Admiralty Precinct

Colin Walsh from Ray White CBD Residential is mailing out an interesting report of sales in the Admiralty precinct. He calls it his 2010 mid year report.

Summary of report:

Skyline - 10 sales, including Type J two bed average price at $570,000 and Type K three bed at $780,000

Riverplace - average price for Type B two bed reported at $720,000

Admiralty Quays - 3 sales: 1 bed at $590,000; 2 bed at $800,000; 3 bed at $1M.

Admiralty Towers One - 3 sales: including 1 bed at $575,000 and 2 bed at $750,000

Admiralty Towers Two - 7 sales: including 2 bed Type B for $850,000 and three bed Type F for $1,063,800.

Compared with 2009 average prices for comparable apartments, Admiralty One and Admiralty Two are the only buildings where the average price has increased across all apartment types in the first half of 2010.

Tips for Apartment Investors

Domain had a good story with tips for apartment investors.

See full story.

Extract:

"Many people invest in apartments because they often have a cheaper buy-in price than houses and are also thought to be a lot easier to maintain without gardens to worry about, and with the costs of building maintenance shared across other owners.

But what makes a good investment unit?

Location, location

You can't get past the fact you need to look for an apartment in a good spot. In the city, walking distance to public transport and shops is a must. Nearby schools can be handy but many renters are single or young, childless couples, so a school nearby is probably going to be third on the list after a train or tram station or a very reliable bus route that is here to stay, and shops, cafés and other services. Buyers agents say you should look for a quiet side street rather than a busy main road.

Many renters are professionals who want to get into the city fast. For that reason, apartments closer to town are recommended over those on the outskirts by many buyers agents who argue they will attract higher capital growth. The downside is they often cost more to buy than units further out.

An apartment in an area where there's high development and plenty of other similar flats around would probably grow in value more slowly than an older unit in a pre-1980s building. That's because at sale time there could be stacks of similar new flats on the market but a well-built, well-located older unit will be a scarcer find."

Evolution Video

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Infinity Release in September

Infinity near Roma Street to be released in September 2010.

Mirvac's Hamilton Project

Listed real estate group Mirvac is set to continue its successful track record of quality residential development on Brisbane in-fill sites after the purchase of a prime 7,637-square-metre former Department of Primary Industry site at Hamilton.

Previous projects by Mirvac on classic in-fill sites in Brisbane include The Arbour On Grey (at South Bank), Quay West, Grosvenor, Waterline Bulimba, Park Hill Village, Mariner’s Reach, Cutters Landing and more recently Waterfront Newstead.

Mirvac’s Queensland CEO Matthew Wallace says the Hamilton site, located in Hercules Street, is six kilometres from the CBD and will likely accommodate more than 500 residences. Its end value will be around $300 million.

“We are very excited about the purchase of this site and while our planning is still in its initial stages at present we will be delivering a residential product that will broaden the price segments in which we operate,” he says. “The site is extremely well located and the same team that has delivered such projects as Cutters Landing, Tennyson Reach and more recently Waterfront Newstead will be behind the Hamilton development.

“The product will be affordable, it will be quality, it meets the State Government and city council’s planning goals of higher density in the CBD fringe and will be a prime example of contemporary urban design.” Wallace says the Hamilton development is a prime example of Mirvac’s national strategy to continually review and refine its product offering in line with demand and opportunities that arise.

...

Wallace says the Hamilton development will leverage off the established amenity within the immediate locale and it is proposed that the urban street environment will integrate with the existing Portside development.

The site is adjacent to the Portside Wharf development and cruise ship terminal, is approximately 500 metres to the City Cat, five minutes to the Gateway Motorway and 10 kilometres south of the Brisbane Airport.

The DPI has recently vacated the site.

“We are planning a range of innovative one and two bedroom product on the site and our research indicates that there will be significant demand for this product and this location,” he says.

“Our plan is to provide affordably priced, high-quality residences to a broad section of the marketplace and our team is excited about turning their minds to a new challenge.

...

Wallace says it is expected that approvals permitting, Mirvac will release the first of the residences at Hamilton next year.

See QBR

Alice Street Development by Sunland

The developer of the world's tallest residential tower Q1 on the Gold Coast has unveiled plans to build a $250-million luxury apartment tower in Brisbane's CBD. Sunland Group has lodged its proposal for the 44-storey Carrington Tower opposite the Botanical Gardens at 140 Alice Street, after acquiring a small slice of neighbouring land that currently houses a small apartment building.

The tower - said to be encased with a pewter glass wall with a subtle gold tint - will be built on the site of Devine's former French Quarter which was flattened by the global financial crisis in 2008.

Carrington Tower will be Sunland's first foray in the Queensland residential market since the completion of Q1 and Circle on Cavill at Surfers Paradise almost five years ago. Sunland Group managing director Sahba Abedian has hailed the design by Wood/Marsh as the developer's finest piece of architecture to be produced in the company's 27 years.

The facade of Carrington Tower will flow down to create a canopy over the lobby.

"We will be looking to create a very sculptural, iconographic tower that will really mark the entry into Brisbane from the southside of the city.

"It's a curvilinear building that really personifies the feminine form. If you look at the building it actually drapes out at the base that is not dissimilar to a beautiful dress - that's really the intent behind the tower."

Mr Abedian said he was confident Brisbane City Council would approve the tower by mid-2011, as it could potentially have an unprecedented amount of innovative sustainable design features, including solar panels incorporated into the louvres and blinds to capture and reuse energy.

"As we know the Baby Boomers are moving into retirement and lifestyle choices are changing ... and we hope to cater for these individuals," Mr Abedian said.

If approved by the council, Carrington Tower will be one of only a few buildings in Brisbane, including Riparian and The Grosvenor, designed for owner-occupiers. Mr Abedian said Carrington Tower would boast of the facilities of a hotel, including a 24-hour concierge.

"We believe there is strong demand for these environments," he said.

One-bedroom apartments with a study are expected to sell for about $500,000 and sub-penthouses $3 million.

Although Harry Triguboff's twin-tower residential development on Herschell and Adelaide streets is near completion and the abandoned Vision tower site on Mary Street may also be resurrected by developers Billbergia, Mr Abedian said he was confident there was room in the Brisbane market for Carrington Tower.

"We have a strong track record and we also have a very strong client base that I have no doubt will be very excited when we launch this project," Mr Abedian said.

"The testament of our capabilities is the proof of our projects through from Q1 to Circle on Cavill and Palazzo Versace."

Brisbane Times

Real Estate Photography

It is interesting to see how good photographs improve the image of an apartment. Have a look at the before and after photos on Brisbane photographer's website: http://www.akimages.org/

Auctions Today

According to APM, there were 16 auctions in Brisbane today, and only one property was sold. What does this tell you? Ray White seems to think that the market is good for sellers:

"Ray White CBD residential principal Brendan Tutt said demand for property in and around the city had remained strong and there was a shortage of supply.

“The best time to sell is when demand exceeds supply,” he said. “And that’s what the situation is at the moment.”"

See Ray White website

Australian House Prices Fall

"Aussie Dwelling Values Fall After 17 Consecutive Monthly Gains

30 July 2010 RP Data – Rismark Home Value Index Release Capital city dwelling values down 0.7% in month of June with no growth over June quarter Largest fall since April ’08 Rest of State dwellings also realise no growth in June quarter After 17 consecutive months of solid growth, dwelling values across Australia’s capital cities recorded their first monthly decline of 0.7% (seasonally-adjusted) in June according to the market-leading RP Data-Rismark Hedonic Home Value Index. This was the largest monthly fall in home values since April 2008. The June outcome follows on from a clear trend in the decline in monthly seasonally-adjusted growth rates in Australia’s capital cities over February (+1.0%), March (+0.9%), April (+0.6%) and May (+0.3%)." "Despite the recent moderation in capital gains, the risk of a dramatic decline in Australian dwelling values remains remote. According to Mr Lawless, “As the RBA has independently confirmed, arguments in favour of house price “bubbles” remain, in my opinion, overstated. Australia’s housing market has a structural shortage of roughly 200,000 homes, which has been substantiated by the National Housing Supply Council. While the inventory of unsold homes has risen of late, our Market Activity Index suggests that new listings activity will slow over the coming months. And although average time on market and vendor discounting have also expanded with the weaker conditions, these remain in line with historically reasonable levels.” “If we saw blow-outs in average time on market, re-listings, and vendor discounting, it would set off a few alarm bells. This, however, is not currently the case” Mr Lawless said." Brisbane apartment prices did ok. Brisbane Apartments - medium prices Month of June (indicative) - up 1.2% Quarter - up 1.9% Year to Date - up 5.7% Year on Year - up 5.9% Medium price over quarter - settled sales - $380,000 Brisbane Apartments - medium prices Month of May - up 0.9% Quarter - up 1.6% Year to Date - up 4.5% Year on Year - up 7.9%

New Vision Owner

The failed Vision tower site in Brisbane’s CBD has been sold to an Australian building and civil construction company following an extensive marketing campaign. The vacant site has been bought by Billbergia Group, which specialises in building and development, design, project management and facilities management.

Originally scheduled for completion in May 2012, Vision is a landmark development of a 5,478sqm site fronting Mary and Margaret Streets in the Brisbane CBD. The original designs included basement car parking, three levels of retail, 15 levels of office space, two observation decks and 53 levels of residential apartments.

“At this stage it is unclear whether the purchaser will build the original planned development. We will endeavour to obtain details from the purchaser with regard to their future intentions for the site and will provide further details to all stakeholders as these become available,” Campbell says.

The sale was negotiated by Jeff Dolan from Colliers International and Damian Winterburn from CapLand Real Estate Advisors, who jointly managed the sale process after receiving in excess of 10 offers.

Impacted by future development

There are alert services that let you know if your property may be impacted by a neighbouring development. For example, see:

www.planningalerts.org.au

North Quay

Meriton is set to launch its Brisbane North Quay tower, to be called Infinity. This building will have a mix of 1,2 and 3 bedroom apartments. It appears that the apartments will be larger than in many current projects, but there are no balconies.

Some example floorplans and floorplates:

This should be compared with Evolution, which is the nearest apartment building of similar age. Evolution is not yet sold out, and two bedroom apartments that originally sold off-the-plan in Evolution for $650,000 range and now listed for sale in the $550,000 range.

Parklands at Sherwood Update

The unique Pradella development at Sherwood, "Parklands at Sherwood" has about 22 apartments remaining for sale. Stages 1 and 2 completed and settled last year. It is rumoured that Stage 3 apartments will start being sold off-the-plan this year. All North facing (parkview) 2 bedroom apartments have sold out. The village green view apartments will have a better aspect once Stage 3 is complete.

In my view, these apartments are a good size, with generally good floor plans (particularly when compared with recently released developments). It is worth comparing the 3 bedroom parkview apartments (which are about 150sqm total floor area) for less than $700,000 with the 2 bedroom apartments that are less than 90sqm for about the same price.

Some example pricing:

Two bedroom apartments

1. Two bedroom, 2 bath, plus large multipurpose room. 95 sqm internal plus 17 sqm balcony, for a total of 112 sqm, ground floor - $519,000

2. Two bedroom, 2 bath, separate laundry, large living room, 2 car parks and 2 storage cages, ground floor corner apartment - 91 sqm internal and 29 sqm balcony for a total of 120 sqm - $535,000

3. Two bedroom, 2 bath, top floor, 2 car parks, 83 sqm internal and 14 sqm balconey = 97 sqm total for $515,000

Three bedroom apartments

4. Three bed, 2 bath, separate meals area, separate laundry, overlooking parklands, corner apartment 117 sqm internal, 24 sqm balcony - $685,000.

5. Three bed, 2 bath, separate meals area, separate laundry, top floor, overlooking parklands, corner apartment 118 sqm internal, 31 sqm balcony, 150 sqm for - $695,000.

Sunland in Alice

What looks like an Alice in Wonderland building, we have Sunland filing a Development Approval for a 44 Level residential tower in Alice Street. Proposed 233 apartments, from 1 to 4 bedrooms each. They look larger than is typical in Brisbane new developments these days. (Sunland's Circle on Cavill development had large apartments too.) Located at 140 Alice Street, next door to Quay West, on the Carrington site.

McLachlan & Ann

The new Laing O'Rourke development near James Street in The Valley, called McLachlan & Ann (or M&A) has received development approval and is currently in pre-sales.

There are 234 apartments, with one bedrooms selling from $345,000 and two bedrooms from $485,000.

Montague West End Pricing

Montague at West End is currently in pre-sales. Here are some example prices:

Level 11 (top floor) - 1 bedroom 1 car

Area: 69sqm total (53 sqm internal) plus balcony. The bedroom in internal with no windows. Kitchen is in hallway (galley kitchen). No laundry. Small -- keep in mind that a typical dulux hotel room is about 40 sqm.

Price $400,000

North facing with views

Similar floor plan on ground floor with courtyard

Total Area: 70sqm

Price $360,000

But there are even smaller apartments than this!

For example, a 1 bed 1 car apartment on level 2 is listed at $315,000

Area 48 sqm internal plus 6 sqm balcony for a grand total of 54sqm. This is a room, not an apartment!

A larger apartment, 1 bedroom, on level 8 is listed at $420,000.

This is 57 sqm internal, plus 20 sqm balcony, for a total of 77 sqm. The laundry is on the balcony.

Station 16 - South Brisbane

A new development from Aria, at West End is Station 16. Located at 16 Merivale Street, close to the off-ramp for the new Go Between Bridge. 60 apartments in total. One bedrooms from $335,000. Two bedrooms from $485,000.

"Station 16, offering 36 two bedroom apartments (including 5 Dual Key options) across 10 levels will take advantage of South Brisbane’s existing and future $4 billion infrastructure spend with the added benefit of an anticipated settlement date in 2012. The functional, contemporary, architecturally designed apartments that include European appliances tick all the boxes for the astute investor. With a selection of apartments boasting north-east facing aspect that provide outstanding Brisbane CBD views, you will want to be one of the first to secure your piece of Brisbane’s future."

West End - Montague

"...a limited opportunity to buy from the first round price list - elevated 1 bedroom apartments with secure basement car park from $315,000 and large 2 bedroom north and south facing apartments with sweeping views and secure basement car park from $560,000. These prices in West End represent undeniable value and it has been many years since we have seen this quality in an inner city project at such attractive prices. "

Unfair "off-the-plan" contracts

"People who buy properties off the plan will have greater protection from developers who wish to make last-minute changes to homes such as switching the light fittings or reducing precious floor space.

Property lawyers say new legislation about unfair contract terms could leave some developers exposed to contract terminations if they neglect to review their purchase agreements.

Common clauses in off-the-plan contracts allow developers to alter the size of the dwelling by up to 5 per cent or change inclusions and fittings without the purchaser's consent."

See SMH

"This means that a number of usual clauses in off-the-plan contracts, which allow flexibility in developing the site, may infringe the restriction on unfair terms. For example, “no objection” clauses, where the buyer cannot object to changes to the building, the lot or the scheme, or unilateral rights to terminate in favour of the developer, may be unfair to buyers and therefore void. Developers need to be careful that including such clauses does not create a “significant imbalance” in the parties’ rights and obligations, that the clauses are reasonably necessary to protect the developer’s interests, and that they do not cause detriment to the buyer if a term was relied upon. Where these types of clauses are to be included, developers will need to include provisions to support the necessity to include such clauses (such as a financier’s requirements or changing council requirements)."

See Legal Alert

Buyer Gets Out of Contract with Mirvac at Tennyson

See Wilson v. Mirvac regarding Tennyson Reach

"it is declared that the applicant has validly cancelled, pursuant to s 214(4) of the Body Corporate and Community Management Act1997 (“the BCCMA”), the written contract entitled “Sale Contract Tennyson Reach” dated 4 December 2007 between the applicant and the respondent"

"The apartment was to be the principal place of residence for the applicant, her husband, and two teenage children. It was adjacent to the Queensland Tennis Centre (a major public facility) and a busy public thoroughfare. At the time the applicant’s husband’s occupation was such that the whole family might reasonably have a heightened sense of vulnerability to unlawful attack. The security system had been promoted as an integral feature of the development and arrangements for its management. Viewed objectively, a person in the applicant’s circumstances in August 2009 would be disadvantaged in a substantial way by its omission. That disadvantage was compounded by the omission of other items of property which would have enhanced the amenity of the apartment."

See also Changes to Your Development: When is a Buyer Materially Prejudiced? - Property and Commercial Services Update - May 2010

Negative Views

"For the first time this year, most investors surveyed are expecting house prices to remain flat or fall.

SENTIMENT among Australian property investors is turning increasingly bearish, according to the latest Investor Pulse poll of investors conducted by Colmar Brunton and BusinessDay.

For the first time this year, the number of investors expecting house prices to remain flat or fall outweighs those who see prices rising. The fundamental reason for the shift in sentiment is a dawning belief that Australian housing is in a ''bubble'' that at some point will burst and return to historic levels of affordability.

When asked about recent comments by famed US fund manager and property bubble expert Jeremy Grantham - who described Australian and British property as the only two of 34 bubbles he had studied that had not yet burst - 43 per cent of investors agreed that reversion to the mean would involve considerable pain. Only 25 per cent of investors disagreed with the bubble diagnosis and 32 per cent were undecided."

For Full Story and Chart, see Domain

The Apple Brisbane

A small apartment building, called The Apple, is currently being marketed off-the-plan in Brisbane. The building comprises 1 bedroom apartments, which are 40 sqm internal, plus (for the most part) a 10 sqm balcony. There is one bedroom, one bathroom and a living room/kitchen. Very small. Priced from $339,000 to $560,000+. The apartments are located at 466 Ann Street, Brisbane and will block some of the views of the lower apartments in "Mantra on Queen". Compare Quay West one bedrooms, 74sqm with park views and a pool, for $450,000 or so, furnished.

El Dorado Indooroopilly

From an email from an agent:

"With over 70% of the apartments now sold Pretoria Property group are now finalising their construction finance so as to commence building the iconic apartments in October this year."

An email from the same agent a few days previous says:

"With the development earmarked to complete construction at the beginning of 2013..."

How many bubbles?

There has been much discussion recently that the Australian housing market is 30% or more overvalued and is a bubble. However, recently, a respected stock analyst says that the stock market is way over valued, and that the Dow will drop from 10,000 to 1,000 soon. If that is the case, it is better to be in property than stocks (although cash may be better still!)

See Reuters.

Triguboff's View of Brisbane Apartments

"... In Brisbane the market is tougher and Triguboff may need to hold many of the apartments being built as an investment.

He says that it seems that as you go north prosperity declines with Melbourne the most prosperous city followed by Sydney a notch down and Brisbane two or three notches below Sydney. Prices of two bedroom apartments in Brisbane sell for about a 30 to 35% below Sydney, partly because of the lower cost of land and partly because of the lack of confidence in Brisbane.

However Triguboff believes, in time, the gap will narrow. Brisbane buyers' confidence has been shaken by the collapse of a number of apartment projects. But Triguboff believes that in time Brisbane will regain its confidence and he will have the apartments there to sell. ..."

From Smart Company

Comment from Prestige Agent

"I think we have seen it is a buyers' market at the moment," she says. "Our open home attendances are down by 30 to 40 per cent on last year."

I hope this agent is telling her prospective sellers this!

See Courier Mail.

The Studio at St Lucia near University of Queensland

Last month, I wrote about The Studio development at St Lucia, located very close to University of Queensland. The developer released one of the two buildings to the market, and it sold out about 25 apartments in a week with no marketing.

There was an interesting comment about The Studio in Herron Todd White's July 2010 "Month in Review" as follows:

"High demand rental areas with reasonably assured income are a safe bet and one of our tribe suggested St Lucia is a good place to park the dough. The nearby university and ready access to facilities add up to strong demand. One development is claiming a 6.5% return on a $440,000 outlay for a double studio apartment design where both tenants share kitchen facilities. It’s geared towards cashed up, overseas students willing to part with over $250 per week per studio, which could prove to be a tall order. Our advice, if you’re interested in this type of investment, is to consider all options. Second hand multi bedroom units are offering a solid return and, more often than not, better capital growth potential compared to new stock. Just make sure you talk to one of our valuers before proceeding headlong into any under researched option."

West End - Montague - from agent's email

• BUZZING WEST END RIVERSIDE LOCATION
• INSPIRED DESIGN BY INTERNATIONALLY RESPECTED COTTEE PARKER ARCHITECTS
• RIVER, CITY AND PARK VIEWS
• LUSH, SUB-TROPICAL LANDSCAPED CENTRAL PLAZA
• LAP POOL, GYMNASIUM, RESIDENT REST & RELAXATION SPACES ON ALL ROOF TOPS

Bubble?

Is there a housing bubble in Australia?

See this article from The Trump and also this article.

See also comments on the RP Data blog and Domain.

Also:

"SQM Research founder Louis Christopher says vendors have "not yet woken up to the reality of the new market".

"There are fewer buyers out there. When houses are selling the best way to sell is at auction. But in a slower market, that's not the best way because you're not going to get as good a result."

"There are listings everywhere. We're in a situation now where buyers are backing away, but there are still people trying to sell. They're not going to get the prices they had hoped for, and it's going to be disappointing for them."

Christopher says that over the rest of the year, there will be an oversupply of stock in the market, which will put downward pressure on prices.

Additionally, he says property investors wanting to sell should have made their move in the first four months of the year. Now, he warns, they may have missed their chance."

See Property Market Has Cooled from SmartCompany

Waters Edge Update

There are some good photos of the construction of Waters Edge on the developer's website. The developer is currently advertising an X type apartment "from $645,000". This is a one bedroom apartment, with an internal study or second bedroom (no external windows).

Number of Unit Sales Decrease

Latest data from the Real Estate Institute of Queensland shows there were about 10,000 unit and townhouse sales in the six months ending March - 20 per cent less than those in the previous six months.

See Courier Mail

Gold Coast Oversupplied

Coast High Rise Demand Dries Up

The situation on the Gold Coast is not good. I wonder if everyone will be able to settle new apartment purchases in Soul and Oracle this year, when valuations are likely to come in under contract price. Note that Juniper's last project is SE Qld, Oceans, there have been no resales of apartments for more than the initial off-the-plan contract price -- with some owners selling at $200,000 or more loss. From the Gold Coast Bulletin:

"THE Gold Coast's high-rise market is at a standstill, with only 57 new apartments sold in the May quarter, the quarterly Midwood Report has revealed.This takes the total number of units sold since December last year to 115, the report shows.

Units in the city's biggest projects -- Oracle, Soul and Hilton -- are due to settle later this year. Settlement will depend on valuations, available finance and the circumstances of the owners.

Bill Morris, author of the report, said settlement of these projects would be the 'litmus test' for the market, with many buyers handing over deposits before the onset of the financial crisis, when unit values remained strong. He also said there was enough available stock for five years."

See also

http://www.goldcoast.com.au/article/2010/06/11/227041_gold-coast-real-estate.html

El Dorado Indooroopilly

The El Dorado Indooroopilly apartment development is still selling off the plan, and despite about 2 years of marketing, construction has not started. Some of the three bedroom apartments have been reconfigured as 1 bedroom apartments. The developer is now offering incentives for the smaller 1 bed apartments, which are small and the bedroom is fully internal (edited from an email from an agent):

Pretoria Property Group (developers of Indooroopilly’s ‘El Dorado Village Apartments’) has agreed to provide the following investment package.

Purchase as an investment property the A3 Type or A4 Type 1 bedroom apartments currently available for sale at El Dorado Village and Pretoria Property Group will provide to you from time of Settlement:

• Rental Guarantee @ 5% Gross rental yield paid for 2 years;

• Body Corporate fees paid for 2 years;

• Brisbane City Council Rates paid for 2 years;

• Supply and Installation of Door and Window coverings;

• Depreciation Schedule.

With the development earmarked to complete construction at the beginning of 2013, the above package will mean that the astute buyer will have nothing more to pay until approximately 2015.

So it begs the question, ‘if investors and upgraders are currently driving the residential property market then how much capital growth do you think residential property in Indooroopilly will achieve in the next 5 years’?

Recently in the ‘Matusik Market Update’ (dated March 2010) Michael Matusik stated that, “new apartments in both Toowong and Indooroopilly have seen consistent price growth in recent years. Last year the average annual gain was 5.9%, with owners making $102,000 in gross terms between sales. This compares well within just a 1% average growth rate for apartments across the Brisbane area during calendar 2009”.

In a recent article published by Investors Choice dated 1 June 2010 it was stated, “Brisbane will experience 10% per annum growth over the next 3 years” (click here to See Article).

With the suburb of Indooroopilly being a traditional high growth area the thought of purchasing a secure investment at today’s prices and watching that investment grow in value over the next 5 years is indeed very appealing.

El Dorado Village itself is a mixed-use development that comprises retail, cinema’s, commercial and residential tower. It has been identified that mixed-use developments such as El Dorado command higher growth due to greater demand to live in such complexes (click here to see extract from Michael Matusik).

This is a limited investor special and will only be provided to the first 10 buyers. One bedroom apartments at Eldorado Village start at $397,000.

RP Data April 2010 Index

In the month of April all cities recorded capital gains substantially less than the national average of one per cent per month in the previous 12 months, with Melbourne’s monthly growth rate halving from 1.6 per cent per month in the year to March to just 0.8 per cent in April.

Several cities recorded a dip in home values in April, with Brisbane values down 1.2 per cent, Perth values down 0.9 per cent and Darwin recording a 0.3 per cent fall. While both Brisbane and Perth have been consistently weak performers over the last year, Darwin dwellings have risen in value by 54 per cent since the start of 2007.

According to Tim Lawless, RP Data’s Director of Research, the April results are the lowest monthly capital gain since the end of the GFC-induced downturn in December 2008.

“A wide range of indicators have been hinting that a slowdown was on the cards. We are in a market now that has lower auction clearances, weaker home loan approvals, and lower consumer confidence. Combined with the six recent interest rate rises, and the fact that home values have recorded very large gains across key markets since the start of 2009, it is not surprising to see values start to track sideways,” Mr Lawless said.

Christopher Joye, CEO of Rismark International, added, “We have been forecasting a cooling in capital growth rates back down to single digit levels since October last year. Australian disposable household incomes rose by 11.5 per cent in 2009—unsurprisingly, the cost of housing increased by almost exactly the same amount. In 2010, disposable household income growth will be less than 5 per cent. Over the long-run, residential property values track purchasing power quite closely. We believe 2010 will be no different in this regard.”

Brisbane Apartments - medium prices

Month of April - down 1.2%

Quarter - down 0.4%

Year to Date - up 2.2%

Year on Year - up 6.8%

Medium price over quarter - settled sales - $375,000

Further Information Here and detailed information here

FKP's The Milton - in pre-release

The project is a mix of retail, commercial and residential development approved for 30 storeys above ground, at Milton Railway Station. It is approved for:

• 303 Residential Apartments in one and two bedroom configurations from level 2 to 30.
  
• First Floor Commercial.
  
• Ground Floor Retail outlets and Promenade.
  
• Almost every apartment has at least one Car Park.

One bedroom apartments with car parking start from $446,000.

Two bedroom apartments with car parking start from $640,000.

One bedroom apartments without car parking (there are only two of these available) start from $379,000.