BRISBANE Apartment Report

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Middle South Precinct High Weighted Average, Low Unconditional Sales Middle East Precinct No Change BRIEFLY... BRIEFLY... ➤ 6 unconditional sales were recorded within the Middle South precinct ➤ The weighted average price of a new apartment for the quarter was $1,083,333 ➤ 101 new apartments remain available for sale at the end of the December 2010 quarter ➤ The median price for general apartments within Brisbane’s Middle South was $375,500 ➤ Zero new unconditional sales were registered during the December 2010 quarter ➤ There a number of new projects due for launch into the market in coming months ➤ 26 units remain available for sale within Brisbane’s Middle East precinct ➤ The general apartment market registered a median price of $429,000 New Apartment Market Brisbane’s Middle South apartment market saw a total of 6 unconditional sales transact through the three month period to June 2010, a figure more than half the number recorded during the March quarter prior. A weighted average figure of $1,083,333 was recorded. Once again, the Inner South was the highest weighted average of all Middle Ring precincts, weighted by the sales recorded within Mirvac’s Farringford Apartments which are high end riverfront properties. Mirvac’s Farringford Apartments was again the performing project during the quarter registering total of 4 unconditional sales during the period. Parklands at Sherwood recorded a further two sales during the quarter to total the six transactions. Recorded unconditional sales within the Middle South were spread over one, two bedroom stock. Two bedroom configurations registered the majority at 82% of the quarter’s sales whilst two and three bedroom apartments saw 25% of the unconditional transactions. A total of 101 apartments remain for sale within the Middle South over three separate projects, the majority of which exists as three bedroom stock. An overwhelming 64% of the available stock is in three bedroom configurations whilst two bedroom apartments total a further 28%. General Apartment Market • The Middle South recorded a strengthening median price during the March 2010 quarter. The past twelve months have seen a median price growth of 14%, the strongest of all Middle Ring precincts. A median of $375,500. • Analysis of the settled sales during the March quarter 2010 registered the majority of sales within the $300,000 to $399,999 price point of 38%. • The precinct recognised a decrease in the number of settled sales to March 2010. A total of 116 settled apartment sales were reported, approximately 50 less than the 162 sales recorded during the December 2010 quarter previously. • Capital growth was measured on properties which were resold into the Middle South apartment market during the March quarter 2010. Resold apartments recorded an average annual capital growth of 8.5%. These properties were held for an average of 7 years before being resold into the market. Planned Apartment Market • There was little movement in the planned apartment market through the June 2010 quarter. • Many projects remain in the approval process awaiting council approval. Others are pending market conditions before the sales process is undertaken. There have been some smaller projects enter the DA process and look to enter the market. New Apartment Market The Middle East precinct saw zero unconditional sales during the three month period to June 2010. Only two projects remained for sale in the precinct as at the close of the June quarter, leaving only 26 new developer apartments available for sale at the end of the financial year. Both projects and all apartments are in Australand’s Solito precinct at Carindale. Colliers International Research do however recognise that future projects are currently entering the market and are expected to recognise unconditional sales in coming periods, suggesting the Inner East will see a substantial increase in sales. Three of the larger projects include Tranquillity Residences, Pinetrees and Axis are all projects located in Mt Gravatt. Anthony John Group also looks to move forward with their proposed project at Cannon Hill in the near future. Only 26 new off-plan apartments remain for sale in the Middle East, the majority of which, 85%, is in three bedroom configurations. It can be reliably argued that the Middle East, given recent sales rates in one and two bedroom stock, is demanding this product particularly in one and two bedroom configurations. Brisbane’s Middle East has the potential to outperform all other Middle Ring precincts in coming years. Projects are forthcoming in these regions as density is ever increasing and becoming accepted in this area. General Apartment Market • The median price for an apartment within the Middle East during the three month period to March 2010 was $429,000 suggesting there has been a slight strengthening in the median through the most recent period, again recording the highest median price amongst the Brisbane Middle Ring precincts. • The precinct also recorded a tightening in the number of sales registered during the March 2010 quarter. A total of 92 settled apartment transactions were recorded for the three months to March 2010, a figure 39 below the three month period prior. • The majority of sales transacted within the Middle East precinct during the March 2010 quarter were within the $300,000 to $399,999 and the $400,000 to $499,999 price point at 34% and 37% of the sales respectively for the quarter. • A resale analysis was undertaken in order to derive the capital growth registered by properties which were resold into the Middle East apartment market during the March 2010 quarter. Resold Middle East apartments recorded an average annual capital growth of 7.4% for the most recent quarter. These properties were held for an average of 6 years. Planned Apartment Market • The southern corridor looks to be a significant development corridor into the future. Mount Gravatt, Upper Mount Gravatt and Mount Gravatt East look to provide the majority of apartment development into the future. There are also significant projects through the Cannon Hill New Apartment Sales Name Suburb Status Total Units Sold to Date Sold June QTR Available for Sale New Apartment Sales Name Suburb Status Total Units Sold to Date Sold June QTR Available for Sale Farringford - Tennyson Reach Tennyson Under Construction 92 49 4 43 Solito - Central Tower Carindale Under Construction 36 27 0 9 Cargo Apartments Coopers Plains Awaiting Construction 54 22 0 32 Parklands at Sherwood Sherwood Under Construction 82 56 2 26 Summary - 3 projects 228 127 6 101 Solito - South Tower Carindale Under Construction 30 13 0 17 Summary - 2 projects 66 40 0 26 Prepared by Colliers International Research Source: Colliers Brisbane Unit Survey Prepared by Colliers International Research Source: Colliers Brisbane Unit Survey New Projects Pending Project Status Likely No of Apts New Projects Pending Project Status Likely No of Apts 1512 Boundary Rd Development Approved/Deferred 59 122 Klumpp Rd Development Application 34 190-198 Padstow Rd Development Application 38 1437 Logan Road Development Application 116 428 & 429 Blunder Rd Development Approval 195 26 Bendena Tce Development Application 86 52-58 Chipley St Development Application 98 42-46 Sanders St Development Application 57 1537 Beenleigh Rd Development Application 62 582 Manly Rd Development Approval 62 64-78 Ormskirk St Development Application 40 81-85 Lawson St Development Application 72 92-96 Illaweena St Development Approval 47 Tranquility Residences Development Approval 55 3-7 Grout St Macgregor Development Application 43 Prepared by Colliers International Research Source: BCI Australia, BCC 18 Brisbane Apartment Report June Quarter 2010 Prepared by Colliers International Research Source: BCI Australia, BCC 19
Middle West Precinct Limited Availability Special Report “Identifying the Future Growth Precincts of Brisbane” BRIEFLY... ➤ 10 new unconditional sales transacted during the June 2010 quarter New Apartment Market The Middle West saw 10 unconditional sales transact during the three months to June 2010, a figure slightly above the ten sales reported during the March quarter prior yet directly in line with the ten sales recorded twelve months prior. The resulting weighted average price for the precinct was $586,500, a figure almost $100,000 above the June quarter 2009. When directly compared to the period prior only a 1% difference in weighted average price is recognised. The top performing project within the Inner West for the March 2010 quarter was again Verve Apartments at The Gap. The project to be developed by the Exelsior Group saw a further seven unconditional transactions for the most recent period to June 2010. Three further transactions were recorded within Pavillion in Botanic, a project by the Semilan Group. The recorded transactions were evenly spread over two and three bedroom apartments during the period. Both two bedroom and three bedroom configurations New Apartment Sales New Projects Pending ➤ The weighted average price of a new apartment within Brisbane’s Middle West was $586,500 for the June 2010 quarter saw five unconditional sales a piece for the period ending March 2010. The stock which remains for sale in the Middle West is dominated by two bedroom apartments totalling 67% of the available apartments. Three bedroom apartments total 27% of the remaining 60 apartments. Limited one bedroom apartments remain for sale suggesting that these variations continue to be undersupplied in the market and therefore a possible pent up demand may exist for this type of residence. General Apartment Market • The Middle West precinct saw a reasonable strengthening in median price during the March 2010 quarter to record a median price of $407,500, a figure only $2,500 below the December quarter prior. • Further to this, the precinct recognised a strengthening sales rate, registering 127 settled sales for the quarter. This is an increase of 20% equating to 21 transactions. • Analysis of the price points in which the settled sales occurred shows that the Name Suburb Status ➤ The end of the June 2010 sees only 60 new apartments available for sale Verve Apts - Stage 1 The Gap Awaiting Construction 44 22 7 22 50% Pavillion in Botanic Gaythorne Under Construction 23 20 3 3 87% El Dorado Village Indooroopilly Awaiting Construction 100 65 0 35 65% Summary - 3 Projects 167 107 10 60 64% Prepared by Colliers International Research Source: Colliers Brisbane Unit Survey Total Units Sold to Date Project Status Likely No of Apts 105-115 Coonan St Indooroopilly Deferred 67 181 Clarence Rd Development Application 138 Everton Park Urban Village Deferred 420 Ashgrove Golf Club Development Application/Deferred 105 Bardon Centre Development Approved/Deferred 104 Blackwood Street Village Centre Development Approval 31 17 Marshall Lane Development Application 21 ➤ The general apartment market registered a median price of $407,500 overwhelming majority of transactions again fell in the $300,000 to $399,999 price bracket. 43% of the region’s total sales for the period transacted within this price point closely followed by the $400,000 to $499,999 price point which saw 34% of the settled stock. • Capital growth was measured on properties which were resold into the Middle West apartment market during the March 2010 quarter. Resold apartments recorded an average annual capital growth of 8.2% to March 2010. These properties were held for an average of 7.1 years before being resold into the market. Planned Apartment Market • Many projects have been deferred pending market conditions however, there remains potential for some larger projects to enter the market to satisfy residential demand. • The Middle West, an area of great development potential is set to recognise substantial residential development into the future. Sold June QTR Available for Sale % Sold The implementation of new infrastructure upgrades will allow Brisbane to further integrate its suburbs and provide both employment nodes and efficient transport nodes for Brisbane city’s residents. The result will be future growth for those inner city regions which can promote strong infrastructure access. Those suburbs that benefit from the council upgrades will recognise greater growth into the future. South-East Queensland Infrastructure Plan and Program 2009 – 2026 will manage the extreme growth of the Brisbane region. The 2009 edition of the plan identifies $124 billion in estimated infrastructure investment which is expected to create up to 900,000 jobs in the region through 2026. Recently completed Infrastructure Initiatives: Clem 7 The Clem 7 is an integral component of the BCC’s TransApex plan. The project will encompass 2 x 2 lane 5.7 kilometre tunnel will connect the South East freeway, Ipswich Road, Bowen Bridge Road and Inner City Bypass. The tunnel runs below the Brisbane River avoiding 24 sets of traffic lights allowing for faster transport between point A and B for Inner City residents. • $2.1 billion project (est.); Completed March 2010. Go-Between Bridge The Go Between Bridge is an initiative of the Brisbane City Council to link South Brisbane to the ICB, Milton Road and Coronation Drive. The bridge is predicted to cater for 30 per cent of cross river traffic via its four lane toll bridge as well as pedestrians and cyclists seeking the cross river journey. • $241 million project (est.); Expected completion July 2010 CityGlider The CityGlider, a $4.5 million mass transit bus service aims to provide a dedicated, reliable and accessible public transport system linking West End and Newstead. The proposed bus service will operate on high frequency timetables departing every 10 – 15 minutes, 18 hours a day (Sunday to Thursday) and will become Brisbane’s first 24 hour service on Friday and Saturdays. Chinatown Mall Redevelopment The recently completed Chinatown Mall has been the product of an $8 million Brisbane City Council upgrade, revamping the deteriorated precinct into an alternative location for retail amenity outside of the Brisbane CBD. The Chinatown Mall now encompasses three distinct terraced zones one of which is dedicated to events and dining alone. Kurilpa Footbridge The Kurilpa Footbridge, completed in late 2009, links the CBD North Quay precinct to the cultural South Bank region. The bridge will be constructed to cater for both pedestrians and cyclists and is expected to be used by approximately 53,000 people per week. • $65 million project (est) Infrastructure Initiatives in progress: Northern Busway The construction of the Northern Busway will establish a link between the Inner Northern Busway and the Airport Link which is currently under construction. The project will provide public transport nodes from the northern suburbs to the CBD. • $800 million project (est.); Expected completion 2012 Northern Link Tunnel The two parallel tolled tunnels will connect the western freeway at Toowong to the Inner City Bypass at Herston. A part of the Council’s TransApex plan, the Northern Link will span a distance of 5.5 kilometres, 4.7 kilometres of which will be underground and reduce congestion on current cross city nodes. • $1.6 billion project (est.); Expected completion 2014 Airport Link The Airport Link will more efficiently connect Brisbane’s northern suburbs to the airport. The preferred corridor will be to follow Lutwyche Road at Bowen Hills and connect to the East-West arterial at Toombul with provisions to link the Northern Busway in the future, providing shorter travelling times for northern residents. • $3.4 billion project (est.); Expected completion 2012 Eastern Busway The Eastern Busway has been proposed to link the Boggo Road Busway at Woolloongabba and the South East Busway at Buranda to Main Avenue at Capalaba. This new busway is expected to halve current travel times from Brisbane’s eastern corridor. • $603 million project (est.); Expected completion 2012 Mater Hospital – Translation Research Institute and Queensland Children’s Hospital (QCH) Mater Hospital Refurbishment and Medical Research Facility – Six storey building which will attract up to 650 new well paid employees. Construction is underway on the $1.1 billion Queensland Children’s Hospital which is expected to be relocated to by Mater facility after practical completion in 2014. Western Brisbane Transport Network Investigation Currently undergoing a feasibility study, Brisbane’s western districts infrastructure is presently being investigated for potential upgrades to the existing infrastructure networks. Included in this investigation is the Ipswich Motorway upgrade and links to the Centenary Motorway, Logan Road and Progress Road interchanges. • $17 million has been confirmed; However the Ipswich Motorway upgrade is expected to total $2 billion • Feasibility studies; Expected completion is upwards of 2012 For more information please contact the Colliers International Research department on (07) 3026 3352 28 Mt Nebo Rd Development Application 26 Prepared by Colliers International Research Source: BCI Australia, BCC 20 Brisbane Apartment Report June Quarter 2010 21
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BRISBANE Apartment Report

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