Time to Invest?

"One thing is for sure, the worst of the credit crunch is behind us now and this environment is very favourable to property investment. This will provide the ballast that keeps housing markets stable through these turbulent waters."
REA

Some Owners Unable to Pay Strata Levies

"A call by debt collection agencies for reforms to the cost-recovery process for bodies corporate comes as apartment owners at a Brisbane building are locked in a legal fight with a resident, who had racked up a debt of more than $50,000 since 2004."

"In the Brisbane case, one of the owners in the 51-unit 1970s building on Leichhardt Street said that since 2004, the problem owner had not paid his strata fees or levies on time.

In two previous actions against him, one of the building's apartment owners, who did not want to be named for fear of retribution, said the problem owner ended up paying, with $20,000 of the $50,000 owed comprising legal fees.

"We have had two actions against him previously where he has paid on the steps of the court," they said.

"Because he is an ongoing serial pest, we should have some entitlement to say you are no longer entitled to be here."

The Australian

Gold Coast Bad - Midwood

On the Gold Coast, there were 79 new unit sales in the three months to May 2009, compared with just 49 the previous quarter. But it is a long way from the boom times of 2007 when 369 new units sold in the August quarter. The latest Midwood Queensland Investment Report says at current take-up rates there is more than four years' supply of new unit stock. In the past three months, nearly half of the new unit sales were in Meriton's Brighton on Broadwater project.

Midwood report author Bill Morris said most of these deals were in the sub $500,000 range, where the market was fairly steady.

Median price data from the Real Estate Institute of Queensland released yesterday reveals no change in the median price for units in the Gold Coast local government area.

The median of $345,000 for the March quarter is 3.4 per cent down on the previous year.

Real Estate Institute of Queensland chief executive officer Peter McGrath said price discounting had helped bring buyers back into the market at the upper end. "We've seen some receiver sales where people who bought a unit off the plan for $2.5 million, being sold for $1.6-$1.7 million," Mr McGrath said.

"Units that had previously been selling for $900,000 were getting $750,000."

In Brisbane, the unit market also is showing signs of improvement despite the median price for the Brisbane statistical division dropping 1.4 per cent over the quarter to $345,000. Over the year, the median has increased by 2.6 per cent.

There were 28 unconditional new apartment sales in Brisbane during the May 2009 quarter, the highest number since February last year. For the past 18 months, new unit sales have averaged 13 every three months.

The median price for all unit deals in Brisbane city has fallen 4.3 per cent to $440,000 in the three months to March 2009. Over the previous 12 months the median increased 1 per cent to $450,000.

The Australian and GC

Housing Prices Hold Up

"Of course it's not good news at the top of the market, but despite all the attention given to Mosman, Toorak, Peppermint Grove and Noosa, that's only a small fraction of total Australian housing and doesn't matter very much in the overall economic scheme of things."

The Age

Maintenance Fees

Interesting comment from another blog:

"I must admit I had no idea what I was doing when I bought my first apartment; Low fees meant I liked the building, without knowing anything financially about the building, I have since researched the other buildings I was also interested in, and to be honest I was just plain LUCKY I bought in the building I did, only after joining the committee did I realize we actually have a huge surplus as well as low fees ( that have actually gone down further since I bought)
I also think it's a huge mistakes for people who purchase an apartment or unit with a strata title, but fail to join the committee or even attend the AGM, Its probably their biggest investment they will ever make, but they don't care how, or who is running it."

Domain Blog

Union at Milton

Union at Milton has updated its website -- FKP has cleared the site, and is waiting development approval.

Off The Plan Contracts

This week, the Queensland Fair Trading Minister Peter Lawlor announced that the Government would be legislating in response to the Court of Appeal decision of Bossichix Pty Ltd v Martinek Holdings Pty Ltd [2009] QCA 154 handed down on June 5.

The Minister said:

"The Supreme Court last Friday dismissed an appeal where, in the first instance, the buyer of a unit in a community titles scheme was held to have validly terminated the contract based on a technical breach of the Body Corporate and Community Management Act 1997. The technical breach related to section 212 of the Act and the court held that the contract did not strictly comply with the wording required to be used by the section.

The decision means that buyers can now potentially avoid a contract purely on a technical breach of the Act, even if they haven't experienced any material detriment. This puts hundreds and potentially thousands of off-the-plan contracts at risk. It is a potentially serious situation for the development sector and the wider Queensland economy.

The issue is that this legal precedent could be used, for example, where a buyer simply regrets entering into a contract, or if the buyer could have purchased a unit or property at a lower price. This was never the intention of the legislation and creates great uncertainty for sellers and developers, particularly in relation to off-the-plan sales where there is a long period of time between execution of the contract and settlement. We cannot afford this uncertainty in today's economic climate.

At the same time, the Government is not looking to in any way water down the legitimate consumer protections encompassed in the Act - rather to correct a technical failure of the contracts to fully reflect the requirements of the legislation. All of the normal protections of the legislation will be preserved.

The Government will be introducing legislation next week to address this situation and ensure that both buyer and seller are returned to the situation they believed to be the case - and agreed to - at the time of the signing of the contract."

Lawyer's comment

Fire at Grosvenor

There was a fire at the Grosvenor Apartment building on Edward Street, Brisbane, this evening. The fire was on the balcony of a lower apartment. It was not a major fire, but was big enough so that flames could be seen from the street, and there was lots of smoke. About 5 fire engines attended.

Comment from a Reader re Oaks and Aurora

A reader kindly sent me this note, in response to a prior posting:

I am concerned about trends in the industry, whereby the Oaks are flouting the law by operating a hotel in a Classification 2 building. The Oaks has more money than any Owner’s Corporation, and they know as long as Brisbane City Council and the State Government of Queensland turn a blind eye to them, they can out spend any Body Corporate in our legal system.

I went to a recent auction run by LJ Hooker in Aurora, and the agent was late because he could not get up and down the lift (the Oaks closes two of their five lifts down between 10:00 am and 2:00 pm). When we finally got into the building, there were hotel guests unpacking and repacking their bags in the lobby. The lifts were crowded with students, overnight stays ....

It is no surprise to me that the auction of a $1.1 Million plus unit did not attract any bids. The vendor made a bid of $725,000, and about 12 people stood around, hands in pockets. After the auctioneer consulted with the owner and got instruction, the vendor’s bid was lifted to $770,000 and again no bids. I don’t know if this property ever sold. It was passed in on the day.

The presence of any hotel group, in my opinion devalues the units and lowers the general feel and look of a residential building and diminishes the lifestyle of resident owners. Other factors to consider are:

Don’t Owners get Higher Rents for Hotel Guests/Short Term?

Your committee and the Manager might try to tell investors that they will earn more money. Yes, their rents might be a bit higher, but that is only part of the story. With higher rents, come higher risks, such as risk of vacancy, more tenant churn, more wear and tear on common property and much higher Management Fees.

Management Fees are Higher

The Oaks tend to return to investors about 48% to 50% of the total rent collected, when the high management fees, charge-on costs and miscellaneous costs are all taken into account. I believe this to be in line with any other hotel group’s figures. Perhaps someone from the Oaks could confirm these figures.

Rental Pools – How do they work?
As an investor in a ‘hotel’, your unit is most likely going to go in a ‘rental pool’. It is impossible to tell how often your unit is let out, as the agreement entitles you only to a portion of the total pooled funds. That means that if your unit is a superior one, and is let fully, you will be subsidizing other units which may be inferior and not let out fully.

Hidden Costs?

There are lots of hidden costs to any investor from their hotel manager. One horror story involves an owner who double checked his statements, and each month they would be buying ashtray, glasses, microwave, mattress protector, etc. The Managers did not need to give any proof that the item was damaged or broken, they simply went ahead and bought these items, added a hefty commission and merrily went about spending the owners’ money, despite instruction from the owner that she would replace any items in the unit herself. Another horror story involves a man who went straight to the manager’s desk and asked if there were any vacancies. Yes, the manager said, just go to that phone over there and ring this number. The unassuming man went over and used the phone, the manager answered and earned 30% commission (out of the owner’s pocket) for the exercise. There are more stories where these come from. This is just scratching the surface.

Fire Regulations?

As indicated already, regulations appear to mean nothing to the Oaks. They run a hotel in Aurora, which is a Classification 2 Building, with inferior fire safety protection for the occupants.

How do Hotel Groups and bad Managers devalue units?

There are many drawbacks to a hotel group taking control of a residential building. Investors need to be aware that although it may seem that rents increase, their net income will drop. Aurora has shown us that units will be significantly devalued by the presence of the Oaks, or any other hotel group. Colin Archer was recently quoted at the Unit Owner’s Conference as saying that “if owners want to buy into a hotel, they should buy a hotel. If they don’t wish to live in a hotel, don’t buy in a residential building managed by any hotel group”, because he well knows the massive and negative impact a hotel operation has on the permanent, resident owners. One owner stood up and asked Colin Archer what owners in Aurora could do to protect themselves, because the Management Rights were sold to a Hotel Group to the detriment of owners. He started squirming in his seat. He is a director of the Oaks, and he was sitting on the panel with Michael Teys who sold him the Management Rights. They seemed to think it was quite a funny joke. After some good natured squirming, Colin Archer said that owners need to ensure a bylaw is in place with a three month limit on leases. To his credit (I think he wants to retain his right to practice law), Michael Teys stood up and corrected Colin Archer. He told the crowd that such a bylaw would offer absolutely no protection to owners.

Take also into account that backpackers, suitcases and crowds in the lobby negatively impact on any residential home. In Aurora, I believe that two of the five lifts are closed off to residents because of the cleaners activity between 10:00 am and 2:00 pm. Cleaners block not only the lifts, but the corridors of all of those unfortunate souls who live on the ‘hotel’ level. There is more wear and tear on common property, and the end result is that all owners pay a price – investors pay the financial price and resident owners pay the price of a diminished lifestyle.

Is there any upside to a Hotel?

No, not that I can see. Hotel Management Rights are there for the sole benefit of the managers, and to the detriment of both investor owners and resident owners. If someone can convince me that the Oaks have increased the value of the units in Aurora, or enhanced the lifestyle of all occupants, I will happily listen. Until I hear a good case for owners, I won’t be changing my mind anytime soon.

Mirvac Sues Many

Mirvac Queensland has recently launched a number of lawsuits in the Supreme Court of Queensland. These lawsuits appear to seek performance of off-the-plan contracts for Tennyson Reach, where the buyer did not settle. Buyers that have been sued include McGann, MG Taylor Nominees, O'Hagan, De Pasquale, Holland, Crooks, Douyere, Thompson, Ibencastle Pty Ltd, Beioley, Campbell, Horne, and others. It would appear that Mirvac believes that the apartments that swiftly sold a few years ago off the plan are now worth less than the contract price? In the third stage of Tennyson Reach, about 70 apartments remain for sale in the Farringford Building. There are at least 12 apartments in stages one and two listed for resale. When I visited recently, the development seemed like a ghost town.

Oaks Sells Out - To Brother!

Oaks has sold the management rights for 212 Margaret Street and Lexicon Apartments. The sale was to a newly created company partly owned by the brother of the CEO. I feel sorry for owners of any apartments that Oaks manages. You can read reports in previous posts about how Oaks is turning apartment buildings into short term stay buildings. I feel even more sorry for the owners that are now dealing with this new entity.
At the recent Oaks AGM, there were reports that angry Aurora owners questioned the CEO of Oaks, and that he could not provide sensible answers.
See ASX Release and follow-up.

Apartment House

Bovis Lend Lease, an Australian company, is building a wonderful apartment building in New York City - 535 West End Avenue.

Some floors are full floor apartments, and on other floors there are two apartments per floor. One of the smaller apartments is 5 bedrooms, 5 bathrooms and is 408 square metres in size.

Why don't we get this quality apartment house in Brisbane?

Suburbs With Greatest Number of Apartments List for Sale

See this chart for apartments with greatest number listed for sale. Chart is from RP Data's Property Pulse.

RP Data - Rismark Index

"The falls in Brisbane property values witnessed during 2008 appear to be a thing of the past. On an annual basis dwelling values in Brisbane are still down by -3 per cent during the year with house values falling -2.9 per cent and unit values declining by -3.4 per cent. Over the first four months of 2009 Brisbane has begun to once again show positive growth. During the first four months of the year house values climbed 1.9 per cent whilst unit values fell by -0.2 per cent despite the fact Brisbane is home to mainland Australia's most affordable unit market. Rental returns for houses have softened slightly and currently sit at 4.6 per cent whilst unit rental yields continue to improve and are now recorded at 5.4 per cent."

Home values continue to recover, recording a healthy 2.8% increase over the first four months of 2009

The RP Data/Rismark Australian Home Value Index out today confirmed that housing values around Australia rose by a healthy 2.8 per cent over the first four months to April 09—virtually wiping out the price falls seen in 2008 according to RP Data National Research Director Tim Lawless.*

Unlike the Australian Bureau of Statistics House Price Index, which excludes terraces, semi-detached homes, and apartments, the RP Data/Rismark International hedonic methodology, which is reported by the Reserve Bank of Australia, includes all dwellings. In addition, RP Data benefits from the largest sample of early property sales and property attributes (such as number of bedrooms, bathrooms and land area) of any index provider in Australia.

Over the first four months to April 09, every mainland capital city apart from Perth recorded an increase in home values with the most significant gains in Darwin (+5.3 per cent), Melbourne (+4.4 per cent), and Sydney (+3.9 per cent).

According to Rismark International Managing Director Christopher Joye, “Our analysis demonstrates that home values are rising in around 80 per cent of all suburbs with only the top 20 per cent of suburbs ranked by price suffering material falls.”

The return to capital growth comes as weekly rental rates start to level. Mr Lawless said, “Rental rates across Australia have powered ahead over the last three years, providing the best gross rental yields investors have seen for a long time. We are now seeing growth rates for weekly rents start to level due to decreasing rental affordability which is causing many renters to consider buying a home instead of renting. Gross rental yields are likely to peak over the coming months suggesting that now is probably the best time for investors to roll up their sleeves and become active,” he said. In terms of housing stock, units are continuing to outperform houses where over the first four months of 2009 values increased by 3.3 per cent while house values increased by 2.7 per cent. In closing Mr Lawless said “The stronger performance of the unit market is due to a number of factors. Comparing median house and unit values nationally, the price gap between is just over $90,000, so the value proposition of a unit is very compelling. Additionally, units are generally located closer to the city and along transport spines which is very appealing to many Gen Y and Gen X buyers,” he said.

See www.rpdata.com/news/rp/20090529_media.html
and Tables

Market Commentary for Brisbane

"Property prices in the sub-$520,000 market are continuing to attract high levels of interest from first homebuyers keen to secure their expanded First Home Owner Grant, according to Meighan Hetherington from Property Pursuit.

She says any slowdown in activity in this price range as the First Home Owner Boost phases out should be replaced by the return of investors.

“Rental vacancy rates remain under 1.7 per cent in many metropolitan suburbs and gross rental yields on recent purchases have lifted to 4.5 per cent in some locations for freehold houses and above 5 per cent for units and townhouses,” Hetherington says.

“Good buying opportunities also still exist in the $1 million plus price range as purchasers are still hanging back and waiting for others to lead the way.”

See API Magazine

Riparian Plaza For Sale

There are four apartments for sale on the one floor in Riparian -- for about $15 million total. Thus, you can buy the whole floor, and have 12 bedrooms and 14 carparks!

Brisbane Rates

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

See Brisbane Times

See court judgment

Admiralty Quays - 1 bedroom apartment

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

Residex Prediction

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

Muddled Market

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

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

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

Source: The Australian

Letter from Vision

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

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

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

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

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

Light Rail for Brisbane

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

SMH

Colliers March 09 Apartment Report

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

Source: Colliers International Brisbane Apartment Report March Qtr 2009

Too Many Small Apartments?

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

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

Source: NPR May 09 Newsletter

Dark Vision

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

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

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

Brisbane Times

See also The Australian

Real Estate Investment Books

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

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

Visit the Real Estate Book Store

Mirvac's Tennyson Reach

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

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

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

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

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

Brisbane Vacancy Rate

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

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

See also story in Courier Mail

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

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

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

APH Liquidation Sale

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

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

Source: GC

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

I will avoid this development and location!

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

New Vigour in Property

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

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

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

Matusik comment

Matusik comment

29 April 2009

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

HTW Month in Review

Month in Review

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

Prices Bounce Back

See RP Data Index and Full Report

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

Coolum

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

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

Miami Beach Luxury Apartments Doing OK

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

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

See NY Times.