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THE PROPERTY REVIEW<br />

A Quarterly Journal Published By<br />

Tower & London<br />

<strong>Winter</strong> <strong>2007</strong>


THE PROPERTY REVIEW<br />

A quarterly journal published by<br />

Tower & London<br />

<strong>Winter</strong> <strong>2007</strong><br />

Enquiries regarding the Journal should be made to:<br />

Tower & London<br />

38 Alfred Street,<br />

Milsons Point NSW 2061<br />

Phone: 9956 6500 Fax 9956 6522<br />

Email: reception@towerlondon.com<br />

Disclaimer<br />

Data and information in this document were obtained from sources we deem to be reliable. However, no<br />

person should rely on any of the contents of this publication without first obtaining advice from a qualified<br />

professional person. Tower & London gives no guarantees, undertakings or warranties concerning the<br />

accuracy, completeness or up-to-date nature of the information provided. Tower & London Pty Limited<br />

accepts no liability for any loss or damage suffered as a result of the use of any person of the contents of<br />

this publication.


Table of Contents<br />

1. Editor’s Column: World of Ideas, John Tower<br />

2. Milsons Point/Lavender Bay: Now and Then,<br />

John Tower<br />

P. 2<br />

P. 3-5<br />

Featured Property:<br />

28/110 Alfred Street, Milsons Point<br />

3. Furnished VS Unfurnished, Kim Phuong<br />

Featured Properties:<br />

3/1-5 Albany Street, St. Leonards<br />

607/48 Atchison Street, St. Leonards<br />

4. Introduction to Property Valuation, Tania Enwiya<br />

5. Property Prices Review:<br />

- Australian Capital Cities<br />

- Sydney<br />

- Rentals from January Quarter (1/1/07 to 31/3/07)<br />

Featured Properties:<br />

14 Vernon Street, Hunters Hill<br />

83/94-96 Alfred Street, Milsons Point<br />

P. 6<br />

P. 7<br />

P. 8<br />

P. 9<br />

P. 10-11<br />

P. 12<br />

P. 13<br />

P. 14<br />

P. 15<br />

P. 16<br />

Page 1


World of Ideas<br />

John Tower<br />

I am very excited to launch The Property Review, this<br />

journal is has been alluding me for a long time. Like<br />

many business owners, I have tried, in different ways,<br />

to communicate to my clients and others parties on<br />

behalf of clients such as tenants, buyers and the service<br />

providers employed. Indeed, over the past 14<br />

years, I have produced newsletters, brochures and<br />

glossy magazines. During the late 1980’s newsletters<br />

were the new exciting medium to pass good information<br />

to clients, ten years later, these became glossy<br />

magazines with many full page advertisements. All<br />

the major franchise chains have them now, in one<br />

form or another. They are all very good at promoting<br />

properties, but that is where they stop.<br />

The Property Review is intended to be a good read. It<br />

will have few properties featured in it, yet they will be<br />

amongst many interesting articles, facts and figures,<br />

and a bit of history. The majority of our readers will be<br />

our clients, tenants and future clients and tenants.<br />

Every quarter we will assemble interesting and important<br />

facts and figures, these would include median<br />

sale prices, the movement of property values and<br />

rents. There will be actual lists of properties we have<br />

leased during the quarter, feature articles on local areas<br />

and sometimes legal and taxation matters affecting<br />

property. I will be inviting property related professionals<br />

to contribute articles to the journal; above all, I<br />

will be looking for new and exciting ideas.<br />

Owning a property in this prime location in Sydney is<br />

a major asset, renting in this part of Sydney is expensive.<br />

Corporate tenants are one the great driving<br />

forces of the rental market. I am amazed at the misinformation<br />

property owners have about the market.<br />

Tenants appear to be more knowledgeable than owners<br />

in many situations. Buyers: when property values<br />

are increasing flock to buy any property at whatever<br />

the asking price just to buy an investment property;<br />

and when the values are not increasing: they don’t<br />

buy. Yet often they get caught up in the hype of the<br />

market and over pay and find themselves owing more<br />

than the value of the property. Worst of all are those<br />

that buy off the plan without a good knowledge of floor<br />

plans and rely purely on the advertising material produced<br />

by the marketing company; they queue up for a<br />

launch of a new development eager to own a piece of<br />

that proposed building, no matter what price.<br />

Exaggerated property values are another area I<br />

intend to investigate; I am often surprised at what<br />

people pay, especially first time investors. The<br />

questions I am often asked: how much is my<br />

property worth? They expect an answer immediately!<br />

and if the answer is not instant and inflated,<br />

the reaction is usually very negative. Property<br />

investment is not for those who wish to make<br />

quick cash, it can happen but to very lucky few;<br />

most who try to make quick cash returns, fail.<br />

Residential property investment is for the longterm.<br />

Those that hold on to good property, keep it<br />

in good condition, move with times in it’s presentation;<br />

will ultimately have a lifetime income<br />

stream and capital gains to be cashed in at the<br />

right time when the family can make real use of<br />

the funds. Many of my clients began investing in<br />

residential property in the mid 1990’s buying a<br />

property at a time, every few years as equity is<br />

mainly used to fund new investments, careful not<br />

to over extend themselves with borrowing. Some<br />

have a combination of sizes and styles of residential<br />

dwellings. Most properties have doubled<br />

in value since and are now showing more than<br />

10% return on initial investment. No clever financing<br />

deals, no exaggerated income prospects,<br />

a healthy equity in each property or in the<br />

whole portfolio; and thinking before buying.<br />

If the least that The Property Review will do is to<br />

encourage it’s readers to stop and think before<br />

plunging into a purchase, then it would have succeeded.<br />

But I am aiming for more, in the way of<br />

ideas: the success of property investment begins<br />

with the purchase, but then: it has to maneuver<br />

through the market, the building management,<br />

the tenancy, the upkeep, law and taxation. The<br />

Property Review will assist to steer you through.<br />

Page 2


Milsons Point/Lavender Bay, now and then<br />

Milsons Point/Lavender Bay is bounded by the suburb<br />

of North Sydney, Middlemiss Street and Lavender<br />

Street in the north, generally by Ennis Road and<br />

Broughton Street in the east, Lavender Bay in the<br />

south and generally by the suburb of McMahons<br />

Point and Miller Street in the west. Milsons Point is<br />

named after James Milson, an early land owner. It<br />

was previously known as Murdering Point. Lavender<br />

Bay is named after the boatswain, George Lavender.<br />

Milsons Point/Lavender Bay<br />

and adjoining localities.<br />

Obtained from North Sydney council<br />

web site.<br />

Development of the area dates from 1805 when the<br />

first land grant was made, with land used mainly for<br />

grazing. Some growth occurred in the 1830s, following<br />

the establishment of ferry services across the<br />

Sydney Harbour. Subdivision and sale occurred<br />

during the 1850s with a number of large stately<br />

homes built overlooking the bay.<br />

Milsons point C.1915<br />

Parts of the information contained in this article has<br />

been derived from North Sydney Council web site.<br />

Page 3


Milsons Point/Lavender Bay, now and then<br />

Further growth occurred from the 1890s, following<br />

the establishment of a tram service and the opening<br />

of the North Shore railway line. Then continued<br />

in the early 1900s, although some houses and public<br />

buildings were demolished in the mid 1920s to<br />

make way for the approaches to the Sydney Harbour<br />

Bridge. Some growth occurred from the<br />

1930s, following the construction of the Sydney<br />

Harbour Bridge. The most significant development<br />

occurred in the post-war years.<br />

Development has continued in more recent years,<br />

with the dwelling stock nearly doubling between<br />

1991 and 2001. Milsons Point/Lavender Bay has<br />

experienced a massive increase in population between<br />

1996 and 2001, a result of new dwellings<br />

being added to the area, especially medium and<br />

high density housing.<br />

110 Alfred Street, one of the<br />

first buildings in Milsons Point<br />

to be converted to residential<br />

apartments by Walker developments.<br />

Many of the commercial buildings constructed during<br />

the 1970s and 1980s have been converted to<br />

high density residential apartments with a small<br />

portion of commercial and retail component. New<br />

high rise towers were also constructed up to 21<br />

floors and many of the apartments enjoy spectacular<br />

views of the Harbour, the bridge and Opera<br />

House.<br />

The Colonnades,<br />

Distinctively different.<br />

This trend that began in the boom time of the late<br />

1980s has continued in Milsons Point almost unabated<br />

as one building was completed another<br />

commenced construction. Refurbishment of office<br />

buildings and construction of brand new building<br />

has been very popular with most of the large residential<br />

development companies such as Mirvac,<br />

Walker development and more recently Platino<br />

Properties converting the old Yellow pages building<br />

in Glen Street. Mirvac has just completed an<br />

amazing conversion of 55 Lavender Street, Milsons<br />

Point and achieving prices per square meter never<br />

seen before in Milsons Point . The increase in the<br />

supply of property has not reflected on the prices<br />

as many predicted, in fact, on the contrary: values<br />

have continued to increase throughout the 1990s<br />

55 Lavender Road. The latest<br />

conversion by Mirvac. Most<br />

apartments look out onto Lavender<br />

Bay.<br />

Page 4


Milsons Point/Lavender Bay, now and then<br />

Rents have also kept a good pace, as with modern<br />

secure buildings close to major transport facilities,<br />

Milsons Point has been sought after by professional<br />

people and corporate tenants for their executive<br />

staff. Since the early 1990s the demand<br />

has been consistently high.<br />

Some of the properties are exposed to unreasonable<br />

noise levels from Luna Park, have had their<br />

rents devalued since the most recent opening of<br />

Luna Park, also the tenants tend to stay for shorter<br />

periods as the noise gets to them after a while.<br />

This of course has a direct relationship to the values<br />

of property. Properties that are affected by the<br />

noise will have lower value than those that are not.<br />

That is until when and if Luna Park shuts down, for<br />

the last time with a little luck and common sense.<br />

Bradfield Park, nearly became a parking station<br />

for Luna Park. Thankfully it has been<br />

preserved. New children's play ground; and<br />

down below, boys during lunch enjoy a game<br />

of football.<br />

Milsons Point/Lavender Bay is nearly surrounded<br />

by parks. Starting from the west with Watt Park<br />

around Lavender Crescent down to Railway Avenue,<br />

then at the Lavender Bay Wharf is the small<br />

Quiberie Park connected to the bay side walk way<br />

around Lavender Bay past Luna Park and all the<br />

way to Kirribilli passing under the Harbour Bridge.<br />

A beautiful walk<br />

around Lavender<br />

Bay.<br />

Then there is the newly landscaped Bradfield Park,<br />

considered one of Sydney’s most important public<br />

spaces, stretching from the corner of Lavender<br />

and Alfred Streets hugging the railway line past<br />

Milsons Point station and continuing all the way<br />

down to the harbour under the Bridge, the recent<br />

children's playground on the corner of Alfred and<br />

Fitzroy streets is a splendid addition by North Sydney<br />

Council.<br />

The beauty of Sydney Harbour is the main attraction<br />

of wanting to be residents of Milsons Point; but<br />

that is not the complete picture: the accessibility to<br />

good private schools in Kirribilli and North Sydney,<br />

the recently re-established parks and children’s<br />

playgrounds, the trains, buses and ferries, the<br />

beautiful walks along the Harbour and the Olympic<br />

swimming pool are all contributing factors for the<br />

demand to live in Milsons Point & Lavender Bay.<br />

Views from Aquarelle, one of<br />

the new medium rise buildings<br />

near Luna Park<br />

Page 5


28/110 Alfred Street, Milsons Point<br />

Here is an example of what can be achieved in Milsons Point:<br />

Stanic Harding Architects brought this apartment back to its<br />

shell allowing for a new design to fill it with light and harbour<br />

views while separating public from private spaces. A typically<br />

adequate modern apartment has been spectacularly transformed.<br />

By applying the most advanced architectural designs<br />

and the use of space age building materials.<br />

A remarkable Macassar ebony veneer cabinet decorates the<br />

living room, concealing entertainment equipment is an example<br />

of the extensive and cleaver joinery applied throughout the<br />

apartment. The kitchen wrapped by a cornerless pod on one<br />

side and a gorgeous dining table on the other; could only be<br />

equipped with Gaggenau.<br />

The generous Master bedroom quarters extended by a dressing<br />

room forming part of a luxurious ensuite. The second bedroom<br />

extended to a size of main bedroom and fully fitted;<br />

separated by another dramatic bathroom is the third bedroom<br />

that doubles up as a functioning study. The unit area including<br />

balcony is 163sqm + 30sqm for tandem Parking + 5sqm for a<br />

lockable storeroom.<br />

The semicircle balcony cradles the entire harbour side of the<br />

apartment where brilliant Sydney harbour views compete with<br />

stunning interior design. Double secure parking and storage<br />

below; near Milsons Point trains and ferries. Offered at<br />

$1,550,000. For viewing arrangement contact John Tower -<br />

0408 216 979<br />

Page 6


Furnished verses Unfurnished<br />

Kim Phuong<br />

The question many owners of<br />

investment property ask themselves<br />

is whether they should<br />

furnish their property. There<br />

are both positive and negative<br />

sides of furnishing an investment property. Before<br />

making the decision it is important to consider the<br />

difference and discuss it with your Managing Agent<br />

who would have a better knowledge of the market<br />

where your property is situated.<br />

The first thing investors should think about is<br />

whether there is a demand for furnished properties<br />

in the area. Some parts of Sydney such as Milsons<br />

Point have a higher demand for furnished properties<br />

opposed to areas such as Camperdown which<br />

has more of a demand for unfurnished properties.<br />

This is due to the demographic status of people the<br />

area attracts.<br />

This then leads to the question of what type of tenants<br />

do you want to attract. Even though there are<br />

higher numbers of unfurnished properties in the<br />

rental market, you will find that there are certain<br />

sectors of the market who will want furnished properties.<br />

These people are more likely to want the<br />

property for a specific term such as students, people<br />

who are in between homes e.g. waiting for their<br />

own place to be renovated, people who have been<br />

contracted for work or corporate tenants who will<br />

only use the property during the week for work but<br />

then return home for the weekend. These are tenants<br />

who are willing to or are able to pay a higher<br />

rent for the convenience of not having to purchase<br />

all the items that are required for everyday living.<br />

As an established agency in the lower north shore<br />

area we find that a total of 22.5% of our managements<br />

are furnished properties and are usually limited<br />

to studios and one to two bedroom properties.<br />

The main reason for this is that larger properties<br />

are usually sought by families who have their own<br />

belongings and furniture gathered throughout the<br />

years. Families tend to require a lease for a longer<br />

term as they prefer stability and will not like the disruption<br />

of constantly moving especially if they have<br />

children.<br />

The advantage of about having furniture is that the<br />

landlord can show the property in a unique and different<br />

light from other similar properties on the market.<br />

It is the best way to highlight the better features<br />

of the property or downplay those that are not so<br />

great such as the amount of space the property<br />

has. If the property is small there are ways in<br />

which space saving furniture can transform the<br />

property, when people are inspecting an empty<br />

property, they may struggle to visualize all their<br />

belongings fitting in the property of that size.<br />

There are instances where people fall in love with<br />

the way the property is set up but on the other<br />

hand people have different ideas on what is considered<br />

more to their taste and may not take the<br />

property as they do not like the furniture at all. Unfortunately<br />

the landlord cannot change this unless<br />

they are willing to pay for the costs of either having<br />

the furniture moved into storage or purchasing<br />

new furniture which is very unlikely. The key point<br />

is the furniture must be purchased carefully so that<br />

it suites most tastes in that segment of the market.<br />

The cost associated with furnishing a property can<br />

be expensive. The initial outlay of purchasing everything<br />

from furniture down to kitchenware can<br />

amount into the thousands. Then later there is the<br />

issue of whether the furniture may look outdated<br />

compared to the newer properties that come into<br />

the market. If this is so then it will mean that the<br />

property will stay<br />

empty for a longer<br />

period of time and<br />

the owner may have<br />

to resort to updating<br />

the furniture to keep<br />

up with the trends of<br />

people.<br />

The other costly aspect<br />

is that the owner is fully responsible for the<br />

repair or replacement of every item provided to the<br />

tenant.<br />

Some owners have anxiety over whether there are<br />

costs of replacing items that the tenant has damaged.<br />

Even though larger bonds are collected, in<br />

some cases the bond will not cover the total cost<br />

so it falls on the owner to have the property made<br />

ready for the next tenants. The benefit of furnishing<br />

property is that it can be leased out for a<br />

higher rent than an unfurnished property. It also<br />

allows the owner to claim a tax depreciation allowance<br />

to cover for fair wear and tear.<br />

Regardless of whether you decide to furnish or to<br />

leave the property unfurnished my advice to all<br />

investors is that landlord’s insurance should be<br />

taken out on the property to safeguard your investment<br />

from all the unsuspected losses that you<br />

may incur.<br />

Page 7


3/1-5 Albany Street, St. Leonards<br />

Over the past few years St Leonards has been transformed<br />

from an older style suburb to a modern and exciting place to<br />

live. North Sydney Council rezoned a number of streets near<br />

the railway stations to medium and high rise apartment buildings<br />

with a small component of commercial retail suites.<br />

Many buildings has been completed, mostly of medium to high<br />

quality finishes. Nearly one thousand new apartments have<br />

been built and a brand new station with plaza shops and a<br />

huge fountain in the middle.<br />

1-5 Albany Street is one of these new buildings, this one is<br />

very special as it has good retail shops below and funky cafés.<br />

Only a few minutes walk to the station and a short stroll to Willoughby<br />

Road with all its good restaurants this location is perfect.<br />

The building is a medium rise two year old construction of<br />

modern Face Brick finish, serviced by fast lifts and security<br />

system. The building comprises many studios, one, two and<br />

three bedroom apartments.<br />

Apartment three is one of the larger studios/one bedroom<br />

units. This apartment has a bedroom area that can be closed<br />

off. Combined lounge/dining are serviced by a modern fully<br />

equipped kitchen, modern bathroom, internal laundry and a<br />

private balcony.<br />

The property is offered beautifully furnished and equipped;<br />

and leased at $380 per week. A good investment at an asking<br />

price of $338,000 fully furnished. Viewing details : Emma<br />

Surtees 0405 030 243.<br />

Page 8


607/48 Atchison Street, St Leonards<br />

Atchison Street is in the heart of the new developments<br />

in St Leonards. Recently North Sydney Council closed a<br />

portion of it; and the plan is to increase the footpath area<br />

for the balance of the street past number 48: Arden.<br />

Arden was completed in 2004, there is no compromise to<br />

the quality throughout the building. Serviced by two fast<br />

lifts and an attractive and elegant entry foyer. Many<br />

shops on the ground floor and some commercial suites.<br />

Best of all: the café downstairs will deliver to all the<br />

apartments. Nearly breakfast-in-bed.<br />

Unit 607 is on the south west of the building attracting<br />

plenty of light; it offers spacious living and dining area<br />

which flows from the open plan kitchen complete with<br />

Smeg appliances and plenty of cupboard space.<br />

This neatly designed 2 bedroom + study features an<br />

abundance of natural light and the latest in fixtures and<br />

fittings & stretches over 110sqm (including car space).<br />

Study area is complete with large windows for natural<br />

light. Main bedroom and living area have access to covered<br />

entertaining balcony. It also features large mirrored<br />

built-ins and ensuite.<br />

Unit offers reverse-cycle air-conditioning, internal laundry,<br />

and extra cupboard space. Security building with<br />

gym facilities, and an onsite building manager. Viewing<br />

details: Emma Surtees 0405 030 243.<br />

Page 9


Introduction to Property Valuations (Source: API “Valuation Principals and Practices”)<br />

Tania Enwiya<br />

A valuer’s assessment is always in writing, and<br />

must be able to withstand scrutiny by other professional<br />

valuers and, if necessary, by a court.<br />

A valuation is an assessment of the market value of<br />

a property, at a specific date. “Market Value is the<br />

estimated amount for which an asset should exchange<br />

on the date of valuation between a willing<br />

buyer and a willing seller in an arms length transaction,<br />

after proper marketing, wherein the parties had<br />

each acted knowledgeably, prudently and without<br />

compulsion.”<br />

Purposes of valuation<br />

The reasons for property valuations is when there is<br />

a reason that involves the title of the property or a<br />

planned change to the title such as:<br />

• Mortgage purposes<br />

• Sale of property or transfer of title<br />

• Deceased estate<br />

The Valuation Process<br />

Valuation involves market analysis and comparison.<br />

When carrying out a valuation a valuer carries<br />

out a thorough analysis of comparable transactions<br />

(sales or and lease) and applies the result of this<br />

analysis to the valuation of a given property by applying<br />

an accepted valuation method.<br />

A valuer conducts an internal and external inspection<br />

of the subject property as at date of valuation.<br />

Market research relating both to sale and leasing<br />

data can be retrieved by a valuer from various<br />

sources such as the council (under property sale<br />

law, councils must be notified of property sales)<br />

and/or government property related websites. Data<br />

on property rentals and expenses is obtained from<br />

real estate agents or from owners and tenants.<br />

• Stamp duty and capital gains proposes<br />

• Self managed superannuation funds<br />

Direct Comparison Approach<br />

• Extensions and refurbishments<br />

One of the common methods used when valuing<br />

residential property is Market Comparison “direct<br />

comparison” approach. This approach has the valuer<br />

Who is qualified to conduct these valuations.<br />

A Real Estate Agent may provide an appraisal, but<br />

this is not a valuation, as an agent is not trained in<br />

proper analysis of property values. A registered valuer<br />

is trained, qualified and authorised by registration<br />

to conduct property valuations.<br />

break down pieces of comparable Market evi-<br />

dence into units of comparison. These units of<br />

comparison could include dollars per square meter.<br />

The units of value applicable to that particular<br />

valuation task depend on market behaviour. The<br />

valuer’s task is to research the property market to<br />

determine how buyers and sellers make their decisions.<br />

In determining which units of comparison to<br />

The valuer is an expert, providing a specific professional<br />

service in return for a professional fee. This<br />

apply; it is important that the valuer does not impose<br />

his/her opinion on the market but rather the<br />

means that the valuer has a duty to conduct proper<br />

valuer’s opinion should reflect how the market is<br />

research, and to use sound and professional judgement.<br />

operating.<br />

Page 10


Introduction to Property Valuations<br />

Direct comparison requires the valuer to examine<br />

sales of properties similar to the property being<br />

valued and after making appropriate adjustments;<br />

value is placed on subject property based<br />

on the value of sales. Factors are taken into account<br />

when making these adjustments including<br />

size, location, views, aspects, quality and general<br />

state of repair and presentation of residence,<br />

number of bedrooms and bathrooms, and other<br />

features of the property.<br />

For example a two bedroom unit plus study sold<br />

for $450, 000 and another similar two bedroom<br />

unit without study in the same locality sold for<br />

$420 000. Therefore…it is fair to say that a willing<br />

purchaser would pay $30 000 extra for a<br />

study. Knowing the price of each comparable<br />

unit eg: study area.<br />

Economic factors influencing the market<br />

Theories of market determination of price and<br />

quantity are a central part of economic analysis.<br />

Factors that influence the property values and<br />

the number of transactions include; Macro factors<br />

which influences the economic market hence<br />

the property market and the Micro factors which<br />

influence the sub-markets/sector eg: sale sector<br />

and/or leasing.<br />

Macro factors – the property market is sensitive<br />

to the interest rate environment. The purchaser<br />

of a property is usually reluctant to purchase a<br />

property in times of a high interest as their costs<br />

of their repayments are greater. Therefore they<br />

require a high income to service the same size<br />

loan when compared to a lower interest rate environment.<br />

Interest rates movements are set by<br />

the Reserve Bank.<br />

Micro factors – Although property markets are<br />

driven by the economy there are certain factors<br />

which influence certain individual markets. These<br />

include; demand and supply, the different property<br />

sectors will be at different stages of their cycle<br />

depending on the level of demand and supply<br />

within each sector.<br />

Social and Economic factors – change in focus to<br />

residential housing to apartment developments.<br />

Trends have changed especially in the cities.<br />

Political factors – governments can influence<br />

property markets with planning regulations. They<br />

can control the amount of new land supply making<br />

sure its affordable within the location and can<br />

stimulate some while depressing others.<br />

Physical factors influencing values<br />

Location, Outlook and Aspect. An elevated<br />

site with views will usually be worth more than<br />

a similar site located at the bottom of a building.<br />

A property with good amount of light coming<br />

through has an advantage.<br />

Surrounding developments; the closer your<br />

property is to public transport schools shops<br />

and other local community facilities the higher<br />

the worth.<br />

Physical Characteristics; Age of the property,<br />

number of bedrooms and bathrooms, number<br />

of living areas.<br />

Size and shape ; The design and the usefulness<br />

of the space is always a factor, not just<br />

the size of the property.<br />

Inclusions/fixtures ; properties are fitted with<br />

various levels of inclusions, these do affect<br />

their value, however overcapitalization is also<br />

common.<br />

In conclusion, property valuations are an imperative<br />

part of property ownership, they apply facts<br />

and common sense to stakeholders in property;<br />

and a degree of confidence and reassurance for<br />

those that are anticipating the property market.<br />

Page 11


Property Prices Review<br />

Australian Capital Cities, Median House prices<br />

(Source: Real Estate Market<br />

Sydney is still below Dec 2003 to Dec 2005, Melbourne and Canberra have increased. Trend prices for<br />

Brisbane, Adelaide and Hobart have continued their steady , unbroken upward movement since June<br />

2001. Perth has had an amazing increase to $415,000. Darwin is up by 20% over the year.<br />

in $1,000 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06<br />

Sydney 325 460 533 553 525 521<br />

Melbourne 295 330 367 366 356 373<br />

Brisbane 189 205 258 305 312 329<br />

Adelaide 150 178 223 260 275 286<br />

Perth 171 193 223 258 306 415<br />

Canberra 214 244 323 365 368 382<br />

Hobart 125 144 192 252 268 285<br />

Darwin 189 207 216 265 295 360<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06<br />

Sydney<br />

Melbourne<br />

Brisbane<br />

Adelaide<br />

Perth<br />

Canberra<br />

Hobart<br />

Darwin<br />

Australian Capital Cities, Median Unit prices<br />

Prices in Sydney have declined since June 2004. Melbourne prices have grown since December 2001<br />

annually. Canberra grew slightly in December 2006. Brisbane, Perth, Darwin & Adelaide prices have<br />

shown a steady increase since 2001. Hobart prices have declined over the last quarter but up for the year.<br />

in $1000 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06<br />

Sydney 288 329 365 376 365 356<br />

Melbourne 230 262 288 291 299 315<br />

Brisbane 165 173 205 235 253 276<br />

Adelaide 110 134 167 197 208 218<br />

Perth 123 147 178 203 244 323<br />

Canberra 157 197 264 289 302 304<br />

Hobart 88 96 148 203 209 225<br />

Darwin 149 155 155 185 216 269<br />

(Source: Real Estate Market Facts)<br />

400<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06<br />

Sydney<br />

Melbourne<br />

Brisbane<br />

Adelaide<br />

Perth<br />

Canberra<br />

Hobart<br />

Darw in<br />

Page 12


Sydney Median House Prices<br />

(Source: Property Focus REINSW)<br />

Generally, Sydney median house prices have stabilized, showing only less than 1% reduction. North Sydney<br />

Local Government area has shown a sight increase, Mosman has not changed and Willoughby recorded<br />

a healthy 3.6% increase. Volume of sales is slightly down in North Sydney and Willoughby but firing<br />

again in Mosman over last year’s sales.<br />

Prices<br />

Volume<br />

Local Gov. Area<br />

Annual<br />

Median Price Change<br />

Lower<br />

10 year % Quartile<br />

Upper<br />

Quartile<br />

No of<br />

sales<br />

Annual<br />

change 10 year %<br />

North Sydney 945 1.06 107.61 790 1,320 455 -2.78 -25.9<br />

Mosman 1,750 0 145.79 1,250 2,600 378 23.13 -12.09<br />

Willoughby 930 3.6 126.71 800 1,225 778 -5.7 -28.95<br />

Sydney General 526 -0.67 135.74 355 715 46,794 3.47 -5.8<br />

Sydney Median Unit Prices<br />

(Source: Property Focus REINSW)<br />

Median unit prices in Sydney general are slightly down. Unit prices have stabilized in North Sydney over<br />

the past year. Mosman is showing a large reduction down by 7.43%. Willoughby is slightly down as well.<br />

Sales volumes are down across Sydney, as property investors are staying out of the market, the number<br />

of sales continues to plummet.<br />

Prices<br />

Volume<br />

Local Gov. Area<br />

Annual<br />

Median Price Change<br />

Lower<br />

10 year % Quartile<br />

Upper<br />

Quartile<br />

No of<br />

sales<br />

Annual<br />

change 10 year %<br />

North Sydney 505 0.2 77 396 680 1,485 -17.55 -3<br />

Mosman 483 -7.43 78.8 380 695 435 -17.46 -8.81<br />

Willoughby 460 -1.5 80.39 387 530 660 -31.11 -4.49<br />

Sydney General 359 -1.91 102.75 299 500 24,632 -25.63 -4.02<br />

Rents<br />

(Source: Property Focus REINSW & Tower & London)<br />

Median rents for Inner Sydney have been increasing in all types of residential property described below as<br />

the supply is limited and the demand is increasing, vacancy factors have been approaching 1% across<br />

Sydney. Tower and London portfolio of properties in Milsons Point has shown a reasonable increase of<br />

4.1%, but more interesting is the new apartments in St Leonards are increasing at a rapid pace of 12.9%<br />

over the past 12 months.<br />

Weekly Rents<br />

Change in<br />

Median<br />

Dec-05 -<br />

Dec-06<br />

Mar-06 -<br />

Mar-07<br />

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07<br />

Inner Sydney<br />

1Br Unit 320 320 320 330 6.5%<br />

2Br Unit 380 390 390 400 5.3%<br />

2Br house 380 400 400 400 5.3%<br />

3Br house 475 500 493 510 7.4%<br />

Tower & London Milsons Point office 516 524 528 535 537 4.1%<br />

Portfolio St Leonards office 402 412 416 421 454 12.9%<br />

Page 13


Properties Leased during March Quarter <strong>2007</strong> by Tower & London<br />

ADDRESS Bedrooms Bathrooms Parking Facilties<br />

Furnished (F)/ Unfurnished(U)<br />

Rental Price<br />

Camperdown<br />

103/1-3 Larkin Street 1 1 n/a n/a U 350<br />

205/1-3 Larkin Street 1 1 n/a n/a U 330<br />

615/1-3 Larkin St 1 1 1 n/a U 390<br />

110/1-3 Larkin St 1+Study 1 n/a n/a U 330<br />

Crows Nest<br />

2/3 Boronia St 2 1 1 n/a U 500<br />

503/28 West St 2 2 1+V G+P+S U 570<br />

128 West St 3 2 1 n/a F 650<br />

4/19 Crows Nest Rd 2 2 1 n/a U 450<br />

Drummoyne<br />

1/11 Napier St 3 2.5 1 n/a U 530<br />

Milsons Point<br />

406/38 Alfred St 2 2 1 G+P+SS U 600<br />

601/38 Alfred St 1 1 1 G+P+SS F 525<br />

2002/38 Alfred St 3 2 2 G+P+SS U 1500<br />

202/38 Alfred St 2 2 1 G+P+SS U 580<br />

504/38 Alfred St 2 2 1 G+P+SS U 600<br />

65/48 Alfred St 1 1 1 G+P F 490<br />

103/48 Alfred St G+P F 550<br />

17b/70 Alfred St 1 1 1 G+P F 525<br />

54/110 Alfred St 3 2 1 n/a F 900<br />

3/35 Arthur St 2 1.5 1 n/a U 780<br />

B33/2 Brady St 3 2 2 n/a U 780<br />

1605/2 Dind St 3 2 2 G+P+S+C U 1250<br />

709/8 Glen Street 1 1 n/a G F 500<br />

1605/12 Glen Street 2 2 1 n/a U 600<br />

803/12 Glen St 2 2 1 G+P U 600<br />

802/12 Glen St 1 1 n/a G+C F 580<br />

2003/30 Glen St F 580<br />

17/1 Harbourview Cr. 3 2 2 n/a U 850<br />

406/55 Lavender St G+P U 450<br />

906/55 Lavender St 1 1 n/a G+P U 500<br />

508/55 Lavender St 1 1 n/a G+P F 550<br />

1602/55 Lavender St 3 2 2 G+P U 1750<br />

2003/55 Lavender St 2 2 1 G+P U 950<br />

303/55 Lavender St 1 1 n/a G+P F 490<br />

503/55 Lavender St 2 1 1 G+P U 500<br />

205/55 Lavender St 1 1 n/a G+P U 480<br />

1/5 Middlemiss St 1 1 n/a n/a U 280<br />

10/48 Upper Pitt St 2 1 1 n/a U 450<br />

438/38-46 Albany St 3 2 1 n/a U 580<br />

9/1-5 Albany St Studio/1 1 n/a n/a U 340<br />

1408/3 Herbert st 1 + Study 1 1 G+P+SS F 455<br />

607/48 Atchison St 2 1 1 G U 520<br />

North Sydney<br />

509/88 Berry Street 1 1 1 n/a F 530<br />

803/93 Pacific Hwy 1 1 1 n/a U 330<br />

502/93 Pacific Hwy 1 1 1 G U 330<br />

1103/93 Pacific Hwy 1 1 n/a n/a U 330<br />

1107/77 Berry St 1 1 n/a G+P+SS+C F 520<br />

6/166 Pacific Hwy 1 1 1 n/a F 450<br />

1/3 Plunkett St 3 1 1 n/a U 615<br />

33/8 Hardie St 1 1 1 n/a F 460<br />

25 McDougall St 2 1 n/a n/a U 680<br />

Sydney<br />

728/187 Kent St 1 1 n/a P +G F 550<br />

507b/317 Castlereagh St Studio 1 n/a n/a U 285<br />

Waverton<br />

9/10 Carr St 3 2 1 n/a U 570<br />

4/1 Moodie St 2 1 1 n/a U 395<br />

Woolstonecraft<br />

54/13-17 Sinclair St 1 1 1 n/a F 380<br />

Key: G gym P pool<br />

SS spa/sauna C conceirge<br />

Page 14


14 Vernon Street, Hunters Hill<br />

Hunters Hill Waterfront<br />

This stunning 4 bedroom, 3 level house features an in<br />

ground pool, gym room and even a guest retreat. Once<br />

you enter the house you are greeted with a marble floor<br />

foyer, complete with Grand chandelier. On this level is a<br />

formal lounge/dining area, lounge room with floor to ceiling<br />

wooden cupboards and shelves, a huge light<br />

drenched kitchen with views over the lush green backyard<br />

& pool and the sweeping water views.<br />

Walking up the staircase on your left hand side is an enchanting<br />

mural giving you the impression that you are<br />

looking out over Sydney Harbour, the Opera House and<br />

Sydney Harbour Bridge in the distance. Sweeping<br />

around to your right brings you to the bedrooms. The<br />

king size master bedroom features its own separate<br />

dressing room with an abundance of cupboard space<br />

along with an ensuite complete with a corner spa bath.<br />

On the lower level there is a massive gym room with<br />

floor to ceiling mirrors, a guest retreat that includes a<br />

kitchen, bedroom, bathroom and a lounge room. This<br />

level also features a bar area. For Lease at $5,000 per<br />

week. Viewing details: Rosalind Oey: 0419 694 172.<br />

83/94-96 Alfred Street, Milsons Point<br />

PORTOFINO is one building in Milsons point that<br />

attracts a certain type of sophisticated occupier.<br />

Nearly opposite the station it is ideally located for<br />

public transport or just a short stroll down to catch<br />

the ferry.<br />

Milsons Point continues to attract corporate tenants<br />

because of the many features of the area mentioned<br />

in an article in the issue: Milsons Point/<br />

Lavender Bay, now and then. This building is no<br />

exception, serviced by two fast lifts, high tech security<br />

and a gym, it is one of the most desired.<br />

Unit 83 is a large three bedroom penthouse style<br />

apartment with split level. Two bathroom and two<br />

balconies enjoying views of the City and Lavender<br />

Bay. Two lock-up parking spaces, built’ ins, air conditioning,<br />

brand new timber floors in the living area<br />

and a great harbour view. For lease at $950 per<br />

week. Viewing details: Rosalind Oey: 0419 694<br />

172.<br />

Page 15


Tower & London staff<br />

John Tower<br />

John Tower, the founder of the business, is a<br />

licensed Real Estate Agent and a Registered<br />

Property Valuer. His qualifications include<br />

Diploma in Valuation, Advanced Diploma in<br />

Real Estate Agency and a Masters Degree in<br />

Marketing Management. John's hands-on<br />

approach provides personal and long-term<br />

commitment to his clients. He is supported<br />

by key staff who are passionate about the<br />

quality of their work.<br />

Rosalind Oey<br />

Client Liaison & Registered JP<br />

Rosalind was born in Singapore and moved to<br />

Australia in 1984. Rosalind studied and<br />

worked in the hospitality industry before making<br />

Real Estate her chosen career since 1997.<br />

Rosalind is a licensed Real Estate Agent and<br />

her focus is customer service.<br />

Kim Phuong<br />

Management Administration - St Leonards<br />

Kim has completed a Bachelor of Commerce<br />

Degree majoring in Tourism Management.<br />

She had three years experience in the customer<br />

service industry before joining the<br />

team at Tower & London in early 2001.<br />

Emma Surtees<br />

Property Management & Sales - St Leonards<br />

Emma was working in a customer service<br />

environment before becoming a licensed real<br />

estate agent. She has worked at Tower &<br />

London since 2004. Her goals are to travel the<br />

world and to be a successful real estate agent.<br />

Tania Enwiya<br />

Property Management - Milsons Point & St<br />

Leonards<br />

Tania has completed an Advanced Diploma<br />

of Property Valuation. She is becoming a<br />

licensed real estate and registered property<br />

valuer and wants to get her masters in Urban<br />

Estate & Development. She has been working<br />

in the property industry for four years and<br />

have had two years experience in property<br />

valuation.<br />

Mandy Lai<br />

Accounts/Administration - Milsons Point<br />

Mandy was born in Hong Kong and came to<br />

Australia with her family when she was eight<br />

years old. She has completed a Bachelor<br />

Degree in Social Work and joined Tower &<br />

London to pursue her career in real estate and<br />

currently studying Certificate III in Property.<br />

Ewald Ler’che<br />

Born in Austria and became an Australian<br />

resident in 1982. Ewald has a Physical Education<br />

background. He competed in Australian<br />

Championships in 1984 and 1985, and<br />

was a power-lifting champion – South Coast,<br />

NSW. In 1988, he entered a new career<br />

working in Real Estate. He relocated to Sydney<br />

in <strong>2007</strong> and recently joined Tower &<br />

London as Sales Manager to continue his<br />

career in Real Estate specialising in the<br />

North Shore area.<br />

Leah Klaus<br />

Leah was born and raised in Tumut and have<br />

just moved to Sydney to join the Tower &<br />

London team. She completed her HSC recently<br />

and will start studying Certificate III in<br />

Property soon. Her goal in life is to have a<br />

successful Real Estate career.<br />

Page 16


Tower & London offices<br />

Head Office<br />

38 Alfred Street,<br />

Milsons Point NSW 2061<br />

T: (02) 9956 6500<br />

F: (02) 9956 6522<br />

St. Leonards Branch<br />

5 Atchison Street,<br />

St. Leonards NSW 2065<br />

T: (02) 9906 8442<br />

F: (02) 9906 8446<br />

Hong Kong Branch<br />

Suite 1905,<br />

Lippo Centre Tower 2,<br />

89 Queensway, Admiralty<br />

Hong Kong<br />

T: (852) 2918 8788<br />

F: (852) 2918 9808


Useful Resources<br />

Department of Fair Trading<br />

http://www.fairtrading.nsw.gov.au/<br />

P: 9895 0111 F: 9895 0222<br />

Consumer, Trader & Tenancy Tribunal<br />

http://www.fairtrading.nsw.gov.au/cttt.html<br />

P: 1300 135 399 F: 1300 135 247<br />

Real Estate Institute of NSW<br />

http://www.reinsw.com.au/<br />

P: 9264 2343 F: 9267 9190<br />

NSW Department of Lands<br />

http://www.lands.nsw.gov.au/<br />

P: 9228 6666<br />

Office of State Revenue<br />

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

P: 9262 1100 F: 9226 0834<br />

Real Estate.Com.au<br />

http://www.realestate.com.au/<br />

Domain.com.au<br />

http://www.domain.com.au/<br />

Tower & London<br />

http://www.towerlondon.com

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