JayT
July 14th, 2004, 03:19 PM
Buyers keep coming for ‘Brissie’ apartments
Adam Parsons
There was no shortage of buyers for inner city units in Brisbane during the June 2004 quarter, according to the latest Brisbane Unit Report released by PRDnationwide yesterday.
While the results may come as a surprise to analysts and commentators, the latest figures reveal a stronger quarter in terms of value and volume than the June quarter twelve months ago, when the market was said to be at peak levels.
This latest report indicates that there were 524 unconditional sales recorded across 38 projects, totaling $262 million.
According to report author and PRDnationwide Brisbane research manager Paul Barratt, the June quarter results highlight the supply-led nature of the Brisbane unit market, with new projects accounting for almost three quarters (70%) of sales in terms of volume.
Barratt said this is not to say that all new projects have been well received by the market.
“From our research, projects that sold well during the quarter were well-defined and met the needs of target markets,” he said.
“For the first time ever, the average price for available unit stock in the inner city was greater than $500,000. This can be attributed to a number of key factors including rising construction costs which are continuing to force some developers to push prices to the brink of what the market will bear.
“This increase has resulted in slower than average sales in secondary stock at a time when the purchase power is shifting back to the buyer, and the word ‘negotiable’ is starting to re-enter the vocabulary of project marketers.
“Some developers are being forced to price to construction costs rather than the expectations of the market,” Mr Barratt said.
According to the report, rising average prices can also be attributed to the prestige nature of the current stock profile.
Of the 38 projects in the market during the June 2004 quarter, nine of these are direct riverfront, and five have an average price tag of over $1million.
Currently, there are seven projects in the inner city market achieving in excess of $5,000 per sqm gross. In some instances, in excess of $7,000 per sqm is being achieved.
Barratt said historically, this is unheard of for the Brisbane unit market, which typifies the markets acceptance of units as a preferred dwelling option.
Looking at supply levels for inner city units, there were 1,274 units available for sale at the end of June 2004, which is equivalent to seven months of supply available based on recent demand and stock levels.
“Despite the negative sentiment towards inner city apartment markets in general across the country, the Brisbane market which is largely underpinned by local developers, is in good shape with 14 new and diverse projects due to be released across the city for the remainder of 2004,” Barratt concluded.
http://www.propertyreview.com.au/archives/2004/14072004/reviewed/14072004003.html
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High-tide for Brisbane river prices
By Maurice Dunlevy
July 03, 2004
LUXURY apartment sales are already challenging those who still regard Brisbane as a big country town, but now it's the turn of riverfront house prices to silence detractors.
Data out this week reveals luxury Brisbane riverfront house prices have hit a high watermark and there's no sign of the tide going out.
The luxury end of the Brisbane market, as well as the Gold and Sunshine coasts, continues to outperform the rest of Australia.
BIS Shrapnel chief economist Frank Gelber says that's because southeast Queensland is still playing catch-up with Sydney and Melbourne and, on top of that, remains undersupplied.
His prediction is that southeast Queensland markets will remain strong - but won't actually boom - ahead of big interest rate rises in the second half of next year and into 2006.
But whatever's around the corner, Gelber agrees Brisbane is looking good.
For 2003 alone, realtors PRDnationwide identified 37 sales of riverfront houses at a once unheard of average price of $2.082million.
And according to researchers Matusik Property Insights, 88 houses and 60 apartments, townhouses and villas sold for $1million or more in the inner-city in the March quarter of this year.
Managing director Michael Matusik says the figures, combined with luxury apartment sales, demonstrate unprecedented demand for top-end property.
A study by PRDnationwide research director Tim Lawless found riverfront property to be some of the most tightly held in the Queensland capital.
His research found an average price of more than $2million. But sales of more than $4million were not unusual in the blue-chip suburbs of Chelmer, Norman Park and New Farm.
Lawless says almost 80 per cent of riverfront homes sell for more than $1.5million, compared with only 2per cent five years ago.
Not surprisingly, values peaked during 2002 - the height of the property boom - but capital growth has remained remarkably high since then, with houses averaging 22 per cent a year.
Of all Brisbane riverfront property, Jindalee recorded the largest increase of 30 per cent, albeit from a relatively low price base.
That suburb was followed by Kenmore, Chelmer, and areas in and around Newstead. Chelmer was the strongest market in terms of sales, with six above $2.5million in the past 12 months.
As many top-end apartments as upmarket detached houses now sell in inner Brisbane, and Matusik says that's enough evidence for him of a fundamental market shift.
'Brisbane has embraced medium and high-density living, and we don't expect the trend to end in a hurry.'
He says the top of the market is doing best, with the latest available figures - for 2002-03, again in boom time - showing apartments in the $750,000 to $1million price bracket recording a capital gain of 10.1 per cent, or $270,000.
Apartments selling above $1 million turned in capital gains of 5.7 per cent, or $337,500, compared with properties under $200,000, which rose 3.1 per cent, or $21,150.
http://www.theaustralian.news.com.au/common/story_page/0,5744,10020377%255E25658,00.html
_____________________________________________________________________________
jt
Adam Parsons
There was no shortage of buyers for inner city units in Brisbane during the June 2004 quarter, according to the latest Brisbane Unit Report released by PRDnationwide yesterday.
While the results may come as a surprise to analysts and commentators, the latest figures reveal a stronger quarter in terms of value and volume than the June quarter twelve months ago, when the market was said to be at peak levels.
This latest report indicates that there were 524 unconditional sales recorded across 38 projects, totaling $262 million.
According to report author and PRDnationwide Brisbane research manager Paul Barratt, the June quarter results highlight the supply-led nature of the Brisbane unit market, with new projects accounting for almost three quarters (70%) of sales in terms of volume.
Barratt said this is not to say that all new projects have been well received by the market.
“From our research, projects that sold well during the quarter were well-defined and met the needs of target markets,” he said.
“For the first time ever, the average price for available unit stock in the inner city was greater than $500,000. This can be attributed to a number of key factors including rising construction costs which are continuing to force some developers to push prices to the brink of what the market will bear.
“This increase has resulted in slower than average sales in secondary stock at a time when the purchase power is shifting back to the buyer, and the word ‘negotiable’ is starting to re-enter the vocabulary of project marketers.
“Some developers are being forced to price to construction costs rather than the expectations of the market,” Mr Barratt said.
According to the report, rising average prices can also be attributed to the prestige nature of the current stock profile.
Of the 38 projects in the market during the June 2004 quarter, nine of these are direct riverfront, and five have an average price tag of over $1million.
Currently, there are seven projects in the inner city market achieving in excess of $5,000 per sqm gross. In some instances, in excess of $7,000 per sqm is being achieved.
Barratt said historically, this is unheard of for the Brisbane unit market, which typifies the markets acceptance of units as a preferred dwelling option.
Looking at supply levels for inner city units, there were 1,274 units available for sale at the end of June 2004, which is equivalent to seven months of supply available based on recent demand and stock levels.
“Despite the negative sentiment towards inner city apartment markets in general across the country, the Brisbane market which is largely underpinned by local developers, is in good shape with 14 new and diverse projects due to be released across the city for the remainder of 2004,” Barratt concluded.
http://www.propertyreview.com.au/archives/2004/14072004/reviewed/14072004003.html
________________________________________________________________
High-tide for Brisbane river prices
By Maurice Dunlevy
July 03, 2004
LUXURY apartment sales are already challenging those who still regard Brisbane as a big country town, but now it's the turn of riverfront house prices to silence detractors.
Data out this week reveals luxury Brisbane riverfront house prices have hit a high watermark and there's no sign of the tide going out.
The luxury end of the Brisbane market, as well as the Gold and Sunshine coasts, continues to outperform the rest of Australia.
BIS Shrapnel chief economist Frank Gelber says that's because southeast Queensland is still playing catch-up with Sydney and Melbourne and, on top of that, remains undersupplied.
His prediction is that southeast Queensland markets will remain strong - but won't actually boom - ahead of big interest rate rises in the second half of next year and into 2006.
But whatever's around the corner, Gelber agrees Brisbane is looking good.
For 2003 alone, realtors PRDnationwide identified 37 sales of riverfront houses at a once unheard of average price of $2.082million.
And according to researchers Matusik Property Insights, 88 houses and 60 apartments, townhouses and villas sold for $1million or more in the inner-city in the March quarter of this year.
Managing director Michael Matusik says the figures, combined with luxury apartment sales, demonstrate unprecedented demand for top-end property.
A study by PRDnationwide research director Tim Lawless found riverfront property to be some of the most tightly held in the Queensland capital.
His research found an average price of more than $2million. But sales of more than $4million were not unusual in the blue-chip suburbs of Chelmer, Norman Park and New Farm.
Lawless says almost 80 per cent of riverfront homes sell for more than $1.5million, compared with only 2per cent five years ago.
Not surprisingly, values peaked during 2002 - the height of the property boom - but capital growth has remained remarkably high since then, with houses averaging 22 per cent a year.
Of all Brisbane riverfront property, Jindalee recorded the largest increase of 30 per cent, albeit from a relatively low price base.
That suburb was followed by Kenmore, Chelmer, and areas in and around Newstead. Chelmer was the strongest market in terms of sales, with six above $2.5million in the past 12 months.
As many top-end apartments as upmarket detached houses now sell in inner Brisbane, and Matusik says that's enough evidence for him of a fundamental market shift.
'Brisbane has embraced medium and high-density living, and we don't expect the trend to end in a hurry.'
He says the top of the market is doing best, with the latest available figures - for 2002-03, again in boom time - showing apartments in the $750,000 to $1million price bracket recording a capital gain of 10.1 per cent, or $270,000.
Apartments selling above $1 million turned in capital gains of 5.7 per cent, or $337,500, compared with properties under $200,000, which rose 3.1 per cent, or $21,150.
http://www.theaustralian.news.com.au/common/story_page/0,5744,10020377%255E25658,00.html
_____________________________________________________________________________
jt