No surrender for Millers Point public housing tenants as picnic draws big show of support

James Gorman September 15, 2014



Kingtide performs at the Millers Point Spring Picnic.

Hundreds  gathered in Millers Point on Sunday to celebrate the spirit of a community which won’t surrender its homes without a fight.
Months of hard work paid off when the embattled public housing community hosted a picnic to raise awareness about the forced sell-off of their homes.
More than 400 people from across the country made the trip to the historic precinct along with key personnel who gave heartfelt speeches to remind local residents they had not been forgotten.



A sign of defiance at Millers Point. Source: News Corp Australia

    



The NSW Police Band lets rip

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Despite the State Government having already accumulated more than $11 million in revenue from the sale of four historic properties, the Millers Point community have not given up hope their generational homes could still be saved.

CITY DONATES $10K FOR MILLERS POINT PICNIC

Local resident Barney Gardner said he was overwhelmed by the support the picnic received.
“The atmosphere was amazing,” he said. “We had out meeting in the hall, where Clover Moore, Alex Greenwich and Irene Doutney were just some of the people who made speeches.

“Each speaker had a Q & A afterwards and there were a few tongue-in-cheek jokes, so everyone had a laugh.



Artist Jane Bennett. Source: News Corp Australia

   

Tigerlily Gledhill contemplates a move.

 

     “For the people who came along there was plenty of entertainment and you could see everyone having fun and enjoying the weather.

“For the people who live here it was great to have a day where we could just relax and have fun and not worry about everything that’s happening.

WHAT DO YOU THINK?

Should the Millers Point community keep fighting? Tell us your thoughts below

“We had visitors who made the trip up from Victoria and … Queensland.

“These were people who grew up in Millers Point and moved out but still came back to show their support.”

Making a point. Source: News Corp Australia

    

The Reg Mombassa-designed fighting symbol. Source: News Corp Australia

   

Mr Gardner said it was time for the State Government to disclose how it would be spending the millions of dollars already accumulated from the sale of Millers Point properties.

“The government has already raised about $11 million from the sale of four properties so what we want to know is when is the first spread of soil going to be turned and where exactly are they building these new properties they have promised us,” he said.

“We have been promised that every cent from these sales will go back into social housing so we want to know how it is going to be spent.”
THE LATEST SALES


● Two more Millers Point properties were sold last week at a closed door auction by McGrath Estate Agents
● The historic properties sold for a combined net value of just over $6.6 million

 

RESOURCED: http://m.dailytelegraph.com.au/newslocal/city-east/no-surrender-for-millers-point-public-housing-tenants-as-picnic-draws-big-show-of-support/story-fngr8h22-1227060262716

Sydney's instant multimillion dollar suburb: Terraces in rundown Millers Point selling for twice the expected price... the latest for $3.95million is a new record

 13 September 2014   May Slater

An old housing commission terrace in Sydney's Millers Point has set a new record in the historic inner city suburb, selling for $3.95 million at a secret night-time auction.
 

The Victorian-era five-bedroom house 'Ballara' is the fourth of 293 state-owned houses to go under the hammer in a government plan to sell off public housing and relocate 600 housing tenants.
 

The sale price was much larger than expected. Buyers were given an estimate of $2.7 million in marketing material handed out before the auction, Property Observer reports.

11 Fort Street in Millers Point sold for $3.95 million last night, setting a new record for terraces in the suburb

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Built in 1879, 'Ballara' is one of several recent heritage listings along Lower Fort Street, which runs from the Sydney harbour foreshore at Dawes Point up to Observatory Hill in the city's historic the Rocks district.
 

With prime views of the Sydney Harbour Bridge and easy access to the tourist hot-spot the Rocks, the terraces are hotly sought after by developers. The first heritage-listed home at 119 Kent Street recently went under the hammer for $1.9million. The second at 23 Lower Fort Street sold for $2.685million.

 

More...

• Next group of Millers Point properties up for grabs … for more than $4.3 million
• From poor house to the penthouse: Second historic Millers Point property sells for $2.56 million... more than $1 MILLION over reserve

The sales have delivered a windfall to the New South Wales government of more than $11million so far, with two more properties - 86 Windmill Street and 30 Argyle Place - due to be sold in the coming weeks, according to the NSW Office of Finance and Services.

 

The old Millers Point social housing terraces command some of Sydney's best harbour views

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But the State government's mass relocation of public housing residents has triggered claims of economic cleaning in the inner city area, and Thursday night's auction saw around 40 Millers Point residents turn up to voice their complaints.
 

Barney Gardner from the Rocks Public Housing Tenants Group said the heritage of Sydney's first neighbourhood will be lost with the sales.
 

'They're not only selling the bricks and mortar of the area, they're selling our history and our heritage,' he told the Daily Mail.
 

'The thing we're really angry about is the fact that some of these properties have been vacant for so many years, some for as many as seven  years,' he said. 'The property in Kent St has been vacant for the last three years - meanwhile we have all these people sleeping rough on the streets who could have had a roof over their heads.
 

'I call it 'eviction by dereliction,' he said. 'We've been asking to get work done on these places for so many years and they wouldn't do it, now they're making repairs because they're going to make some money of their own.'

No Surrender: A mural at Lower Fort Street protesting the NSW government's moves to sell off social housing and evict 600 residents at Millers Point

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The Georgian terrace 'Tarra' sold for $2.68 million, almost double its forecast value

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The Minister for Family and Community Services, Gabrielle Upton, says the sale of the Millers Point properties will return hundreds of millions of dollars to the public housing system to help the 58,000 people currently on the housing waiting list.
 

'This is all about reinvesting money back into the public housing system by selling properties that are very costly to maintain,' Ms Upton said. 'The age and heritage nature of the Millers Point properties mean they often cost four times as much to maintain as the average social housing property.'
 

The government says that for every house sold in Millers Point, it can build three houses elsewhere.

The old social housing terraces in Millers Point occupy prime foreshore land and are within walking distance to the historic Rocks precinct

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Some of the Millers Point terraces being sold-off have been vacant for at least three years

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Mr Gardner said the elevated prices being received for the properties raises suspicions.
 

'How can you undervalue a place by half to a million dollars? One real estate agent told me that if a place goes for 10 - 20 per cent more than it is valued at, that's buyer excitement - but if it goes for 80 - 90% more than expected? Something's wrong,' he says.
 

A spokesperson for the NSW Office of Finance and Services, who are managing the terrace sales, says the price guide is set by the sales agents.
 

'They're set by market feedback, obviously there's not a lot of market detail for these kind of properties in the precinct that haven't been sold for 100 years - so the agents are going by what buyers have told them,' he told the Daily Mail.

This property at 86 Windmill Street will go to auction later this month

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Mr Gardner said he and at least 200 other Millers Point residents who have been issued with eviction notices will 'fight this to the end.'

 

'We're in a lot of talks with the opposition at the moment. Labour says they'll stop the sale if they get into government, they're formulating a housing policy and have asked for our input,' he said.
 

'It's hard for some of the more elderly people here, they don't have the energy, but I'll fight this to the end, it's my home. '

RESOURCED: http://www.dailymail.co.uk/news/article-2754322/Rundown-Millers-Point-terraces-double-price-fourth-terrace-sold-sets-suburb-record.html

An alternative way forward for social housing in Millers Point and the Rocks

In March 2014, the NSW Government announced that it proposed to sell 293 properties in Millers Point, Gloucester Street and the Sirius building in The Rocks as part of a social housing divestment plan to provide an upfront cash injection to the Land and Housing Corporation. The government identified the reasons for sale as being ‘the high cost of maintenance, significant investment required to improve properties to an acceptable standard, and high potential sale values.’

SGS Economics and Planning prepared an independent report at the invitation of the Miller’s Point Community Group to review the government’s plan. The report uses a cost benefit analysis framework to argue that a more strategic approach to social housing properties in Millers Point and the Rocks may result in a better economic and social outcomes for NSW as a whole.

SGS suggests retaining a mixed community by providing a range of private, affordable, social and aged care housing by retaining at least some social housing in the area.

Failing to provide opportunities for people on lower incomes to live in well-serviced, accessible and job-rich areas, like inner Sydney, has an impact on the city’s overall productivity and global competitiveness.

Although a mixed community will provide less cash upfront for the Land and Housing Corporation, the report argues it will have improved outcomes for NSW as a whole. These include:

• Enabling workers on lower incomes to live closer to employment opportunities. This allows them to access a deeper jobs pool within community distance and more easily improve their skills.
• Making it easier for firms in the inner city to fill lower paid positions, such as cleaners and childcare workers
• Providing housing for ‘key workers’ essential to the city’s functioning, such as police, nurses and teachers, which could have an effect on the tourism, hospitality and education sectors.
• Addressing the mismatch between the locations of cheaper housing and employment in Sydney, which affects lower income families, especially women.

Various levels of government, both in Australia and overseas, are increasingly designing policies with the aim of developing mixed communities.

SGS’s report contains a number of recommendations for an alternative approach to social housing in the inner city:

• Maintaining some, rather than all, social housing in the area. The most appropriate properties to retain will be those with low maintenance costs that are purpose-built as social housing.
• Replace all lost social housing stock within the inner city area, rather than relocating it to areas with poor services and accessibility.
• Invest in a purpose-built facility to house elderly long-term residents of the area to allow these residents to age in place and maintain their links to the community.
• Increase the amount of affordable housing in the area to cater for lower-income workers essential to the city’s function.
• Offer long term leases to the market, rather than selling properties outright. This will allow the NSW government to keep their options open about how to use the properties in the future.

Read the full report here.
For more information contact Patrick Fensham, National Leader for Urban and Regional Planning.


SEE FULL REPORTS:  http://www.sgsep.com.au/assets/Millers-Point-Final-Report.pdf


RESOURCED: http://www.sgsep.com.au/news/an-alternative-way-forward-for-social-housing-in-millers-point-and-the-rocks-/

Millers Point Spring Picnic

Event:  SUNDAY 14/09/2014

Join the celebration at Millers Point Spring Picnic

"Trodden but not down, battered but not beaten, shunned but not forgotten."

Millers Point history and its community began on 1788 where it was first occupied for thousands of years by the Cadigal Aboriginal tribe. 

Initially white settlers were deterred by its muddy and rugged shores but the place proved to be ideal for windmills. Three wooden mills were run by an ex-convict named John Leighton. The area was originally called Jack the Millers Point then later Millers Point.

Coves and Wharves were built around Millers Point circa 1800 when space around Sydney had become scarce. It brought merchants, wharf owners, ship captains, and labourers. The commercial activities and the gold rush brought prosperities to Millers Point.

 

 

Workers were mainly male and came from different countries. The centre of activities were mostly around the wharves but work was seasonal and irregular.

In the early 1900's bubonic plague hit Sydney. It was carried by rats from ships that docked the area. Arthur Payne was the first known infected person. He was a van driver from Millers Point.

The state government took control of the waterfront including Millers Point and has since owned and administered the suburb.

It was the year 1914 when World War 1 broke out, disrupting the growth of Millers Point. A hundred of Millers Point workers were unemployed. Hickson road became known as the "The Hungry Mile". Families shared whatever food, clothing and money they had.

But the economy improved and development from the post-war era meant work at the wharves became regular.

By then The Maritime Services Board oversaw the management of the housing estate. Tenancies were passed down from one family to another hence cementing the spirit among the community throughout the generations to come.

Neighbour's became someone else's Aunty or Uncle. Brotherhood and sisterhood among peers are common.

Children were free to roam the streets and everyone looked out for each other.

In the 60's and 70's the construction boom hit Sydney. The Rocks re-development threatened to force out the public housing estate. Darling Harbour and The rocks became a tourist destination putting great pressure on Millers Point.

Housing NSW took control from The Maritime Services Board.
The Carr government in 2003 announced that work around the Port would end and the historic wharves adjacent to Millers Point would be turned into a precinct now called Barangaroo.

By 2006 the Iemma labour government announced the 99 year lease of 16 Millers Point properties, then was sold two years later saying the revenue will contribute to the housing budget.

Supposedly a one-off, but in 2010 a further 20 properties were sold off for more than $1 million each.

On March 2014, The O'Farrell government announced that 300 public housing will be sold off at Millers Point, The Rocks and Gloucester Street - hence the re-location of the tenants.

So where does that leave the generations of families that made up this close knit community?

It could have easily become a scene from a movie called Road to Perdition or The People's Power Revolution.

amindinfinite.wordpress.com

Instead hundreds of Millers Point residents took to the streets and crammed a community hall to discuss the eviction to no avail. It's a case of David and Goliath.

The anger that seethes in the heart at being told to leave your home is unfathomable. How can you explain to your grandma or grandpa that they have no homes and will be shifted to some unfamiliar territory. For some it could mean a death sentence.

On July 2014, the government had announced the sale of the first six heritage properties. Similar free-hold properties are said to be sold for at least $3 million each. Millers Point is deemed to become one of the most exclusive suburbs in Sydney.

For this formidable close-knit community, the battle to keep their heritage is not yet over. To show their solidarity, express their renewed strength and to celebrate the people that carved an important part to this historic nation, a picnic event will be held at the Community Centre & Argyle Place Millers Point and everyone is invited.

The expansive greenery will be littered with market stalls, mural art and art displays. There will be live music, motivational speakers, garden games, stories, dancing, face painting and more.

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It will be a celebration of survival, resilience and being a strong and proud Australian. That in spite of adversities they will rise and will never be forgotten.

Let's mark the 14th of September 2014 on our calendar and with our loved ones in tow, let's head to Millers Point, and give our support, join the celebration of life and heritage with the community of Miller's Point.

The event starts from 10AM till 4PM.

RESOURCED: http://www.weekendnotes.com/millers-point-spring-picnic/81996/ 

The five reasons why Millers Point prices are red hot, as terrace record hits $3.95 million

Jonathan Chancellor | 12 September 2014




A Millers Point property at 11 Lower Fort Street set a new suburb terrace record, selling for $3.95 million at auction last night.

The five bedroom home had been listed at more than $2.6 million, then $2.7 million in published marketing ahead of the auction.

The sale price was at the higher end of the onthehouse moderate guess range: $3,525,000 - $3,975,000.

The second Millers Point offering at 23 Lower Fort Street sold for $2,685,000.

The smaller four bedroom home was tipped to fetch more than $1.7 million.

The two Millers Point terraces were sold off by the NSW state government.

The 11 Lower Fort Street, Ballara (pictured above), was a five bedroom, four level offering.

The other property at 23 Lower Fort Street (pictured below) was the 1830 Georgian town home, Tarra which boasts an impressive frontage and captures views of the Opera House.

A Government Property NSW spokesperson advised Property Observer that prior to being listed on the market the properties in Millers Point were individually valued by an independent qualified valuer who has no involvement with the sales process. 

Valuations were done on the basis of a freehold sale and current condition.  

The sales agents were not provided with the valuations. 

"The price guides are set by agents based on market feedback," the spokesperson said.  




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

A survey of agents by Property Observer suggests the initial four sales to date - that will assist in setting the market - were a result of the the combined circumstances, including:

• The somewhat dramatic recent overall 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.

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

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

Fairfax Media recently suggested the previous record price for a house in Millers Point was set in 2009 when a freehold home on Lower Fort Street sold for $3.05 million.

It now carries an onthehouse estimate of $4,758,800 - $5,366,800 were it to return to the market by its private vendor.

RESORCED: http://www.propertyobserver.com.au/forward-planning/advice-and-hot-topics/title-tattle/35575-the-five-reasons-why-millers-point-prices-are-red-hot-as-terrace-record-hits-3-95-million.html
 

Millers Point double auction nets $6.6 million

Record price: This five-bedroom home at 11 Lower Fort Street, Millers Point, sold for $3.95 million - $1.25 million above the price guide.

September 11, 2014

 A double Millers Point auction on Thursday evening has netted the state government just over $6.6 million but cast further doubt over the accuracy of the price information being given to buyers.

Both terraces auctioned at McGrath Estate Agents' head office in Edgecliff sold for about $1 million more than the official price guides.

The first property offered at 11 Lower Fort Street set a new suburb record, selling for $3.95 million.



Above expectations: This house at 23 Lower Fort Street, Millers Point, sold for $2,685,000 - $985,000 over the price guide.

The five-bedroom home had been initially listed at more than $2.2 million but the price guide was revised to more than $2.7 million ahead of the auction.

The second Millers Point offering at 23 Lower Fort Street sold for $2,685,000 to a couple from the inner west.

The smaller four-bedroom home initially had a price guide of more than $1.2 million but that was revised during the campaign to more than $1.7 million.

After the auctions the Shadow Minister for Housing, Sophie Cotsis, called on the state government to be "more transparent" about the sales process.

"Obviously the price guides are just not giving an accurate indication to buyers," she said.
Entry to the auction was strictly limited to vetted "bona fide" buyers. In a similar fashion to the first Millers Point auction, buyers had to show their cheque book before they were allowed to enter.
An auction attendee advised Domain of the sale prices.

The more expensive Victorian terrace at 11 Lower Fort Street is on a 224-square-metre block and has views over Walsh Bay.

The smaller offering on the evening at 23 Lower Fort Street is an 1840s house called 'Tarra'. Spread over four levels the property has views of the Opera House from the front balcony as well as north-westerly views over the harbour at the rear.

 Millers Point: a community under the hammer


The first state-owned property to be auctioned at Millers Point sold for $1.9 million on August 21. The price guide for 119 Kent Street had been more than $1.3 million.

The second Millers Point auction was of a larger terrace at 29 Lower Fort Street. The property sold for $2.56 million, well above the price guide of between $1.5 million and $1.6 million.

In the lead up to the most recent auctions McGrath publicly advertised the price guides on Domain.com.au and adjusted them based on buyer feedback.

The remaining 289 state-owned properties at Millers Point and The Rocks will be sold off over the next two years.

Members of the Millers Point community were gathered outside the auction to protest the government sell-off. As buyers entered the premises the protesters chanted: "Hands off public housing".

The previous record price for a house in Millers Point was set in 2009 when a rare freehold home on Lower Fort Street sold for $3.05 million.

 RESOURCED: http://smh.domain.com.au/real-estate-news/millers-point-double-auction-nets-66-million-20140911-10ffgu.html

MILLERS POINT PUBLIC HOUSING

Legislative Council, 11 September 2014

 

The Hon. NIALL BLAIR: My question is addressed to the Minister for Fair Trading in that capacity and in his capacity representing the Minister for Finance and Services. Will the Minister update the House on recent sales of public housing properties at Millers Point and allegations of under quoting?

The Hon. MATTHEW MASON-COX: I thank the member for this timely question because there are two more property sales occurring tonight. I know the Hon. Sophie Cotsis will be delighted to welcome those auctions. It has been a successful process. I will reflect upon that for a moment. The Hon. Sophie Cotsis stated:

These secret auctions show the Government is more concerned with a quick cash grab, rather than the best interests of taxpayers and the current tenants of these properties.

The Liberals claims they want to invest the revenue from the sales in new public housing but there is no evidence of that in the budget.

Is that not interesting? I have attempted to educate the Opposition to understand budgeting in this State. The reality is that you cannot spend money you do not have. It is a fundamental budget principle. The Government has made it clear on a number of occasions that it will go through an orderly process and seek to maximise the proceeds from the sale of the properties.

The PRESIDENT: Order!

The Hon. MATTHEW MASON-COX: I guarantee that every single dollar will go into social housing in this State. That is how it should be. The proceeds from that investment will realise three times more social housing in places where people will be able to use that social housing.

The PRESIDENT: Order! I call the Hon. Sophie Cotsis to order for the first time.

The Hon. MATTHEW MASON-COX: As members are aware this process is being overseen by an independent project facilitator and undertaken by Government Property NSW through a very well-managed public sales process. I congratulate the Minister for Finance and Services and the Minister for Family and Community Services for a robust process that is delivering significant proceeds to the State. Six properties were part of the pilot program launched on 12 July. Two properties have been sold. The first property, at 119 Kent Street, was sold at auction for $1.911 million, which was very much in excess of the reserve price and the expected price in the market. That led to the request for an inquiry by the member opposite.

The second property, at 29 Lower Fort Street, was sold for $2.56 million. Two more properties will be sold tonight. We have a process that delivers magnificent proceeds to the Government. Those proceeds will be reinvested in social housing. The Opposition is carping about the reality of that sales process being successful. They are carping that the process is too successful. They said that an investigation into under quoting was necessary. So they wrote a letter to the Commissioner for Fair Trading. No-one complained except the member opposite.

The PRESIDENT: Order! I call the Hon. Sophie Cotsis to order for the second time.

The Hon. MATTHEW MASON-COX: What happened? The Commissioner for Fair Trading conducted an investigation and wrote the member a letter. Has she received it yet? What did it show? There are no issues with the sale process whatsoever. There are no issues at all; it is a very successful sale process. [Time expired.]

The Hon. Amanda Fazio: I have a supplementary question. I want to ask him where he's building the houses.

The PRESIDENT: Order! The Hon. Amanda Fazio will resume her seat; she did not ask the original question, as she well knows.

RESOURCED: https://www.parliament.nsw.gov.au/prod/parlment/hanstrans.nsf/V3ByKey/LC20140911?open&refNavID=HA6_1

NSW Land and Housing Corporation: receipts and payments

Tuesday, September 9, 2014

Our recent post about the Millers Point social housing sell-off triggered a discussion in the comments section about the NSW Land and Housing Corporation's finances. Let's have a look at LAHC's most recent (2012-13) annual report, and particularly its statement of cash flows (page 31), to find out where LAHC's money came from, and where it went. 

First, the money going in (receipts).

In 2012-13, LAHC received, in total, $1.17 billion from its operating activities and investing activities. Most of this money – $762 million – came from tenants, in the form of rents and other charges (yes, social housing tenants pay money to LAHC, not the other way around).

The next largest source of receipts was sales of property, plant and equipment. Proceeds of sales came to $190 million, of which $152 million were from sales of residential properties.

In third place, government grants to LAHC came to $145 million. Of this, $19 million came directly from the Federal Government, the rest from the NSW Department of Family and Community Services... but at least some proportion of that State money came indirectly from the Federal Government, because it gives the NSW State Government about $400 million per year for various housing-related purposes under the National Affordable Housing Agreement. (And as an aside, Federal government money is not taxpayers' money).

Now, the money going out (payments).

'Property and residential tenancy' payments were the largest category – at $454 million – and include payments for council and water rates ($210 million) and repairs and maintenance ($203 million).

Next largest were payments for the purchase of property, plant and equipment: $265 million. Of this, $115 million was spent acquiring, redeveloping and building social housing.

And then there were payments for administrative and working expenses ($164 million), personnel services expenses ($55 million) and some smaller categories. Total payments: $1.04 billion.

So, at the end of the 2012-13 year, LAHC's total receipts exceeded total payments by $133 million. Add to that $30 million cash from the previous year, LAHC ended the year with $163 million in the bank.

It also ended the year with 1 328 fewer social housing properties (145 248 properties). The total value of its assets, however, was up $2 billion ($34 billion).

Some interesting points:

• Rents and other charges received from tenants ($762 million) were more than enough to cover all payments relating to operating activities ($726 million, being council and water rates, repairs and maintenance, admin, etc).
• LAHC received $152 million from the sale of social housing stock, but spent considerably less ($115 million) on purchases of new social housing stock.
• The Auditor-General elsewhere reports that in 2013 LAHC had a maintenance backlog of $317 million... yet it also had $163 million sitting in the bank.

Hope for Millers Point from Social, Public and Affordable Housing Committee

8 September 2014

Alex Greenwich, the Independent member for Sydney, has welcomed recommendations of the Select Committee on Social, Public and Affordable Housing.

Mr Greenwich said the recommendations provide some hope for Millers Point residents:

“The committee highlighted the deficiencies of the government’s plans to sell-off all public housing in Millers Point, and called for a portion of public housing to be retained.”
Key recommendations include:

• a dedicated fund from the sale of public housing properties for building new housing;
• requiring 10 per cent of all dwellings replacing multi-unit properties sold allocated for social, public and affordable housing; and
• better engagement with the community housing sector.

“I call on the minister to closely review the inquiry findings and wind back the sale of social housing in Millers Point.”
 
“The Minister must work with community housing providers who may be able to retain social housing in the area.”


A copy of the report and recommendations can be found HERE

- See more at: 

http://www.alexgreenwich.com/hope_for_millers_point_from_social_public_and_affordable_housing_committee#sthash.dJdxiRhM.dpuf

RESOURCED: http://www.alexgreenwich.com/hope_for_millers_point_from_social_public_and_affordable_housing_committee

Riddle me this, Bat-bank: who determines value?

Edwin Almeida | 9 September 2014

GUEST OBSERVATION

Who really sets the end value of the home?

This may well be determined soon enough, putting an end to many discussions held over the years regarding the contested topic. Most say the value is set by “what people want to pay for a home and what a vendor wants to accept”. Others believe the end decision is made by the the valuer. But let us not forget the final player: the bank.

No doubt the sale of the two government-owned Millers Point properties at such vast price points has placed a magnifying glass over the valuation process itself. The recent sales will test everyone’s theories, perceptions and ideals as to who has the final call on the value of the home.

The agents
The agents are, we may say, the first line of clarification when ascertaining what a property is worth. A well versed agent in his or her field of expertise in their patch will promote their worth, first and foremost, by knowing their product.

In the first instance, when looking into the sales at Millers Point, the market opinion and price guide provided was $1,000,000. However, this was later adjusted to $1,300,000. This is a bench mark set by a professional that has years of knowledge and expertise in an area and a specific market. This is also knowledge that valuers often rely on to make their final call. After all, the agents live, breathe, and are in and out of homes in their patch on a day to day basis. Hence, they are a valuable resource to have when searching for a price guide and a professional realistic market opinion.

The valuer
The valuers, on the other hand are utilising a number of resources, which range from agent market opinions to online data of recent sales and no doubt the science of  ascertaining building costs-depreciation and land values. It is a very complex and under rewarded process in my opinion, when providing a valuation for a bank post the sale.

The bank
The bank will rely on the final opinion of the valuer and I have a hunch they will also have their internal policies centred round lending criteria to meet with the borrower’s financial position.  I would also speculate at this point that most banks will assess the loan process and the Loan to Value Ratio differently. Therefore, they are indirectly providing particular instructions to the valuer.

Now riddle me this, Bat-bank: which parcel of information will you rely on when the purchaser approaches you for the funding? Here is the conundrum as we further explore this enigma:

1. Agent’s public opinion “price guide” of what the property is worth; $1,000,000 - $1,300,000 first sale and $1,400,000 - $1,500,000 price guide on second sale.
2. Final sales figure; $1,911,000 for the first and $2,560,000 for the second sale.
3. Then there is the undisclosed figure if a true valuation was to be conducted by a valuer, without any outside influences by banks or agencies.    

If we venture back to the beginning and purely relied on the premise that a home is worth “what someone is prepared to pay and what the vendor is prepared to accept”, there would be no issue whatsoever. However, the valuer is caught between a rock and a hard place as they have to justify their findings to the bank. A major criteria expected by the lender to approve a loan by way of accepting a valuation concerns comparable sales of like property in the area.

Therefore, do they rely on the price achieved in the first property sale, or do they rely on the value of the second? A conundrum to many if this was the only way to ascertain the value of a property. But this is a questionable proposition, as on the surface, it appears to be the major methodology a bank uses to dish out credit. So, Bat-bank, what figure will you accept?

If the bank accepts the latter sales figure, this would mean the first property was sold for peanuts and the person that bought the first home won the lottery.  If the sale price of the first home is the benchmark, one can only assume that the valuation of the second home will come in very short.
Then of course there is the other ideal in Gotham-Sydney. The banks will fund all the purchases to create a history and a sample of at least 4-5 sales to justify their reasoning and paperwork to their shareholders. Always be mindful that in most instances but not all, the first few sales in a cluster when sold as individual lots, are the cheapest sales.

Therefore, based on the current precedence, the next homes to go under the hammer may just tip the $3,000,000 mark. I continue to believe $2,700,000 - $3,000,000 was on the money. As the properties continue to rise in value, this can only continue to create further embarrassment to the price guides given by the agencies that sold the first and second home. Now riddle me this, Bat-bank: how will you value the homes?

RESOURCED: http://www.propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/35097-sept-9-observer-riddle-me-millers-point.html

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

Millers Point Spring Picnic

Post by Save Our Homes - Millers Point, Dawes Point & The Rocks.


#savemillerspoint #auspol #nswpol #wheresgabby

Millers Point Spring Picnic Pozible

Post by Save Our Homes - Millers Point, Dawes Point & The Rocks.


 

SAVE YOUR HERITAGE. SAVE OUR COMMUNITY On March 19, 2014, all of the public housing tenants of Millers Point, Dawes Point and The Rocks, were told that they would be evicted from their homes and from their neighbourhood within two years, with the properties to be sold off. They were told that there was nothing they could do to stop it. Listed on the State Heritage Register since 2003, this unique community and vital part of Sydney's history is about to change forever. While some households have moved on and the first house has been sold, there are still over 200 public housing resident households that remain, many for whom the thought of leaving is unbearable. So show your support, come and celebrate the heart and soul of Millers Point, Dawes Point and The Rocks with the community and supporters. Supporters include a range of people and organisations from local businesses and home owners, artists, musicians and other creatives, academics, legal organisations, Sydney Mayors from various local government areas, and local members of parliament from different parties. The diversity inherent in the community of supporters, proves that the values that lie at the heart of this protest and celebration, are human values shared by many. The people of Millers Point, Dawes Point and The Rocks, are a community of people that represent history, diversity and inclusion in Sydney. The residents of Sirius at The Rocks are being evicted from a purpose built apartment block, and many others are the direct descendants of wharf and docks workers from as long as five and six generations back. These are the very people, the historical community, for whom the homes were built. A true community can't be built by developers, and we know that these are common values, so come celebrate the Millers Point, Dawes Point and The Rocks community with us on September 14th. Millers Point Spring Picnic Facebook Page The Official Millers Point - Save Our Homes Facebook Page SMH Interactive Millers Point Community History Site Sign the change.org petition The State Heritage Register The photographs of residents and the accompanying texts used on this platform have been compiled by Margaret Bishop and John Dunn. The main, informational text was written by Cara Cumming King, with contributions by Sally Cushing. The poster was created by Sally Cushing. Diego Bonetto, a pozible ambassador, provided expert insight into running a successful pozible campaign. Reg Mombassa (aka Chris O'Doherty) created and donated the amazing art work that features on the badges and t-shirts. Also, I want to say thank you to all the residents of Millers Point, Dawes Point and The Rocks, in conjunction with whom this campaign page was created. You are amazing, and the Spring Picnic will be amazing, I know it! Cara. How the funds will be used The funds raised will go towards costs of a PA System and a stage, for live entertainment. Help us make this important day memorable. Any funds raised over the reserve will go towards other costs related to celebrating, and fighting for the community of Millers Point, Dawes Point and The Rocks. Challenges We are hoping for clear skies, good spirits and beautiful hearted people. We are doing our best to have plenty of plan B's ready to go. If we fall short of fund raising we will have to downgrade, improvise and make do. We will have fun no matter what.