Inner Brisbane apartment market picks up as Devine reports 90% of Hamilton Harbour towers sold out

Property developer Devine has reported sales of 425 apartments in the first two towers of its $500 million Hamilton Harbour mixed-use development and an overall better outlook for the inner-Brisbane housing market.

Devine reported the sales success at Hamilton Harbour as one of the highlights of its financial year as it reported an underlying profit after tax of $11.1 million but a statutory after tax loss of $12.9 million.

The result was within the prior guidance issued by the company in June.

In its previous annual results Devine reported a net profit after tax of $20.2 million - a 147% increase from the previous year.

Devine managing director and CEO David Keir said the company was “particularly pleased with the progress at Hamilton Harbour".

Taking a wider view, Keir said property and housing markets continued to be “impacted by low consumer confidence, with demand hampered by global and domestic economic uncertainty”.

“Sales levels over the past 12 months were also impacted by the lending practices of banks and the conservative approach taken by valuers and the winding back of government stimulus in our key markets.”

Devine says 90% of total apartments in the two Hamilton Harbour towers have now been settled.

Construction of both towers is now complete with a third tower now under construction.

There are 13 apartments available for purchase in tower one and 31 available in tower two.

Devine says the inner-Brisbane market, the focus of more than 40 apartment projects by a variety of developers, is now stable after a “prolonged period of weakness” with successive quarters of good volume sales.

The Hamilton Harbour precinct located between Racecourse Road and the Brisbane River in Hamilton is a joint venture between Devine and Leighton Properties with one-bedroom apartments starting at $425,000.

Devine says price is continuing to drive the majority of sales with 70% of unconditional sales under $550,000.

The Midwood report recorded 30 sales at Hamilton Harbour in the May quarter with a median price paid per square metre was $6,831 – making it the second strongest selling inner Brisbane projects over the quarter behind Madison Heights.

Devine expects Tower three settlements to commence prior to December 2012 and contribute to current year earnings with almost 70% of this tower contracted.

Devine says one of the other highlights for the year was development approval being granted for its $1.4 billion master-planned residential community in Gladstone.

Marketing of the community commenced in February 2012 with the first two stages sold out within two months.

Devine expect core markets in Queensland, Victoria and South Australia to start showing improvement throughout the 2013 calendar year as the combined impact of lower interest rates, improved housing affordability and historically low unemployment help to improve sentiment towards residential property.

Devine has a development pipeline of 14,500 lots.

For insights into the inner Brisbane property market, download Property Observer’s free ebook: Brisbane's inner-city urban renewal

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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