Clovelly catches two off-the-plan buyers as caution increases

A second apartment at The Cove Clovelly boutique apartment project in Sydney’s eastern suburbs has been sold off the plan.

The apartment, a three-bedroom unit located on the ground floor measuring 116 square metres, has been bought for $2.2 million, equating to about $19,000 per square metre. The buyer is an eastern suburbs-based owner-occupier.

This follows an earlier sale of a second-floor 120-square-metre apartment for $2.65 million, equating to around $22,000 per square metre.

Co-agent David Poppleton from RPM Group says there is an undisclosed offer on the 248-square-metre penthouse.

The Cove Clovelly, situated on Donnellan Circuit overlooking Clovelly Beach in Sydney’s eastern shore, features four apartments and two penthouses. Construction has commenced and it is due to be completed in 12 months.

“We expect to sell another two apartments while under construction and the other penthouse on completion,” Poppleton says.

Although there is strong interest in the development, Poppleton says buyers are more cautious.

“People are being very discerning. If you don’t have the right products they will wait,” he says.

The development is being marketed by Poppleton and Peter Coulton of Savills Residential Projects.

It has generated more than 450 registered expressions of interest since being launched in February 2011.

Coulton says interest has mainly been local, but includes potential buyers from Hong Kong and Singapore.

Coulton says the Clovelly market is quite strong because nothing else is being built in the suburb or in the surrounding suburbs of Bronte or Tamarama.

“There is quite a bit of development in Coogee,” he says.

Interest in Clovelly is not reflected in the wider Sydney market, with listed developer Becton reporting that off-the-plan buying for its Divercity apartments has levelled off in 2011.

Becton has submitted plans for the second stage of its Divercity project on Bourke Street in Waterloo featuring 359 apartments.

 “[Buyer pre-sales] are certainly not as strong as they were in 2011,” Becton CEO Matthew Chun has told the Australian Financial Review.

“There is generally more cautious behaviour from the consumer due to natural disasters and continued economic shocks around the world.”

The Cove Clovelly is been developed by Iris Capital and designed by Squillace Nicholas Architects.

The interiors use raw timber and natural stone features to present a modern interpretation of luxury beachside living.

A two-bedroom, two-bathroom apartment in the development is currently being marketed at $2.155 million by Peter Coulton and David Poppleton.