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There'll be lots of activity in this little street as Gurner sold out the 140 apartments in its flatiron building aka Albert Place, just to the left of the park in your shot redden, in about a week. :)

 

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There'll be lots of activity in this little street as Gurner sold out the 140 apartments in its flatiron building aka Albert Place, just to the left of the park in your shot redden, in about a week. :)

I've been keeping my eye on that site, waiting for signs of demo. It's going to be an upmarket little enclave, as I'm sure the Mayfair will be pitching to the upper end to justify the costs of demolishing the police tower. The other site I drive past regularly, waiting for demo, is St Boulevard, corner of High and STK road. That's had very strong sales too.
 

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The Victorian Police have already moved out of the old St Kilda Rd, Police complex, into the new City West Police complex, on the corner of Spencer and LaTrobe Street Melbourne.

They have not yet vacated from the World Trade Centre, they will when the new one at 311 Spencer Street is completed.
 

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Just reposting the Fin. Review report posted in the Aurora thread by skyhooks, as it refers to Mayfair.

Malaysia's UEM Sunrise prepares for 10pc default rate on apartments
By Nick Lenaghan
Updated 08 Jan 2019 — 5:22 PM,
first published at 18 Dec 2018 — 11:00 PM


One of the biggest apartment developers in Melbourne – Malaysia's UEM Sunrise – is prepared for as much as a 10 per cent default rate on the settlement of apartments in its $330 million CBD tower, signalling just how difficult the market is about to get following tighter credit conditions and falling prices.
Its a big call by the developer given listed giants such as Lendlease and Mirvac only expect default rates of about 1 per cent.
Home prices have dropped 7 per cent in Melbourne in the last year and new apartments, which fell up to 20 per cent in value upon settlement in 2018, are expected to come under further price pressure this year as more newly completed projects come up for settlement according to BIS Oxford Economics.

UEM Sunrise managing director Anwar Syahrin Abdul Ajib: "Seventy per cent of our [sales] came from overseas investors." Wayne Taylor
Apartments were being handed over to their new owners just before Christmas in the first stage of UEM's 446-unit Conservatory project at 9-23 MacKenzie Street at the northern end of the CBD, looking out over Carlton Gardens and the Royal Exhibition Building
"We want to settle 100 per cent of course but thinking of the current situation in the market, if we can get more than 90 per cent we will be more than happy," managing director Anwar Syahrin Abdul Ajib told The Australian Financial Review.


In all, 97 per cent of the apartments have already sold off the plan, with about 70 per cent of those selling to offshore buyers. Prices ranged from $485,000 for a one-bed apartment to $875,00 for a two-bed, two-bath unit.
On a per square metre rate, apartments in Conservatory sold at about $11,500.
To improve the settlement process, some Conservatory buyers are being given more time, while UEM Sunrise has reached out to various lenders and shared information with its buyers. In some cases, secondary buyers have been found to take over an apartment.
But the Malaysian developer is being careful to preserve value and avoid discounting remaining apartments.

'If we can get more than 90 per cent [settlements] we will be more than happy': UEM Sunrise managing director Anwar Syahrin Abdul Ajib. Supplied
"We'd rather protect the value of the property and do other things instead, for example, fully furnish apartments. Things like that. We don't want to depress the price," Mr Anwar said.
Conservatory is one of three projects being developed in Melbourne by UEM Sunrise, after the Malaysian swooped on two sites in the CBD and one in St Kilda Road in quick succession.


Publicly listed in Malaysia, the company is the development arm of the UEM Group, which is wholly-owned by Khazanah, a Malaysian government investment fund.
Settlement is also under way in the initial stages for the much larger Aurora project, a $770 million skyscraper opposite Melbourne Central. It has 941 apartments and a component of 252 serviced apartments, which were bought by Singapore's Ascendas Hospitality Trust for $120 million.

Mr Anwar says a 10 per cent default rate would be manageable. Wayne Taylor
Mr Anwar is hopeful of achieving a 99 per cent settlement rate overall at Aurora, which is due to top out in the first quarter next year. The average selling price for apartments in the project is $10,500 per square metre.
For its third project UEM Sunrise took over the Victoria Police complex on St Kilda Road and engaged architect Zaha Hadid to design a luxury apartment complex.
Mayfair comprises 158 residences of one- to five-bedrooms, ranging in size from 70 square metres to 556 square metres. Prices start at $823,000. The penthouses are listed for up to $13.1 million.
With around 50 per cent sold so far, the developer hopes to begin construction by the third quarter next year.
"We'd like to get to 60 per cent," Mr Anwar said.

Cautious view
Aurora is funded by a club of lenders, including Westpac along with Asian banks OCBC and DBS. Conservatory and Mayfair are funded from Malaysia by Maybank.
Mr Anwar is taking a more cautious view on the local housing market, with many buyers caught out in tightening credit conditions. Foreign buyers have also been hit by increased stamp duty in Victoria and other states.
"The environment is certainly not as before," he said. "In the long-term we remain positive on the Australian market, Melbourne and Sydney. It's just that in the current environment we may need to perhaps weather it for the time being.
"The property boom has been somewhat driven by overseas investors coming in, so that helped in terms moving a lot of our product. Seventy per cent of our [sales] came from overseas investors."
There may be an upside though, especially for large government-backed developers such as UEM Sunrise as the credit squeeze creates potentially a buyer's market, according to Mr Anwar.
​"We don't mind buying parcels for future development if the price is right. We can afford to hold them. We're going to get proceeds and profits coming from settlement in these two projects. So there will be some funds available that we can potentially use for land-banking purposes.
"It's not going to be to the scale of what we've done before. But we'll certainly use some of our profits from this to invest in Melbourne if the price is attractive."
 

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Reliable sources tell me that the new station underneath is causing great headaches for developments in and around the site including this one.
 

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Talking to someone at Hickory last week. Feeling is this project won’t get going. Sales are struggling, the metro tunnel is causing problems with the construction methodology and the demo cost is way beyond any budget forecast.
 

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Talking to someone at Hickory last week. Feeling is this project won’t get going. Sales are struggling, the metro tunnel is causing problems with the construction methodology and the demo cost is way beyond any budget forecast.
Demo of that 1980's building would cost a bomb wouldn't it?
 

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Talking to someone at Hickory last week. Feeling is this project won’t get going. Sales are struggling, the metro tunnel is causing problems with the construction methodology and the demo cost is way beyond any budget forecast.
I'm puzzled how Hickory would come up with this. They have nothing to do with this development.
 
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