Luxury apartment projects in the Brisbane CBD continue to show their strength in the wake of the global credit crisis and interest rate rises, with buyer interest going strong at the $1 billion Vision tower.
Vision's developer, Austcorp Group Ltd, continues to defy market forces issuing seven contracts and one expression of interest in the last few months, totalling $8.378 million.
The news comes after the company reached $250 million in sales milestone of unconditional apartment sales at Vision earlier this year.
Austcorp Executive Chairman Trevor Chappell said luxurious apartments stood out despite the pressure on the overall market.
"It is quite obvious that there has been a two tier market in property and that the top end has always performed better, and for Vision, it surely continues to perform," he said.
"The amount of enquiries and deposits tells us that buyers continue to see Vision as a good investment. We are not surprised because usually people prefer the brick-and-mortar real estate to shares when there is huge volatility in the financial markets, Vision is a good piece of real estate whichever way you look at it."
"We find most buyers in the market already know what they're looking for in terms of design quality, features and finishes. Vision meets those expectations while offering buyers extended settlement till 2011," Mr Chappell said.
The recent run of activity at Vision follows predictions from economic forecasters that Brisbane's property market will stabilise.
According to leading property analyst, Michael Matusik, the residential property market is turning into a buyer's market as older investors sell stock in the wake of a global credit crunch.
In his March Snapshot, Mr Matusik cites population growth, employment growth, a robust economy and an underlying demand for residential dwellings as indicators that the Brisbane property market will regain its momentum during 2008.
A report compiled by Colliers International shows changing demographics and tastes are resulting in increased demand for inner-city housing.
According to the report compiled by research analyst Alison Timchur, Brisbane was trending towards smaller households, particularly in the city where there was a noticeable increase of one-person households and couples without children who were mostly interested in inner city living.
"The recent stock market jitters might see even more investors returning to the ‘tried and true' property market," she said.
"South East Queensland has some fantastic projected population growth, so I think it's a fairly good prospect for property investment."
Mr Chappell said foreign investors now living in Brisbane, Sydney and the Gold Coast, formed the majority of recent purchasers in the Vision project.
"Inner-city apartment dwellers are looking for spacious units which offer a luxurious lifestyle without the hassles, while investors are looking to Vision for the potential of strong capital growth," he said.
"Brisbane's population is expected to swell by up to 130,000 extra people by 2016, reaching approximately 1.1 million, and according to leading property analyst group BIS Shrapnel, house prices across Brisbane are expected to rise as much as 30 per cent over the next 5 years."
"As demand for inner city apartments continues to outstrip supply in the city that has been pinpointed as the fastest growing capital in Australia, astute investors are realising that the time to purchase at Vision is right now."
In the city's heart, Vision will stand 287 metres tall and will be Brisbane's largest residential, commercial, retail and tourism development.
In addition to 401 apartments, the tower will have offices, shops, restaurants and lifestyle facilities, a seven-level basement with parking for 770 vehicles, Brisbane's first observation deck tourist attraction and the first 24-hour concierge service.
Vision will include a street level plaza covering around one quarter the size of the Queen Street Mall, featuring retail outlets and restaurants.
Residences at Vision are priced from $510,000 for a one bedroom apartment through to $4,495,000 for a luxurious two-storey apartment.
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