Call us today

Vol 11. No.142

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	89.47	-0.74
Cash Rate	4.50	Steady
90 Day Bill	4.83	Steady
10 Year Bond	5.220	-0.062
ASX 200	4529.9	+32.5

NSW Property

Catherine Hill Bay update (AFR Pg.54)

• Catherine Hill Bay and Middle Camp villages on the NSW Central Coast are expected to be listed on the State Heritage Register.
• If the listing is approved it would be the second time an entire town has been granted the status.
• Any major development in the area “will need to respect the area’s significant heritage values”.
• The NSW government is also seeking comments regarding a proposed SEPP to rezone and introduce planning controls for some land south and west of Catherine Hill Bay and north of Gwandalan.
• New proposals for the Coal & Allied estates have been redeclared major projects and potential state significant sites.
• The sites are located at Minmi, Newcastle Link Road and Stockrington, Black Hill and Tank Paddock, Nords Wharf, Gwandalan and Middle Camp.

Hoxton Park development approvals (AFR Pg.47)

• The NSW government has approved Mirvac’s proposal for a Big W and Dick Smith warehouse at Hoxton Park.
• The facilities are anticipated to be completed by March 2012.

Top Ryde City update (AFR Pg.46)

• The GPT Group’s wholesale shopping centre fund is believed to have agreed to terms to purchase the retail component of John Beville’s Top Ryde City for more than $600 million.
• The sale is expected to be on a yield between 6.5% and 6.75%.
• Tenants in the regional shopping centre will include Myer, Woolworths and an Aldi.
• The sale will also include taking out Valad Property Group’s interest which is worth approximately $80 million.

The Wattle Grove Hotel sale (AFR Pg.54)

• The Wattle Grove Hotel in Wattle Grove is believed to have sold to a Sydney investor for between $9 million and $10 million.

Mansions Hotel on the market (AFR Pg.54)

• Receivers have placed the Mansions Hotel on the corner of Bayswater Road and Kellett Street in Kings Cross on the market. The sale price is anticipated to be approximately $25 million.
• The 5 storey building is on an 885m² site and is being offered with a hotelier’s licence, 15 poker machine entitlements, 15 poker machine permits, a modern public bar, a refurbished bistro, a dedicated gaming machine lounge with 30 poker machines and a separate bottle shop.
• The upper floors of the hotel could be converted into residential space.

Queensland Property

Gold Coast commercial market update (AFR Pg.47)

• The Gold Coast commercial market has a vacancy rate in excess of 22%.
• Currently there is approximately 100,000m² of space on the market and based on the 10 year average take-up rate the supply would take 5 years to be absorbed.
• The market is yet to record a sale in excess of $9 million this year. The last sale in the price range was the City Pacific Complex at Broadbeach which sold below replacement cost.

Harvest Property development plans (AFR Pg.56)

• Harvest Property and Holland-based technology company Zernike Group plan on developing 4 technology precincts across Australia over the next 5 years.
• The JV will create office suites that offer short-term leases and low start-up costs for new technology businesses.
• The first project is a $13.5 million development in the Brisbane Technology Park which will offer a mix of commercial and serviced offices ranging from 50m² to 750m².
• The project is to be replicated in other areas of Queensland, Victoria and Western Australia.

Victoria Property

Kings Business Park on the market (AFR Pg.56)

• The Deague family has placed the Kings Business Park in Southbank on the market.
• The property is on an island site at the junction of Kingsway and Coventry Street and could sell for more than $110 million.
• Each of the 5 office buildings comprises more than 31,000m² of space. The 1.3 ha site has parking for 427 cars.
• Tenants include Network Seven, Foster’s and Acciona Energy.
• The property has 5 street frontages, mixed use zoning and development potential as some of the buildings could potentially be converted into a residential use.
• The Deague family will use the funds realised from the sale in the development of their Art Series Hotel’s and residential projects.
• A third Art Series Hotel is due to open in Melbourne shortly with a fourth planned for Adelaide.
• The Deague family has a $585 million pipeline of residential projects including a 426 apartment project in Daly Street, South Yarra and a 400 apartment complex in Walkerville, Adelaide.
• Plans have been lodged to develop 400 apartments on a site near their 820 apartment project in Melbourne’s north.

Campbellfield warehouse sale (AFR Pg.58)

• A 7,000m² (536/m²) warehouse at 21 – 29 Somerton Park Drive in Campbellfield sold to Scalzo Food Industries for $3.75 million.

Collingwood warehouse sale (AFR Pg.58)

• A church group has purchased a warehouse at 16 – 18 Cromwell Street in Collingwood for $835,000.
• The property has 340m² ($2,456/m²) of floor space, front roller door access and an 11 metre street frontage.
• Council intends on rezoning the land from industrial to business.

Oakleigh sale (AFR Pg.58)

• An investor has purchased a vacant shop and apartment at 26a Atherton Road, Oakleigh for $1.251 million.
• The 140m² ($8,936/m²) site has a 6 metre street frontage and rear lane access.

Brighton retail sale (AFR Pg.58)

• A corner shop at 344 Bay Street in Brighton sold for $1.15 million on a yield of 2.7%.
• The shop is leased for 3 + 3 years and returns $31,200 p.a. The below market rent can be in increased in May 2011.
• The site would be suitable for a residential development in the future.

National Property

Residential market update (AFR Pg.50)

• The national median house price increased by 2.4% over the June quarter and 15.6% over the year to $558,540. Annual growth is above the long term trend.
• Nationally median unit prices rose by 2.4% to $402,945 over the quarter.
• Melbourne recorded the strongest increase with the median house price growing by 4.4% over the quarter and 27.9% over the year to $578,447.
• The median unit price in Melbourne rose by 3.8% over the quarter to $413,000.
• Sydney’s median house price grew by 2.3% over the quarter and 13% over the year to $625,488.
• Sydney’s median unit price increased by 2.8% over the quarter to $435,996.
• Over the past year Brisbane recorded the lowest median house and unit growth when compared to Australia’s capital cities.
• Brisbane’s median house price rose by 0.6% over the quarter and 7.3% over the year to $457,787.
• Brisbane’s median unit price increased by 1.8% over the quarter to $379,036.

Costco update (AFR Pg.47)

• Costco is seeking sites in Sydney, Brisbane, Melbourne, Adelaide and Canberra.
• The sites need a special zoning and to be able to house a 14,000m² warehouse.