2009 Spring

Staying afloat, alone 

THE PROPERTY REVIEW 

A Quarterly Journal published by 

Tower & London 

Spring 2009


PROPERTY REVIEW 

A quarterly journal published by 


Spring 2009 

Enquiries regarding this journal should be made to: 


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. 

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contents 

Message from John Tower 4 

Monetary Policy 

By Glenn Stevens 5 

Disposable income 

From Budget 2009-10 6 

First Home Owner’s Schemes 7 & 8 

Stamp Duty on Purchase of land 9 

Property Prices Review: 

- Australian Capital Cities 10 

- Lower North Shore, Sydney 11 

Recent Rentals 12 

Recent Sales 13 

Tower and London 

Our Team 14 

Our Offices 15 

Useful sites 

Back Cover 

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Message from John Tower 

Income projections for 2010-2011, these 

are interesting figures as in all the categories 

listed a substantial increase is predicted. 

On pages 7 & 8, there is an update 

to the Commonwealth’s First Home 

Owner’s Boost from the budget and how 

little the change really is, as the base of 

the state scheme and the commonwealth 

First home owner’s scheme remains in 

place. Why the rush then? 

Welcome to the Spring 2009 issue 

of The Property Review. There are many 

changes in this issue; mainly, the focus is 

on more articles, sourced from Government 

and industry bodies, relevant to the 

economy; and particularly, to residential 

property. Therefore, this issue is a little 

slimmer yet with more useful information. 

It seems that every economic news article, 

lately, is mentioning the recovery, 

especially here in Australia; you might 

have noticed this magazine’s cover showing 

a lonely tree in the lake: the tree 

represents Australia; the only modern 

economy with positive growth: staying 

afloat, alone, indeed. 

With the economy in mind, I have chosen 

the first article to begin with, on the opposite 

page, the Governor of Reserve Bank 

of Australia, Glenn Steven’s media release 

on 1 st September 2009; when the 

reserve bank kept the interest rates at 

this historically low level. The argument 

is: the economy is improving, perhaps 

better than expected and definitely better 

than other industrialised economies, yet 

it’s too early to increase interest rates. 

But as the Prime minister and the treasurer 

hinted in early September: interest 

rates are bound to rise from these low 

“emergency” levels. 

Then on page 6: from the Federal Budget 

2009-10, I have extracted the Disposable 

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4 

Stamp Duty on purchase of land in NSW 

is such an outdated table, it’s on page 9. 

Imagine land worth $14,000 these days, 

then another level at $30,000; in fact 

there are five thresholds up to 

$1,000,000. This table provided is for 

quick reference to be used when thinking 

of buying a property. keep this copy 

handy! 

The Property Prices Review has been 

simplified; the tables have been removed 

showing larger clearer charts spanning 

four years, on quarterly basis. I have retained 

the same concept, cities and regions 

in comparison; and I welcome your 

input. 

Internally, we have merged the Milsons 

Point office with the St Leonards office; 

as Milsons Point is a much larger office 

and has been in operation for sixteen 

years, it was decided to move our management 

and staff to Milsons Point. We 

continue to manage a large number of 

properties in St Leonards and intending 

further growth there in the next five years. 

I am pleased to confirm the appointment 

to Ryan Christoffersen to the team, Ryan 

has been working in property management 

for many years, in residential and 

commercial leasing; he joins us in the capacity 

of Senior Property Manger, taking 

on the lead role for the entire portfolio. 

Ryan is assisted by Jackie and relies 

heavily on the administration team of Jennifer 

and Astrid. 

Ewald has been promoted to caretaker 

General Manger as well retaining his 

sales management position. Enjoy this 

positive Spring 2009 issue.

Statement by Glenn Stevens, Governor 

MONETARY POLICY 

Date: 1 September 2009 

At its meeting today, the Board decided to 

leave the cash rate unchanged at 3.0 per cent. 

With considerable economic policy stimulus in 

train around the world, the global economy is 

resuming growth. Growth in China has been 

very strong, which is having a significant impact 

on other economies in the region and on commodity 

markets. The major economies appear 

to be approaching a turning point. Most observers 

still expect only modest growth in the world 

economy in 2010, due to the continuing legacy 

of the financial crisis, though forecasts have 

been revised up recently. 

Sentiment in global financial markets has continued 

to improve. But the effects of economic 

weakness on the balance sheets of financial 

institutions will still be coming through for a 

while. This constitutes one of the main remaining 

risks to the global expansion. For the recovery 

to be durable, continued progress in restoring 

balance sheets is essential. 

Economic conditions in Australia have been 

stronger than expected, with consumer spending, 

exports and business investment notable 

for their resilience. Measures of confidence have 

recovered. Some spending has probably been 

brought forward by the various policy initiatives; in 

those areas demand may soften in the near term. 

Some types of capital spending are also likely to 

be held back for a while by financing constraints. 

But overall, it now appears that investment may 

not be as weak over the year ahead as earlier expected. 

Higher dwelling activity and public demand 

will also start to provide more support to spending 

soon and, hence, growth is likely to firm going into 

2010. Unemployment has not, to this point, risen 

as far as had been expected. Weaker demand for 

labour, evident in a decline in hours worked, nonetheless 

has seen a moderation in labour costs. 

Helped by this and the earlier fall in energy and 

commodity prices, inflation has been declining, 

though measures of underlying inflation remained 

higher than the target on the latest reading. Underlying 

inflation should continue to moderate in the 

near term, but the likelihood of inflation being persistently 

below the target now looks low. 

Credit growth overall remains quite modest. Housing 

credit has been solid and dwelling prices have 

risen over recent months. Business borrowing, on 

the other hand, has been declining, as companies 

have sought to reduce leverage in an environment 

of tighter lending standards. Large firms have had 

good access to equity capital and access to debt 

markets appears to be improving, helped by the 

better-than-expected economic conditions and increased 

willingness on the part of investors to accept 

risk. 

The Board’s judgement is that the present accommodative 

setting of monetary policy remains appropriate 

for the time being. The Board will continue 

to adjust monetary policy so as to foster sustainable 

growth in economic activity and inflation 

consistent with the target. 

5 

(Source: Reserve Bank of Australia) 

5

Budget 2009-2010 

Disposable Income 

Projected improvement in the real disposable incomes and the net tax thresholds of different 

household types from 2007-08 to 2010-11 

a) AWOTE is average weekly ordinary time earnings 

for fulltime employees. 

(b) Disposable income is the sum of private income 

and government cash transfers less net tax paid. 

(c) The net tax threshold is the private income at 

which taxes paid exceed cash benefits received. 

(Source: Australian Government, Budget 2009-10) 

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First Home Owner’s Schemes 

Commonwealth’s First Home Owner Boost 

The First Home Owner Boost scheme is 

an Australian Government Scheme to assist 

first home buyers purchase or build 

their first home. The scheme is administered 

by the NSW Government and is in 

addition to the $7,000 First Home Owner 

Grant. 

The Australian Government announced 

changes to Commonwealth’s First Home 

Owner Boost in the Federal Budget on 12 

May 2009. 

For contracts made between 14 October 

2008 to 30 September 2009 (inclusive): 

• first home buyers who purchase established homes will receive a boost of 

$7,000 that will double the grant to $14,000 

• first home buyers who build a new home or purchase a newly constructed home 

will receive an extra $14,000 to take their grant to $21,000. 

For contracts made between 1 October 2009 to 31 December 2009 (inclusive): 

• first home buyers who purchase established homes will receive a boost of 

$3,500 that will take their grant to $10,500 

• first home buyers who build a new home or purchase a newly constructed home 

will receive an extra $7,000 to take their grant to $14,000. 

NSW New Home Buyers Supplement 

First home buyers in NSW who qualify for the First Home Owner Grant and are buying a 

newly constructed home or building their first home may be eligible for an additional $3,000 

payment known as the NSW New Home Buyers Supplement. 

The $3,000 NSW New Home Buyers Supplement is in addition to the First Home Owner 

Grant and the Australian Government’s First Home Owner Boost. 

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First Home Owner’s Schemes, continued 

Residency requirements 

Both the First Home Owner Grant and First Home Plus Schemes 

have residency requirements. Under the First Home Owner Grant 

Scheme, at least one applicant must occupy the home as their principal 

place of residence for a continuous period of six months commencing 

within 12 months of settlement or construction of the 

home. 

Under First Home Plus and First Home Plus One, if you are 

buying an existing home: 

• at least one of the eligible purchasers must occupy the property as their principal 

place of residence for a continuous period of at least six months, with that occupation 

starting within 12 months after completion of the agreement or transfer. 

• in the case of vacant land, the Chief Commissioner must be satisfied the vacant 

block of land is intended to be used as the site of a home to be occupied as the 

principal place of residence of one of the eligible purchasers. 

If, for some reason, you are unable to move into your new home within 12 months and still intend 

to occupy it as your principal place of residence, you must forward an application to the Chief 

Commissioner for an extension of time before the end of the 12 month period. The Chief Commissioner 

does have the discretion to extend the time for you to move in and his decision will be 

based on the merits of your claim. 

If the residency requirement is not met and you have not been granted an extension of 

time, then within 14 days of the end of the 12 month period you must: 

• give written notice of this fact to the Chief Commissioner, and 

• pay back the grant and/or relevant duty to the Chief Commissioner. The relevant 

duty is the amount you saved as a result of an exemption or concession on transfer 

and mortgage duty. 

(Source: New South Wales, Office of State Revenue website) 

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Stamp duty on purchase of land in NSW 

Rates and thresholds 

Dutiable value of the dutiable property subject 

to the dutiable transaction 

Rate of duty 

$0 - $14,000 

$1.25 for every $100 or part of the dutiable 

value 

$175 plus $1.50 for every $100 or part , 

$14,001 - $30,000 

by which the dutiable value exceeds 

$14,000 

$415 plus $1.75 for every $100 or part, 

$30,001 - $80,000 


$30,000 

$1,290 plus $3.50 for every $100 or part, 

$80,001 - $300,000 


$80,000 

$8,990 plus $4.50 for every $100 or part, 

$300,001 - $1m 


$300,000 

$40,490 plus $5.50 for every $100 or 

over $1m 

part, by which the dutiable value exceeds 

$1,000,000 

A sale or transfer of land (including improvements) or a business in NSW is liable to 

duty. It is immaterial whether or not the transaction is effected by a written instrument 

or by other means, including electronic means. 

A liability for duty arises when the sale or transfer occurs. However, if the sale or 

transfer is effected by a written instrument, liability for duty arises when the instrument 

is first executed. 

Duty is payable within 3 months of the date liability arises. The purchaser or transferee 

is liable to pay the duty. 

(source:NSW office State Revenue website) 

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Property Prices Review 

Australian Capital Cities, Median House prices 

600 

(Source: Real Estate Market Facts) 

550 

500 

450 

400 

350 

300 

250 

200 

Mar-05 

Jun-05 

Australian Capital Cities, Median Unit prices 

400 

350 

300 

250 

200 

Sep-05 

Dec-05 

Mar-06 

Jun-06 

Sep-06 

Dec-06 

Mar-07 

Jun-07 

Sep-07 

Dec-07 

Mar-08 

Jun-08 

Sep-08 

Dec-08 

Mar-09 

Sydney 

Melbourne 

Brisbane 

Adelaide 

Perth 

Canberra 

Hobart 

Darwin 

(Source: Real Estate Market Facts) 

Sydney 

Melbourne 

Brisbane 

Adelaide 

Perth 

Canberra 

Hobart 

Darwin 

150 

Mar-05 

Jun-05 

Sep-05 

Dec-05 

Mar-06 

Jun-06 

Sep-06 

Dec-06 

Mar-07 

Jun-07 

Sep-07 

Dec-07 

Mar-08 

Jun-08 

Sep-08 

Dec-08 

Mar-09 

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Property Prices Review, continued 

Lower North Shore Median House Prices 

(Source: Property Focus REINSW) 

Houses, Lower North Shore 

2400 

2200 

2000 

1800 

1600 

1400 

1200 

1000 

800 

600 

400 

Mar-05 

Jun-05 

Sep-05 

Dec-05 

Mar-06 

Jun-06 

Sep-06 

Dec-06 

Mar-07 

Jun-07 

Lower North Shore Median Unit Prices 

T 

Units, Lower North Shore 

Sep-07 

Dec-07 

Mar-08 

Jun-08 

Sep-08 

Dec-08 

Mar-09 

Mosman 

North Sydney 

Willoughby 

(Source: Property Focus REINSW) 

600 

550 

500 

450 

400 

Mosman 

North Sydney 

Willoughby 

Sydney General 

350 

300 

Mar-05 

Jun-05 

Sep-05 

Dec-05 

Mar-06 

Jun-06 

Sep-06 

Dec-06 

Mar-07 

Jun-07 

Sep-07 

Dec-07 

Mar-08 

Jun-08 

Sep-08 

Dec-08 

Mar-09 

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A D D R E S S 

Kirribilli 

RECENT LEASES 

Bedrooms Bathroom Parking Un/Furnished $ Per Week 

17 Elamang Ave 3 2 2 Unfurnished 1,175 

Milsons Point 

38 Alfred Street 2 2 1 Unfurnished 750 


2 Dind Street 3 2 2 Unfurnished 980 


8 Glen Street 1 1 0 Unfurnished 490 

12 Glen Street 1 1 1 Furnished 525 

55 Lavender Street 3 2 2 Unfurnished 1,500 

55 Lavender Street 1 1 0 Unfurnished 490 

12 Glen Street 2 2 1 Furnished 680 



30 Glen Street Studio 1 0 Furnished 370 

94-96 Alfred Street 3 2 2 Unfurnished 900 

12 Glen Street 2 2 1 Unfurnished 605 


48 Alfred Street 1 1 1 Furnished 600 


North Sydney 

88 Berry Street 1 1 0 Furnished 500 

39 McLaren Street 2 2 1 Furnished 650 

93 Pacific Highway 1 1 0 Furnished 400 

88 Berry Street 2 1 1 Unfurnished 580 

237 Miller Street 3 2 1 Unfurnished 600 

St Leonards 

15 Atchison Street 2 2 1 Furnished 650 

15 Atchison Street Studio 1 0 Unfurnished 400 

48 Atchison Street 1 1 0 Furnished 450 

19-23 Herbert Street 2 2 1 Unfurnished 500 

15 Atchison Street 1 1 0 Unfurnished 430 

1 Sergeants Lane Studio 1 0 Furnished 450 

1-3 Albany Street Studio 1 0 Unfurnished 370 

46 Albany Street 3 2 1 Unfurnished 620 

19-23 Herbert Street 2 2 1 Unfurnished 500 

Wollstonecraft 

36 Milner Crescent 3 21/2 1 Unfurnished 620 

Homebush West 

34-36 Courallie Ave 2 1 1 Unfurnished 410 

34-36 Courallie Ave 1 1 1 Unfurnished 340 

Sydney City 

317 Castlereagh Street Studio 1 0 Unfurnished 330 

Roseville 

185 Pacific Highway 2 2 1 Unfurnished 420 

Crows Nest 

187 West Street 2 1 1 Unfurnished 420 

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Bondi 

40 Penkivil Street 2 1 1 Furnished 520 

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Sold for $505,000 

RECENT SALES 

15 Atchison Street, St Leonards 

Nexus is a modern and popular building near St Leonards’ plaza and railway 

station. This two bedroom unit with has a small sunroom at the rear and quiet side 

of the building with two modern bathrooms, Fully equipped kitchen and a secure 

parking space. 

49 Spit Road, Mosman 

This two bedroom apartment (second bedroom-study) is fully renovated with polished 

floorboards, high ceilings, gourmet kitchen, good sized master bedroom 

with built-ins and one stylish bathroom. Internal laundry. Convenient location, 

walk to everything – bus, shopping centre, restaurants and cinema. 

Sold for $470,000 

Sold for $750,000 

15 Atchison Street, St Leonards 

Modern two bedroom two bathroom fully furnished apartment plus study with security 

parking, internal laundry, built ins, and a north facing balcony. Access to gym 

facilities. Located in the Nexus building next to the heart of St Leonards CBD 

and nearby Crows Nest Shopping Strip. 

Sold for $500,000 

37 Glen Street, Milsons Point 

Sunsets in winter are especially enchanting from this classic two bedroom, 

two bathroom apartment at Peninsular Towers. Quietly positioned overlooking 

Lavender Bay and sparkled at night with North Sydney lights. Open plan living area 

large enough for a study desk, full dining table and comfortable lounge spilling onto 

the balcony. Secure parking, walk to station and ferry wharf. 

Sold for $600,000 

77 Berry Street, North Sydney 

Direct northern aspect from this sun soaked large apartment. good sized 

living room and bedroom with access to balcony, modern kitchen, gas stove, DW, 

reverse cycle air condition, internal laundry, one security parking plus lock up storage, 

total 86sm on title. 24h concierge, pool, gym, sauna, walk to shops, trains, 

restaurants 

55 Lavender Street, Milsons Point 

Modern Mirvac building fully furnished with the latest designs and features. One 

bedroom apartment with balcony overlooking Clark Park and Lavender Bay. 

Superb kitchen, combined dining and lounge. Internal laundry, A/C. . Minutes to 

transport and local shops. 

Sold for $517,500 

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Sold for $670,000 

7-13 Parraween Street, Cremorne 

3 bedrooms over two levels, full bathroom, three balconies, modern kitchen 

and bathroom, large internal laundry, air conditioning, security building with one 

car space.134sqm on title. Walk to Neutral Bay shops, schools, restaurants, buses 

and Hayden Orpheum cinema. 

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Our Staff 

John Tower, Property Valuer & CEO 

A licensed real estate agent and Property 

Valuer, John’s approach is handson, 

providing long-term service and 

commitment to his clients. His qualifications 

include a Diploma in Valuation, an 

Advanced Diploma in Real Estate 

Agency and a Masters degree in Marketing 

Management. 

Ewald Ler’che, Sales-Office Manager 

Moved to Real Estate from a physical 

education background where he won 

several championships, Ewald is now a 

sales manager at the Milsons Point 

branch. He has been with Tower and 

London for 2 1/2 years and has ten 

years experience in the real estate industry. 

Ryan Christoffersen 

Senior Property Manager 

Ryan has been working in Real Estate 

since he was 20 years old. He is experienced 

in all facets of Real Estate from 

Residential Sales to Commercial Leasing 

and Management. Ryan believes in 

a personal hands-on approach and 

treats all of his management as if they 

were his own investments. 

Jaclyne Henderson , Property Officer 

Jaclyne has a background of 5 years 

experience in Retail Management and 

Administration. Having made the move 

into Real Estate in late 2008, she is 

now undertaking Certificate III in Property 

and intends to have a fulfilling career 

in the industry. 

Jennifer Jiao, Accounts 

After arriving in Australia in 2000, 

Jennifer completed a Bachelor of 

Accounting from Sydney University and 

Central Queensland University. She 

joined Tower & London in 2007 with a 

history in customer service and is now 

looking after trust accounts while 

undertaking her CPA. 

Coco Huang, Residential Sales 

Following a successful retailing career, 

Coco has made the move to Real Estate. 

Currently studying part time to 

complete her Real Estate Licensing 

course; and looking forward to a long 

and rewarding career in residential 

sales. Coco speaks fluent Mandarin 

and Cantonese. 

Kim Phuong, Senior Administrator 

Astrid Rumata, Administrator/Reception 

With experience in customer service, 

Kim joined Tower & London in early 2001 

as an Administrator & worked her way to 

becoming the manager of the St Leonards 

branch. She has completed a 

Bachelor of Commerce, majoring in Tourism 

Management. 

Astrid joined Tower & London after moving 

from Hotel & Tourism background. 

She has completed a Diploma of Advertising 

and Certificate II in Hotel & Tourism 

Management and now has develop a 

keen interest in the property industry. 

She is currently employed as an administrator/receptionist 

for the Head Office in 

Milsons Point. 

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Our offices 

Head Office in Sydney 

Port Jackson Tower 

38 Alfred Street, 

Milsons Point, NSW 2061 

Phone: (612) 9956 6500 

Fax: (612) 9956 6522 

Hong Kong Branch 

Suite 1905 Lippo Centre Tower 

2, 89 Queensway, 

Admiralty Hong Kong 

Phone: (852) 2918 8788 

Fax: (852) 2918 9808 

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Useful Resources 


http://www.towerlondon.com 

Department of Fair Trading 

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

P: 9895 0111 F: 9895 0222 

Consumer, Trader & Tenancy Tribunal 

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

P: 1300 135 399 F: 1300 135 247 

Real Estate Institute of NSW 

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

P: 9264 2343 F: 9267 9190 

NSW Department of Lands 

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

P: 9228 6666 

Office of State Revenue 

http://www.dtf.wa.gov.au/cms/osr_index.asp 

P: 9262 1100 F: 9226 0834 

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/ 

16

2009 Spring

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