Section 2: Analysis and Discussion
Legal Issues
The subject property shall comply with the following encumbrances: Urban Renewal Authority (10248894) on the basis of the details contained in the title and zoning resources & heritage controls.
The property is zoned in R residence and the only encumbrance is retained by the Commonwealth Bank of Australia (11576741) which would be paid on transfer of title to the property would be limited to selling the property. The land will not be built because of the 9 and the encumbrance by the Urban Renewal Authority (Real Estate in SA. 2020).
Location and Neighbourhood Issues
King William Street crossing the CBD and the heart of Adelaide is a part of a major arterial road that goes north of North and south of South Terrace, as King William Road. King William Street is the largest main street in all of Australia’s capital cities at approximately 40 meters (130 ft). It was named after King William IV in 1837 and historically is considered one of the highways of Adelaide, owing to its emphasis on businesses, businesses, and other prominent establishments. The tram line Glenelg passes through the city center in the center of the route.
It is applied to the continuous stretch of the route, which commences in the inner south suburbs and ends in North Adelaide, by the name King William. It is designated “King William Lane” where it runs through the Adelaide City Center from South Terrace to North Terrace; otherwise, it is called “King William Road.” King William Streets has a high number of non-religious individuals (30.6%), followed by people of the Catholic faith (20.3%), 7.8% have no religion and 6.9% have not been identified by Islam and the Anglican faith. The average weekly income of the population is $1.265. The average individual income, however, is $617 a week.
King William Streets will be ideal for young professionals, students, families and retirees looking for less maintenance than anything. With CBD in the train network, it is suitable for white-collar staff employed in the CBD or students studying at the University of Southern Australia, is located a short journey to Adelaide Airport. King William Streets is also perfect for families of pre-school children and high-school parents to take children to ritual across the method of education without having to leave the outlying suburbs and is more appropriate for children with quiet parks and children’s playgrounds. King William Street will also be suitable for elderly people who would like to decrease in size or get closer to services and have the majority of King William Street properties with limited planting and care (Condition of the property. 2020).
Land, Building and Site Features
The sales capacity of the subject property can be influenced by both positive and negative factors. The property consists of three main rooms of which two are bedrooms, one is a dining area and the other is a living space. The property is situated in a flat rectangular block, of which 100 metres are sq.m. There is just one bathroom and there is good space in the bathroom. Any buyers can shun the property by having only one bathroom and two bedrooms.
The property offers power supply connections to gas/electricity, works with both freshwater and grey water toilets and outdoor toilets, solar hot water and an integrated irrigation system make home more environmentally friendly and help reduce production.
There is no lawn or garden on the subject property and it could be stated as a drawback. However, the subject property is located near the main road and near supermarkets. The subject property would attract college students and employees and it allows them to connect with the transport service very quickly. The property is quite close to the main road and this might put off many people mainly because of the traffic noise. The subject property is quite attractive for students and employees mainly because of the limited bedrooms and transportation.
Overall Marketability
The marketability of the subject property is quite impressive mainly because it is located next to the main road and supermarket. People value time and the subject property saves a lot of time as all of the requirements and necessities are located close by such as the railway station, airport, bus stand and many more. There are a few children playgrounds and parks located near the subject property and it would attract potential familiar buyers. The subject property is located in the heart of Adelaide and considered to be a posh location. The demand for the properties in King William Street is quite high. The subject property is equipped with the required furniture and equipment. The architecture of the subject property is modern.
Marketing Opportunity
APPRAISAL OF SUBJECT PROPERTY
| Address | Price |
| Table 1: Sold Properties | Sold Price |
| 181/65 king William st | $280,000 |
| 166 Wakefield Street, Adelaide | $665,000 |
| B11/188 Carrington Street, Adelaide | $380,000 |
| 25B/188 Carrington Street, Adelaide | $520,000 |
| 408/36 Hurtle Square, Adelaide | $500,000 |
| Table 2: Listed Properties | Asking Price |
| 418/185 Morphett Street, Adelaide, SA 5000 | $329,000-$360,000 |
| 602/160 Grote Street, Adelaide, SA 5000 | $495,000 – $525,000 |
| 1405/297 Pirie Street (East End Living), Adelaide, SA 5000 | $712,000 |
| 608/297 Pirie Street (East End Living), Adelaide, SA 5000 | $530,000 |
| 5/40 Gilbert Street, Adelaide, SA 5000 | $475,000 – $505,000 |
| Table 3: Rental Data | Rent per week |
| 81/65 king William st | $530 per week |
| 3/242 Flinders Street, Adelaide, SA 5000 | $380 per week |
| 2801/29 Angas Street, Adelaide, SA 5000 | $550 per week |
| 1705/180 Franklin Street, Adelaide, SA 5000 | $475 per week |
| 208/9 Paxton Walk, Adelaide, SA 5000 | $390 per week |
I came to the conclusion that the subject property should be valued between $380,000 – $400,000 mainly based on the details obtained from the sold and listed properties stated above in the report. This is not very accurate with a wide range of differences so a more accurate price can be calculated by a closer analysis. In order to calculate a more accurate price, the site per square meter formula can be used.
SP: 100 sqm * 3700 = $370,000
The other properties in King William Street are very high valued but the subject property cannot be listed for high value mainly because of the limited area. The size of the subject property is 100 sqm and it would fall short for families. The subject property is quite adequate for students and office employees. Students would have a limited budget and this is one of the reasons why the subject property cannot be placed more than the value of $370,000.
SALE AND MARKETING
Based on the subject property private contract, this option was achieved by looking at the property’s features, and there would be no clear points on the property that could guarantee the sale by auction. Market tracking shows that 95% of the properties sold in an object are sold under a private contract by few vendors, and the few properties being auctioned have some substantial feature, that distinguishes them miles from other property, e.g. lakefront, pool, and architecturally constructed.
Since the subject property is almost identical to other properties on the road/area and is monitored by the market, the private treaty will infer an expression of concern with an indicated price. In view of all this, private agreements with a listed price and a single agent are the best way to sell the land. By using a single agency, one would assume that the listing agent is fully involved in the selling of the property because it doesn’t clash with any other agent. The subject property would also be listed on different real estate websites. The agents would also be contacted and their charges would be paid through the selling price.
INVESTMENT / DEVELOPMENT POTENTIAL
LEASING POTENTIAL
The subject property is very appropriate and suitable for leasing as there are three main rooms out of which 2 are bedrooms and 1 is the living room. There is a single bathroom and a kitchen, so the subject property is quite suitable for office employees and college students. The subject property is not much suitable for a family mainly due to the limited area and bedroom. The subject property has very high leashing potential as it is located in the heart of Adelaide and close to all transportation service. There are conventional centres nearby and numerous gardens and places to spend time. The supermarket is a minute away from the subject property. The subject property could be easily leashed by students as they could easily adjust in a 2 bedroom apartment. The subject property could be leased for $380 per week. There are no legal problems or issues with the listening option. The subject property could be easily leashed.
DEVELOPMENT POTENTIAL
The architecture of the subject property is modern and it could be easily renovated for modification. New technologies, the equipment could be easily installed in the apartment. Basically, there is a high development potential and there are no interferences in developing the site. However, the development and renovation need to be according to the rules and regulations.
FEASIBILITY ANALYSIS
Reference List
166 Wakefield Street, Adelaide, sa – Property Sold Price. (2020). Retrieved 8 November 2020, from http://house.speakingsame.com/p.php?q=Adelaide&sta=sa&id=526385&address=166+Wakefield+Street%2C+Adelaide
B11/188 Carrington Street, Adelaide, sa – Property Sold Price. (2020). Retrieved 8 November 2020, from http://house.ksou.cn/p.php?q=Adelaide&sta=sa&id=605085&address=B11%2F188+Carrington+Street%2C+Adelaide
25B/188 Carrington Street, Adelaide, sa – Property Sold Price. (2020). Retrieved 8 November 2020, from http://house.ksou.cn/p.php?q=Adelaide&sta=sa&id=604574&address=25B%2F188+Carrington+Street%2C+Adelaide
Real Estate in SA. (2020). Retrieved 8 November 2020, from https://www.propertynow.com.au/real-estate-in-sa
