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
Tower & London
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
Tower & London
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
Tower & London
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
Residential Sales
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
Email: reception@towerlondon.com
www.towerlondon.com
1
8
9
Residential Sales
2003-2013/30 Glen Street, Milsons Point
For Sale $900,000
11/1 Harbourview Crescent, Milsons Point
For Sale $1,700,000
Residential Sales
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
10
11
Residential Sales
1205/38 Alfred Street, Milsons Point
For Sale $1,350,000
507/2 Dind Street, Milsons Point
For Sale $1,000,000
Residential Sales
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
12
13
Residential Sales
611/88 Berry Street, North Sydney
For Sale $540,000
6/187 West Street, Crows Nest
For Sale $420,000
Residential Sales
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
14
15
Residential Sales
401/206 Ben Boyd Road, Neutral Bay
For Sale $485,000
902/12 Glen Street, Milsons Point
Undisclosed
Residential Sales
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
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
Details and Viewing:
John Tower or Jessica Brincat
Phone: 9956 6500
Email: reception@towerlondon.com
www.towerlondon.com
16
17
Residential Lease
LEASED
202/5 Harbourview Crescent, Milsons Point
For Lease $2,000pw
Brand New- Chic harbour front
apartment
LEASED
501/20 Alfred Street, Milsons Point
For Lease $2,500pw
Residential Lease
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
2301/37 Glen Street, Milsons Point
For Lease $1,250pw
Breathtaking Views Across the
Harbour
LEASED
19 Bayview Street, Mcmahons Point
For Lease $1,500pw
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
Residential Lease
Residential Lease
1707/30 Glen Street, Milsons Point
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
1204/38 Alfred Street, Milsons Point
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
604/8 Glen Street, Milsons Point
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
908/12 Glen Street, Milsons Point
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
131/48 Alfred Street, Milsons Point
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
1305/38 Alfred Street, Milsons Point
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
Commercial Sales
G01/15 Atchison Street, St Leonards
For Sale $560,000 + GST
Lot 12/26 Ridge Street, North Sydney
For Sale $165,000 + GST
Commercial Sales
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
Details and Viewing:
John Wood
Phone: 9956 6500
Email: commercial@towerlondon.com
56 Beaumont Road, Mount Kuring-Gai
For Sale $36,160 + GST
Total
Area
33sq
Parking
Available
Details and Viewing:
John Wood
Phone: 9956 6500
Email: commercial@towerlondon.com
9/9-11 Chaplin Drive, Lane Cove
For Sale $625,000 + GST
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
Details and Viewing:
John Wood
Phone: 9956 6500
Email: commercial@towerlondon.com
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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
Details and Viewing:
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.
Details and Viewing:
John Wood
Phone: 9956 6500
Email: commercial@towerlondon.com
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!!
Details and Viewing:
John Wood
Phone: 9956 6500
Email: commercial@towerlondon.com
47/221 Miller Street, North Sydney
For Lease $20,800 + GST
Shop 1/144-150 Liverpool Street, Darlinghurst
For Lease $39,300 + GST
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
Details and Viewing:
John Wood
Phone: 9956 6500
Email: commercial@towerlondon.com
Total
Area
32sq
Details and Viewing:
John Wood
Phone: 9956 6500
Email: commercial@towerlondon.com
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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
www.towerlondon.com
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