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.This Blog is designed to provide information about buying or renting apartments in Brisbane, Australia. www.brisbane-apartment.com
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.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
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.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
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."
``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."
"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 Australian"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"
"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.
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.
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."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
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.
"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 Times"Depending where you live, property values in your state would have grown a few percent or dropped a few percent overall. Of course we all know that the value of certain properties fell much, much more than that, some by more than 20%. And some segments of the market, in particular the higher priced properties, holiday properties and rural properties, markedly dropped in value. "
See Property Update for full report.
"BRISBANE: Unit prices in an an exclusive city residential tower continue to soar in the face of economic crisis, and cashed-up investors are lining up for a piece of the action.
The Riparian Plaza in Eagle St houses three of the inner-city’s most expensive residential properties sold last year, and their values were up 27 per cent compared to similar properties sold at the same time in 2007."
See City NewsMirvac's Tennyson Reach project sold extremely well to start, but sales appear to have stalled. There are six apartment buildings planned for the site, at Tennyson in Brisbane on the same site as the Queensland Tennis Centre. Although more than 65,000 tennis spectators attended the recent tournament last week, no apartments were sold during the event.
The first two apartment buildings on the site, containing 115 apartments released in June 2007, sold out in three days. Prices ranged from $943,000 to $4.9M. These two buildings should be read for occupancy in the next 5 months.
The third building, currently for sale off the plan, has 92 apartments. Released in December 2007, 70 apartments still remain for sale. Originally marketed with a minimum price of $805,000, the minimum advertised price has now been reduced to $698,000.
According to the AFR, Mirvac plans to release building 4 at the end of 2009.
There are more than 10 resales listed on RealEstate.com.au. These include:
My guess is that these prices will drop, as a number of owners will not want to or can't settle, and rents for these apartments will be luck to be more than $800 a week.