December 17, 2014
Toby Johnstone
The state-government's sell-off of public housing at Millers Point hit a snag on Tuesday night when all three properties on offer passed in at auction.
There were 11 potential buyers gathered in the Ray White auction room in Double Bay to compete for three heritage-listed terraces on Kent Street
Up until last night the government had no issue finding buyers for other Millers Point properties, some of which were so popular they sold for more than $1 million above the price guides.
The first property up for grabs on Tuesday evening was a three-bedroom terrace at 47 Kent Street. The three-level property with harbour views listed with Di Jones was previously scheduled for auction on Monday night but was postponed due to the siege in Martin Place.
After 10 minutes of silence an opening bid of $1.35 million was begrudgingly accepted by the auctioneer, followed by a $1.4 million bid, which was still $100,000 shy of the $1.5 million price guide. No vendor bid was exercised and the property passed in at $1.4 million.
When the next property at 43 Kent Street came up for auction one punter tried for a low-ball bid of $1.32 million, which was not accepted by the auctioneer. The terrace was recorded as passing in with no bids.
The terrace next door at 41 Kent Street faired no better - the auctioneer called three times for an opening bid of $1.4 million but buyers kept their hands down.
It is understood that the properties were being sold with an unregistered plan of subdivision, which effectively means buyers were bidding for a land title that did not exist yet.
Buyers were advised that "the Plan of Subdivision will be lodged for registration in the very near future and the Contract for Sale will most likely be a 42 day completion".
A spokesman for Government Property NSW said that the sellings agents were continuing to negotiate with interested parties and added that he did "not believe the amended subdivision plan was a material influencer on the sale".
Buyers will not be able to settle on the property until the subdivision is registered with Land and Property Information NSW.
The last three properties to be sold by the state government in Argyle Place also required subdivision. However, the state government managed to register those titles just days before the auction.
Millers Point: a community under the hammer
Following those successful auctions the Minister for Family and Community Services, Gabrielle Upton, put out a statement announcing the sale.
"There's been a strong market response to the release of the government-owned properties in Millers Point with a total of $21.9 million raised so far from nine sales," read the statement.
"The NSW Government is preceding with plans to sell the remaining 284 properties so funds can be reinvested back into the public housing system."
No such statement was sent out following the unsuccessful auctions on Monday night.
RESOURCED: http://news.domain.com.au/domain/real-estate-news/millers-point-government-selloff-hits-a-snag-20141217-128pvj.html
Toby Johnstone
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| Three state-owned terraces on Kent Street, Millers Point, passed in at auction on Monday night |
There were 11 potential buyers gathered in the Ray White auction room in Double Bay to compete for three heritage-listed terraces on Kent Street
Up until last night the government had no issue finding buyers for other Millers Point properties, some of which were so popular they sold for more than $1 million above the price guides.
 |
| Even with views of the harbour the terraces struggled to rouse buyer interest. |
The first property up for grabs on Tuesday evening was a three-bedroom terrace at 47 Kent Street. The three-level property with harbour views listed with Di Jones was previously scheduled for auction on Monday night but was postponed due to the siege in Martin Place.
After 10 minutes of silence an opening bid of $1.35 million was begrudgingly accepted by the auctioneer, followed by a $1.4 million bid, which was still $100,000 shy of the $1.5 million price guide. No vendor bid was exercised and the property passed in at $1.4 million.
When the next property at 43 Kent Street came up for auction one punter tried for a low-ball bid of $1.32 million, which was not accepted by the auctioneer. The terrace was recorded as passing in with no bids.
 |
| It is understood that the properties were being sold with an unregistered plan of subdivision. |
The terrace next door at 41 Kent Street faired no better - the auctioneer called three times for an opening bid of $1.4 million but buyers kept their hands down.
It is understood that the properties were being sold with an unregistered plan of subdivision, which effectively means buyers were bidding for a land title that did not exist yet.
Buyers were advised that "the Plan of Subdivision will be lodged for registration in the very near future and the Contract for Sale will most likely be a 42 day completion".
A spokesman for Government Property NSW said that the sellings agents were continuing to negotiate with interested parties and added that he did "not believe the amended subdivision plan was a material influencer on the sale".
Buyers will not be able to settle on the property until the subdivision is registered with Land and Property Information NSW.
The last three properties to be sold by the state government in Argyle Place also required subdivision. However, the state government managed to register those titles just days before the auction.
Millers Point: a community under the hammerFollowing those successful auctions the Minister for Family and Community Services, Gabrielle Upton, put out a statement announcing the sale.
"There's been a strong market response to the release of the government-owned properties in Millers Point with a total of $21.9 million raised so far from nine sales," read the statement.
"The NSW Government is preceding with plans to sell the remaining 284 properties so funds can be reinvested back into the public housing system."
No such statement was sent out following the unsuccessful auctions on Monday night.
RESOURCED: http://news.domain.com.au/domain/real-estate-news/millers-point-government-selloff-hits-a-snag-20141217-128pvj.html
