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Fundamentals in Brisbane inner city apartment market are weakening
Topic Started: 16 Aug 2014, 09:35 AM (2,259 Views)
zaph
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THINGS may be looking up in Brisbane’s construction sector with a 33 per cent jump in the number of cranes dotting the city since late last year.

But with residential activity accounting for much of the rise in the city’s so-called crane index, the first warnings of an impending oversupply of apartments in the city fringe and “not so pretty” medium-term outlook have emerged.
.............
However, the talk of a rebooted construction sector has been tempered by new research raising serious concerns of a wave of “irrational enthusiasm” that threatens to infect the inner Brisbane apartment sector.
.............
“But it’s a tricky market at this point because some of the core fundamentals in that inner city apartment market are weakening.

“So while there may be a lot of activity at present, the medium-term outlook is potentially not so pretty. Even a lot of bankers are seeing that something may not be quite right.

“There are concerns whether the level of activity is in response to genuine demand or irrational enthusiasm.”

http://www.couriermail.com.au/business/experts-say-outlook-is-not-pretty-as-fundamentals-in-inner-city-apartment-market-are-weakening/story-fnihsps3-1227024827411
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Will
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It better not weaken, because there is heaps under construction. It's surprising even to see the amount of smaller infill developments around tairinga, St Lucia, indooroopilly,, toowong. Sometimes just a block of 4 or 6 apartments/town houses.

Plenty of quite big stuff too, from Milton to Hamilton, and plenty in between.
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miw
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Will
17 Aug 2014, 06:46 PM
It better not weaken, because there is heaps under construction. It's surprising even to see the amount of smaller infill developments around tairinga, St Lucia, indooroopilly,, toowong. Sometimes just a block of 4 or 6 apartments/town houses.

Plenty of quite big stuff too, from Milton to Hamilton, and plenty in between.
I watch the Auchenflower/Toowong/St. Lucia/Taringa/Indooroopilly market pretty closely. The infill stuff has been coming out in dribs and drabs for a couple of years now. It's all got sold at well above the price that established units are going for, to whom I couldn't guess. It does not seem to have impacted unit prices in these areas, which seem to have just managed to regain the 2010 peak prices as far as I can tell. Having things like the Wesley Hospital and The University of Queensland in the area seems to help.

What it does impact, which is a worry for me, is rents. Rents have not really budged for three years in this area. (but they ran up very hard for the three years before that, so I guess I can't complain too much.)

It will be interesting to see what impact the latest wave will have, if any. I think I have said before that even if I were buying now, I would not be buying in this area. Across the Indooroopilly bridge in suburbs like Corinda still looks OK if you can find anything.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
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Bardon
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We have one of our offices on Coronation Drive and I recently took the time to walk up to Toowong during lunchtime. I noticed that the area had a lot more activity than I remember from my previous times there. This was when I lived in Ashgrove and also worked in Milton in the nineties and noughties. I was curious how the prices around there were going as some of the more established smaller apartments might have been good investments. I do know that commercial office type vacancies are up around Milton and there are some good lease deals available, not good for owners I guess. A colleague just negotiated a kind of two adjoining office small warehouse for the price of one three year lease deal with plenty of parking bays in Milton Village recently.

Having said that there are much more eateries around Park Rd, Baroona Rd and Toowong and they all seem to be busy. Toowong Village is having a major renovation and it looks like there is some big brands moving in, there is a new city cat terminal being built at the bottom of Park Rd and the one way valves are supposedly now installed on the stormwater outlets into the river, the Regatta Hotel is also looking pretty good and is buzzing with patrons.

We are doing lots of work in the daggy parts of West End and I would say that anyone looking to invest should have a good look there. Even if you just bought a shit box in a development area, I don't think you would have to wait too long for action.
Edited by Bardon, 17 Aug 2014, 08:56 PM.
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peter fraser
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Bardon
17 Aug 2014, 08:51 PM
We have one of our offices on Coronation Drive and I recently took the time to walk up to Toowong during lunchtime. I noticed that the area had a lot more activity than I remember from my previous times there. This was when I lived in Ashgrove and also worked in Milton in the nineties and noughties. I was curious how the prices around there were going as some of the more established smaller apartments might have been good investments. I do know that commercial office type vacancies are up around Milton and there are some good lease deals available, not good for owners I guess. A colleague just negotiated a kind of two adjoining office small warehouse for the price of one three year lease deal with plenty of parking bays in Milton Village recently.

Having said that there are much more eateries around Park Rd, Baroona Rd and Toowong and they all seem to be busy. Toowong Village is having a major renovation and it looks like there is some big brands moving in, there is a new city cat terminal being built at the bottom of Park Rd and the one way valves are supposedly now installed on the stormwater outlets into the river, the Regatta Hotel is also looking pretty good and is buzzing with patrons.

We are doing lots of work in the daggy parts of West End and I would say that anyone looking to invest should have a good look there. Even if you just bought a shit box in a development area, I don't think you would have to wait too long for action.
Did Milton Village flood in 2011?
Any expressed market opinion is my own and is not to be taken as financial advice
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Bardon
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peter fraser
17 Aug 2014, 09:14 PM
Did Milton Village flood in 2011?
Not sure as I missed all that as I was living in Melbourne. I wouldn't be surprised if it did though, as it is right next to that open creek channel. The new one way flow valves wont stop that waterway backing up, I must ask my mate the question when I next see him!
Edited by Bardon, 17 Aug 2014, 09:19 PM.
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peter fraser
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Bardon
17 Aug 2014, 09:18 PM
Not sure as I missed all that as I was living in Melbourne. I wouldn't be surprised if it did though, as it is right next to that open creek channel. The new one way flow valves wont stop that waterway backing up, I must ask my mate the question when I next see him!
I'm pretty sure that it did in 74 when it was a storage depot for XXXX and I'm sure that the tennis courts flooded in 2011, and that's about the same level. That drain flows through to Baroona Rd in Rosalie where they were hit pretty bad.

Any expressed market opinion is my own and is not to be taken as financial advice
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miw
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peter fraser
17 Aug 2014, 09:14 PM
Did Milton Village flood in 2011?
If you mean Park Rd, it looks like the top where all the coffee shops did not. Down next to the river and just over the other side of the railway line it looks as if there was a bit of inundation in places. However there is no solid purple on the map.

Bardon
17 Aug 2014, 08:51 PM
Having said that there are much more eateries around Park Rd, Baroona Rd and Toowong and they all seem to be busy. Toowong Village is having a major renovation and it looks like there is some big brands moving in, there is a new city cat terminal being built at the bottom of Park Rd and the one way valves are supposedly now installed on the stormwater outlets into the river, the Regatta Hotel is also looking pretty good and is buzzing with patrons.
Any idea what is going to happen with the old ABC offices over the road from Toowong Village?
Edited by miw, 17 Aug 2014, 09:42 PM.
The truth will set you free. But first, it will piss you off.
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peter fraser
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miw
17 Aug 2014, 09:40 PM
If you mean Park Rd, it looks like the top where all the coffee shops did not. Down next to the river and just over the other side of the railway line it looks as if there was a bit of inundation in places. However there is no solid purple on the map.
No Milton Village is an industrial village on the corner of Douglas St and Lang Parade. You would know the Lang Parade end of Dunwich Terrace. It's quite low. About 100 metres along Coro drive there is a creek running under a major building - right beside the Shell Garage. Most people aren't aware of it although it becomes a major storm water drain at Milton Rd.
Any expressed market opinion is my own and is not to be taken as financial advice
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miw
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peter fraser
17 Aug 2014, 09:50 PM
No Milton Village is an industrial village on the corner of Douglas St and Lang Parade. You would know the Lang Parade end of Dunwich Terrace. It's quite low. About 100 metres along Coro drive there is a creek running under a major building - right beside the Shell Garage. Most people aren't aware of it although it becomes a major storm water drain at Milton Rd.
That area went under in 2011. Lang Parade was inundated from Dunmore Tce right around to the bottom side of Lima St.

Most of Douglas street and also Dunmore Park were underwater.
Edited by miw, 17 Aug 2014, 09:55 PM.
The truth will set you free. But first, it will piss you off.
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