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Price Premiums for high-rise

Discussion in 'General Property Chat' started by Reynard, 4th Feb, 2016.

  1. Reynard

    Reynard New Member

    Joined:
    2nd Jan, 2016
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    1
    Location:
    Perth
    Hi All,

    I'm a new poster but have been lurking around since last year. A quick introduction: I invested last year in my first IP in Parramatta - a OTP unit - before reading this forum (which I very much regret), and I have been keeping up with the market.

    I noticed that developers like to put a premium on units on high levels, but the resale market doesn't seem to price in a premium on high floors.

    So what are the experts' opinions here: Do units on hgh floors (30 floors up) command a premium? How much per floor? Higher chargeable rent? By how much?
     
  2. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
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    2,677
    Location:
    Sid en e - olympic city
    I am not sure, but have lived in units a few times, I considered 3rd floor to far away.....with thirty, what I would be worried about is when the lifts are out or fire alarms etc........it is also too far to jump ...
     
  3. Heinz57

    Heinz57 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    493
    Location:
    Brisbane
    There may be a price premium for higher floors where there is a view. Not much rent difference usually.
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,751
    Location:
    Sydney
    The higher you build the more expensive it costs generally so my guess is they are passing on that cost. If there are views then I can understand the value of paying more in that case.

    But imho buying in a high rise like that really only gives the developer a premium in profits and not much else in terms of investment benefits to the buyer. It's good that you've wizened up now though.