Calmer waters for WA's luxury Oceanique development as sales pick up
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Serious money is beginning to trickle back in the WA’s troubled prestige residential market, with Port Bouvard securing another two settlements on its Oceanique development.
Located on the waterfront at Dawesville, south of Perth, the latest settlement is for a $2.1 million apartment in the glamorous project. This brings the total number of sales to 27 units in the 66-unit twin-tower building, for a total of $65.7 million.
Despite being lauded with awards from the Master Builders association, the UDIA and the Royal Australian Institute of Architects WA Chapter, the project was released into a troubled market.
“Sales are slow but we are making them, which is good for these market conditions,” says Port Bouvard executive director Stephen Court.
Of the 27 sales, 19 relate to presales and eight are deals secured since December, when the company discounted some units by 40%.
The developer has targeted investors who specialise in buying display units and lease them back for its three display apartments in Oceanique.
“We are offering a 9% return for two years on these units, which are worth between $900,000 and $2 million,” Court says. “This is a tried-and-tested marketing method and a good opportunity for investors with their cash parked up to get into the market at low and even sub-market prices.”
Late last year the company started a savage price-slashing campaign to stimulate interest, and it brought several sales to the table and renewed interest.
Now prices are steady at 25% off original projections set in 2007. “We started marketing Oceanique in 2007 when the market was blasting along, so we were hit hard by the GFC,” Court says.
The company is pursuing some sales made off the plan through the Supreme Court.
About half of the 15 pre-sales are currently in mediation as part of the judicial process while the balance are in “sensible negotiations” with the developer. “Some people were ruined by the GFC and we are not interested in that type of business, but we will go all the way to settle deals that were done,” Court says says.
Next year Port Bouvard will start construction of a massive 3,080-home site and marina development at Point Grey in WA’s Peel region and has plans for a canal project in Esperance for 2014.
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