11 posts tagged “evolution”

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 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.

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

Not including M on Mary (for which no data is easily available), there were only six new apartment buildings selling in the January to March 08 quarter. These were Aurora, Evolution, Pinnacle, Skyline, The Macrossan and Vision. (Empire Square and Trilogy Tower were taking expressions of interest, but no contracts were issued or signed in this quarter.)

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 total the Brisbane CBD.

New Buildings - Furnished

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

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.

Evolution

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.

Apartment 205, on 20th floor, for sale at $790,000 - good photos of apartment in this listing.

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.

"... 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. 

These interesting videos show future developments for Brisbane.  So take care when buying -- some existing buildings will loose their views; and there will be a huge influx of apartments into Brisbane in the future.

http://www.youtube.com/watch?v=BmGWIbOYZmU

http://www.youtube.com/watch?v=l687g1Ub5qM&feature=related

Trilogy Tower

Wickham Terrace & Turbot Street (Central Station)

Vision

Tennyson Reach

NorthBridge (office development, which will block some views from Evolution)

Brisbane Now, from PleaseTakeMeTo.com

As reported on SkyScraperLife (including projected completion date and name of builder):

Under Construction:
Centary Square [108 Wickham St] -- Feb-08 << Laing Orourke >>
Evolution - [18 Tank St] -- due Apr-08 << Hutchinson >>
Green Square [503 St. Paul’s Tce] -- Jun-08 << Leightons >>
Tribune [199 Grey St] -- Jun-08 << Stockwell >>
WBC Annex [199 George St] -- Jun-08 << Highpoint >>
Devine Office [333 Ann St] -- Sep-08 << Devine >>
Wesly Mission [110 Ann St] -- Sep-08 << ???????? >>
545 Queen St [545 Queen St] -- Nov-08 << Hutchinson >>
Petrie Barracks [Given Tce] -- Nov-08 << Hutchinson >>
Central Plaza 3 [80 Eagle St] -- Dec-08 << Laing Orourke >>
NAB Annex [308 Queen St] -- Dec-08 << Hutchinson >>
53 Albert St [53 Albert St] -- Mar-09 << Hutchinson >>
Brisbane Central [140 Elizabeth St] -- Mar-09 << Watpac >>
Matisee tower [110 Mary St] -- Mar-09 << FKP >>
NorthBridge [31 Tank St] -- Mar-09 << Hutchinson >>
AM60 [42 Albert St] -- Mar-09 << Hutchinson >>
The Macrossan [475 Adelaide St] -- Jun-09 << Parkview >>
Suncorp Tower [179 Turbot St] -- Jun-09 << Amalgamated >>
Icon Place [270 Adelaide St] -- Jun-09 << Matrix >>
Sky Campus [400 George St] -- Dec-09 << Leightons >>
NorthBank Plaza [275 George] -- Dec-09 << Watpac >>
Vision [131 Mary St] -- Jun 2012 << Grocon >>

Pending Start: (real Projects with construction contract, due to start soon)
Trilogy [480 Queen] -- << Laing Orourke >>
111 Eagle St [111 Eagle St] -- << Leightons >>
Union [Milton Station 150 Milton Rd] -- << FKP >>
Westminster Hall [145 Ann St] -- << Devine >>
Southpoint [Collins Place] -- << Hutchinson >>
Meriton [495 Adelaide St] -- << Meriton >>
550 Queen St [550 Queen St] -- << Watpac >>

Evolution is in its final stages, and will settle in the next 8 weeks.

Prices for apartments in Evolution are very expensive.

Ray White sent me an email in November 2006 that stated that Evolution had 176 apartments, and the average sales price reported by the developer for those apartments sold off the plan is approximately $620,000.

It is not a direct riverfront building -- there is a major road and freeway between Evolution and the Brisbane river.  It is next door to the Federal Court building, in a less desirable part of the CBD of Brisbane.  Apartment sizes are small.  I am not sure why it commands premium prices of approximately $8,500 to $10,000 a sqm, especially when direct riverfront in Admiralty Two or Riverplace are available at about $6000 a sqm (and, although older, are in much better locations.)

Here is an example resale apartment:  level 20, B type, 2 bed rooms, 2 bathrooms, 1 car park, 1 storage, Total 86 sqm (internal 76 sqm + external 10 sqm) - listed at $850,000 negotiable.  The apartment is very small -- really just a small living room and 2 bedrooms.  Neither of the bathrooms are big enough to have a bath -- two showers only.  Tiny kitchen.  No linen cupboard or broom cupboard -- in fact, no storage in the apartment at all.

A type C apartment is 2 bedrooms, 1 bathroom @ 63 sqm internal.  Wow - that's small.    

Other apartments listed for sale include:

• One bedroom, no carspace, no river views, roof views, at $408,000
• One bedroom, no carspace, no river views, at $446,000
• One bedroom, no carspace, listed at $373,000 (and said to be under contract)
• One bedroom, no carspace, listed at $488,000
• Apartment 52 (level 5) (77sqm internal, plus large terrace), $958,000
  
• Apartment 166 (level 16) (89sqm internal), $868,500 (said to be under contract)
  
• Sub penthouse, Apartment 323, $1,640,000
• Apartment 344, $1,740,000
  
• 2 bed $850,000

The developer seems to have about 30 apartments listed for sale on domain.com.au.
The agent's page is here.
This webpage leads to this listing of available apartments (as at January 24, 2008):

Level 15, Unit 151/71	Price: $410,000	1 1	Status: Deposit Taken
Level 15, Unit 152/71	Price: $448,000	1 1	Status: Deposit Taken
Level 16, Unit 162/71	Price: $421,500	1 1	Status: Deposit Taken
Level 16, Unit 163/71	Price: $672,500	2 1 1	Status: Deposit Taken
Level 18, Unit 183/71	Price: $650,500	2 1 1	Status: Deposit Taken
Level 20, Unit 203/71	Price: $656,500	2 1 1	Status: Deposit Taken
Level 21, Unit 213/71	Price: $659,500	2 1 1	Status: Deposit Taken
Level 2, Unit 23	Price: $275,000	1 1	Status: Deposit Taken
Level 34, Unit 344/71	Price: $1,740,000	2 3 2	Status: Available
Level 5, Unit 51/71	Price: 582,500	2 1	Status: Available
Level 7, Unit 71/71	Price: 373,000	1 1	Status: Deposit Taken
Level 8, Unit 802	Price: $405,000	1 1	Status: Available

In early 2007, an agent sent me an email as follows:

Also, in early 2007, the onsite agent wrote to me and said:  Apartment 51 at $630,000, 2bd, 1bth, 1 car apartment is the only one still available that is 107m2.   Internal area:  63m2    External - Balcony is 37m2.  The apartment is South East facing and yes does look over and above the Federal Court with River and City views.

Some recent sales of two bedrooms above $800,000

• Parklands, Apt 6042, $875,000
• Felix, Apt 377, $950,000
• Quay West, Apt 1901, $850,000
• Quay West, Apt 2006, $830,000

Some current 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