2008 Spring

PROPERTY REVIEW
A Quarterly Journal
Spring 2008

PROPERTY REVIEW
A quarterly journal published by
Tower & London
Managing Director: John Tower
Editor: Matilda Haddad
Design and Layout: Matilda Haddad
Published with thanks to Katherine Lim, Laura Scott & Luke Pickard
Enquiries regarding this journal 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.

C o n t e n t s
Rent hikes explained
John Tower 2
Generation Rent
Matilda Haddad 7
Property Prices Review:
- Australian Capital Cities 10
- Lower North Shore, Sydney 11
- Rental movements 11
Past Rentals 12
Current Rentals 13
Current Sales 14 & 15
Tower and London
Our Team 16
Our Offices 17
Page 1

The Emperors New Clothes
John Tower,
Property Valuer
The notion that
recent rent hikes
are a direct result
of rising interest
rates is problematic as there are many
other factors being ignored. Interest rates
have been increasing for years and yet
renters are only now being asked to pay
up.
Below is a deep look at these factors, with
a view towards understanding how they, in
conjunction with interest rates, affect the
current rental market.
The Australian economy
has proven to be robust; riding on the back a
mineral resources boom, substantially fuelled
by China’s industrialisation and economic
growth. While areas of the economy like
manufacturing and tourism under perform, the
export of mineral resources is booming.
This is having profound effects on the
economy in areas of job growth and revenue
from company taxes, which on the surface,
appears to have led to budget surpluses, an
increase in government grants to families and
a lowering of individual taxes.
The material below is the first and last
paragraph found in the RBA’s Statement on
Monetary Policy that was issued last May:
“Inflation in Australia picked up
over the past year in an
environment of limited spare
capacity and earlier strong
demand. In these circumstances, a
significant slowing in the growth of
demand from the rapid pace of
2007 will be needed in order to
return inflation to the target over
time. There are signs that such
moderation is now occurring.”
“At it’s most recent meeting, the
Board considered whether the
current stance of monetary policy
was sufficiently restrictive to
reduce inflation over time. On
balance, the Board judged that the
setting of monetary policy was
appropriate for the time being. The
Board will continue to monitor
developments, and will make
adjustments to policy as needed to
ensure that inflation returns over
time to the medium-term target.”
A deeper look reveals the wealth and
growth is concentrated to the minerals rich
states such as Queensland and Western
Australia; whereas other states are faring
poorly in comparison.
Nevertheless, successive tax cuts and the
relatively low unemployment rate in recent
years has pushed the consumer price inflation
higher than what the Reserve Bank of
Australia (RBA) would like. The only lever the
Reserve Bank of Australia has is Monitory
Policy, being the cash rate and the base
interest rate and this must be used effectively.
Page 2

A mortgage is often the biggest financial
responsibility faced by individuals and families
in Australia. Therefore, the rate of interest
rate applied to mortgages is a major concern.
According to RBA’s report on Domestic
Economic Conditions, non performing loans
account for around 0.4 per cent of the value
of housing loans on bank’s domestic books
for March.
The RBA sets the level paid by banks on
the wholesale market, then banks charge
homeowners a premium on the cost of
borrowing, which in turn yields a profit for the
bank and its shareholders.
Interest rates set by RBA have climbed
steadily over the last few years. The major
banks also increased their rates, independent
of RBA’s hikes, to make up for their losses
overseas, particularly after the US-led credit
crunch and the cost of the supply of funds.
The shortage in the supply of funds has
led to two important consequences: banks
have passed on their costs to borrowers,
claiming high borrowing costs are affecting
their profit margins and then, as a result of the
crunch, smaller lenders with limited access to
funds, are unable to compete for customers
and are quashed out of the market.
At its most basic level, this means
mortgage repayments have risen to levels
that directly affect property owners, especially
as most Australians are already dealing with
other rising costs for petrol and food.
The Australian
Bureau of Statistics
(ABS) figures for
May 2008 show that,
in trend terms, the
total value of dwelling
finance commitments, excluding alterations
and additions, decreased by 3.6 per cent from
April and owner occupied housing and
investment housing commitments decreased
by 3.7 per cent and 3.4 per cent respectively.
This is a very steep decline from figures
recorded in late 2007.
Page 3

Developments in financing
activity and in the established
housing market generally point
to a more subdued demand
this year.
Young Australians, who by
previous generations
standards, would normally be
opting for home ownership at
this stage in their lives, are
turning to renting instead.
This demographic, along with older owner
occupiers, are being deterred by the current
high interest rates, stamp duties and the lack
of any signs of capital gains to be accrued
from participating in the housing market,
despite the current trend for rising rents.
HIA Chief Economist, Harley Dale,
believes the Junes figures, which register a
seventh consecutive trend decline for building
approvals, signal a weakening in residential
construction over the second half of 2008 and
an inability of the housing industry to keep up
with demand.
“The responsiveness of supply to
growing demand has been crippled
by draconian regulation, ridiculous tax
grabs, restrictive land release
programs, and a failure to deliver
required industry skill packages,”
added Mr Dale.
A look at building approvals from late 2007
to the present shows a repetitive pattern of
decline. Most pronounced are the low figures
recorded for units. This is perhaps a reflection
of the waning confidence developers have
over the return of investors to the market,
particularly those who buy big chunks off the
plan.
According to the Housing
Industry Association (HIA),
building approvals weakened
last June, following a big drop
in May. These figures have
reached their lowest level
since the end of 2006.
On a seasonally adjusted basis, total
building approvals fell by 0.7 per cent in June,
following a drop of 7.8 per cent in May. The
number of detached house approvals was
down by 0.8 per cent and approvals for the
more volatile multi-unit segment eased by 0.5
per cent following a 20 per cent drop the
previous month.
Over the six months leading up to June
2008, detached house approvals fell 2.4 per
cent and multi-unit sector the decline was a
sharper 13.3 per cent.
Photograph courtesy of constructionphotographs.com
On a state by state basis, the number of
seasonally adjusted building approvals in
June fell by 34.5 per cent in Tasmania; 16.5
per cent in New South Wales, 7.6 per cent in
South Australia and 6.5 per cent in Western
Australia. Similarly, the trend number of
building approvals fell by 6.4 per cent in the
Northern Territory and 1.5 per cent in
Queensland. Only Victoria and the Australian
Capital Territory saw some improvements,
with recorded figures up by 9.9 per cent and
17.4 per cent respectively.
Page 4

The preliminary estimated resident
population (ERP) of Australia at 31 December
2007 was 21,181,000 persons. This is an
increase of 331,900 from the figure estimated
at the same time the previous year.
The increase is the largest
recorded for a 12 month period since
the ERP concept was introduced in
1971.
According to the demographic
statistics provided by ABS, this puts
the rate at 1.59 per cent, making it the
fastest annual growth rate recorded
since 1.78 per cent in 1988.
The growth of Australia's population has
two components: natural increase (number of
births minus number of deaths) and net
overseas migration (number of arrivals minus
number of permanent departures).
Natural Increase: at the end of 2007, this
was estimated to be around 147,400 persons.
This figure is a whopping 15,000 higher than
the 132,400, which was recorded for 2006.
Net Overseas Migration (NOM): for the
year ended 31 December 2007, it was
estimated 410,900 persons arrived into
Australia while 226,400 departed. The
contribution made to the population growth by
NOM (55.6%) was higher than that of natural
increase (44.4%).
This population increase puts a constant
strain on the housing market, particularly
affecting rental vacancy rates and the
average cost of renting.
There are 1.6 million renter households in
Australia. The current shortage of well
positioned and affordable housing suggests
that a very large section of the population can
be described experiencing some level of
‘housing stress’.
The Federal Government, aware of the
shortage of reasonably priced properties, has
launched the National Rental affordability
Scheme, which promises to provide 50,000
new and affordable homes for renters at 20
per cent below the market rate. The
Government also promises to supply a further
50,000 homes if this does not
appropriately ease the strains of
the shortage.
These recent increases
suffered by renters have been big
news items in the media. The
rising costs of living and renting
is presented through numerous
‘hard luck’ stories that depict
desperate families and young
Australians queuing up at opens and battling
a bidding war in order to find suitable housing.
Australian Property Monitors recently
reported that Australian capital cities had
experienced double digit rent increases over
the past year and judged Sydney and Perth
as the least affordable places to live in
Australia. The average rent for a two bedroom
apartment is Sydney is now $400 per week
compared with $360 per for the same period
last year, similar increases are typical for
three bedroom houses.
The Real Estate
Institute of NSW
(REINSW), estimates
Sydney’s July vacancy
r a t e s i n p r i m e
residential areas (within
10 kilometres of the city), to be around 1.2.
have been fluctuating between 1.5 and 0.8
per cent over the past 12 months and have
rested at 1.2 in the latest July figures.
REINSW believes a
vacancy rate of
around 3 per cent is
most desirable as
this is when supply
adequately meets
demand.
Page 5

The ingredients for rent rises are all there:
• Investors are not buying, therefore
developers are not building. Bingo!
Investors are a key ingredient.
Developers rely on investors more than
owner occupiers. Many properties are
sold as investments off the plan and a
good percentage of these transactions
take place even before construction
finance is approved. When investment
is down, properties are sold to owner
occupiers and this reduces the share
of accommodation available for rent.
• Generation Y put a lot of pressure on
the rental market: renting is not an intrinsic
part of this demographic, in fact, if given the
chance and affordability space, Gen Y would
flock to the market, using the Internet to
source important property information. But,
resultant from the deficiency of adequate, well
placed and affordable property, Australia’s
young adults are choosing to rent homes that
are near where they need or want to spend
their time. This in turn directly affects vacancy
rates and rent prices.
• Australia’s Population increase also
affects supply and demand: the number of
people leaving Australian shores is not
enough to level out the demand for
accommodation placed on the rental market
because of a growing population with limited
supply.
• Building approvals are down because
Governments impose many restrictions
and taxes on the developers: The NSW
government in particular imposes heavy
taxes on property developers. Real
Estate Institute of New South Wales
(REINSW) President Steve Martin
believes pressures could be eased if tax
relief and other incentives are offered.
It must also be noted that governments
have always imposed taxes of varying
degrees, so why does it matter now and not
between 2002 and 2004 when apartment
buildings were mushrooming everywhere?
Building approvals are slipping, but the
affects of these should not be affecting
current rent levels. The drop in last June’s
figures will not be felt for another 18 months
to two years, when the buildings are
completed.
The question then is: why are
investors not buying, even
though rents are high and
o c c u p a t i o n i s v i r t u a l l y
guaranteed? Rate of return on an
investment apartment is currently at
5.1%, much higher than when the
market was running hot in 2003. It is
the value of a property, together
with the interest rates, that makes
residential property unattractive to invertors.
Unfortunately, in Australia there are
investors who fuel the property market when
things are looking up and then desert the
market when sentient is not favourable. It is
my opinion that one of two things must
happen so that investors return to the market.
First, interest rates must come down so
that the real cost of owning an investment
property becomes less of a burden. This is
most likely, given the latest economic
indicators. Or, alternatively, property values
must come down, as the continuation of rising
rents can only last as long as tenants can
afford it and most tenants have almost
reached this peak.
More should be done to attract middle
level investors to the residential property
market. Small family superannuation funds
should be encouraged to participate and then,
when more cashed up investors
begin to partake, interest rate levels
will cease to be as significant.
Interest rates are only one factor in
the purchasing decisions made by
investors. The others are property
values, rental return, building
expenses, capital gains and long term
viability of the locality. These factors, in
conjunction with the other economic and
societal conditions in Australia, affect the
Australian rental market.
Page 6

G e n e r a t i o n
Matilda Haddad,
Communications Advisor
A discussion on renting in
Sydney is not complete
without also taking a look at
‘Generation Y’ and their
presence in the housing
market.
As described by the Centre for Affordable
Housing, housing is a high price commodity.
Although the last census shows the median
gross individual income increased by 24 per
cent between 2001 and 2006, house prices
have doubled in all the major capital cities,
making affordable home ownership an
unattainable pipe dream for many of
Australia’s young people.
The First Home Owner Grant has been
fixed at $7,000 for over eight years and with
doubling house prices, it
no longer adequately
provides the bolster it
once did.
Figures from the
NSW Department of
Housing and Australian Bureau of Statistics
(ABS) show that first home buyers account for
barely one in six (18.4 per cent) of all home
purchases. As a result, the Real Estate
Institute of Australia (REIA) has called on the
government to make it easier for first home
buyers to get into the market by doubling the
grant.
R e n t
average annual wage,
where as in 1996 only
four times the average
annual wage was
needed. Also, home
buyers now dispense
around a third of their income (32.3 per cent)
on mortgage repayments where as in 1996 it
was 17.9 per cent.
A McCrindle report highlighting the
importance of young Australians participating
in the economy and the housing market
shows this demographic make up around 20
per cent of the population (4.2 million).
Generation Ys are more formally educated
than their predecessors and with improved
high school retention rates in years 10 and 12
and record levels in university admittance,
one would assume Australia’s young people
would be economically better off, but many
are not.
Further education delays entry to the work
force and increases the competition in labour
markets amongst graduates. As a result,
many young people are finding themselves
either underemployed or struggling to find
stable, long-term employment.
With reports showing that 40 per cent of Gen
Y are employed on a casual basis and
McCrindle research uncovering that 57 per
cent of Gen Ys still rely on their parents for
some financial support, it is no wonder that 67
per cent of this demographic believe home
ownership may be unattainable in their
lifetime.
House prices, the global credit
crunch; increased fuel costs; the
rising cost of travel and food,
coupled with increasing interest
rates and mortgage repayments, push young
people into the renting market or force them
to stay at home till much later in life.
Department of Housing figures show the
average home now costs seven times the
Things are currently very tight
in Sydney. Vacancy rates have
dropped dramatically, moving
between 0.9 and 1.4 from May to
July. These figures, released by
the Real Estate Institute of NSW
(REINSW), show a recurring trend. They are
a drastic drop from 1.6 per cent recorded at
the beginning of last year and a major dive
from around the desirable 3 per cent mark
recorded at the start of 2006.
Page 7

Housing affordability is not only a strain on
wannabe home owners but renters too. The
increased demand for well positioned housing
has pushed Sydney’s rents sky
high. The June figures recorded
by Australian Property Monitors
show the median weekly asking
rent in Sydney as $400 for units
and $420 for houses, almost a
200 per cent increase from the
start of the decade.
RP Data break down the discouraging
median weekly rent figures further:Marrickville
rents rose around 16 per cent, while other
popular suburbs like Leichhardt and
Woollahra saw rent increases of 22.9 percent
and 28.3 percent respectively. A home that
was leased for $525 per week in North
Sydney a decade ago can now be leased for
$680.
Using the law of supply and demand, it is
forecasted that the next figures will be bleaker
still as Sydney’s population grows by what the
RINSW estimate as 1400 a week. Adding to
the pressures is the significant decline in the
number of new building approvals and
construction recorded over the last few years
and the significant decline in investment.
A look into the property market over the
last 20 years shows a correlation between the
social changes that have occurred in Australia
and the increasing generation
gap between Xs and Ys.
Low home ownership figures can
also partly be explained by
looking at what each generation
considers important. While
previous generations placed
greater importance on saving,
marriage, starting a family and home
ownership, the report found that one-fifth of
25-29 year olds are still living with their
parents, many hold off starting a family well in
their 30s and 59 per cent are renting.
The report also
shows that because of
the higher levels of
university admittance,
Gen Y begin adulthood
already in debt from
Higher Education
Contribution Scheme (HECS) responsibilities.
This debt, coupled with the increased
adoption of credit cards as a part of their
financial management, means this generation
currently owes a hefty $60 billion in total.
With a lot of young people
trapped in a cycle of long-term
renting, many cannot afford to
save an adequate amount for a
deposit on an investment or
their own home.
A recent AMP.NATSEM
Income and Wealth Report
highlights the difference between the saving
and spending behaviour of Generation Y with
the behaviour of Generation X when they
were the same age in 1989.
The report shows that although 41 per
cent of Gen Y are saving for a deposit on a
property, only 25 per cent have saved more
than $10,000 so far, which can partly explain
why home ownership figures are down 9.1
per cent from 1989.
The generational gap in
home ownership figures can
also be explained through a
look at housing affordability.
According to the HIA, housing
affordability is at a record low in
Sydney and with the cost of
borrowing set to improve in
2009; median house prices are expected to
continue to rise, further shutting out first home
buyers, while increasing the prosperity of
home owners.
The BIS Shrapnel’s Residential Property
Prospects, 2008 to 2011 report agrees;
improved lending rates will only increase
house prices and in Sydney, these prices are
expected to increase by 18 per cent in the
next three years.
Page 8

With these escalating house prices, it is no
wonder that the proportion of Australian
households owning their homes outright has
fallen from 42 per cent in 1995 to 34 per cent
as of the last census.
Auction clearance rates for the
beginning of July also reflect the current
affordability crisis. Sydney’s auction rate
stood at around 49 per cent, this is well
under last year’s recorded rate of 59 per
cent.
Of course affordable
Sydney housing does
exist, but it is found
predominantly on the
outskirts of the suburbs, far
from work or in areas considered unattractive
because of their detachment from friends and
family; trendy eateries, bars; gyms, nightspots
and other social environments.
It seems Australia’s young adults are
unwilling to sacrifice their lifestyles for home
ownership, creating a shift in social values
and making city living the new young
Australian dream.
With labels like ‘sponges’, ‘spoilt’, selfish
and ‘KIPPERS’ (Kids in Parents Pockets
Eroding Retirement Savings) being thrown
around households and in the media, it is
clear that Generation Y do not have a sound
reputation, but what is ignored are the factors
that led to this pigeonholing.
Ask this generation what they want for
themselves and for their futures and most will
agree that one day, and most probably when
they are in their 30s, they do want to be
investors and home owners. But, it will only
happen under the right economic and social
circumstances.
Many are discouraged from the housing
market because of the unmanageable costs
of a mortgage. According the ABS: “the
difference in costs between younger and
older owners with a mortgage is largely a
reflection on the difference in house prices,
and hence the amount borrowed, at the time
Page 9
of purchase. On average, recent home buyers
paid higher prices than those who bought
their homes ten or more years ago”.
Generation Y will, more than likely,
end up doing exactly as their parents
did, the main differences being they will
do it in their 30s instead of 20s and their
homes and families will be on a smaller
scale.
The demise in building approvals,
investment and construction; hefty
interest rates, the shift towards further
education, which delays entry into the
workforce as well as directly impacts on
savings, and of course, the shortage in the
supply of affordable and well positioned
homes for rent and for sale can all partly
explain why many of Australia’s young adults
have not achieved as much as their parents
did by adulthood.
It is often said that ‘Baby Boomers,’ those
born after World War Two and up to the early
60s and ‘Generation X,’ those born between
the early 60s and the early 80s, endured
hardships and sacrifices to ensure their
‘Generation Y’ offspring were better educated
and more ‘comfortable’ in every sense
of the word.
Although intentions were virtuous,
the research into current trends shows
previous generations may actually have
disadvantaged young Australians from
entering the housing market through their
property investments and own wealth
generation.
According to Steve Martin, president of
REINSW, many property investors took
advantage of last years market opportunities
by selling their rental properties and cashing
in on their superannuation. These properties
were predominantly sold to owner-occupier
households, and this impacted directly on
vacancy rates rent prices in NSW and
severely disadvantaged many young
Australians. And with rent prices so high, it is
no wonder many Gen Ys are staying home for
longer. And for those that do fly the nest,
many are unable to accrue any real savings,
let alone a deposit for a home.

Property Prices Review
Australian Capital Cities, Median House prices
(Source: Real Estate Market Facts)
in $1,000 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
Sydney 544 538 531 525 521 520 521 521 521 522 538 537 546
Melbourne 359 357 358 358 361 364 370 375 381 394 431 428 435
Brisbane 306 307 309 312 316 320 325 330 335 345 383 376 394
Adelaide 267 271 274 276 277 280 283 289 293 299 320 323 338
Perth 267 277 291 307 325 352 384 414 438 452 455 462 462
Canberra 366 364 367 368 369 373 377 382 387 413 425 437 448
Hobart 261 263 266 269 271 276 282 285 288 296 317 312 323
Darwin 262 269 279 296 311 328 350 360 374 385 400 399 407
600
550
500
450
400
350
300
250
200
Sydney
Melbourne
Brisbane
Adelaide
Perth
Canberra
Hobart
Darw in
Houses
House prices in Brisbane,
Canberra and Adelaide rose
slightly in the March quarter
while these was less of a
change in Melbourne and
Sydney. Perth has come to a
grinding holt, the very low
volume of sales could be
hiding the true nature of these
prices, but overall, they are
reasonably steady.
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
Australian Capital Cities, Median Unit prices
(Source: Real Estate Market Facts)
in $1,000 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
Sydney 373 370 368 364 362 361 358 359 356 358 361 364 368
Melbourne 293 295 298 299 303 306 312 315 319 328 368 358 367
Brisbane 236 238 245 252 259 268 273 276 282 290 330 318 333
Adelaide 202 205 210 208 211 214 217 219 221 227 250 249 262
Perth 210 220 233 244 258 280 302 324 341 353 370 366 369
Canberra 293 296 301 302 303 301 302 304 307 318 346 341 352
Hobart 203 212 215 209 209 222 225 225 226 230 245 245 252
Darwin 185 188 199 216 232 248 255 269 279 282 320 302 308
400
350
Sydney
Melbourne
Brisbane
Units
Melbourne and Perth have
joined the ranks of Sydney ‘s
prices and Canberra is not too
far behind.
300
250
200
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
Adelaide
Perth
Canberra
Hobart
Darwin
The rest of the cities only
showed slight improvements in
March, after a very weak
December 07.
Unit prices are looking
healthier than houses, but this
may be resultant from a
reduced number of apartment
buildings. A couple of cuts in
interest rates could spark
things up once again.
Page 10

Lower North Shore Median House Prices
(Source: Property Focus REINSW)
Local Gov Area 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
Mosman 1788 1615 1679 1780 1675 1711 1802 1558 1675 1750 1954 1788 1813
North Sydney 971 924 931 930 907 950 1071 920 998 925 995 1103 1089
Willoughby 1012 938 934 948 1007 946 981 903 1075 1131 1150 1210 1038
Sydney General 511 495 517 521 516 525 520 524 516 525 538 551 554
Houses, Lower North Shore
Houses
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
T
Mar-07
Jun-07
Sep-07
Dec-07
Mar-08
Mosman
North Sydney
Willoughby
Following a large drop in
September last year,
Mosman house prices
have leveled while North
Sydney’s prices rose and
then leveled. Conversely ,
Willoughby is showing
signs of weakness.
Overall, prices are either
coming down or leveling.
More activity might show
a slightly different picture.
Lower North Shore Median Unit Prices
(Source: Property Focus REINSW)
Local Gov Area 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
Mosman 518 505 533 500 425 500 456 500 515 500 525 527 460
North Sydney 512 505 510 490 495 513 500 490 497 545 548 552 551
Willoughby 440 423 468 466 456 465 450 459 445 475 487 485 500
Sydney General 380 370 364 363 358 357 359 351 348 361 361 369 363
600
550
500
450
400
350
300
250
200
Mar-05
Jun-05
Sep-05
Dec-05
Mar-06
Jun-06
Units, Lower North Shore
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Dec-07
Mar-08
Mosman
North Sydney
Willoughby
Sydney General
Units
Lower north shore areas
appear to be stable, with
the exception of Mosman.
The massive drop in
prices may reflect a low
number of sales.
The figures for June and
September 08 may show
an improvement.
Rents
(Source: Property Focus REINSW & Tower & London)
24 month
Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 change
Inner Sydney
(city & suburbs close by) 1Br Unit 380 380 380 400 380 400 420 450 18.4%
Upper Quartile (25% of prices 2Br Unit 470 470 490 500 525 525 550 560 19.1%
are higher than the upper quartile)
2Br house 450 450 494 485 500 523 540 550 22.2%
3Br house 620 625 650 680 696 689 738 750 21.0%
Tower & London
Management Portfolio
Milsons Point
Branch 524 528 535 537 528 535 545 565 7.8%
St Leonards
Branch 412 416 421 454 465 440 470 508 23.3%
Page 11

A glance at some past rentals
A D D R E S S
Bedrooms Bathrooms Car Space (Un)furnished? $ per Month
Cammeray
39 Rosalind Street 1 1 1 Unfurnished 1,955
Chatswood
11 Railway Street 4 3 2 Unfurnished 4,128
Killara
24 Locksley Street 3 2 2 Unfurnished 6,083
Kirribilli
2 Elamang Avenue 1 + Study 1 0 Unfurnished 2,064
17 Elamang Avenue 3+ Study 3 2 Unfurnished 6,083
19 Holbrook Avenue 3 1 1 Unfurnished 2,824
Milsons Point
38 Alfred Street 2 2 1 Unfurnished 2,738
38 Alfred Street 2 2 1 Unfurnished 2,955
38 Alfred Street 1 1 1 Unfurnished 2,173
48 Alfred Street 1 1 1 Furnished 1,955
48 Alfred Street 1 1 1 Furnished 2,390
70 Alfred Street 1 1 1 Unfurnished 2260
110 Alfred Street 1 1 0 Furnished 2,042
2 Dind Street 2 2 1 Furnished 4,041
8 Glen Street 1 2 1 Unfurnished 2,303
12 Glen Street 2 2 1 Unfurnished 2,824
12 Glen Street 1 1 0 Furnished 1,803
30 Glen Street 1 1 1 Furnished 2,607
30 Glen Street 1 1 1 Furnished 2,738
55 Lavender Street Studio 1 0 Unfurnished 2,390
55 Lavender Street 1 1 0 Unfurnished 2,259
Neutral Bal
8 Hardie Street 1 1 1 Furnished 2,129
North Sydney
39 McLaren Street 2 2 1 Furnished 3,150
5 Middlemiss Street 1 1 0 Unfurnished 1,521
93 Pacific Highway Studio 1 0 Furnished 1,738
28 West Street 3 2.5 2 Unfurnished 2,955
9 William Street 1 1 0 Furnished 2,260
St Leonards
38-46 Albany Street 3 2 2 Unfurnished 3,150
38-46 Albany Street 3 2 1 Unfurnished 3,042
1-5 Albany Street Studio 1 0 Furnished 1,955
15 Atchison Street 2 + Study 2 1 Furnished 2,824
48 Atchison Street 1 1 0 Furnished 2,042
48 Atchison Street 3 2 2 Unfurnished 3,259
Sydney
187 Kent Street 1 1 0 Furnished 2,607
Wollstonecraft
13-17 Sinclair Street 1 1 1 Furnished 1,728
36 Milner Crescent 3 2.5 1 Unfurnished 2,607
5 Rocklands Road 1 1 2 Unfurnished 1,782
Page 12

2 Dind Street Milsons Point
C u r r e n t r e n t a l s
Situated in the most sought after building in Milsons point, this apartment has
views across the harbour to the eastern suburbs. Brilliantly designed, it features
two bedrooms with renovated bathrooms and a brand new kitchen that boasts first
class appliances. Timber floors highlight a living and dining area that opens onto a
full length balcony. Offered with fortnightly cleaning.
Experience some of the most dramatic and inspiring city and harbour views from
this contemporary apartment. Every room with a view! Featuring three bedrooms
(3rd room bed or study), two bathrooms, a large living area and a balcony. Granite
kitchen with gas cooking, Gaggenou appliances, marble flooring and DLUG.
Located in a security building with reverse cycle air -conditioning, 24 hour
concierge, pool and gym. Walking distance to ferries, trains and shops.
38 Alfred Street, Milsons Point $745pw
Enjoy the highest standard in contemporary living in this bright New York style
apartment. Upstairs is a beautifully designed kitchen with marble bench tops and
stainless steel splash backs, connected through arched doorways to a dining area
overlooking the Opera House and CBD. A uniquely designed staircase flows down
to the living area, bedroom and study adds character to this adorable living space.
103 Kirribilli Ave, Kirribilli $650pw
This spacious two bedroom apartment is situated in the best position for
uninterrupted views of the City and harbour. The lounge and dining areas overlook
this stunning view, inviting you to relax and enjoy the scenery from the comfort of
your own home and from two different balconies. Featuring two and a half bathrooms,
security parking, pool, gym, spa & sauna and only minutes to trains, ferries,
shops and local cafes, this apartment should not be overlooked.
55 Lavender Street Milsons Point $1200pw
Only a short stroll from the ferry wharf and train station, this apartment crosses
from North to South - on the Northern side, the lounge room opens onto a sunny
balcony. The Southern side boasts views of the Harbour Bridge, Opera House and
the sparkling water. It has three good sized bedrooms, two bathrooms, a modern
kitchen and undercover parking, and is offered complete with white goods.
38 Alfred Street, Milsons Point $790pw
Latitude is the newest and most exciting building in Milsons Point. Found on the
19th floor and occupying the front north side of the building, this extra large fully
furnished unit enjoys distant harbour and district views. It features two large
bedrooms with luxurious bathrooms, a delightful kitchen, an open plan living space
warmed by the sun and secure parking. Luxurious and conveniently located, you
may just find yourself asking to extend the minimum 9 month lease.
1-3 Peel Street, Kirribilli $980pw
A two story penthouse style apartment. Entry on the lower level opens onto a
large lounge and dining area. Passing the laundry room with ample linen
cupboards leads to a large kitchen with great cupboard space and gas cooking.
The large living area with balcony is great for entertaining while upstairs has three
good sized bedrooms with high ceilings. The 2.5 bathrooms, mini storage room,
two storage cages and two secure parking spaces make this a rare find.
48 Atchison Street, St Leonards $750pw
Page 13

C u r r e n t s a l e s
88 Berry Street North Sydney
This North facing, fully furnished unit has one bedroom, one
bathroom and security parking. Ideal for a first home buyer or
an investor, bringing in an income of $400pw.
47 square meters internal. North Sydney conveniences and
transport are just around the corner.
Asking Price: $370,000
Details: Milsons Point Office Ph:9566 6500
55 Lavender Street, Milsons Point
Found in Mirvac’s latest creation, the ‘Latitude’ building, this
good sized one bedroom unit features tranquil Lavender Bay
views form an enclosable balcony. This unit is extremely
attractive to professional tenants.
Asking Price: $550,000
Details: Milsons Point Office Ph: 9956 6500
30 Glen Street, Milsons Point
Twin key property in a prime location. The first unit has one
bedroom, one bathroom, internal laundry, a secure car space
and storage. The second is a fully furnished studio. Both units
have air-conditioning and access to pool, gym, sauna and
concierge. A combined return of approx 900pw.
Asking Price: $740,000
Details: Milsons Point Office Ph: 9956 6500
7 Northcliff Street, Milsons Point
This apartment is possibly one of the largest studios in Sydney;
and comes complete with ultra modern fixtures and fittings. The
bed neatly folds away, leaving a large room with a lot of space.
Fully equipped internal laundry and kitchen. Short walk to ferry
and stations.
Asking Price: $450,000
Details: Milsons Point Office Ph: 9956 6500
6 Waiwera Street, McMahons Point
An East facing terrace with three bedrooms and two bathrooms.
The main bedroom features an ensuite, balcony and walk in
wardrobe. The fireplace and high ceilings in the lounge give
extra character, while the separate dining area, private
courtyard and sandstone terrace with views are great for
entertaining. Living Approx 180sqm, total approx 220sqm.
Asking Price: Auction date 27 th September on site
Viewing: contact Ewald Ler’che 0414 921 391
Page 14

2 Dind St, Milsons Point
C u r r e n t s a l e s
Spectacular harbour views can be seen from every room of
this modern three bedroom and two bathroom apartment in
Milsons Point’s ‘The Pinnacle’. Also features an exquisite
granite kitchen with gas cooking, Gaggenou appliances,
marble flooring and has double security parking.
Asking Price: $1.7M
Details: Milsons Point Office Ph: 9956 6500
77 Berry Street North Sydney
This sun soaked, one bedroom, one bathroom, North aspect
apartment in Beaumonde Tower has a good sized modern
living space with access to a balcony, pool, gym, sauna, one
car space and lock up cage. The kitchen is equipped with a
gas stove and dishwasher and the laundry is internal. Total
86sm.
Asking Price: $520,000
Details: Milsons Point Office Ph: 9956 6500
77 Berry Street North Sydney
This near new studio with spectacular harbour views can be
found in the heart of North Sydney, in the popular and iconic
Beaumonde Tower. Quality fittings, a balcony, access to the
building's gym, pool and sauna and with 24 hour concierge
and one parking space makes this studio is a rare find.
Asking Price: $420,000
Details: Milsons Point Office Ph:9956 6500
28 West Street, North Sydney
This 3 bedroom, 2.5 bathroom, North East facing townhouse
features a courtyard, separate living and dining areas,
internal laundry, huge double lock-up garage with a storage
room and a balcony. Boasting 153 square meters and 222
square metres in total, it has access to an indoor pool, gym,
spa and sauna.
Asking Price: $820,000
Details: Milsons Point Office Ph: 9956 6500
93 Pacific Highway, North Sydney
Enjoy magical, floor to ceiling harbour, city and bridge views
from this two bedroom and two bathroom unit. With a fully
equipped kitchen, and luxurious bathroom, this immaculately
furnished unit is stylishly finished and decorated with
modern, high quality furniture. Also comes with one parking
space.
Asking Price: $695,000
Details: Milsons Point Office Ph: 9956 6500
Page 15

O u r T e a m
John Tower, Property Valuer & CEO
As a licensed real estate agent and
Property Valuer, John’s approach is
hands-on, providing long-term service
and commitment to clients. His
qualifications include a Diploma in
Valuation, an Advanced Diploma in Real
Estate Agency and a Masters of
Marketing Management.
Luke Pickard, Property Manager
Moving from hospitality management to
real estate, Luke began a traineeship
with Tower & London in late 2007. He
is currently undertaking a Certificate
Three in Property through Real Estate
Training Solutions and wishes to
advance further in his career within the
property industry.
Kim Phuong, Senior Administrator
With three 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.
Tania Enwiya, Property Manager
After gaining an Advanced Diploma of
Property Valuation, Tania is now on her
way to becoming a licensed real estate
agent and registered property valuer.
She also aims to complete a Master of
Urban Estate Management. She has
been working in the property and
valuation industry for four years.
Katherine Lim, Property Manager
Joining Tower & London with nine years
experience in corporate residential
leasing and a degree in Marketing from
Macquarie University, Katherine now
works in leasing at the Milsons Point
branch. Her history includes working with
developers and real estate consultants
such as Knight Frank.
Laura Scott, Property officer,
Laura joined Tower & London with six
years experience in customer service
and administration. She has earned an
Advanced Diploma in Business
Advertising and a Business Certificate
and is now about to undertake her
Certificate Three in Property.
Matilda Haddad, Communications Advisor
While completing a BA with a triple
major in Education, English & Sociology,
a Master of Media Practice & a
Graduate Certificate in Strategic Public
Relations, Matilda worked in several
customer service and administration
roles. She joined Tower & London in
May 2008 as Editor of Property Review.
Ewald Ler’che, Sales Manager
Moving to real estate from a physical
education background where he won
several weight lifting championships,
Ewald is now a sales manager at the
Milsons Point branch. He has been with
Tower and London for 16 months and
has ten years experience in the real
estate industry.
Candy Trinh, Administrator
After moving to Australia in 2004, Candy
completed a Diploma in Media and
Communications, Visual Arts & Design
and a an Advanced Diploma in Business
Management. She is currently employed
as an administrator for the Milsons Point
branch.
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.
John Ellis, Project Marketing
Joining Tower & London in May 2008
with a Diploma in Marketing & seven
years experience in property, John’s
roles include managing investor
portfolios, assisting developers with
sales and marketing strategies as well
as selling projects both off the plan and
after completion.
Zheng Ye (Annie), Sales Coordinator
Working in the Hong Kong office as a
Partner, Annie is the Hong Kong and
China sales coordinator for Tower and
London. She has a Finance and
Accounting Degree from Macquarie
University and is currently undertaking
an MBA at Tsinghua University.
Page 16

O u r O f f i c e s
Head Office
38 Alfred Street
Milsons Point
NSW 2061
Sydney, Australia
T: (02) 9956 6500
F: (02) 9956 6522
St. Leonards Branch
15 Atchison Street
St. Leonards
NSW 2065
Sydney, Australia
T: (02) 9906 8442
F: (02) 9906 8446
Hong Kong Branch
Suite 1905
Lippo Centre Tower 2
89 Queensway, Admiralty
Hong Kong
T: (852) 2918 8788
F: (852) 2918 9808
Shenzhen Branch
Regus Anlian Centre
Level 26, Anlian Plaza
4018 Jin Tian Road
Futian District,
Shenzhen 518026
China
T: (86) 755 3395 5633
F: (86) 755 3395 5999
Page 17

Useful Resources
Tower & London
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/