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Vol 11. No.122

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	85.51	-0.89
Cash Rate	4.50	Steady
90 Day Bill	4.97	Steady
10 Year Bond	5.108	-0.032
ASX 200	4301.5	-44.2

NSW Property

Millers Point sales (AFR Pg.54)

• Following the recent sale of 2 public housing properties in Millers Point a further 20 more houses will be placed on the market.
• A 4 bedroom 1840s terrace at 58 Argyle Place sold for $1.82 million.
• A 6 bedroom 1840s home at 20 Lower Fort Street sold for $1.36 million.
• Both properties sold on leaseholds and require extensive renovation in line with the heritage controls.

Artarmon sale (AFR Pg.61)

• A 3 level office/showroom at 74 – 76 Whiting Street, Artarmon has sold for $3.75 million.
• The property has 1,650m² ($2,273/m²) of lettable area and a 30 metre frontage.

Pyrmont sale (AFR Pg.60)

• A building on a 422m² ($6,600/m²) block at 208 – 210 Harris Street, Pyrmont has sold at auction for $2.785 million.
• The 833m² ($3,343/m²) property is 70% vacant. Crust Pizza is a tenant.

Crows Nest sale (AFR Pg.61)

• A former karaoke bar at 28 Falcon Street, Crows Nest has sold at auction for $710,000.
• The 228m² ($3,114/m²) block has 155m² ($4,581/m²) of improvements and parking for 4 cars.

Former White Bay Hotel sale (SMH Pg.3)

• The state government has purchased the former White Bay Hotel at 27 Victoria Road in Rozelle for $2.5 million. The pub burnt down in 2008.
• The 645m² ($3,876/m²) property is surrounded by land owned by the government and will become part of the “Bays Precinct”.
• The sale included the liquor license and hardship gaming rights, entitling the owner to purchase the poker machines that were owned by the hotel.

Albury Motel sale (AFR Pg.61)

• The Sundowner Albury Paddlesteamer Motel in Albury has sold for more than $3 million.
• The property has views over the Murray River and comprises 60 rooms, conference facilities, a restaurant, pool and spa.

Queensland Property

Salisbury industrial sale (AFR Pg.61)

• A leased office/warehouse complex at 43 Precision Street, Salisbury in South Brisbane has sold for $2.805 million on an 8.6% yield.
• The freestanding property has a lettable area of 3,445m² ($814/m²) and parking for 11 cars. The site is 8,603m² ($326/m²).
• An international tenant has 9 years remaining on the lease. The property is rented for $243,000 p.a.

Victoria Property

Point Cook residential site sale (AFR Pg.62)

• Pask Group has purchased a 24 ha ($1,291,667/ha) parcel of land at Point Cook for a record $31 million. The site is the last large-scale parcel available in the suburb.
• The property has development potential for 300 ($103,333/lot) residential lots and is on a main access road to FKP’s Saltwater Coast development.
• The block is zoned residential one which will allow for its immediate subdivision.
• A new shopping centre and school will be developed nearby in a few years.
• The price of an average block of land in Point Cook is approximately $200,000.

West Melbourne sale (AFR Pg.60)

• The Victorian Government has sold a vacant, 2 storey building at 423 – 427 Spencer Street, West Melbourne to a private investor for $2.42 million.
• The c.1950s building has a 16 metre street frontage and is on a 406m² ($5,961/m²) lot.
• The new owner plans on redeveloping the property.

Fitzroy sale (AFR Pg.60)

• A refurbished building at 60 – 70 Hanover Street in Fitzroy has sold via tender for $7.25 million.
• The 2,408m² ($3,011/m²) property has a 230m² street frontage and the 2 storey building comprises office space, warehousing and a medical laboratory.
• The property is leased until July 2011 for $405,000 p.a. The new owner will develop the property when the lease expires.

Merrindale Business Park (AFR Pg.61)

• Advatek CNC Machinists has purchased a new office/warehouse in the Merrindale Business Park on Merrindale Drive for $645,000.
• The 482m² ($1,338/m²) property comprises a 400m² warehouse ($1,613/m²).

Moorabbin industrial sale (AFR Pg.60)

• A 2,275m² ($1,560/m²) industrial building at 36 Bulli Street, Moorabbin has been sold off-market for $3.55 million.
• The building occupies one-third of the site and features temperature controlled areas, an exhaust system and a security system.

Malvern retail sale (AFR Pg.60)

• A retail property at 256 – 258 Glenferrie Road in Malvern has sold for $4.4 million on a 2.68% yield.
• Improvements to the 432m² ($10,185/m²) block include a 2 storey building with 657m² ($6,697/m²) of space.
• Roost Homewares has 2 years remaining on their 5 year lease.

Richmond showroom sales (AFR Pg.60)

• Two showrooms at 76 - 82 Maroondah Highway, Richmond have sold at auction.
• A single level showroom leased to Super Cheap Auto sold for $2.85 million on a 7.5% yield.
• A former World of Furniture showroom sold for $1.285 million ($4,350/m²).
• The showrooms are part of a 7 building complex leased to bulky goods retailers.

National Property

Residential market update (AFR Pg.48)

• In the 3 months to May, national city dwelling prices rose 1.9% to $468,000.
• Canberra (3.7% to $508,500), Melbourne (3.3% to $480,000) and Sydney (2.4% to $517,250) were the strongest performers.
• The majority of price growth is occurring at the top end of the market whilst the more affordable end of the market has slowed.

Commercial market update (AFR Pg.50)

• So far this year more than $2.4 billion of office property has sold.
• Last year only $3.9 billion of property transacted whilst in 2007 sales totalled $7.63 billion.
• Sentiment towards the Australian office market is improving as the economy stabilises and employment numbers remain healthy.

Industrial market update (AFR Pg.50)

• Agents believe the bottom of the industrial market has occurred.
• Over the coming year, yields for prime industrial investments on the eastern seaboard are forecast to be under 8%.
• In 2009/10 the private sector was the main buyer profile for product under $30 million.
• Over the coming year the majority of sales are anticipated to be in the $40 million to $70 million range.