Waterford Properties have achieved $30 million in pre-sales on the Scott Street project at Kangaroo Point despite uncertain economic conditions.
Topping the contracts so far has been a $6.3 million apartment (one of their typical configurations) – which buys a 3-bedroom, 3-bathroom pad spread over 428sq m.
It has a huge 88sq m balcony with a 21 metre frontage to city and river views.
Rather than an explosive Hollywood movie demolition, developer Waterford Properties is dismantling the bright green establishment floor by floor – which is expected to take four to five weeks.
It's the end of an era for the small 24 self-contained room hotel built in 1980.
"It has always been an easily identifiable building because of its amazing location, quirky colour and red neon signs. But the cutting-edge design of our new building will ensure it remains a very well known location in Brisbane," said Waterford Properties managing director Mike Kavali.
Mr Kavali said the recent run of activity at Scott Street was proof Brisbane's prestige property market was continuing to flourish.
"Scott Street has been so successful because it meets the demands and needs of the high value purchaser – brilliant location, great design and finish and luxury house size dimensions," he said.
Hutchinson Builders have been awarded the contract to construct the 12-storey tower, with construction due to be completed by early 2010.
"Their level of experience in the luxury market in Brisbane and their commitment to work with their clients throughout the project was the major reason for this," said Mr Kavali.
"It has been a lengthy process to reach this stage in the project so everyone involved will be extremely excited to see construction start."
Colliers International marketing agent Denise Gustafson said five of the one-per-floor apartments had sold with another under contract.
"Buyers vary from couples with no kids to baby boomers and they are all local business people coming from larger homes or upgrading from existing larger apartments and penthouses," said Ms Gustafson.
"The purchasers have high expectations at these prices and with Scott Street they won't be disappointed," she said.
"Each new development sets a new benchmark and that benchmark is usually broken with the next development – but Scott Street will withstand a lot of new developments before it's benchmark is ever reached."
Colliers International residential state director John Egan said the Brisbane market was now following a worldwide trend.
"Residential land ownership has been surpassed in importance by the need to be in the best possible position or location to suit an individual's lifestyle preference," he said.
"High value inner city apartments in great locations can have a higher value than individual luxury homes."
Mr Egan said the Brisbane top-end apartment market had been growing very substantially over the past two years.
There have been 107 $3 million-plus apartments' sales in Brisbane since mid 2006.
"With the recent sales success of Scott Street, The Macrossan, Empire Square and Waterfront, and a further new release shortly, this figure could be close to 200 by the end of 2008," he said.
Mr Egan said Scott Street apartments should appreciate at a better rate than the general residential market due to its unique position and development form.
"It would be very difficult form of development to duplicate in Kangaroo Point or most parts of Brisbane in the future."