11 posts tagged “212 margaret”

Oaks Hotels & Resorts Ltd net profit was down 33.3% to $9.8 million in the year to June 30, 2009, on revenue up 11.5% to $120.9 million.

• 38 properties under management
• 4,788 serviced rooms under management (12% increase over last FY)
• occupancy rate down 2.11% to 84.38 for CBD properties
• average room rate $151 for CBD properties
• new central reservations team -- I wonder what owners are being charged for this?

I spoke with some Oaks managers recently.  They were not keen to take on new apartments into their rental pool in Brisbane, and the rent that they offered/guaranteed is not as great as last year.  So if you invest in an Oaks building, take care, because as time goes on, you may not get as good rent as you would like.

• Admiralty Quays, Apt 164:  4 bedrooms, 3 bathrooms, 2 cars - $2,200,000
• Admiralty Quays, Apt 90:  1 bedroom, 1 bathroom, 1 car - $580,000
• 212 Margaret Street, Apt 47, 2 bed, 1 bath, 1 car - $465,000
• Willahra Towers, Apt 26, 2 bed, 2 bath, 1 car (76m2 internal, 36m2 external. Total area 112m2; white-goods included) - $435,000
  
• Parklands 3, Apt 4073: 1 bed, 1 bath, 1 car - $365,000
• Charlotte Towers, Apt 2305: 1 bed, 1 bath, 1 car - $354,000
• Casino Towers, Apt 3304: 1 bed, 1 bath, 1 car - $339,998
• River City, Apt 1005: 1 bedroom, no car, view straight into neighbouring building - $305,000
  

If you are thinking of buying or renting in an apartment managed by Oaks, then you should read the online reviews written by people staying in the building, who are short stay "hotel" guests. The problem with Oaks buildings is that they were built as cheap apartment buildings (not as hotels) but a large number of rooms are rented out (often for a night at a time, via Wotif) to people who think they are staying in a hotel. Thus, both residents and "hotel" guests are often not happy.

Example Reviews:
Aurora
212 Margaret
Festival Towers
Casino Towers
Charlotte Towers
Felix
Lexicon
River City

Similar issues for M on Mary.

Oaks has sold the management rights for 212 Margaret Street and Lexicon Apartments.  The sale was to a newly created company partly owned by the brother of the CEO.  I feel sorry for owners of any apartments that Oaks manages.  You can read reports in previous posts about how Oaks is turning apartment buildings into short term stay buildings.  I feel even more sorry for the owners that are now dealing with this new entity. 
At the recent Oaks AGM, there were reports that angry Aurora owners questioned the CEO of Oaks, and that he could not provide sensible answers.
See ASX Release and follow-up.

"Queensland police discovered a clandestine drug lab when they raided an apartment in central Brisbane yesterday.

A police spokesman said they have charged three people over the lab found in a high-rise apartment building on Margaret Street about 2pm yesterday.  A 34-year-old woman from Windsor, a 37-year-old man from Marsden and a 34-year-old man from Brighton have been charged with a count each of producing a dangerous drug and all three will face the Brisbane Magistrates court on Monday."  Brisbane Times, January 18, 2008

A lot of people seem to think that it is the end of the world as far as property investment is concerned.  These are my thoughts.

Facts:

• Interest rates are going down
• There is low unemployment in Queensland
  
• There are few vacant rental properties, and rents are still increasing in Brisbane
  
• According to REIQ and RP Data, medium prices have fallen less than 3% in the past 6 months, and over the past year prices have still increased
  
• Property is still selling.  For example, a three bedroom apartment is Admiralty One sold in less than a week.  At auctions in Mooloolaba this weekend, which has been a tough market, there were 2 two bedroom apartments that had bids of more than $1 million:  Oceans 503 had a highest bid of $1,200,000; and Sirocco 604 had a highest bid of $1M.
• Banks are still lending money, but they have tighter lending requirements
• For most of Brisbane, there are very few delinquencies. 
  
• In outlying areas (such as Forest Lakes and Springfield) and low quality bulk highrise marketed to investors (e.g., Charlotte Towers, and other recent Devine buildings), there are distressed sellers who are selling for less than they paid.
  

Assumptions:

• Matusik, who is a very  bullish property consultant, has the following assumptions in most of his presentations, but I am not sure how many of them will turn out to be correct (and some from his September 2008 presentation are already wrong):
• interest rates to drop by 0.5% in fiscal 2009
• $A remains high – above 85 US cents
• migration to oz remains high US economy has a mild recession, mild recovery in 2009
• demand for our resources continues
• share market settles down unemployment remains below 5% and wages growth remains constrained

• Property in inner Brisbane will take longer to sell than over the past 3 years (e.g., time on market will return to a more normal period of time, from 15 days to 30 or 40 days).
• Prices for poor quality apartments will fall by 25%
• Prices for apartments that have their views destroyed (e.g., Charlotte Towers, 212 Margaret, River City, and some in South Brisbane) will fall by 25%
• Prices for apartments without carparks will fall
• Some new apartments for off-the-plan developments) are priced too high for what they are, and will have difficulties selling in the short term (e.g. Waters Edge, Empire Square, Vision)
• Anything priced over $6,000 per sqm will struggle to sell, unless it is really special
• Off the plan developments will not sell well until completion -- in uncertain times, people do not want to make bets on the future, especially where the product being sold is intangible -- people want to touch and feel in uncertain times.
  
• Really good stuff will sell, and will not reduce in price by more than 5% (if at all)
• In February 2009, the market will pick up, but will not have growth of more than 10% per year for at least two years
• Due to lack of building today, things will get better for investors in good locations in the short term
• This year, my property portfolio looks better than may stock portfolio.
  

If you are buying or renting or doing a short stay in an Oaks apartment, make sure there is no construction nearby.  This morning, walking down Albert Street, I past 3 construction sites, all next to apartments.  It was before 8am, and there were jackhammers that I could hear more than a block away from Charlotte Towers.

Oaks Charlotte Towers

Charlotte

Oaks 212 Margaret Street

212Margaret

Oaks River City

RiverCity

** Updated post click here **

It is becoming harder to find a good apartment to rent in Brisbane. Not only are rents increasing, but there are few new buildings opening over the next few years and a number of existing buildings are being turned into short stay "hotels".

Good apartments are often snapped up quickly. Also, onsite managers control the majority of apartments for rent in most buildings, and don't often advertise on the usual property websites (as they don't need to do so). Some have their own website. Onsite managers may have a relationship with executive relocation services that are given preference.

You have to find out how each manager advertises his/her vacancy.

If you are looking for a place to rent a good inner city apartment, I believe that this is one of the better sites to look at: http://www.seqrents.com.au

This website has a list of most city apartment buildings, with useful information and links about them. Also, try this customized search engine.

You want to avoid any buildings that are primarily short stay buildings (unless of course you want to stay for 2 nights to 2 months.) So avoid buildings managed by Oaks, as they focus on short term hotel style rentals. Look here if you want a short stay apartment in Brisbane.

There are some cross-over buildings, that are officially hotels but that have apartments on higher floors. Usually, the apartments in these buildings have the option of receiving hotel services. Two examples are Quay West and Saville South Bank, which are good places to live.

Look around -- the rents for some of the newer buildings are much higher, and the apartments are smaller, than in buildings that are five to ten years old.

Some places to look:

In the downtown area:

Admiralty One, is good value: http://www.seqrents.com.au/admiralty/

Admiralty Quays and Admiralty Two are also good quality. At present, I think some of the best value apartments for rent are in Admiralty Two.

Admiralty One (also called Admiralty Towers), Admiralty Two and Admiralty Quays were all developed by the same developer and are direct river front, an easy walk to the downtown. They all have one or more swimming pools.

Next door to Admiralty Quays on the river in the city is River Place, that is clearly not as good quality (it is a Devine built building), but is likely to have availability as this is a large complex. Careful of Storey Bridge noise. Great views. Recently taken over by Mint Apartments, which is doing short stay and hotel rentals.

For an inner city downtown building, Metro 21 is one of the better quality buildings. It has only 4 apartments per floor -- and tries to be more upmarket so is better than most buildings that aim at students -- it seems to have better availability, and some of the two bedroom apartments have three bathrooms. It does not do short stay. The balconies are large: http://www.realestate.com.au/realestate/agent/metro+21+brisbane/mlibri
and http://www.metro21apartments.com.au/

On Alice Street in the city, if you can get an apartment in Quay West, that is fantastic, as it has park and river views. Half of this building is a hotel managed by Mirvac. All apartments are privately owned. You want to get above level 7.

It is also worth trying some of the off-site agents:

• Harcourt
• Ray White CBD
• Ray White Projects
• Blocksidge
  

In my opinion, some of the buildings to avoid (see prior posts) are

• 212 Margaret
• Festival Towers
• Charlotte Towers
  
• Aurora
• River City
• Felix
• Casino Towers
  

I recommend Arbour on Grey at SouthBank: http://arbour.com.au/cms/welcome.html

Also, Saville at SouthBank is one of the nicest buildings if you get a river facing apartment: http://www.seqrents.com.au/saville/index.htm

I know people at LeftBank at West End who like living there, but it is a little bit far to walk to any shops -- it is in an industrial area: http://www.seqrents.com.au/leftbank/

In the back of Toowong, Encore is a relatively nice complex, with good pricing (but currently construction next door, so take care of which apartment). http://www.seqrents.com.au/encore/

St Lucia is harder to find quality -- the quality is there, it is just that there are few onsite managers and it is harder work to find good available apartments.

In Indooroopilly, Riva is the only quality building -- again, some noise in some apartments due to nearby construction. Some have river views. http://www.seqrents.com.au/riva/

In my opinion, I would avoid buying, renting or staying in Oaks 212 Margaret Street.  I feel sorry for the owners of apartments in this building.  On the right side, Vision is being constructed.

On the left side, an office building -- right up against 212 Margaret.

Noise, trucks and lost views.  I hope that the foundations are good!

Oaks 212 Margaret

212Margaret

212 Margaret

Margaret Vision

As you can see from this floor plan, the second bedroom in each 2 bed apartment and the main bedroom in each B type apartment will be impacted in a major way by all this construction.  (I also think that an office building is going up at the rear, on Mary Street, so the A type and B type apartments will have issues looking NW too.)

Floor Plan

Here is an apartment for sale in Oaks 212 Margaret Street.  It has 2 bedrooms.  It went to auction recently, and the highest bidder was $500,000.  Now listed at $520,000.  You can see the construction in the photos, and also in these photos.  There is no hiding it!

This week (ending 8 March), auction results for apartments in Brisbane were not good. 

At a midweek Ray White auction, there was good attendance.  But mostly people watching the market.  There were few active buyers.

Results of the midweek Ray White Auction

Charlotte Towers (128 Charlotte Street, Brisbane)

Apartment 3801 - Level 38 - 1 bed plus study - 57 sqm - no car park - sold at auction for $320,000
Apartment 3105 - Level 31 -  1 bed with big storage room - 60 sqm - no car park - not sold
Apartment 2410 - Level 24 - 1 bed with large shower - 61 sqm - no car park - sold at auction for $310,000

212 Margaret Street
Apartment 1504 - not sold

River Park Central (120 Mary Street)
Apartment 602 - 2 bed, 2 bath, 1 car - 85 sqm - not sold at auction - now listed for $420,000

Saturday Auction (Brisbane clearance rates were a low 44%; national clearance rates

Elysees (15 Walsh Street, Milton)
Apt 33, Penthouse - 3 bed, 2 bath, 2 car - no bids at auction - now listed for $969,000

15 February  Ray White Auction

Tempo (West End)
75/20 Donkin Street, 3 bed, 2 bath, 2 car - not sold - vendor bid of $800,000 - still listed for sale.