Friday, August 9, 2013
Buyers Retuning to the Market?
Investors appear to be returning to the market, due to lower interest rates. Owner-occuppiers are looking for larger apartments, and there are not many high quality larger apartments available for sale (partly because developers have been focusing on building very small apartments that have been sold to foreign investors). With interest rates low, many investors who currently own property are not selling, because these properties are now becoming positively geared -- why sell, unless the price offered is high? There is a shortage of apartments for sale for owner-occuppiers; and a shortage of existing apartments (compared with off-the-plan apartments) for investors.
Towers like Infinity, aimed at Chinese investors, do not provide what local Brisbane buyers want in my view.
Photo of Infinity, under construction on the right. Evolution Apartments is the smaller building in the middle of the photo. The Supreme Court building is on the right in the foreground; the Magistrates Court building on the left in the foreground. 400 George St is the taller building on the left.
Sunday, July 21, 2013
Recent Apartment Sales in Downtown Brisbane
Apt 171, 1 bed, 1 bath, no car - $310,000
Grosvenor
Apt 107 - $1.3M
Skyline
Apt 61, 3 bed, 2 bath, 1 car - $715,000
Apt 94, 3 bed, 2 bath, 1 car - $790,000
Apt 363, 2 bed, 2 bath, 1 car - $587,500
Charlotte Towers
Apt 3206, 1 bed, 1 bath, no car - $335,000
Apt 3508, 1 bed, 1 bath, no car - $317,000
Apt 4009, 1, bed, 1 bath, no car - $347,000
Metro 21
Apt 3001, 2 bed, 2 bath - $553,500
Quay West
Apt 129, 3 bed, 3 car - $1M
Riverplace
Apt 304, 3 bed, 2 bath, 1 car - $1M
Apt 272, 2 bed, 2 bath, 1 car - $675,000
2 bed, 2 bath - $527,000
Festival Towers
2 bed, 2 bath, 1 car - $457,500
Apt 1906, 1 bed, 1 bath, 1 car - $309,000
Admiralty Quays
Apt 78, 3 bed, 2 bath, 2 car - $920,000
Apt 76, 1 bed, 1 bath, 1 car - $550,000
Apt 46, 2 bed, 2 bath, 1 car - $780,000
Tuesday, February 26, 2013
Recent Brisbane City Apartment Sales
- Evolution Apartments, 18 Tank Street, Apt 225, 2 bedrooms, 2 bathrooms, sold for $500,000 (previous owner had paid $762,000 off-the-plan from Citimark)
- Skyline Apartments, 30 Macrossan Street, Apt 333, sold for $750,000 (previous owner had paid $810,000 off-the-plan)
- Midtown Apartments, 127 Charlotte Street, Apt 1203, sold by developer for $432,500
- Aurora, 420 Queen Street, Apt 376, 2 bedrooms, 2 bathrooms, 107 sqm, sold for $585,000
- Riverplace, 82 Boundary Street, Apt 275, 1 bedroom plus study, sold for $481,000 (previous owner had paid $525,000 in 2008).
Sunday, September 30, 2012
Meriton Infinity - Under Construction
Monday, March 26, 2012
Evolution Sales - Massive Losses for Investors
- Apt 245, sold off the plan in 2006 for $767,500. Resold in November 2011 fully furnished for $605,000.
- Apt 184, sold off the plan in 2006 for $660,500. Resold in November 2011 for $460,000.
- Apt 153, sold off the plan in 2009 for $570,000. Resold in October 2011 for $410,000.
- Apt 276, sold off the plan in 2006 for $701,000. Resold in September 2011 for $620,000.
- Apt 163, sold off the plan in 2007 for $649,500. Resold in September 2011 for $435,000.
- Apt 194 sold off the plan in 2006 for $512,720. It is currently listed for sale for $510,000. Based on the above, it will be lucky to be sold for above $460,000.
Friday, December 24, 2010
2010 Brisbane Apartment Awards
- Mirvac's Tennyson Reach
- Niecon's The Oracle at Broadbeach
- Raptis' The Hilton Surfers Paradise
- Evolution.
Sunday, October 31, 2010
Risks With Short Term Rental Buildings
When I am looking to buy an apartment in Brisbane, I look at Trip Advisor to see if there are reviews about the apartment building and the onsite manager. As a general rule, if the apartment building is listed with TripAdvisor, I will only buy if I am seeking a non-residental investment. There is limited resale opportunities for short term non-residential buildings.
Example Reviews:
- 212 Margaret
- Casino Towers
- Aurora
- Charlotte Towers
- RiverCity
- M on Mary
- Evolution
- Felix
- Festival Towers
- Skyline
Many reviews highlight the problems -- these buildings were designed for residential apartment living, not as hotels. People ask for adjoining rooms, and don't get them (of course). Items from rooms are stolen. Linen trolleys and food trays are left in hallways, as there are no service cupboards or service rooms for hotel staff. Furniture breaks, as the apartments were furnished for residents, not using hotel quality furniture. No minibars. Parking problems. I wonder what the owners of these apartments think about their real estate agents who are managing their investment -- a real estate agent pretending to be a hotel company.
I love this recent review for Evolution: "What a disaster. We never new accomadation could be so foul .. so many light bulbs broken, Filthy carpets, No drinking glasses (even when you ring & ask a certain staff member who couldn't have been any more passive agressive they still don't come) We changed rooms which was even worse, kitchen tap fell off in our hand, no shower door as it had broken off, huge rip in the lounge, even filthier carpets, rug all ripped, more light bulbs out, TV not tuned so most of the channels hissed at you a lot like most of the staff.. broken light shades, blind pullies broken. When we checked in they held on our credit card $200 for breakages.. there was nothing left TO BREAK!! This place is not rateable unless there is a minus."
Why would anyone want to buy in this building?
Sunday, July 25, 2010
North Quay





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.
Saturday, January 23, 2010
Will Brisbane Apartment Prices Rise or Fall in 2010?
I do not know! The messages are mixed at present. My predication is that some buildings will have average price growth, while other buildings (e.g., those with a large number and % of investor apartments -- e.g. Aurora and Charlotte Towers -- or those that were aggressively sold off the plan during the boom -- e.g. Evolution) will have no price growth or price decreases.
- increased migration to Brisbane
- mining sector likely to remain strong
- few large new apartment buildings being completed in the next 18 months
- net returns of 5% or better for some apartments
- likely interest rate increases in 2010
- rents unlikely to increase significantly in 2010, and may even decrease for some buildings/areas
- lack of first home buyers, many of whom purchase apartments
- investors only purchasing when the price is right or the seller is desperate
- difficulties for investors getting loans
- banks are requiring a higher % of down payment, so investors have less to spend
- valuations are more conservative, making it harder for investors to obtain highly geared loans
- difficulties redrawing against existing loans to invest, because property prices have not increased significantly in recent times
- foreign students loosing interest in Brisbane or Australia -- as they make up a significant percentage of renters
- wages stagnate -- affordability (% of wages spent on property) already stretched, so unless wages increase, it is unlikely that property prices will increase significantly
- council rates increasing
- body corporate levies are already high (over $6,000 a year in some buildings), and may increase more this year
- federal government limiting or removing ability to negatively gear or claim depreciation
- unemployment increases
Sunday, January 17, 2010
Infinity
Sunday, December 28, 2008
Predictions for 2009
At the beginning of 2008, I made a number of predictions in this post.
The predictions were mostly wrong!
The Brisbane apartment market did not grow significantly in 2008, and took a minor step backwards. At present, there are fewer buyers and more sellers. For some off-the-plan developments, no sales have been made for months. Second tier buildings and buildings with more than 200 apartments have not done well.
So I will be careful with my predictions for 2009:
I still believe that quality inner city apartments in Brisbane will do well in 2009. Provided there is no significant unemployment and provided that foreign students continue to come to Brisbane, vacancy rates will remain low.
In 2008, only four new inner city apartment buildings completed and settled. These were Evolution (over priced), M on Mary (which has mostly 1 bedroom apartments, and the developer is now in liquidation), Flow at West End and Iceworks at Paddington. In 2009, no new large inner city apartments will settle. Groundwork has started on Mertion's Soleil and the Trilogy Tower project, but these will no complete until 2012. Mirvac's Tennyson Reach project will settle two buildings in 2009, and FKP's SL8 at West End will also probably complete in 2009. So not much new stock.
So here are some predictions for 2009:
• The price of a good quality 2 bedroom 2 bathroom apartment in Brisbane, with views, will range from $780,000 to $850,000.
• The price of an average quality 2 bedroom 2 bathroom apartment in Brisbane will struggle to pass $550,000.
• Average rent for an unfurnished 2 bedroom apartment will rise to $600 per week.
• Investors will return to the market, as interest rates are falling and rents are rising.
• There will be more action in the inner suburbs than in the city. Prices for quality apartments in areas such as Indooroopilly and Toowong (where there is a train station and regional shopping, close to education facilities) will boom. By the end on 2008, it will be hard to find a good quality 2 bedroom apartment in these areas for less than $600,000.
• The Gold Coast apartment market will tank even more. The Sunshine Coast apartment market will remain steady.
Saturday, October 11, 2008
Future Brisbane Apartment Developments
There is likely to be a shortage of apartments in Brisbane in the near future. (This statement assumes that that is not massive unemployment in Brisbane.) There are few developments under construction, and so very little new stock will come onto the market in the next three years. What new stock remains unsold is either overpriced or poor quality.
Downtown Apartments
- M on Mary - completed - mostly poor quality 1 bedroom apartments, mostly unsold. Developer has ceased sales campaign and is running this building as short term accommodation
- Evolution - completed - about 20 apartments unsold - small and overpriced
- Skyline - completed - about 20 apartments unsold - building surrounded by other buildings, and generally overpriced
- Aurora - completed
- Empire Square - cancelled
- Trilogy Tower - status uncertain - in presales, with planned completion in 2012 - both hotel rooms and expensive apartments
- Vision - status uncertain - in presales, with completion not before 2012
- Soleil Tower - soon to start presales - 403 apartments, with completion about 2011
- French Quarter - early days, no planning approval
- Flow (West End) - completed - about 5 remain unsold, will negotiate on price to sell
- Koko (West End) - completed - about 5 remain unsold, will negotiate on price to sell
- Tempo (West End) - completed - about 5 remain unsold, will negotiate on price to sell
- IceWorks (Paddington) - almost complete - about 6 apartments remain unsold
- SL8 (West End) - under construction, with completion expected in April 2009, poor location
- Waters Edge (West End) - off-the-plan selling, overpriced and selling poorly, completion in 2010
- Ciana (Indooroopilly) - almost complete - about 25 out of 130 apartments remain unsold - good value
- Tennyson Reach - 2 buildings nearing completion, 1 building not far behind, 3 more buildings planned
- Newstead Waterfront - 2 buildings selling well off-the-plan
- The Mill at Albion - almost sold out, relatively expensive
- El Dorado Village - to be launched to the marketing in October 2008, completion likely in 2011
- Milton Union - received planning approval
Monday, May 19, 2008
Brisbane Project Sales - First Quarter 2008
Of these six buildings, there were only 20 reported sales in the first quarter 2008.
Aurora - 2 sold, none remaining for sale
Evolution - 3 sold, 23 available for sale
Pinnacle - 1 sold, 12 available for sale
Skyline - 2 sold, 16 available for sale
The Macrossan - 1 sold, 13 available for sale
Vision - 11 sold, more than 100 available for sale
Empire Square - about 100 available for sale
Trilogy - 192 hotel rooms and 109 Skyhomes available for sale
Totals - 20 sold, about 592 available for sale.
By way of reference, there are just under 7000 completed apartments in the Brisbane CBD. In 2007, there were 1229 apartment sales in the Brisbane CBD.
Example Rents in Brisbane City
1 bed, no car - M on Mary - $500 per week
2 bed, 2 bath, 1 car - Evolution - $900 per week
2 bed, 2 bath, 1 car - Skyline - $1,300 per week
3 bed, 2 bath, 1 car - Skyline - $900 per week
3 bed, 2 bath, 3 cars - Riparian - $2200 per week
Other Buildings - Furnished
2 bed, 2 bath, 1 car - Admiralty Towers - $680 per week
2 bed, 2 bath, 1 car - Saville South Bank - $740 per week
New Buildings - Unfurnished
2 bed, 1 bath, 1 car - Evolution - $650 per week
2 bed, 2 bath, no car - Aurora - $660 per week
3 bed, 2 bath, 2 car - Skyline - $1500 per week
3 bed, 2 bath, 3 car - Riparian - $1850 per week
Other Buildings - Unfurnished
2 bed, 2 bath, 1 car - Admiralty Two - $580 per week
2 bed, 3 bath, 1 car - Metro 21 - $575 per week
Sunday, May 4, 2008
Photos of Brisbane
http://picasaweb.google.com/maruglenn/LessonsFromBrisbane
http://picasaweb.google.com/ronstuff17/CityPics
http://picasaweb.google.com/gscottie/Brisbane07
http://picasaweb.google.com/LaurieDryburgh/BrisbaneQueenslandAustraliaMarch2007Photos
http://picasaweb.google.com/kraustin/AroundBrisbane
http://picasaweb.google.com/jwknuth/DowntownBrisbaneAustralia
http://picasaweb.google.com/ehsan.ketabi/BrisbaneAustralia
http://picasaweb.google.com/tbraisby/BrisbaneToday
http://picasaweb.google.com/wandering.outdoors/Brisbane
Riparian
http://picasaweb.google.com/fbatch/RiparianPlaza
http://picasaweb.google.com/wwwinno/BrisbaneCitycatCruise
Evolution
http://picasaweb.google.com/tbraisby/EvolutionPhotoS
Ciana
http://picasaweb.google.com/tbraisby/CianaApartments12thOctober
http://picasaweb.google.com/tbraisby/CianaApartments10thOctober
The Establishment
http://picasaweb.google.com/tbraisby/TheEstablishment
Monday, April 21, 2008
Evolution Reviews
The Evolution Apartment building at North Quay in Brisbane is now complete and people have moved in.
Unfortunately, it is being run as a short term and holiday "hotel". You can book at wotif.com and stay the night. Or you can spend more than $2 million and buy the penthouse and share your facilities with overnight visitors.
I visited last week, and these are my opinions.
General:
The views from some of the apartments are magnificent, especially from the higher floors and those looking down the river in the South Eastern direction.
The quality of finishes is generally good. Ducted air-conditioning, good kitchens, floor-to-ceiling tiles in bathrooms, plenty of cupboard space in most apartments, good security, nice windows and sliding doors.
Two elevators, both spacious.
I didn't like the car parking -- the driveways were too narrow.
The pool area on level 6 is relatively nice. A big outdoor space, with bbq and good light. An indoor kitchen nearby. Also, a TV room. The gym was very small. When I visited, the pool area (but not the pool itself) was getting a lot of use. A large group having a bbq and another in the TV room.
One feature that the developer highlighted in advertising was the communal sky lounge on level 36. It has a quality kitchen and pool table, plus small TV and lounge area. It is not a large area overall. But, if you wish to use it, you have to pay a $200 fee to the on site manager!
I did not like the noise from the South East Freeway, which could be heard in all apartments that have river views. It is one of the busiest roads in Brisbane, and is directly below the building (between the building and the river). This is a major drawback. Some apartments had double sliding doors, which cut down the noise when closed. Sitting on the balcony was very noisy.
Type A Apartment Two bed, two bath. (84 sqm internal, plus two balconies, with total space of 102 sqm)
Overall, this apartment had a good feel. It seemed larger than 84 sqm internal. The main balcony was a good size - it looks one direction along the South Bank river reach and the other direction along the Coronation Drive river reach.
The apartment has a westerly aspect, which is a negative. The living room / dining room is, however, small. One couch was pushed up against the kitchen bench, and the dining table pushed up against the wall.
There is a large entry and hallway, that includes a good study desk.
The bedrooms are relatively separated. The main bedroom is a good size with a large ensuite. However, it looks west. The second bedroom gets little light, as its aspect is blocked by the main bedroom.
Warning: On most floors, this apartment is blocked by the office building next door -- which is right up along side. This has a major negative impact on the second bedroom, and a negative aspect on the main bedroom. The second bedroom in the apartment that I saw had very minimal natural light and no view at all.
Type B Apartment Two bed, two bath (76 sqm internal and 10 sqm external - total of 86 sqm)
Not a large apartment, and about 5 sqm is hallway. Small kitchen. Small balcony. Bedrooms on each side of living room, and directly off living room (so less privacy). This apartment had a cramped feeling. So small that there was no room for a bath -- two showers but no bath. The views were good, South East down the South Bank river reach. It is best to be above level 15 or so, otherwise the Federal Court on the other side of the road may impact views, but not dramatically. Main bedroom was a good size with good views from large windows. Overall, too tiny.
B type apartment on 11th floor, 115, for sale at $760,000. This is way too expensive in my opinion for this apartment.
Type C Apartment Two bed, one bath (64 sqm internally plus 13 sqm balcony = total of 77 sqm)
There are two types of C type apartments, next door to each other. One is the mirror image of the other.
Surprisingly, I liked this apartment the best.
It is very small. There is no ensuite. There is a shower but no bath. The main bedroom is behind the 2nd bedroom and so has a small window and little light.
However, as soon as you walk in, you see the view. It looks South East down the South Bank river reach. It is a surprisingly good view from higher floors. However, you must be above level 15 or so, otherwise the Federal Court on the other side of the road will impact views dramatically. The balcony is a good shape and size. Not impacted by the Western sun.
Keep in mind that as the office building under construction at 402 George Street grows, these apartments will loose a lot of their city views. But this will not impact the river aspect.
C type apartment on 18th floor, 183, for sale at $650,000.
Type D Apartment One bed, one bath (53 sqm internal and 9 balcony - 62 sqm total)
Very small. Has Western aspect. No river views. Views mostly of Roma Street railway goods yards. No carpark included. Views will be impacted by proposed Meriton Tower on Herschel Street and office building being constructed on George Street. Kitchen is just a wall of cupboards. This apartment has no redeeming features at all.
D type apartment on 11th floor, 111, for sale at $414,000
There are a number of "sub-penthouse apartments" for sale as well. For example, apartment 344 on level 33 is a 2 floor apartment, 2 bedrooms upstairs and living kitchen downstairs. 144 sqm in total, so it is a good size, with a good aspect. However, the balcony is glassed in, so has a strange feeling. But the price -- $1,700,000 for a 2 bedroom apartment !!!
More details on the "sub-penthouse" apartments here.
Overall, this building has some nice apartments and some horrid apartments. It is ok for a short stay, for example, if you had to live here for 3 months. But I would not want to live any longer. The apartments with the good layouts and aspects are too small, and the larger apartments on higher floors are too too expensive. Many apartments have negatives -- too small, western aspect, built up against another building or poor layout. Over time, I suspect that this building will not live up to its promises and will become a place for students or short term stays only. I will avoid Evolution.
Prior posts on Evolution are here.Saturday, March 15, 2008
Evolution Discounted
Received in the email today:
"... the developer is offering a limited offer to all purchasers of 2bed, 2bath, 1car and 2bed, 1bath, 1car apartments in Evolution as a part of our Grand Opening.
- 1 year, 5% rental guarantee
- $50,000 rebate to purchaser at settlement
- 1 year, 6% rental guarantee
- $30,000 rebate to purchaser at settlement
I guess this means that Evolution was overpriced or is not selling well or the developer is worried about a market downturn.
Saturday, February 2, 2008
Brisbane Construction
As reported on SkyScraperLife (including projected completion date and name of builder):
Under Construction:
Centary Square [108 Wickham St] -- Feb-08 <<>>
Evolution - [18 Tank St] -- due Apr-08 <<>>
Green Square [503 St. Paul’s Tce] -- Jun-08 <<>>
Tribune [199 Grey St] -- Jun-08 <<>>
WBC Annex [199 George St] -- Jun-08 <<>>
Devine Office [333 Ann St] -- Sep-08 <<>>
Wesly Mission [110 Ann St] -- Sep-08 << ???????? >>
545 Queen St [545 Queen St] -- Nov-08 <<>>
Petrie Barracks [Given Tce] -- Nov-08 <<>>
Central Plaza 3 [80 Eagle St] -- Dec-08 <<>>
NAB Annex [308 Queen St] -- Dec-08 <<>>
53 Albert St [53 Albert St] -- Mar-09 <<>>
Brisbane Central [140 Elizabeth St] -- Mar-09 <<>>
Matisee tower [110 Mary St] -- Mar-09 <<>>
NorthBridge [31 Tank St] -- Mar-09 <<>>
AM60 [42 Albert St] -- Mar-09 <<>>
The Macrossan [475 Adelaide St] -- Jun-09 <<>>
Suncorp Tower [179 Turbot St] -- Jun-09 <<>>
Icon Place [270 Adelaide St] -- Jun-09 <<>>
Sky Campus [400 George St] -- Dec-09 <<>>
NorthBank Plaza [275 George] -- Dec-09 <<>>
Vision [131 Mary St] -- Jun 2012 <<>>
Pending Start: (real Projects with construction contract, due to start soon)
Trilogy [480 Queen] -- <<>>
111 Eagle St [111 Eagle St] -- <<>>
Union [Milton Station 150 Milton Rd] -- <<>>
Westminster Hall [145 Ann St] -- <<>>
Southpoint [Collins Place] -- <<>>
Meriton [495 Adelaide St] -- <<>>
550 Queen St [550 Queen St] -- <<>>
Not all of these are apartments. Will these block views of existing apartments?
Monday, January 14, 2008
Two Bedroom Apartments Above $800,000 in Brisbane City
- Parklands, Apt 6042, $875,000
- Felix, Apt 377, $950,000
- Quay West, Apt 1901, $850,000
- Quay West, Apt 2006, $830,000
Some listings (all two bedrooms)
- Casino Tower Penthouse, $1,300,000
- Riparian Plaza, $2,200,000
- Quay West, Apartment 606, $800,000
- Evolution, Apartment 52 (level 5) (77sqm internal), $958,000
- Evolution, Apartment 166 (level 16) (89sqm internal), $868,500
- Evolution sub penthouse, Apartment 323, $1,640,000
- Evolution, Apartment 344, $1,740,000
- Evolution, $850,000
- Admiralty Towers Two, $815,000
- Admiralty Quays, $880,000
- Parklands, Pinnacle, 9th floor, $1,050,000
- Parklands, Pinnacle, 6th floor, $975,000
- Quest River Park Central, 29th floor, $1,400,000
- Grosvenor on Edward, $1,100,000