Geo Media Release
(The Guardian Express - Property Liftout. Tues May 17, 2005. pg35)
Stack Media Release
(Sunday Times - Prestige Properties. Sun June 12, 2005. pg3)
Urban Concepts' Property Update
Edition 10, April 2005***
In this edition:
· geo - REDESIGNED & NOW ON TRACK
· stack - NEW
· ebuilding - SOLD OUT
. oxo - UPDATE
· Property trends & tips
GEO - 190 Scarborough Beach Road, Mt Hawthorn
Fantastic location, excellent investment opportunity
Despite a budgeting brief to our architects and an independent costing by quantity surveying consultants, we were unable to secure a building contract price that made it possible to proceed with a feasible project for our original GEO design. This substantial increase in construction prices will eventually flow through to higher property prices as current prices continue to fall further behind replacement costs. This left us little alternative other than to redesign. The Town of Vincent approved the revised scheme on 22 March 2005.
GEO will combine 7 ground floor shops and 9 single level and 2 level, spacious apartments on the first and second floors. Located on the corner of Matlock Street and Scarborough Beach Road, GEO will become the focal point of the western end of the maturing Mt Hawthorn café and retail strip.
The decision to develop again in Mt Hawthorn follows Urban Concepts' philosophy of choosing areas with a low supply of this type of accommodation and a perceived high demand.
We have now appointed Keytown Construction as builder to the project and expect construction to commence in June, with completion and settlement mid 2006.
To view individual floor plans go to www.geo.com.au
Discounted off the plan prices apply starting at $156,200
For sales information call Urban Concepts on 9380 6800.
STACK - 135-139 Cambridge Street, Leederville
Location, Location, Location!
The STACK project has also been impacted by rising building costs hence the delay in construction commencement. We are now awaiting a building licence and the finalisation of negotiations of the building contract. We also expect to commence construction of the STACK project in June, with completion and settlement in mid 2006. The project features 4 ground floor commercial tenancies (80 - 160m ea) and 8 residential apartments (1, 2 and 3 bedrooms).
STACK is superbly located on the corner of Northwood and Cambridge Streets and the immediate area-surrounding STACK is to undergo some significant changes with the Town of Vincent recently approving a new supermarket and specialty shops and associated office and medical facilities. This will inject many millions of dollars into the area and with its superb location between Subiaco and Leederville the investment potential at STACK is assured.
The apartments are brilliantly designed and feature all the "must haves" including security, undercover car bays, reverse cycle air conditioning and very generous, and private outdoor living spaces.
Details and floor plans for STACK can be found at http://www.urbanconcepts.com.au/stack/
Discounted off the plan prices apply starting at $313,700.
For sales information call Urban Concepts on 9380 6800.
All apartments and commercial spaces are now sold at e-building.
OXO - 279 Oxford Street, Leederville
After lengthy delays in remediating, and receiving clearance and handover of this former service station site, the viability of the OXO project was marginalised to the extent that we had little alternative but to sell the property. It is with regret that we have advised our buyers of the decision to cancel the project.
• Even though the market is strong it is very difficult across the board to make projects viable due to the dramatic increase in construction prices. If buyers in the market at the moment can purchase off the plan and lock in at a presale price they will benefit as replacement costs continue to rise.
• When buying property, a long rather than a short-term investment will give greater yields due to the costs associated with buying and selling. Long term holds show greater growth rates and location is still the most important factor.
• Apartment buildings continue to be on the increase in Perth. This is due to the social shift towards inner city living in more compact, low maintenance 'lock up and leave' dwellings. People young and old, working and retired are being attracted to this more convenient style of living. Best buys are inner city areas on the move i.e. those with existing infrastructure that don't close down after 5pm (why we don't favour West Perth, East Perth, the cbd etc) Areas such as Subiaco, Leederville, Victoria Park and adjacent West Leederville and Mt Hawthorn provide good lifestyle benefits as well as good investment prospects.
• When purchasing, look for well-designed buildings with good quality finishes. Boutique developments comprising a small number of dwellings and targeted at owner occupiers rather than investors are better buys because in a less than buoyant market for many reasons a similar property in a large complex will be worth less than one in a smaller boutique complex.
• Strip shopping areas continue to draw increased rents in choice locations throughout. Last year Rokeby Road, Subiaco and Bay View Terrace, Claremont made the list of top 20 shopping strips in Australia. Properties on up and coming retail and café strips continue to provide opportunities for both rental and capital growth.
• A question we are often asked is whether we are concerned about the so called 'diminishing' apartment market and the talk in the press about the oversupply of apartments in Sydney and Melbourne. The Perth market is still well behind Sydney and Melbourne (Sydney median price $470,000, Perth median price $210,000) and apartments here do not total anywhere near the amount of apartments that make up the residential market in our sister cities. In Perth there continues to be a strong demand for architecturally designed, well-built, spacious, high quality apartments in sought after inner city areas. Furthermore apartments, which are in oversupply in Sydney or Melbourne, are predomintly in high-rise developments, often with 100 or more units. This is why we continue to hold fast to our philosophy of boutique developments containing small numbers of individual units that we believe will hold their value even in less than positive markets.
• Many people on the East Coast of Australia are paying the price of being caught in schemes such as those organised by the (now defunct) Henry Kaye group of companies. Time and again we are reminded that get-rich-quick property schemes ultimately do not work. Potential investors should only buy from reputable companies with proven track records who are involved in good quality developments with proven histories of capital growth. Property should always be considered a medium to long-term investment.
• New BCA standards in regard to Residential Dwellings are now law in WA. This has significance in relation to energy ratings and acoustic performance of dwellings. If you're looking at new dwellings ask these questions.
We welcome your feedback at any time at firstname.lastname@example.org
Source: REIWA Market Update Sept Quarter, 2003