Next Millers Point government terrace sell off - with record $2.6 million plus price guidance

Jonathan Chancellor | 8 September 2014

Published price estimates are being given on the next two Millers Point terraces being sold off by the NSW state government.

They go to auction this Thursday.

There is more than $2.6 million expected for 11 Lower Fort Street, Ballara (pictured above), a five bedroom, four level offering.

Anther property at 23 Lower Fort Street (pictured below) comes with a $1.7 million plus forecast. It is the 1830 Georgian town home, Tarra which boasts an impressive frontage and captures views of the Opera House.



The listing agents had been under pressure for greater disclosure in the aim of price transparency, and achieving the best possible auction price.

There is however no price guidance on the subsequent offering on 25 September through Di Jones which is 86 Windmill Street (pictured below).



Nor any public estimate for the 30 Argyle Place, 8 October offering through Craig Pontey at Ray White Double Bay.

There have been just the two freehold sales so far, topping out at $2.56 million, with both sales causing headlines as the sale prices were well above the privately offered price guidance.  

A survey or agents by Property Observer suggests the initial two sales - that assisted in setting the market - were a result of the unusual circumstances, including:

• The somewhat dramatic recent market price improvement;
• The massive media exposure arising from the state government's decision to sell;
• The emerging Barangaroo effect;
• The big price difference between the prior 2009-2011 leasehold offerings (see published prices below) and the current freehold offerings;
• Australia's aversion to leasehold.

The first state-owned property at Millers Point at 119 Kent Street was the first of the pinpointed 293 public housing properties to be sold off at Millers Point and The Rocks.

Under instructions from the government, McGrath Estate Agents was not allowed to publicly disclose details on the auction offering.

The latest offerings do not come with the logo advising sale by by Government Property NSW on their website ads. 

Leasehold prices achieved during Labor state government sell off 2009-2011

MILLERS POINT	44 Argyle Place	$1,255,000
MILLERS POINT	56 Argyle Place	$1,100,000
MILLERS POINT	119 Kent Street	$1,070,000
MILLERS POINT	121 Kent Street	$980,000
MILLERS POINT	71 Kent Street	$950,000
MILLERS POINT	94 Kent Street	$2,365,000
MILLERS POINT	22 Lower Fort Street	$1,400,000
MILLERS POINT	88 Windmill Street	$1,100,000

In 2011 the Housing NSW chief executive Mike Allen advised the first 16 offerings on 99 year leases had realised $34.13 million with all the money raised is being invested in new social housing units as part of the Inner West Social Housing Strategy.

Proceeds from these initial auctions went to building new social housing in suburbs such as Concord, Abbotsford and Camperdown, as well as the 88 architecturally–designed, environmentally sustainable units located on the block bounded by Lilyfield Road, Balmain Road and Edward Street, Lilyfield.

 RESOURCED: http://www.propertyobserver.com.au/finding/location/nsw/35454-millers-point-government-terrace-sell-off-with-record-2-6-million-plus-price-guidance.html