Source: BIS in The Australian
Sunday, May 22, 2011
When the Resources Boom is Over
Saturday, May 21, 2011
House Sales Down
The natural disasters earlier this year, coupled with the higher interest rate environment, resulted in a weaker March quarter for residential property, according to the Real Estate Institute of Queensland (REIQ). The impact of the Queensland floods was keenly felt in affected Brisbane suburbs over the period with many suburbs not recording enough preliminary sales for a reliable median house price to be calculated.
The REIQ’s March quarter median house price report found that out of about 50 Brisbane suburbs reportedly flood-affected, only 17 recorded a minimum of 10 preliminary sales to allow a median house price to be calculated. The biggest drops in preliminary sales occurred in Moorooka, Graceville and Kenmore when compared to the December quarter last year.
“Many would-be sellers in these areas have wisely either taken their homes off the market – even if they were not flooded – or decided they will ride out any market reaction to properties in flood-affected areas,” REIQ chairman Pamela Bennett said. “While some affected Brisbane suburbs did record a drop in preliminary sales, a number of others that were partially flooded continued to record steady sales over the quarter, which is a testament to the continued desirability of living in locations such as New Farm and West End. About 75 per cent of Brisbane was not affected by the floods and these areas are continuing to record steady sales and results.”
Over the March quarter, the Queensland property market remained soft with sales numbers down about 14 per cent compared to the December quarter last year.
The Brisbane median house price decreased 1.9 per cent to $515,000 over the quarter. Preliminary sales numbers were down about 15 per cent on the previous quarter.
The Gold Coast’s median house price remained steady at $490,000 over the quarter and was also one of the few areas across the state to record a stable number of preliminary sales.
“The majority of Queensland is still very much a buyer’s market,” Ms Bennett said.
A New Vision 111+222
A new development application has been lodged for the Vision site (where the Vision building was planned, with many apartments over $1M being sold off-the-plan in 2006 to 2009).
•The taller tower is currently known as 222 Margaret Street and is 90 levels (297m) in height.
•A 5 star 380 room hotel is proposed for this tower, however the hotel operator is not yet known.
◦The hotel will have a ballroom.
•The tower will mostly comprise of 790 one, two and three bedroom residential apartments over the 90 floors.
•Restaurants & bars will be situated throughout the project with a key cross block link from Mary to Margaret Street to be established in stage 1.
•Depending on if the tower's 297m height is AGL (above ground level), 222 Margaret St will share the title of Australia's tallest tower with Eureka Tower - currently the tallest in Australia.
•It is not yet known if there will be an observation deck at the top - similar to what it's predecessor, Vision had.
111 Mary St Tower:
•111 Margaret St tower is the smallest of the two, rising 34 levels.
•This tower will be completely office.
•AMP Capital is funding this part of the development
•980 car spaces will be built across eight underground levels.
The development has been designed by Bates Smart Architects and boasts a glass cylinder like design for the taller building. Billbergia will lodge the development application this week after releasing the plans to the media.
Updated Post: Click Here.
Infinity Tower
New Flood Maps
Watch Out For Illegal Conduct of Developers!
"... Ms Greenwood and Mr Gaffney contracted to purchase an apartment, lot 80, by a contract with the defendant dated 27 December 2006. Their contract specified a price of $508,400. However, on a separate page it contained a special condition, handwritten by Ms Greenwood, which was as follows:
"The settlement to be on forty-five (45) days, but if settlement occurs within thirty (30) days, there will be a rebate of one hundred thousand dollars ($100,000)."
Their evidence is that Mr Kemm asked them to contract in these terms, the mutual intention being that the price would be $408,400, because he thought it desirable that it be represented that this apartment had sold for $508,000, which Ms Greenwood said had become the list price by the time of their contract.
Whilst Mr Stumer knew that Ms Greenwood and Mr Gaffney were themselves buying an apartment, he was unaware of the price and of its significant discount upon the listed price. There is no specific complaint that the non-disclosure of her contract price was misleading and deceptive. However, that non-disclosure, in the circumstances of the long friendship between these individuals, does not enhance her credibility. More importantly, the fact that Ms Greenwood and Mr Gaffney were prepared to facilitate a misrepresentation of their contract price to other potential buyers is relevant to their credibility."
Tuesday, May 17, 2011
Mirvac's Hamilton Apartment Project
Sunday, May 15, 2011
Casino Towers - Recent Sales
Recent Sales - Felix
Aurora Towers - Recent Sales
Car Space
"Looking at going rates for Brisbane
Budget on spending big if you plan using the Riverside Centre’s car park, situated in the heart of the financial, business and Riverside fine-dining precinct – at $21 for up to 30 minutes, it’s the most expensive place to park short-term in Brisbane’s
As public transport fares also continue to skyrocket, leasing a
PRD Report on Brisbane
“Contracting sales below the $500,000 price point can be attributed to the exacerbated impact increasing interest rates and the rising cost of living have had within this price sensitive market”
Brisbane unit product sold within the December 2010 half year has recorded an annual increase of 3.8% ($15,000), to register $415,000. Similarly to the house market, sales activity within all price brackets has contracted, although unit sales within the lower price points have absorbed the brunt of falling demand. This has resulted in median price displaying growth, whereas values have most likely softened as vendors are forced to discount prices in order to sell.
“The CBD Precinct consistently achieves less capital growth than fringe areas due to its location as the primary hub of Brisbane, however this region does yield higher rental returns”
Over the December 2010 half year period, the Brisbane CBD unit market has established a median price of $467,000 through an annual growth of 4.4% ($19,500). This represented the second highest growth across Brisbane throughout the December 2010 six months.
In order to establish the realised returns by vendors who sold their unit during the December 2010 period, PRDnationwide Research conducted a resale analysis. The Brisbane CBD Precinct consistently achieves less capital growth than fringe areas, due to its location as the primary hub of Brisbane in terms of amenity, employment and entertainment. The resale analysis has supported this, recording an average annual capital growth of 3.9% per annum. This product was held for an average period of just under five years.
The number of general apartment sales in the CBD Precinct has tightened significantly by 46% (167 sales) over the December 2010 half year period to register 197 sales. This reflects the second strongest drop in sales volumes for all precincts within the Brisbane LGA over the December 2010 period.
Ray White's Representations
Hamilton Harbour
Riverside Hamilton, the third and final residential stage in prestigious Hamilton, is selling fast and due to commence construction later this year with completion in 2013."
Hamilton Harbour is located on the busy Kingsford Smith Drive, and is not riverfront, but one block back from the river.
A tiny 61 sqm internal two bedroom apartment with views to the airport and not the river is available from $533,000 on level 15, or $485,000 on level 2.
Reminds me of the article about the shrinking apartment size. Clearly, this building is aimed at investors and not residents.
Brisbane City Rents
Number of Listings
RP Data reports:
Alex Perry Residential
A new development in the Valley is now in pre-sales, Alex Perry Residential. It has 131 apartments, a mix of 1, 2 and 3 bedrooms. The website says apartments are priced from $375,000 to $3 million. It is located at 959 Ann Street, on the corner of Chester St.
Saturday, May 14, 2011
Sales in Charlotte Towers and Festival Towers
Wednesday, May 11, 2011
McLachlan & Ann Update
An Extraordinary Turnaround
Broadly all indicators are up on recent weeks with inspection numbers much improved; likewise the number of new listings, the number of offers on properties for sale and for lease, and the number of executed contracts.
Just what has triggered this positive abberation in the market is unclear. It may have been a bit of catch up after what has been several weeks of unseasonal quiet in the market, but could also be the fact that interest rates are stable in a broader economic environment here and abroad that is clearly entering an inflationary phase, usually the precursor to better times for hard assets such as property. "
Friday, May 6, 2011
Eden in Albion
The Mood In Brisbane
Oaks
Noosa
One market source estimated that there was currently one buyer for every 50 properties available in Noosa, saying property values had "fallen off a cliff".
"It was a special market and went up every year for 18 years or so, this is the first dramatic downturn," the source said.
Noosa had withstood every other downturn since 1983, but the market was now worse than the Gold Coast, he said.
No Buyer's Strike
Online activist group GetUp! decided not to pursue a strike of home purchases to protest at the lack of affordability in the housing market because its own members did not like the idea.
"While the issue of housing affordability is clearly an issue that resonates with plenty of people, GetUp! members don't support a boycott campaign," wrote Kelsey Cooke, online community co-ordinator for GetUp! late last week.
"Over the course of the last couple of weeks, we surveyed a random segment of our membership to gauge support - only 10 per cent strongly support the campaign, and more than half the surveyed members opposed this campaign altogether."
Brisbane TimesBrisbane, Australia - Cheapest Place to Buy Property
Number of Advertised Properties For Sale
Monday, May 2, 2011
Brisbane Skyline Photo
Sunday, May 1, 2011
Saturday, April 30, 2011
USA Prices Reverse Again
Indexes of the two markets showed this week that the latest declines had almost wiped out the mild gains the two markets had shown after prices appeared to have hit bottom.
The Standard & Poor’s/Case-Shiller index of home prices ended February 3.3 percent below where it was a year earlier, and just 0.5 percent above the low reached in May 2009. The Moody’s/REAL Commercial Property Price Index was reported to be down 4.9 percent over the last 12 months, but still 0.8 percent above its low, reached last August. ..."
RP Data - Rismark March Report
While Australia’s capital city home values were flat in March (-0.2% seasonally adjusted and 0.0% raw), they softened by -2.1% (seasonally adjusted) over the March quarter (-0.4% in raw terms). In contrast to these results, weekly rental rates are up 4.6 per cent over the last six months.
The latest RP Data-Rismark Home Value Index results show capital city dwelling values were flat in the month of March (-0.2 per cent s.a. and 0.0 per cent raw). However, over the March quarter capital city home values softened noticeably (-2.1 per cent s.a. and -0.4 per cent raw).
Over the twelve months ending March 2011, Australian capital city dwelling values were broadly unchanged (-0.6 per cent).
According to RP Data research director Tim Lawless, while residential property owners may not have seen any capital growth over the past 12 months, many are realising robust increases in rental yields.
“In contrast to the fall in home values, gross rental yields have been improving with apartments and houses now delivering a gross return of 4.9 per cent and 4.2 per cent, respectively, in March 2011 according to RP Data-Rismark’s estimates,” Mr Lawless said.
Ben Skilbeck, joint managing director with Rismark International, said this is consistent with the sprightly rental appreciation documented by the ABS in its inflation measure, with the dollar value (as opposed to the price yield) of the rental component of the ABS’s inflation benchmark rising by a striking 1.3 per cent over the March quarter alone.
According to Tim Lawless, Brisbane has recorded the weakest results over the quarter and the year.
“Unsurprisingly, the flooding that has occurred within South East Queensland has likely compounded Brisbane’s weak market conditions. Brisbane homes were the worst performers during the March quarter, with values tapering sharply by -4.6 per cent s.a. (-3.3 per cent raw). Brisbane values are down 6.8 per cent over the year to March 2011,” he said.
At the end of the March quarter, in the capital cities the national median dwelling price was $455,000. For all regions across Australia, the national median dwelling price substantially lower at $410,000.
The moderation in Australian housing valuations are likely to be warmly welcomed by prospective home buyers, particularly first timers who have been confronted with affordability barriers. RP Data’s research director, Tim Lawless said, “With household incomes growing at 6 per cent per annum, interest rates potentially approaching the peak of the tightening cycle, rents increasing, and house values going nowhere, buyers are seeing an improvement in their position. With first time buyers now representing a bit less than 15 per cent of all owner occupier housing finance commitments, it is likely that market activity in the first-time buyer market will increase in the medium term,” Mr Lawless said.
Rismark’s Ben Skilbeck, added, “Rismark forecast a soft-landing in the Aussie housing market in the second half of 2010, and projected that this would persist through 2011. These forecasts are coming to fruition. If the RBA does raise interest rates one or two more times this year, we expect to see further valuation improvements.”
RP Data’s Mr Lawless said the tightness in the rental market combined with flat to negative change in home values is providing a boost to rental yields.
“Based on the RP Data-Rismark Total Return Index, we estimate that weekly asking rents are up 4.6 per cent over the last six months. While the highest yields are found in the Darwin apartment market (5.7 per cent), apartments in Hobart (5.4 per cent), Canberra (5.4 per cent), Brisbane (5.2 per cent) and Sydney (5.1 per cent) also offer attractive yields,” Mr Lawless said.
He added that key leading indicators point towards a sedate capital growth environment for the remainder of the year.
“Clearance rates are bouncing around the low fifty percent mark each week, the number of homes being advertised for sale is almost 30 per cent higher than at the same time last year, and sellers are being forced to adjust down their price expectations. Before there is any real upwards pressure on home values there will need to be some absorption of effective supply and a return of sustained buyer confidence to the market,” he said.
Thursday, April 28, 2011
Brisbane Not Cataclysmic After Floods
Brisbane house prices are the lowest of any mainland capital with January's floods and a struggling state economy blamed for a 2 per cent fall in the median price over the March quarter. But analysts believe the fall is a good result compared with "cataclysmic" predictions for the city's property market in the aftermath of the natural disaster.
According to Australian Property Monitors' March Quarterly House Price Report, the Queensland capital overtook Adelaide as the most affordable mainland city with the median house price standing at $448,669, a 4.3 per cent annual drop. Brisbane unit prices remained the second cheapest in the country at $354,089, well ahead of Adelaide ($296,939).
Andrew Wilson, a senior economist from Australian Property Monitors, said the fall in median house prices from a mark of $457,889 in the December quarter was only marginal compared to some analysts' post-flood predictions.
Dr Wilson said declines of up to 15 per cent and 20 per cent for the city had been predicted.
"There were suggestions people would be reluctant to live in areas which were subject to that sort of extreme climate outcome in the future," Dr Wilson said.
"History does show us that people are very resilient, they are very attached to their neighbourhoods and governments take action to mitigate against this happening again.
"I think a two per cent fall over the quarter is a very good result considering that it will be the main hit that we get from the floods."
Dr Wilson said Brisbane had suffered from a buyer hesitancy in recent years, reflective of an underperforming Queensland economy reeling from the high dollar affecting tourism and some of the state's mines remaining inoperable.
He said the city's house prices had been going through an adjustment period following the city's strong price growth prior to the global financial crisis and the floods may have put off a stabilisation in prices.
Brisbane Times and SMH
Waterfront Newstead
RESIDENTS of Newstead and surrounding suburbs could be in for 12 years of construction and added traffic as a new waterfront development takes shape.
Two apartment blocks have been completed at Waterfront Newstead, but a spokesperson for development company Mirvac said the finish date could be more than a decade away, depending on market demand.
Of the 99 apartments already constructed, 54 have been sold, with the penthouse selling at a Brisbane property industry record of $14.25million.