57 posts tagged “apartment”

As previously reported on this blog, a number of off-the-plan purchasers at Mirvac's Tennyson Reach failed to settle, and are being sued by Mirvac.  Mirvac is now selling these apartments by auction.

"A very frenetic listing week has culminated with the official listing of nine riverfront apartments (under instructions from Mirvac Queensland where the buyers have not settled).  These apartments are to be auctioned in a line on Saturday the 14th November at 12 noon.  Our clear instructions are that these quality riverfront apartments WILL BE SOLD.

Elsewhere, buyer activity in the middle and upper ends of the market continues to increase as we move into one of the busiest sales times of the year.

"The Redcliffe peninsula was a stellar performer through the 2003 boom. The pointy end of Brisbane’s northern beaches appeared to be an undiscovered wealth of natural riches that went from obscurity to belle of the ball. Council was gung-ho in getting plenty of capital invested in the area and, on the whole, it has awoken this sleepy centre. The downside is the current and continuing oversupply of new units in the area, particularly in the high rise sector. Local government took on a flexible approach to development submissions where many projects were assessed on an individual basis with such items as public space contributions affecting the allowable density of a site. Much of these large scale attached unit developments also take advantage of water views and a café lifestyle that drives demand in so many other centres. The area saw a rush of investors from all around the country eager to take advantage of this now revealed gem. Unfortunately, oversupply is knocking the wind out of the areas sails (and its sales). Capital growth for new unit buyers has been a touch subdued and it looks to continue in this disappointing vein for a little while yet.

A surprise disappointment has been the multiple tenancy properties in greater Brissy. Multi room student complexes, genuine purpose-built flats buildings and boarding houses haven’t sparked as expected over the past year. The income sure looks good but its fair to say that some steam has escaped the rental market and future income potential is a touch more tarnished than it was 12 months ago. These properties probably have some good potential in the long term as long as you stick with the fundamentals - good location and a ready tenant base.

Infrastructure upgrades are another area that has lowered buyer expectations in locations that deserve a little more respect. Kedron is a good case in point. Almost overnight the Northern Busway turned sections of the suburb into a dust laden construction site – not the thing you necessarily want to wake to each day. The works have caused quite a bit of inconvenience and put off a few purchasers. The upside for those willing to take the plunge and grin and bear it is that, if finished right, these areas will benefit from improved transport access and useable community infrastructure."

HTW October Report

If you own an apartment, and wish to rent it, there is often a choice between using the onsite building manager (who will often have a real estate agent license) or an offsite real estate agent.  There are positives and negatives of both.  This is the view of Chris Hinds, an offsite agent, as set out in a recent mailing from him:

"In this day and age, the majority of On-site management offices can provide generic Property Management services. Inappropriately trained staff are usually placed within minimal staffed offices and a heavy reliance is placed on technology and computers to deliver the required service. The business owner is normally no-where to be seen whilst the management of your property is generally handled by unaccountable staff that do not even own an investment property themselves. Sound familiar?  Common concerns that generally arise from the above are…

• The Caretaker/Building Manager condoning backpackers or short term letting.
• Poor or unsupervised tenant selection.
• Overcrowding and increased wear and tear contributed by the excess of students, back packers & short-term lets within the building
• Is the most appropriate amount of rent charged to the tenant based on rental market conditions.
• Levies and bills attended to and paid on time.
• Entry and Exit Condition reports completed and done so thoroughly.
• Caretakers/Building Managers wanting an extension could signify their desire to sell out!
• Watch out for those Hotel operators, they are well known to reduce the value of your property."

"But real estate agent says pet-friendly apartment buildings are worth more than those that prohibit pets. "Any small apartment block that doesn't allow pets is crazy," Leonarder Collins says. "Owners are just doing themselves out of money."

Domain

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Usually, it is relatively easy to determine a value or price range for an apartment in a high rise building.  This is because there are often a number of sales a year, and so if you can find an apartment with a similar floor plan that has sold (e.g., an apartment in the same line), that gives you a good starting point.  Then, you can look at the difference in floor levels, and determine how the value is different.  

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A classic of this genre was excreted recently by the UDIA. The institute called it "an unprecedented overview" of the home-building industry in Queensland. It warned of "massive job losses" as well as an undersupply of housing and lost revenue. It blamed all the usual suspects: restricted land supply, excessive infrastructure charges and inefficient planning systems.

The UDIA called it "an alarming snapshot". I found it alarming too -- I was alarmed at how shallow and shameless this mission was as an exercise in self-serving propaganda.

It was strangely at odds with other reports from more objective sources. Colliers International residential managing director Grant Dearlove says in a recent report: "Over the past 18 months developers had moved away from apartments but they are coming back big time. Right across the country our residential directors have been inundated with requests from developers to work up new residential offerings."

Source:  The Australian

"The Sydney market didn't grow at the same rate as other markets during the economic boom. "People simply could not afford to bid up the prices of the asset to the same extent as they could in other markets," Residex says. "They have sought out the affordable asset, units."

Sydney points to the future, Residex reckons, as markets for each capital city reach their limit of affordability, which is the main driver of price growth.

Will units continue to be a more affordable option? Not unless it becomes easier to build them. Analyst Michael Matusik says multi-unit building approvals fell 44 per cent in May and, while the data is volatile, medium-density dwelling starts are on "a serious slide south". This is despite lower interest rates, the economic stimulus and rising investor interest.

Matusik says high prices and restrictive buyer and developer finance are the limiting factors. A new apartment in a downtown city area (Matusik lives in Queensland) costs the buyer at least $8000 a square metre, putting the cost of a 69sqm two-bedroom apartment with one parking space at $550,000.

Investors buy close to 75 per cent of all new apartments, but they now need bigger deposits to do so. Twenty per cent is often the minimum and sometimes 25per cent to 30 per cent.

Growth in rents is also slowing and Matusik says he can't see investors rushing back into the new apartment market. He says most new units sold recently have been substantially discounted, often below replacement cost.

Some are also not that new in the sense they have been on the market for a long time"

The Australian

"Meanwhile, one of the apartment sector's great survivors, Meriton boss Harry Triguboff, is on the look out for a third Brisbane apartment site as the Sydney-based billionaire considers shifting more of his development north.

"When we came to Brisbane, we couldn't sell at all," he said.  "But I believed what I had to offer was what the market wants." Mr Triguboff said he had been helped by the fact that other Brisbane CBD apartment projects had been shelved.

The Australian

"And so while Triguboff might be making money in the short term, he knows that long term if NSW keeps shooting itself in the foot, the population will leave for the greener pastures of Victoria and Queensland where they can buy a house or apartment for a fraction of the Sydney price."

Business Spectator

Pradella has decreased the list price for apartments at Sherwood. In my opinion, the city view apartments are great -- but there are few of these left. It is a very good development. Two apartment buildings are complete. There are 3 more apartment buildings that are planned (construction not commenced).

Apt 201 - 2 bed - rear view - ground floor - decreased to $509,000
Apt 203 - small 2 bed - rear view - ground floor - decreased to $485,000
Apt 204 - 1 bed - rear view - ground floor - decreased to $379,000
Apt 205 - large 2 bed - rear & side view - ground floor - decreased to $549,000
Apt 206 - large 2 bed - city view - ground floor - decreased to $559,000
Apt 213 - 3 bed - city view - ground floor - decreased to $690,000
Apt 214 - 3 bed - city view - ground floor - decreased to $699,000
Apt 216 - 1 bed - rear view - ground floor - decreased to $379,000
Apt 221 - small 2 bed - rear view - 1st floor - decreased to $495,000
Apt 222 - 1 bed - rear view - 1st floor - decreased to $385,000
Apt 223 - large 2 bed - rear & side view - 1st floor - decreased to $559,000
Apt 225 - small 2 bed - city view - 1st floor - decreased to $515,000
Apt 231 - 3 bed - city view - 1st floor - decreased to $699,000
Apt 240 - 1 bed - rear view - 2nd floor - decreased to $395,000
Apt 241 - large 2 bed - rear & side view - 2nd floor - decreased to $569,000
Apt 243 - small 2 bed - city view - 2bd floor - decreased to $525,000
Apt 250 - 3 bed - city view - 2nd floor - decreased to $719,000
Apt 251 - large 2 bed - rear & side view - 2nd floor - decreased to $575,000

Magazine story

"A call by debt collection agencies for reforms to the cost-recovery process for bodies corporate comes as apartment owners at a Brisbane building are locked in a legal fight with a resident, who had racked up a debt of more than $50,000 since 2004."

"In the Brisbane case, one of the owners in the 51-unit 1970s building on Leichhardt Street said that since 2004, the problem owner had not paid his strata fees or levies on time.

In two previous actions against him, one of the building's apartment owners, who did not want to be named for fear of retribution, said the problem owner ended up paying, with $20,000 of the $50,000 owed comprising legal fees.

"We have had two actions against him previously where he has paid on the steps of the court," they said.

"Because he is an ongoing serial pest, we should have some entitlement to say you are no longer entitled to be here."

The Australian