Commercial properties may be frequently passed in at auction, but many are selling within two to three weeks, says a leading Melbourne auctioneer. David O’Callaghan, principal of O’Callaghan Commercial and a contracted auctioneer for six other commercial agencies, said despite the apparently high pass-in rate, post-auction sales meant the sales rate was comparable to that of the first six months of last year. Mr O’Callaghan said that from January to June last year, 14 – or 63.6 per cent – of the 22 properties he auctioned sold at auction, with more selling soon after, bringing the tally to 72.7 per cent. In the first six months of this year, just seven – or 25.9 per cent – of the 29 properties he auctioned sold under the hammer. “But taking in the properties sold immediately after the auction (regarded as within two to three weeks) another 13 of the properties sold, which results in a very creditable clearance rate of 74 per cent,” he said. The seasonal peak for the auction of commercial properties is in July and August. “There is no doubt that we have been through a sustained trough of negative buyer or investor sentiment. However, markets tend to work themselves out and that is what I anticipate will happen over the second half of the calendar year,” Mr O’Callaghan said. MOVEMENT ON CITY FRINGE Richmond’s Botanicca 8 development site has sold for $6.1 million to Pacific Developments, says Colliers International. The Melbourne-based developer, which is part of the Pacific group of companies, plans an immediate start on an office building on the 4499sq m site at 572-576 Swan St. The site has a planning permit for a four-storey, 8322sq m office building with 207 car spaces over two basement levels. It is part of the 4.5ha Botanicca office park. Colliers International’s Peter Bremner and Jeremy Gruzewski, who negotiated the sale, expect the finished product to have a value of about $40 million. Investa Property Group was the vendor. Mr Bremner said the sale was the first office development to be sold on the city fringe site. Colliers has been appointed leasing agent. Leasing director Rob Joyes said he had tenants ready to commit to two floors before the property was officially listed. Colliers’ research shows office vacancy in the inner east was 4.5 per cent, while on the city fringe it was 5.4 per cent. ARCHITECTS’ OFFICE FOR SALE The Melbourne CBD home of architecture firm Denton Corker Marshall has been listed for sale through CB Richard Ellis. The 1632sq m, seven-storey building, at 51 Exhibition St, has been home to the award-winning company since 1986. Denton Corker Marshall designed the Melbourne Museum, 101 Collins St and the Melbourne Convention and Exhibition Centre. CBRE’s Sebastian Drapac and Mark Wizel, who will manage the campaign, said the firm’s founding partners needed to separate their assets because of new directions in the practice. The firm would take an initial seven-year leaseback over the building’s upper floors at a rent of $320 a sq m. The other tenants are Anibou Furniture and Sean Godsell Architects. Mr Drapac said the building was surrounded by prominent office towers, such as 101 Collins St, as well as fashion labels and restaurants. The property will be auctioned on July 29 at 12.30pm. SPOTLESS IS MOVING HOUSE The Spotless group has signed a new 10-year lease at 549 St Kilda Rd. Spotless is moving its head office from 350 Queen St in the CBD to the 9545sq m St Kilda Rd building. Colliers office leasing director Ben Christie, who negotiated the lease, says it is the biggest St Kilda Rd deal… [...]
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THE real estate bubble shows no signs of bursting on the Mornington Peninsula. The Victorian Valuer-General figures – which is based on sales from the past decade – have shown Balnarring Beach and Somers achieved some of the highest growth in the state in that period, at more than 15 per cent. Blane Paton of Balnarring’s Paton Estate Agents said he expected the Western Port region to continue to grow, thanks to its beaches and friendly community. “When I retire from real estate and farming, I and my family will move to Balnarring Beach,” he said. Mr Paton said demand for the area remained high, with about 90 per cent of purchases Melbourne-based. The latest REIV figures also show some spectacular rises on the peninsula. These figures, for the three months to June this year, show the peninsula supplied four of the top 20 growth suburbs for the quarter, including the best performing suburb in Mt Eliza. Property prices there increased by 22 per cent in the March-to-June quarter from a median of $660,000 to $805,000. Mt Martha was the 14th best performing suburb with a median house price rise of $647,500 to $677,000, up 4.6 per cent, while Rye was 18th on the list, up 3.2 per cent from $445,000 to $459,250 and Mornington was 20th, up 2.8 per cent from $530,000 to $545,000. The director at Mt Eliza’s TJ Sparks Real Estate, Terry Sparks, said the figures reflected his own experience, and families based in inner city suburbs increasingly saw the peninsula as a better value option. “I’m not surprised by it at all, we’ve been getting some very good results and I believe it will continue because the value of the peninsula is still exceptionally buying good compared to the inner city living of Melbourne,” he said. The latest REIV figures maintain a long trend of increased house prices on the Mornington Peninsula. [...] HOME builder Formula Homes has gone into voluntary administration. Idea Builders Pty Ld, trading as Formula Homes went into voluntary administration on Wednesday. Have you been affected? Tell us in the comments below. David Quin and Philip Newman from accountancy firm HLB Mann Judd have appointed voluntary administers. Calls to the both company Idea Builders Pty Ltd, which trades as Formula Homes, and the Formula Homes line resulted in this recorded message: “This telephone is currently unattended, for any inquiries in relation to Idea Builders Pty Ltd, please contact HLB Mann Judd on 9606 3888.” There is no option to leave a message on the line. Philip Newman from HLB Mann Judd said all contractors and home owners had been contacted. “The business has been effectively suspended, in a way, while this assessment takes place, and we’re hoping that all will work out well for the owners,” he said. Mr Newman said a large number of people were affected and they are hoping all the homes will be finished, with consent of customers, by a reputable builder. “We are undertaking investigations to offer a proposal to creditors,” he said. More will not be known until next week. Worried home builders have contacted Leader about the fate of their homes. Sally Bolton was due to move into her Point Cook home any day after 14 months of building and is renting in the same estate, a two minute drive away. “I just want the house, we could be homeless, we’ve got nowhere to live after August 21,” she said. Ms Bolton said they have been paying a mortgage and rates, while renting which is “a double whammy”. She has two sons with celiac disease and one who suffers from type 1 diabetes. Leader has been unable to contact anyone from Formula Homes, which is headquartered at Mt Waverley, and their website is still online. [...] MORE houses sold in Berwick than anywhere else in Melbourne in the year to April 30, the latest RP Data figures show. And the market was strong, with most buyers getting their asking price and selling within two months of listing. > > Should more land be released for housing in Berwick? Tell us below A total of 744 houses changed hands at a median of $450,000 – an increase of 11 per cent for the year and 54 per cent during the past five years. Second place went to Pakenham, where 694 houses sold at a median of $340,000 – an increase of 10 per cent for the year. To add extra comfort for Pakenham householders, the market moved up 2 per cent in the latest quarter. It was 4 per cent weaker in Berwick in the final quarter, but that did little to take the gloss off overall strong figures. Barry Plant Berwick principal Paul Dabb credited the strong performance in the suburb to the limited numbers of houses for sale, no new significant estates opening up and the appeal of established infrastructure and Berwick’s general amenities. “There is no questioning the appeal of the suburb. People are paying in the order of $350,000 for a block of land here now,” Mr Dabb said. O’Brien Real Estate principal Dean O’Brien agreed. “There’s no question there’s a shortage of property for sale in Berwick and this is helping keep prices firm,” Mr O’Brien said. “The consistency of interest rates, too, has helped throughout the mortgage belt area. “In the short term, at least, I don’t expect any great change to any of what we are now seeing.” [...] IT SOUNDS good in theory: create apartments in the heart of Mornington’s commercial district where new residents can walk to the beach and shops. But the reality of a four-storey complex next to Mornington Primary School, with a new $600,000 roundabout on the Eastern Ring Rd, has some locals questioning how much development is enough. Is this development appropriate for Mornington? Have your say at at morningtonleader.com.au Mornington Environment Association president Jan Oliver slammed the project, slated for the corner of Barkly and Pearson streets, as “too big and too high” The association fears the development will create traffic chaos on the already busy Main St and Eastern Ring Rd. The $25 million project includes 12 two-storey townhouses fronting Barkly St, along with a four-storey complex featuring 106 apartments. Mornington Peninsula Shire Cr Bev Colomb said the third and fourth storeys would be significantly set back. She said residents living in the new complex were likely to walk to the shops and beach rather than use their cars. But she acknowledged traffic was “always a concern and needs continual work”. Councillors recently voted to hand over Pearson St, which provides rear access to Mornington Primary School, to the developer. Councillors made the decision only on the proviso the developer would create a new access road on the southern boundary linking with the Eastern Ring Rd. There will be pedestrian access through the new complex to the school where Pearson St currently is. Mornington Primary School principal Silvio Vitale said school officials viewed the project as an overdevelopment. The project was approved only after the developer took the matter to VCAT. The tribunal approved the project on the basis it conformed with the Mornington structure plan, which allows for higher density in the Mornington commercial area. [...] In late August, when auctioneers call for opening bids on The Block’s four Richmond homes, it won’t just be the contestants feeling the auction nerves. Executive producer Julian Cress says he and business partner David Barbour, the producers and crew all share in the anxious wait – from judging days to auction day. “We’re absolutely stressed out for the contestants because we’re desperate for them all to be rewarded for their hard work,” he says. As co-creators of the show, Cress and Barbour’s production company, Watercress Productions, bought the rundown terrace houses last November for a reported $3.6 million – yet another good reason to hope for fast and furious bidding. But it’s a calculated risk the seasoned property developer is used to taking. “I’ve never bought a property that hasn’t needed renovation – and a lot of it,” he laughs. Speak with the former 60 Minutes journalist for more than five minutes and it’s clear his love of property is as much about seeing homes restored to their former glory as the financial rewards of a job well done. “Renovating is very much in my blood,” he says. Raised in Melbourne, Cress says his parents had great eyes for spotting up-and-coming suburbs. They renovated homes to supplement their incomes as professional artists. In 1974, the family’s first renovation project transformed a dilapidated Edwardian home in the bayside suburb of Sandringham. Three years later the family moved to McMahons Point, Sydney, to start work on a four-storey terrace house with harbour views, which Mr Cress’s father bought for $50,000. “It hadn’t been touched in 80 years, so my dad, my mum, my brother and I spent the next few years knocking out walls, cleaning bricks and painting it up,” he says. Following in his parents’ footsteps, Cress doubled his money on his first renovation project. “My dad always used to say to me, ‘You’re never going to make any money out of journalism. You’re going to have to do what I did; find houses and make them better.”’ Cress’s favourite project is the 300sq m former bus depot he is renovating with his wife, Sarah Armstrong, in Sydney’s inner west. It was also his father’s art studio. “There’s nothing more exciting than starting with a big box where you can do anything, including really screwing it up,” he smiles. To keep costs down, the couple do most of the work themselves, even renovating at night while filming The Block’s 2010 season. When it comes to design ideas and trend advice, Cress describes himself as a “massive consumer” of interior design magazines. He’s also called on past contestants Mark and Duncan to lend a hand. “They’re both really good carpenters,” he says. Cress is in a unique position to learn from contestants, skilled tradespeople and designers during production of The Block. “Then I go home and get out a drop [...] In late August, when auctioneers call for opening bids on The Block’s four Richmond homes, it won’t just be the contestants feeling the auction nerves. Executive producer Julian Cress says he and business partner David Barbour, the producers and crew all share in the anxious wait – from judging days to auction day. “We’re absolutely stressed out for the contestants because we’re desperate for them all to be rewarded for their hard work,” he says. As co-creators of the show, Cress and Barbour’s production company, Watercress Productions, bought the rundown terrace houses last November for a reported $3.6 million – yet another good reason to hope for fast and furious bidding. But it’s a calculated risk the seasoned property developer is used to taking. “I’ve never bought a property that hasn’t needed renovation – and a lot of it,” he laughs. Speak with the former 60 Minutes journalist for more than five minutes and it’s clear his love of property is as much about seeing homes restored to their former glory as the financial rewards of a job well done. “Renovating is very much in my blood,” he says. Raised in Melbourne, Cress says his parents had great eyes for spotting up-and-coming suburbs. They renovated homes to supplement their incomes as professional artists. In 1974, the family’s first renovation project transformed a dilapidated Edwardian home in the bayside suburb of Sandringham. Three years later the family moved to McMahons Point, Sydney, to start work on a four-storey terrace house with harbour views, which Mr Cress’s father bought for $50,000. “It hadn’t been touched in 80 years, so my dad, my mum, my brother and I spent the next few years knocking out walls, cleaning bricks and painting it up,” he says. Following in his parents’ footsteps, Cress doubled his money on his first renovation project. “My dad always used to say to me, ‘You’re never going to make any money out of journalism. You’re going to have to do what I did; find houses and make them better.”’ Cress’s favourite project is the 300sq m former bus depot he is renovating with his wife, Sarah Armstrong, in Sydney’s inner west. It was also his father’s art studio. “There’s nothing more exciting than starting with a big box where you can do anything, including really screwing it up,” he smiles. To keep costs down, the couple do most of the work themselves, even renovating at night while filming The Block’s 2010 season. When it comes to design ideas and trend advice, Cress describes himself as a “massive consumer” of interior design magazines. He’s also called on past contestants Mark and Duncan to lend a hand. “They’re both really good carpenters,” he says. Cress is in a unique position to learn from contestants, skilled tradespeople and designers during production of The Block. “Then I go home and get out a drop saw, and Sarah says, ‘What the hell are you doing?’ I say, ‘No, I think I can do this. I learnt it today,”’ he laughs. “It’s been great. I’ve impressed myself with some of the skills I’ve picked up in the last couple of years. “It’s much more satisfying if you’ve done it yourself.” It’s this quality that Cress says drives the success of shows such as The Block and MasterChef. “People want to be inspired and know that they, too, could do what they see. Just watching experts do it doesn’t really give you that level of inspiration.” The Block screens at 7pm weeknights on Channel 9. [...] Sales of big-ticket commercial properties more than quadrupled between the first and second quarters of this year, CB Richard Ellis research has found. Investment sales of more than $20 million in the office, retail and industrial sectors reached $2.7 billion in the second quarter, a 432 per cent increase on the first quarter’s $638 million turnover. And turnover for the 2010-2011 financial year reached $8.9 billion, 32 per cent higher than the previous financial year. Melbourne dominated the market in the second quarter, continuing to enjoy the biggest single share of investment turnover with 41 per cent. CBRE global research and consulting executive director Kevin Stanley said the turnover for this year’s first quarter – typically a quiet time – had been the lowest for almost 20 years. Queensland’s floods and cyclones, the Japanese and New Zealand earthquakes and “general global uncertainty” were partly to blame, Mr Stanley said. Many mid-to-major transactions that had been in the pipeline since late last year were wrapped up in the second quarter, contributing to the spike in sales. CBRE’s analysis found that across Australia in the second quarter: THE office sector dominated sales, accounting for 52 per cent of turnover; THE retail sector experienced improved sales, accounting for 40 per cent of turnover; INDUSTRIAL sales were slightly below average at 8 per cent; and FOREIGN investors continued to be major players, buying 37 per cent of properties by volume against a long-term average of 10 to 15 per cent. CUT TO THE FRINGE Big businesses will need to look outside the CBD for office space over the next five years as rents soar, according to CB Richard Ellis. The company predicts rents in city centres will grow by 12 to 24 per cent during the next three to five years. As vacancy levels fall, space with green credentials and large enough floorplates will also become less available. With CBRE research showing comparable gross rents in CBD fringe suburbs average 32 per cent less than in the CBD, global research and consulting executive director Kevin Stanley said big businesses could be pushed to the fringe or forced to split operations between a CBD head office and city fringe premises for other functions. “Looking back, the gap between CBD rents and the fringe markets never closes,” Mr Stanley said. St Kilda Rd demonstrated a big gap, with its rents 35 per cent lower than in the CBD. On the other hand, CBRE’s national survey found the smallest gap between CBD and city fringe office rents was in Southbank, where the gap between its rents and those in the CBD is 18 per cent. Mr Stanley said that could be attributed to higher-quality buildings being constructed in Southbank in recent years. OFFICE DEMAND PEAKS AT BOX HILL Box Hill has recorded the lowest office vacancy rate in Australia, Colliers International research shows. The suburb has a vacancy rate of just 1.38 per cent for its 150,000sq m of office space. Colliers Melbourne East director in charge Rob Joyes said demand in Box Hill had already led to rent increases of 10 to 15 per cent during the past year, with more … [...] Have you ever visited friends and looked in their garage or in their spare room? Was it clean and tidy or was it full of cobwebs, boxes and old bits of stuff? Does your home have areas like that? Areas where you think because they are out of sight they can’t be seen? Of course not all the stuff is junk. Sometimes it is an item you plan to pass on to someone else, sometimes it’s broken furniture you intend to mend; but life being hectic as it is these days, somehow or other the pile gets higher and the articles and the repairs are still there a few years later. Most people have a place where they put things that could be useful some day. They’ve replaced taps in the bathroom but the old ones still work so they may prove useful. The lamp still works and although it has been replaced it should be kept, just in case. If you have plans to sell your property you will need to do something about those piles. When a prospective buyer comes through your home they expect to see open spaces. That way they can visualise how well their furniture will fit and which room would better suit each member of their family. This is the time for you to get rid of all those items you’ve hung onto for too long. You’ve heard what people say about clothes – if you haven’t worn it for more than a year, give it away. The same system applies to all the good stuff you have been storing for a rainy day. If you can’t remember why it’s there then you don’t need it. If it is too good to throw away then take it to the local charity – they can make some money from it. The most interesting thing about going through the hidden piles is that you sometimes find things you thought you had lost. But it is more likely to be a case of, “Why on earth did I keep that?” So use the prospect of selling your house as a good time to spring clean your home and contents. You will not only be surprised at how satisfying it can be, but how impressive and spacious the cleared areas will look. Just perfect for the family who will buy your home! Julie Finch-Scally is the founder of The Duster Dollies Cleaning Agency and author of The Third Oldest Profession, The A-Z of House Cleaning, Hippo Publishing. [...] PHOTOS are the most important element of real estate, writes Melanie Gardiner. If a picture is worth a thousand words, what tales do your property photographs tell prospective buyers? Will they entice purchasers in fewer than eight seconds? That’s how long the average buyer spends initially reviewing real estate images, according to veteran photographer John Wheatley, director of Urban Angles. He says great photographs are the result of good preparation by vendors, a talented photographer and skilled retouching to create a polished result. After 10 years of shooting advertising campaigns, Mr Wheatley started Urban Angles in 2001 to bridge the gap between high-end commercial and residential real estate photography. Directors Michael Downes and Jules Tahan joined the company in 2004 and 2005. Today the company employs more than 20 staff, with photographers regularly flown to photograph major projects around Australia. Mr Wheatley said he’s surprised by the number of homeowners who don’t research a real estate agent’s preferred photographer or review samples of the photographer’s work before signing up. “It doesn’t cost a lot of money to get good photos,” he said. Choosing a less experienced supplier to save $100 can become costly in the long run. Bowed walls, cluttered spaces, poorly placed furniture, and white ghosting around objects “magic wanded” during retouching are all the hallmarks of poor quality photographs. “Vendors on a budget should opt for fewer high-quality images instead,” Mr Wheatley said. Urban Angles retouches images by hand, with up to five exposures blended together to create the perfect shot. It takes Urban Angles about an hour to process each property, four times longer than competitors relying on automated systems. “A computer can’t decide how to retouch an image properly. It needs to be done by a skilled retoucher. “It’s a slower process but gives you a much better outcome,” Mr Wheatley said. Working with a tripod encourages staff to think about image composition. Good photographers time appointments to suit a home’s orientation, carefully assess each room and adjust furniture placement. “We approach photographing a property in the same way as a high-end advertising job,” Mr Wheatley said. Urban Angles staff liaise with agents and vendors as they would an advertising director. Homeowners should allow $200-$400 for a daytime shoot, while twilight packages start at about $500, and combined day/night visits cost up to $990. “For most people, their home is their biggest asset, so they need to get it out there with the best photography,” Mr Wheatley said.Details: Urban Angles, 10 Grattan St, Prahran. Phone: 9827 0999 or visit www.urbanangles.com Top tips to ensure your home is ready for its close-up. WHICH ROOMS? To give buyers a good feel for your home, most campaigns highlight the exterior, kitchen, living areas, main bedroom, family bathroom and any outdoor living space. KITCHEN Small items can appear as clutter once an image is reduced for print and online … [...] |
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