2013 Autumn

THE PROPERTY REVIEW 

Autumn Quarter 2013 

www.towerlondon.com 

1

Summer Quarter 2012- 2013 

Message From John Tower 

4-5 

The property market is being 

stimulated by investors. 

Refurbishing Properties 6 

Depreciation 6 

What can Tower & London do for you? 7 

Residential Sales 8-17 

Residential Leasing 18-21 

What Drives Yields? 22-23 

Commercial Sales 24-25 

Commercial Leasing 26-27 

Our Offices 28 

Enquiries regarding this magazine should be made to: 

Tower & London 

38 Alfred Street, Milsons Point NSW 2061 

Phone: (61) 2 9956 6500 Fax (61) 2 9956 6522 

Email: reception@towerlondon.com 

Disclaimer: 

The information contained in this publication is for general information purposes only. Readers are advised that while an earnest effort has been taken to 

ensure the information in this document was obtained from reliable sources, Tower & London gives no guarantees or warranties, written or implied, over 

the accuracy of the information provided. Tower & London Pty Limited disclaims all responsibility for any loss or damage suffered as a result of the use of the 

contents of this publication. The views expressed in this publication are those of the writers and do not necessarily reflect the views of the publisher. 

Photography kindly supplied by Lionel Tregret (for contact details please contact Tower & London). 

THE PROPERTY REVIEW 

A quarterly magazine 

published by 


2 3

The property market is being stimulated by investors. 

Confidence is returning to the property market largely as a result of interest rate reductions; in fact, it 

generally started late last year when we noticed offers matching the asking price were coming in soon 

after the property was listed. One measure that many commentators use is the Auction Clearance 

Rates: in February and March 2013 these rates in Sydney were 65% and 64% respectively, according 

to Domain’s APM. Overall, Sydney’s house prices have increased slightly over the past 12 months from 

December 2012; yet, home unit prices increased by about 6% over the same period, this could also 

be attributed to increase in sales 

of, the usually higher priced, new 

developments. 

The same pattern is followed 

in Sydney’s Lower North shore 

property where the house values 

increases have been modest 

over the same period above, 

unit prices have increased at a 

higher pace; for example, in the 

North Sydney Local government 

area, prices jumped by 8% 

according to figures obtained 

from REINSW Property Profile. 

These figures will have to be 

seasonally adjusted, but it is 

a marked increase in values, 

and more interestingly over a 

relatively short period of time, 

largely the second half of 2012. 

Despite these encouraging 

figures, The December 2011 

base figures were an aberration 

$1,000 

$1,000 

2,500 

2,000 

1,500 

1,000 

500 

House Sale Prices 

- 

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 

North Sydney 990 1,135 1,130 1,300 1,258 1,201 1,186 1,215 1,200 1,195 1,276 1,400 1,362 1,452 1,475 

750 

700 

650 

600 

550 

500 

450 

Mosman 1,950 2,050 2,000 2,150 1,988 2,110 2,285 2,350 1,850 2,010 1,780 2,175 2,010 2,030 2,050 

Willoughby 1,150 1,164 1,250 1,312 1,345 1,285 1,250 1,301 1,327 1,240 1,250 1,235 1,230 1,250 1,265 

Apartment Sale Prices 

400 

Mar- 

Mar- 

Mar- 

Jun-09 Sep-09 Dec-09 Jun-10 Sep-10 Dec-10 Jun-11 Sep-11 Dec-11 Jun-12 Sep-12 Dec-12 

10 

11 

12 

North Sydney 519 550 610 635 645 616 630 620 619 598 590 625 621 627 640 

Mosman 529 527 620 695 603 643 645 651 618 610 570 622 623 640 655 

Willoughby 499 520 563 570 600 581 582 600 605 600 570 580 580 585 600 

in my view because they dipped in December and 

then quickly bounced back in March 2012 in the 

three lower north shore local government areas 

we cover in this report. When the March 2013 

figures are released, we’ll have a more informed 

look at the previous 12 months movement, then 

the figures will probably show a slower rate of 

increase; albeit, an definite increase. 

One can only explain this increase in values by 

the increase of number buyers returning to the 

market; and perhaps the lack of properties on the 

market to satisfy this new level of demand; but, 

what we have found to be of substantial increase 

is in the property investor segment; particularly, in 

the $500,000 to $1million bracket for apartments, 

near the railway stations in good buildings. In the 

September quarter 2012, I reported ever so slight 

increases in property values and more or less 

pronounced the bottom of the market had been 

reached earlier that year. This was partly because 

investors had begun enquiring, making low offers, 

and being prepared to negotiate a reasonable sale; 

those early investors have, by now, already saved 

their Stamp Duty as there values have increased 

enough to cover their purchasing expenses. 

Investors drive these types of properties that 

attract quality tenants; when they’re not buying, 

property values stagnate. As interest rates 

tumbled over the term of 2012; rents increased 

steadily during that period, and the year before, 

despite doldrums in sales. This combination of 

rising rents and reduction in interest rates usually 

passes unnoticed for about six months to a year; 

the cleaver investors can sense it, and pick up a 

couple of bargains; and then, the rest will be in 

on the action. Until, what we saw in 2003, where 

some solicitors and accountants from the suburbs 

where colluding with developers to sell to their 

clients investment properties will guaranteed 

returns, that would never be achieved once the 

guarantee period had expired, leaving them well 

short of servicing their loans; culminating in forced 

sales. Lastly, right at the tip of the cycle: property 

spruikers appear, selling sham developments 

to mums and dads in high pressured sales 

environments. 

Six months have definitely passed since investors 

started buying again, and as mentioned, the 

cleaver ones had started earlier. A full quarter in 

2013 has passed, with a high percentage in auction 

clearance; asking prices are being matched on 

Private Treaty sales; and the early signs are that 

values have continued to creep upwards. We are 

well into the year now, there’s still a shortage of 

properties at around the popular $1 million mark. 

Investors are well and truly stimulating the market. 

John Tower 

M.D. Tower & London 

Licensed Real Estate Agent 

Registered Property Valuer 

4 5

Refurbishing Properties 

Are you the owner of an investment property that has seen 

better days? It may be time to think about refurbishing your 

property to maximise your potential income. 

Refurbishing your investment property has many benefits 

beyond the pure cosmetic. A well designed, well maintained 

refurbishment can increase the immediate rental value of 

the property, impact the quality of tenants you attract, and 

influence the value of the property if you decide to sell. 

Whilst refurbishing may seem daunting, with large upfront 

expenses, it doesn’t have to cost a fortune. Simple changes 

such as new light fittings, carpet or a fresh coat of paint, are 

affordable and are the best ways to add quick value to your 

property. Similarly, giving your kitchen or bathroom a quick 

facelift with new doors and handles can drastically change 

the look of a room. 

In addition to increasing the rental value of your property, 

a well presented & well maintained property will not only 

increase the your rental value, more importantly it will 

impact on the quality of applicants you receive and also can 

eliminate lengthy vacancy periods between tenancies. 

Regardless of the size of your refurbishment project, any 

expenses relating to updating your investment property not 

only increase the property’s value, but also increase your 

depreciation allowances, meaning that you can claim back 

on expenses in the future. 

Before 

Jessica Brincat 

Property Consultant 


After 

Depreciation 

Almost 80% of property investors (www.bmtqs.com.au) 

are missing out on thousands of dollars in depreciation 

deduction from their rental property. In the current 

economic climate, it is important for the investors to obtain 

the greatest return from their investment property. 

There is a common misconception that only new properties 

are eligible for depreciation. This is not the case. Whilst 

it is true that new properties attract higher returns 

of depreciation, older properties can produce attractive 

returns also. In fact, in 99% of cases (www.austtaxonline. 

com.au), a deduction of some tangible value is attainable. 

As a building gets older and items within it wear out, they 

depreciate in value. The ATO allows Property Investors 

to claim a deduction related to the building and plant and 

equipment items it contains. This deduction essentially 

reduces the investment property owner’s taxable income 

– they pay less tax! 

All ATO specified plant and equipment items as well 

as building write-off allowance (where the building qualifies) 

can be claimed. Plant and equipment items are basically 

items that can be ‘easily’ removed from the property 

as opposed to items that are permanently fixed to the 

structure of the building. Plant items include mechanically 

or electronically operated assets, even though they may 

be fixed to the structure of the building. Some examples of plant 

and equipment items include: hot water systems, carpets, 

blinds, ovens, cooktops, rangehood, garage door motors, 

air conditioning, and free standing furniture. The building 

write-off allowance is based on historical building costs 

of the building and includes the bricks, mortar, walls, 

flooring, wiring etc. From the date of construction 

completion, the ATO has determined that any building 

eligible to claim depreciation has a maximum effective life 

of 40 years. Therefore, investors can claim up to 40 years 

depreciation on a brand new building, whereas the balance 

of the 40 year period from construction completion 

is claimable on an older property. 

Sophie Wang 

Accountant 


What can Tower & London do for you? 

Executive Leasing 

The main thrust of the business is its leasing department. The majority of the residential leases are negotiated 

to company executives, general managers and diplomats. The properties leased are middle level to exclusive 

apartments, most with prime harbour views. Many major Australian and international companies have entered 

into leases with Tower & London. 

Property Sales 

Apart from considerable private treaty and auction experience Tower & London assist in decorating the property 

for sale or auction in order to realise the highest possible sale price. The sale price often exceeds their valuation. 

Tower & London have sold every property listed within the exclusive agency period. 

Property Management 

Our property management team is focused on delivering the highest quality of customer service and in turn 

ensuring our clients’ interests are a top priority. At Tower & London we have a full time Trust Account who is 

dedicated to ensuring our clients financial matters are given the attention they deserve. 

Property Refurbishment 

Tower & London manage small refurbishment projects. Often apartments in prime locations require upgrading 

in order to maximise returns and increase owner’s equity. Over the years, Tower & London have accumulated an 

efficient team of tradespersons to undertake such projects with high quality and care. 

Valuations 

Property valuations for any purpose are prepared within 48 hours. Expert advice is provided on many technical 

issues concerning property values. Comprehensive feasibilty studies and Discounted Cash Flow analysis (DCF) 

are conducted on small to medium developments and refurbishment projects. 

Commercial Sales and Leasing 

Tower & London has a dedicated commercial department specialising in sales, leasing and management of 

commercial offices, industrial and retail premises. Our clients love the prompt efficient service they receive as 

we treat them like a big fish in a small school. No property is too big or too small, from small office suites to large 

industrial facilities. John Wood can tailor a sales or leasing campaign to put the focus on your property. 

6 7

Residential Sales 

709/2 Dind Street, Milsons Point 

For Sale $1,350,000 


Spectacular Harbour Views From The Pinnacle 

The Pinnacle is a luxuriously appointed modern building in prime location in 

Milsons Point, with first class amenities and 24 hour concierge. Set in midlevels, 

this superb 2 bedroom apartment enjoys sweeping harbour views 

from every room; the harbour bridge, in full view, is prominent from every 

window; like a post card from the living room. Two marble bathrooms, the 

master is lavish; and a delightful kitchen with quality fittings and stone 

benches. The balcony, accessed from the living room and the main bedroom, 

is private, sheltered and capacious with a great view. Not just car space, but 

a separate lock-up garage on title. 

2 2 

Details and Viewing: 

John Tower or Jessica Brincat 

Phone: 9956 6500 



1 

8 

9


2003-2013/30 Glen Street, Milsons Point 

For Sale $900,000 

11/1 Harbourview Crescent, Milsons Point 

For Sale $1,700,000 


Dual Apartment With Spectacular Views 

SOLD 

Mirvac on Lavender Bay 

The Colonnades is a famous building located diagonally across the park from 

Milsons Point station; and it comes complete with resort style amenities. 

This dual key apartment occupies the 20th floor capturing spectacular views 

of the harbour and the Opera House from the rounded point of the building; 

resembling the fabulous buildings of a bygone era in New York. Internally 

this cleaver property has two separate flats, in fact most of them on this side 

of the building were designed to this type, but few have such spectacular 

views. Currently returning about $1,000 per week; an impressive and solid 

income, at a fair and reasonable asking price. 

2 2 1 



Phone: 9956 6500 



Away from the bustle of Milsons Point, opposite Clark Park there is an icon 

in the area: Helmspray, is one of the original quality buildings in Lavender 

Bay/Milosns Point area developed by Mirvac, arguably, Australia’s best 

development company; a relatively small well-built block, substantially 

owner occupied, with another access form the side lane to Milsons Point 

station. Unit 11 is perfectly positioned to capture pleasant views of Lavender 

Bay and the tranquil sounds of ropes ringing the boat masts. Accommodation 

comprises three bedrooms with ample hanging storage, two superbly 

renovated bathrooms, a quality kitchen with breakfast area, semi enclosed 

dining room, lounge and all the bedrooms are wrapped in balconies, laundry 

and storage. 

3 2 2 



Phone: 9956 6500 



10 

11


1205/38 Alfred Street, Milsons Point 

For Sale $1,350,000 

507/2 Dind Street, Milsons Point 

For Sale $1,000,000 


North Eastern Aspect In Port Jackson Tower 

A Quintessential Milsons Point Apartment 

Port Jackson Tower is a tightly held quality building in a perfect a location 

in Milsons Point. Apartment 1205 is ideally positioned, high on the north 

eastern side of the building; bathed in sunshine in winter; floor to ceiling 

glass walls wrapped by balconies with some main harbour views. Three 

bedrooms, all with built-in; two bathrooms, breakfast area in the kitchen, 

laundry and ample storage, lends this apartment to a very comfortable 

home. The building: one of the best managed in the area, has a great indoor 

lap pool and gym/sauna facilities. Two side-by-side parking spaces on title 

and ample visitor parking. Freshly painted and updated, ready to move in; 

this property is an absolute gem. 

3 2 



Phone: 9956 6500 



2 

The Pinnacle has been described as “the benchmark in Architectural 

Excellence this level of quality certainly ranks it as one of the best buildings 

in Milsons Point; ideally positioned at the edge of the high-rise precinct, with 

resort like facilities including a lap pool and a great gym. This elegant two 

bedroom apartment has a massive living area finished with solid parquetry 

timber floors spanning 8.4 meters, on one end is the kitchen on the other a 

large window with diagonal views of the western end of the harbour. Two 

fully fitted bedrooms with ample storage, the second is larger than most; 

two marble bathrooms that only pictures do justice; the kitchen is a delight 

with quality appliances, a square useful balcony and a lockup garage. 

2 2 1 



Phone: 9956 6500 



12 

13


611/88 Berry Street, North Sydney 

For Sale $540,000 

6/187 West Street, Crows Nest 

For Sale $420,000 


Stylish One Bedroom in North Sydney 

Located on the edge of North Sydney in the “Harbourwatch building, this top 

floor one bedroom apartment boasts modern spacious interiors combined 

with an ideal location, only moments from the heart of North Sydney’s CBD 

and a short drive over the bridge to the city. 

The property includes a generous bedroom with built in wardrobes, modern 

kitchen with combined living and dining area, well-appointed bathroom and 

balcony capturing water views over Neutral Bay. 

SOLD 

1 1 



Phone: 9956 6500 



1 

Newly Refurbished One Bedroom Apartment 

With Lock Up Garage 

This bright and well maintained one bedroom apartment is located in a 

quiet yet convenient position within a small security building. The building 

is ideally located within walking distance to all amenities and offers rapid 

access to the CBD. The property has a balcony off the living room and lockup 

garage. 

SOLD 

1 1 1 



Phone: 9956 6500 



14 

15


401/206 Ben Boyd Road, Neutral Bay 

For Sale $485,000 

902/12 Glen Street, Milsons Point 

Undisclosed 


Spacious & Bright One Bedroom Apartment 

With Sunroom 

Located in a prominent medium rise building in the heart of Neutral Bay, this 

spacious one bedroom apartment with sunroom would make a perfect first 

home, or an ideal investment. Featuring a modern kitchen, internal laundry, 

open living room with the added space of an adjoining sunroom. The 

bedroom is perfectly positioned with sweeping views across Neutral Bay. 

Situated in a secure, well located building with beautiful gardens and 

outdoor pool, the property includes one secure car space and is minutes 

away from Neutral Bays fabulous shopping and dining district. 

SOLD 

1 1 



Phone: 9956 6500 



1 

Modern Apartment with Great Views 

Large and modern one bedroom apartment with great views over Lavender 

Bay. The property features a generous bedroom with built in robes, a well 

appointment bathroom plus powder room, beautiful timber floors and an 

expansive balcony to take in the wonderful views of Lavender Bay. 

Secure parking for one car, gym & pool in building 

SOLD 

1 1 1 



Phone: 9956 6500 



16 

17

Residential Lease 

LEASED 

202/5 Harbourview Crescent, Milsons Point 

For Lease $2,000pw 

Brand New- Chic harbour front 

apartment 

LEASED 




Spectacular Views From ‘The Point’ 

Situated on the second floor of Milsons Point’s newest 

development, Halcyon, this is a truly impressive apartment 

offering style & luxury as well as a level of appointment 

suitable for the most discerning executive. 

Located on the picturesque Lavender Bay, the property 

offers spectacular views & sits only minutes from all that 

one of the world’s most desirable cities has to offer. 

Open plan living areas lead seamlessly onto the spacious 

balcony with unsurpassed views of Sydney Harbour. 

Occupying the premium corner position in The Point 

development, this is a truly impressive apartment offering 

award winning design and luxurious appointment. Floor 

to ceiling glass encases the open plan living area providing 

jaw-dropping Harbour Bridge & Harbour Foreshore 

views. The living area wraps around to the spacious open 

Winter Garden with unsurpassed views of the Harbour 

and Bradfield Park below, perfect for those lazy weekend 

brunches or relaxed entertaining. 

3 3 2 

3 3 2 

LEASED 



Breathtaking Views Across the 

Harbour 

LEASED 

19 Bayview Street, Mcmahons Point 


Fabulous Harbour Views 

Situated on the 23rd floor of the Peninsula Tower, this 

three bedroom apartment encompasses magnificent 

views from every window. The property boasts generous 

open plan living spaces framed by two balconies opening 

up to sweeping views of Sydney Harbour stretching as far 

as the Blue Mountains. Featuring three bedrooms each 

with their own unique views, the master includes a walk 

in robe and ensuite, whilst the remaining bedrooms are 

equipped with built-ins. 

This prestigious two bedroom town house boasts priceless 

harbour views capturing both the iconic Sydney Harbour 

Bridge & Opera House. Watch the boats sail past from the 

entertaining deck or the beautifully landscaped courtyard. 

The split level townhouse offers spectacular views from the 

formal lounge & master bedroom. The spacious kitchen 

has a beautiful marble bench & European appliances as 

well as plenty of storage. The bathrooms are beautifully 

appointed, ensuite includes a spa bath. The property also 

includes a study, wine cellar, & parking for one car. 

3 2 2 

2 3 1 

18 

19




This prestigious two bedroom apartment boasts serene harbour views 

over Lavender Bay captured by the beautiful floor to ceiling glass that 

encases the living room. The apartment offers a modern kitchen with 

hardwood floors, gas cooking, stainless steel Bosch appliances & plenty 

of storage as well as an internal laundry. The property has recently been 

updated with fresh paint and flooring. 

2 2 1 $850pw 


Located in the landmark building Port Jackson Tower this apartment 

features a large living area with, and floor to ceiling glass capturing 

amazing views. Two spacious bedrooms, large kitchen and bathroom, 

sunny balcony with Internal laundry & one security parking. This building 

offers a gym, sauna, pool and spa. 

2 2 1 $850pw 


This is a truly impressive fully furnished apartment offering style & 

luxury as well as a level of appointment suitable for the most discerning 

executive. The spacious open plan lounge and dining area has wonderfully 

high ceilings and opens to a fabulous entertaining deck with spectacular 

Lavender Bay views. Available for lease until NOV 2013 

2 2 1 $1,250pw 


This one-bedroom apartment is perfectly located, close to the harbour 

foreshore, cafes, ferry wharf, and Milsons Point train station. The 

apartment itself features a large bedroom, combined living & dinning, 

modern bathroom, and balcony. Building facilities include a swimming 

pool and gym. 

1 1 $480pw 

LEASED 

LEASED 

LEASED 

60 Upper Pitt Street, Kirribilli 

A Light and Airy One Bedroom in Neutral Bay. Enter a house brimming 

with classic Victorian charm and tranquility. The property offers formal 

lounge and dining areas with high ceilings, large windows capturing plenty 

of natural light. The house features a spacious kitchen, which is extended 

by a family room overlooking a magical, child-friendly rear garden. 

4 2 1 $1,200pw 


Peaceful One Bedroom Apartment with views over Lavender Bay. 

This one bedroom unit situated in the heart of Milsons Point offers 

superb views over Lavender Bay. The property is furnished, and features a 

stunning balcony overlooking the harbour. In addition there is one security 

car space and the building offers a gym and indoor pool. 

1 1 1 $680pw 


Modern high rise building in the most prominent location in Milsons Point. 

3 bedrooms, 2 bathroom apartment perched on the 13th floor enjoying 

outstanding views of the Harbour & Kirribilli. Security building, balcony, 

internal laundry, , parking, pool, gym, spa & sauna facilities. 

3 2 1 $950pw 

34B/2 Brady Street, Mosman 

This immaculately presented spacious 2 bedroom apartment in the exclusive 

Bridlewood Gardens complex. Generous size open plan lounge and dining 

which flows out onto a fabulous under cover balcony making it ideal for 

alfresco dining and entertaining. Gourmet granite eat-in kitchen with gas 

appliances and dishwasher. Ducted air-conditiong and 2 security parking. 

2 2 1 $775pw 

LEASED 

LEASED 

LEASED 

20 

21

COMMERCIAL REAL ESTATE 

Commercial Sales 

What Drives Yields? 

Welcome to the commercial section of our 

Autumn Quarter edition of The Property Review. 

In this article we will look at some of the principal 

drivers of property yields that influence returns 

on commercial, industrial and retail property in 

Australia. 

The Australian Dollar 

In the short term the Australian dollar is supported 

by a strong association with Asian markets, the 

strongest growth region in the world. There has 

been a 400% increase in merchandise exports 

from Asia since the late 1980s. This has resulted 

in an increasing demand for our commodities 

resultant in stronger terms of trade. 

In addition to our stronger terms of trade our 

much higher interest rates compared to the US 

dollar reflect the higher return position of the 

Australian economy. Given monetary policy in the 

US and Europe and, very recently, the dramatic 

devaluation of the Japanese yen, this position is 

likely to persist for the medium term. 

Overall the above influences indicate a relatively 

stable Australian dollar with any downside 

counterbalanced by an improvement in the 

affordability of our exports. 

Borrowing and some technical stuff... 

NTA and REITs 

Real Estate Investment Trusts , “REITs”, are listed 

property investment entities which can be traded 

on stock exchanges. Net Tangible Assets “NTAs” 

are calculated as the total assets of an entity, 

minus any intangible assets such as goodwill, 

patents and trademarks, less all liabilities and the 

par value of preferred stock. Also known as “net 

asset value” or “book value”. 

The property sector has seen a reduction in 

REIT leveraging to less than 30% during the last 

5 years. This has resulted in lower borrowing 

costs and an increase in price to NTA ratios. 

The lack of confidence in growth in the non 

mining sector has held back demand for increases 

in leverage notwithstanding a general trend of 

borrowing costs falling below property yields 

across most sectors. 

Re-emergence of property as a preferred 

investment 

The post GFC period saw a strong demand for 

secure deposit and cash linked offerings plus 

a higher level of super fund inflow into deposit 

accounts. The resulting fall in deposit interest 

rates plus stable property returns is likely to 

attract investors back to the property sector. This 

sentiment is reflected in strong REIT returns. 

Super funds looking to fund long term annuity 

streams will encourage the creation of 

development/financial models to meet this 

demand 

Supply 

The “boom and bust “ cycle which afflicted the 

economy in previous cycles has been largely 

avoided in the post GFC due to an absence of over 

supply of investment property. Non residential 

approvals indicate this situation will continue for 

at least the next two to three years. 

Despite falling borrowing costs, stable rental 

growth and moderate market confidence there 

is little to indicate an improvement in supply. 

Once growth expectations take a more positive 

outlook the impact on capital values and yields 

will begin to improve. There is also an expectation 

of improved activity once the tight financial 

conditions ease. 

Property yields 

Falling bond yields and stable rental returns have 

resulted in below average yields in the industrial 

and office markets. There are expectations that 

the yields will increase in the medium term 

however net face rental growth has exceeded 

long term averages in the office and industrial 

sector indicating a built in slowing of forward 

pricing and yield. 

The retail sector is heading into largely unknown 

territory as the impact of on line shopping 

on demand for speciality retail space is fully 

understood and addressed. Lower demand for 

retail space will inevitably result in longer vacancy 

periods which will impact on yield and growth 

expectations. 

Yields by Sector 

Sep 12 

20 Year 

Average 

Retail – Regional Centre 6.1% 7.0% 

Prime CBD Office 7.5% 7.5% 

Industrial – Grade A 8.5% 8.8% 

Source: CBRE 

Net Face Rental Growth 

Last 12 

Months 

20 Year 

Average 

Current Growth 

Relative to 20 

Year Average 

Retail 1.8% 3.6% -1.8% 

Office 3.9% 2.6% 1.3% 

Industrial 3.1% 1.3% 1.8% 

Source: CBRE 

In summary falling lower bond yields and falling 

interest rates are indicative of softer growth 

expectations and stable property yields. Current 

conservative market pricing should ensure a 

stable market in the foreseeable future resulting 

in limited downside to capital values. 

I hope this gives you an insight into the business 

end of property investment and some of the 

more technical aspects of that market. In the 

next edition we will see how this affects the 

commercial market on the lower north shore, 

particularly the most popular and affordable local 

strata commercial, industrial and retail sector. 

Until then remember “An investment in knowledge 

pays the best interest.” - Benjamin Franklin 

John Wood 

Licensed Real Estate Agent 

Commercial, Industrial and Retail 

22 

23


G01/15 Atchison Street, St Leonards 

For Sale $560,000 + GST 

Lot 12/26 Ridge Street, North Sydney 



Ground Floor Professional Suite 

-Super Super Investment 

Small Office - Big Ideas 

•Near New Building... 

•74 Sq Metres 

•Extensive fit out consisting of reception area, 

meeting room, general office area and large private 

executive office 

•Own Kitchenette 

•Maximum Exposure To Atchison Street 

•Fully Leased Until 31st March 2013 

•Gross Annual Return $36065 Gst Exclusive 

•33 Sq metres 

•Functional fit out 

•Character building 

Consider the opportunity to join the corporate world at an 

amazing $165000 (+ GST) entry point. This is a character 

building with an eclectic mix of owners and occupiers. 

Level 6 location enjoys a broad vista of Sydney all the way 

to Botany Bay! 

Total 

Area 

74sq 


John Wood 

Phone: 9956 6500 

Email: commercial@towerlondon.com 

56 Beaumont Road, Mount Kuring-Gai 


Total 

Area 

33sq 

Parking 

Available 


John Wood 

Phone: 9956 6500 


9/9-11 Chaplin Drive, Lane Cove 


Total 

Area 

3460sq 

Vacant 

Site 

Last Large Vacant Block In 

Mt Kuring-Gai 

•Zoned general industrial 

•Ideal contractors yard 

•Near level approx 3460 sq metres building area 

•Very secure site 

•7 Metre wide access to beaumont road 

•High side location 

The last opportunity to acquire a substantial site in the 

mt kuring-gai industrial estate. Mostly vacant land with 

existing approx 216 sq metre metal working/welding shed 

at rear - council approved 


John Wood 

Phone: 9956 6500 


24 

25 

Total 

Area 

192sq 

4 

High Tech Industrial Unit- Hugely 

Motivated Vendor- Security Estate 

Modern high tech industrial unit located in the Lane Cove 

Industrial area. It consists of ground floor warehouse 

area (104 sqm) and mezzanine level air conditioned office 

space (88 sqm). The total strata plan area is 248 sq metres 

inclusive of car parking - 4 car spaces in total. 

Chaplin Drive is a precinct of modern, recently developed 

industrial buildings and has easy access to the Gore Hill, 

M2 & M7 freeways. All major Sydney industrial areas are 

serviced by this network 


John Wood 

Phone: 9956 6500 

Email: commercial@towerlondon.com

Commercial Leasing 

302/161 Walker Street, North Sydney 

For Lease- Realistic Market Expectations 

Shop 4/59-67 Strathallen Avenue, Northbridge 

For Lease $48,000 + GST 

Commercial Leasing 

Sharp Fit Out - Sharp Pricing 

Main Road Retail With All Day Parking 

Retail Exposure At Office Rental 

Total 

Area 

125sq 

1 

•125 sq metres approximately 

•Internal Kitchen 

•Boardroom 

•Reception 

•General Office Area 

•2 Offices/Meeting Rooms 

This 125 sq metre office has a lot to offer with a very 

versatile layout. Walker House is conveniently located near 

Berry Street. Security car space in basement of building. 


John Wood 

Phone: 9956 6500 


Total 

Area 

91sq 7 

•91 sq metres 

•Central location 

•10 minutes to the 3 cbds 

•Modern refurbished centre 

•Look at the rent only $48000 pa + gst 

Looking for exposure and client parking?? 

Look no further!! 


John Wood 

Phone: 9956 6500 


47/221 Miller Street, North Sydney 


Shop 1/144-150 Liverpool Street, Darlinghurst 


Top Of The Town 

Level 13, 221 Miller Street 

Prime Street Frontage Retail 

•52 Sq Metres 

•Quality Furniture Included 

•2 Offices Reception Utility Room 

•Massive Window Space And Natural Light 

•Top Quality Executive Suite 

•Busy Precinct 

•50 Metres From Oxford Street 

•Good Exposure and Signage 

•Long Term Lease Available 

•Approximately 32 sq metres 

1 Security basement car space @ $380 pcm + levy + gst 

This is a great opportunity for the switched on retailer to 

capitalise on this inner city location. Busy yet friendly with 

an eclatic mix of bypasses and neighbours. 

Total 

Area 

52sq 1 


John Wood 

Phone: 9956 6500 


Total 

Area 

32sq 


John Wood 

Phone: 9956 6500 


26 

27

Our Offices 

SYDNEY 

38 Alfred Street, 

Milsons Point, NSW 2061 

Sydney, Australia 

Phone: (612) 9956 6500 

Fax: (612) 9956 6522 

HONG KONG 

6/F Luk Kwok Centre, 

72 Gloucester Rd, 

Wan Chai, Hong Kong 

Phone: (852) 2918 8788 

Fax: (852) 2918 9808 

•Executive Leasing 

•Property Sales 

•Property Management 

•Property Refurbishment 

•Valuations 


28

2013 Autumn

Transform your PDFs into Flipbooks and boost your revenue!

Delete template?

Save as template ?