Question about Kilara property house price in the north shore area??

[happyland]

Last month, I saw a property in Killara at Koala Ave for 1100 square metres flat land that was sold for $1.71M. At first, I thought it was a brand new house but surprisingly, later I realised the house is actually old style and not renovated at all. Sounds crazy huh? So basically the property was sold just the land value. I am assuming the buyer purchased it to redevelopment.

My question is....provided you know this area well, is this price oversold considering this is just the block of land and not selling a newly renovated house?? Or this price is just right since Killara is a very high demand area or something. I mean for that price, I could already buy a brand new house around that area, no?

 

[BV]

Sometimes people pay too much because they can
Did it sell at auction?

 

[happyland]

Sometimes people pay too much because they can
Did it sell at auction?

You mean the buyer may not even know they overpaid the price or get ripped off?? I don't know because to me or as in general, it is really a high amount so that is why I asked for those who knows about the area well whether you think it is really high for a block of land

And no, it was sold as a private treaty

 

[BV]

No I meant that that person wanted to have it, he could afford it and paid the asking price.

It's a big block and maybe he wants to develop it and build several million $+ units or to build his dream home

 

[Red Car]

Do you mean Koola Ave Killara? From memory that wont be a unit development up there. Units are only zoned around the Pacific Highway and town Centres in Ku-Ring-Gai. It is possible it could be subdivided I guess. Still that is not an unusual price around there, especially for a large block. I have seen older properies on much smaller blocks go for more. There are not really any more land in this area either so prices will reflect this. It is an expensive area.

 

[asdf]

Welcome to the northshore. Median price on Arnold St will be in the $3 mark. Same again on Roseville Ave and you dont even get water views for these old rising damp and termite surrounding federation homes.

 

[twodogs]

You mean the buyer may not even know they overpaid the price or get ripped off?? I don't know because to me or as in general, it is really a high amount so that is why I asked for those who knows about the area well whether you think it is really high for a block of land

And no, it was sold as a private treaty

I live in East Killara and know that site, 72 Koola Ave. Level land is worth much more than the steep and rocky blocks like the one we live on. And land value is what that sale was about. Even so $1.7m is high for Koola Ave, but it would have great views north and a 2 story house may get a city view. In the last few weeks there have been several sales most being sold prior to auction so it appears area is playing catchup from a few years of resting.

Give that site a year of two and the size of the house that gets build will make the property worth at least $2.5-$3mm, which is the going price for some of the huge houses in that road, and they are about 15 years older.

Down the far end of Koola Ave a 4 bed 60's house on a cliff sold for $965ish, that was cheap. And about 5 houses up the road from 72 Koola, an incomplete mansion that needed $200k plus to complete sold for $1.8ish about 12 months ago. New owners have done the work and are sitting on a nice profit.

However, I can't see the area booming anytime soon, just catching up.

 

[happyland]

I live in East Killara and know that site, 72 Koola Ave. Level land is worth much more than the steep and rocky blocks like the one we live on. And land value is what that sale was about. Even so $1.7m is high for Koola Ave, but it would have great views north and a 2 story house may get a city view. In the last few weeks there have been several sales most being sold prior to auction so it appears area is playing catchup from a few years of resting.

Give that site a year of two and the size of the house that gets build will make the property worth at least $2.5-$3mm, which is the going price for some of the huge houses in that road, and they are about 15 years older.

Down the far end of Koola Ave a 4 bed 60's house on a cliff sold for $965ish, that was cheap. And about 5 houses up the road from 72 Koola, an incomplete mansion that needed $200k plus to complete sold for $1.8ish about 12 months ago. New owners have done the work and are sitting on a nice profit.

However, I can't see the area booming anytime soon, just catching up.

Yeah I see what you mean. But one thing I just noticed that is very surprisingly. I checked the next door 74 KoolaAve, given the size of the land is almost the same as 72 and is a new 2 storey house, it was sold last year for like $1.4ish million which is much lower than the 1.7 millioon despite it was sold ONLY the land value and \not a brand new development house. I guess that vendor must be happy that he purchased for a low price, no? Because if 72 could sell for 1.7M just for t he land value, then like you said, he could sell it for a double profit up to 3 million, no?

 

[marg4000]

Sometimes vacant land goes for a high price because the purchaser wants to build a particular house design.

For the same reason, sometimes unrenovated properties in original condition sell for a higher price than a completely renovated property.
Marg

 

[Jacque]

Yeah I see what you mean. But one thing I just noticed that is very surprisingly. I checked the next door 74 KoolaAve, given the size of the land is almost the same as 72 and is a new 2 storey house, it was sold last year for like $1.4ish million which is much lower than the 1.7 millioon despite it was sold ONLY the land value and \not a brand new development house. I guess that vendor must be happy that he purchased for a low price, no? Because if 72 could sell for 1.7M just for t he land value, then like you said, he could sell it for a double profit up to 3 million, no?

Closer to $1.5 actually, with a sale price of $1.485m. Also is on slightly smaller land (1081sqm compared to no. 72's 1132sqm) - not that this would make an enormous difference. It's more about the usability of the land, especially in this part of the North Shore. Some blocks can be huge but backing off into bush or steep unusable slopes.

What you need to remember is that 12 mths ago the Sydney market was a vastly different place. Skyrocketing interest rates were the cause of many a poorer sale esp between July-Dec last year. Given that no. 74 sold in Aug 08 it's not surprising they took less than initially anticipated. The market wasn't the best for sellers at this time. Today it's a different story.

I've also found in this area that particular cultures will pay a premium to get into their suburb of choice, especially when that street is in a particular school catchment area (think Killara High, for example). Also consider the very limited stock right now in many preferred suburbs and you have a classic case of a high demand/limited supply situation.

I like Killara and the surrounding Upper NS suburbs- leafy, green, beautiful streets and great facilities. But dvpt is coming to Ku-ring-gai, and in force... time will tell when many older homes near the stations begin to disappear (as they already are) and be replaced by high rises.