"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
Friday, April 24, 2009
Stockland Results 2009
Mr Quinn told analysts and reporters that Stockland’s residential sales performance remained strong, particularly among first-home buyers, and there were signs of recovery among second- and third-home buyers.
Mr Quinn said the high-end residential market remained soft and continued to affect Stockland’s apartments business.
Source: The Australian
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."
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
Brisbane Times
Sunday, April 19, 2009
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.
Thursday, April 9, 2009
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% |
Sunday, April 5, 2009
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
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 2009Friday, April 3, 2009
New Website for Portside
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
"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.
Saturday, March 28, 2009
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
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
Thursday, March 19, 2009
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
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
See also http://www.vecchio.com.au/news/2009-03-04.pdf
Sunday, March 15, 2009
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).
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).
Friday, March 13, 2009
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.
“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.
Tuesday, March 10, 2009
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
Water's Edge Progressing But Slowly
Pradella reports as follows:
"Waters Edge has received a fantastic response since its October launch late last year and has now achieved 50 sales in total to date. Despite the uncertain times, investors are regaining confidence and returning to the property market. Waters Edge, located on the river at West End, is testament to this with 2 apartments sold within the last week, with a further 3 expressions of interest obtained."
"Waters Edge has received a fantastic response since its October launch late last year and has now achieved 50 sales in total to date. Despite the uncertain times, investors are regaining confidence and returning to the property market. Waters Edge, located on the river at West End, is testament to this with 2 apartments sold within the last week, with a further 3 expressions of interest obtained."
Friday, March 6, 2009
Coastal Apartment or Working Class House?
"There are few more iconic sea-change destinations than the Gold Coast, which has earned a reputation as the king of population growth in Australia.
See Terry Ryder
But it's a long way short of being the king of capital growth.
Capital growth on the Gold Coast over the past five years has been half that achieved next door in downmarket Logan City, according to Real Estate Institute of Queensland figures.
The Moreton Bay region, a municipality that encompasses cheap mortgage-belt suburbs in Brisbane's north, has achieved considerably higher capital growth than the Sunshine Coast next door.
Within the Sunshine Coast municipality, the market leaders on capital growth are the railway towns in the hinterland (such as Beerwah and Landsborough), not the sexy coastal locations Noosa and Mooloolaba."
See Terry Ryder
Hamilton Harbour Floor Plans
Devine has released floor plans for Hamilton Harbour.
The apartments are small.
Example one bed sizes are:
- 41 sqm internal, 50 sqm in total
- 45 sqm internal, 53 sqm in total
- 54 sqm internal, 64 sqm in total (see plan above).
- 73 sqm internal, 84 sqm in total
- 74 sqm internal, 90 sqm in total
- 84 sqm internal, 98 sqm in total (see plan above).
"The residential buildings Harbour One and Harbour Two are each placed to take best advantage of river views. While being 22 and 19 storeys respectively, the buildings make a deliberate effort to present architecturally appealing building facades to the nearby neighbourhood while providing occupants with the best available living environment within the apartments."
Friday, February 27, 2009
Warning from NZ
"Sunshine Coast Remax real estate agent Michael Knights said the local housing market had dropped between 10% and 20% in the last 12 months, and the apartment market had been the hardest hit.
``A lot of the apartments that have been bought off the plans say 18 months to two years ago are selling for $100,000 to $200,000 less than people paid for them because there's just an oversupply."
Sunday, February 22, 2009
Water Leak in Skyline Apartments
I have never been a fan of Skyline apartments in Brisbane. They were marketed as river front, when they are not. The apartments are generally small and poky. The quality of the fitout was average. The Courier Mail reports on Saturday that there was a major water leak in the building, impacting a number of apartments, and doing a huge amount of damage. "Apparently about 48 units in the Watpac-built complex were affected, with the builder blaming the subcontractor and so forth..." One resident on level 23 reports more than $100,000 of damage to her apartment. Does not bode well for this building.
Roma Street Parklands Sale
A recent Brisbane apartment auction:
7041/7 Parkland Boulevard, Brisbane
3 bedrooms, 2 bathrooms, 2 car parks
In 2006, it was listed for sale for $685,000.
Sold at auction on 21 February 2009 for $730,000
7041/7 Parkland Boulevard, Brisbane
3 bedrooms, 2 bathrooms, 2 car parks
In 2006, it was listed for sale for $685,000.
Sold at auction on 21 February 2009 for $730,000
Friday, February 20, 2009
Disputes over Body Corporate Fees
Many buildings are changing the way body corporate fees are allocated amougst unit owners, causing disputes when penthouse apartments end up with lower fees.
See Courier Mail
See Courier Mail
Oaks Ok
"Mr Pointon said occupancy rates in Oaks's regional properties during January were 80-90 per cent and while its Sydney properties recorded 90 per cent, Melbourne 75 per cent, Adelaide 85 per cent, Brisbane 70 per cent and Auckland 77 per cent."
Source: The AustralianLow Demand for Prestige Homes
"The old belief that because of scarcity these properties would not fall much in this market, while more common housing stock would have bigger losses because of the amount available, has not proved correct. According to RP Data national research director Tim Lawless, this theory held true until recently when margin calls, devalued share portfolios, low company profits and lower than expected executive bonuses brought new conditions to the prestige sector. Now there is simply less discretionary income and lower demand for expensive homes.
"Demand has virtually come to a halt in some inner city areas," Lawless says.
RP Data has a stratified median house price index that divides each market into 10 layers, allowing analysis of different price segments.
In Brisbane, the most expensive tier fell 9 per cent and the least expensive fell 3 per cent.
Because no real improvement in business conditions is in sight, demand for prestige homes will remain relatively low, RP Data says"
Saturday, February 7, 2009
Parklands at Sherwood Completes
Stage One at Pradella's Parkland at Sherwood is now complete. There appear to be some good buys, including a large one bedroom for less than $400,000. There are apartments for rent too. This looks like a great development.
Friday, February 6, 2009
No Sunshine for the Coast
"Among the states, hardest hit appears to be Queensland, where 4000 new apartments are going begging: 1000 on the Sunshine Coast, more than 700 in both Townsville and Cairns, and far more on the Gold Coast. It is believed many of them have fallen into the hands of the financiers, given that most developers make just 20 per cent profit on a project." At least 4000 new apartments are still unsold in Queensland and most of them are believed to have fallen into the hands of their financiers. Bankers are now asking what to do with the properties, and the problem has prompted property experts to run seminars on how to deal with hotel resorts and the unsold million-dollar beachfront apartments that many now control. Mortgagee sales remain prominent on the Gold Coast, where 1383 new high-rise apartments were for sale in the November quarter. Only 37 were sold in the three-month period. That compares with 965 for sale in the November 2007 quarter, when there were 142 new high-rise apartments sold.
Raptis Goes Bust
Gold Coast and Brisbane developer, Raptis, went into administration today. Also, the developer's $700 million Hilton Hotel redevelopment in Surfers Paradise was put into voluntary administration this week. See CM
Saturday, January 31, 2009
Brisbane Rentals
It is rental season in Brisbane, and there is strong competition for apartments. Many people are delaying a buying decision, and so are renting. Some renters have locked in long term leases, taking these apartments off the market for some time. Some investors have put their apartments into a short term letting pool for nightly "hotel" rentals, taking these away from the permanent rental market.
Rents for decent unfurnished two bedroom apartments are as high as $600 per week. One bedroom apartments in decent complexes are very popular and hard to find. Add $100 a week for a furnished apartment.
If you are looking to rent, here are some ideas:
- Ciana Indooroopilly, 2 bedroom rents range from $475 to $600 per week
- Parklands Sherwood, 2 bedrooms from $440 per week; 3 bedrooms from $540 per week,
- Fresh Toowong, 2 bedrooms about $500 to $550 per week
- Admiralty Towers One, which has large apartments
- Arbour on Grey, from $550 per week for a 2 bedroom
- Metro 21, has both furnished and unfurnished, and is not doing short stay rentals so the building is more stable and homely.
Lawsuit Against Council over Brisbane Apartment Rates
BRISBANE unit owners have launched a Supreme Court challenge against the validity of the Brisbane City Council's rating parity factor scheme.
The scheme was introduced by Lord Mayor Campbell Newman in the 2008-09 Brisbane City Council Budget and has been strongly opposed by unit owners, particularly in inner city areas.Paul Cassels and Darryl Penfold, the president and vice-president of the Brisbane Association for Rates Equity (BARE), filed documents in the Supreme Court in which they seek a court order declaring the new rates scheme unlawful and invalid. The action has been brought by Mr Cassels and Mr Penfold on behalf of all BARE members, who are owners of lots in community titles schemes in Brisbane.
Outside court Mr Cassels said the Lord Mayor had tried to set the rest of Brisbane against unit owners by declaring they were millionaire "penthouse owners".
He said that wasn't true and the BARE was made up of average people who were opposed to rate hikes of up to 500 per cent. "The actions of the Lord Mayor have been disgusting," he said.
Mr Cassels said he hoped the Lord Mayor would reconsider his stand before the matter had to go to a court hearing. He predicted the issue would be a major factor in the next state elections.
Mr Cassels said the parity factor was a controversial rating mechanism that dramatically increased the general rates on thousands of units and townhouses throughout the city along with commercial and retail strata title property.
He said while the initial impact of the scheme would be felt most in inner city and near city areas, the exponential value formula on which the scheme was based meant that every year more and more units throughout Brisbane would be automatically "caught." BARE has already been instrumental in a substantial re-working of the scheme.
However, BARE has made it clear that it wants the scheme dropped and the rates cap on owner-occupied CTS property (also removed last year as part of the parity scheme) reinstated immediately.
Source: Courier Mail
despite the reported gloom
"After an eventful year’s end, it’s difficult to see where residential property is heading into the new annum. Media reports daily on the poor state of the economy and the likelihood that things will get worse before they get better, yet some signals are conflicting. There are plenty of locations and sectors that still lack stock and it appears that landlords are continuing to get historically high rents despite the reported gloom."
"For those wanting to bag a bargain perhaps the best prospects lie in some of those previously difficult to enter suburbs such as New Farm and Tenneriffe. Buyers over $700,000 have been thin on the ground and tenants are finding rentals a bit pricey, so it seems demand in these golden suburbs is becoming a little tarnished. Keep your ear to the ground and you just might bag a winner, but remember to keep things in perspective. Look for capital growth over a reasonable three to four year horizon. You’re unlikely to make your killing over the next 12 months."
"Of a related nature, good opportunities are also evident in the current market to purchase resale apartments in near new and recently completed buildings on the Gold Coast at prices which are at a significant discount on both the original sale price of the unit and also on the asking prices of similar new units. In some instances, the resale price of apartments appears to be below replacement cost of a similar new apartment."
Source HTW
Apartment Prices Dip
See Brisbane Times
Brisbane experienced a mixed December quarter, with house prices rising 3.3 per cent and units backtracking 3.5 per cent. Unit prices during 2008 dropped 6.5 per cent and house prices firmed 0.4 per cent.
More Rental Properties
"The number of available rental properties in Brisbane will increase this year as investors struggle to offload their real estate assets and become "reluctant landlords" instead, one expert predicts."
See Brisbane TimesMonday, January 26, 2009
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