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Asian investors have recently spent a combined $257 million on commercial property in Melbourne with foreign investors buying 25% of commercial property listings in the city, according to Savills Australia.
Two Singaporean firms have spent $226.1 million on four Melbourne properties in the past month and a Hong Kong investor spent $31.5 million on an office block, Fairfax reported.
Singaporean firm Hotel Grand Central spent $48.5 million on Victoria University’s 12-level office building at <a target="_blank" href="https://www.realcommercial.com.au/property-offices-vic-melbourne-500810779">300 Flinders Street </a>(pictured below).
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Fellow Singaporean company Hiap Hoe spent $105 million on a shopping mall at <a target="_blank" href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500679347">206 Bourke Street</a> (pictured below left), $43.8 million on an office and car-park at <a target="_blank" href="https://www.realcommercial.com.au/property-land+development-vic-melbourne-500818235">380 Lonsdale Street</a> (pictured below right) and $28.8 million on a development site at <a target="_blank" href="https://cbre.realcommercial.com.au/property-land+development-vic-docklands-500728599">6-22 Pearl River Road</a>  (pictured below bottom) in Docklands.
<img alt="melbourne_sept_10_three" height="172" width="240" src="/images/stories/2013/09/10/melbourne_sept_10_three.jpg"><img alt="melbourne_sept_10_four" height="172" width="230" src="/images/stories/2013/09/10/melbourne_sept_10_four.jpg">
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And a Hong Kong firm spent $31.5 million on Taylors House at <a target="_blank" href="https://www.realcommercial.com.au/property-offices-vic-melbourne-500015676">399 Lonsdale Street</a> (pictured below).
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Foreign investors buy 25% of commercial listings in Melbourne: Savills

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Melbourne City has again attacked a mooted 72-storey residential tower on Southbank, describing it as “oppressive”.
It says Urban Matrix’s 240 metre plans for 54 Clarke Street will cast shadows on public spaces and dominate the view of neighbouring buildings.
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''The sense of containment would be substantial and oppressive, particularly for dwellings at the lower levels,'' a council report viewed by Fairfax Media says.
The building is being reviewed by the state government after planning control changes nullified a previous approval.
BKK Architects director Simon Knott says the tower will become an icon for those travelling on the West Gate Freeway.
''Because it twists as you move around that bend, the whole building will twist and turn. It's almost like the building is alive,'' he told Fairfax Media.
He says south-facing apartments in the neighbouring building would keep their views, including of the Royal Botanic Gardens.
''The building will sit down one side of the view - it's anything but oppressive.”
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Units in the previously approved designs started from $340,000 for one bedroom and from $400,000 for two bedrooms.
In February Robert Doyle said the building was more than 100 metres taller than preferred by the council.
The 239 square metre site is the former premises of a motor repair firm.
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Melbourne council attacks 240 metre Southbank development

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Total lending on houses has continued to grow steadily according to the Australia Bureau of statistics, but The Real Estate Institute of Australia says first home buyers are missing out.
The number of owner-occupied finance commitments rose by 1.6% – following increases of 2.1% in June and 2.4% in May, in trend terms, according to the ABS.
If refinancing is excluded the increase for July, is 1.5%, in trend terms.
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The value of investment housing commitments rose by 0.8% in July in trend terms, the 12th consecutive monthly increase.
Every state had increases in owner-occupied finance commitments with the largest increases in the ACT and Queensland, up 2.0% and 1.9% respectively in trend terms.
The purchase of established dwellings is up 1.8% in trend terms, the purchase of new dwellings is up 1.4% in trend terms and the number of commitments for the construction of new dwellings is up 0.2% in trend terms.
But the proportion of first home buyers in the number of owner-occupied housing finance commitments fell to 14.7% compared to 15.1% in June.
“The figure remains persistently low compared to the long-run average proportion of 20.1 per cent despite seven interest rate cuts since November 2011,” says REIA’s Peter Bushby.
“In large part, this drop can be attributed to state governments withdrawing previous levels of support for first home owners buying established dwellings and it is established dwellings that 80% of first home buyers prefer.
“With the proportion of first home buyers remaining consistently below the long term average, this needs to be a high priority issue for the incoming Government.”
Westpac’s Matthew Hassan’s the results are broadly positive save for continued subdued first home buyer activity and a more mixed month for construction-related approvals.
“Stepping back from the monthly detail, finance approvals are starting to show a clear response to low interest rates. The upturn has been much slower to come through than previous cycles and remains of middling strength,” Hassan says.
“It is also showing a much more muted pick up in housing credit (+5.3% per year in July). The implication is that the rise in new lending is being mostly matched by a rise in repayments on outstanding loans.
“Some of that may be a byproduct of low FHB activity but it also likely reflects consumers' aversion to taking on additional debt.”
The Housing Industry Association says the results for construction finance are disappointing with the number of loans for construction fell by 2.1% to be only 1.1% higher than a year earlier.
“This is a good result, but the lack of strong upward momentum for the construction component over 2013 to date is disappointing,” says HIA’s Geordan Murray.
“The aggregate value of lending for housing increased by 4.5% in the July 2013 quarter. There has been strengthening demand from both owner occupiers and investors, which in itself is encouraging, but growth has been driven primarily by lending to those purchasing existing homes.
“The value of lending to owner occupiers for construction and the purchase of new homes increased by 2.5 per cent, while lending to investors purchasing new homes increased by 3.3 per cent in the July quarter of 2013. Despite this, the total increase in lending for new homes only contributed 0.5 percentage points to the quarterly growth.”
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Housing borrowing increasing for everyone except first-home buyers: ABS

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Perth developers are taking advantage of vendors who have failed to update their asking prices following planning law changes in WA.
Under laws introduced in August, developers are potentially able to build double the number of units on a site than they were previously.
Vendors in Perth, unaware of the changes, have failed to factor in the additional earning potential of their land and have not updated the price and have <a href="https://www.propertyobserver.com.au/western-australia/beware-developers-trying-to-buy-your-property/2013090964871?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus" target="_blank">recently been warned to ensure they price correctly</a>.
Jake Prout, director of development firm Progressive Developments, says he was able to purchase the land at his latest development for well below market price.
He paid $420,000 for an 868 square metre block of land in Midland, a block he says would likely have been priced at around $550,000 if new zoning laws had been taken into account.
Prout will be building an eight unit apartment block on the site.
“Looking at other development sites you’d be looking at least $80,000 per unit which makes it $550,000 or $600,000,” Prout told Property Observer.
“We bought it with eight units in mind, we knew we would be able to get it through planning. There was another site nearby which went for $365,000 and it was advertised as a potential five unit site. But we had already worked out feasibility and we knew we could get 10 on it.”
Had the zoning changes not come into effect Prout would have been forced to build four town-house or villa style apartments on the site which sell at a higher individual price but less in total.
“We did feasibility study on the four versus the eight and obviously you’ll make a lot more on the eight. In that particular area we don’t think it will support purchases much more than $380,000. If you did four $500,000 townhouses I don’ think you’d make as much money.”
Prout is starting marketing on the project next week through Clarendon Realty’s Ray Conrad.
The first three units will be marketed for around $338,000.
They are being marketed at first home buyers and investors.
He says vendors will cotton on to the new zoning changes soon.
“I think it’s probably fair to say there’s a short window where all of a sudden there is an opportunity to buy well,” he says.
“Over time, people tend to price their land on what it can be redeveloped for. As soon as people realise we can build eight units on this site then blocks of land will go up.”
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Perth land undervalued as vendors slow to understand zoning changes

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Investment mentor George Fokas is predicting a property market downturn next year.
He says job insecurity and an economic down-turn from a drop off in mining will lead to less investment in average price homes across Australia.
“I believe the property market will either flatten or drop a bit,” Fokas told Property Observer.
“The economy is not the best. Job security is a big issue, mining investment is going down and job security is going to be a big question.
“Because of that people won’t be buying property.
“Interest rates coming down confirms there is a problem with economy. Although rates are low right now a lot of people will be careful to get into the market before there’s certainty.”
He was unsure where specifically the market would be most affected but says the higher end shouldn’t be hit too hard.
“People who still have money will still invest. Average mum and dads won’t have the income to do it. They’re the ones people are pushing to invest in property.”
Fokas is in the minority though – many analysts are predicting a pick-up in the market.
Shane Oliver, the head of investment strategy and chief economist at AMP Capital, says property prices will likely increase next year.
“I think job security is likely to remain reasonably high but I doubt that will be enough to cause a property downturn. Interest rates will remain low and economy is likely to pick up as next year proceeds,” Oliver told Property Observer.
“I think job insecurity will gradually start to fade next year. We’ll be looking stronger. Insecurity will peak by the middle of next year and as the economy picks that will likely see the labour market take a turn for the better.
He says the Reserve Bank of Australia may raise interest rates which will keep a lid on the property market but says it won’t be enough to cause a downturn.
He says the mining boom has actually been detrimental to New South Wales and Victoria.
“The first phase of the mining boom which ended around 2007, 2008 – that was good for everyone. But that five or six years ago,” Oliver told Property Observer.
“I think the investment stage was actually a negative for states like New South Wales and Victoria because growth in those states was subdued to make way for growth in WA and Queensland. Retail was subdued, unemployment generally rose,
Friends of mine were losing their jobs during the period. I find it hard to believe the mining boom has been good for NSW. The only thing is it’s now fading which means the aussie dollar is falling.”
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Housing market downturn next year: George Fokas

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Four neighbouring Barossa Valley vineyards have sold for a total of $2.28 million to three separate local buyers.
St Vincent vineyard, Tschirpig vineyard, Augusta Grenache vineyard and Augusta shiraz vineyard in the Krondorf district were marketed for sale both separately and in one line. Together they formed Russell Vineyard.
St Vincent has 14.3 hectares of vines, including 9.9 hectares of shiraz vines, on 20.94 hectares of land. It sold along with Tschirpig, which has 2.5 hectares of shiraz vines on 8.67 hectares of land, for $1.5 million.
The Augusta shiraz block has 1.7 hectares of shiraz vines on 2.364 hectares of land and includes an old stone cottage and shedding. It sold for $330,000.
The Augusta Grenache block has 1.7 hectares of grenache vines on 6.216 hectares of land. It sold for $450,000.
They were sold by Colliers agents Jesse Manuel, Tim Altschwager and Nick Dean.
Altschwager says there was international interest in the property.
“We had a lot of interest in it from the whole market really including some overseas Chinese but at the end of the day the strongest guys were the locals. It’s showing there’s a bit more confidence in the market here,” Altschwager told Property Observer.
He says the property market in the Barossa didn’t soften as much as other parts of the country.
“The Barossa wasn’t affected as drastically as some of the other areas because it’s probably the best recognised region in Australia and from overseas,” Altschwager said.
Krondorf is home to labels including Grant Burge Wines, Charles Melton Wines and Rockford.
The properties were sold by John and Rosalind Russell who moved to the Barossa in 1990 to create the Barossa Music Festival and started making wines in 1994.
They will not be managing the properties.
The vineyards are part of <a href="https://www.propertyobserver.com.au/leisure/six-vineyards-that-might-tempt-those-fond-of-the-odd-drop/2013051361053">several around the country that has been offered recently.</a>
In August we reported Zhi Jian Zhou and Ou Guo Ying from Amway China bought a Hunter Valley vineyard for $3.8 million.
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Four Barossa vineyards sell to local buyers

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Brisbane offers the best investor opportunities in the country, according to leading Sydney real estate agent John McGrath.
If buyers can get physically get to Brisbane and have a look around then now is a good time to buy, McGrath told the audience at the Property Millionaires Tour in Melbourne on Friday which Property Observer attended.
“I can think of no better city other than Brisbane over the next five years, it’s great,” McGrath said.
“But you will have to have the ability to get up there and research it and become an expert in that market. If you don’t have that ability I’d stick closer to home in Melbourne.
“If I was investing today, if someone gave me $1 million today, I would be looking at either Melbourne, Sydney, Gold Coast or Brisbane. They would be my four choices.”
He says the Gold Coast is a good option but there can be significant movement.
“Gold Coast has been hit very hard but while it comes down very quickly but it can go back up very quickly. We have seen prices go for 40% or 50% from the top, it’s now stabilised and we’re seeing it get a bit better up there so we think that’s a good market.”
“The Sydney market under $1 million is leading the way around Australia. The Melbourne market is good, Hobart is terrible at the moment, Gold Coast has been struggling but I think represents some great buying opportunities going forward. Perth is good at the moment but is quite cyclical.”
He says Sydney and Melbourne are both looking strong in the sub $1 million market.
“If you were up in the Gold Coast you would say the strength is under $600,000 and in Brisbane it’s at $750,000.”
In Februrary McGrath opened his <a href="https://www.propertyobserver.com.au/industry-news/mcgrath-estate-agents-opens-another-brisbane-office/2013022559555" target="_blank">fourth real estate office in Brisbane</a> within nine months.
In his autumn property report <a href="https://www.propertyobserver.com.au/queensland/brisbane-residential-market-tipped-for-recovery-mcgrath/2013031959874" target="_blank">he tipped Brisbane for a recovery</a> driven by strong employment and population growth coupled with a supply shortage and rising rents.
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Brisbane offers the best investment opportunities in the country: John McGrath

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The Canberra and Darwin property markets will experience a slow-down, especially if the Coalition wins the federal election, according to leading Sydney estate agent John McGrath.
Areas heavily reliant on the public sector employment experienced strong growth during the global financial crisis but the growth will slow down, McGrath told the audience at the Property Millionaires Tour in Melbourne on Friday which Property Observer attended.
“Canberra and Darwin have been stellar performers in the last few years. My personal view is they won’t have that same stellar performance again going forward because they’re kind of like a defensive stock in the stock market.,” McGrath said.
“When things are bad people like defensive stocks because they are safe and never really change much but when the cycle starts to go back up and the economy starts getting back into a roll then often places like that are left behind. Plus they’ve enjoyed some good growth.”
He says Canberra has challenging times ahead if the coalition wins government.
“They’re talking about cutbacks and some of the roles there may not be replaced in terms of public service,” he said.
“I still think it’s going to grow but I don’t think it will grow a heap.”
He cautioned potential buyers they may be too late to cash in on Darwin price rises.
“Over the last 10 years Darwin has been going up at about 10% a year. Some would say that sounds great but sometimes when you can see the bandwagon already formed it’s too late to get on,” McGrath said.
“It would have been a great market to get into a decade ago if you had the insight to see it was going to perform like this.”
McGrath’s comments echo the thoughts of Hotspotting’s Terry Ryder who says there will be <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/canberra-needs-to-stand-by-for-some-earth-quaking-changes-terry-ryder/2013090464794?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=upperright">earth-quaking changes in Canberra</a> post-election.
“It’s pretty clear whoever wins will put the cleaners through the federal public service, particularly if we have a Tony Abbott-led government on Monday morning,” Ryder said.
He says there will be significant job losses which would replicate the actions of Liberal state governments as they have taken over in Victoria, New South Wales and, especially, in Queensland.
“Canberra, therefore, is a market to avoid. Prices are likely to fall.”
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Canberra property market likely to slow down, especially under Coalition: John McGrath

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The Brisbane housing market continues to record gradual increases in housing market activity, according to Australian Property Monitor's latest housing market report.
"Following a surge in activity last year due to local changes in the first home buyers grant, first home buyer levels are unsurprisingly at their lowest on record," the report says.
"Buyer activity in the lower-price ranges, particularly in the outer-northern suburbs, remains subdued. 
"Properties in Brisbane’s established inner and middle ring suburbs however remain popular with buyers, with investors attracted by high yields, rising rents and solid capital growth potential."
The report found Brisbane’s median house price rose by just 0.3% over the June quarter and was up by 1.8% over the 2013 financial year.
"Brisbane has recorded four consecutive quarters of house price growth for the first time in three years, although the increases have been incremental. Brisbane’s median house price remains 6.7% below its previous price peak, which is the worst performance of all the capitals."
"The local Brisbane economy can be expected to provide one of the best performers over the medium-term, with benefits from the lower dollar translating into increased activity in the mining and tourism industries and also attracting international investment.
"The expected surge in jobseekers from the southern states will lift population significantly in South-East Queensland."
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Brisbane's continuing recovery: APM

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Changes to zoning regulations will lead to higher density development in Perth.
The minimum required area for a two lot subdivision has decreased from 1000 square metres to 900 square metres.
The minimum size for a subdivided lot is now 350 square metres with an average of 450 square metres among the two blocks.
The Western Australian Planning Commission will also consider a 5% variation on this meaning the minimum size potentially required to subdivide is potentially 855 square metres.
Perth-based property investment consultant Damian Collins says this allows much higher density development in Perth.
“Fit in with changes made two years ago with multiple dwellings where you used to be able to put three townhouses or three villas can now put up to eight apartments,” Collins told Property Observer.
“Not all suburbs will be able to do this, but a number of them will. It’s all related to the Directions 2031 strategy for Perth where they’re trying to condense a lot of that growth within existing catchment areas.
“Half of the new growth over the next 30 years is to come within existing suburbs.”
The zoning changes also have implications for granny flat investors.
First it was the small dwelling scheme enabling Fremantle homeowners to build granny flats without the need for a granny.
Now the city has taken its density planning to new lengths with a draft planning scheme amendment allowing homeowners to build dwellings on eligible sites, irrespective of the site’s planning density coding.
The city is now seeking public comment on the proposed planning scheme amendment (Amendment 50) to provide greater flexibility for homeowners and result in more diverse and affordable housing in Fremantle – a key objective of the city’s Strategic Plan 2010-15.
The amendment will allow the development of one additional dwelling per lot on residential properties where the lot benefits from front and rear road access. This will assist in the delivery of infill housing, at a range of different densities, because homeowners won’t be confined to the standard lot size requirements of the R-Codes.
The provisions require new dwellings to address the alternate frontage to the existing house on the site, meaning rear streets will benefit from improved street activation and surveillance.
Fremantle mayor Dr Brad Pettitt said the amendment would provide flexibility in delivering different forms of housing as well as improving the appearance of rear streetscapes.
“Fremantle homeowners will have greater choice in developing new forms of housing to address local needs and demands that, otherwise, may not have been allowed by the density code of their area,” Pettitt said.
“The additional dwellings will also help to address Perth’s urban sprawl issue and will have the added benefit of transforming typical rear access streets into active and appealing streetscapes.”
Key requirements of the provisions in the proposed amendment are:
* The property must have frontage to more than one gazetted road. The provisions will not apply to properties with a secondary frontage to a right-of-way or private street. Properties at street corners are also excluded
* The additional dwelling will need to address and gain access from the rear street
* The additional dwelling will still need to meet other planning requirements, such as those relating to parking, setbacks, building height and open space
* The provisions will not apply to subdivision, meaning they will not create vacant sites.
The amendment is currently being advertised for public comment until October 4.
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Perth zoning changes will lead to eight apartments on one block

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

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According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

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Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

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Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

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Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

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Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

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Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

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Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

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Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

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Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

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La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

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<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

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Alistair Walsh

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