Sunday, August 9, 2009

Differences in Value Between Apartments in the Same Building

Usually, it is relatively easy to determine a value or price range for an apartment in a high rise building. This is because there are often a number of sales a year in the same building, and so if you can find an apartment with a similar floor plan that has sold (e.g., an apartment in the same line), that gives you a good starting point. Then, you can look at the difference in floor levels, and determine how the value is different.

For new apartments, developers use a rule of thumb, that says going up a floor is worth another $5,000 or $10,000 per floor. This doesn't seem to hold true for existing buildings, where there is little difference in value between an apartment on level 20 and the same apartment on level 23 (for example). What is more important is the actual view. A lower apartment may not clear another building, and a higher apartment may have a river view. Often, the price jumps at a certain floor, because the view is dramatically better for apartments at that floor and above.

A car park in downtown Brisbane adds about $60,000 to $70,000 compared with an apartment without a car park.

Also, sometimes an apartment is sold furnished, and that cannot be seen from prior sale records. (Furniture usually doesn't add much to the sales price - often only $5,000 or so.)

What is often missed by purchasers (and some valuers) is that some apartments in a building may have access to special amenities, that other apartments cannot access. A good example is the Admiralty Two building. This building has a high rise section and a low rise section. The high rise apartments have access to a swimming pool and gym on the top floor, as well as a roof deck. Both the high rise apartments and low rise apartments can access the pool and gym on the lower level. So an apartment on level 32 has access to facilities that the same style apartment on level 20 cannot access. Often this benefit is overlooked.

Photos on this page show the exclusive use areas for Admiralty Two in Brisbane - use for the apartments in the high rise section only.

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