Investors in first stage of Manly West development may take rent hit

With the final approval received on Balé Vue Residences in Manly West, construction on the first of stage is more than 90% complete, however investors who purchase within Stage One may need to provide tenants a temporary rental reduction as construction occurs.

Stage one will be settled and ready to move in by December 2013, while stage three currently has 15 units remaining and will be completed by 2015.

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Angela Olsen, director of Real Property Management Australia, was approached for an appraisal in September 2012.  She put the rent at between $370 and $415 per week.

"As lots one to six will be the first constructed it is anticipated that prospective tenants may suffer some noise/disruption from the ongoing construction. With this in mind, it is suggested that a rent free period be offered or that rent be advertised on the lower end of the appraisal in the first instance. These rents will likely increase as the development completes," Olsen's appraisal notes.

A more recent appraisal, from Ray White Manly department manager rentals, Kathie Scott, put the rent at between $480 to $520.

"We feel that you could advertise the units for $520 per week to see what response there is," Scott noted in the appraisal dated 24th May 2013.

This change may be reflective of the market in Queensland and changes made to the project post-2012 appraisal, including the addition of a pool and onsite manager.

Development updates and construction images are available online.

Within the first two stages, there are two townhouses unsold. There are 35 properties over the three stages, with stage one containing six units, stage two containing seven, and stage three containing 22.

Price ranges and details include:

Stage one – $399,000 - $430,000 (248 – 315 square metres)

Stage Two – $399,000 - $430,000 (174 – 314 square metres)

Stage Three - $429,000 - $465,000 (193 – 287 square metres)

Type A – Used in all Stage one, slightly larger than Type B but mainly just the internal orientation. Three-bedroom, 2.5 bathroom and one lock up garage. Kitchen overlooks living space/lounge and only one upstairs balcony.

 Type B – three-bedroom, 2.5 bathroom and one lock up garage. Upstairs has two balconies.

Type C - Lowset (on one level) – three-bedrooms plus study. Only three of this kind in the complex

The development is surrounded by detached houses, and the quick sales are a sign of growing competition among tenants and buyers for affordable, low maintenance properties in an upscale area, said Acuity Invest managing director, Michael Wilkins. However, the majority of buyers are owner occupiers looking to move east and downsize.

“Balé Vue Residences will deliver high quality, low maintenance homes to a market that is crying out for this type of property,” Wilkins said.

“The Balinese-inspired design really complements the surrounding bayside lifestyle, which is popular among couples who want the lifestyle without having to sacrifice Brisbane CBD proximity.”

The development is located near Port Connect, a $385 million upgrade to the Port of Brisbane Motorway and prestigious schools, and is 20 minutes from Brisbane CBD.

Construction on stage two will be completed by September 2014.

For more information on the properties, including site plans, see here.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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