Investors live the high life

14 March 2010

Source : The Sunday Mail, March 14th 2010
Original Author : Michelle Collins

ABBEY Apartments has been named Brisbane’s best apartment investment.
The property topped the list of the city’s best performing apartment blocks in research by PRDnationwide.
Abbey Apartments, at 160 Roma St in the city’s CBD, recorded an average 15.8 per cent growth per annum for the past five years.
According to PRDnationwide Queensland research analyst, Josh Brown, the complex was the only one in Brisbane to reach growth of more than 15 per cent.
An average unit in the Abbey Apartments will be owned for 3.62 years before being re-sold, the report shows.
“These apartments are primarily investment units designed for short term accomodation and, given their affordable price – average sale price $235,700 – and good location, will provide investors with good rental yields,” Mr Brown said.
Second on the list, recording 14.35 per cent growth per annum, was Brisbane’s riverside Riparian Plaza.
Twenty-one apartments have been re-sold in the building since they started selling off the plan in 2001.
“The average hold time between re-sales will vary for different reasons,” Mr Brown said. “But it is interesting to see that the top five apartment buildings have a high hold time…they are tightly held.”
Carrington, on the corner of Alice and Albert streets, recorded 12.9 per cent growth each year followed by Tank Tower, Tank St (12.29 per cent) and Grosvenor Apartments, Edwards St (9.69 percent).
“The median price for resales in the Brisbane CBD has remained relatively stagnant during the past two years as fewer buyers entertained the market and high rental returns encouraged vendors to hold on to their product,” Mr Brown said.
In the most recent one-year period, median growth slowed to 1.1 per cent, taking the median price to $444,500 for the six months to September last year.
While values have stalled for the past couple of years due to economic uncertainty, the outlook is bright, according to Mr Brown.
“Brisbane CBD apartment sales have traditionally been driven by the popularoty of apartment living in convenient locations and good rental returns,” he said.
“Increasing population growth, a growing shortage of new supply and high-asking rents will drive growth as investors see the potential within this market.”

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