SAGA ENDS WITH POSITIVE RESULT
Late last year we were instructed to offer by Auction Sale in March this year a warehouse with residence above at 23 Roylston Street, Paddington. Our marketing commenced in February and after a couple of weeks – having generated considerable interest – we discovered there were two disused underground tanks. Apparently the property had been occupied in the 1970’s and 1980’s by an Eastern Suburbs towing company who had installed underground tanks for petrol and oil. These days this is a red-light to buyers and particularly their legal advisors.
What to do?
Well, the owner on advice engaged the services of a geo-technical company and we recommended the owner postpone the auction. The geo-technical company had to remove an area of about 20 square metres of concrete. They then needed to test the soil for contamination around the tanks (phew…all good) and insitu abandon the tanks to comply with the Underground Petroleum Storage Systems Regulations. We were lucky there was no evidence of spills or leaks and the soil sampling test results from the laboratory were satisfactory. Once this work was completed and an Environmental Assessment Report received to cover the matters above, we were able to reschedule the auction for last Saturday 12 May at 10am on-site. It was quite challenging trying to regenerate the interest from buyers after a six week hiatus. Like trying to make soufflé rise twice! Anyway the auction was successful and the property sold for $3,300,000. A most interesting assignment.
HOUSING FINANCE LIFTS IN MARCH
The demand for home loans rose in March, beating analysts’ expectations of a fall, according to the Australian Bureau of Statistics, reports Business Spectator.
ABS data showed the number of home loans granted in March rose a seasonally adjusted 0.3% to 46,275. This result compares to 46,117 loans in February. Analysts were expecting the figures to show loans had fallen by 2% in the month.
We have noticed at BradfieldCleary increased buyer activity since the Reserve Bank cut the official interest rate in May by 0.5% to 3.75%. Another rate cut or two over the next several months may provide the impetus buyers need to get the property market rolling along again.
From an investors point of view there is a hint or two that the way ahead will be more about rental income than the reliance on capital growth that fuelled the landlord class explosion over the past couple of decade, according to Domain.com.au. There is no sign that rents are stagnating – on the contrary in East properties up to $1500 per week is strong and rising, however over $2000 per week remains sticky.
With pipeline building slower the outlook for rents remains strong in the short and medium term at least.
NOTABLE SALES THIS WEEK
70 Holdsworth Street, Woollahra $1,450,000
19 Cambridge Street Paddington $1,810,000
284 Military Road, Dover Heights $1,941,000
33 Moncur Street, Woollahra $2,025,000
13 Brown Street, Bronte $2,830,000
23 Roylston Street, Paddington $3,300,000
