13 November 2016

The Block 2016: unchartered territory as Fishermans Bend apartments go to auction

View original article on Domain website

The Block apartment auctions in the-once industrial tract of Port Melbourne are set to test the market under the red hot glare of cameras in the city’s newest residential area.

Some potential buyers have expressed caution ahead of the televised auctions of the Fishermans Bend residences, which will air on Sunday night.

For an urban legacy project of the previous planning minister Matthew Guy, it has unexpectedly come down to a reality TV show to take the temperature of an emerging housing market, for the first time.

That element of the unknown adds to the tension of the pressure-cooker auctions, which are staged back-to-back among a select pool of registered prospective buyers and their representatives.

Experts are confident they have potential owners, with a vision for what Fishermans Bend will be, for the five apartments at 164 Ingles Street.

The heritage properties are valued at between $1.8 million and $2.2 million, according to buyers’ advocate Greville Pabst of WBP Property Group.

But there are few comparable sales in the area. Most residences along Ingles Street are old terraces, on the South Melbourne side, or warehouses and factories, on the Docklands edge.

The Block apartments, at more than 200 square metres each, are larger than many freestanding houses in the suburb.

The once derelict, graffiti-ravaged 1920s former soap factory was renovated into high-end pads, with designer furniture and flash fit outs, over three months of filming and with tight heritage controls.

The apartments — four three-bedroom and one four-bedroom — went under the hammer on Saturday for the final episode, which will air on Channel Nine at 7pm.

The auctions were filmed on site under strict confidentiality. Only the teams, their agents and bidders know the result, which fans will find out tonight.

Fishermans Bend had been rezoned and is on the cusp of sweeping urban renewal. An ambitious and at times controversial regeneration blueprint by the former state government, and the largest of its kind in Australia, Fishermans Bend will eventually be home to 80,000 people, with 60,000 jobs in education, technology and design.

Port Phillip mayor Bernadene Voss told Domain last month that 7000 apartments have so far been approved for the precinct.

Developer David Joachim, director of firm Third Street, which is behind the P.M apartments at 320 Plummer Street in Fishermans Bend, described the venture as “one of the most important regeneration projects of our generation”.

The P.M apartments launch on the market in 2017, and are aimed at owner-occupiers.

“The early provision of transport and infrastructure is needed to support the population growth at Fishermans Bend, as well as access to schools, well thought-out public spaces, medical facilities and entertainment options,” Mr Joachim said.

“Fishermans Bend needs to have cohesive design where all stakeholders work together to achieve the best outcome for the community and for greater Melbourne.

“As an industry, we are creating a millennium development for the people of the future driven by technology, natural amenity, an urban lifestyle, and connectivity to greater Melbourne.

“The government’s acquisition of the GM (General Motors) site is further proof that this area will be heavily invested in and turned into something incredible. If we get this right, it transforms Melbourne into an international city.”

Hocking Stuart agent David Wood, who is managing the campaign for Geelong mates Ben Toyne and Andy Sunderland, said buyers have needed to appreciate that The Block is in an emerging pocket of Melbourne.

“If buyers are taking at a long-term view, they know the gaps will be filled in between the CBD and around there, and with it will come infrastructure, like parks, schools, cafes and shopping,” Mr Wood said.

“People who have a vision for what it will look like in 10 years time will be rewarded.”

Mr Wood, who has sold apartments on several seasons of The Block, said the show’s properties were favoured by investors for substantial tax windfalls.

BMT Quantity Suveyors estimate that more than $2.5 million of depreciation is claimable after 11-plus years of owning Ben and Andy’s apartment.

Greg Hocking Simon Gowling, who is in charge of Newcastle couple Kim and Chris Elliott’s apartment, said there had been interest from would-be buyers outside the realm of Port Melbourne and the bayside region.

“They are really attractive to investors, and downsizers looking to buy something on one level,” Mr Gowling said.

“There has been some cautiousness about the area. Some people are looking at it thinking it is not as central as other Blocks have been, in that sense it is uncharted territory, but I think given what is happening with Fishermans Bend and the opportunity in terms of what the area is becoming, and they see that once you talk to them.

“If it wasn’t a TV series, another developer would have carved these up into much smaller apartments, so from that perspective they are very unique.”

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