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A potential property boom could force the Reserve Bank of Australia to raise interest rates, according to veteran financial journalist Robert Gottliebsen.
He says the RBA has told the big banks that a housing price boom is currently its "greatest fear" as prices are already high by most world standards.
This echoes an earlier report by Terry McCrann who says the<a href="/news"> RBA is worried about a property bubble</a>.
“(Banks) are currently fanning demand by encouraging people to buy dwellings, both privately and as investors, with generous credit and low rates,” Gottliebson wrote in Business Spectator on Wednesday.
“But on the supply side the banks reduce the supply of dwellings because they are reluctant to take risks in lending to developers because history has shown that almost all big bank losses have come via property development loans during booms.”
He says this is pushing up apartment prices and limiting supply as developers seek other financiers who want higher returns.
This is then exacerbated by the actions of could and government planners as well as “cartel like arrangements between large commercial builders and the big building unions”.
Any potential property boom is likely to start in the tightly-supplied inner city apartment market in Melbourne and Sydney, driven by investors, but would spread to suburban areas as prices increase and yields decrease.
“If that inner suburban boom gets out of hand be ready to change the interest rate forecasts,” Gottliebsen writes.
"The big banks have been quietly told by the RBA that a dwelling price boom is its greatest fear in the current climate because Australian dwelling prices are already high by most world standards. If a new housing price boom breaks out, then the interest rates will have to rise." 
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awalsh-7Ub9EypybQ

RBA tells banks dwelling price boom was "its greatest fear": Robert Gottliebsen

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Perth home prices have increased 10% over the past year  - double the capital city average, according to RP Data.
Sydney leads so far in 2013 though, with prices up 7% in 2013 and 1% in the past month though they have dropped slightly in the past week.
Melbourne prices are up 4.9% so far in 2013 and 0.8% over the past month.
Adelaide is the only city where prices have dropped this year.
 
<img height="249" width="470" src="/images/stories/2013/08/rp-data-chart-1.jpg" alt="rp-data-chart-1">
<img height="203" width="470" src="/images/stories/2013/08/rp-data-chart-2.jpg" alt="rp-data-chart-2">
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Perth prices up 10% over past year: RP Data 

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The National Rental Affordability Scheme is facing hurdles with many banks refusing to lend to investors buying properties developed under the scheme.
The government sponsored investment scheme allows certain developers to build properties which are then sold to investors who rent it out at 20% below the market rate to eligible renters.
But developers are reportedly selling the properties at a price above what the banks think they are worth.
AVJennings chief executive Peter Summers says companies such as his own are having difficulty settling sales of NRAS properties.
"You can get sales away but they're falling over because of valuation issues," Summers told The Australian.
"I think it's a very good product class for investors but the banks are still a reluctant to lend to NRAS properties.”
Gavin Hulcombe from Herron Todd White says the complexity of the scheme combined with the valuation differences mean banks are unwilling to lend on the properties.
"It's the complexity of the schemes, particularly the leases and the exit and entry clauses that are causing concern,” Hulcombe said.
He says commission payments from developers to financial planners to sell the properties had pushed up the price to complicated the valuation.
Property commentator Margaret Lomas recently write that <a target="_blank" href="https://www.propertyobserver.com.au/western-australia/is-there-really-government-income-guaranteed-housing-ask-margaret/2013081464151">re-sellers can receive a $25,000 plus commission</a> to sell NRAS properties which inflate the price.
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Banks baulking at lending on many NRAS properties as selling commissions cloud valuations

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Bread and butter suburbs were the most profit earning suburbs across Brisbane over the last year. In suburbs like Mount Gravatt all of the house sales over the past year sold for more than their previous sale price, according to RP Data.
Across Brisbane, five out of ten house sales went for more than their previous sale price, according to the REIQ.
There were two suburbs with a 100% profit making run - Mount Gravatt, in the south east and Mount Ommaney in the south west.
The new RP Data information is based a slightly tweaked algorithm using Automated Valuation Models which may slightly differ from numbers in Property Observer's system.
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<td colspan="4" width="458" height="20">Highest proportion of profit making sales</td>
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<td height="20">Suburb</td>
<td>Repeat Sales</td>
<td>% of sales over past year</td>
<td>Median value</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="/news">Mount Gravatt</a></td>
<td align="right">31</td>
<td align="right">100%</td>
<td align="right">$491,186</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="/news">Mount Ommaney</a></td>
<td align="right">13</td>
<td align="right">100%</td>
<td align="right">$787,982</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="/news">Holland Park</a></td>
<td align="right">86</td>
<td align="right">98%</td>
<td align="right">$524,812</td>
</tr>
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<td height="20"><a target="_blank" href="/news">Taringa</a></td>
<td align="right">43</td>
<td align="right">98%</td>
<td align="right">$754,145</td>
</tr>
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<td height="20"><a target="_blank" href="/news">Everton Park</a></td>
<td align="right">89</td>
<td align="right">97%</td>
<td align="right">$472,513</td>
</tr>
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<td height="20"><a target="_blank" href="/news">Nundah</a></td>
<td align="right">58</td>
<td align="right">97%</td>
<td align="right">$576,279</td>
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<td height="20"><a target="_blank" href="/news">Eight Mile Plains</a></td>
<td align="right">85</td>
<td align="right">96%</td>
<td align="right">$576,836</td>
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<tr height="20">
<td height="20"><a target="_blank" href="/news">Woolloongabba</a></td>
<td align="right">28</td>
<td align="right">96%</td>
<td align="right">$618,539</td>
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<td height="20"><a target="_blank" href="/news">Kenmore</a></td>
<td align="right">109</td>
<td align="right">96%</td>
<td align="right">$548,286</td>
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<td height="20"><a target="_blank" href="/news">Chelmer</a></td>
<td align="right">25</td>
<td align="right">96%</td>
<td align="right">$812,458</td>
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<td height="20"><a target="_blank" href="/news">Spring Hill</a></td>
<td align="right">25</td>
<td align="right">96%</td>
<td align="right">$786,271 
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Source: RP Data
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Mount Gravatt heads top 11 profit making suburbs in Queensland

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American property website giant Zillow has bought the New York online property listing StreetEasy for US$50 million.
The seven-year-old start-up provides a comprehensive for-sale and for-rent listing through partnership with New York real estate agencies.
The website has 1.2 million monthly users and 34 employees.
Though New York focused it also has listings for properties in Philadelphia, Washington DC, South Florida, New Jersey and the Hamptons on Long Island.
"StreetEasy is an incredibly strong and recognised brand in New York City," Zillow chief Spencer Rascoff said in a statement.
"Simply put, StreetEasy has cracked the code in New York.
“They now have a local network effect where nearly every New York broker is active on StreetEasy because of the site’s large audience and comprehensive data.”
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US property website Zillow buys StreetEasy for US$50m

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John Edwards, chief executive of Residex, says a property bubble in Australia is unlikely.
“While there is a lot of talk about the market taking off and suggestions that we are about to experience another price bubble there is little evidence to support this,” Edwards wrote on his blog on Friday.
“A more accurate statement would be that while the market remains fragile, it looks as though it is moving to a more normal growth phase."
“A period of excessive price growth is unlikely as the economy is not strong enough to support such an outcome. We are also likely to see increases in unemployment, which will also encourage a level of conservatism within the community. Additionally, interest rates will rise from the current historical low point.”
He says housing affordability is still difficult for some people but it is better than it has been for many years.
He says the property markets are rebounding on the back of lower interest rates and a lack of available stock.
Residex found that in the last quarter, house and land values have increased by 0.59% across Australia while units increased 1.89%.
It found some capital cities had very strong results in May and June but reverted to a price reversal in July.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/08/residex-chart-aug-20-big.gif" title="Click to enlarge"><img src="/images/stories/2013/08/residex-chart-aug-20-small.gif"></a>
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Property bubble unlikely as Sydney records strongest capital growth for housing last quarter: John Edwards

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Melbourne's inner north is home to its most walkable suburbs - a trait which pushes up home prices.
Property research firm The Secret Agent There says there is a strong correlation between the walkability of a suburb and its median price.
Suburbs with a high walkability score consistently have a higher median price than suburbs with a low walkability score.
The scores are calculated based on the average distance to local amenities and the population density. They are produced by an algorithm on www.walkscore.com.
It found that on average, every five point increase in Walkscore value between 60 and 100 is worth approximately $298 per square metre for houses.
The study excluded walk scores below 60 as they did not occur within the inner city.
Click to enlarge:
<a title="Click to enlarge" href="/images/stories/2013/08/walkability-aug-5-map-big2.gif" rel="shadowbox"><img src="/images/stories/2013/08/walkability-aug-5-table-small-2.gif"></a>
 
“It is interesting to note that the most expensive suburbs were not necessarily the most walkable.”
“As the demand for walkability continues to increase, it would be reasonable to expect that there will be a shift in the desirable locations to live. Where the lifestyle factors become the new prestige”
The authors concede that while it’s certainly not a sure-fire assessment of a suburb’s worth, it does give “a good indication of the positive value of living in an area with a mix of local walkable amenities”.
Click to enlarge:
<a rel="shadowbox" href="/images/stories/2013/08/walkability-aug-5-table-big.gif" title="Click to enlarge"><img src="/images/stories/2013/08/walkability-aug-5-table-small.gif"></a>
Most walkable:
10. Windsor
9. Collingwood
8. South Melbourne
7. East Melbourne
6. South Yarra
5. St. Kilda
4. Melbourne
3. Fitzroy North
2. Fitzroy
1. Carlton
­­
 
Least walkable:
10. Croydon North
9. Lilydale
8. Altwood
7. Endeavour Hills
6. Mount Evelyn
5. Rosebud West
4.  Roxburgh Park
3. Belgrave South
2. Narre Warren South
1. Derrimut
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Carlton tops list of Melbourne's most walkable suburbs

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The gap between real estate agent price guides and actual auction results has jumped this year in Sydney, according to a survey by Intelligent Property Services.
There is now a 12% variation between auction price guides and actual results.
The 2013 survey analysed 39 auction sales so far this year ranging from Sydney’s eastern suburbs, to Burwood on the outer fringe of the inner west with a few sales on the lower north shore – all traditional auction hotspots in Sydney. The sales range from late February to the end of July.
In 2012 there was an 9% variation and in 2011 an 8% variation.
Head of research at Intelligent Property Services, Joe Kotevich, says the surges comes more as a result of buyer demand than any deliberate lowballing by agents.
“The average variation for 2013 is quite high and dramatically elevated compared to the results recorded for 2011 and 2012,” Kotevich says.
“The year to date is also consistently high (rather than having a few outliers that throw the average) and we believe this is a function of a large number of buyers, fuelled by positive market sentiment, low interest rates and decreased stock on the market, surpassing both vendor and agent expectations in heated auction environments.”
None of the sales recorded sold for below agent expectations.
The sale with the greatest gap between price guide and actual result was a very tired 1900-built three bedroom terrace in Newtown, at <a href="https://www.propertyobserver.com.au/https://www.raineandhorne.com.au/newtown/properties/276925" target="_blank">182 Denison Street</a> (pictured below). The pre-auction guide suggested a price of $600,000, but it actually sold for $800,000 in May – a price difference of 25%.
{yoogallery src=[images/stories/2013/08/aug20new2]}
And <a href="https://www.firstnational.com.au/?pagecall=property&amp;propertyID=2396296">74 Sophia Street</a>, a dilapidated terrace in Surry Hills (pictured below), sold for $894,000 in July with a price guide of $700,000 – a 21.7% difference. There were reportedly 18 registered bidders at the auction of the 105 square metre block. It was bought by a builder in his 20s.
{yoogallery src=[images/stories/2013/08/aug20surry]}
And <a href="https://www.domain.com.au/Property/Sold/House/NSW/Enmore/?adid=2010476662" target="_blank">9 Marian Street</a>, a newly renovated terrace in Enmore (pictured below) sold for $1.004 million in June with a price guide of $800,000 – a 20.32% difference. Before the auction Sydney Morning Herald tipped it offering “good bang for your buck” with its low price guide.
{yoogallery src=[images/stories/2013/08/aug20en]}
Intelligent Property Services obtains the price guides after the first week of showing the property, allowing time adjustment of expectations. The auctions are monitored following inquiry from its buyers agent department.
The results are in line with the recent price discrepancies recorded in Melbourne from a Property Observer survey.
A Property Observer analysis of 68 auction sales since the end of the July school holidays found <a href="https://www.propertyobserver.com.au/victoria/melbourne-auction-homes-selling-10-over-advertised-price/2013080863977" target="_blank">more than 90% sold for above the advertised price guidance bracket</a> – with an average price variation of 11%.
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Sydney auctions selling 12% above price guides

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There are 32 regions in Australia where the property market is either at the bottom of the market or at the start of a recovery, according to Herron Todd White.
With 11 appearances, Queensland has the most locations on the list.
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<td width="127" height="20">Region</td>
<td width="234">State of market</td>
<td width="39">State</td>
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<tr height="20">
<td height="20">Albury (h)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Albury (u)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Central Coast (u)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Central Coast (u)</td>
<td>Rising market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Coffs Harbour (h)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Coffs Harbour (u)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Dubbo (u)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Echuca (u)</td>
<td>Start of recovery</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Griffith (h)</td>
<td>Start of recovery</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Griffith (u)</td>
<td>Start of recovery</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Newcastle (h)</td>
<td>Start of recovery</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Newcastle (u)</td>
<td>Start of recovery</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Tweed Coast (h)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Tweed Coast (u)</td>
<td>Bottom of market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Wollongong (h)</td>
<td>Bottom of market - rising market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Wollongong (u)</td>
<td>Bottom of market - rising market</td>
<td>NSW</td>
</tr>
<tr height="20">
<td height="20">Brisbane (h)</td>
<td>Start of recovery</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Brisbane (u)</td>
<td>Start of recovery</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Bundaberg (h)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Bundaberg (u)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Cairns (h)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Cairns (u)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Hervey Bay (h)</td>
<td>Start of recovery - bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Hervey Bay (u)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Ipswich (h)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Ipswich (u)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Mackay (h)</td>
<td>Bottom of market - rising market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Mackay (u)</td>
<td>Bottom of market - rising market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Rockhampton (h)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Rockhampton (u)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Sunshine Coast (h)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Sunshine Coast (u)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Toowoomba (h)</td>
<td>Start of recovery - bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Toowoomba (u)</td>
<td>Rising market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Townsville (h)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Townsville (u)</td>
<td>Bottom of market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Whitsunday (h)</td>
<td>Bottom of market - rising market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Whitsunday (u)</td>
<td>Bottom of market - rising market</td>
<td>QLD</td>
</tr>
<tr height="20">
<td height="20">Adelaide (h)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Adelaide (u)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Adelaide hills (h)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Adelaide hills (u)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Barossa Valley (h)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Barossa Valley (u)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Iron Triangle (h)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Iron Triangle (u)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Mount Gambier (h)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Mount Gambier (u)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Riverland (h)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Riverland (u)</td>
<td>Bottom of market</td>
<td>SA</td>
</tr>
<tr height="20">
<td height="20">Ballarat (h)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Ballarat (u)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Gippsland (h)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Gippsland (u)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Latrobe Valley (h)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Latrobe Valley (u)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Melbourne (h)</td>
<td>Start of recovery</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Melbourne (u)</td>
<td>Start of recovery - bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Mildura (h)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Mildura (u)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Shepparton (h)</td>
<td>Declining market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Shepparton (u)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Wodonga (h)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Wodonga (u)</td>
<td>Bottom of market</td>
<td>VIC</td>
</tr>
<tr height="20">
<td height="20">Southwest WA (h)</td>
<td>Start of recovery</td>
<td>WA</td>
</tr>
<tr height="20">
<td height="20">Southwest WA (u)</td>
<td>Start of recovery</td>
<td>WA</td>
</tr>
</tbody>
</table>
Source: HTW</body></html>

Queensland tops list of 32 recovering or bottomed out property markets: Herron Todd White

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Bendigo and Adelaide Bank has posted a cash profit of $348 million in the year to June 30, some 7.7% more than its $323 million profit last year.
Its full-year net profit was $352.3 million, up 80.7% on last year $137.1 million which was hit by a $95 million writedown on its margin lending and wealth management divisions.
It said the profit it makes on loans was under pressure as low official cash rates caused competition for retail deposits and compression.
Managing director Mike Hirst says the bank has had solid results despite difficult trading conditions.
“Consumer confidence and demand for credit remains low, and competition remains very strong for retail deposits,” he says.
He says the low official interest rates nice for existing borrowers but says a broad return of consumer confidence is yet to come.
“While we expect to see relatively subdued credit growth in the coming 12 months, we remain confident that the unique Bendigo and Adelaide Bank business model will continue to resonate with customers.”
He says the support of customers and communities and its conservative funding and balance sheet structure meant it is well placed to benefit from any improvement in market sentiment and demand for credit.
"Our industry-leading retail and business customer satisfaction levels and the maintenance of an efficient business model becomes even more important in this environment," he said.
"At Bendigo and Adelaide Bank we will continue to leverage our unique strengths to take advantage of the significant opportunities that exist for our business."
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Bendigo and Adelaide Bank posts a cash profit 7.7% above last year

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."

[smartcode_project:default project_id=1979 project_image_fid=363228]

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."

[smartcode_project_cta:default project_id=1979]

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.

[smartcode_project:default project_id=150489 project_image_fid=373834]

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."

[smartcode_project:default project_id=150713 project_image_fid=373827]

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.

[smartcode_project:default project_id=151449 project_image_fid=357458]

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."

[smartcode_project:default project_id=151449 project_image_fid=357463]

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.

[smartcode_project:default project_id=151449 project_image_fid=357469]

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>.

[smartcode_project_cta:default project_id=151449]

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.

[smartcode_project:default project_id=134951 project_image_fid=368645]

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."

[smartcode_project:default project_id=134951 project_image_fid=358802]

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.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<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.

[smartcode_project_cta:default project_id=134951]

Alistair Walsh

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