Field Report by Simon Cohen – Primary Residence at Bellevue Hill

Property Type: Primary Residence, Free-Standing House.
Date of Acquisition: March, 2014.
Address: Suttie Rd, Bellevue Hill, NSW, 2030.
Acquisition Price: AUD $2,710,000
Listing Status: On-Market
Ownership Structure: Individual

 

Macroeconomic Concerns

Industry Flaws

After a distasteful first experience with a buyer’s agent that had been engaged external to CohenHandler for over a year, the client was exhausted with the purchasing process by a lack of presented valued opportunities. Of course the 2013 bull market provided challenges but CohenHandler’s leadership as a residential real estate influencer allows combinations of:

  • first-mover advantage,
  • first grass-roots analysis at market;
  • and market leading fiduciary care of client interests.

The size of Bellevue Hill is approximately 2 square kilometres. It has 6 parks covering nearly 9% of total area. The population of Bellevue Hill in 2006 was 9,831 people. By 2011 the population was 10,763 showing a population growth of 9% in the area during that time.

The predominant age group in Bellevue Hill is 0-14 years. Households in Bellevue Hill are primarily couples with children and are likely to be repaying over $4,000 per month on mortgage repayments.

In general, people in Bellevue Hill work in a Professional occupation. In 2006, 63.5% of the homes in Bellevue Hill were owner-occupied compared with 63.2% in 2011.

Source: RP Data, March 2014.

Stock Specific Mandate

The ideal client buy would be a 4 bedroom family home in Woollahra and/or Bellevue Hill with a budget of up to $3.2million. One partner of the client duo was a designer, they wanted a home they could add hands-on construction value to and be creative within a luxurious, blue-ribbon location.

In partnership with Simon Cohen and Steven Langman, CohenHandler were able to show the family numerous properties within the area and surrounding areas of interest. The properties short-listed and inspected matched the client family’s criteria and requirements. However, the ‘toppy’ market swelling at end 2013 would often hit the ceiling of our mandate – ‘non-successes’ may still be expected.

 

12 Month Median House Prices (Bellevue Hill) House Sales Per Annum (Bellevue Hill)
 12 month  house sale per
Source: RP Data, March 2014. Source: RP Data, March 2014.

 

Median House Price Trends (Bellevue Hill v Woollahra Municipality) Household Structure (Bellevue Hill)
 MEdian House Price  House hold str
Source: APM, March 2014. Source: RP Data, March 2014.

 

Capital Growth in Median House Prices (Bellevue Hill) Household Occupancy (Bellevue Hill)
 Capital Growth in Median House Prices (Bellevue Hill  Household Occupancy (Bellevue Hill)
Source: RP Data, March 2014. Source: RP Data, March 2014.

 

Dwelling Type (Bellevue Hill) Household Weekly Income (Bellevue Hill)
 Dwellin Type  Household weekly
Source: Residex, March 2014. Source: Residex, March 2014.

 

Occupation (Bellevue Hill) Transport to Work (Bellevue Hill)
 occupation  Transport
Source: APM, March 2014. Source: APM, March 2014.

Market Navigation & Negotiation  

The client was shown two properties in Bellevue Hill, which were both going to auction on the same night. The dialogue and due diligence to determine preference was strongly pursued to the 11th auction hour. The choice to attend the auction at 25 Fairweather Rd, Bellevue Hill brought a non-result at $3.5million (above-ceil), the unfortunate streak had continued.

The second property had now become the focus. Prior to the Suttie Rd auction of Bellevue Hill, CohenHandler had uncovered that an earlier campaign had surmounted to non-result by inability to breach vendor private treaty reserve. The title had been quoted in the high $2-3 million range. Under a CohenHandler distressed seller strategy, the property could be secured at $2.75 million if it was signed that night. With numerous counter offers exchanged and valued dialogue, the client and vendor penned late that night at $2.71 million.

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