Then and Now

223 North Terrace Adelaide comprises of 111 apartments in 2 buildings built over the old John Martins carpark. This Buchan Lee project was completed in the last quarter of 2006 and we manage around 45 apartments in the buildings for clients.

We thought it would be interesting to examine the rental growth since completion, so we picked a typical 2 bedroom apartment in the South building as an example. It was first leased on 23 September 2006, and was just rented to its 3rd tenant a couple of weeks ago. The 79 square metre 2 bedroom apartment is rented with a car park and on an unfurnished basis.

It first rented for $375 per week ($247 per square metre per annum) and current rental is $480 per week ($316 per square metre per annum) both for a 12 month lease period. So in a period heading towards 3 and a half years, this is an increase of 28%. Hopefully for the landlord this growth will continue for the next 3 and a half years - a 28% increase over the current rental would be $614 per week!