Monday, October 20, 2008

United States House Prices Far from Bottom

"One reliable proxy of housing values — the ratio of home prices to rents — indicates that in many cities prices are still too high relative to historical norms. In Miami, for instance, home prices are about 22 times annual rents, according to analysis by Moody’s Economy.com. The average figure for the last 20 years is just 15 times annual rents. The difference between those two numbers suggests that a home valued at $500,000 today might be worth only $341,000 based on the long-term relationship between prices and rents."

NY Times

No More NorthBank

The Premier axed the NorthBank development on the edge of the Brisbane CBD.

See Sunday Mail - it was front page news.

People in Casino Towers and the west side of Quay West are happy no doubt.

Wednesday, October 15, 2008

Doubtful Vision

Riverpoint Update

Riverpoint reports that it has reconfigured some of their apartment layouts:

"... we are about to release a whole new range of designs, in response to public demand. They incorporate a range of 2 bedroom, 2 bathroom apartments, 3 bedrooms apartments and Sub Penthouses. These stunning new designs will be released to the Brisbane Property Market on Saturday the 25th of October."

"The new Super Penthouse will be built over floors 7 and 8 of Mosaic [note: this is not a direct riverfront building] and will raise the level of riverfront living to unexpected heights, in this rapidly evolving prestige location. The Super Penthouse will be spread over 700m² of exceptional living. It will also incorporate a 70m² ballroom/entertaining space on the 7th floor, complete with its own private lift to level 8 – The Owners Enclave."

West End Unit Owners are Concerned

"WEST END: Riverside apartment dwellers are banding together in a bid to give their direction on the future shape of the community. More than 30 residents from the Flow, Koko, Leftbank and Tempo complexes have met to discuss the need to build a sense of community in the area. Regatta Apartments body corporate chairman Paul Rees said they hoped to build a liveable community, not only for apartment dwellers but the whole of West End.

“We’re planning a series of regular events to build community in our area and the first event will be a breakfast in Riverside Park on Sunday, December 7 at 9am,” Mr Rees said.

He said they invited local, state and federal representatives as well as community groups and property developers to attend the breakfast to hear their ideas. Among residents’ concerns are building heights, closing Riverside Drive to public traffic and fast-tracking plans for a CityCat terminal. And Mr Rees said residents felt they were not consulted about increasing building heights.

“We are appalled at the suggestions of 15, 20 and 30-storey highrises being built here,” he said.

“We moved into this area believing the height limit would be seven storeys and we don’t want to see our area turned into a concrete jungle,” Mr Rees said.

He said a CityCat terminal and a reliable bus service on Montague Rd were important to give residents adequate public transport. Mr Rees said they supported redevelopment of the old riverside industrial areas as long as it was on a “human scale” and integrated with the established community of West End, “rather than creating a concrete barrier between West End and the river”."

See City South News

River City and Oaks - Again!

I saw this on a bulletin board:

"Remember the controversy of kicking all those tenants out of Charlotte Towers??? Well... guess what... its happening again, but with River City.

The Oaks has send letters to all of their tenants telling them that they must leave because their apartments will be turned into short term accom... BUT... and thats a big but because the Oaks as NOT INFORMED any of the owners that they are kicking out tenants so that they can convince owners that they could get more money from short term accommodation."

See this post.

I would be careful and do a complete due diligence before buying in an apartment in a building managed by Oaks.

Saturday, October 11, 2008

Predictions and Guesses

A lot of people seem to think that it is the end of the world as far as property investment is concerned. These are my thoughts.

Facts:

  • Interest rates are going down
  • There is low unemployment in Queensland
  • There are few vacant rental properties, and rents are still increasing in Brisbane
  • According to REIQ and RP Data, medium prices have fallen less than 3% in the past 6 months, and over the past year prices have still increased
  • Property is still selling. For example, a three bedroom apartment is Admiralty One sold in less than a week. At auctions in Mooloolaba this weekend, which has been a tough market, there were 2 two bedroom apartments that had bids of more than $1 million: Oceans 503 had a highest bid of $1,200,000; and Sirocco 604 had a highest bid of $1M.
  • Banks are still lending money, but they have tighter lending requirements
  • For most of Brisbane, there are very few delinquencies.
  • In outlying areas (such as Forest Lakes and Springfield) and low quality bulk highrise marketed to investors (e.g., Charlotte Towers, and other recent Devine buildings), there are distressed sellers who are selling for less than they paid.

Assumptions:

  • Matusik, who is a very bullish property consultant, has the following assumptions in most of his presentations, but I am not sure how many of them will turn out to be correct (and some from his September 2008 presentation are already wrong):
    • interest rates to drop by 0.5% in fiscal 2009
    • $A remains high – above 85 US cents
    • migration to oz remains high US economy has a mild recession, mild recovery in 2009
    • demand for our resources continues
    • share market settles down unemployment remains below 5% and wages growth remains constrained
Opinion and Predictions (Guesses?)
  • Property in inner Brisbane will take longer to sell than over the past 3 years (e.g., time on market will return to a more normal period of time, from 15 days to 30 or 40 days).
  • Prices for poor quality apartments will fall by 25%
  • Prices for apartments that have their views destroyed (e.g., Charlotte Towers, 212 Margaret, River City, and some in South Brisbane) will fall by 25%
  • Prices for apartments without carparks will fall
  • Some new apartments for off-the-plan developments) are priced too high for what they are, and will have difficulties selling in the short term (e.g. Waters Edge, Empire Square, Vision)
  • Anything priced over $6,000 per sqm will struggle to sell, unless it is really special
  • Off the plan developments will not sell well until completion -- in uncertain times, people do not want to make bets on the future, especially where the product being sold is intangible -- people want to touch and feel in uncertain times.
  • Really good stuff will sell, and will not reduce in price by more than 5% (if at all)
  • In February 2009, the market will pick up, but will not have growth of more than 10% per year for at least two years
  • Due to lack of building today, things will get better for investors in good locations in the short term
  • This year, my property portfolio looks better than may stock portfolio.

Future Brisbane Apartment Developments

Useful Websites About Brisbane Apartments

When I am looking for information about Brisbane apartments under construction, I find useful information on the following two websites:

Chermside

I have never been excited about Chermside. However, here are some links to Chermside apartment buildings:

Friday, October 10, 2008

Soleil Tower Website

Fall of an Empire

The Empire Square project on Elizabeth Street in Brisbane, which was to include a Westin Hotel, has been scrapped.

"Developer Metacorp is today in the process of advising investors it will not proceed with the development because it has lost financial backing, sources have told brisbanetimes.com.au. The empty retail stores on the site of the planned development have been readvertised for lease."

It was reported that a large number of the 100 apartments had sold off the plan. The minimum price was $1.3M for a 2 bed apartment.

See Brisbane Times.

Wednesday, October 8, 2008

August Property Value Index

RP Data Rismark Index for August

"The national end of month property indices report released by RP Data & Rismark International confirms that the supply and demand imbalance currently being experienced in the Australian property market has placed a floor under housing prices, resulting in minimal value falls.

Based on the analysis in the report, this is most evident in the metropolitan areas around the country where record population growth has not been accompanied by new dwellings to satisfy the housing demand.

According to RP Data National Research Director Tim Lawless the property market has proven to be remarkably resilient with national dwelling values remaining positive over the 12 months ending August 2008. Over the three months to August 2008 there was a modest decline with property values down by just 0.96 per cent over this period.

Mr Lawless said the recent figures should put to rest claims that Australia’s property market is headed for a crash. “In fact, values are holding relatively firm particularly when compared to the benchmark equities S&P/ASX 200 Index which dropped by 19 per cent between January and August,” he said.

One of the most interesting findings in the indices release today was the convergence of the capital city market dynamics over the past six months which revealed that all capital cities recorded slightly negative growth; no particular city was significantly out of step with the others.

According to Rismark International’s Dr Mathew Hardman “Clearly, the observable phenomenon of the two-tiered markets in Sydney and then in Melbourne and to a lesser extent in Brisbane and Perth has disappeared ”

“Market movements are now similar across all metro areas rather than value falls being isolated within the mortgage belts. This balancing can be attributed to the squeeze the more affluent markets are experiencing due to the turbulence in the financial and equities sector.

“Looking towards the next six months, strong excess demand in most capital cities is creating a floor under property values, making large falls unlikely,” Dr Hardman said. According to RP Data, with population growth projected to remain high and interest rates falling, the demand/supply imbalance is expected to protect the market from any major falls in property values. Rismark International’s Dr Hardman believes that unemployment is not a major factor driving property prices; affordability, excess demand and market momentum are far more significant he said.

“Although unemployment is rising, unless it grows rapidly to significantly greater levels, eg 6 or 7 per cent over the next couple of years, excess demand will eventually outweigh affordability constraints and begin to push property markets upwards again, probably by the second half of 2009.”

Brisbane

  • Brisbane has actually fallen more than Sydney & Melbourne over autumn & winter: on average by 3 – 5 per cent. The median house value is now $455,146 and the median unit value is now $326,606.
    South East Queensland continues to be the strongest population growth region in Australia. Such strong demand for dwellings will continue to place upwards pressure on values over the medium to long term.

See http://www.rpdata.com/news/rp/20081001_media.html

Water's Edge at West End - Traffic Concerns

Brisbane apartment project dismisses transport concerns

The company behind a new apartment complex in Brisbane's West End says it does not think the project will worsen local traffic flow. The old box cardboard factory near the Brisbane River will be replaced by 220 apartments. There will be two eight-storey towers built on the site.

Ross Higgins from Pradella Developments says it should attract more transport infrastructure to the area.

"West End's undergoing a major infrastructure redevelopment from a traffic point of view now," he said.

"And really what we're doing is replacing a lot of people that were working in the area anyway.

"I don't believe it'll have a negative effect on transport in fact I think that it'll bring more transport infrastructure to the area."

Source: ABC News

In fact, there are plans for more than two buildings on the site -- with two or three buildings planned for the other side of Duncan Street as well, as shown on the map on the project website.

See also Brisbane Times

Wednesday, October 1, 2008

Brisbane Association for Rates Equity

There is now an association of apartment owners that is fighting the Brisbane rate increases for apartments. It is called Brisbane Association for Rates Equity, or BARE.

See www.brisbaneratesrort.com
and
http://brisbaneratesrort.blogspot.com/


Buranda High Rise Development

See Brisbane Times

"Thousands of new residents, workers and shoppers could soon flood the inner-city suburb of Buranda if a large-scale urban village, featuring buildings up to 32 storeys high, is approved by Brisbane City Council. The Anthony John Group (AJG) this week lodged an application to transform a parcel of former industrial land on Logan Road, south of the city, into a mega-development. Dubbed Buranda Village, the site would be home to eight buildings comprising residential apartments, office space, a hotel, a cinema complex and sprawling retail outlets."

I was not impressed by Anthony Johns Group's apartment development in the Valley, the Emporium -- built between two main roads, the apartments either look at a car park or a main road. Small apartments and noisy. My guess is that this will be much of the same

Monday, September 29, 2008

Parklands at Sherwood Residential Development

I recently visited the Parklands at Sherwood development, by Pradella. It is currently under construction, with stage one completion planned for this year.

When complete, the development will have 239 residential dwellings - a mixture of houses, townhouses and apartments. They all share a pool, gym and resident's meeting room. For this post, I will focus on the apartments.

Stage One consists of 28 apartments, over two floors. There is a mixture of 1, 2 and 3 bedroom apartments. Half the apartments face the park, and half face the town houses.

Stage Two consists of 54 apartments, over three floors. Again, a mixture of 1, 2 and 3 bedroom apartments. Half the apartments face the park, and half face the "village green".

All apartments have air conditioning, and elevator access to 2 car park spaces in the basement.

The sizes of the apartments are typical. For example:

  • larger: 2 bedrooms, 2 bathrooms, 1 study nook = 91 internal and 30 external = 121 sqm
  • medium: 2 bedrooms, 2 bathrooms, 1 study room = 88 internal and 22 external = 110 sqm
  • smaller: 2 bedrooms, 2 bathrooms = 83 internal and 14 external = 97 sqm
The larger apartment listed above is an end apartment, and so has good light from two sides. The living area has over 5 metres of glass sliding doors. The ensuite has both a bath and shower. There is a separate laundry. The bedrooms are well separated, and the second bedroom is near the bathroom.

For the medium apartment listed above, both bedrooms have views. The bedrooms are well separated, and the second bedroom is near the bathroom. The ensuite has both a bath and a shower. The separate study room is a real room (but with no windows) -- it is large enough to be a nursery, guest bedroom or media room.

The best thing about the development are the views from the parkside apartments. You just see green parklands for miles. The apartments are built on a hill, facing north and north east. They are up high, so even the lower floor has views. There is park immediately in front, then Oxley Creek, the Brisbane River and Indooroopilly Golf course. From the second floor apartments you can see city buildings -- I could see the clock on the Suncorp building. Great aspect, views and breezes. I really had low expectations, but was blown away by the views. And they can never be built out.

This development will be unique in the Sherwood / Graceville / Chemler area. It is well located, near the Sherwood State School, and walking distance to Woolworths in the Sherwood village, and the railway station at Sherwood. Here is a link to an area map.

In stages one and two, most of the 2 bedroom parkview apartments have sold. There are no one bedrooms that have park views. All of the 3 bedrooms have parkviews, and most of these have not sold. Price ranges are below, and when compared to FKP's development at Albion, these prices look like bargains for what you are getting:

1 bedoom apartment 2 bedroom apartment 3 bedroom apartment
$399,000 - $439,000AUD $560,000 - $609,000AUD $735,000 - $789,000AUD

SouthPoint Residences at SouthBank

Here is an interesting drawing, showing the proposed building at Southbank, with the existing Collins Place building left standing.

Southpointresidences

Landmark Byte Brisbane Residential Report

"After recording the strongest growth and activity for the last five years during 2007, the Brisbane residential market like other markets across the country has entered a period of softening. Although key fundamentals of the market including limited housing stock and land supply, record low unemployment and continued growth in population remain solid, other factors such as affordability, high interest rates, declining consumer sentiment and volatility in equities and credit markets have produced a greater impact on the overall market."

"LandMark White expects the Brisbane residential market could fall by up to a further 5% in the next six to twelve months. We anticipate the landing will be quite soft across most market sectors due to the strong fundamentals in the Brisbane market including population growth, under supply of housing and a strong rental market however there is a risk the market may get worse rather than better. This appears to be very much dependent upon overseas issues and a slowing global economy. In the medium term, the only prospect of a change in the market is for the Reserve Bank to soften interest rates further. This now seems more possible however there is a perception that as interest rates fall further, the price growth seen over 2007 will return. This optimism may prove to be unfounded with buyers more likely being more aware of the negative implications of such a price growth cycle and issues of affordability."

See full report.

Thursday, September 25, 2008

Vision or not?

See this AFR story, which says that Vision does not have finance and no construction contract has been signed. Trilogy sounds more optimistic. It reports that 74 out of 192 hotel apartments have been sold. The Westin Empire Square -- hard to tell what is actually happening -- sales are good, but no finance yet.

Trilogy and Water's Edge Video

See this video.

A similar story from the Brisbane Times, which is a little misleading because presales have been going on for months:

Brisbane skyscraper nets $50 million in first week
Shannon Molloy | September 19, 2008 - 10:23AM

Investors have swooped on a new mixed-use CBD skyscraper development and snapped up more than 70 hotel suites in less than a week, resulting in a $50 million sales success.

Standing at 265m and boasting residential, hotel and office space, the Trilogy Tower project on Queen Street will be one the city's tallest buildings when complete.

Developer APH Capital caused a stir last weekend when it officially opened sales for its luxury hotel suites, which represent the first new five-star product to be released to the local market in more than a decade.

More than 30 per cent of the hotel component has sold since last weekend, generating at least $50 million.

Brisbane has one of the highest hotel occupancy rates in the world and the hotel market has been bustling with investor activity in recent years.

APH managing director John Wilson said the success at Trilogy highlighted the continuing strength in the market.

"It shows there's a huge awareness of the demand for new hotel room stock and a particular need for five-star rooms in the Brisbane CBD," Mr Wilson said.

"The response to the product has been nothing less than sensational."

Trilogy Hotel, to be managed by Mirvac Hotels and Resorts, will comprise 192 fully-furnished one- and two-bedroom apartment suites.

The rest of the tower will also be home to a luxury residents and an office component featuring 31,000 square metres of space over 28 levels.

Construction is expected to be complete in 2012.

Wednesday, September 24, 2008

Brisbane Apartment Prices are Not Decreasing

According to the REIQ Unit Report issued today, demonstrates that Brisbane apartment prices are not decreasing.

For Brisbane City downtown area, the median sales price for apartments the 12 months to the end of June 2008 was $451,000, which is an increase of 4.2% over a year. The median sales price for the 3 months to the end of June was $460,000, also an increase over the quarter.

Related story in Courier Mail

Sunday, September 21, 2008

Sales and Auction Results for Brisbane Apartments

Felix

  • Apt 294 - highest bidder = $395,000
Skyline
Riverplace
  • Apt 32 - highest bid - $640,000
  • Apt 304 - passed in
Aurora
Casino Towers
River City

Recent Opinions

Extracts from RP Data's Property Pulse this week:
"With fewer buyers in the market, ABS statistics are highlighting a reluctance by developers to initiate the building of new housing projects. This may be good news for sellers, as the lack of new stock helps to underpin existing market listings with a floor price. Investors should also benefit as population growth and a general housing shortage will likely drive up rents in coming years.

The new figures suggest residential developers are still cautious of soft market conditions despite a fundamental undersupply of residential housing stock. The reluctance from developers to build is understandable: buyers are few and far between at the moment and the number of housing loans continues to fall as credit standards tighten. Adding to the disincentive to build are the ongoing rises in the cost of construction materials and shortage of labour.

The net results of these two factors: low levels of housing construction and strong population growth, are at odds with each other. At the base level we are seeing demand for housing far outstripping supply, and the situation is worsening.

There are two factors flowing from this supply/demand imbalance. Firstly, the undersupply of dwellings places a natural floor under housing prices. This is the fundamental reason why property values have not fallen further in Australia’s major residential markets.

Secondly, the pressure is building on the rental market. Vacancy rates are averaging less than 2% across the nation’s capital cities and rental rates for houses have increased by almost 11% over the last year. We should expect to see rises of a similar magnitude over the coming year.

As property value growth remains sluggish and rental rates continue to power ahead we can expect rental yields to show consistent improvements. For investors the prospects are quite compelling: strong buying conditions and the prospect of improving returns. For renters the news isn't so good – expect further rent rises and more competition for quality rental stock. Now may be the time to consider extended lease arrangements to lock in at today’s prices!"

Landmark White says, in a recent email newsletter:
"LandMark White expects the Brisbane residential market could fall by up to a further 5% in the next six to twelve months. We anticipate the landing will be quite soft across most market sectors due to the strong fundamentals in the Brisbane market including population growth, under supply of housing and a strong rental market however there is a risk the market may get worse rather than better. This appears to be very much dependant upon overseas issues and a slowing global economy. In the medium term, the only prospect of a change in the market is for the Reserve Bank to soften interest rates further. This now seems more possible however there is a perception that as interest rates fall further, the price growth seen over 2007 will return. This optimism may prove to be unfounded with buyers more likely being more aware of the negative implications of such a price growth cycle and issues of affordability."

Saturday, September 20, 2008

Milton Union Station Development


"A 30-storey highrise with 210 units, hotel, and a 10 storey office tower over Milton railway station will be built within the next three years after receiving the greenlight from Brisbane City Council."
See Courier Mail
I wonder if the fumes and smoke output from the brewery will impact those living in the apartments?

The article also mentions the Mill at Albion:
"FKP is also building another transit oriented development at Albion, which was approved by the council in April. Mr Miller said so far 120 of the 140 units averaging about $650,000 each had been sold."


Promenade Building at Multiplex's Portside

Multiplex have started to sell the fourth building in the Portside development at Hamilton Shipping Terminal. This building is named Promenade. Here is a video.

Promenade is being marketed as waterfront, but the building is not waterfront. It is behind other buildings. (In addition, the firth building, Hamilton Waterfront Residences which is the same height, will be built in front of Promenade. HWR will have "absolute waterfront" apartments with an average price of $1.6M.)

Promenade has apartments from level 4 to level 15. There are a mix of 1, 2 and 3 bed apartments. There are two levels of quality -- the lower levels are not as good quality as the higher levels. For example, the lower levels are not fully airconditoned - there is a wall mounted unit in the living room only. The cupboards are laminate. On the lower levels, the quality of finishes are lower, and in my opinion by today's standards, quite poor.

There are 144 apartments, and according to documents dated 19 September 2008, 45 apartments have sold. Most of the apartments that sold are on levels 6 and 7 (which are the 3rd and 4th levels of apartments). Only 8 apartments have been sold on the top six levels. The most expensive is $1,650,000. The cheapest is a 1 bed with no car for $385,000.

Here are some sample prices (noting that the first level of apartments is level 4):

Level 5, Apartment P014, 2 bed, 2 bath, 1 car, 90 sqm internal, 24 sqm balcony, 114 sqm total, plaza views = $669,000

Level 8, Apartment P033, 2 bed, 2 bath, 1 car, 95 sqm internal, 29 sqm balcony, 124 sqm total, river views = $719,000

Level 12, Apartment P141 (illustrated above), 2 bed, 2 bath, 1 car, 92 sqm internal, 18 sqm balcony, 110 sqm total, river views = $960,000

Level 12, Apartment P142, 2 bed, 2 bath, 1 car, 93 sqm internal, 17 sqm balcony, 110 sqm total, Hamilton views = $790,000

Level 14, Apartment P068, 2 bed plus study, 2 bath, 1 car, 103 sqm internal, 26 sqm balcony, 129 sqm total, north view = $990,000

The rentals estimates given out at the display say that the rentals estimated for Promenades for two bedroom apartments is $520 to $600 per week, or up to $675 per week if there is a study. This is not a great return for the prices listed above.

Some other figures in the Multiplex brochure:

Capital growth for units in Hamilton in 07/08 was negative 5.9% (for Brisbane City it was 13.5%).
Medium sales price for units in Hamilton in August 07 was $645,000, in March 08 it had dropped to $438,000. In the corresponding period, Brisbane City medium sales price for units had risen by $30,000.

What concerns me about this building is that it is not absolute waterfront, more than half the apartments do not have river views, the quality of finishes on the lower floors are poor (thus attracting cheaper rents and pulling down building values), and the building will eventually be surrounded by other buildings on all sides. Those apartments with river views have obstruction and roof views of other buildings. The price per sqm is high, for example $8727 for a 2 bed on a higher floor. As far as I can tell, this building does not have a pool or gym.

Monday, September 15, 2008

Luxury Apartment Report

From Property Wire
The Luxury Apartment Report released today by Colliers International reveals multimillion-dollar, quality designed units are helping Brisbane’s property market defy a national slowdown in sales. "High end luxury units are outperforming the general market in capital growth," said report author, Colliers International research analyst Alison Timchur.

Queensland's developers and agents report healthy sales to local buyers. "One thing most buyers have in common is that generally they are Brisbane locals, with the occasional Gold Coast buyer," said Ms Timchur.

See also Brisbane Times

West Village

Aria has launched a website for its South Brisbane - West End project, currently in the final stages of council approval.

www.gowestend.com.au

This project will have mostly small one bedroom apartments, priced from $380,000. There will be some two bedroom apartments, priced from $660,000.

The building will be located on Edmondstone Street in South Brisbane.

Soleil - Meriton's New Adelaide Street Highrise


Soleil is taking expressions of interest and they have started advertising.

"At Meriton we never compromise on quality with any of our apartments. You will always get the very best of everything at an affordable price. Meriton the country's only major developer that is 100% Australian owned and managed will be building a 74-level tower situated on Adelaide St within Brisbane's CBD called Soleil.

Soleil will be the most impressive building in Brisbane, with superb, affordable luxury apartments starting from the 31st floor, maximizing the outstanding views at every turn. This development will also include 30 commercial offices, 3 retail shops and 175 serviced apartments.

As with many Meriton developments, Soleil will have access to resort style facilities: an indoor heated lap pool, gymnasium, spa, sauna and theatrette."

As you can see from the image below, it blocks out Skyline completely.

Northshore

The Courier Mail reports (14 September 2008):

"A NEW riverside neighbourhood, 6km from the Brisbane CBD, will house 13,000 residents, feature high-rise buildings, a boat harbour and golf course.

Premier Anna Bligh will today release master plans for the Northshore Hamilton development as part of her Toward Q2, Tomorrow's Queensland vision. Ms Bligh said it would offer "lifestyle options from the affordable to the luxurious". Work will begin at the 304ha site – between Brett's Wharf and the Gateway Bridge – next year.

"This is a vision of how this area can be revived for Queenslanders over the next 20 years and is an example of the sort of development we want to see under my Government's Toward Q2 ambitions," Ms Bligh told The Sunday Mail yesterday. This master plan is a vision of a strong, fair, green, healthy and smart development. It combines potential facilities for super-yachts, with affordable housing, healthy open spaces and green initiatives." ...

"Northshore Hamilton will play an important role in providing housing, in close proximity to the major growth centres, for the company director to the factory floor worker," Ms Bligh said. "Over 7000 new dwellings will accommodate 13,000 new residents."

The Premier said the riverfront would feature luxury homes with moorings for pleasure craft, with at least 15 per cent of other properties classified as "affordable housing".

Buildings would rise from three to 15 storeys, with two "landmark" apartment/office blocks of 20 to 23 levels.

The master plan for Northshore and Bowen Hills can be viewed on the Urban Land Development Authority website at www.ulda.qld.gov.au

Brisbane Students Forced Out of Housing

See recent article in Brisbane Times.

As an aside, a new apartment complex is to open in Indooroopilly in October. Called Riverbend Towers, it has 35 apartments, all of which will be rentals. The majority are three bedroom apartments, with 11 two bed apartments. The apartments are relatively large. Rents range from $500 to $550 per week for a 2 bedroom apartment; $650 to $750 for a three bedroom apartment; and $950 for a penthouse.

El Dorado Village at Indooroopilly

The El Dorado Village project at Indooroopilly has launched its website.

See www.eldoradovillage.com.au The project is to launch in October, and pre-sales have been strong. There are 100 apartments in the complex, mostly 2 bedroom apartments, with some 1 beds and 3 beds. There is a display suite at Park Road in Milton.

The project does not appear to have development approval yet.

Tuesday, September 2, 2008

Buzz Coming Back to Brisbane?

Have a look at this comment:
http://www.realestatedaily.com.au/2008/08/26/the-buzz-is-coming-back-to-the-brisbane-real-estate-market/

Hotel Apartments

Hotel Developer Lands in Red Ink, Despite Boldface Names
... “He got caught in a bad concept — which is the hotel-condo concept,” he says. “That’s a failed concept. With a failed concept, he was swept along. That was a bitter lesson, and he is trying to learn how to deal with all that financial distress.” ...
"... During the real estate boom, condo-hotels were seen as a way for stars, jet-setters and other well-heeled investors to buy apartments that they could rent to others part time. ..."
"... That didn’t solve all his problems. Local real estate agents say Mr. Falor had trouble selling the Nicky O. units because he mispriced them. Peter Zalewski, a Miami Beach broker, said that Mr. Falor had a location with “prime” views, but was asking buyers to pay roughly $2,000 a square foot for a condo-hotel unit they could use only part time, when traditional condos nearby cost about $1,000 a foot. After buyers factored in maintenance, taxes and other fees, it would have been unlikely that rental revenue would have covered the monthly cost of their investment. ..."
See New York Times

Pricing Pressure on Developers

See Residential Developer Magazine regarding how developers are trying to get you to buy without having to cut prices.

Note the reference to a Brisbane developer reducing pricing by more than $1M on an apartment project.