INDEPENDENT MARKET VALUATION

Transcription

1 INDEPENDENT MARKET VALUATION Townhouse Unit "As if Complete" As At: 21 st November 2015 Prepared For: Our Reference: JPM-2572 Positive Growth Property Proposed Lot 18 "The Avenues at Salisbury" Harlen Road, Salisbury, Queensland, P a g e

2 Date of Valuation 21 st November Instructing Party Purpose of Report Positive Growth Property Attention: Margie Baldock, The valuer has been engaged to provide a Market Valuation "As if Complete" for Developer Due Diligence Purposes on Lot 18 within a proposed development to be constructed at Harlen Road, Salisbury, Queensland, The details of Lot 18 are as follows: ASSESSMENT BED/BATH/CAR LIVING OUTDOOR CAR TOTAL FLOOR AREA (m 2 ) Type B2 3 Bed+Study Nook/2 Bath+Pwd/SLUG 91.9m² 16.5m² 20.3m² 128.7m² Note: As per our instructions, the valuer has valued proposed Lot 18 which will provide a general price range for units within the development. We have identified the proposed unit for the subject property from developer provided plans. Definition of Market Value The estimated amount for which an asset or liability should exchange on the date of valuation, between a willing buyer and a willing seller, in an arm s length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion. Definition of "As If Complete" Legal Description Body Corporate Services Local Authority Zoning Location and Neighbourhood The Market Value of the proposed improvements as detailed in the report, on the assumption that all construction had been satisfactorily completed in all respects at the date of this report. The valuation reflects the valuer s view of the market conditions existing at the date of the report and does not purport to predict the market conditions and the value at the actual completion of the improvements. Accordingly, the as if complete valuation must be confirmed by a further inspection by the valuer, initiated and instructed by the lender on completion of improvements and the right is reserved to review and if necessary, vary the valuation in this report if there are any changes in relation to the project itself or in property market conditions and prices. Proposed Lot 18 to be registered over the parent parcel being Lots 1 and 2 on RP , Lot 7 on RP and Lot 1 on RP Parish: Yeerongpilly. Body Corporate: To be determined. Electricity, sewerage, telephone and town water are all connected to the subject parent parcel. Harlen Road is a two-way cul-de-sac road with concrete kerbing, channelling and footpaths. Access to the property is considered to be easy and direct. Brisbane City Council. The property is zoned "Low Density Residential" and "Character" zones within the Brisbane City Plan The proposed residential townhouse development conform with the intentions of the classifications. Salisbury is an established residential suburb located approximately 12.1 kilometres south of the Brisbane CBD and comprises a mix of older to semi-modern style detached dwellings and semi-modern to modern style townhouse developments. We have identified the location from locality and cadastral maps overleaf. Salisbury Salisbury Source: Google Maps Source: Nearmap 2 P a g e

3 Amenities Key urban amenities which are located within reasonable proximity by road to the subject property are as follows: ITEM Salisbury Train Station Bus services Brisbane Christian College Moorooka State High School Holland Park High School Griffith University Salisbury Community Childcare Centre Local Supermarket Salisbury Medical Centre Queen Elizabeth II Jubilee Hospital Brisbane CBD Brisbane Airport DISTANCE FROM SUBJECT Within 1.1 kilometres to the north-west. Within 500 metres to the north-west. Within 1.5 kilometres to the east. Within 3.6 kilometres to the north-west. Within 6.7 kilometres to the north-east. Within 2.8 kilometres to the east. Within 1.4 kilometres to the north-west. Within 1.6 kilometres to the east. Within 700 metres to the north-east. Within 2.9 kilometres to the east. Within 12.5 kilometres to the north. Within 26.1 kilometres to the north-east. Site Description The subject parent parcel comprises the amalgamation of four separate allotments to form an irregular shaped development site which has a easterly aspect to road. The land is generally level at road height and throughout, with a gentle slope to the south west from the rear of the site to the street. The property has standard street access and adequate draining. We note the property is within close proximity to Riawena Road, an arterial road which carries a moderate to, at times, heavy level of vehicular traffic with. We have identified the property from the below aerial map below. Built About To be constructed. Site Aerial (Source: Nearmap) Main Building Proposed townhouse development which on completion will contain 34 units with three bedroom configuration. Construction COMPONENT DESCRIPTION Foundations: Concrete strip footings; Floor: External Walls: Internal Walls: Ceilings: Windows: Roof: Concrete/Timber; Rendered concrete/weatherboard; Plasterboard; Plasterboard; Aluminium, and; Metal. 3 P a g e

4 Floor Area The valuer has been instructed to value Lot 18 within the proposed townhouse development: ASSESSMENT BED/BATH LIVING OUTDOOR CAR TOTAL FLOOR AREA (m 2 ) Type B2 3 Bed+Study Nook/2 Bath+Pwd/SLUG 91.9m² 16.5m² 20.3m² 128.7m² Accommodation Type B: 3 bedrooms plus study nook, 2 bathrooms plus powder room, entry, lounge/dining, laundry, patio, courtyard and single lock-up garage. The following floor plans for Lot 18 have been provided by the developer: Ground Floor First Floor Additionally we have located the proposed Lot 18 on the Approved Site Plan, highlighted in yellow on below: Approved Site Plan - Proposed Lot 18 4 P a g e

5 Fitout (Assumed) The following fit out has been assumed for the units: KITCHEN: Modern kitchen with 1 & 1/2 bowl sink, tiled splashback, floor & wall cupboards, pantry, reconstituted stone benchtops, dishwasher, wall oven, electric cooktop, rangehood. ENSUITE: Modern bathroom with shower, single vanity unit, laminate benchtop and cabinet, wall mirror, toilet, ceramic tiles, part height wall tiling. BATHROOM: Modern bathroom with bath, separate shower, single vanity unit, laminate benchtop and cabinet, wall mirror, toilet, ceramic tiles, part wall tiling. LAUNDRY (ALCOVE): Stainless steel laundry tub and laminate floor cupboards. FLOOR AND WALL COVERINGS: Carpet, tiles. HEATING/COOLING: Ceiling fans to bedrooms and air-conditioning to living. FEATURES: Mirrored built-in robes. Views Condition/Repairs Valuation Rationale The units will appreciate local residential views. The subject property is yet to be constructed and it is assumed it will be completed in as new condition, to a workmanlike standard and with no major defects. The Direct Comparison Approach is considered the most appropriate method of valuation. In this approach the property is valued by direct comparison to recent sales of similar properties to establish a current market value. We have relied on sales within developments in the subject and the surrounding locality, as detailed on the following pages. 5 P a g e

6 "As If Complete" Sales Evidence "LE HILL" JPM Valuers & Property Consultants Address: 46 Sherley Street, Moorooka. Distance From Subject: 3.5 kilometres to the NW. Developer: Neway 88 Pty Ltd. Product: 5 x 3 Bedroom Townhouses. Comment: "Le Hill" comprises a modern, circa 2015, residential townhouse development containing 5 x three bedroom, two bathroom plus powder room and single lock up garage townhouse units which have been finished to an above average standard. We are aware of the following recorded sales from within the development: LOT BED/BATH/CAR SALE DATE SALE PRICE AREA (m 2 ) $/m² BUYER ORIGIN 2 3/2/1 24/01/2015 $500, $3,247 NSW 3 3/2/1 04/12/2014 $470, $3,052 Local Comparison: Superior location, street appeal and surrounding development, larger floor areas, similar bedroom, bathroom and car accommodation and modern finishes, smaller development. Overall, considered to useful for comparison purposes to the proposed townhouse unit. "HANSEN LANE" JPM Valuers & Property Consultants Address: 112 Hansen Street, Moorooka. Developer: Jackpot Interiors Pty Ltd. Distance From Subject: 3.8 kilometres to the NW. Product: 8 x 2 Bedroom Townhouse Units. Comment: Comprises a recently completed part three storey building which comprises 7 x three storey, 2 bedroom, 2 bathroom units with single lock up garages and 1 x two storey, 2 bedroom, 2 bathroom unit with single lock-up garage. The units have been finished to a good standard. We have been advised of the following sales from within this development by the selling agent: CONFIGURATION NO. SALES AREA (m²) SALES RANGE 2 Bed/2 Bath/SLUG 4 107m² to 118m 2 $450,000 to $479,000 Comparison: Similar location, street appeal and floor areas, superior quality fit out and inferior bedroom accommodation, similar bathroom and car accommodation. Smaller development. Overall, considered slightly inferior to the proposed townhouse unit. 6 P a g e

7 "As If Complete" Sales Evidence (continued) "THE RESIDENCES PADSTOW" JPM Valuers & Property Consultants Address: 156 Padstow Road, Eight Mile Plains. Distance From Subject: 7.5 kilometres to the SE. Developer: Tongyuan Development One Pty Ltd. Product: 19 x 3 & 4 Bedroom Townhouses. Comment: Due for completion early 2016, "The Residences Padstow" will comprise 19 architecturally designed residential townhouse units containing a mix of 3 and 4 bedrooms with two bathrooms and single lock-up garage accommodation which will be finished to a good standard. Common improvements to the development will be basic. We have been advised of the following sales from within this development by the selling agent: CONFIGURATION NO. SALES AREA (m²) SALES RANGE 3 or 4 Bed/3 Bath/SLUG 19 (Sold out) 188m² to 230m² $549,000 to $579,000 Comparison: Similar location, superior street appeal and much larger floor areas, superior quality finishes. Similar/superior bedroom accommodation and superior bathroom accommodation. Smaller development. Overall, considered to be superior to the proposed townhouse unit. "PENARTH RESIDENCES" JPM Valuers & Property Consultants Address: 69 Penarth Street, Runcorn, QLD, Distance From Subject: 7.9 kilometres to the southeast. Developer: Diligent Development Pty Ltd. Product: 32 x 3 & 4 Bedroom Townhouses. Comment: On completion, "Penarth Residences" will comprise 32 above average quality residential townhouse units containing 3 or 4 bedrooms, 2 bathrooms and single lock-up garage accommodation in duplex configuration. We note that the selling agent has advised there will be no body corporate fees for the townhouses. We have been advised of the following sales from within this development by the selling agent: CONFIGURATION NO. SALES AREA (m²) SALES RANGE 3 Bed/2 Bath/SLUG m² Circa $550,000 Comparison: Superior location and street appeal, much larger floor areas with similar modern finishes, similar bedroom, bathroom and car accommodation. Similar sized development and no body corporate. Overall, considered to be superior to the proposed townhouse unit. 7 P a g e

8 "As If Complete" Sales Evidence (continued) "PADSTOW PLACE" JPM Valuers & Property Consultants Address: 142 Padstow Road, Eight Mile Plains. Distance From Subject: 7.5 kilometres to the southeast. Developer: Australia X & W Eight Mile Plains Pty Ltd. Product: 16 x 3 Bedroom Townhouses. Comment: Completed circa Comprises a modern style, two level townhouse unit development containing 16 three bedroom, two bathroom townhouses. The townhouses have been finished to an above average standard throughout with modern fittings and fixtures. Common facilities include basic landscaping, visitor carparking and on-site manager/caretaker. We note that Padstow Road is a main thoroughfare which carries a moderate to heavy volume of traffic with the development being affected by associated road noise. We are aware of the following most recently recorded sales from within this development: LOT BED/BATH SALE DATE SALE PRICE AREA (m 2 ) $/m² BUYERORIGIN 1 3/2/1 26/09/2014 $499, $3,219 Local 3 3/2/1 19/09/2014 $499, $3,119 Local 4 3/2/1 24/03/2014 $499, $3,199 Local 5 3/2/1 06/07/2014 $529, $3,187 Local 6 3/2/1 20/08/2014 $499, $3,178 Local 7 3/2/1 20/02/2014 $560, $3,889 Local 8 3/2/1 20/08/2014 $499, $3,395 Local 9 3/2/1 04/06/2014 $499, $3,158 Local 10 3/2/1 07/03/2014 $499, $3,178 Local 11 3/2/1 28/04/2014 $519, $3,017 Local 12 3/2/1 03/07/2014 $519, $3,244 Local 13 3/2/1 28/07/2014 $499, $3,119 Local 14 3/2/1 19/06/2014 $499, $3,119 Local 15 3/2/1 19/06/2014 $499, $3,138 Local 16 3/2/1 20/03/2014 $519, $3,392 Local Comparison: Similar location and street appeal, quality of finish, bedroom, bathroom and car accommodation with larger floor areas. Smaller development. Overall, considered to be slightly superior to the subject proposed townhouse unit. 8 P a g e

9 "As If Complete" Sales Evidence (continued) "WHITLEY PLACE MT GRAVATT" JPM Valuers & Property Consultants Address: 18 Whitley Street, Mount Gravatt East. Distance From Subject: 8.1 kilometres to the northeast. Developer: Paxford Pty Ltd. Product: 24 x 2 & 3 Bedroom Townhouse Units. Comment: Completed circa Comprises a modern style, two level townhouse unit development containing a mix of two and three bedroom, two bathroom townhouses. The townhouses have been finished to an above average standard throughout with modern fittings and fixtures. Common facilities include basic landscaping and on-site visitor car parking. We are aware of the following most recently recorded sales from within this development: LOT BED/BATH SALE DATE SALE PRICE AREA (m 2 ) $/m² BUYER ORIGIN 44 3/2/1 02/06/2015 $520, $3,421 Local 49 3/2/1 21/04/2015 $500, $3,289 Local 50 3/2/1 26/03/2015 $495, $3,257 Local 51 3/2/1 22/01/2015 $520, $3,421 Local 53 3/2/1 29/06/2015 $505, $3,322 Local 55 3/2/1 25/06/2015 $540, $3,552 Local Comparison: Superior location and larger floor areas, similar street appeal, quality, size development, bedroom and bathroom accommodation. Overall, considered slightly superior to the subject proposed townhouse unit. "34 TUDOR STREET" JPM Valuers & Property Consultants Address: 34 Tudor Street, Mount Gravatt, QLD, Distance From Subject: 8.3 kilometres to the northeast. Developer: Shen Li Wen. Product: 4 x 3 Bedroom Townhouses. Comment: "34 Tudor Street" comprises a modern, circa 2015, residential townhouse development containing four above average quality, three bedrooms plus study nook, two bathrooms plus powder room and single lockup car accommodation townhouse units. We are aware of the following recorded sales from within the development: LOT BED/BATH SALE DATE SALE PRICE AREA (m 2 ) $/m² BUYER ORIGIN 1 3/2/1 29/06/2015 $525, $3,646 Overseas 2 3/2/1 11/05/2015 $515, $3,576 Local 4 3/2/1 02/08/2015 $523, $3,821 Local Comparison: Superior location and street appeal, larger floor areas, similar bedroom, bathroom and car accommodation and modern finishes. Smaller development. Overall, considered to be superior to the proposed townhouse unit. 9 P a g e

10 Individual Sales Evidence Additionally, we have also had regard to the following individual sales: ADDRESS SALE DATE SALE PRICE 107 "Cornerstone Living", 23 MacGroarty Street, Coopers Plains. 11/01/2015 $491,000 Brief Comments: Comprises a modern, circa 2014, three bedroom, two bathroom townhouse unit with a double lock-up garage which has been finished to an above average standard. Features include reverse cycle airconditioning and ceiling fans. Ground improvements include tidy landscaping. Internal floor area, 116m 2 ; External area, 57m 2. Distance from Subject: Approximately 3.9 kilometres to the south-east. Comparison: Slightly superior location, superior street appeal and larger floor area, similar bedroom, bathroom and car accommodation and quality of finish, inferior second hand product. Overall, considered to be useful for comparison purposes to the subject proposed townhouse unit. General Comments On completion, the proposed townhouse unit will comprise a modern, three bedroom plus study nook, two bathroom plus powder room and single lock-up garage. The townhouse development will contain 32 townhouses plus an existing dwelling which is to be retained. The proposed development is to be located within the established suburb of Salisbury which is approximately 12.1 kilometres south of the Brisbane CBD and comprises a mix of older to semimodern style detached residential dwellings and semi-modern to modern style townhouse developments. The valuer has relied upon the developers marketing material for the schedule of finishes and we have assumed the units are to be finished to an above average standard. Our assessment has been completed on the basis the developer completes the finishes to an above average standard and any signification reduction in quality will potentially have an adverse impact on the marketability and sale prices of the townhouse unit. Local agents who actively market units within Salisbury and surrounding suburbs are reporting steady levels of demand and enquiry with properties prices improving throughout They further advise whilst there has been some improvement in pricing properties need to be priced realistically to generate potential interest and offers. The valuer has been advised the unit is to be listed at $496,280 which is considered with market parameters. It is important to note that purchasers will typically pay a premium for new product. However, this premium is not always attributed to second hand sales with discounts being applied to second hand product. Market Overview Market conditions in the Brisbane property market have improved over the past 18 months with increased sales volume and some increases values across most segments of the market. In response to weaker than expected results in the domestic sectors and the fall in commodity prices, the RBA cut interest rates by a total of 1.25% in 2012 and again in May and August 2013 by 0.5% (0.25% each month). These interest rate cuts coupled with to the change in Australia s governing political party in 2013, gave the general market some renewed confidence and 2013 witnessed increasing purchaser and investor activity in the property and equities markets. Since mid to late 2014 the rapid decline in the mining sector has seen business confidence and the optimism of the Australian economy fall which has coincided with an increase of the unemployment rate. The RBA has reduced interest rates in February 2015 by 0.25% which is in line with trying to continue the transition from the 'mining phase' to the 'development phase' for the Australian economy. Our valuation assumes a professional sales and marketing programme undertaken by agents experienced in this market segment. Should the property be required to be sold in a short time frame or under distressed vendor conditions, then further, potentially significant discounts, could be realised on the assessment provided herein. 10 P a g e

11 As if Complete The market value "as if complete" assessment herein is the market value of the proposed improvements as detailed in the report on the assumption that all construction had been satisfactorily completed in all respects at the date of this report. The valuation reflects the valuer s view of the market conditions existing at the date of the report and does not purport to predict the market conditions and the value at the actual completion of the improvements because of time lag. Accordingly, the "as if complete" valuation must be confirmed by a further inspection by the valuer, initiated and instructed by the instructing party, on completion of the improvements. The right is reserved to review and, if necessary, vary the valuation in this report if there are any changes in relation to the project itself or in property market conditions and prices. 11 P a g e

12 Assessments Based on the Direct Comparison Approach, we have assessed the market value "as if complete" as follows: ASSESSMENT BED/BATH/CAR TOTAL FLOOR AREA (m 2 ) ASSESSMENT Lot 18 3 Bed+Study Nook/2 Bath+Pwd/SLUG 128.7m² $485,000 - $495,000 Jason Matigian Director Certified Property Valuer (CPV) Associate Australian Property Institute (AAPI) Queensland Registration 2735 Disclaimers: This valuation is current as at the date of valuation only. The value assessed herein may change significantly and unexpectedly over a relatively short period (including as a result of general market movements or factors specific to the particular property). We do not accept liability for losses arising from such subsequent changes in value. Without limiting the generality of the above comment, we do not assume any responsibility or accept any liability where this valuation is relied upon after the expiration of ninety (90) days from the date of the valuation, or such earlier date if you become aware of any factors that have any effect on the valuation. A Local Authority search has not been carried out and it is assumed the property is free of requisitions. A Title Search has not been completed and our assessment has been completed on the basis the property is free from any easements, encumbrances or registered/unregistered interests which would have an adverse affect on it marketability and value. To the best of the valuer s knowledge, the land is not affected by unstable, hazardous or toxic soil material, however, no searches have been undertaken in this regard. If you have any concerns, we recommend that you appoint a contamination consultant to confirm the state of the land inspected. The right is reserved to review and, if necessary, vary the valuation figure if any contamination or environmental hazard is found to exist. To the best of the valuer s knowledge the subject property is not affected by Heritage, landslip, vegetation protection or resumption matters, however, no searches have been undertaken in this regard. We have not undertaken a formal search to confirm whether or not the property is subject to flooding or other impediments caused by excess water saturation and/or flood. A survey and/or survey report has not been provided and/or sighted. Our inspection has revealed that there do not appear to be any encroachments upon or by the property. This valuation is made on the assumption that there are no encroachments by or upon the property and that this should be confirmed by a current survey report and/or advice from a registered surveyor. We are not surveyors. If any encroachments or other affectations are noted by the survey report, the valuer should be consulted to reassess any affect on the value stated in this report. It should be noted that we have not sighted any town planning approvals for the subject property. Our valuation is based on the assumption that all of the improvements have been fully approved by the Council. This valuation report is for the use of and may be relied upon only by the party/parties to whom it is addressed and no other parties are entitled to use or rely upon it and the valuer does not assume any liability or responsibility to any other party who does so rely upon the valuation without the express written authority of JPM Valuers and Property Consultants. We advise that the Valuer nominated within this report is authorised under the relevant laws of Queensland to practice as a Valuer. Further, we confirm that the nominated Valuer, JPM Valuers & Property Consultants ( JPM ) or any of its directors or employees do not have a pecuniary interest (financial or otherwise) that could conflict with the proper valuation of the property and we advise that this position will be maintained until the purpose for which this valuation is being obtained is completed. Neither the whole nor any part of this valuation or any reference thereto may be included in any published documents, circular or statement, nor published in part or fully in any way, without written approval of the form and context of which it may appear. If you have any concerns regarding these matters, then we recommend these searches/inspections be completed. 12 P a g e

13 Annexure 1 - Approved Site Plan 13 P a g e

14 Annexure 2 - Inspection Photographs Existing Dwelling Harlen Road Facing South Harlen Road Facing North 14 P a g e

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