The cheap end of the apartment market is perking up. A few years ago the shoe box apartment market was grossly over priced. Then when it crashed it became grossly under priced. Now the astute investors are piling in the sure and certain knowledge that another correction is on the way. Apartment prices should settle at around two thirds of their original price and rents will continue upwards strongly in the central city areas.
Published 29 July 2011
Bob Dey Report
Hectic bidding saw 4 cbd apartments sold at Ray White City Apartments’ auction yesterday in a value range of $4500-5000/m², well above the price level of a year ago, when auction sellers were lucky to achieve prices at 3500/m².
The flurry of activity was also in sharp contrast to auctions I went to on Wednesday, where bids had to be more painstakingly drawn out. Yesterday’s auction also ended on a quieter note, with no bids on a leasehold unit in the Sebel Suites on the Viaduct Basin. Auction results:
Queen St core
Altitude, 34 Kingston St, unit 17F, 39m², 2 bedrooms, rates & body corp levy $4778/year, rent $360/week fixed to 12 October, sold for $180,000 (Matt Shirley & Judi Yurak)
Volt, 430 Queen St, unit 1025, 41m² including balcony, 2 bedrooms, rates & body corp levy $4616/year, rent $380/week fixed to January, sold for $200,000 (Matt Shirley & Judi Yurak)
Volt, 430 Queen St, unit 215, 43m² including balcony, 2 bedrooms, rates & body corp levy $3860/year, rent was $365/week but currently vacant, sold for $180,000 (Matt Shirley & Judi Yurak)
Victopia, 135 Victoria St, unit GJ, 43m², 2 bedrooms, rates & body corp levy $2892/year, current rent #340/week, sold for $195,000 (Harrison Lingard)
Sebel, 85 Customs St West, unit 316, leasehold, one bedroom plus study, ground lease, body corp levy & rates $13,262/year, rental assessment $550-650/week, no bid (Gillian Gibson)