boost is canned come budget time, we believe that there will be a short-term negative impact on the market, but one that will only really be a bump in the road. The reality is that low interest rates and rising rents will continue to make first home buyers want to enter the market and this, combined with high rental yields, will eventually entice investors back. This is supported by a record low vacancy rates in rental properties. If the boost is extended, we should see investors come back to the market quickly as they cannot afford to sit on their hands and watch the market move away from them. This will promote strong competition in the market place and drive values as we make our way through 2009."

HTW Month in Review

Month in Review

HTW says that, in relation to sales of Brisbane apartments, the market is at the bottom.

Prices Bounce Back

See RP Data Index and Full Report

Brisbane
The slowdown during 2008 hit Brisbane harder than many other capital cities, which is largely due to prices perhaps overshooting the mark in ’07. Brisbane had a stellar run in 2007 with dwelling values increasing by 25 per cent over the calendar year – the highest annual rate of growth of any capital city during that period. Over the last 12 months Brisbane residential values have fallen 3.4 per cent across both the houses and units market. Modest growth has returned to the Brisbane market during 2009 with the first three months of year seeing house values up 1.4 per cent and unit values up 0.4 per cent. Rental returns are approximately on par with the national average with houses providing a gross yield of 4.7 per cent and units 5.4 per cent.

Coolum

In an email from an agent, regarding White Shells (a development in the middle of nowhere):
"With this in mind, in the last 6 months we have reduced the prices of many White Shell apartments to meet the current market. Now is the perfect time to secure your dream beachfront property. For a snapshot of your new life make sure you visit our White Shells photo gallery."

With rent for a 2 bedroom apartment from $450 per week, I would hope that pricing would be no more than $550,000.

Miami Beach Luxury Apartments Doing OK

Even in the USA, where there is a property bust, certain properties are not doing so badly. What does this say for places like Noosa?

"... Brokers are quick to point out that all the gloomy headlines about Miami’s condominium glut and Florida’s foreclosure crisis describe the situation on the other side of the causeway, not in the city of Miami Beach, especially the fashionable enclave of South Beach. While South Beach has certainly cooled — inventory is up, prices are down, and agents say they’re working harder than ever to put together deals — anyone expecting to snap up a vacation getaway with views of the Atlantic for a song better search in a much less desirable part of the state."

See NY Times.

Survey Prediction

"It is predicted that the residential market in Sydney will be the first market to move forward next year, ahead of the other property classes and markets in Melbourne and Brisbane, which won't see any growth until 2011," said Mr Hecek.

Source: The Australian

Stockland Results 2009

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

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

Source: The Australian

Brisbane Rents

"Apartments are leading the surge in Brisbane rental prices, with weekly bills soaring more than 13 per cent in the past year.

New figures released today show the median rental price for units in Brisbane has increased from $300 to $340 in the past 12 months.

The 13.3 per cent jump means Brisbane has experienced the largest increase in year-on-year unit rental prices of all the major cities in Australia, except for Darwin where the median unit asking price rose 14.3 per cent."

"For landlords and investors, rental yields are now approaching or exceeding mortgage rates, and in some areas positive gearing is a real possibility.

"This will provide some stimulus for potential investors to re-enter the market and take advantage of favourable conditions."

Brisbane Times

Property Opinion re Australia

"Australian residential property markets are in much better shape than residential markets in Britain and the US. Higher lending standards in Australia mean there are fewer defaults forcing house prices down. There is a housing shortage and immigration, despite a cut, still remains strong."

Brisbane Times

Aurora No Sale

Auction on Saturday: Aurora, Apartment 609, 3 bedrooms, 60th floor, passed in. Now listed at $825,000. Previously listed at $915,000

SL8 in West End

SL8 in West End is nearing completion. The building has an industrial look, and the apartments have good views of industrial sheds.

2 bedroom listed for re-sale at $570,000 (Apt 203)
2 bedroom listed for resale at $560,000 (Apt 213)
2 bedroom listed at $690,000 (Apt 241)
2 bedroom listed at $550,000 (Apt 142)
2 bedroom listed at $617,000 (Apt 214)

For most of these apartments, the second bedroom looks over the back (open) hallway.

"With more than 90% of the 1, 2 & 3 bedroom apartments sold, limited opportunities remain to invest in SL8’s West End apartments. The two bedroom apartment final release is now selling from $565,000-$975,000."

See SL8 Real Estate (FKP)

Update: See readers comments here.

Rental Yield for Brisbane apartments (REIQ December 2008 Quarter)

Postcode	Suburbs	Rank	Yield
4000	Brisbane City, Spring Hill	1	6.30%
4169	East Brisbane, Kangaroo Point	2	6.00%
4101	South Brisbane, West End	6	5.10%
4068	Taringa, Indooroopilly	7	5.10%
4006	Newstead, Fortitude Valley	8	5.00%
4066	Toowong, Auchenflower	9	5.00%
4005	New Farm	11	4.80%
4067	St Lucia	14	4.70%
4059	Kelvin Grove	18	4.50%
4007	Ascot, Hamilton	21	4.50%

St Lucia - Visage and The Studio

Visage at St Lucia has sold out prior to completion. There are 26 apartments. Off the plan projects, if priced correctly, are still selling out. 2 bedroom apartments priced from $470,000. Developed by Aspect Property Group

This developer has DA to do a development within the University of Queensland grounds. Called "The Studio", this will be studio apartments for student.

Brisbane Unit Auction Results

• Breeze at Indooroopilly,41/8 Belgrave Road: 3 bed, highest bid at auction was $400,000, auctioneers bid of $780,000, passed in, now listed for $900,000
• Admiralty Quays, 144/32 Macrossan Street, Brisbane, 3 bed, sold for $1,885,000
• Skyline, 62/30 Macrossan Street, 2 bed, passed in at $563,000, now listed at $600,000
  
• Dockside Hotel, 601/44 Ferry St, Kangaroo Point, 2 bed, no bid
• Dockside Hotel, 510/44 Ferry St, Kangaroo Point, 2 bed, no bid
• MacArthur Chambers, 104/229 Queen Street, 2 bed, 2 cars, passed in at $720,000, now listed at $790,000
• 95/260 Vulture Street, South Brisbane, 2 bed, passed in at $645,000, now listed at $675,000
• Aurora, 117/420 Queen Street, 2 bed 1 bath, sold for $395,000
• 7/146 Macquarie Street, St Lucia, 2 bed 1 bath, sold for $500,000
  

Most of the above were auctioned at the Ray White Sunday Auction

Investors Returning

"Increases in rents have seen yields for Brisbane houses and units (at 4.4% and 4.9% respectively) increase, and yields for houses are now back to levels last seen in 2002. This together with lower interest rates is starting to make a more compelling case for investors, and counter cyclical investors are starting to return to the market."

"Prices did not peak until early 2008 and have only come back 5% since then. Whilst there is potentially further downside in the short term, the market is likely to stabilise and the high levels of demand are expected to see growth return once the economy starts to pick up. Brisbane has generally had high demand for apartments and units, and this means that the fall in prices for other dwellings has not been as much as for houses.

MLG Property Report - March 2009

New Website for Portside

Multiplex is still selling Portside Building 3.

Apartments for Sale
New website

1 bed plus study, level 12, 83sqm = $600,000
2 bed, 2 baths, level 15, 115 sqm = $1,120,000

Gold Coast Price Collapse

"Matusik Property Insights analyst Michael Matusik says the most dramatic price falls are in Gold Coast suburbs where premium and tourism-dependent holiday units are in oversupply. "Developers that have sold 60 to 80 per cent of the development are now looking for a profit or to break even so they quit the project and advertise apartments that were $1.1 million for $900,000," he says."

"L J Hooker's Surfers Paradise principal, John Newland, says apartments that sold for $1.4 million last year are being marketed for quick sales with asking prices about $800,000. He also reports a two-bedroom apartment with ocean views that sold last year for $580,000 is now listed for resale at $449,000. And another listed at $530,000 has been discounted to $439,000. Surfers International principal Malcolm Catchpole says an apartment that sold last year for $555,000 and rented at $560 a week is now on the market for $359,000."

For Full Story, See Domain

Toowong, St Lucia and Taringa Unit Report

"The Toowong Area unit market has seen a steady increase in median price during a five year period. Growth during this time was at a compounding rate of 9.6% per annum, with an average of 333 transactions per six month period. In the past year alone growth has climbed to register a median unit price of $410,000, equating to an increase of $43,000 or 11.7% from the previous year."

Source PRD Report from www.prd.com.au/research/

One Bedroom in Roma Street Parklands

One bedroom for sale in Roma Street Parklands - Pinnacle - for $669,000. Nice apartment, but that seems expensive! Compare a one bedroom at Quay West for $450,000

Body Corporate Levy Defaults

There are some buildings where there are a large number of owners who have not paid their body corporate levies for some time. Typically, the owner is trying to sell the apartment, and so stops paying body corporate fees. When buying, I recommend that it is good to search to see if the seller is behind on body corporate fees -- as this may indicate that the owner is desperate to sell. I would also avoid buildings where there are a large percentage of owners behind in payments. For example, there are a number of apartments in Aurora where body corporate levies have not been paid.

Grey Street South Bank

The Brisbane Convention Centre is upgrading and rebuilding on Grey Street at South Bank.

See this video.

This can only improve the values of apartments in South Bank.

Brisbane Apartment Prices to Grow

Real-estate experts are anticipating unit sales will outperform houses throughout 2009, with first-home buyers expected to be the market's driving force.
Brisbane Times

Best Buys for Brisbane Suburban Apartments

I have looked around this weekend, and these apartments seem to be good buys:

• Ciana at Indooroopilly has about 15 new apartments left for sale from developer. Three bedroom apartment for less than $565,000; large two bedroom apartments from $485,000 to $600,000.
• Parklands Sherwood - large two bedroom with 2 cars and views $535,000
  
• Fresh Toowong - large new 2 bedroom garden apartment at $520,000
• El Dorado off the plan: 2 bedroom apartments less than $600,000
• Precinct Toowong - mid size furnished two bedroom listed at $529,000
• Encore Toowong - 1 bedroom garden apartment listed at $339,000

There is also Tennyson Reach, where off the plan purchasers are trying to sell 2 bedroom apartments for $1,200,000 and three bedrooms from $1.6M. Ouch!

Recent Apartment Sales in Brisbane City

Skyline - Apartment 344 - Level 34 - Two bedrooms - $600,000 (highest bid, did not sell, relisted at $650,000 and did not sell. Current owner paid $695,000)
Aurora - Apartment 439 - Level 43 - Two bedrooms - $460,000
Club Lodge - Apartment 51 - Two beds, two cars - $440,000
Vue - Apartment 2409 - Two beds - $445,000
River City - Apartment 3802 - Two beds - $403,220
Flow West End - Apartment 80 - Four beds - failed to sell at auction

Rive Apartments Hamilton

If you have thinking of buying in Hamilton Harbour, have a look at Rive Apartments first. Similar location, larger apartments, and a lower price.

See also http://www.vecchio.com.au/news/2009-03-04.pdf

Harbour One Launch!

Ken Woodley, the Marketing Director for Devine, left the Harbour One sales office in Hamilton this afternoon with a big smile on his face. As he drove back to his large apartment in the Mirvac Quay West building in Brisbane, he was no doubt thinking about the 85 apartments that his team "sold" by way of expression of interest over the past two weeks in the Hamilton Harbour development.

The glossy brochure for Hamilton Harbour given out at the sales office is very impressive. You can feel the quality in the brochure. It is a shame that the brochure is misleading. There are nice PhotoShopped photos (i.e., fake photos) that show happy people on balconys with impressive river views. However, no apartment in Harbour One will have a balcony with the designs shown in the brochure, and the views will not be anywhere near as impressive (because there are buildings between Harbour One and the river.) And is it correct to say "Waterside Living" for a building on Kingsford Smith Drive that is two blocks back from the river with no direct river views?

The apartments with the best views face West, which is not great in a Brisbane summer.

The apartments are small and expensive. There are only three elevators for 238 apartments! There is no gym included -- you can join a commercial gym being built on the site. The living areas for most apartments have popcorn ceilings with oyster lights -- not the highest quality. Many one bed apartments do not have a car park. And a number of the one bed apartments do not even have a laundry -- not even a cupboard with a washing machine or dryer.

Type A One bedroom
41 sqm internal, 50 sqm total
No river views.
No car park.
No laundry.
Kitchen is a strip of cupboards in living room.
No room for dining table inside -- plan shows dining table on balcony.
Sliding doors to bedroom.
Price range - $295,000 to $385,000.
Price per square metre for most expensive of this design - $7,700
But if you add $50,000 for lack of carpark, then price per square metre is $8,300.

Type C One bedroom plus "extended living space"
54 sqm internal, 64 sqm total
Potential river views.
Kitchen is a strip of cupboards in entry way.
No room for dining table inside -- plan shows dining table on balcony.
No bath - shower only.
Price range - $405,000 to $495,000.
Example: Level 7 apartment is $430,000
Price per square metre for most expensive of this design - $7,734

Type E Two bedroom
73 sqm internal, 84 sqm total
Potential river views.
Second bedroom not near second bathroom
Both bedrooms at front
Price range - $555,000 to $695,000.
Example: Level 10 - $640,000
Price per square metre for most expensive of this design - $8,273

Type F Two bedroom
84 sqm internal, 98 sqm total
Largest two bed apartment
End apartment.
Potential river views.
Excellent glass-fronted wall to ceiling living space -- should give this apartment a wow factor!
Bedrooms at side or back -- second bedroom looks into blank wall.
Price range - $605,000 to $805,000.
Examples: Level 10 - $690,000; Level 12 - $745,000
Price per square metre for most expensive of this design - $8,214

It would be interesting to track re-sales in the recent Devine Charlotte Towers, to see if the apartments were priced too high when sold off-the-plan.

According to REIQ, the medium Hamilton apartment price for December Qtr 2008 was $415,000, which is down 11.6% on the previous quarter. Buying an existing apartment may be better value, or even Portside. For example, a two bedroom apartment in Admiralty Two, with direct river views and absolute river front, can be purchased for less than $650,000 (106 sqm) and is less than $6,000 per sqm. A one bedroom in Quay West, where Ken Woodley lives, is about 74 sqm, includes a car park, and is about $440,000 (less than $6,000 per sqm).

Gold Coast Still Not Golden

Queensland development group Pikos Group has announced it will slash prices by 25 percent, or up to $600,000, on all beachfront apartments in its three Gold Coast projects so it can keep its staff and contractors employed and pursue further beachfront acquisition opportunities.

The Brisbane-based company, headed by Pedro Pikos, has responded to the property market slowdown by discounting prices on all remaining stock. Source

REIQ Apartment Price Report for Brisbane - Dec Qtr 2008

As house prices escalated, units and townhouses were the most affordable – and often the only – option for first home buyers. But with the $14,000 and $21,000 boost monies now available, many first-time buyers can now afford to buy a modest house instead.

“This trend, plus investors not yet comprehensively returning to the market, means the unit and townhouse market has been affected by lower overall demand in the December quarter. Over the year, however, most areas recorded steady price growth,” REIQ chairman Peter McGrath said.

Brisbane City - Median December 08 Qtr - $460,000, with 2.2% increase over the Dec 07 results.
Indooroopilly - Median December 08 Qtr - $375,000, with 6.6% increase over the Dec 07 results.
Taringa - Median December 08 Qtr - $365,000, with 10.4% increase over the Dec 07 results.
Toowong - Median December 08 Qtr - $342,500, with 14.9% increase over the Dec 07 results.
West End - Median December 08 Qtr - $524,000, with 7.9% increase over the Dec 07 results.

French Quarter - Site Plan

Devine is proceeding with the French Quarter development, on Albert, Alice and Margaret Streets in Brisbane. Devine has applied for Council approval for a commercial tower (tower 3) at 111 Margaret Street.

Gold Coast:: Heading Up or Down?

A recent story in the Gold Coast Bulletin, which seems to try only to have positive stories about Gold Coast real estate, states:

"New apartment sales slumped during the December, 2008 quarter with just 77 unconditional transactions taking place for a total of $62.6 million, according to Colliers' latest Gold Coast Apartment Report. The figure was the second lowest on record since the research was first compiled in December 1996.

The research found sales in the December 2008 quarter, dropped significantly from the two previous periods, with 121 sales recorded in the September quarter and 448 sales in the June quarter. It was the worst quarter on record since December 2000, when 74 sales were recorded for a total of just $28.5 million. In the past two years, the number of sales per quarter has averaged 356. The report found the level of stock had also increased, with 2259 new apartments now available for sale, approaching the record figure of 2574 available in June 2007."

The story is titled "The only way is up for unit sales" and the remainder of the story rationalizes why this is the bottom of the market on the Gold Coast, and why it will get better for the remainder of this year. I disagree. My view is that the Gold Coast apartment market is still overpriced, and will see a significant decrease in price over the next 9 months.

Soleil Tower Price List

SELLING APARTMENTS OFF THE PLAN - Soliel Brisbane
Prices as at 9th Feb 2009
All apartments for sale start from level 31

One Bedroom apartments priced from $346,000
Two Bedroom apartments priced from $489,000
Two Bedroom plus study apartments from $529,000
Three Bedroom apartments priced from $774,000

Expected settlement at the end of 2011.