Our vision is to provide the best service arriving from knowledge, no body knows this building better. Having our office located in the building gives us pole position on all the other agents. We are the first point of contact for any new buyers or tenants.
Welcome.
We start off into October with everything looking good for a busy month. It is a great compliment when residents recommend the building to their friends to come and join them living at Victoria Point and this happens often. The building is looking great and has established a position of prominence in Docklands.
This month I thought a condensed report on the state of your building could be of interest to you. If you have any interest in doing a “back of house tour” of the building we would welcome your interest and arrange a suitable time with you preferably on Saturday morning. Register your interest now kjeffrey@victoriapoint.biz
External Lighting
New LED street lighting has been installed on the Podium level to replace the previous lights that were unsuitable in high winds (several blew apart). Following a failed approach made to the builder to have them take responsibility for the replacement of the lights it was decided to replace the lighting as this was a major safety issue. The benefit of the LED lights will show up in the electricity consumption and low maintenance.
Cleanliness of External Common Area.
Keith works tirelessly to make sure that the external cleaning is kept to a high standard. Your cleaners are contract cleaners and we do our best to get the value out of them. The Grand Staircase which runs up from Harbour Esplanade to the Podium level is a major public through access to Southern Cross Station and Etihad Stadium and as such is subject to 24/7 usage by the public. No extra cleaning costs have ever been build into the contract for this area. The contract is currently under review and we are working towards being able to include more of the high traffic areas.
Lifts
Otis is our service provider for the lifts and as lifts go Victoria Point has as good as any.
From time to time we do have problems with failures, however, it is not long before Otis are on site. Keeping the lifts clean on weekends is a special challenge however, overall the lifts are a clean and reliable – a great meeting place.
LED Lighting
Keith has been working with the committee representative to asses how best we can change over our lighting to LED. Various areas of the building have been trialling samples of the various products available. This is still very much on going as we need to be sure of continuing supply and suitability to our existing fittings.
Hot Water System
The Hot Water system has been a real challenge since the construction workers doing the work on the realignment of the tram tracks in Harbour Esplanade dug up our main water line.
This action shut down our water supply for approx 6 hours and the dirt released into the hot water lines shut it down for 23 hours. The dirt in the hot water lines is giving us ongoing problems with daily monitoring being necessary, also keeping the filters clean . We have 36 Gas Hot water heaters and a very complex circulation and return system.
Lobby
The lobby area is looking good with the new recovered lounges these were recovered just a few months ago and it has brightened up our main entry. This is a high usage area.
Front Entry Area
The tiles at the front entry continue to be a major slip and fall hazard when it is raining. Following exhaustive investigation into finding a suitable non slip product it appears that Blue Stone might be the go. Decision still to be made by the Owners Corporation as this is a big job replacing the existing tiles.
Fire Control System.
The fire control system has had its yearly essential services checks.
Service and maintenance on the system is always ongoing with testing being carried out on a regular basis with any maintenance being given our full attention.
Building Communication & Security.
Communication and security are really part of the same system and the Owners Corporation has been looking into a major upgrade to bring state of the art electronics and systems into action. Our current system functions, however it does not offer Foxtel IQ which was not even thought of when the building was on the drawing board.
With the advancements in technology there are some who believe that Victoria Point should offer this level of facility to its residents.
There are ongoing investigations being made to come up with a replacement system that will offer all these new services to the residents and be able to offer a service contract that will be both effective and budget friendly.
General Cleaning & Maintenance.
The windows are due for cleaning again in November. All the anchor points for the sky jumpers have been tested and passed. Maintenance is an ongoing issue with small items being dealt with as they occur. There are service contracts in place for all mechanical items and items that are subject to high usage or are exposed to the weather.
Air Conditioning – Building
The air conditioning machinery is located on the roof of The Quest Hotel this is where the water is chilled and is piped to the apartments when needed. The water chills the pipes and the fan blows air over the chilled pipe and into the apartment. There is some major maintenance being carried out to the chillers as we go to press and will be on going for a few weeks. With the onset of summer it is essential that the Chillers be ready for the extra load.
Air Conditioning Internal –Apartments
We all have cause for concern with the air conditioning in the apartments. The air conditioner machinery is top of the line (I am told by a reliable source) however if there is a problem be it big or small in 80% of the apartments there is limited access to the motor and heating system.
The air conditioning has been installed without allowing access for repairs or maintenance, the ceiling has to be pulled out and a scissor lift brought in to take the weight of the machine to bring it to a level that can be worked on. Then replace the machine rebuild the ceiling and install a hatch for any future access. Estimated cost of doing this (before allowing for repairs if it is more than a simple item) $3,000 – $4,000
We have had several people – electricians & air conditioning mechanics quote us on this work and the answer is the same. The best we have come up with has been Dalkia who are the Trane specialists and their quote is in the range of $3,000 – $4,000
New Gardens on Level 4.
Last year the gardens on Level 4 were completely over hauled with new soil being brought in and a new design. When we arrived in December the new little plants had just started to take shape. There is no doubt that the right choice of plant has been put in as they have thrived right through winter and that awful wind that blows between us and Etihad Stadium.
Vic Urban contributed to the costs and the continuing maintenance and they look a treat by the end of summer they will be well established and add a real softness to the area. Considering that the kids play in them and the adults sit on them they look fantastic.
Keith & Kay Jeffrey
We are experiencing interesting times at Victoria Point. The market has lost its predictability; no longer can we rely on percentage increases in Sales and Rentals. We have just passed through a 2 month downturn and we are back to where we were in May 2010 with rental prices.
We are now clear of that quiet time and the apartments are filling very well, however some at previous rental amounts and some with only very modest increases. With my 25 years + experience I just can’t predict the market it is very unstable. We have been trying to increase our corporate tenants and decrease our student tenant numbers to help with the increases in rent.
We have had a lot of student tenants break their lease as there have been problems “back home” and they have had to return to their country, something I have never seen before.
I must say that those students that do stay are surely good for the Melbourne economy they are always returning with arms full of designer carry bags full to the top with new gear to wear. The amount of “stuff” they leave behind in the apartment when they go is amazing, not like the Aussie kids who go to Uni with the backside out of their pants counting every dollar they spend. How times have changed.
With all this uncertainty please remember the landlord insurance we have presented to you it is real peace of mind if you rely on your rent to make the mortgage payments. If you would like me to send the information out to you again please just shoot me an email and I’ll email it right back to you.
RENTALS – Recent rental amounts
| Studio unfurnished | $310 pw any level |
| 1bedroom | $450 pw |
| 1bedroom + study | $475 – 495 pw dependant on position within the building |
| 2 bedroom 1 bathroom | $540 – $570 pw depending on position within the building |
| 2 bedroom 2 bathroom | $570- $595 pw depending on position with in the building |
SALES – Recent sales
1 bedroom City view $370,000 rental return PA on current market rent $23,400
2 bedroom 2 bathroom Harbour & Bay views $655,000 current market rental return PA $37,440
Dual Key City views $630,000 current market rental return PA $39,520
2 Bedroom 2 bathroom beautiful harbour views $680,000 current market rental return $37,440
Better Capital growth should really start to kick in for the building now. Traditionally high rise buildings don’t start their real capital growth until they are about 6 years old. It is about that time the market makes a judgement on the perception of the building as to whether it is a building that owner occupiers would like to purchase. If the owner occupiers like what they see and feel about the building as a “great place to live” then the capital growth climbs at a rapid rate as we then have people buying with their heart and not their investor head.
Have a great month regards Kay Jeffrey
End of Financial Year 2010
All the end of Financial Year work is finished and we have sent all your end of 2010 financial year statements out in the mail. If you have not had time to have a look at your statement please take the time to give your attention and if there is anything that you have a question about please contact me and I will go through it with you.
Redevelopment of Harbour Esplanade.
The redevelopment of Harbour Esplanade is well under way with the tram tracks being moved and straightened to give more room for the park area. The big palm trees have been removed from the middle of the tram/road area and the preparations are taking place to plant over 210 Norfolk Island Pine trees.
All this work and beautification of the harbourside can only be good for Victoria Point and the whole Docklands area.
Keith & I live on-site and find the area has everything to offer with a village atmosphere right in the City. It is a healthier lifestyle as you tend to walk to most places taking the car just isn’t necessary we love it!
Rentals
Not as good a month for rentals as some of the previous months. We had a very large number of “Lease breaks” this is where the tenant wants to leave before the lease period is completed. The tenant covers the cost but with so many at the time of year when there are not as many people moving around it has the effect of holding the rents lower as the supply is greater than the demand. This is a seasonal issue and has nothing to do with our apartments it is all to do with the movement of company employees (your tenants).
Sales
Michael has had two sales over $800,000 so the upper market is still moving along, both these sales are owner occupiers and are in keeping with the shift of executives to Inner City living. The hours that so many upper management/executives work seems to be growing.
We see them heading off 6.30am or earlier if they are catching a plane and it is not unusual to see them arriving home after 8pm at night.
I know Michael has interested purchasers looking for larger apartments with 2 car parks. Victoria Point is seen the premium building of the Docklands area with the big attraction of on-site management.
Next Newsletter will be Spring!!!!
Regards
Kay Jeffrey
