88 posts tagged “price”

Prices on the Gold Coast for apartments are going backwards.  Some examples:

It is interesting to review the information Devine has published regarding its French Quarter development, that it is in the process of selling. It gives a good idea as to developer profit margins and costs of new apartment developments, such as French Quarter. (The information was not password protected at first, now it is, so you will have to trust me on this.)

For the "Carrington" Building (268 apartments, with 302 car parks).

Revenue for residential apartments - $11,400 per sqm, totalling $411M
Revenue from selling management rights - $2.45M

Total Development costs, including land value at $49M and construction costs at $177M = $310M

Profit - $85M

Interestingly, marketing & commission costs are $22M.
("Marketing Costs allowance 2.0% of Gross Sales Revenue. Commissions of 3.0% of Gross Sales Revenue with 50% paid on unconditional contracts & 10% deposit held.")

So, for a 2 bed, 2 bath apartment (110sqm in size), the average price would have been $1.2M. Of this, about $350,000 is profit, and $60,000 approx is marketing costs and commission for the sales agent.

"HOUSING prices around the country rose nearly 2 per cent in August, the biggest monthly increase since researcher RP Data-Rismark began its tracking in 2005.

The August increase takes housing value growth to 7.9 per cent for the first eight months of the year, with Melbourne turning in the best performance -- an 11.6 per cent jump. ...

In a note yesterday, Mr Walters said an expected 25 basis-point interest rate rise next week, tighter lending standards, the Commonwealth Bank's move this week to lift its fixed mortgage rate, and the winding down of the first-home owner grant would all affect new development.

David Devine, managing director of Queensland-based residential developer Devine, said it was nearly impossible to secure funding from the banks for apartment and unit projects, irrespective of pre-sales.

Mr Devine said figures from researcher BIS Shrapnel showed there was demand for 175,000 new homes nationally each year."

The Australian

"Unit values marginally outperformed house values in August, with units rising 2.1 per cent while houses gained 1.8 per cent."   Source

See also, RP Data blog

Recent sales in Admiralty Two in Brisbane in May to July 2009

• Apt 20, level 4, 2 bed, 2 bath, 1 car, 103 sqm - $725,000
• Apt 80, level 14, 2 bed, 2 bath, 1 car, 103 sqm - $725,000
• Apt 97, level 17, 2 bed, 2 bath, 1 car, 116 sqm - $780,000
• Apt 106, level 18, 2 bed, 2 bath, 1 car, 116 sqm - $750,000
• Apt 137, level 24, 2 bed, 2 bath, 1 car, 116 sqm - $815,000

Source:  Email from Alan Caughey, Harcourts

• What will happen to the inner city Brisbane apartment market if foreign students stop coming to Brisbane?
• When interest rates rise, will Brisbane apartment prices fall?
• Will Meriton build a building in Brisbane that is lesser quality than Devine?  Is that possible?
• When will Felix have its river views blocked by development?
• Will returns to owners in Oaks buildings decrease this year?
• Will apartment prices in Brisbane continue to fall into 2010?
• When first home owners stop buying, will sellers who have not sold become desperate?
• Are the only investors buying at present the vultures and bottom-feeders?
  

Herron Todd White Valuers report in their August 2009 report that the Brisbane, Gold Coast and Sunshine Coast apartment markets are at "the bottom of the market".  They report no change in any market indicator factors over the past month.

Over the first seven months of the year Australian home values increased across every capital city, rising by 5.9 percent nationally.

Combined Brisbane house and apartment values up 3.8% to $437,175 for first 7 months of 2009

Brisbane Apartments were high performing, and outperformed Brisbane houses.

Brisbane Units - days on market = 26 days (almost the best in the nation)

Brisbane Units - 7 months to end of July increase - up 6.25%

Brisbane Units - 12 month Year on Year increase (at end of July) - up 6.58%

Brisbane Units - July 09 increase - up 3.26%

Based on Australia’s largest property database, owned by rpdata.com which includes roughly 145,000 sales for the first seven months of 2009, Australia’s housing recovery has continued in the month of July with solid across-the-board capital gains.

According to the market respected RP Data-Rismark Home Value Index, Australian home values rose by +0.9 percent in the month of July 2009. This brings total capital growth in the first seven months of 2009 to 5.9 percent.

Underpinned by historically low mortgage rates and only small rises in unemployment, Australian home values have now risen 1.8 percent past their February 2008 peak.

Rpdata.com national research director Tim Lawless, said, “Not only has Australia’s residential property market outperformed the other major western markets, it has also provided superior returns compared to shares, commercial property, superannuation, hedge funds and private equities. Australia’s residential market has been further supported by low mortgage default rates, at just 0.6 percent, compared with 5 percent in the US and 3 percent in the UK.”

“Every mainland capital city has experienced solid growth during the first seven months of the year. “ Mr Lawless said.

Professor Chris Eves, who led the study, said the team tracked high value areas, middle value and establishing suburbs.

"The bottom line is that the market is still declining, and the number of homebuyers has not increased according to expectations in relation to the improving economy," he said.

"Our view is that we haven't seen the worst of the decline yet, and property figures in all areas will remain in decline while the unemployment figures are still rising.

"The most significant decline in weekly property listings for sale in the period from February to May was in the middle-value suburbs, which have seen a 17.7 per cent decrease in weekly listings over the past six months."

Source

• 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