Sunday, January 17, 2010
South Bank Student Accommodation
Infinity
Rents and Medium Prices - Comment from Matusik
Are more high rise apartments needed in Brisbane?
Brisbane will need an apartment building boom on the scale of Dubai if it is to accommodate a forecasted growth in population by 2030, the State Opposition claims. However, he estimated as many as 1725 20-storey buildings would need to be built before 2031 in order to cope.
"It is areas like Indooroopilly, Chermside, Mt Gravatt that are designated to do it," he said.
The plan also nominates the Brisbane CBD, Carindale, Toombul, Mitchelton, Wynnum Central and Toowong. Mr Gibson said the difficulty was finding the land in these areas to build thousands more apartments.
"You go through street by street and you identify where you can build 82 new 20-storey building every year for the next 21 years and the land is not there right now," he said.
Vision Brisbane Finally in Administration
Proposed Milton Development on Milton Road
More than 10 years after it was closed down and sold by Tennis Queensland, the Milton Tennis Centre, together with the adjoining Milton Bowls site, has a development application on it to create a new "Emporium" style precinct, with residential, retail and commercial facilities.
The Seymour Group, owned by Queensland business identity Kevin Seymour, put in their application to the Brisbane City Council just before Christmas and although it is "extremely early days", the group are very excited about their plans for this famous parcel of land, according to a company spokesperson.
"The Milton Tennis Centre site is iconic in Brisbane and it has been vacant for so long. We’ve written into the code that we’ve submitted to council that there will certainly be a reference to the original centre somewhere in the new development," the spokesperson said.
Located at Frew Park, Milton Rd was the home of Queensland tennis from 1915. It consisted of 19 hard courts and four grass courts and hosted eight Australian Opens and 16 Davis Cup ties (including three finals). It hosted its last Davis Cup tie in 1990, the quarterfinal win over New Zealand featuring John Fitzgerald and Wally Masur.
Lindsay Davenport won the last world tour event at Milton in 1994, after which the wooden grandstands were declared unsafe. The Milton Tennis Centre closed in 1999 when Tennis Queensland sold the property to cover more than $1 million in debts. Doncaster Holdings sold the site to Multiplex for a reported $5.9 million in April 2002. Derelict and having suffered two fires, the stadium was demolished in May 2002. It has sat deserted and derelict since then.
It is understood the Seymour Group paid a total of $30.15 million for the tennis and the bowls sites in 2008. It currently has approval for 174 residential apartments but the Seymour Group wants to create a whole new precinct for both plots of the land, which total about 3.2 hectares.
"We’re thinking it would be a modern version of the Emporium in the Valley," the spokeswoman said.
Monday, January 11, 2010
Brisbane Apartment - medium price increases
Saturday, January 9, 2010
Devine
The Courier Mail has recently published two stories relating to David Devine, founder and major shareholder of Devine Ltd. One story showed Mr Devine living in a penthouse in Kangaroo Point (not built by Devine). The story in today's paper was not flattering.
Two days ago, there was a story titled "Devine sues former employee over espionage claims" which started "Devine Industries Pty Ltd is suing the former personal assistant of founding..." Links on other websites include the summary: "TWO of Queensland's biggest construction firms are in a legal battle involving claims of commercial espionage, fraud and embezzlement of more than $500,000."
The Courier Mail has removed this story from its website and did not include today's story on its website. I wonder why?
The link to the story that has been taken down is:http://www.news.com.au/couriermail/story/0,23739,26553326-952,00.html
"Devine Ltd said is not a party to a case before the Supreme Court being reported in the media, but rather Devine Industries Pty Ltd, a privately-owned entity by David Devine.
The company was responding to the media articles published in The Courier Mail and The Herald Sun." See Business Spectator.
Here is a link to the Court file.
Property Directories
Real Estate agents
Worldwide real estate companies directory and property buyers and sellers guide.
Friday, January 8, 2010
Google Search - Shows Less Interest in Real Estate
Real Estate Marketing Technology
New Development on Ann Street
Charlotte Towers For Sale
Wednesday, January 6, 2010
Misleading Market Commentary
Friday, January 1, 2010
Alderley Square
PCN Projects, who are the developers of the proposed El Dorado Village at Indooroopilly, have launched a website for a new project at Alderley, called Alderley Square. There are little details about the project on the website.
Review of My Predictions
I made predictions at the beginning of 2008 and 2009. Both times, my predictions were mostly wrong! I guess I should stop making predictions about real estate.
Sunday, December 27, 2009
Charlotte Towers Sales in 2009
Charlotte Towers, at 128 Charlotte Street, Brisbane has had over 40 sales in 2009, which is almost one a week. Most of the owners are investors who do not live in the building. The building has one and two bedroom apartments. Some do not have carparks.
- Lot 502, sold in June for $522,500
- Lot 603, sold in May for $410,000
- Lot 604, sold in April for $317,000
- Lot 701, sold in March for $345,000
- Lot 704, sold in March for $305,000
- Lot 807, sold in September for $450,000
- Lot 1005, sold in March for $295,000
- Lot 1107, sold in March for $450,000
- Lot 1202, sold in June for $480,000
- Lot 1203, sold in April for $437,000
- Lot 1502, sold in May for $480,000
- Lot 1503, sold in June for $445,000
- Lot 1508, sold in July for $473,000
- Lot 1510, sold in March for $325,000
- Lot 1609, sold in October for $358,000
- Lot 1703, sold in February for $450,000
- Lot 1706, sold in February for $325,000
- Lot 2006, sold in October for $328,000
- Lot 2101, sold in October for $420,000
- Lot 2107, sold in September for $495,000
- Lot 2210, sold in January for $312,000
- Lot 2302, sold in March for $468,000
- Lot 2307, sold in May for $490,000
- Lot 2308, sold in February for $485,000
- Lot 2310, sold in July for $346,000
- Lot 2408, sold in April for $495,000
- Lot 2501, sold in June for $418,000
- Lot 2604, sold in July for $348,000
- Lot 2608, sold in August for $492,500
- Lot 2708, sold in May for $490,000
- Lot 3007, sold in February for $485,000
- Lot 3302, sold in August for $320,000
- Lot 3310, sold in February for $358,000
- Lot 3401, sold in July for $355,000
- Lot 3412, sold in May for $360,000
- Lot 3811, sold in September for $347,000
- Lot 4110, sold in April for $433,000
- Lot 4112, sold in August for $463,000
- Lot 4209, sold in April for $425,000
- Lot 4308, sold in February for $717,000
Saturday, December 26, 2009
Skyline sales in 2009
Skyline, at 30 Macrossan Street, has had 16 sales in 2009, mostly from the developer clearing unsold stock of 3 bedroom apartments. Most of the owners are investors who do not live in the building. At least 2 investors lost money when reselling this year.
- Lot 12, 3 bedroom 2 level "townhouse" with outdoor area - sold in October for $950,000 (previous owners reportedly paid $1,240,000)
- Lot 82 - 2 bed, 87 sqm internal, 15 sqm balcony - sold in January for $645,000
- Lot 95 - 1 bed, 50 sqm internal, 11 sqm balcony - sold in February for $335,000
- Lot 134 - 3 bed, 2 bath - 101 sqm internal, 19 sqm balcony - sold in June for $694,000
- Lot 211 - 3 bed, 2 bath - sold in February by developer for $720,000
- Lot 221 - 3 bed, 2 bath - sold in February by developer for $776,000
- Lot 231 - 3 bed, 2 bath - sold in February by developer for $725,000
- Lot 254 - 3 bed, 2 bath - 101 sqm internal, 19 sqm balcony - sold in March for $782,000
- Lot 271 - 3 bed, 2 bath - sold in February by developer for $750,000
- Lot 281 - 3 bed, 2 bath, 114 sqm internal with 22 sqm balcony - sold in March by developer for $755,000
- Lot 291 - same as above - sold in March by developer for $795,000
- Lot 391 - 3 bed, 2 bath, total size 142 sqm - sold in October for $875,000 (previous owner paid $910,000)
- Lot 441 - 3 bed plus study, 225 sqm internal plus 16 sqm balcony - sold in August by company related to developer for $1,800,000
- Lot 442 - sold in August by developer for $1,800,000
- Lot 451 - same as 441 - sold in August by developer for $1,800,000
- Lot 452 - sold in September by developer for $1,750,000
Matusik Turns Bear!
RELIEVED property sector experts are optimistic about future growth for the industry after residential values seem to have dodged a bullet in the fallout of the global financial crisis.
Experts across the country are predicting capital increases of about 5 per cent. Some are warning of problems associated with an undersupply of property.
But Brisbane-based property researcher Michael Matusik has gone against popular opinion to suggest that developers should be cautious. "I have been banging on about an undersupply for close to 10 years, but circumstances have changed in the past six months to suggest that maybe we are, firstly, already building enough dwellings to cater for demand, and that we might even be heading for an overbuild if current trends continue," Mr Matusik said.
He said increased foreign migration hadn't resulted in as big as demand as expected due in part to large household arrangements.
RPData researcher Cameron Kusher is more bullish than many commentators and predicts 7 to 8 per cent growth in Brisbane next year. He cited availability of finance as the wildcard that could affect how many investors get into the market. He predicted many would look at older stock that needed renovating.
Source: Courier Mail
Midwood Report
UNIT sales are leading an improvement in turnover within Brisbane's property market, with 260 deals in the three months ending November.
It compares with 174 the previous quarter. The sales show Brisbane's unit market is becoming balanced with only 13 months' supply, according to the latest Midwood Investment Report.
Report author Bill Morris said that with approvals already in place for shelved development sites, there was the opportunity to quickly reintroduce them to the market. The unit resurgence follows some improvement in the more prestige end of the housing market, which had been lacklustre for more than a year.
A leading Queensland property expert says there is an oversupply of apartments for sale on the Sunshine Coast.
The author of the Midwood Queensland Investment Report, Bill Morris, says only 71 apartments were sold in the latest November quarter. He says the Sunshine Coast has many more apartments ready and waiting for sale than Brisbane and the Gold Coast.
"The current figures show there's about three years of supply sitting there in new apartments at the current take-up rate or demand," he said. "The Gold Coast has got around 18 months supply and Brisbane's even less. Brisbane's about 13 months supply. So Sunshine Coast has a lot more apartments for sale in terms of take-up or sales."
Projects are falling by the wayside as developers struggle to obtain finance, Bill Morris said, and this is contributing to the housing supply demand deficit.
Friday, December 25, 2009
Annual Rate of Return for Apartments in Downtown Brisbane
I think that it is more useful to track the gains on resale of the same property over time. I have looked at three quality apartment buildings in Brisbane, namely Admiralty Towers, Admiralty Two and Quay West on Alice Street to see what capital gains owners have made. I have looked at all apartments that have been reported as sold this year (2009), and then looked back to see what the owner paid when first purchasing the apartment. In all but one case, the resale was the third or more resale of the same apartment. I have then calculated the Annual Rate of Return, using this calculator. The Rate of Return only looks at capital gains, and does not take into account rent received, expenses paid or transaction costs such as stamp duty or agents fees. Here are the results (with P-Price being the original purchase price on the P-Date; and Sell Price being what that owner received when reselling this year):
Lot | P-Price | P-Date | Sell Price | Sell Date | A RoR |
Admiralty Towers One | |||||
5 | $282,500 | 2/08/01 | $520,000 | 25/09/09 | 7.77% |
73 | $490,000 | 19/10/06 | $600,000 | 30/06/09 | 7.79% |
76 | $498,000 | 15/05/03 | $685,000 | 31/08/09 | 5.19% |
92 | $510,000 | 21/03/07 | $545,000 | 7/08/09 | 2.83% |
119 | $810,000 | 1/02/06 | $1,200,000 | 19/03/09 | 13.36% |
Quay West | |||||
23 | $230,000 | 6/12/02 | $420,000 | 8/07/09 | 9.57% |
24 | $435,000 | 16/05/08 | $450,000 | 18/04/09 | 3.74% |
49 | $256,000 | 4/11/95 | $425,000 | 25/09/09 | 3.71% |
55 | $310,000 | 10/05/04 | $440,000 | 25/02/09 | 7.58% |
68 | $585,000 | 4/03/05 | $675,000 | 11/10/09 | 3.15% |
99 | $400,000 | 13/08/96 | $700,000 | 25/09/09 | 4.35% |
120 | $275,000 | 28/04/97 | $460,000 | 2/09/09 | 4.25% |
Admiralty Two | |||||
20 | $445,000 | 13/09/04 | $725,000 | 11/05/09 | 11.03% |
47 | $700,000 | 29/08/05 | $945,000 | 1/09/09 | 7.77% |
81 | $720,000 | 23/11/07 | $725,000 | 27/03/09 | 0.51% |
94 | $615,000 | 19/12/06 | $730,000 | 7/05/09 | 7.45% |
97 | $340,000 | 20/02/98 | $780,000 | 12/06/09 | 7.61% |
106 | $490,000 | 15/11/04 | $750,000 | 24/06/09 | 9.67% |
107 | $485,000 | 1/02/02 | $990,000 | 15/08/09 | 9.92% |
124 | $615,000 | 13/04/07 | $750,000 | 19/10/09 | 8.20% |
137 | $432,000 | 22/03/97 | $815,000 | 15/07/09 | 5.28% |
Annual Rate of Return for Brisbane Apartments
Often, there are statistics that are published that set out the change in the medium house or apartment price. These statistics are often not helpful. For example, if in one quarter there are many low end properties that are sold, and in the next quarter, there are many top end properties sold, the medium price will increase. Similarly, if there are new apartments entering the marketplace, this will most often result in an increase in the medium price for the area. However, in both these cases, you cannot say that values have increased.
Lot | P-Price | P-Date | Sell Price | Sell Date | ARoR |
AD1 | |||||
5 | 282500 | 2001 | 520000 | 25/09/09 | 7.77% |
73 | 490000 | 2006 | 600000 | 30/06/09 | 7.79% |
76 | 498000 | 2003 | 685000 | 31/08/09 | 5.19% |
92 | 510000 | 2007 | 545000 | 7/08/09 | 2.83% |
119 | 810000 | 2006 | 1200000 | 19/03/09 | 13.36% |
QW | |||||
23 | 230000 | 2002 | 420000 | 8/07/09 | 9.57% |
24 | 435000 | 2008 | 450000 | 18/04/09 | 3.74% |
49 | 256000 | 1995 | 425000 | 25/09/09 | 3.71% |
55 | 310000 | 2004 | 440000 | 25/02/09 | 7.58% |
68 | 585000 | 2005 | 675000 | 11/10/09 | 3.15% |
99 | 400000 | 1996 | 700000 | 25/09/09 | 4.35% |
120 | 275000 | 1997 | 460000 | 2/09/09 | 4.25% |
AD2 | |||||
20 | 445000 | 2004 | 725000 | 11/05/09 | 11.03% |
47 | 700000 | 2005 | 945000 | 1/09/09 | 7.77% |
81 | 720000 | 2007 | 725000 | 27/03/09 | 0.51% |
94 | 615000 | 2006 | 730000 | 7/05/09 | 7.45% |
97 | 340000 | 1998 | 780000 | 12/06/09 | 7.61% |
106 | 490000 | 2004 | 750000 | 24/06/09 | 9.67% |
107 | 485000 | 2002 | 990000 | 15/08/09 | 9.92% |
124 | 615000 | 2007 | 750000 | 19/10/09 | 8.20% |
137 | 432000 | 1997 | 815000 | 15/07/09 | 5.28% |