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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