[COM] 176-186 Morphett Street | 59m | 18lvls | Residential

[Will]

I got an email from the real estate agent marketing the project, in which it states that 20 apartments have been sold within the first 4 weeks.

Another 6 apartments have been sold since this post.

Do you have anything to prove this ?

My information is that only about 20 have been sold at this stage.

One other issue with these apartments is that a lot of apartments don't
come with a car park.

http://www.realestate.com.au/property-a ... -110813347

In the above link it actually says "OVER 25 APARTMENTS SOLD", meaning that I am actually being pessimistic by saying 26. It could also be 27, 28, 29....

[ghs]

I hope this development goes ahead however one thing you have to realise is that
real estate agents are not always honest. I went to the sales office on the weekend
and according to the documentation I received from them only 19 have been sold.

Also according to one news article, development of this project was going to start in
May. This news article is posted in an earlier entry in this thread. I would say a start
date of early next year is most likely.

[Will]

I hope this development goes ahead however one thing you have to realise is that
real estate agents are not always honest. I went to the sales office on the weekend
and according to the documentation I received from them only 19 have been sold.

Also according to one news article development of this project was going to start in
May. This news article is posted in an earlier entry in this thread. I would say a start
date of early next year is most likely.

I realise that real-estate agents bend the truth. If you also realise this, then why are you so confident of the documentation saying that only 19 have been sold? Could that be a lie too?

In this situation, all we can do is report the information we find and accept it at face-value. I can't proove they have sold more than 25 apartments, however I figured some people would appreaciate an update on this project.

[ghs]

This development raises an interesting question which would be interesting to discuss.

What level of sales do developers /agents need in order to commence development of a project ?

I would guess that it would normally be about 50%.

On this development we see 25 of 157 apartments sold which equals 16 percent.

[Will]

Apparently 31 apartments have now been sold.

[Waewick]

This development raises an interesting question which would be interesting to discuss.

What level of sales do developers /agents need in order to commence development of a project ?

I would guess that it would normally be about 50%.

On this development we see 25 of 157 apartments sold which equals 16 percent.

It really comes down to a few things.

1. how is the developer financing it? If it is Bank debt then Banks at the moment are looking for 100% debt coverage (i.e $1 of pre seales for every $1 of lending) remembering pre-sales will be reviewed - too many to 1 person or many from o/s will be questioned.

2. How much can the developer afford to spend on holding costs? within 12 months of completion you have the government and it's various levels knocking on your door asking for their statutory charges - things like Land tax are going to kill any developer who builds an apartment but does have the majority sold - this is something the ACC could address (or the state government) if they want to encourage developments in the CBD with a higher risk profile.

2.a)To get around the issue of non-selling you engage a serviced apartment model, gets you income from day 1 and helps service the loan/pay statutory - the problem then is the prospective buyers get turned off - who wants to live in a hotel?

3. what is the market acceptance of your product - sure you achieve 100% debt coverage and you can afford to hold the apartments - the issue comes in that the apartments you haven't pre-sold don't have market acceptance - i.e you might sell all the 2 bedroom apartments to get debt coverage but none of the 3 bedroom ones - your profit lies in the 3 bedroom ones, but you'll never crystallise it because the market doesn't exist.

they are just a small number of the issues going into a development - at the moment the biggest problem with apartments in Adelaide is the complete lack of a market - just look at the discounting going on a certain developments (which killed the market in the first place due to an inferior product)

[ghs]

34 apartments sold now according to an email I received yesterday.

[believesinadsy]

Is there any update on this one getting up next year..

[ghs]

I'll try to get an update on apartment sales over the next couple of weeks.

I think the project should start about Feb / March next year and then 18
months to develop.

[believesinadsy]

cheers

[ghs]

I finally went in to the sales office today, apparently there is going to be a development launch
around mid - February where the Premier and a few other important will be present. At this launch
all the paperwork should be signed off and demolition / construction should start soon afterwards.

Just one note. This advice was given to me by a sales person - it could be bullshit.

I saw the apartment availability and it looks like just under half have been sold.

[AdelaideGo]

I am just now been told that they have extended their lease with their existing car park tenant for an extra 1 year. Demolition ...... not in the foreseeable future.

[Uncle Monty]

Sticker on the window of the sales office states that 40 apartments have now been sold.

[ghs]

40 sold out of 157.

So there's still a long way to go.

[Shahkar]

Nice surprise.

$75 million Vision on Morphett project launched
Cameron England
February 18, 2013 8:33AM

THE China-Australia Property Development Group's connection to Adelaide started off as personal, and has developed into a prominent business.

Director Hanson Lin came to Adelaide as a student in 2005, studying at the University of South Australia.

Mr Lin said the family had friends in Adelaide, who had said good things about the city, which inspired his family to come and invest here.

The first property the family bought was the site at 176-186 Morphett St, which is soon to become Vision on Morphett.

Vision is a $75 million, 15-storey development, incorporating a mix of penthouses, studio and two and three bedroom apartments, and affordable housing supported by the National Rental Affordability Scheme.

Vision recently passed $18 million in pre-sales, or 46 of the 157 apartments, which allowed the development to proceed.

Demolition will start next month and construction in April, with the goal to be finished by the end of 2014. Mr Lin said his father had a background in the steel business, but had moved in recent years to property development and investment.

"We had some friends who emigrated here before us so we had a connection here," he said.

"We came here and started looking whether there were any opportunities. Initially we weren't planning to do much here but eventually we ended up with a lot."

Mr Lin said the family saw Sydney and Melbourne markets as more crowded and Adelaide gave more opportunities.

The family received their permanent residency visas in 2007 and have been working on projects such as Vision since then.

Mr Lin said it was great to be involved in bringing more people into the city.

"We love the fact we are creating a place for people to live and enjoy the spoils of what this great city has to offer, while further adding to its growing vibrancy," he said.

"Vision on Morphett is located in a prime position in the heart of the booming north-west city precinct, within easy reach of universities and premier shopping, dining and cultural precincts such as Waymouth and Gouger streets, Chinatown and the iconic Central Markets."

Mr Lin will live in the building, in one of the penthouse apartments.

He said the State Government's stamp duty concessions, introduced last year for new apartment dwellings in the CBD, were a big help.

CAPDG Chairman, Zhicai Wu, who is based in China, says the Vision on Morphett project was the first of what he hoped would be many projects in the state.

"It's an exciting time in Adelaide with a healthy level of development either under way or in the pipeline," he said.

"We're encouraged by the State and Local governments' commitment."