April 8th 2009
“Over building” takes Magnetic prices down
Magnetic Island's unit real estate market suffered a drop of approximately 43% from December 2007 valuation prices if last weekend's auction sale of three out of ten Blue on Blue units is any guide.
About 120 people attended the auction held by Ferry real estate on Saturday morning at Peppers Restaurant. Of the ten for auction the three units which sold included:
* Unit 223 a “dual key” which can be divided into two separate adjoining apartments with a total internal floor space of 87 square metres plus 19 square metres of balcony. In December 2007 the unit was valued at $535,000 but sold under the hammer on Saturday for $325,000
* Unit 832 a two bedroom, 89 square metre apartment with a 24 square metre balcony was valued in December 2007 at $725,000 but sold on Saturday for $405,000
* Unit 931 is a first floor, two bedroom apartment with an internal floorspace of 110 square metres with a balcony of 32 metres squared. In December 2007 its valuation was $745,000 but on Saturday it went for $420,000.
Other units were passed in without any bids and one, formerlly valued at $1.05M, was passed in at $560,000 while another was passed in after an auctioneer's bid of $525,000.
Magnetic Times sought comment from, Blue on Blue's developer, Eureka Funds Management, but their spokesperson declined the offer.
While many see the poor sales as a reflection of the global economic crisis, last weekend the Australian Financial Review reported: “PRD Nationwide Townsville director Bruce Goddard says there is no doubt that overbuilding has affected Magnetic Island,” and, “'Two affected projects have been Pepper's Blue on Blue and Meridian's One Bright Point.
'The largest amount of excess stock is at Blue on Blue but there's about 30 units at One Bright Point.'”
On January 3 this year another auction of Island properties was held by Smith and Elliot Real Estate. It included nine properties ranging from units at Nelly Bay harbour, harbourside blocks with marina pontoons, residential houses and blocks of land. At the auction no bids were offered for any of the properties and, since then, according to that agent's website, all bar one, which is “under offer”, are still for sale.
Story and file photo: George Hirst
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