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Discussion in 'Development' started by Cruskits, 1st Jul, 2015.

  1. Cruskits

    Cruskits Well-Known Member

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  2. Aaron Sice

    Aaron Sice Well-Known Member

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    3350 x 1.25 = 4400 ish?

    4400 / Ave 70 sqm a unit = about 60 apartments of varying sizes - so 50% @ 70 sqm, 25% @ 50 sqm and 25% @ 90sqm or any combo in between.

    Reality is this would end up in front of DAC and a JDAP so you may even be able to get 75x dependent on the site's ability to deliver quality outcomes for occupants and neighbours alike.
     
  3. Blacky

    Blacky Well-Known Member

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    What do you recon? About $5mil?
    Throw in a $15mil build cost (all inclusive)

    Average price of $500k/unit for a total $32.5mil.

    The fact it is being advertised indicates to me its overpriced already though :rolleyes:

    Blacky
     
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  4. sanj

    sanj Well-Known Member

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    I'm not sure I understand this logic. How else should a site that's likely to appeal to a wide range of people and probably has a few separate owners be sold?
     
  5. mrdobalina

    mrdobalina Well-Known Member

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    One of the joint commercial agents spoke to me about this site a couple of months ago. Apparently they want about $8m for it!!!!
     
  6. Blacky

    Blacky Well-Known Member

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    It was a joke ;)
     
  7. Pier1

    Pier1 Well-Known Member

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    If it was priced reasonably it wouldn't even hit the net, developers on their books would have snapped it up.
     
  8. Aaron Sice

    Aaron Sice Well-Known Member

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    Not always. I found the bottle yard in Northbridge for Handle thru a standard listing.
     
  9. sanj

    sanj Well-Known Member

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    That just isn't


    Nic trimboli paid less than $3m for the alex hotel site that now has a restaurant and 72 hotel rooms on it, via EOI campaign. Granted it was a govt owned site.

    Finbar bought their current NB site for an excellent price, it was advertised to one and all.

    The Old bakery site in nb sold to a developer last year at a pretty cheap price, huge signboard out the front.

    I can keep going, the idea that if a site is advertised it's definitely gonna be overpriced is pretty ludicrous.

    Btw you didn't find the bottleyard site, I did remember! :D
     
    charttv and Aaron Sice like this.
  10. MTR

    MTR Well-Known Member Premium Member

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    Call me dumb, but seriously how do these developers make money with these sites when there is an oversupply of apartments just sitting on the market, makes little sense to me. Maybe they just have large cash buffers, and fat margins and then offload at lower prices.???

    MTR:)
     
    Last edited: 2nd Jul, 2015
  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    MTR: Foreign investors, desperate to get into the market. The only thing they can buy is new stock and they're very cashed up.

    Their priority isn't to make money in the short term, they've already done that at home. Their priority is to move the money they've made out of a country that is becoming unstable for multiple reasons, into a market where there is more legal, political and economic stability.
     
  12. sanj

    sanj Well-Known Member

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    Pete there are a few in perth like that but nowhere to the extent of over East.

    Companies like finbar operate extremely cleverly, smart business and finance model, always use the same builder, run extremely lean and keep replicating the same formula.

    There's a lot less competition for larger sites vs over East so margins are actually ok.

    Eg linq site in Northbridge, very well located. 110 apartments and 4 commercial units and they only paid $6m. 1 bedders started at 390k I believe and even in the current market they've sold 75 off the plan with the prices increasing since launch.

    Perth is pretty affordable but there's a definite lack of confidence atm.

    End values for this development are prob 60m or so, if u do the maths there's some fat in there
     
  13. MTR

    MTR Well-Known Member Premium Member

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    Foreign investors, but don't they buy in the main over East Melb/Syd markets, especially as markets are going gangbusters.

    Still if you have oversupply and foreigners have choice don't these apartments just sit on the market for years?? while prices are driven down.

    I don't know?? But oversupply is oversupply, regardless of whether they have money, if they are investors and Chinese they are generally after bargain prices. At least that is what I have been told by my Chinese real estate agent.

    Same as oversupply of apartments in inner Melb/Docklands etc. prices driven down, foreign investors not buying these.

    MTR:)
     
  14. Aaron Sice

    Aaron Sice Well-Known Member

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    wasn't that the laneway site next door? then made the enquiry against the larger lot?

    i not know. me brain fail.
     
  15. stumpie

    stumpie Well-Known Member

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  16. sanj

    sanj Well-Known Member

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    Nah the r80 site with the old house on it that you guys bought then amalgamated with the one next door. Grant was selling it on behalf of family friends of ours but timing wasn't right for me to buy it. Shame as the margins wee great even on the 1 site
     
  17. Aaron Sice

    Aaron Sice Well-Known Member

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    Yeah the smaller site - that was what I remembered. One was 800-900sqm the other 4000ish.

    Had that terrible 5 apartment design that they were pushing to get approved even after it sold.

    It had the laneway access and was strategic to the bigger site.
     
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  18. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    @Aaron Sice how many units are in bottleyard? What's the biggest complex you've ever designed?
     
  19. Aaron Sice

    Aaron Sice Well-Known Member

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    I didn't design the Bottleyard - but that's 125x from memory in 1x1, 2x2 and 3x2.

    Can I claim fame to standing firm against disturbing the Wagyl and getting my way? Maybe. I dunno....

    Biggest complex I've ever designed is 54 - to date.
     
    Last edited: 2nd Jul, 2015
  20. Cruskits

    Cruskits Well-Known Member

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    I'm not totally convinced that the market for units is in oversupply in North Perth just yet. I have not had a look at the percentage of sales for units for each development currently on the market.

    Are the big block of units next door already sold, pre-sold or are they waiting for completion??

    I do believe that there is an oversupply of units in Perth, West Perth, East Perth, Northbridge that needs time to be soaked up as more and more come on the market.

    However, I do not believe that North Perth, Mount Hawthorn and Leederville are in that same category just yet.

    Just my thoughts :)