Rubbery Figures

Sydney Morning Herald

Thursday August 15, 2002

Harvey Grennan

Don't hang on to the hope that a holding deposit holds anything.

BUYERS are finding that putting down a hefty holding deposit on a new apartment does not necessarily secure their dream home or investment.

In fact, according to the NSW Department of Fair Trading, agents can take as many holding deposits as they like in order to fish for the best price. Buyers who think they have a deal are simply handed back their deposit and have no recourse at law.

A holding deposit of $5000 was placed on a unit in The Rex, a trendy development at Potts Point, by a Sydney woman acting for a friend in the UK. Four weeks later she says she got a call from Colliers International agent Myles Green telling her the vendor (Addenbrook Properties) had decided to increase the price by $100,000 to $850,000.

"In that time we spent the usual equity on lawyers both in Sydney and London assessing the contract, arranged for the arduous transfer of funds and were continually reassured that all is well," says the woman, who prefers not to be named.

Her experience follows a similar incident at Clovelly (Domain, July 25) where a couple paid a $5000 holding deposit on an apartment unit, but were told a few days later that the developer himself wished to buy it.

Colliers' Green told Domain the Rex matter had been settled. "It was a misunderstanding really, an honest mistake." But not according to the hopeful buyers: "We lost the property and we lost $5000 in legal fees which Colliers has not offered to reimburse."

Colliers International sales manager Peter Chittenden disputes the unit was ever available at $750,000 and puts the problem down to a "communications error" by the salesman. However, the buyer's lawyer says she received a contract page from the vendor's solicitor specifying this price.

Chittenden says he identified the mistake on the day of the deal but "it took a while to contact [the buyer's friend] as she was overseas". She says she has not left the country in that period.

The Department of Fair Trading says the acceptance of a holding deposit does not mean a property is sold or that it will be taken off the market or that it will sell at that price.

"The right still remains with the seller to obtain the best price," said a spokesperson. "There is no obligation to sell to you, and you have no obligation to buy."

Postscript: After Domain intervened, Colliers' PR consultant rang later the same day with news that it had been decided to offer the unit to the UK buyer at $750,000.

PNG cashes in

As debate rages in PNG over the selling of publicly owned assets such as Air Niugini, Telikom and PNG Banking Corp, three government-owned properties on Sydney's North Shore have just added more than $3.8 million to the coffers. The High Commissioner of PNG, Renagi Lohia, was in attendance when 2 Clarence Avenue, Killara was put under the hammer on Saturday August 3. Situated in a cul-de-sac on a 1675 sq m block (two titles), the four-bedroom, four-bathroom executive residence was auctioned on behalf of the Government of PNG.

The property had been used as a consular-general residence. The government paid $900,000 for it in 1993. Prem Panikkar of Ray White, Lindfield/Roseville, had given price indications of between $1.35-$1.5 million and the written reserve was $1.3 million. It sold for $2.005 million. The Saturday before, Panikkar's agency handled the sale of two Lindfield properties for the PNG Government. A five-bedroom two-storey house on 996 sq m at 14 Strickland Avenue sold for $847,000 and a three-bedroom house on 836 sq m at 32 Wolseley Road for $950,000.

Meet the architects

Four of Sydney's leading architectural practices will answer questions on architecture and design following entertaining lectures by Tone Wheeler this Saturday.

Would-be renovators should seek out Cracknell Lonergan - the partners' tiny Surry Hills house is an exemplar of "small is beautiful". There is the chance to soak up top tips for adding onto an existing house from Chenchow Little, who won a commendation in last year's architecture awards for an addition to a Blue Mountains house (pictured); to quiz Innovarchi on apartment design, making the most of limited space and beachside living; and consult Kennedy Associate Architects, specialists in maximising space and light to provide great living environments.

Sydney Design Week Public Information Day: City Exhibitions Space, Customs House, Saturday, August 18 from 10.30am to 4.30pm. Inquiries: 9356 2955.

Not so sunny up north

While property continues to soar in Sydney and Melbourne it dived into negative territory in urban Queensland and Perth in the June quarter. The Home Price Guide reports that median house prices in Brisbane fell 0.8 per cent to $179,000, by 1.2 per cent on the Gold Coast to $247,000 and by 2.1 per cent to $186,000 in Perth.

In Brisbane, units dropped 3.2 per cent to $153,000 and those on the Gold Coast 2 per cent to $170,000. Perth units remained static at $140,000. However, auction prices in Brisbane and on the Gold Coast both recorded rises in July.

The Real Estate Institute of Queensland disputes the gloomy June quarter figures but the Home Price Guide stands by them.

Rare find

House 18 Bedford St, Willoughby.

It last changed hands in 1910 and the original features in this three-bedroom Federation home will delight: ornate plaster ceilings featuring Australian flora, lead glass windows and feature joinery including window seats, built-ins, picture rails and a fretwork archway in the hall. The park-like established garden contains a magnificent mango tree and original dunny.

Price About $900,000.

Agent James Snodgrass at RT Forsyth First National, 9419 7411.