2012 Autumn

THE PROPERTY REVIEW 

June 2012 

www.towerlondon.com

JUNE QUARTER 2012 

Message from John Tower 

Are we at the bottom of this property 

cycle or is there way to go yet? ........... 1 - 2 

Current Sales ................................................... 3 - 14 

Sydney Map ..................................................... 9 - 10 

Have you got what you paid for? - 

Care of Appraisal and Valuation........... 15 

Water Charges For Your Property ....... 16 

Current Rentals .............................................. 17 - 19 

Tower & London offices ............................ 20 

Useful Resources ........................................... Back Cover 

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 

THE PROPERTY REVIEW 

A monthly magazine published by Tower & London 

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.

Are we at the bottom 

of this property cycle or 

is there way to go yet? 

The updated graphs below paint a clear picture of the 

property market in the Lower North shore area, where 

overall Median property prices have remained stagnant 

over the past four years. Around 2010, when incentives 

for First home buyers were flowing in, the prices nudged 

up a little; but these prices have settle back down 

towards the lower 2008 levels. 

A bleaker picture is the volume of sales; with the 

exception of apartments in the North Sydney locality, 

which takes into account Milsons Point and Kirribilli as 

well, the sales figures are at the very low 

levels of the GFC era. 

To give an indication of the situation, the Median House 

prices in Mosman continue to slide, while houses in the 

North Sydney and Willoughby local council areas stay 

put; with sales volumes throughout the lower North 

2,500 

2,000 

JOHN TOWER 

M.D. Tower & London 

Licensed Real Estate Agent 

Registered Property Valuer 

1,500 

Shore continuing to decrease down to GFC levels. 

Median 1,000 unit Prices are also sliding downwards, especially 

in Mosman where in December 2011, according to data 

500 

obtained from the Department of Land NSW by the 

Real Estate -‐ Institute of NSW in the publication to their 

Jun-‐08 Sep-‐08 Dec-‐08 Mar-‐09 Jun-‐09 Sep-‐09 Dec-‐09 Mar-‐10 Jun-‐10 Sep-‐10 Dec-‐10 Mar-‐11 Jun-‐11 Sep-‐11 Dec-‐11 

members titled “Property Focus”, unit prices had dropped 

North Sydney 1,093 936 1,030 1,045 990 1,135 1,130 1,300 1,258 1,201 1,186 1,215 1,200 1,195 1,276 

by nearly 12% over the past 12 months. 

$1,000 

House Sale Prices 

Although it may seem bleak, the Median Sydney 

residential house prices have improved from December 

2008 to December 2011 by $100,000 to $637,000. This 

clearly shows that there are pockets of Sydney that 

have pushed the averages upwards. Areas such as the 

Sutherland Shire and the Inner Western suburbs seem 

to be responsible for most of the increase; Leichhardt 

houses for instance, increased by 18% over this period. 

In the light of other industrialised nations our property 

market has fared reasonably well over the past few years. 

According to Zoopla, a London based website compiling 

sales figures, house prices in London have decreased by 

nearly 6% since 2008, whilst figures provided by Property 

Wire, another UK site, note that in the past year house 

prices in London fell by 2.1%. 

You may be asking then, is it a good time 

to buy? Well, to that I say how much better 

than this can it get! Some properties in the Lower 

North Shore are barely reaching what they were sold for 

in the height of the market in 2007; with some trading at 

the levels of 2003. Thus showing, that buying property 

when everyone else is, can be a huge mistake; and that 

whilst there are pockets of Sydney that are increasing 

in value, the majority are stagnant and some are even 

falling. 

The recent decrease in the cash rate by the Reserve Bank 

of 50 basis points to 3.75 per cent; with a subsequent 

2/3rds passed on by the big banks, will certainly bring 

more activity to the market place. However, whether this 

will translate to increase in values is too early to gauge. 

Here’s what The Governor of the Reserve Bank wrote in his 

1 st May 2012 statement, relative to the property market. 

“As a result of changes to monetary policy late last year, 

interest rates for borrowers have been close to their mediumterm 

averages over recent months, albeit tending to increase 

a little as lenders passed on the higher costs of funding their 

books. Credit growth remains modest overall. Housing prices 

have shown some signs of stabilising recently, after having 

declined for most of 2011, but generally the housing market 

remains subdued.” 

The returning of the Australian economy to surplus in 

the 2012-1013 budget could also encourage the Reserve 

Bank to reduce the rates further, which may translate to 

cheaper funding rates for the banks; and hopefully, any 

further reduction by the Reserve Bank Board might be 

passed on in full by the four major banks. Here’s a snippet 

from the Australian Government budget website. 

“The return to surplus, ahead of any other major advanced 

economy, sends a strong message to international investors 

on the Government’s commitment to fiscal discipline and 

provides a buffer in uncertain economic times.” 

To close, the question I posed in the heading: Are we 

at the bottom of this property cycle or is there way to 

go yet? The answer lies in the location and the way that 

particular segment of the market has been performing. 

We cannot say that it’s the bottom of the cycle in 

Leichhardt, because property values there have been 

rising; one could say the lower North shore is getting 

close to it; if not, over the past three months, it might 

have bounced back a little. As for the investors, things 

are looking positive, rents are firm, vacancy factors are 

staying very low, interest rates are falling and values are 

relatively down: what better time to buy an investment 

property on the lower North Shore. 

2,500 

House Sale Prices 

700 

Apartment Sales Volume 

750 

Apartment Sale Prices 

350 

House Sales Volume 

2,000 

600 

500 

700 

650 

300 

250 

$1,000 

1,500 

1,000 

400 

300 

$1,000 

600 

550 

200 

150 

200 

500 

100 

500 

100 

450 

50 

-‐ 


North Sydney 1,093 936 1,030 1,045 990 1,135 1,130 1,300 1,258 1,201 1,186 1,215 1,200 1,195 1,276 

Mosman 2,150 1,785 1,835 1,780 1,950 2,050 2,000 2,150 1,988 2,110 2,285 2,350 1,850 2,010 1,780 

Willoughby 1,053 1,175 1,000 1,035 1,150 1,164 1,250 1,312 1,345 1,285 1,250 1,301 1,327 1,240 1,250 

-‐ 


North Sydney 395 317 308 350 516 651 545 450 533 539 546 380 570 446 544 

Mosman 116 97 82 105 173 173 149 112 136 129 152 101 134 117 144 

Willoughby 195 181 174 211 267 347 268 215 194 193 173 141 200 174 226 

400 


570 543 510 517 519 550 610 635 645 616 630 620 619 598 590 

North Sydney 

Mosman 535 550 520 536 529 527 620 695 603 643 645 651 618 610 570 

Willoughby 503 480 488 489 499 520 563 570 600 581 582 600 605 600 570 

-‐ 


North Sydney 151 99 85 74 157 164 215 168 146 126 142 98 153 127 117 

Mosman 92 65 60 61 111 116 107 132 101 84 98 70 86 78 78 

Willoughby 200 138 159 146 244 271 314 240 184 161 191 149 207 178 147 

1 

2

CURRENT SALES 

15/59 Upper Pitt Street, Kirribilli 

For Sale $1,100,000 

5/23 Holbrook Avenue, Kirribilli 

For Sale $1,450,000 

CURRENT SALES 

Elegant Two Bedroom Apartment 

with Harbour Views 

Located in an immaculately maintained Company Title Georgian era 

building at the heart of Kirribilli, this elegant apartment is perfectly 

positioned to capture spectacular main harbour views, framed by 

the Opera House and the Harbour Bridge with city lights glittering in 

between. Only a short walk to Kirribilli shops and cafés, Milsons Point 

Railway station and the ferry wharf. Just one floor up from street level 

is this two bedroom apartment with generous proportions and in 

good condition, but with room for improvement to individual taste; 

complementing this ideal property is a rare and secure lock-up garage. 

generous marble bathrooms, a well-positioned study nook and two 

secure parking and storeroom on title. 

2 2 1 

Details and Viewing: 

John Tower 

Phone: 9956 6500 


www.towerlondon.com 

Incomparable 

It is only once every few years that a truly incomparable property comes on 

the market; this apartment marks one of those rare opportunities: featuring 

two bedrooms, yet larger than a typical three bedroom unit, situated on the 

northern side of a great Georgian style waterfront building on Careening Cove. 

Offering intimate views which open to the harbour from every bedroom, the 

living room ,lounge, dining and the study. Timber floors, high ceilings and 

leadlight windows are distinguishing features of this stunning residence, 

also boasting a harbour side swimming pool and BBQ area as well as ample 

storage. It’s truly incomparable because it has so much to offer. 

2 1 

STUDY 

1 1 


John Tower 

Phone: 9956 6500 



3 

4

CURRENT SALES 

728 & 730/187 Kent Street, Sydney 

For Sale $850,000 

1508 & 1518/30 Glen St, Milsons Point 

For Sale $895,000 

CURRENT SALES 

Dual Key City Apartment 

Dual Key New York Style Apartment 

The northern end of the city is arguably the nicest residential precinct; this 

popular building has a fantastic gym and swimming pool complex; up on the 

north eastern end of the building is this large dual key apartment containing 

two separate one bedroom apartment: one on the east of the building and 

the other on the centre with limited views to the harbour. The large one on 

the east has an area of 84 square meters, and the smaller one has 48 square 

meters, totalling 132 square meter apartment in the heart of the city; at an 

asking price of under $6,500 per square meter; it has to be one of the best 

value properties in the city. 

2 2 


John Tower 

Phone: 9956 6500 



In the centre of Milsons Point and in one of the most popular buildings, The 

Colonnades; this dual key property is perched on the 15th floor and occupying 

the north east corner of the building. The main entrance leads to two doors, 

one to each separately metred apartment: a one bedroom unit extending at 

the rounded glass façade, which is the main feature of this building, and a 

studio unit with glimpses of Lavender Bay. Included in this superb property 

package is a sure parking space and a store room. The Colonnades is a great 

complex with 24 hour concierge, a massive pool and gym area. This is great 

investment property with depreciation allowances and a gross income of 

more than $1,000 per week; or to the owner occupier and simply use it as a 

two bedroom home. 

2 2 1 


John Tower 

Phone: 9956 6500 



5 

6

CURRENT SALES 

818/8 Glen Street, Milsons Point 

For Sale $1,450,000 


For Sale $920,000 

CURRENT SALES 

Two Bedrooms & Study with 

Lavender Bay Views 

Located in the Azure building, this impressive apartment offers style & luxury 

as well as stunning harbour views. The property boasts a spacious open plan 

lounge and dining area with wonderfully high ceilings and features a fabulous 

entertaining deck with spectacular views over Lavender Bay. The large modern 

kitchen features beautiful marble benches & European appliances as well as 

plenty of storage. The master bedroom opens to the terrace & has ample 

storage and a large beautifully appointed ensuite. There is a second bedroom 

as well as a study/media room. 

Situated in one of Milsons Point’s most modern mid-rise buildings, this 

property is a short walk to cafes & shops, & two minutes drive to North 

Sydney’s CBD. 

STUDY 

2 2 1 1 


John Tower 

Phone: 9956 6500 



Lavender Bay Magic 

Perched on the 18th floor of the tower wing, this executive apartment with 

north westerly aspect captures tranquil Lavender Bay views and spectacular 

sunsets. Comprising two double bedrooms, two modern bathrooms and 

combined lounge dining area with a modern and complete kitchen opening 

onto a small balcony; and offered on a separate title, is a secure parking space. 

The Colonnades is arguably the most luxurious high-rise apartment block in 

Milsons Point with 25 meter swimming pool and resort style gym facilities, 24 

hour concierge and ample visitor parking; just across the park from Milsons 

Point station. 

SOLD 

2 2 1 


John Tower 

Phone: 9956 6500 



7 

8

SYDNEY MAP

CURRENT SALES 

SOLD 


Price Withheld 

33a/8 Hardie Street, Neutral Bay 

For Sale $460,000 

CURRENT SALES 

SOLD 

Sunshine on Lavender Bay 

This spectacular apartment is perched on the quiet north/western corner of 

the luxurious Colonnades. Perfectly positioned to capture northern sun with 

panoramic views from North Sydney across the beautiful Lavender Bay, past 

Anzac Bridge to the main harbour, and further to the southern section of 

the Harbour Bridge and city lights. A glass balcony wraps around the entire 

apartment offering an unimpeded view; just like an ocean liner, there are no 

distractions from the magnificent views in every room of this apartment. All 

three bedrooms are of good proportions, well fitted with quality wardrobes; 

and of course, with harbour views. The modern fully equipped kitchen opens 

onto an eat-in breakfast area. The apartment also features two generous marble 

bathrooms, a well-positioned study nook and two secure parking and 

storeroom on title. 

3 2 2 


John Tower 

Phone: 9956 6500 



Totally Refurbished, One Bedroom + 

Study and Parking 

This one bedroom apartment is like no other; it has been completely remodelled 

to an outstanding level of efficiency and fitted with the best quality fixtures 

and appliances. French stone tiles cover the living areas, separate study area, 

stone bathroom akin to those found in Istanbul and incorporating a built-in 

in laundry. Bright bedroom with wardrobes, spacious north facing balcony; 

open parking space. All within a few minutes’ walk to Neutral Bay shops and 

bus terminal. Offered fully furnished. 

1 1 1 


John Tower 

Phone: 9956 6500 



STUDY 

1 

11 

12

CURRENT SALES 

1A/59 Upper Pitt Street, Kirribilli 

For Sale $880,000 

2/49 Spit Road, Mosman 

For Sale $490,000 

CURRENT SALES 

SOLD 

Two Floors in One Line 

SOLD 

Classic Garden Flat 

This is an usual offering of two self-contained flats offered in one line, in an 

immaculately maintained Company Title Georgian era building at the heart of 

Kirribilli. On two levels; the Ground level is a two bedroom unit with a modern 

kitchen and an updated bathroom, internal laundry, large lounge and separate 

dining/sunroom. On the lower level is the more recent addition of fully contained 

studio apartment, comprising an open plan kitchen, bathroom, laundry, lavatory, 

and storage area; opening to a private but common property courtyard. The 

ground floor is approximately 78 square meters and the studio is about 51 square 

meters; totalling 129 Square meters. This property would suite those working 

from home as the studio can be locked from the top of the stairs, and would also 

be suitable to small families with teenagers or elderly parents. Only a short walk 

to Kirribilli shops and cafés, Milsons Point Railway station and the ferry wharf. 

13 

Post Federation building in the heart of Spit Junction. This ground floor flat has 

two bedrooms, renovated kitchen and bathroom, timber floors, high ornate 

3 2 ceilings, white timber shutters and ample storage space. This is a real find 

for those wanting modern and convenient living with classical architectural 

2 2 1 

features. 


John Tower 

Phone: 9956 6500 



14 


John Tower 

Phone: 9956 6500 


www.towerlondon.com

Have you got what 

you paid for? - Case of 

Appraisal and Valuation 

In most cases people rely on information provided by 

Real Estate Agents when it comes to property values. 

If you want to know how much your property 

is worth, you would generally turn to your local Real 

Estate Agent for a free appraisal. To most agents, a 

valuation entails browsing a few real estate advertisements, 

sales-recording websites and looking for other 

seemingly alike properties that have recently sold to 

gauge the value of your property. Sometimes, they 

might even be based on an individual’s confidence 

due to recent successful sales. And of course, these 

figures vary from agent to agent. The fallout from one 

of these free valuations can mean that if your property 

is incorrectly valued and you suffer a loss relying on 

incorrect information, the agent can walk away with 

no, or very little, legal responsibility. 

One the other hand, the more accurate method of 

valuation is to adopt the market value of the property 

as at the date of valuation, based on knowledge of the 

property, market conditions, application of numerous 

tools and techniques to analyse real figure pertaining 

to the assigned property. Therefore, valuation must 

be completed and signed by a qualified and registered 

valuer, who has undertaken prescribed education and 

training solely for the purpose of carrying out this 

work. 

In valuation, there are many methods that could be 

used to value the property and they depend upon the 

purposes of valuation. These methods are: market 

comparison techniques; cost approach, income capitalisation 

and hypothetical development approach. A 

valuer, who masters these methods, analysing tools 

and local knowledge, would then scrutinise figures, 

making adjustments and using professional judgement 

to adopt the true value of that property. Also, a 

TRUONG VAN DO 

Administration 

Bachelor of Business & Commerce - 

Property and Economics 

valuation report produced contains many aspects pertaining 

to the property such as location, access, legal 

description, building improvements, easements, and 

market overview and valuation rationale. The information 

gives you many insights about the property. 

With regards to the responsibility of the valuer: a registered 

Property Valuer is legally bound and governed 

by rules of conduct in their course of profession. 

Therefore, the valuation report produced is done with 

great care, integrity and high level of accuracy. The 

first objective of the valuer is to ascertain the purpose 

of the valuation in order to adopt a valuation method; 

and sometimes one method is used a primary method 

and another as a check method; for example: when 

using the comparable sales method two properties 

might be of similar values, but if one can consistently 

earn a higher income for some obscure reason, then 

a capitalisation method can be applied as a check 

method, and may well raise the value of the higher 

income producing property. 

As an owner or investor, knowing the market value, 

you are almost certain of how much you loose or gain 

when deciding to buy or sell property. Also, valuation 

reports are required legal documents for lending 

institutions, government taxing agents, and courts 

rulings when dealing with matters related to value of 

property. Therefore, you should advise your valuer 

the purpose for which you want to value the property. 

There are many other purposes of valuation such as 

insurance, probate, mortgage, refinance and for ascertaining 

capital gains taxes. 

At Tower and London, with 20 years of experience 

in the local market, your valuation is completed by a 

certified and experienced valuer. 

Water Charges For Your Property 

The subject of water charges is often a tricky 

subject when dealing with rental properties. As a 

landlord, you will generally pass on any usage bills 

to the tenant to pay for the utility which they have 

consumed. However when it comes to passing on 

water charges, the answer is not so black and white. 

In January 2011, the NSW government implemented 

new legislation regarding to tenancy. Included in this 

was information relating to passing on water charges. 

Under the new legislation, a landlord can only pass 

on water charges if the following criteria are met: 

- the rental premises must be individually 

metered 

- the charges must not exceed the amount 

billed for water usage by the water supplier 

- the rental premises must meet required 

water efficiency standards 

In order to meet required water efficiency standards, 

internal taps and showerheads must have a 

maximum flow rate of 9 litres per minute. 

JESSICA BRINCAT 

Administration 

BA (Media & Communications) 

When purchasing water efficient fittings for your 

property, please take note and look for items 

labeled with the WELS (Water Efficiency Labelling 

and Standards) rating. This will ensure you have a 

certified product and will ensure that you are able 

to pass on water charges. In order to ensure that 

you can pass on your water charges, Sydney Water 

advises that you keep a record of any receipts of 

invoices for items bought, work done, or even 

manuals and warranties to serve as proof of your 

compliance with the legislation. 

In areas such as Milsons Point, North Sydney and 

Kirribilli, areas which are heavily populated with units 

and apartment buildings, the above legislation will 

only apply to a select amount of properties. If you 

own a house or unit which is individually metered 

you are able to claim the 

water charges. However, as 

is the case with most of the 

properties we manage which 

are not metered separately, 

water charges are the 

responsibility of the owner. 

(Image supplied by Sydney Water) 

15 

16

RENTAL 

RENTAL 

508/1 Kirribilli Avenue, Kirribilli 

Located in an international landmark building with breathtaking Harbour 

and City views. This apartment boasts four large bedrooms & three well sized 

bathrooms, complemented by tasteful decor throughout. 

4 3 2 $2,180 pw 

LEASED 


This truly impressive fully furnished apartment located in the prestigious 

Azure building offers style & luxury as well as a level of appointment suitable 

for the most discerning executive. Featuring a study and sparkling views over 

Lavender Bay. 

2 2 1 $1,250 pw 

1504/38 Alfred Street, Milsons Point 

Located in Port Jackson Tower, the most prominent building in Milsons Point, 

this furnished apartment captures intimate views of the Harbour Bridge and 

CBD. Featuring two tastefully decorated bedrooms, two good sized bathrooms 

+ and ensuite, and two balconies to take in the views. 

2 2.5 1 $900 pw 

LEASED 

71/94-96 Alfred Street, Milsons Point 

North facing and flooded with natural light, this spacious apartment offers 

three bedrooms, two bathrooms and a modern kitchen flowing onto a 

spacious living/dining area. Located in the Portofino building equipped with 

a gym & close to shops, cafes, transport and the CBD. 

3 2 2 $900 pw 

202/30 Cliff Street, Milsons Point 

Spacious executive apartment designed for entertaining! This is a truly 

impressive apartment offering style & luxury. The spacious open plan lounge 

and dining area opens to a fabulous entertaining deck with spectacular 

harbour views. 

3 3 2 $2,200 pw 

LEASED 


Located in the Colonnades, this prestigious three bedroom apartment boasts 

serene views over Lavender Bay. The apartment offers a beautifully modern 

kitchen,three bedrooms all with generous storage, 2 beautifully appointed 

bathrooms and a separate laundry. 

3 2 2 $1,100 pw 

LEASED 

1602/55 Lavender Street, Milsons Point 

“Latitude” in Milsons Point represents the highest level of quality and luxury. 

This three bedroom apartment offers spectacular space capturing views to 

die for. 

3 2 2 $1,800 pw 

LEASED 


Large and modern one bedroom apartment with great views over Lavender 

Bay. Recently renovated with beautiful timber floors this property is in 

wonderful condition. Secure parking for one car, gym & pool in building. 

1 1 1 $630 pw 

LEASED 

17 

18

RENTAL 


Located in the Pavillion building this beautifully presented one bedroom 

offers a quiet home for the busy executive. Light & bright living area with 

balcony offering partial Harbour Bridge views, polished floor boards and a 

well equipped kitchen. 

1 1 1 $500 pw 

G.03/10 Mount Street, North Sydney 

Nestled within North Sydney’s leafy laneways this 3 bedroom ground floor 

property combines apartment facilities with town house space. Just moments 

away from transport, schools, shops and restaurants, this property is perfectly 

located. 

3 2 1 $980 pw 

93 Holtermann Street, Crows Nest 

LEASED 

Charming two bedroom semi-detached home in lovely Holtermann Street. 

Private paved front courtyard, sunny living area with french doors opening to 

outside entertaining areas. Two bedrooms, small internal courtyard, updated 

& well equipped kitchen, parking for one car. 

OUR OFFICES 

SYDNEY 

38 Alfred Street 

Milsons Point NSW 2061 

Sydney Australia 

Phone:(02) 9956 6500 

Fax:(02) 9956 6522 


HONG KONG BRANCH 

6/F Luk Kwok Centre 

72 Gloucester Road 

Wan Chai Hong Kong 

Phone: (852) 2918 8788 

Fax:(852) 2918 9808 

2 1 1 $600 pw 

605/28 West St, Crows Nest 

Situated on the quiet side of the building, this two bedroom, two bathroom 

apartment boasts a sun drenched balcony and offers a modern kitchen, 

internal laundry and security parking. 

2 2 1 $700 pw 

• Executive Leasing 

• Property Sales 

• Property Management 

• Property Refurbishment 

• Valuations 


19 

20

USEFUL RESOURCES 

Tower & London 

http://www.towerlondon.com 

Department of Fair Trading 

http://www.fairtrading.nsw.gov.au/ 

Phone: 9895 0111 

Fax: 9895 0222 

Consumer, Trader & Tenancy Tribunal 

http://www.fairtrading.nsw.gov.au/cttt.html 

Phone: 1300 135 399 

Fax: 1300 135 247 

Real Estate Institute of NSW 

http://www.reinsw.com.au/ 

Phone: 9264 2343 

Fax: 9267 9190 

NSW Department of Lands 

http://www.lands.nsw.gov.au/ 

Phone: 9228 6666 

Office of State Revenue 

http://www.osr.nsw.gov.au/ 

Phone: 1300 139 816 

Fax: 1300 363 806 

Reserve Bank of Australia 

http://www.rba.gov.au 

Real Estate.com.au 

http://www.realestate.com.au/ 

Domain.com.au 

http://www.domain.com.au/ 

www.towerlondon.com

2012 Autumn

Create successful ePaper yourself

Delete template?

Save as template?