Tuesday, April 12, 2011

Maryborough Apartments 'Riverview on March'

Just a quick update on an auction I mentioned in a post around a week ago:
Here is a link to the apartments that are being advertised (LINK), the auction is this Friday, it will be interesting to see what prices they get given the "no reserve" status of the listings. Link to previous post.
I posted the above with reference to adverts I had seen in a Google sidebar (an unusual way of advertising specific properties in my opinion), I came across this article which covered the auction results:
After more than 18 months on the market, the luxury Riverview On March apartments finally went under the hammer yesterday — and about 140 people came to watch as they sold for a song.

Valued at $650,000 to $700,000-plus each, four of the six units sold. They fetched $510,000, $320,000, $339,000 and $300,000.

Auctioneer Jason Andrew was made to earn his keep in cajoling every last dollar out of the buyers, but bidding was desultory for the two penthouses, which were eventually passed in because they did not meet the reserve price.

Developer Ron Blyth admitted he felt hard done by, with three of the four sold units going for less than half the building cost.

Even on the highest-selling apartment, Mr Blyth lost about $200,000 – or a total of about $1.2 million for the combined sales. FCC
It's not clear whether the loss was on actual development costs or just a loss based on what the apartments were previously valued at. Either way I think it shows that significant property price falls here aren't just a possibility, in some areas it's already happening.


BB.

5 comments:

  1. "It's not clear whether the loss was on actual development costs or just a loss based on what the apartments were previously valued at."

    To find that out first BB would probably be a good start.

    Regards,

    Riding-high (SS forums)

    ReplyDelete
  2. It probably would have been a good idea for the journalist writing the story to check this RH. It's of no real consequence to me (whether there was a real loss to the developer or not), their value has fallen considerably regardless.

    Cheers
    BB.

    ReplyDelete
  3. Is it correct in saying you are basing your nation wide huge market correction on this piece of info or trying to justify it some how? A developer selling his high end units for less then he paid in a dismil qld property market? Its almost the perfect storm to lose money

    Regards,

    RH

    ReplyDelete
  4. RH, I think you are trying to draw a conclusion from my post that is simply not there. I have not insinuated that this specific auction result is representative of the nations market in any way, shape or form.

    However, it is my opinion that we will see the nationwide correction in prices continue (of course there will always be small pockets that avoid falls and may even rise). If you have a read through some of my other posts on property you will see I have covered other markets and my thoughts on what figures are indicating a correction in prices is upon us.

    Easier money to be made elsehwere for the short to medium term IMO.

    Cheers
    BB.

    ReplyDelete