Why The Hudson's 'skyhomes' in Brisbane would make Sydney-siders green with envy

A three-bedroom skyhome for less than $1 million? It’s enough to make Sydneysiders weep into their smashed avocado.

While the Emerald City’s phenomenal price growth has been excellent news for those with a foothold in the market and no particular plans to expand their portfolio any time soon, there are other investment options.

Alex Veal, the principal of Brisbane agency MINT Residential, says the Queensland capital offers strong growth potential, with attractive rental yields in the meantime.

Veal is marketing a new apartment project from developer Twin Ocean Corporation in the suburb of Albion, in Brisbane’s inner north.

The Hudson is the first of three buildings planned as part of an urban renewal drive on the former home of a historic flour mill.

Albion Flour Mill produced flour for Brisbane for 72 years until it closed in 2004. The derelict building was originally included in plans to redevelop the area as part of the revitalisation of Albion village, with higher density buildings near the train station.

Those plans hit a rather large snag when fire swept through the old mill building in 2013, leading council engineers to order its demolition.

The Hudson is less than 100 metres from Albion train station and four kilometres from the city centre.

Veal says the building, which was completed recently, is offering rental returns “generally over 5.4 per cent”.

“Sydney buyers might choose to go to Brisbane as it is far easier and more affordable to get an investment property here,” Veal says. “They can buy a well-located luxury apartment for far less, and need a much smaller deposit overall, which should mean they can bring their investment forward.”

A few years ago, Brisbane was considered a prime investment option, offering solid rental yields and low prices.

“In 2016, the market was talking about the impending apartment oversupply and people started to hold back – and that’s why we’re seeing some really good value purchases in the market now.”

The 15-storey building’s communal facilities include a podium lap pool, barbecues, entertaining and dining areas and a gym. More than half the apartments released in the final sales stage sold within days of the launch.

“There is conjecture about whether this is an oversupply in Brisbane but this many people buying shows there is still large demand for suitable housing and apartment options,” Veal says. “It’s more a matter of delivering the right price and product to the buyer, which we have done here.”

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