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Australand, one of the largest developers in Australia, has received a warm response in Hong Kong to  the pre-sale of Milton Edge, its chic residential project in Brisbane.

'The market response in Hong Kong is excellent. Among 14 units sold through internal sale, five  were sold in Hong Kong,' said Michael Tucker, Australand apartments state manager.

The first batch of units was priced at between A$240,000 (HK$1.23 million) and $825,000, or an average of $353 per square foot.

Buyers paid a 10 per cent deposit with the balance due after completion in 2005.

Milton Edge comprises 62 units measuring 730 sq ft to 1,851 sq ft.

Mr Tucker said the selling price would rise by about 5 per cent after 40 per cent of the project had been sold.

Australand Asian marketing manager Edmond Lai said Milton Edge would have covered car parks, a swimming pool, gymnasium, spa and sauna as well as a mini cinema.

Mr Lai said an onsite manager would be appointed to the project. Management fee per unit would range from $51 to $66 per week.

He estimated that after completion long-term investors could yield a net rental income of about 7  per cent of the 30 per cent down payment.

Overall rental yield for leasing apartments in Brisbane was between 5.7 per cent to 6 per cent, Mr Lai said, adding that market rentals for one- to three-bedroom units ranged from $350 to $750 per week.

Buyers in Hong Kong enjoyed low mortgage interest rates and tax concessions, he said.

Australian banks would extend mortgages of 70 per cent to 75 per cent and charged about 2.6 per cent interest for Hong Kong buyers, compared with 6 per cent to 6.8 per cent for Australian buyers, Mr Lai said.

He said capital gains tax on property sale for overseas buyers was 29 per cent of the net profit but  for residents this was 48 per cent. Overseas investors who resell their property later than 12 months after completion would get a 50 per cent discount on the  tax, he added.

Mr Tucker was confident about the Milton Edge sale since the demand for small- to medium-sized apartments in Brisbane was keen and their capital value had appreciated 20.4 per cent last year.

He expected growth could be sustained in the coming years due to undersupply of new dwellings for sale. Median house prices in Brisbane have soared 72 per cent in the past three years to $250,000 from $145,000 in 2000, according to a research report. It forecast prices would rise another 50 per cent to $375,000 by 2007.

Increasing migration, a low jobless figure as well as  a low vacancy rate contributed significantly  to the potential growth of property values in Queensland, Mr Tucker said.

He said Milton Edge, which is close to Milton Railway Station and the Brisbane central business district and Queensland University of Technology, would reap $30 million if all units were sold.

Australand will continue to seek similar opportunities in Queensland given that the demand for lower density, smaller-sized apartments was strong, Mr Tucker said.



Buyers respond to chic Milton Edge pre-sale