Brisbane city apartments

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From: Caroline Wilson


Hi all.

Just wondering if anyone has any comments on the soundness of inner city luxury apartments in Brisbane.

Ta

 

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Reply: 1
From: David Grounds


They keep on building more and more units in inner Brisbane creating a great supply of units there. Meanwhile, the supply of houses is reducing.

I'd rather buy a house.

 

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Reply: 2
From: Colin Mills


Up to 80-90% of the apartment towers are being sold to Syd/melb investors. Check out all the ads in the SMH and Age by the developers. Perhaps Brisbane buyers are too slick??? I live in Brisbane and certainly would not buy. So who, after they are all built, will actually be living there??? Obviously not the purchasers unless they all plan to move. Where are all the tenants at $400+ per week going to come from?
Disaster looms. Avoid it like the plague until the distressed re-sales start appearing in 2 or 3 years time. If you wish to invest in Brisbane try a house in Wilston/Windsor preferably with (somewhat limited) city views or glimpses for under $300k. Amazing VALUE, arguably the best value in Brisbane.

 

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Reply: 3
From: Tony Silvestro


I've just reserved the purchase of an apartment at Felix (in Felix St Brisbane). The location is great, right in the center of the business district in the Brisbane CBD. However, I have now some reservations .... I've also looked at a 6 year old apartment very close to the one I'm considering purchasing, and its selling now for the same price that it was purchased for back in 1996 !

The industry (media, property experts etc.)is certainly promoting Brisbane property in a very positive light. The big question is whether future profits have already been factored into the price of current off the plan CBD apartments.

Anyone have any other views ?

tsilv@acslink.net.au

 

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Reply: 3.1
From: David Grounds


Dear Tony

Two houses we bought in East Brisbane during the last few years have increased in value by 7%pa. The valuer who has valued the properties advises us that the very same properties have increased in value by the about 7%pa during the past 8 years or more.

If I were buying a unit that is for sale at the same price that it sold for in 1996, I would have to reflect on its poor performance over the past five years and wonder about the capital appreciation that the unit would be able to generate in the future.

I'd buy a house, they increase in value.

 

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Reply: 3.1.1
From: Tony Silvestro


Thanks David,

I'll need to re-think my position.

 

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Reply: 3.1.1.1
From: Caroline Wilson


Thanks for your insights guys.

If there is a lot of increased supply of apartments and the prices have been dropping - perhaps it's not a bad time to buy - price wise.

Rental demand maybe low at the moment but aren't there only so many places inner city where these apartments can be built in the future.

I'm surprised more corporations don't have their head offices in Brisbane where office space is not as extortionate as Melbourne or Sydney. More of this would also increase the demand of inner city accommodation. I'd certainly prefer the climate and lifestyle of Brisvegas.

I'd appreciate your thoughts