250 Elizabeth St, Somerset Serviced Apartments- January 09 to December 09 Report
Harcourts City Residential
In this report, Dionne has prepared an overview of all sales transactions* for 250 Elizabeth St, Melbourne (Serviced apartments) for the January 09 – December 09 along with extra details about the building and a forecast for the year ahead.
You can find this and more Real Estate blogs at http://harcourtscityresidential.wordpress.com/
Market Summary – January 09 –December 09
Well, we moved through the Global Economic Crisis counting our blessings and relatively unscathed in-fact our market went from strength to strength in the second half of last year.
Now, with the expected 3 consecutive interest rate rises, the serviced apartment and student accommodation market will be the first to feel the effects of the rises. How will this affect my serviced apartment? Serviced apartment prices are affected more so by interest rates than the housing market itself, when the interest rates rise, the prices of serviced apartments will usually fall! The reason for this is that Serviced Apartments are for purchase by investors only. To attract investors the return offered must be of a higher incentive than having money in the bank. Hence as interest rates rise so to must the percentage return offered. With the income usually remaining unchanged the only way to achieve the higher percentage return is to reduce the price. With each interest rate rise, the serviced apartment prices will need to be adjusted further. The prices will not increase again until we experience an interest rate drop. In today’s market we expect several consecutive rises and don’t expect to see rates fall again for some time. The prices right now are as high as they are likely to be for some time.
Please click on the following link to view the Kevin Rudd’s essay on interest rate rises http://harcourtscityresidential.wordpress.com/2009/07/29/rudd-tips-interest-rates-soon-to-rise/
250 Elizabeth St, Melbourne (Serviced apartments) – Fin Year January 09- December 09:
Top Reported Sale: $210,000
Bottom Reported Sale: $172,000
Total Sales: $1,393,500
SALES RESULTS – Financial Year January 09 – December 09:
718/250 Elizabeth St SOLD December 09 $196,000
913/250 Elizabeth St SOLD July 09 $210,000
720/250 Elizabeth St SOLD February 09 $205,000
409/250 Elizabeth St SOLD February 09 $197,000
601/250 Elizabeth St SOLD January 09 $210,000
716/250 Elizabeth St SOLD December 09 $172,000
405/250 Elizabeth St SOLD October 09 $203,000
To discuss how much your property is worth in today’s market, please feel free to contact me on 0411 096 792.
Please view the chart below detailing the occupancy rates. It shows that at any given stage, the apartments have been 80% occupied, which is reassuring to owners that the rental income would be consistent.
For further information on this, or any other property needs you may have, please contact:
Dionne Wilson
Director – Harcourts City Residential
Ph: 03 9664 8100 03 9664 8100 Mob: 0417 318 705 0417 318 705
Email: dionne.wilson@harcourts.com.au
Web: www.dionnewilson.harcourts.com.au
www.cityresidential.harcourts.com.au
*Harcourts City Residential has gathered this information to provide an interesting document for apartment owners and prospective purchasers. Harcourts City Residential may not have affected any or all of the transactions noted; rather we’ve gathered as much market information as possible on ALL transactions to be as conclusive as possible.
Information contained herein is gathered from a range of sources including but not limited to; The Age Property Results, The Herald Sun Property Results, Valuer General Information & Agents own investigations. All efforts are made to verify the information provided. The information is not to be relied upon or used in dealings with third parties and people should make their own investigations regarding their own property or personal circumstances. Opinions offered are just that, our opinions & observations and should not be treated as fact.
If your property is exclusively listed with another agent please disregard this communication