What My Bank Manager Told Me This Week

• Investors are re-entering the Brisbane property market
• There are bargains in Brisbane property
• Rents are good, and increasing
• Interest rates are low, and decreasing
• Investors are getting more than 5% gross returns on recently purchased Brisbane apartments
  

Hamilton Harbour - 4 Buildings Proposed

New website for Hamilton Harbour residential building, called Harbour One. It is behind the Bretts Wharf development, on Kingsford Smith Drive.

"A 19-storey tower and 22-storey tower will house a total of 416 apartments, and the developers have already committed to selling a percentage of residences in the low-to-medium price range.

The budget apartments will be "space-efficient" while other one-bedroom offerings will come without a car space.

"This will enable these units to be offered for sale at a considerably lesser price to those who would otherwise be unable to afford housing in such a well-serviced location," the project plan details."

Brisbane Times

View from the air

Gold Coast vs Brisbane

"The apartment market on the Gold Coast is more problematic because conditions there are still very tight and after Sydney, the Gold Coast is more dependent than any other city on the apartment market," he said. "Investors have been fleeing that market and combined with a decrease in buyer confidence, apartment prices may continue to come down."

Mr Anderson predicts unit prices will stabilise in the first half of 2009 before again beginning to rise.

"We are expecting to see growth again in the apartment market but it won't happen until 2010, it will take longer than the housing market, and probably not as quickly as in Brisbane," he said. "There could be a really strong rebound in that market in the first half of 2010 but it will be coming off a fairly low base."

Source: GoldCoast.com.au website

Amother Apartment Complex near Milton Brewery

"A $19 million highrise near Milton's Fourex brewery has won council approval, but new residents are warned complaints will fall on deaf ears. The development on Railway Terrace consists of a 20-storey unit block and an eight-storey retail and commercial building."

See Courier Mail and Skyscraper Life

Admiralty Towers Two - Blog

Have a look at this Blog: http://atowers2.blogspot.com/

Indooroopilly Riverbend Tower

Riverbend Tower was supposed to be an all rental building. However, it appears that the developer has now decided to sell some of the apartments.

Example pricing:

• 2 bed, 2 bath, 6th floor, 95 sqm internal, 31 sqm balcony, 126 sqm total, 1 carpark = $600,000
• 3 bed, 2 bath, 5th floor, 125 sqm internal, 36 sqm balcont, 161 sqm total, 2 carparks = $735,000

Some apartments will have river views. However, the eastern facing apartments look over the railway station at Indooroopilly (so noise from trains and cars), the southern facing apartments look at the Walter Taylor Bridge, and the western facing apartments will get the western sun.

What is in store for Brisbane Apartments?

"Matusik notes Brisbane respondents are more optimistic than property professionals on the Gold and Sunshine coasts. In turn, Gold Coasters are more bullish about a recovery in 2009 than those on the Sunshine Coast, where about half of the respondents think sales will continue to fall in the new year. Matusik says about 30 per cent of those surveyed think an inner-city pad in Brisbane will be the best residential investment."

The Australian, 22 November 2008

"Paul Braddick, head of property and financial system research at the ANZ Banking Group, says: “There is certainly a problem with sentiment and with construction finance at the moment. But for property investors I would instead focus on rising rents, the lower interest rate environment, the subsequent improvement in affordability and the increase in the first-home buyer’s grants. These all point to a brighter future for residential property, even if the next six to 12 months prove slow.”

I believe a halt in the construction of new apartment towers is a sign that it’s time for the wise investor to start researching the market and getting to know it thoroughly. First-class investment properties are available at a fair price, but there’s only a minuscule chance they will be in multi-level city buildings."

Smart Company, 20 November 2008

"If you want a swimming pool now, buy a unit in Queen Street. If you live in the outer suburbs, houses don't often have room for swimming pools," Professor Hall said.

Courier Mail, 17 November 2008

"Brisbane's CBD recorded 17 new apartment sales during the quarter, from a possible 178 units on the market.

"In terms of rental vacancies for residential apartments, inner-city Brisbane retained the lowest vacancy rate of only 1.4 per cent," Mr Walker said. "This suggests that rental rates will continue to rise as demand for accommodation increases and rental stock supply dwindles."

Brisbane Times, 19 November 2008

M on Mary in liquidation

"M on Mary provides buyers with a golden opportunity to purchase stock at prices which are well below replacement value. Which Property? have been appointed as agents under instruction from Receivers and Managers acting for Willahra Pty Ltd, and as such the balance of properties remaining in M on Mary must be sold."

Brisbane Apartment Videos

Meriton's Soleil

Trilogy

Festival Towers

Charlotte Towers

Please Take Me To Brisbane

Brisbane

Sherwood Parklands

I have previously written about Pradella's development "Parklands at Sherwood" which is high on a hilltop overlooking parks and Oxley Creek, with city views in the distance. See prior comment.

I visited again this week. Apartment Building 1 (AP1, marketed as Jacaranda) is almost complete. The bottom floor is at lockup stage, and the top floor apartments are being tiled. Looks like about 2 to 3 months work until completion. Apartment Building 2 (AP2, marketed as Brookline) now has a roof. The bottom floor has internal walls, the top floor has frames for internal walls. Probably 6 months more work till completion. There are also terrace house and detached houses.

I am very impressed with the apartments. Even the smaller two bedroom apartments seem large. Maybe this is because at least half the apartments have great park views. The design and outlook is good. I am less impressed by the detached houses -- they are in the worst location in the development, and the rooms seem smaller than I would have liked.

There are some resales already listed:

• smaller 2 bedroom, 2 bathroom, study nook, 2 cars, top floor, park & city views - listed at $530,000
• smaller 2 bedroom, 2 bathroom, study nook, 2 cars, top floor, village green views- listed at $520,000
• 3 bedroom townhouse - listed at $798,000

Some of the developer stock in AP1, at the rear of the building, is discounted. For example, a 2 bedroom apartment for sale in the mid $400,000s. There is good buying to be had, and this development will impress when complete.

Gabba Central Apartments Bowled Out

"Gabba Central's 270 luxury apartments, retail space and 300 underground carparks were slow to sell and value plunged as a result of Brisbane's stagnant property market and the global credit crunch."
"The Brisbane property is now in the hands of financiers UCIS, which is responsible for selling the remaining space at Gabba Central for market rate in order to recover the $31 million.

If the sales fail to cover the total debt, PKW is liable to hand over up to $10 million in cash or assets. Potentially this will involve Taranaki land and buildings held by the dairy giant."

Full story is here.

My view was that this was a poor property.

Building Classifications

How will this impact Oaks, and apartment owners who are doing short term rentals in buildings that are not designed for short term rentals:
http://www.dip.qld.gov.au/resources/newsletter/newsflash-327-guideline.pdf

Low Ball Skyline

Skyline is selling new 3 bedroom apartments for $650,000. This is less than some of the two bedroom prices in Skyline. These apartments were recently marketed for $720,000 plus. They are nice city apartments, but will be crowded out by Meriton's Soleil and Macrossan towers.

South Point and Buranda

"ARCHITECT-developer Tony John is willing to bet $1 billion that the run-down suburb of Buranda, in Brisbane's inner south, will be the next New Farm.Mr John has a scheme for a massive residential, retail and commercial project that can only be called immensely ambitious.

He is willing to bet that Brisbane people will be willing to pay about $500,000 for an entry-level one-bedroom apartment measuring less than than 50sq m. Big enough to swing a cat - just. He's willing to bet that they will want to live right next to the truck-laden Logan Rd, over a train line and right next to a busway in a suburb that looks like it has had too much sun and has never been known for urban chic. He's also betting that the housing affordability dilemma will mean people will question if they can afford a home and a car.

But just to show how strongly he feels about Buranda, the man who developed the oh-so-swish Emporium development in Fortitude Valley says he is less confident about his separate plans for 56 luxury apartments at South Bank projected to cost between $2 million and $10 million each. "I would not like to make that call right now," he said...."
See Courier Mail

Skyline Price Decreases

Skyline is selling new 3 bedroom apartments for $650,000. This is less than some of the two bedroom prices in Skyline. These apartments were recently marketed for $720,000 plus. They are nice city apartments, but will be crowded out by Meriton's Soleil and Macrossan towers.

Howard Smith Wharf redevelopment

The Council has issued a plan for urban renewal in the wharf area under the Story Bridge. It looks like an excellent plan, and my guess is that it will increase the value of the apartments in the Admiralty precinct. It is called the Howard Smith Wharves redevelopment.

Details here and here.

Waters Edge on the Edge

A friend forwarded an email to me, recently received from Pradella, that included the following:

"Pradella have adjusted the pricing of some of the apartments in ‘Reach’ at Waters Edge. We have now sold 50 apartments, but we need to keep moving toward our pre sales targets, hence the pricing adjustments. The 1 beds have not been adjusted, but some of the 2 bed plus 1 bath, and 2 bed plus 2 bath have, and there are some very good buys to be had."

My guess is that no construction will commence until there are about 100 pre-sales.

Recovery?

See story in SMH.

Water's Edge at West End Update

A friend forwarded an email to me, recently received from Pradella, that included the following:

"Pradella have adjusted the pricing of some of the apartments in ‘Reach’ at Waters Edge. We have now sold 50 apartments, but we need to keep moving toward our pre sales targets, hence the pricing adjustments. The 1 beds have not been adjusted, but some of the 2 bed plus 1 bath, and 2 bed plus 2 bath have, and there are some very good buys to be had."

My guess is that no construction will commence until there are about 100 pre-sales.

Trilogy or Soleil?

With Empire Square and Vision both gone, it seems that the only two large inner city high rise on the horizon are Trilogy Tower and Meriton's Soleil. Both are similar heights, in a similar location, and are apartments without balconies. Both will have hotel / serviced apartments. Both will complete about the same time. I hear that some people who were initially interested in Trilogy are now interested in Soleil. They are different products. Soleil is cheaper on a price per sqm basis, and probably a different level of quality.

Trilogy (Mirvac managed hotel apartments) (residential apartments not yet on sale so not part of this comparision)

• 16 apartments per floor, over 12 levels. 192 apartments in total
• 3 elevators
• 1 and 2 bedroom configurations
• sold furnished, if one signs up with Mirvac
• 6% rental guarantee
• on sale for more than 3 months
• about 60 to 70 reported as sold
• one bedroom size - 53 to 59 sqm, most without car parking
• two bedroom size - 70 to 89 sqm, with 1 car park

Example pricing for 1 bedroom:
Level 35, East view - $530,000
Level 41, East view - $555,000
Level 41, River view - $570,000
2 bedrooms:
Level 35, river view - $890,000
Level 37, corner apartment, NE river view - $945,000
Level 37, corner apartment, SE river view - $940,000

Soleil - residential apartments

• 5 to 7 apartments per floor. 188 apartments on sale, with others being held by developer
  
• 3 elevators
• 1, 2 and 3 bedroom configurations
• sold unfurnished
• rental guarantee
• on sale for about 10 days
  
• less than 10 sold
  
• one bedroom size - 46 to 62 sqm, without car parking
• two bedroom size - 71 to 83 sqm, with 1 car park

2 bedroom apartments
Level 31, city view over Adelaide Street: $509,000
Level 40, views over All Hallows: $615,000
Level 42, views towards The Valley: $610,000
Level 42: views of River Place, and maybe Storey Bridge: $672,000
Level 47: views over Skyline towards the river: $755,000

No More Vision

"PLANS for Brisbane's tallest tower appear to be crumbling with builders told [Friday] the contract for works on the Vision tower had been suspended. Builder Grocon told workers at the Mary St site yesterday that the main works contract had been suspended by the developer, Austcorp. Last week an Austcorp spokes-man said the $950 million, 287m Vision was a live project and it would be Built. Austcorp head Trevor Chappell was overseas yesterday and un-able to be contacted to confirm the suspension" Source: Courier Mail.

"A company spokesman insisted Vision would be built when market conditions improved, but industry sources have told brisbanetimes.com.au completion is unlikely. One senior development figure said the project's future had been uncertain for some time and claimed there had long been doubt surrounding Austcorp's ability to secure credit.

While the developer continued to tout apartment sales figures up until last month, it is understood several multimillion dollar conditional contracts had collapsed."

in liquidation: M on Mary

"RECEIVERS & MANAGERS APPOINTED IN LIQUIDATION. BRAND NEW APARTMENTS. INVEST TODAY FROM JUST $295,000 IN THE HEART OF BRISBANE, AUSTRALIAS MOST EXCITING AND LIVEABLE CITY. PLUS A RENTAL GUARANTEE OF 6.5% GROSS (avg) MANGEMENTS FEES INCLUDED."

It appears that a Gold Coast company has been appointed to off load what remains for sale in M on Mary serviced (non residential) apartments. This building has 1 bedroom apartments, with some 3 bedroom apartments on higher floors. About 400 apartments in total, with over 100 reported as unsold. A very poor pool area. Most don't have car parks. Small apartments. Avoid!

Which Buildings Have More Owner Residents?

The Brisbane City Council has released a list (in relation to rate increases) that includes the number of owner occupied apartments in Brisbane apartment buildings. The full list is here. My view is that the higher number of owner occupiers in a building, the better the investment in that building.

Community Title Scheme Name	Number of Units	Number of Owner-occupied Units	Percentage Owner Occupied
ADMIRALTY QUAYS	173	59	34%
ADMIRALTY TOWERS	151	49	32%
ADMIRALTY TOWERS II	193	71	37%
ALLEGRO APARTMENTS	117	16	14%
CASINO TOWERS	214	34	16%
CENTREPOINT	51	20	39%
CHARLOTTE TOWERS	415	29	7%
CORONATION RESIDENCES	48	22	46%
CUTTERS LANDING - CUNNINGHAM	33	14	42%
CUTTERS LANDING - FLINDERS	84	53	63%
FELIX	254	48	19%
FESTIVAL TOWERS	401	51	13%
KOKO APARTMENTS	110	36	33%
LEXICON APARTMENTS	89	16	18%
OXYGEN	191	34	18%
PARK AVENUE AT SOUTH BANK	56	32	57%
PARKLAND BOULEVARD	400	168	42%
PRECINCT TOOWONG	46	19	41%
QUAY WEST BRISBANE	136	28	21%
QUEEN STREET 570	127	9	7%
REGATTA APARTMENTS	59	17	29%
RIPARIAN PLAZA APARTMENTS	48	23	48%
RIVER PLACE APARTMENTS	314	76	24%
SKYLINE APARTMENTS	185	37	20%
THE AURORA TOWER	472	128	27%
THE GARDENS	107	23	21%
TRILOGY RESIDENCES	121	8	7%
WILLAHRA TOWER	106	16	15%

Prices Still Increasing

From RP Data's Property Pulse:
"Brisbane
Across the 12 months to August 2008, Brisbane’s median house value has increased by $21,915 although, the level of vendor discounting has also increased by 3.64%. Given this, vendors who sold in August 2008 would be $6,328 better off than if they sold at the same time last year. Brisbane’s median unit value rose by $11,966 across the year to August 2008, meanwhile an increase in the level of vendor discounting of 3.09% has meant that a Brisbane vendor selling at the median unit value would have been $2,410 better off selling this year as opposed to selling at the median value last year"

Vision Suspended

"PLANS for Brisbane's tallest tower appear to be crumbling with builders told yesterday the contract for works on the Vision tower had been suspended. Builder Grocon told workers at the Mary St site yesterday that the main works contract had been suspended by the developer, Austcorp. Last week an Austcorp spokes-man said the $950 million, 287m Vision was a live project and it would be Built. Austcorp head Trevor Chappell was overseas yesterday and un-able to be contacted to confirm the suspension" Source: Courier Mail.

Rates Ripoff in Brisbane

CITY Hall will drag five times the amount of general rates out of Kelvin Grove Urban Village this financial year.
Information released by Brisbane City Council after a question with notice shows some inner city buildings will collectively pour 400 per cent more in general rates in to the city’s coffers than last year, with Kelvin Grove Urban Village facing the biggest rise. The Village’s 213 unit owners paid a total $83,411 in general rates to council in the previous financial year, the information shows. But this will jump to $443,750 for the 2008/09 financial year after changes are introduced in January, designed to increase rates for some of the city’s most expensive inner city apartments. The changes, which take effect in January, will lift the general rate for the average unit owner in the Village from $392 last financial year to about $2100 for this financial year. But just a fraction of those living in the Village are owner-occupiers, meaning all but 23 units are owned by investors.
Other addresses to be hard hit by the new ``parity scheme’’ include the Parkland Boulevard building in Brisbane’s CBD, which will collectively pay 364 per cent more in general rates than last year, increasing the building’s total contribution to $753,000. The building contains 168 owner occupied units and 232 investment units.
Council will collect 300 per cent more in general rates for the year from Riverplace Apartments in Brisbane, where 76 of the building’s 314 units are owner occupied.
Owners of units in Admiralty Towers II in Queen Street will fork out 310 per cent more than last financial year.
Riverscape West unit owners in MacDonald St, Kangaroo Point, face an increase of 150 per cent over last financial year.
The information shows just under 1000 owners of units in 116 inner-city apartment blocks will together boost council’s kitty by $6.3 million this financial year under the changes, representing a 127 per cent overall increase for the addresses.
Central ward Councillor David Hinchliffe (Labor) said the changes would take a toll on residents of Kelvin Grove’s Urban Village, which he said was ``not the most salubrious address.’’ Cr Hinchliffe said the impact on unit owners would be about an 800 per cent increase from one quarter’s rates bill to the next.
But council Finance chairman Adrian Schrinner said the information put to rest once and for all claims people were facing 1000 per cent rises in their rates bills. He reiterated a previous commitment to issue letters to unit owners showing the individual increases they face ahead of the January changes.
See City News

Soleil Tower Sales Launched Today

Meriton's Soleil, its first building in Brisbane, launches this weekend. (Completion of the building is planned for 2011 or 2012.)

It will be 74 levels, and 234 metres high, located at the end of Adelaide Street, behind Skyline and next door to Macrossan (which is under construction).

Floors 31 to 64 contain the apartments that Meriton will sell. Floors 65 to 74, comprising 42 apartments, are not for sale. Floors 30 and below will probably be 175 serviced apartments, owned and managed by Meriton. A total of 188 apartments will go on sale this weekend. They are 1 to 3 bedroom apartments. The 2 and 3 bed apartments have 2 bathrooms, and an underground carpark (up to 10 levels below Adelaide Street level).

On the higher floors (above level 41), there are five apartments per floor. There are 3 elevators for about 220 apartments, which is not a great ratio. (Admiralty Two, just nearby, has 191 apartments and six elevators.)

None of the apartments have balconies. Airconditioned, full length windows, and floor to ceiling tiles in the bathroom. Indoor pool and gym.

Here are some example two bed, two bath apartments:

Apartment 6001, level 60, views south down the Brisbane River over the top of Skyline, 79 sqm and 1 car park. Listed for sale at $823,000, which is about $10,400 a sqm.

Apartment 4205, level 42, limited views between Admiralty Quays and River Place, but good views over All Hallows, 83 sqm and 1 car park. Listed for sale at $672,000, which is just over $8,000 per sqm.

Apartment 5204, level 52, views over Admiralty Quays, 78 sqm and 1 carpark. Listed for sale at $688,000, which is just over $8,800 a sqm.

Compare existing, older stock of 2 and 3 bedroom apartments nearby:

• Admiralty Two, Level 4, direct riverfront, 103 sqm (including balconey), listed at $720,000
• Skyline, Level 27, river views, 102 sqm (including balconey), fully furnished, listed at $720,000
• Admiralty One, Level 18, direct riverfront, 3 bedrooms, 2 carparks, 150 sqm, listed at $880,000.
• Quay West, Level 16, river and park views, 120 sqm, listed at $850,000
• River Place, Level 13, direct riverfront, 116 sqm listed at $675,000 or $675,000

From what I can tell, the current actual sales price for direct riverfront apartments in the city is between $6000 and $7000 a sqm.

Overall, Soleil is in a great location, the floor plans seem to be well designed, and Meriton will deliver. Care should be taken when selecting, as some apartments will not have great views due to neighbouring buildings -- but some apartments should have great views (if you like heights!). The apartments are a little small for my liking, and I am not sure about lack of balconey.

M on Mary - bank takes over?

I heard that the developer of M on Mary has gone into bankruptcy or receivership. There are a number of apartments that remain to be sold. Unfortunately, I have no other details at this time.

Meriton Soleil Pricing

Apartments for Sale

Size	Parking	Priced from	Floorplans
1 Bedroom		$348,000
2 Bedroom	1 Car space	$503,000
2 Bedroom + Study	1 Car space	$587,000
3 Bedroom	1 Car space	$876,000

Prices as at 21 October 2008.

Ray White Sunday Auction Results

See Courier Mail blog

• Felix: 342/26 Felix St, 2 bed, 2 bath, sold for $495,000.
• Festival Towers, 1901/108 Albert St, passed in $450,000
• Festival Towers, 3508/108 Albert St sold prior to auction, reported at $555,000 or $445,000??
  
• Charlotte Towers, 1502/128 Charlotte St, 2 bed 2 bath, passed in on vendor’s bid of $420,000
• River Place River Terrace House: 1/82 Boundary St was passed in at $1.35 million, now listed at $1.5M
• Skyline, 12/30 Macrossan St, three bedroom unit passed in at $900,000, now listed at $1,240,000
  
• Aurora Tower Penthouse: 651 and 656/420 Queen St passed in at $2.4 million, now listed at $2.6M
  
• Soho, 416/8 Cordelia St, 1 bed, South Brisbane was passed in at $280,000
• SoHo, 615/8 Cordelia St was passed in for $465,000, looking for offers above $500,000
  
• SoHo, 108/8 Cordelia St passed in at $505,000
• Euro, 1308-2-6 Manning St, South Brisbane, 2 bed 2 bath, passed in at $400,000
• Trilogy, 336/51 Hope Street, Spring Hill, 2 bed, 2 bath passed in at $540,000, sold after for $550,000 (vendor was off the plan owner who had paid $595,000)
  
• Stradbroke Tower, 74/2 Goodwin St, Kangaroo Point passed in at $875,000
• 1/24 Brisbane Street, St Lucia, sold for $414,000
• 6/211 Baroona Rd Paddington, 2 bed, 1 bath, sold for $431,000
• LeftBank, 64/35 Buchanan St, West End, passed in at $1.15 million

"Hundreds turned out to the convention centre on Sunday to see 80 properties offered for sale as part of the Ray White Property Auction Spectacular. There was a wide range of units and houses was on offer but properties sold under the hammer for prices well below what would have been expected six months ago.
Chief auctioneer Philip Parker said he pleased with the lacklustre clearance rate of almost 30 percent but said those who sold at auction realised they were not going to get what they thought their property was worth before the economic downturn. He said while no-one was happy with the current economic climate, sellers realised if they wanted to move a property they had to meet the market.
``Out of those that sold today, only one buyer didn’t go down on their original (minimum) price,’’ Mr Parker said.
He said the vendors who didn’t budge, didn’t get a sale. Negotiations are continuing on several properties offered for sale." http://blogs.news.com.au/couriermail/publicproperty/index.php

Meriton Soleil to be Released Soon

"Thank you for your email enquiry regarding our brand new 1, 2 and 3 bedroom apartments soon to be on sale. Selling off the plan the development is expected to be completed 2011/2012. We will be selling this development at the end of October or early November at our Display Centre at 488 Queen Street, Brisbane."

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.

Doubtful Vision

"The developer behind the $900 million Vision Tower skyscraper on Mary Street is confident construction will proceed, despite the global credit crisis and economic uncertainty. Austcorp's ambitious 79-storey building will be the tallest in Brisbane when complete and is tipped to become an icon of the city's burgeoning growth. However, doubt has been raised over the likelihood of construction, following last week's collapse of the high-profile Empire Square development on Elizabeth Street that was sparked by the worsening world economic climate.

Industry sources told brisbanetimes.com.au a contingency plan had been devised if finance, which had been arranged but not officially confirmed, was to fall through.

Excavation of the building's basement-level car park is underway, but that could be as far as Vision gets if the credit crisis prohibits Austcorp's financial backing. The developer could sit on the site and operate it as a public car park until things improved, one source said.

However, Austcorp spokesman Terry Lee rejected the suggestion that Vision was in doubt, and said plans remained very much on track. "We have funding commitments (and) we are still working with the banks to finalise that documentation ... it will take time for us to do that," Mr Lee said.

"This is a normal process that all development projects go through."

Mr Lee acknowledged the turmoil in the global market, but would not be drawn on whether it posed a risk to the development.

"I know there are various rumours circulating in the market, there has always been talk about Vision one way or the other," he said. "We are progressing as we planned ... I don't want to be drawn on market speculation."

He would not comment on the possibility Vision would be delayed by the on-going credit crisis.

Austcorp had secured more than $12 million in apartment sales in the last quarter, which meant about 70 per cent of residences were now pre-sold with unconditional contracts. "Total apartment sales amount to $260 million ... Vision will ride out the current market turmoil to become Brisbane's landmark building when delivered in three to four years' time."

See Brisbane Times

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."