Brisbane is not expensive - The cheaper Aussie dollar has seen Australian cities ranked by the Economist Intelligence Unit as more affordable. Brisbane is No. 57 ( from No. 35), Sydney No.35 (from No.17) and Melbourne No. 39 (from No. 24).
The world's most expensive city is now in Asia. Tokyo is ranked No.1. Osaka at No.2. Paris is No.3 and Copenhagen No.4. Singapore, our favourite city is No.10.
This bids well for Australian cities as affordable and livable. And "investible"? Prime Australian residential properties should continue to be an attractive investment consideration. Net rental returns are positive in many prime positions ( rental yield in excess of 6% with Australia's cash rate at 3.5% and the standard variable mortgage at approx 5.5%).
Last year, foreigners invested $621million into Queensland residential properties. The largest share from UK ( $106M), NZ ($84M), Singapore ($51M) and China($51M). Other foreigners from 67 countries injected $329million. Foreigners would continue to seize investment opportunities here. Most feel safe with Australia's transparent laws and the timely economics of the cheap A$.
CBD Car Parks. The CBD Festival Car Park on Charlotte Street was sold to Kevin Seymour for around $16 million. The stand-alone carpark building may be redeveloped to include an office tower.
Prime properties. First rate. World class. Two definitions for prime. Prime properties are found in first rate positions - attracting the best and creating greater value as a whole. Investors engage the best vehicle they can use. They buy prime. However it need not be expensive. Just good value.
As from last year, Brisbane City Council has banned further development of public car parks in the CBD as a policy for people to use public transport.
Development costs and carpark ratios have seen new CBD residential developments offering no car park space for one bed room apartments. Two bed-room apartments are alloted one car space. Car park space in a residential building in the CBD currently cost $50,000 approx .
Despite not having an allocated car space, the one bed room apartments have sold well and rented well. Many city residents do not own a car and it is a reason to live in the city. They access public transport and reside in the CBD for the convenience and the time and costs saved in otherwise commuting to and from the suburbs. When required, spare car park spaces are generally available within the building for rent at $50 to $70 per week.
Investors reviewing new apartments for their portfolio may consider M on Mary , a residential development at the heart of the CBD. The apartments are priced at valuation and present good value for its prime and scarce position. Prices start from $323,000 for a one bed plus study apartment and rent for $420 approx a week unfurnished.
Prime properties. First rate. World class. Two definitions for prime. Prime properties are found in first rate positions - attracting the best and creating greater value as a whole. Investors engage the best vehicle they can use. They buy prime. However it need not be expensive. Just good value.
To one investor, it is good value for a CBD waterfront prime apartment with direct water views which requires approximately $53 per week investment. Please see illustration at :
Another investor, good value is a direct waterfront apartment at the Labrador hub which requires approximately $118 per week investment. Please see illustration:
Click here for Silvershore Southport and Labrador have shown substance as investment hotspots in the Gold Coast.
Southport and Labrador are established precincts with popular lifestyle amenities and convenient transport. It is an opportunity now to consider well priced / affordable quality developments with direct waterviews. Check out Silvershore a recently completed development. Coast which is on direct water view is selling "off-the-plan".
Also consider Southport Central in the heart of Southport CBD.
These developments are unique in that they have a position that is scarce and would become increasingly so in time.
Silvershore and Coast are on direct waterfront on Marine Parade Road, Broadwater Labrador. There is a limit to the number of new developments that could be created on this strip. The developments are also favoured by their close proximities to the commercial hubs of Harbour Town and Southport CBD.
Southport Central project in the heart of Southport CBD is next to Australia Fair Shopping Centre, surrounded by Griffith University Medical College, the Gold Coast hospitals, TAFE college, next to the bus exchane, walk to the Broadwaters and has a new train station committed to be placed on the street.
Colliers International's quarterly Gold Coast apartment report revealed that 27 of the 77 new apartment sales in the December 2008 quarter were achieved across Labrador and Southport. The research found the Southport / Labrador precinct was one of two precincts which recorded positive median price growth of 2% for general unit sales for the six months to September 2008, while volume of sales increased by 4.1% over the quarter. The other area which had growth of 1.2% in the unit market in the six months to September 2008 was Northern NSW.
Investors are dreamers. "These days all around us people are telling us two things:
1. whatever you want, forget it. It is impossible, and
2. sit still, preserve resources, lay low.
And yet the people who are succeeding, creating change and (not coincidentally) are happier aren't listening to either of these pieces of advice. ... Frank Sinatra had it wrong. Your dream shouldn't be impossible, but it sure helps if it's improbable. Don't choose your dreams based on what is certain to happen, choose them on what's likely to cause the change you want to occur around you." This is an extract from Seth Godin. We love it. Because investors are dreamers, they design their future starting with an improbable dream. Investors who know their numbers are also entrepreneurs, such the world now desperately need. Remember, in his first congressional speech President Obama expressed that the " future of the American economy relies on the imagination of our entrepreneurs." So does the future of a renewed economy.
Sincerely - Your team at Astute.
