Gap townhouses rise in value as units fall

By ERWIN CHLANDA
 
Townhouses at South Edge, just south of The Gap, are bucking the real estate trend: They are rising in value while unit prices around town have dropped around 20%, according to one real estate agent.
 
Half of these 40 town houses are heavily government subsidised under the Real Housing for Growth scheme where the NT Government guarantees market rent for 10 years.
 
Says Ian Drummond, of Australian Property Projects (APP) which is developing the complex: “When the townhouses first hit the market about 10 months ago the prices were pitched at $335k.
 
“By the end of the sales program prices had climbed to a high of $368k and the one remaining townhouse is expected to sell well above that. This is actual sales evidence of a 10% increase not a 20% decrease.
 
“Maybe the quality of the whole residential estate has something to do with it. I expect the land prices to increase from the initial setting over a relatively short time also,” says Mr Drummond (at left).
 
Of the 20 non-subsidised townhouses, 18 have been sold to local residents, one to a Queensland investor and one is left to sell.
 
All of these dwellings qualify for the first home buyer grant: While not being new buildings, the renovation from the former motel is comprehensive enough for the $26,000 to be allowed.
 
Meanwhile next-door, also being developed by APP, 16 of 35 new residential blocks have been sold in the first two weeks of sales, according to Mr Drummond. 13 went to Alice residents, including seven to Alice builders and two to first home buyers.
 
This is the third of the APP’s “Edge” developments following the successful “City Edge” (formerly Cawood Court) and “North Edge” (formerly Red Centre Resort).
 
UPDATE March 22, 12:50pm
 
Australian Property Projects has just had an offer of $380K on the last apartment available. This demonstrates an increase from $335k 10 months ago to $380K or an increase of 13.4%.