Agency sells local development before it has council tick
A BRISBANE-based real estate agency is selling a proposed Gladstone development off the plan before it has been approved by council.
Professional Advisory Services Australia is advertising an apartment at 29/15 Fisher St for $460,000, pending development approval and a National Rental Affordability Scheme tick.
Real Estate Institute of Queensland CEO Anton Kardash said what PASA was doing was not illegal or unethical, but such contracts might fall into the "why bother" category.
"The contracts for these types of properties need to have many additional conditions attached to ensure purchasers are made aware they are conditional on securing the necessary approvals, so many agents are unlikely to want to be involved in selling them at all," Mr Kardash said.
"With so many variables in play for non-development approved projects, the contract of sale is likely to be fairly unwieldy as well as quite unattractive to potential buyers and selling agents."
Last week The Observer reported that Fisher St residents opposed the 32-unit Gladstone Affordable Housing development due to a number of breaches to residential, environment and suburban locality codes.
Deputy Mayor Matt Burnett said at the time he would be voting to reject the application if it appeared before council as it currently was.
PASA is a sales specialist for the affordable rental scheme whose motto is Honesty Diligence Discretion.
Gladstone Century 21 owner Jenny Kulikov said selling a property before development approval was not normal practice but buyer interest could help the application's success with council.
"Put it out there and see if you do have interest," she said. "It is really a lovely street to be in."
Ms Kulikov said nothing was a waste of time but she wouldn't be comfortable doing it.
"Especially in this case with the controversy with the surrounding residents not happy, so it could be blocked," she said.
GAH may change the application before it goes to council's general meeting.
PASA's representative is on leave and has not been able to comment on the issue.