Why Hasn't Brisbane BOOMED

Makes a lot of what we do on Property Chat a bit inadequate if anywhere we buy gives a healthy year on year increase.
what's the point in research then haha?

 

Personally I've made most of my money buying in the 6-9 o'clock regions of a cycle. By the time the boom or close to the boom comes/is reported/is reflected by stats, a lot of the good money is already off the table.

 

@Leo2413 Do you sell some stock once you’ve made your money towards the end of a cycle? Or do you hold onto everything? (Excluding your developments obviously)

 

Besides the stock I develop on my own and JVs, I generally hold onto all my assets. With the stuff we develop, I hold some (so the asset base is always expanding) and sell some. The ones I sell, part of that cash I splurge on lifestyle choices and the rest I reinvest into other projects.

 

I know you are kidding!
I wish to add another within inner BRI to our portfolio....

 

Thanks Rolf,
Have the finance in order, had it for a while and have around 2.5 years before needing to look at it, plus deposit, so just wishing to start young family members off. One invested at similar ages 18-19 years old so second one wants to do the same. Lucky me, the kids are continuing to build on....but are still young, single and also studying.
Have started looking so time will tell...

 

a few studies have indicated that apartments in Brisbane have bottomed and are on the way up for a few months. One article has indicated that a 6 % gain is on the cards for next year. Any real observations to reinforce this vieew?

 

Rubbish. Not going to happen. If anything many will still be dropping. Still too much supply. Not going to see any good gains on high rise apartments for a long time. Except for some exceptions due to unique position or something.

 

Trouble is all apartments are not created Equal in Brisbane, so many cookie cutter 50sqm high rise stock, think Hamilton/newstead/Southbank

I think the smaller boutique blocks, walk up brick style or something with scarcity is a little more immune from the % falls, and will still have demand on going - think Tenerife woolshed, new farm small complex, potentially Bulimba 4-6 packs, city views and so on.

 

Thanks for the reply, just spoken to a couple of my agents, the rental and sale market has been stabilising for the last few months. The statistic and the sentiments has been improving. Still early days but if the oversupply monster has been tamed, then good days ahead for all Brissy property owners, not just the apartment owners.

CoreLogic Home Property Value Index - Monthly Indices | CoreLogic
Apartment growing the same yearly rate as house, and monthly movement is double houses. I know it's a broad statistic, nevertheless a positive indicator.

Sunny Skies for Brisbane Apartment Market: Opinion
A little bias in the positive side but are backed up by reasonable stats and facts.

All properties are not created the same, so buyer has to do proper DD and market research before committing.
But on the positive side, I really do think Brisbane unit market has bottomed with many bargains to be had. It is now at 6 clock of the property cycle and moving towards 7.

 

Its always 'markets within markets' where the best value/insights/opportunities are found.

 

I feel you are way too optimistic on apartments. I don't think you are going to see any growth on any apartment younger than 15 years old for quite a long time. Unless some really unique feature.
Rising stats are otps settling.

 

I wouldnt be touching new and OTP apartments in Brissy now as investments . Not even with a 50 foot pole.

 

I don’t see, however, any upside in apartments in that city anytime soon. I honestly cannot see any growth whatsoever. There is just so much developable space, even on river banks. I walked from Southbank to New Farm and there is just so much space that can be turned into high rise easily and with minimal effort. I don’t see a crash like many predicted but I don’t see any growth.

 

Hey mate, understand & was always concerned with oversupply on units.. keen to know from ppl on thy ground if your thoughts on growth translate into townhouses in the Morningside area? As in interstate investor bought 3 years ago & seen no signs of that market increasing

 

Brisbane and surrounding cities are seeing big jumps in land prices by all developers. A 400sqm block in inner-city will cost well over $500k the outer suburbs of Brisbane are selling for over $1000/sqm.

In Springfield, a 400sqm block is now around $290k while a 200sqm house will only cost around $210k for a full turnkey home. The market is evolving and you need to keep an eye on new opportunities.

I have come across some new areas that are yet to boom and also has subdivision potential for around $400k.

I have purchased a property and it is subdividable, and others like it may be available at the right price. A prominent developer is about to create 800 blocks of land and they will put a new road at the rear of my block. This means I don't have to do a battle ax subdivision anymore. The benefits are lower development cost, I don't lose land for the easement driveway and have both houses facing the street.

The next step is to door knock the whole street and see who wants to sell and take advantage of the situation. I will project manage the development.

 

And you're not worried about the supply side ?

 

Not really worried. As the 500sqm in the new subdivision will be selling for over $230k

I purchased the original house for $400k in January this year.

I can sell my existing house for $350 plus and I will be left with a 500sqm block that will sell for $230k and will also allow dual living if necessary. My expected profit will be around $100k after costs. The area I am working has not boomed so I also expect to see some appreciation over the next 5 years

 

Nope I don’t. My OCD would kick in. Move over to Relevant thread sunshine!