37 posts tagged “mirvac”
Tennyson Reach Lawsuit Judgment
As previously noted, Mirvac is suing a number of its off-the-plan customers for failure to settle at the over-priced Tennyson Reach development. Mirvac was recently successful in court on one issue. A purchaser claimed that the lot size of the apartment was 1sqm less than shown on the plan. This is what the court said on this issue:
"The contract provided that the seller could make changes to the size of a lot of up to five per cent (more or less) than that shown in the Disclosure Statement. Accordingly, the description of the floor area on the plan insofar as it operated to clearly identify the lot should be taken to be up to five per cent different (more or less) from 177 m2, namely that it would have an area of between 168.15 m2 and 185.85 m2. On this basis the reduction in the size of the balcony by 1 m2 as depicted on later plans including plans that became part of the second further statement did not mean that the Disclosure Statement contained information concerning the floor area of the proposed lot that became inaccurate.
In short, insofar as the description of the floor area served to clearly identify the lot, the floor area was to be between 168.15 m2 and 185.85 m2 and this information did not become inaccurate after the Disclosure Statement was given. On this basis, the reduction in the size of the balcony by 1 m2 did not give rise to an inaccuracy that the plaintiff was required to address in a rectification statement under s 22."
The leason to learn here is that most off-the-plan contracts have a clause that says that apartment sizes can vary. In this case, the purchaser could have ended up with 10sqm less than what they believed they were getting, and would still be required to settle.
See http://archive.sclqld.org.au/qjudgment/2009/QSC09-269.pdf
As previously reported on this blog, a number of off-the-plan purchasers at Mirvac's Tennyson Reach failed to settle, and are being sued by Mirvac. Mirvac is now selling these apartments by auction.
"A
very frenetic listing week has culminated with the official listing of
nine riverfront apartments (under instructions from Mirvac Queensland
where the buyers have not settled). These apartments are to be auctioned in a line on Saturday the 14th November at 12 noon. Our clear instructions are that these quality riverfront apartments WILL BE SOLD.
Elsewhere, buyer activity in the middle and upper ends of the market continues to increase as we move into one of the busiest sales times of the year.
Warm Regards,Dianne Bauer
Associate
JOHNSTON DIXON
Two apartments went to auction today at Mirvac's Tennyson Reach. Both were 3 bedroom, 2 bathroom apartment on level 3. They have river and mangrove views.
See Apt 4108 listing and Apt 3205 listing.
For both apartments, there were no bids. Passed in.
This does not bode well for Tennyson Reach. So far, there have been no resales, even though there are about 30 apartments listed for resale. In addition, from what I can determine, between 15 and 20 apartments failed to settle.
When compared with similar quality apartments located in inner city areas, I would say these apartments are worth less than a million, but I am not a valuer. I suspect that the owners (who paid more than $1.3M) will take a bath if they sell.
A warning against buying of the plan during a boom.
I pity the investors who purchased an apartment at Mirvac's Tennyson Reach. The returns are terrible. The quality and size of the apartments are great. There are magnificent river views from most apartments. But the location is pretty terrible. There is no neigbourhood. The tennis centre is very industrial.
As previously reported, Mirvac has sued at least 10 purchasers who did not settle. Valuations for some apartments came in $200,000 or more under contract price. It will be hard for an original buyer to resell without making a loss. There are about 30 apartments listed for resale at present.
As at mid July 2009, there were 23 apartments listed for rent by the onsite manager. There are over 40 rental listings on realestate.com.au. Rents for unfurnished apartments are:
- 2 bedrooms: $500 to $600 per week
- 3 bedrooms: most in the $700 to $790 per week range, although one is listed at $590 per week and another at $600 per week
Tennyson - 2 bedroom sold for $990,000 and rents for $500 per week
Parklands - 2 bedroom sold for $495,000 and rents for $450 per week
Tennyson - 3 bedroom sold for $1,400,000 and rents for $720 per week
Parklands - 3 bedroom sold for $700,000 and rents for $570 per week
The Tennyson apartments are double in price, but the rent is not.
From a Mirvac email:
"We have just been advised that commencing immediately the current prices have been reviewed offering substantial savings on most apartments. 3 Bedroom apartments now commence at $845,000."
- 3 bed 2 bath, with family room, end apartment and floor-thu, 230sqm in total, level 4, for sale at $960,000
- 2 bed, 2 bath, 190sqm total (so very large), floor-thu, level 6, for sale at $810,000
- 3 bed, 2 bath, with family room, floor-thu, 235sqm, level 4, for sale at $1,165,000
Queensland residential property analyst Bill Morris, author of the Midwood Queensland Investment Report, said there were almost no sales in new Port Douglas projects over the past quarter.
Units for sale in Port Douglas generally fetched more than $700,000 and anything in that price bracket in the state was struggling.
The strata market was highly volatile and speculative, he said. "It is overpriced and oversupplied," Mr Morris said. "It is a lovely place that does well in booms and badly in recessions."
See The Australian
Email from Juniper:
Sea Temple Resort & Spa – Port Douglas
Luxury 2 Bed 2 Bathroom Penthouse Apartment with Private Rooftop Jacuzzi & BBQ Pavilion
Was $895,000 Now $649,000 That’s a saving of $246,000!
Comes with:
- Large Master Bedroom with En Suite with Spa Bath
- Choice of Lagoon or Golf Course Views
- Massive Rooftop Terrace(120sqm) with Jacuzzi & BBQ
- Fully Remote Central Air-Conditioning
- Personal Lock-Up Garage
- Fully Furnished
- $30,000 a year leaseback for 2 Years
- 25% Discount off all Food & Beverage
- Body Corporate Levies Paid for 2 Years
- Fantastic discounts at Mirvac Hotels throughout Australia
Click Here to view the online video tour for this amazing Penthouse apartment.
Located in the heart of a rapidly expanding North Queensland tourist destination, Sea Temple Resort & Spa Port Douglas is a world-class facility catering for holidaymakers of all tastes.
Sea Temple Resort & Spa Port Douglas is situated right on the beachfront in Port Douglas and provides 136 apartments and beachfront Villas. At ground level the resort features include a fully equipped health spa, a spectacular lobby, restaurant and bar, set amongst the 3,000sqm resort lagoon pool with a pool bar. With the added advantage of being located between Four Mile beach and adjoining our renowned championship Links design18 hole golf course, Sea Temple Golf Club, Sea Temple Resort & Spa Port Douglas offers an irreplaceable lifestyle and investment opportunity.
Sea Temple Resort & Spa Port Douglas is one of the Juniper hot spots in Tropical North Queensland and appeals to astute investors wishing to add this vibrant and exotic location to their property portfolios.
Long-time Port Douglas real estate agent Tony McGrath said “in 23 years in the seaside resort town he had never seen such a discount before”.
Mirvac Sues: Mirvac Queensland has recently launched a number of lawsuits in the Supreme Court of Queensland. These lawsuits appear to seek performance of off-the-plan contracts for Tennyson Reach, where the buyer did not settle. Buyers that have been sued include McGann, MG Taylor Nominees, O'Hagan, De Pasquale, Holland, Crooks, Douyere, Thompson, Ibencastle Pty Ltd, Beioley, Campbell, Horne, and others. It would appear that Mirvac believes that the apartments that swiftly sold a few years ago off-the-plan are now worth less than the contract price? In the third stage of Tennyson Reach, about 70 apartments remain for sale in the Farringford Building. There are at least 12 apartments in stages one and two listed for resale. When I visited recently, the development seemed like a ghost town.
I visited the display apartment at Mirvac's Tennyson Reach apartment complex. The apartment was on the 6th floor of the Softstone building -- it is a 3 bedroom apartment -- a floor through apartment with the main bedroom and a balcony at the front and two bedrooms at the rear. The view from the main bedroom, with floor to ceiling glass, was absolutely fantastic. A great view up river towards Indooroopilly, and you can see the city in the other direction. The quality of the apartment was A1 plus. Plenty of room. The lighting was particularly clever. I loved the apartment and the view to the river. The view out the back was so-so. If the apartment was not so expensive (about $1.7M for the display apartment) and the location was not so remote, then I would definitely buy!
From The Australian:
"The collapse does not include the almost-complete $210 million Noosa Sanctuary hotel and residences that Resort Corp is developing, to which Mirvac's Quay West hotel chain has signed up as operator.
Mr Robinson said the Noosa project remained fully funded and said all apartment pre-sales there would be honoured."
"Among the states, hardest hit appears to be Queensland, where 4000 new apartments are going begging: 1000 on the Sunshine Coast, more than 700 in both Townsville and Cairns, and far more on the Gold Coast. It is believed many of them have fallen into the hands of the financiers, given that most developers make just 20 per cent profit on a project." At least 4000 new apartments are still unsold in Queensland and most of them are believed to have fallen into the hands of their financiers. Bankers are now asking what to do with the properties, and the problem has prompted property experts to run seminars on how to deal with hotel resorts and the unsold million-dollar beachfront apartments that many now control. Mortgagee sales remain prominent on the Gold Coast, where 1383 new high-rise apartments were for sale in the November quarter. Only 37 were sold in the three-month period. That compares with 965 for sale in the November 2007 quarter, when there were 142 new high-rise apartments sold.
My Groups
-
Great Southern Land. Updated: Nov 7, 2009
-
Brisbanites Updated: Oct 15, 2009
-
Real Estate Advisor Updated: Aug 2, 2009
Neighborhood
Explore friends, family, friends & family, or entire neighborhood.
