QLD South Bank

Hi all,

Just looking for some advice on a particular development planned on 74 Tribune st South Bank.

Just as a preface, I understand that there are massive risks in the area regarding oversupply but I wanted some advice regarding a number of factors regarding this one that may outweigh the potential oversupply risks.

1. Proximity to Busway and Train station.
South Bank Station, in particular, provides direct bus routes to all three major Uni's; UQ, QUT and Griffith. Plus the easy access to rail providing alternative commute routes to Bowen Hills, Spring Hill etc.

2. Education. State High, Sommerville, St Lauries plus easy access to BGS, Churchie, Terrace etc. Not to mention walking distance to Griffith Conservatorium, Design School, SB Tafe, QUT Gardens Point and transport access to other Uni campuses.

3. Lifestyle. South Bank, close to West End, plus the neighbouring Emporium development will house the first Woolies in the area.

4. Employment. 2 stops to the CBD. New Flight Centre Head Office tenanting the building a block down. Train provides easy access to Valley, Central, Bowen Hills. Queens Wharf dev will also bring a new pedestrian bridge to Queens Wharf, which is said to house the Head Office for Echo, albeit only a few hundred jobs.

The dev is said to settle in about 4 years time. Looking to hold for rental yield instead of immediate CG.

These are my thoughts, I think long term it looks positive, but there is still something inside me making me hesitant about it. Also the fact that the developer, Devine, is in a bit of financial strife at the moment doesn't help, but their past developments have been good (Charlotte, Festival, Casino Towers etc)

Any, honest opinion would be great!

 

For me, four years is just too long. So much can change, so you would have to be certain of financing.
Marg

 

I stopped reading at Southbank.

I love Southbank, no way will I buy a new apartment there.

 

The whole of riverside drive--montague rd will be back too back multi level riverfront units within 4 years,so that's all you would want to be thinking about,and there is still several vacant corner blocks within the area that are about to start building,and as by reading your post you have done your home work on the area,the question to ask yourself once settlement comes around and contracts settled as 4 years is a long time,will the value stack up once your fully committed??.

 

I might buy one when it's built out and the dust has settled. Retire there.

 

Sure I understand that there is massive oversupply happening in South Brisbane, namely the West End area where the bulk of the dev is happening, hence Montague Rd. But I would never consider these two areas as of having the same dynamic. The demographics are entriely different, as are the above ease of access to the areas aforementioned.

This is probably the way to go

 

Agreed.
There are plenty of apartments available now with rents going down, let alone as more start coming to completion.

 

Supply is going up but so is immigration. As long as population keeps increasing all is good. If buying off plan be careful do do calculation on expected yields.

 

Myeh, I disagree. So do most commentators that I've seen lately.

 

100% agree with @Bran.

 

I'd only buy apartments there if an oversupply glut launched, got horrendously whittled down in values, and demand slowly started catching up. At that point it'd be worth it but immediate gains would only occur from biluying very very well.

This seems unlikely to occur, however. IMHO there are much better places.

 

Agree with all your assessments of the positives of the area but simultaneously agree with everyone else, the supply side is just too high to make it a good buy in the short term.