Posted by admin on 29 May 2008
We didn’t spot any Councillors in the audience but around the same time of Bees Nees seminar last week and our ‘sneak-peek’ at property in the year 2020, BCC has moved to allow greater building heights in the South Brisbane/West End area. The Lord Mayor’s been quoted supporting up to 30 storey in selected near-city areas and up to 12 storey along the river.
Contemplating the population targets set by the State Government, the Brisbane City Council is looking to areas surrounding the CBD, and taller towers to accommodate more people. The announcement’s generated the odd headline or two but it seems the broader public may be accepting Brisbane’s evolution in this direction.
More than 240 locals attended our 2020 seminar, with local resident and planner Andrew Crawford mapping out this pocket’s transition, and market commentator Michael Matusik offering his insight. Michael reminded us that looking back 12 years our median house sale was just $132,750, and with that now past $600,000 it isn’t hard to imagine his predicted $1.5million price tag in the year 2020.
Notes from the seminar are available at the Research page of our website, along with a link to Michael’s full presentation. We hope you find it interesting.
Tags: Brisbane City Council, Brisbane home design, Brisbane housing supply, Michael Matusik
Posted in Brisbane's sales market, South Brisbane and South Bank, trends in Brisbane property | No Comments »
Posted by Rob Honeycombe on 10 October 2007
Many apartment buyers insist on finding a place with an ensuite, convinced that it’s a key to both “liveability” and that holy grail of real estate, maximum capital gain. There are plenty of advantages in having a second bathroom and in a 3 bedroom apartment we’d suggest it’s pretty much a requirement. In shared 2 bedroom households the idea of a bedroom and adjacent bathroom for each occupant is popular, and makes living with a cookie-thieving, loud music playing flatmate that bit more tolerable. But with so many couple and lone person households we wonder whether the extra cost of that second bathroom really ever pays for itself?
In rental returns the answer is – probably not. As examples we’ve looked at two inner city apartment buildings, one in the CBD and one in Spring Hill, where there are 2 bedroom apartments of very similar size, view and design. In each case one has an ensuite and the other doesn’t. And the rents? In Spring Hill it’s $420 with one bathroom and $450 right next door with a second bathroom. The CBD tower achieves $560 for a 2 bed, 1 bath apartment and $600 for its ensuited neighbour.
Any new apartment in Brisbane’s inner city now needs to be priced at around $7000 per square metre to be viable for development, and more of course in prime locations. So for an 8m2 ensuite (which is one of the most expensive areas to build) there needs to be a price premium of at least $60,000 to justify inclusion in the apartment. To earn a 5% gross return to an investor that’s $57 per week extra rent. Possible but not likely.
And how about price? In one CBD building we’ve seen two apartments, side by side, sell over the past month – one for $490,000, the other for $620,000. The difference? Around 15m2 extra space including an ensuite! In the same way buyers still flock to big backyards in the ‘burbs, many inner city apartment purchasers remain determined to buy with an ensuite, regardless of whether they actually need it. There’s a premium priced into the market that we believe mightn’t be retained in the future as affordability – for both buyers and tenants – causes a re-think on surplus bathrooms.
And with future water restrictions we probably won’t be able to use the shower anyway!
Do apartments need a 2nd bathroom? Tell us what you think!
Tags: Brisbane home design, Brisbane rents, household types, Spring Hill Brisbane
Posted in Brisbane CBD, Brisbane's rental market, Brisbane's sales market, Spring Hill, architecture and renovation, trends in Brisbane property | No Comments »
Posted by Rob Honeycombe on 21 June 2007
With more domestic animals in Queensland than humans it was only a matter of time til we heard the patter of little paws throughout the inner city. While landlords may not be as open to the idea, owner-residents are bringing their 4-leggers with them in big numbers. Across Australia almost two-thirds of households have a pet – there’s 819,000 dogs and 443,000 cats in this state alone!
So rather than designing near city apartments, townhouses and small lot homes to be child-friendly, architects need to be thinking about the moggies and rat-sized dogs that provide company (and security) for so many Brisbanites. In many countries of course pets have co-habitated with us for many years in medium and high density. Experts say a view of the outside world, places for play and noise separation from neighbours are some of the big issues.
Inner city living appeals to households pre-kids, no-kids and post-kids and naturally these groups are often the same ones to enjoy a pet’s company. So it’s simple logic that if you go to sell you’ll take longer and may get a lower price if pets aren’t allowed in your building and a huge part of your market is ruled out. Landlords know that allowing a pet often produces a premium rent, and managed well, the impact on the property should be minimal if any.
Despite what you’ve heard most apartment buildings can accept pets. The standard Queensland by-laws give the committee rights to approve an animal, and it’s rare for the developer to have changed these in the set-up. Usually it’s the committee that haven’t had help dealing with the issue so, worried about potential for complaints (and in an unpaid and thankless job) they naturally duck for cover when the question’s raised. We recently sold a penthouse apartment where the owners’ main reason for moving was to buy a dog. One major development recently promoted its pet-friendliness as a key selling feature in a big ad campaign.
Of course there’s also a market for those who aren’t happy to share the lift with a sniffy-nosed mutt and some buyers are seeking out apartments where pets are banned. But with so much interest, and money, in the issue we do expect plenty more inner city buildings to bite the bullet and adopt some sensible rules for living in harmony with our furry, feathered and finned companions.
Tags: body corporate issues Queensland, Brisbane home design, pets, renting to pets Brisbane
Posted in Brisbane's rental market, Brisbane's sales market, trends in Brisbane property | 1 Comment »
Posted by Rob Honeycombe on 4 April 2007
A new and interesting trend to watch is apartment amalgamations, where two or more inner city apartments are combined into one, with walls and occasionally floors opened up to create “super apartments”. Often the completed apartments are larger than free-standing homes, the idea is now breathing life into some older buildings in Sydney , and we’d expect Brisbane to follow suit. Many inner city apartments were designed predominantly for the rental market, but with surging demand from empty-nesters and other owner-occupiers there’s a growing case for taking smaller apartments in prime locations, bringing in a clever architect and a patient builder, and creating a home that’s just as you’d like it.
A well-known southern example – Aussie Home Loans boss John Symonds created a 520m 2 penthouse at Walsh Bay by consolidating two 3 bedroom apartments into one. That apartment sold last year for a NSW apartment record of $16.5 million. The simplest way to find a super apartment of course is to buy off-the-plan and convince the developer to redesign. The top floor of Brisbane ’s Riparian Plaza was a recent example, with the owners now occupying more than 1000m 2 (that’s almost a quarter of an acre!) South Bank’s “Saville” building is home to a consolidated apartment, and there are reportedly early double-sales in the new “Skyline” and “Vision” towers in the city, where buyers had new designs produced to ensure their very individual slice of property heaven.
Given the limited riverfront land in our CBD we’d expect to see consolidations happen here over the next couple of years. There will be few new apartments built and many 1 bedroom and smaller two bedroom apartments are now “under-capitalised” for their location. So how will the neighbours feel? In Sydney the Darlinghurst “Horizon” building has drawn up guidelines for amalgamations as it’s happening so often. There’s been a positive response as occupant numbers generally fall, and owners with more money invested in the tower are taking a greater interest in its affairs.
Might be time to start talking to that neighbour again!
Tags: body corporate issues Queensland, Brisbane apartments, Brisbane home design, Riparian Plaza Brisbane, Saville apartments South Bank Brisbane, Skyline apartments Brisbane, Vision Tower Brisbane
Posted in Brisbane CBD, Brisbane's sales market, architecture and renovation, trends in Brisbane property | 1 Comment »
