Tuesday, April 12, 2011
Tennyson Prices
Sunday, April 10, 2011
From the USA
Trilogy Definitely Not Going Ahead - One less hotel for Brisbane
The Trilogy building, which was to be a mix of apartments, offices and a Mirvac hotel, is officially dead.
Despite reportedly good off-the-plan sales, it is now reported that the current owners of the land are selling to a Melbourne developer who will build an office tower on the site. This may impact some of the views from Aurora?
See Brisbane Times
Recent Sales
- Quay West, apartment 1506, 2 bedroom, sold last week, reportedly very close to listing price of $775,000
- Quay West, apartment 1505, 1 bedroom, sold last week, listing price $465,000
- Arbour on Grey, apartment 2302, 2 bedrooms, sold at auction yesterday for $611,000 according to APM
- Parklands Pinnacle, apartment 6017, 3 bedrooms, failed to sell at auction, sold after for $1.3M
Buyers Market
- The Courier Mail makes money from property advertisements and thus tries to have positive stories about the property market and its advertisers (i.e., real estate agents). This Saturday's Courier Mail had no stories about residential real estate at all.
- Real estate agents are returning my calls when I say that I am looking to buy. I even have agents offering to be a buyers agent for me.
- In relation to sales in apartment buildings that I follow, for sales this month, the prices are flat or going backwards (10% to 20% declines in sales prices for comparable apartment property sales, compared with sales prices from six months ago). There are some exceptions to this.
Flat
Friday, April 8, 2011
Only Modest Gains
Sunday, April 3, 2011
Rate Your Agent
What happens when property values correct
Thursday, March 31, 2011
Admiralty Two and Mosaic management rights for sale
Housing Flat in February - almost no growth over past year
From RP Data Press Release today:
After a natural disaster-affected January (-1.5 per cent seasonally-adjusted or -0.7 per cent raw), RP Data-Rismark's Hedonic Index reports that Australian home values held ground during the month of February.
In the capital cities, RP Data-Rismark recorded flat dwelling values (0.0 per cent seasonally-adjusted or a slightly stronger +0.7 per cent in actual 'raw' terms). The 'rest of state' areas, which account for the 40 per cent of homes not located in the capitals, also displayed some improvement during February with house values rising by 0.5 per cent seasonally-adjusted (+0.3 per cent raw).
Over the 12 months to end February, Australia's capital city home values have hardly moved, rising by only 0.8 per cent. The story is the same in the rest of state regions, where home values remain unchanged (-0.2 per cent) over the last year.
In the property investment market, RP Data-Rismark estimate that gross apartment and detached house yields were 4.8 per cent and 4.2 per cent, respectively, in February. Darwin (5.7 per cent), Canberra (5.3 per cent), Sydney (5.1 per cent) and Brisbane (5.1 per cent) all offer reasonable rental yields in the apartment market. Melbourne is the laggard at 4.2 per cent. ...
A (near) double interest rate hike in November 2010 combined with numerous natural disasters has conspired to make the last three months difficult ones for Australia's housing market. ... While the weakness has been evidenced right across the nation, it has been especially acute in Darwin (-9.0 per cent) and the two resource-centric capitals, Brisbane (-3.3 per cent) and Perth (-1.9 per cent).
"Recent RBA analysis also shows that repossessions have been highest in Perth and South East Queensland, which helps explain the poor performance seen in these states. Indeed, Perth home values remain 0.7 per cent below their December 2007 levels", Mr Kusher added.
Over the 12 months to February, Sydney (+3.3. per cent), Melbourne (+2.5 per cent), Canberra (+0.7 per cent) and Adelaide (+0.6 per cent) have ground out modest capital gains. In contrast, Brisbane (-5.3 per cent) and Perth (-4.1 per cent) have experienced more material corrections. ...
According to RP Data's Mr Kusher, the key leading indicators indicate that capital growth is likely to remain very subdued for the time being, as Rismark and RP Data have previously forecast.
"Auction clearance rates have been a little weak, the number of homes advertised for sale is at the highest level it has been since we started collecting this data, and other lead indicators, such as the time it takes to sell a home, and the margin by which vendors have to discount their properties, are climbing again after reaching a plateau in recent months. Conditions are certainly in the favour of prospective investors. The large stock of homes available for sale should afford potential buyers increasing scope to negotiate on price and get the best possible deal," Mr Kusher said.
Tuesday, March 29, 2011
Yield
Given the past performance and recent volatility of the rental market, which has occurred despite low vacancy rates, investors should be factoring both negative and positive rental-growth scenarios when making purchasing decisions.
Prospective off-the-plan buyers should also consider what kind of apartment stock and how much is planned in their immediate area, which could affect demand and rental levels by the time their unit is put on the market."
From Domain
Sunday, March 27, 2011
How Many Apartments for Sale in Brisbane?
- Quay West: 4 apartments for sale (two 2 beds; two 1 beds).
- Admiralty Quays: two 2 beds
- Admiralty Towers: one 2 bed at rear
- Admiralty Two: one 2 bed; one three bed
- Arbour on Grey: 2 apartments for sale (one 2 bed; one 3 bed).
- Saville SouthBank: zero
Wednesday, March 23, 2011
Soul Settlements Coming Up
Soul off-the-plan purchasers in the low rise section are getting ready for settlement. Soul is located at Surfers Paradise, in a prime location. It is a very high end high rise. Photo from March showing progress.
Valuers and banks for purchasers are looking at contracts and doing valuations. I have heard of a situation where the apartment was valued at 70% of the contract price. That may not seem to bad, but if the contact price is $2M, then the purchaser needs to find an extra $600,000 to settle.
And there has been no announcement of who will manage this complex.
Will Juniper survive, or head the same way as Raptis and Niecon?
One purchaser is trying to resell his 2 bed apartment for more than a 3 bed apartment is being valued at: www.soul-apartment.com/
Tuesday, March 22, 2011
Developments at Portside
Properties Advertised For Sale
Takeover Bid For Oaks
Rough Ride For Property
At the other end of the auctioneer's hammer, stubborn vendors are reluctant to reduce prices."
See Domain
Saturday, March 19, 2011
Tennyson Reach - Legal Decisions
"As already noted, Mr Cox values the apartment at $1,500,000 and said that its value would have been $1,750,000 had the view been the equivalent of that from the display centre. " Mirvac v. Holland
"The defendant [Mirvac] is in possession of the apartment. After the flood, it removed the mud. The walls of the apartment consisted of Gyprock sheeting. The defendant removed the lower level of the Gyprock, which was flood affected. Wiring was disconnected; switches were removed and piled into a heap; appliances were disconnected. Dunworth v. Mirvac
"It is that the area of a part of the actual Lot varies by more than five per cent from the area depicted upon the drawing for that part. In this case the area of each of the balconies varies from what was shown within the original drawing by, in one case, 10.35 per cent and in the other by 15.30 per cent. Because clause 6.3(a) of the proposed (and actual) contract permitted a change up to five per cent to the “size of the Lot or any part of the Lot” it is argued that these changes made the actual Lot different from the proposed Lot as originally identified." Mirvac v. Beioley
Q1 Legal Decision - Purchaser Looses Large Deposit
Top End Brisbane Apartments
Tuesday, March 15, 2011
Another Dog Decision
Riverpoint Flood Clean Up
The body corporate has prepared a damage report and a preliminary estimate of costs for the clean-up, hire of plant and equipment, purchases involved in the clean-up, temporary electrical power and supply, pump equipment, rubbish disposal, repairs to the electricity supply and switchboards, repairs to ducting and air-conditioning, replacement of pumps and sensors, repairs to sewer and stormwater pumps, repairs to 8 lifts and replacement of lift equipment, pool pumps, entry roller door, fire doors, painting and “miscellaneous.”
The total estimate is $551,341.35 including supervision and co-ordination of the repairs, exclusive of GST."
See decision regarding Riverpoint at West End.
Tennyson Reach Clean Up
Oaks Dives
Sunday, March 13, 2011
Noosa
As pressure mounts on sellers some under siege from banks prices of homes in the iconic playground for the rich and famous have dropped.
Prominent agent Tom Offermann said that for "those with confidence" this was a defining moment. "You can buy well and reap the rewards," he said. "Stock is up 20 per cent on normal levels, buyers are down about 30 per cent and there's good value."
Mr Offermann said the reason behind the downward shift was that Noosa had a high concentration of "discretionary properties" holiday and investment homes that people looked to dispose of in uncertain times. However, he said the area coped better than other hotspots and would bounce back faster.
Mr Offermann's agency recently sold a duplex apartment at 2/11 Mitti St, Little Cove, for $2.015 million for sellers who had acquired it in 2006 for $2.43 million a reduction of 17 per cent.
A stunning waterfront unit in Las Rias on Noosa Sound is listed at $1.95 million 22 per cent below the 2008 value of $2.5 million."
Saturday, March 12, 2011
New Developments Blog
Mirvac at Portside
Gold Coast Sinking Under Apartments Glut
- 2000 apartments worth an estimated $2 billion listed for sale
- few buyers
- dire oversupply
- only 300 apartments are selling on average each year
- between 5 and 7 year supply of apartments
- high asking prices and a reluctance by banks to lend had compounded the oversupply problem
- NAB less likely to lend to the Gold Coast apartment market
- Mr Korda, receiver for The Oracle, estimates average apartment price for the past 10 years has been about $400,000, while the average price for an Oracle unit is $1.2M.
- Soul will add to the glut, where the average asking price for the top third of the 77 storey building is $3.87 million.
- "If you have a $1 million apartment, you could probably only get bank finance for $360,000" Mr Korda said.
- Its a price point and liquidity issue.
Friday, March 11, 2011
REIQ Sales Report
Region | Median Sale Q4.10 | Qtrly change | Median Sale 12mths Q4.10 | Median Sale 12mths Q4.09 | 1yr change |
BNE (SD) | $380,000 | 1.3% | $379,950 | $362,000 | 5.0% |
BNE (LGA) | $400,500 | -1.8% | $407,000 | $386,500 | 5.3% |
AUCHENFL | $447,500 | 4.1% | $430,000 | $430,000 | 0.0% |
BNE CITY | $485,000 | -4.9% | $460,000 | $423,500 | 8.6% |
CHERMSIDE | $415,000 | 8.1% | $426,250 | $407,500 | 4.6% |
The VALLEY | $375,500 | -4.9% | $400,000 | $402,500 | -0.6% |
INDO | $460,000 | 2.4% | $465,000 | $435,000 | 6.9% |
KANGAROO PT | $408,000 | -25.8% | $505,000 | $450,000 | 12.2% |
NEW FARM | $531,500 | 4.2% | $525,000 | $460,000 | 14.1% |
PADDO | $407,500 | N/A | $420,000 | $444,000 | -5.4% |
Sth BNE | $472,500 | 2.3% | $445,000 | $399,250 | 11.5% |
SPRING HILL | $391,063 | 10.9% | $390,000 | $390,000 | 0.0% |
ST LUCIA | $447,065 | 5.2% | $440,000 | $448,750 | -1.9% |
TARINGA | $427,500 | -2.8% | $426,750 | $399,500 | 6.8% |
TOOWONG | $407,000 | -4.3% | $435,500 | $415,000 | 4.9% |
WEST END | $520,000 | -3.0% | $530,000 | $509,000 | 4.1% |
Construction Costs
Fairfax Says, Don't Trust Real Estate Agents
REIQ Queensland Unit Report
"The Queensland unit and townhouse market held its ground over the December quarter last year, even as the number of investors and first home buyers remained relatively subdued.
Completing a trend throughout 2010, the last three months of the year were characterised by lower overall buyer demand, particularly from the type of buyers who typically target the unit market.
Similar to the house market over the December quarter, Real Estate Institute of Queensland (REIQ) figures show unit sales across the State easing over the quarter however some regions fared better than others.
“The unit and townhouse market at the end of last year was impacted by less overall demand from investors as well as the lower number of first home buyers in the market compared to the same period in 2009,” REIQ acting CEO Ian Murray said.
“Although we have experienced a number of natural disasters in Queensland in the beginning of 2011, it is hoped that the steady interest rate environment and the stable property pricing that now appear to be in play will result in a strengthening unit and townhouse market by year’s end.”
...
In Brisbane and surrounds broadly, a drop in the number of unit and townhouse sales occurred predominantly within the $350,000 to $500,000 price bracket which is the price range usually targeted by first-timers and investors.
The inner city continues to be the most sought after for units in Brisbane with Brisbane City recording 76 preliminary sales, New Farm recording 48 preliminary sales, and Fortitude Valley recording 33 over the period.
Over the December quarter on the Gold Coast it was the bottom and top end of the market that performed the best with preliminary sales increasing in the sub $250,000 price bracket and the $1 million-plus price bracket compared to the September quarter. Surfers Paradise and Broadbeach were the star performers with each recording 20 more preliminary sales than the previous quarter.
On the Sunshine Coast, Sunshine Beach and Caloundra recorded increases in preliminary sales numbers, while the region as a whole saw unit sales numbers hold steady."