Brisbane,
Kelvin Grove,
Queensland, Australia
Kelvin Grove,
Queensland, Australia
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Urbanedge
Brisbane,
Kelvin Grove,
Queensland, Australia
Kelvin Grove,
Queensland, Australia
1, 2 or 3-bed rooms available
A$ 397,000 and above
A$ 397,000 and above
Size of project:
3 residential apartment buildings, currently two buildings:
The Horizon (12 floors/122 units) & Vista (6 floors/73 units) Total 195 units consisting of 1, 2 and 3-bed room units.
Amenities:
Resort Style Swimming pool, Gym & BBQ area
Body Cororate:
Approximately $ 4,000 per annum
Brisbane City Council:
Approximately $ 1,300 per annum
Key points:
Shopping and Business, Leisure District
Brisbane CBD
Kelvin Grove Urban Village
Kelvin Grove Park
Roma Parkland
Southbank Parkland
The Barracks Shopping Mall and Restaurants
Caxton Street
inner-city Bypass
Suncorp Stadium
Cinema
Victoria Park Golf Course
Education Institutions
Queensland University of Technology Kelvin Grove Campus
Brisbane Boys Grammar School
Brisbane Girls Grammar School
Kelvin Grove State School
Hospital
Royal Brisbane Hospital
Transport
Brisbane Inner City Bus (Inner-City Bypass)
How to Purchase
$1000 as initial deposit when the buyer decides the unit to purchase
10% of the purchase price payable on signing the contract.
Nothing to be paid until settlement by end of 2012
$1000 will be refunded when the 10% is paid.
70-80% finance to be organized when it settles.
3 residential apartment buildings, currently two buildings:
The Horizon (12 floors/122 units) & Vista (6 floors/73 units) Total 195 units consisting of 1, 2 and 3-bed room units.
Amenities:
Resort Style Swimming pool, Gym & BBQ area
Body Cororate:
Approximately $ 4,000 per annum
Brisbane City Council:
Approximately $ 1,300 per annum
Key points:
Shopping and Business, Leisure District
Brisbane CBD
Kelvin Grove Urban Village
Kelvin Grove Park
Roma Parkland
Southbank Parkland
The Barracks Shopping Mall and Restaurants
Caxton Street
inner-city Bypass
Suncorp Stadium
Cinema
Victoria Park Golf Course
Education Institutions
Queensland University of Technology Kelvin Grove Campus
Brisbane Boys Grammar School
Brisbane Girls Grammar School
Kelvin Grove State School
Hospital
Royal Brisbane Hospital
Transport
Brisbane Inner City Bus (Inner-City Bypass)
How to Purchase
$1000 as initial deposit when the buyer decides the unit to purchase
10% of the purchase price payable on signing the contract.
Nothing to be paid until settlement by end of 2012
$1000 will be refunded when the 10% is paid.
70-80% finance to be organized when it settles.
Developer: Pradella Pty. Ltd.
Builder: Pradella Pty. Ltd.
Architecture: Whitearchitecture
Expected Completion: End of 2012
Builder: Pradella Pty. Ltd.
Architecture: Whitearchitecture
Expected Completion: End of 2012
1, 2 or 3-bed rooms available
A$ 397,000 and above
A$ 397,000 and above
Size of project:
3 residential apartment buildings, currently two buildings:
The Horizon (12 floors/122 units) & Vista (6 floors/73 units) Total 195 units consisting of 1, 2 and 3-bed room units.
Amenities:
Resort Style Swimming pool, Gym & BBQ area
Body Cororate:
Approximately $ 4,000 per annum
Brisbane City Council:
Approximately $ 1,300 per annum
Key points:
Shopping and Business, Leisure District
3 residential apartment buildings, currently two buildings:
The Horizon (12 floors/122 units) & Vista (6 floors/73 units) Total 195 units consisting of 1, 2 and 3-bed room units.
Amenities:
Resort Style Swimming pool, Gym & BBQ area
Body Cororate:
Approximately $ 4,000 per annum
Brisbane City Council:
Approximately $ 1,300 per annum
Key points:
Shopping and Business, Leisure District
- Brisbane CBD
- Kelvin Grove Urban Village
- Kelvin Grove Park
- Roma Parkland
- Southbank Parkland
- The Barracks Shopping Mall and Restaurants
- Caxton Street
- inner-city Bypass
- Suncorp Stadium
- Cinema
- Victoria Park Golf Course
- Queensland University of Technology Kelvin Grove Campus
- Brisbane Boys Grammar School
- Brisbane Girls Grammar School
- Kelvin Grove State School
- Royal Brisbane Hospital
- Brisbane Inner City Bus (Inner-City Bypass)
- $1000 as initial deposit when the buyer decides the unit to purchase
- 10% of the purchase price payable on signing the contract.
- Nothing to be paid until settlement by end of 2012
- $1000 will be refunded when the 10% is paid.
- 70-80% finance to be organized when it settles.
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Area Characteristics - "A Sleeping Giant"
Understood to be one of Brisbane's foremost developing precincts, Kelvin
Grove is located two kilometres north of Brisbane's Central Business District.
This inner city locality provides direct access to a myriad of modern
conveniences and amenities. The success of mixed-use projects such as the
Kelvin Grove Urban Village has contributed to the development of major
business, education and medical facilities within the immediate proximity
along with a myriad of cafe and shopping alternatives within walking distance.
Kelvin Grove has successfully integrated residential living with commercial
and professional activities.
The Kelvin Grove residential real estate market has strongly benefited from the continued interest of inner city living. Apartment product which is competitively priced and suited to the surrounding demographics will appeal to the currently active buyer who demands a low maintenance lifestyle enhanced by the proximity to town and surrounding amenity, all of which can be provided in a correctly structured densified and dynamic living environment. As a result the precinct has demonstrated strong price growth historically and continued rental demand from those who seek the conveniences associated with inner city living.
Significant investment has been made by the state government, delivering considerable local amenity and transport infrastructure to the region which includes the Inner Northern Busway, the Clem 7, the future Airport Link which is under construction and the local emphasis on green space and liveability. The combination of these elements has resulted in the area offering strong investment potential in the longer term.
Kelvin Grove Apartment Market - Ten Year Sales Cycle
Prepared by Colliers International Research Source: RP Data
Kelvin Grove New Apartment v Existing Apartment Median Differentials
The Kelvin Grove Apartment Market - "Strong Long Term Growth"
An overview has been provided of the new and existing apartment market within the suburb of Kelvin Grove, providing a complete understanding of the apartment stock within the precinct. The suburb of Kelvin Grove promotes a strong investment opportunity for the potential residential apartment purchaser. Growth in median unit price, rising rental returns and investment by public and private sectors in infrastructure and local amenity, allows for strong impending future growth.
Upon analysis of the median sale price recorded for residential apartment settlements within the Kelvin Grove local area, it can be established that the precinct has recognised an upward median price trend in the longer term despite the volatility experienced during the latter half of 2008. The twelve months to March 2010 saw a median price growth of 6.5%, whilst the ten year compounding growth rate of 10.9% was established to record a median sale price of $415,000 for existing apartment stock. This suggests that those who have purchased residential property in recent years have seen strong returns in the suburb of Kelvin Grove.
In terms of the number of settled apartment sales registered within the suburbs, levels of transactions recorded on six monthly periods have returned to those prior to the Global Financial Crisis. The past six months saw a total of 68 settled transactions occur in Kelvin Grove. The majority of these existing apartments, 76%, transacted between $300,000 and $499,999. This
statistic is heavily weighted by older walk-up style apartment sales within the
precinct and is representative of the active buyer group who were seeking
price pointed real estate.
In terms of new apartments versus existing resale stock, it should be
recognised that new apartments demand an inherent premium.
New apartments have historically
demanded a significant premium with the median up to 100% above the
existing market. On average however, the differential between new stock and
existing apartments has been 42% over the past ten years. During the most
recent six month period however, due to a low number of new recorded
transactions, the median price of new settled sales has contracted to remain
only 6% above the existing resale market.
With regard to new apartment transactions into the future, activity and
development is set to be focussed on the Kelvin Grove Urban Village. As a 16
hectare master-planned community and a commitment by the Queensland
Government to deliver a well connected master planned community, the
Village which is located less than 2 kilometres from the CBD, will recognise
significant change. Density and community will be focussed around this key
mixed use neighbourhood which provides education, employment and
transport infrastructure to the local population. Only two residential sites
remain for sale in the KGUV and a total of approximately only 600 new
apartments are planned for the entire suburb. This suggests a limited supply
in the near future compared to other Inner City regions, such as Bowen Hills
and the Fortitude Valley, which have over 3,500 apartments planned within
their local areas.
Resales Analysis - "Capital Growth Remains Positive"
A unit resales analysis was undertaken in order to provide a fair indication of
the unit market by establishing the true value and returns through investment
in Kelvin Grove apartments. Analysis was undertaken into unit holding
periods and capital growth on all apartments held for longer than a twelve
month period.
The past ten years has seen a significant change in capital returns for property
owners in Kelvin Grove on an annual basis. The most recent twelve month
period to March 2010, despite the volatile economic environment of late, has
seen a very strong average annual capital growth of 7.1% for those who exited
the property market during this period. This is a significant change from the
1.2% average growth recorded ten years prior, inherently indicating the growth
in value of residential apartments in the past decade and underlying demand
placed upon Kelvin Grove apartment product.
Over the ten year period, apartments within Kelvin Grove have been held for
an average of 6 years before being resold. This suggests that the Kelvin
Grove apartment market is tightly held when compared to the Brisbane CBD
whose stock is only held for approximately four years.
Rental Market - "Low Vacancy Drives Returns for the Investor"
Considering 56 per cent of residents within Kelvin Grove currently live in a
rental tenancy, it becomes extremely important to understand the local
demographics which reside within the area and the returns which are
achieved through these tenancies.
According to the ABS census data, the majority of residents which dwell within
Kelvin Grove are aged between 20 and 34 years of age, equating to 43% of the population. This suggests there is a high proportion of students and professional individuals which are seeking an inner city abode. This is partly due to the
central locality and walkable amenity but also due to the slightly more affordable rent in comparison to the CBD.
The Kelvin Grove rental market continues to grow in dollar terms in the longer term. The period ending June 2010 has registered a slight tightening in median
rents achieved in comparison to the record highs established twelve months prior. Factors such as housing affordability, tightening vacancy rates and the
underlying demand for inner city apartments, has however, forced renters to pay a median weekly rent of $340 per week in Kelvin Grove, equating to a growth of
7% per annum over the past five years. A two bedroom apartment on the other hand is seeking a median weekly rent of $450 per week as of June 2010,
translating into a growth of 6% p.a from 2005. As can be recognised by the Kelvin Grove asking rents table, actual weekly rents being sought by landlords is well
above the medians discussed, whereby newer residential product achieves a market premium.
When median prices are analysed against median rents for Kelvin Grove and the Brisbane LGA it can be identified that Kelvin Grove records a greater return on
investment dollars. Kelvin Grove has returned a solid yield of close to 4% and gross returns on investment of approximately 11% through the twelve months to
March 2010. This makes Kelvin Grove an attractive investment alternative considering the Brisbane LGA has seen yields of 4% and gross returns of only 8%.
Understood to be one of Brisbane's foremost developing precincts, Kelvin
Grove is located two kilometres north of Brisbane's Central Business District.
This inner city locality provides direct access to a myriad of modern
conveniences and amenities. The success of mixed-use projects such as the
Kelvin Grove Urban Village has contributed to the development of major
business, education and medical facilities within the immediate proximity
along with a myriad of cafe and shopping alternatives within walking distance.
Kelvin Grove has successfully integrated residential living with commercial
and professional activities.
The Kelvin Grove residential real estate market has strongly benefited from the continued interest of inner city living. Apartment product which is competitively priced and suited to the surrounding demographics will appeal to the currently active buyer who demands a low maintenance lifestyle enhanced by the proximity to town and surrounding amenity, all of which can be provided in a correctly structured densified and dynamic living environment. As a result the precinct has demonstrated strong price growth historically and continued rental demand from those who seek the conveniences associated with inner city living.
Significant investment has been made by the state government, delivering considerable local amenity and transport infrastructure to the region which includes the Inner Northern Busway, the Clem 7, the future Airport Link which is under construction and the local emphasis on green space and liveability. The combination of these elements has resulted in the area offering strong investment potential in the longer term.
Kelvin Grove Apartment Market - Ten Year Sales Cycle
Prepared by Colliers International Research Source: RP Data
Kelvin Grove New Apartment v Existing Apartment Median Differentials
The Kelvin Grove Apartment Market - "Strong Long Term Growth"
An overview has been provided of the new and existing apartment market within the suburb of Kelvin Grove, providing a complete understanding of the apartment stock within the precinct. The suburb of Kelvin Grove promotes a strong investment opportunity for the potential residential apartment purchaser. Growth in median unit price, rising rental returns and investment by public and private sectors in infrastructure and local amenity, allows for strong impending future growth.
Upon analysis of the median sale price recorded for residential apartment settlements within the Kelvin Grove local area, it can be established that the precinct has recognised an upward median price trend in the longer term despite the volatility experienced during the latter half of 2008. The twelve months to March 2010 saw a median price growth of 6.5%, whilst the ten year compounding growth rate of 10.9% was established to record a median sale price of $415,000 for existing apartment stock. This suggests that those who have purchased residential property in recent years have seen strong returns in the suburb of Kelvin Grove.
In terms of the number of settled apartment sales registered within the suburbs, levels of transactions recorded on six monthly periods have returned to those prior to the Global Financial Crisis. The past six months saw a total of 68 settled transactions occur in Kelvin Grove. The majority of these existing apartments, 76%, transacted between $300,000 and $499,999. This
statistic is heavily weighted by older walk-up style apartment sales within the
precinct and is representative of the active buyer group who were seeking
price pointed real estate.
In terms of new apartments versus existing resale stock, it should be
recognised that new apartments demand an inherent premium.
New apartments have historically
demanded a significant premium with the median up to 100% above the
existing market. On average however, the differential between new stock and
existing apartments has been 42% over the past ten years. During the most
recent six month period however, due to a low number of new recorded
transactions, the median price of new settled sales has contracted to remain
only 6% above the existing resale market.
With regard to new apartment transactions into the future, activity and
development is set to be focussed on the Kelvin Grove Urban Village. As a 16
hectare master-planned community and a commitment by the Queensland
Government to deliver a well connected master planned community, the
Village which is located less than 2 kilometres from the CBD, will recognise
significant change. Density and community will be focussed around this key
mixed use neighbourhood which provides education, employment and
transport infrastructure to the local population. Only two residential sites
remain for sale in the KGUV and a total of approximately only 600 new
apartments are planned for the entire suburb. This suggests a limited supply
in the near future compared to other Inner City regions, such as Bowen Hills
and the Fortitude Valley, which have over 3,500 apartments planned within
their local areas.
Resales Analysis - "Capital Growth Remains Positive"
A unit resales analysis was undertaken in order to provide a fair indication of
the unit market by establishing the true value and returns through investment
in Kelvin Grove apartments. Analysis was undertaken into unit holding
periods and capital growth on all apartments held for longer than a twelve
month period.
The past ten years has seen a significant change in capital returns for property
owners in Kelvin Grove on an annual basis. The most recent twelve month
period to March 2010, despite the volatile economic environment of late, has
seen a very strong average annual capital growth of 7.1% for those who exited
the property market during this period. This is a significant change from the
1.2% average growth recorded ten years prior, inherently indicating the growth
in value of residential apartments in the past decade and underlying demand
placed upon Kelvin Grove apartment product.
Over the ten year period, apartments within Kelvin Grove have been held for
an average of 6 years before being resold. This suggests that the Kelvin
Grove apartment market is tightly held when compared to the Brisbane CBD
whose stock is only held for approximately four years.
Rental Market - "Low Vacancy Drives Returns for the Investor"
Considering 56 per cent of residents within Kelvin Grove currently live in a
rental tenancy, it becomes extremely important to understand the local
demographics which reside within the area and the returns which are
achieved through these tenancies.
According to the ABS census data, the majority of residents which dwell within
Kelvin Grove are aged between 20 and 34 years of age, equating to 43% of the population. This suggests there is a high proportion of students and professional individuals which are seeking an inner city abode. This is partly due to the
central locality and walkable amenity but also due to the slightly more affordable rent in comparison to the CBD.
The Kelvin Grove rental market continues to grow in dollar terms in the longer term. The period ending June 2010 has registered a slight tightening in median
rents achieved in comparison to the record highs established twelve months prior. Factors such as housing affordability, tightening vacancy rates and the
underlying demand for inner city apartments, has however, forced renters to pay a median weekly rent of $340 per week in Kelvin Grove, equating to a growth of
7% per annum over the past five years. A two bedroom apartment on the other hand is seeking a median weekly rent of $450 per week as of June 2010,
translating into a growth of 6% p.a from 2005. As can be recognised by the Kelvin Grove asking rents table, actual weekly rents being sought by landlords is well
above the medians discussed, whereby newer residential product achieves a market premium.
When median prices are analysed against median rents for Kelvin Grove and the Brisbane LGA it can be identified that Kelvin Grove records a greater return on
investment dollars. Kelvin Grove has returned a solid yield of close to 4% and gross returns on investment of approximately 11% through the twelve months to
March 2010. This makes Kelvin Grove an attractive investment alternative considering the Brisbane LGA has seen yields of 4% and gross returns of only 8%.
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