Mortgagee Sales Wipe Millions off Prices at Top End

21 Nov 2011 - Margie Blok from http://news.domain.com.au

FINANCIALLY distressed property listings and mortgagee sales are attracting cashed-up buyers looking for bargains, particularly for prestige properties.

This week a block of apartments at Edgecliff, offered for sale under receivers' instructions, sold for $5 million through Ray White Double Bay.

Named Brantwood Hall, the character four-storey block in New South Head Road had passed in at auction two weeks ago. With 12 one-bedroom apartments and a three-bedroom penthouse, the building shows a gross annual return of $270,304 which the selling agents believe could be improved.

Other properties that have been on the market for many months are creating renewed buyer interest when advertised courtesy of a mortgagee.

A Vaucluse residence that failed to sell at auction in August when it was marketed with $5 million-plus hopes by its owner, now is set for a mortgagee auction on December 3 with expectations of $4 million through Laing + Simmons Bondi Junction.

"Last weekend about 30 groups of people attended the first open inspection of this property, and most of them were bargain hunters," agent Mark Simon said.

Set on a 700 sqm block in Hopetoun Avenue high above Parsley Bay, the extensively renovated four-bedroom residence has palatial living areas with harbour views.

At Mona Vale, a modern residence in Surfview Road that has been on the market for more than a year sold recently for about $3.5 million. Previously the home of Max Delmege, a northern beaches property identity and Manly Sea Eagles fan, the two-storey house stands an 870 sqm beachfront block.

In November last year, the property didn't sell at auction when the mortgagee-in-possession had $7 million-plus hopes. A month later it was listed at $6 million. In May it failed to sell at auction again. Records show the price had dropped to about $5 million in June, more than $4.5 million in July, and the mid $3 million range in late August. A title search reveals the property has a first mortgage from Bank of Western Australia Ltd, and caveats from ING Bank and Capital Finance Australia.

A penthouse at Cremorne Point that was listed 18 months ago by its mortgagee-in-possession with $15 million hopes is back on the market. The selling agents indicate the mortgagee is now prepared to meet the market, and the lavish seven-bedroom, six-bathroom apartment will be sold.

Previously, the penthouse was owned by Simon Symond, a developer who converted The Ritz building to luxury apartments during the 1980s and 1990s. But the mortgagee took possession of the penthouse after Symond (burdened by a stalled shopping centre project at Toongabbie) lost control of it during the global financial crisis.