Kingston Foreshores - ACT

C

Craiginqatar

Hi All,

I'm after some information about the Kingston Foreshores development in the ACT. I'm looking at a 1br apartment there and wondering what the outlook is for this area. The apartment is OTP and would be on an island that is near what will be a marina. The cost of a 1br is costly, but it is direct lakefront looking back down the lake towards the 2 bridges and the rent in the area is high.

Any thoughts on this area or alternatives. I'm told they have been appreciating at 10% per year and wondering if this sort of growth will continue in this area.

Cheers

Craig
 
Craiginqatar said:
Hi All,

I'm after some information about the Kingston Foreshores development in the ACT. I'm looking at a 1br apartment there and wondering what the outlook is for this area. The apartment is OTP and would be on an island that is near what will be a marina. The cost of a 1br is costly, but it is direct lakefront looking back down the lake towards the 2 bridges and the rent in the area is high.

Any thoughts on this area or alternatives. I'm told they have been appreciating at 10% per year and wondering if this sort of growth will continue in this area.

Cheers

Craig
Click to expand...

Craig, so in the end you got looking back at Canberra eh? That is good. Most of Canberra is doing 10% a year in my opinion. What do the agents say the rent will be? How much are the apartments? There is only so much water in Canberra. Will this be a very unique situation? If so there may be value in these apartments.
 
I can't comment on the foreshore properties but I had a look at a pricing schedule for a new development going up in Braddon (behind the Rex hotel) and thought the prices seemed reasonable.
 
The Kingston forshore seems to me to be overpriced, especially considering the cost of older units only a couple of streets back toward Kingston itself.
 
Personally I never saw all the fuss about Kingston for the price.
Honestly, there's a few yuppee shops and cafes, a man made lake with murky brown water and not a whole lot else. Proximity to the CBD is A1, but there are other areas which can almost match that for much better value. Not my cup of tea *for the outlay*.
 
VYBerlinaV8 said:
The Kingston forshore seems to me to be overpriced, especially considering the cost of older units only a couple of streets back toward Kingston itself.
Click to expand...

yep, that. Plus there is so much development going on on the foreshore it is hardly likely to be unique. What kind of prices are you talking about here?
 
I've just stumbled across the pricing schedule for the development in Braddon I mentioned a few posts back.

- 1 bedroom with balcony starting at $369k

I haven't done any DD whatsoever but this seems like a decent entry price for something that's not going to be complete for a couple of years.

What are the foreshore properties selling for?
 
Jamie M said:
I've just stumbled across the pricing schedule for the development in Braddon I mentioned a few posts back.

- 1 bedroom with balcony starting at $369k

I haven't done any DD whatsoever but this seems like a decent entry price for something that's not going to be complete for a couple of years.

What are the foreshore properties selling for?
Click to expand...

I must admit I too have noticed these upcoming apartments, I was interested enough to get the floor plans and pricing for the development. Will have a proper look at them this weekend and will explore the idea of getting one as an investment.
 
They are not cheap, but I think capital gains can be made as there are limited lakefront developments on Lake Burleigh Griffin. The place I'm looking at now is a 1br with a full lakefront view and courtyard with direct access to the lakefront. Price is $590K for 100% lakefront. There are cheaper ones, but they do not have lake views. Payment terms are 5% down now and ready in 18mths. Return is about 5.3% unfurnished. The body corp is low as it does not have a swimming pool, tennis, gym, etc.

I spoke to a non related agent who specializes in the Kingston/ Manuka region and she said there are very few places to rent on the market at the moment of that quality and that rental demand for these places, even at those prices is high. She suggested going for fully furnished. She suggested that rent for similar places in the area is currently about $580 - 600 unfurnished per week and up to $700 - 750 furnished.

The cost of buying lakefront and within the parliamentary circle in most places in the world is astronomical compared to Canberra.
 
Although there is no data for Kingston foreshore vs Kingston, the median price for a Kingston unit has gone from $430K in 2005 to $470K in 2010.

It's worth while checking history on some of the streets like Printers Way (not waterfront)- although there is not much sales history.

$590K is a lot of money for a 1BR apartment.

I'd suggest that any new unit will have limited CG in the first few years.
 
geoffw said:
$590K is a lot of money for a 1BR apartment.

I'd suggest that any new unit will have limited CG in the first few years.
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I agree with Geoff here. We bought a 1 bedder in Sydney last year for $590k. It last traded in 2004 for $525K when it was bought brand new. Admittedly back then was just after the top of the boom though aswell.

Not trying to spruik, just maybe do some dd in this area.
 
charlieandkath said:
I agree with Geoff here. We bought a 1 bedder in Sydney last year for $590k. It last traded in 2004 for $525K when it was bought brand new. Admittedly back then was just after the top of the boom though aswell.

Not trying to spruik, just maybe do some dd in this area.
Click to expand...

I agree with you both. These units are significantly above the price of other Canberra stock, even in the same area.
 
charlieandkath said:
I agree with Geoff here. We bought a 1 bedder in Sydney last year for $590k. It last traded in 2004 for $525K when it was bought brand new. Admittedly back then was just after the top of the boom though aswell.

Not trying to spruik, just maybe do some dd in this area.
Click to expand...

Having said the above it maybe well noting the positives. The positives I see are it sounds lika a very unique situation. The rental yield sounds great if it can be achieved. You are only paying 5% now and the 590k is another year or so out. Has it got parking? This is a must especially security parking. No doubt it would being a new development.
 
Hi Craig,

I am pretty familiar with the Canberra market, I would pick the foreshore over Braddon or Turner. If you are going to furnish, you want to be in the Parliamentary triangle to get top $$. Kingston has a village feel that Braddon lacks, and although someone said it is filled with yuppies, they are the ones who will happily part with their money for prestige.

The complex just next to where you are looking, Aspire, is very poorly built, is about 12 months old and having flooding problems - already getting a bad reputation.

Have a look at these 1 bedroom units around 600K, these are both in New Acton, both have water views/glimpses. They are both built by Molonglo group - they do a very good job. have a look at what they have built, always pretty nice.

http://www.allhomes.com.au/ah/act/sale-residential/25-edinburgh-avenue-acton-canberra/1316770447011

http://www.allhomes.com.au/ah/act/s...cus-clarke-street-city-canberra/1316782195011

Find out who the builder of the new foreshore ones are, and check their other work.

There is talk of an oversupply of units in Canberra.

Just a few thought for you!
best of luck
 
Thanks for all the feedback. I was looking at a development on “Kingston Islands” called Bridgepoint. It is a development that has only 40 or so apartments with underground parking and this is apparently the only Island development to be made in Canberra. It is directly across the road from the new Marina and the view was north towards the bridges and into town. I've no doubt there are good rental returns to be made if you can secure the right tenant, but the problem is I can't stop thinking who would I sell this too at a higher price later? The people looking in this bracket is quite small to sell to if I needed.

I'm now looking at a few new developments, one of them which is going next to the Rex. Certainly there will not be the same views or weekly rental return opportunities, but the cost is much cheaper. These will be ready in 2013 which with the Aussie dollar so high and me getting paid in USD$ is quite appealing.
 
Be careful when buying units that have been built in Canberra in the last few years. The building industry here is self-regulated, and consequently we have really shoddy buildings and dodgy builders. Some companies have really bad reputations. The Kingston Foreshore is renowned for havng units which regularly flood, bathrooms with no waterproofing, windows falling out, and issues which get very expensive for body corporate members. I would recommend that you never buy into the following: BridgePoint, Dockside Kingston, Realm Park, One Sydney Avenue.
Although Bridgepoint have views over the lake, watch out for body corporate fees. There are two body corporate fees for Bridgepoint, as only the 32 or so units have access to the four lifts: which means that every 7 or so units will be paying for maintenance of one lift--that is likely to be really expensive. Then there is another body corporate for the 8 or so double-storey dwellings at Bridgepoint.
Whilst other units and houses in Canberra have risen steadily over the years, prices at the Waterfront complex, also overlooking the lake, have not risen at all since they first went on the market about 10 years ago.
 
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