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Monthly home loan repayments will rise 40% if interest rates return to 2008 highs and banks might not be taking this into account when lending, according to Fitch Ratings.
Monthly repayments on a $300,000 loan would increase from $1820 to $2544, severely reducing borrowers’ ability to meet their mortgage obligations.
Average standard variable interest rates (SVR) provided by large banks are now at 6.1%, with borrowers usually able to get discounts of 0.5 to 1.0 percentage point, according to Fitch Ratings. But SVRs were at 9.6% as recently as September 2008.
The Reserve Bank of Australia recently cut the interest rate for the eighth time since October 2011 to a record low of 2.5%.
“Australia's current low interest rates, coupled with high house prices and high household leverage, could expose borrowers to future payment shocks when interest rates rise,” Fitch Ratings says.
It says banks should be using serviceability tests using SVRs closer to historical averages than they currently do.
Most banks generally use a buffer of 1.5 to 2.0 percentage points higher than the existing rate when calculating serviceability as well as a minimum lending rate, but Fitch Ratings says this might not be enough.
“A minimum lending rate can capture the risk that rates return to average historical levels that are higher than the stress rate with the addition of a buffer.”
“An interest rates rise, together with the projected rise in unemployment, could adversely impact borrowers and residential mortgage vintages originated in a low interest rate environment.”
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Interest rate increases an eventual risk for borrowers: Fitch warning

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Census data contains a wealth of information for property investors but it can be difficult to burrow down through the Australian Bureau of Statistics website to find useful information.
It can provide in-depth data on the demographic makeup of a suburb but it can also show trends over time which can help identify possible hotspots.
First off, investors have to know that geographical boundaries changed in the 2011 census data, so they need to be careful when comparing previous census results to 2011 census results to make sure they’re the same.
The easiest way to start navigating census data is to go to the <a href="https://www.abs.gov.au/websitedbs/censushome.nsf/home/quickstats?opendocument&amp;navpos=220">ABS QuickStats page</a>. Most of our following tips start from there.
Who lives there?
If you’re looking at investing in a particular suburb it’s important to know who lives there, and ABS data makes it really simple to find if you know where to look.
If we want to see who’s living in the Melbourne suburb of <a href="/news">Burnley</a> just type Burnley into the QuickStats search and make sure you select the state suburb entry. The view here shows the basic results from the 2011 census and gives a good snapshot of the demographic make-up if you look under the <a href="https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/SSC20217?opendocument&amp;navpos=220">People section</a>.
The age section gives a good snapshot of whether you’re looking at a retiree village, a young family neighbourhood or a young professional zone. Compare the suburb ages to the state you’ll see if there’s more kids or more older people.
In Burnley you can see it’s heavily weighted towards young professionals with far fewer children and old people than the rest of Victoria and more than double the state average for 18 to 34 year olds.
If you look at the marriage tab you can see they’re mostly single and scrolling down to the education tab you can see they are far more likely to be university educated than the rest of the state which confirms their young professional status.
If you keep looking here you can check ancestry, income, occupation types and a host of other demographics.
All these help to decide whether you want to buy here and what sort of people you want to be targeting when buying property.
Identifying gentrification
Although census gives a great snapshot of income levels, it can also give a historical change so you can see if an area is undergoing an increase in earning power.
<a href="/news">Waterloo</a> was identified by Bernard Salt as being <a href="https://www.propertyobserver.com.au/new-south-wales/rising-incomes-pointing-to-13-emerging-suburbs-for-investment-potential-bernard-salt/2013081464225">one of Australia’s top suburbs with increasing income</a>, and using ABS stats we can confirm that for ourselves.
Go to the <a href="https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/communityprofile/SSC12434?opendocument&amp;navpos=230">Waterloo QuickStats page</a> and under the people tab we can see the various income measurements. In this case there is a median weekly household income of $905.
Compare that to the <a href="https://www.censusdata.abs.gov.au/ABSNavigation/prenav/ProductSearch?&amp;areacode=SSC12015&amp;producttype=QuickStats&amp;action=401">2006 census results for Waterloo</a>, accessed by selecting 2006 in the dropdown menu next to the QuickStats search box. The format is slightly different but we can see median weekly household income in 2006 was $557 –a 60% increase. It’s not quite as sophisticated as a full scientific survey but it gives a good indication of whether a suburb is earning more.
How good is public transport?
Looking at tram maps, bus networks and train stations can be quite deceptive in working out how good public transport in an area actually is. One easy way is to see how many people in a suburb actually use public transport to get to work.
Looking at <a href="/news">Boronia</a> this time, you want to find the <a href="https://www.censusdata.abs.gov.au/CensusOutput/copsub.NSF/All%20docs%20by%20catNo/2011~Community%20Profile~SSC20163/%24File/BCP_SSC20163.zip?OpenElement">basic community profile spreadsheet</a>. It’s under the <a href="https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/communityprofile/SSC20163">community profile</a> button next to the search box. After extracting the zip file, open it up in excel and find the method of travel by sex section. Boronia looks to be reasonably well connected to public transport but you can see that around 70% of respondents drive to work with only around 5% taking the train.
How popular is renting
Looking at 2006 stats versus 2011 stats you can find which suburbs are more popular for renters. If we’re looking at <a href="/news">Leederville</a> in Perth you can see from the <a href="https://www.censusdata.abs.gov.au/ABSNavigation/prenav/ProductSearch?&amp;areacode=SSC51821&amp;producttype=QuickStats&amp;action=401">2006 QuickStats page</a> 36.3% of residents were renting, if you look under Tenure Type. Compare that to <a href="https://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/SSC50434?opendocument&amp;navpos=220">the 2011 page</a> and you can see 43.1% of residents were renting, just look under the dwellings tab and then tenure. It’s not a quantum leap but it does help identify suburbs becomingly increasingly popular with renters.
There are a great deal more ways to harness ABS data to find investment hotspots, these are just some. The next step involves using the table builder function to compare hundreds of suburbs at once but it is a bit trickier.
The tips here can give a good insight into a suburb you may not know much about.
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The Property Observer guide to ABS census data research for smart property investors

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ANZ Banking Group has posted a cash profit of $4.8 billion for the first nine months of the financial year, up 11%, but it says revenue growth was slower than last year.
Revenue rose 5% in the nine months to June 30 while expenses fell 0.5% and provisions for bad debts fell 2%. This helped mitigate a squeeze on lending profit margins caused by low interest rates.
It reported unaudited statutory profit increased 7% to $4.7 billion, from the same period last year.
The growth was largely put down to its expansion in Asia and tightening of costs.
"During the year we have continued to make steady progress with out super regional strategy," chief executive Mike Smith said in a statement.
“We have produced consistent revenue growth with diversification benefits from our exposure to growth markets in Australia and in Asia.
At the same time, we are continuing to actively manage efficiency in every area of the business with a focus on improving productivity and capital utilisation.
He says consumer confidence should increase in the coming months while he played down concerns about China's growth.
"Although the economic outlook in Australia has softened somewhat, there is cause for greater optimism in the medium term as the effect of lower interest rates, a more competitive currency and the removal of some pre-election uncertainty underpin consumer confidence and economic activity."
"In Asia, we believe concerns about growth in China have been overdone. Although there is a rebalancing taking palce in China and there may be volatility associated with this, we need to remember that the world's second largest economy is still growing at around 7 to 7.5%."
In Australia ANZ said there is good momentum in commercial lending and deposits as well as in retail mortgage and deposits while household lending has grown above system for 14 consecutive quarters.
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ANZ posts $4.8 billion profit

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Property lecturer Peter Koulizos forecasts that all capital cities, with the possible exception of Hobart, should have new record high property prices sometime during 2014.
Australian Bureau of Statistics data shows property prices are on the rise from their global financial crisis lows but Koulizos says we still have some time to go.
 “Even though all capital city prices are on the way up, not all property prices are above their previous high. Sydney, Perth and Darwin have record high property prices but all the other capital cities still have a little way to go before they pass their previous peak,” he blogged on API Magazine.
“I forecast that all capital cities, with the possible exception of Hobart, should have new record high property prices sometime during 2014.
“Yes, the worst is over but in my opinion we still have a little way to go before we can all breathe a sigh of relief.”
But he says historically low interest rates will ensure property prices should bounce back quickly.
According to the ABS the different capital cities experienced their global financial crisis lows at different times.
Darwin was the first hit in June 2011 quarter, followed by Canberra and Perth in September 2011 quarter. Next was Sydney in the December 2011 quarter. Brisbane was next hit in the June 2012 quarter, followed by Melbourne and Adelaide in the September 2012 quarter and finally Hobart in the December 2012 quarter.
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Property prices to return to pre-GFC highs in 2014, except Hobart: Peter Koulizos

A $1500 a night holiday home on Hamilton Island has been listed for sale at more than $4.5 million.

The <a href="https://www.propertyobserver.com.au/queensland/countdown-to-summer-round-house-on-hamilton-island/2012121158401" target="_blank">Round House</a>, designed by architect Peter Conley and built in the late 1980s is a four bedroom home, all with en-suites, a media room, a curved staircase and a salt water solar heated infinity pool that wraps itself around the exterior.

At <a href="https://www.realestate.com.au/property-house-qld-hamilton+island-114332235" target="_blank">31 Melaleuca Drive</a> the 4112 square metre luxury getaway can sleep 14 people.

It includes a one-bedroom cottage with a private driveway at the bottom of the property.

The property has been recently renovated at a cost of $1 million and is now wheelchair friendly with access ramps and an elevator.

It perches on the eastern side of One Tree Hill and has 180 degree ocean views over Catseye Beach and the Hamilton Island Resort.

The design of the house offers 12 hours of tropical sunshine all around the house.

It is being sold by Wayne Singleton of Hamilton Island Real Estate.

The vendor of the house is reportedly the O&rsquo;Brien family, based in Melbourne.

Sales on the island have reportedly been slow with more than 100 homes on the market.

Agent Mark Beale of Ray White Whitsunday told The Australian Financial Review there are three to four sales in a month on the island meaning the market is well oversupplied.

Prices have been reduced on the island but the rents are still strong.

&ldquo;We&rsquo;ve sold houses for $700,000 that generate $40,000 a year in rental income, they pay for themselves,&rdquo; Beale said.

&ldquo;Occupancy rates have been anywhere from 50% to 100% better on the island than on the mainland.&rdquo;

Ownership of land in the area operates under a 99-year leasehold system.&nbsp;

Winemaker Robert Oatley paid $200 million for the island in 2003.&nbsp;

Hamilton Island Round House listed at $4.5 million

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Many young potential property buyers are willing to forego a first-home owners grant in favour of buying an investment property as opposed to a home, according to a Mortgage Choice survey.
More than 40% of generation Y respondents to the first time property investors survey said that their planned investment property will be their first ever property purchase.
Most generation Y respondents, born between 1980 and 1994, were motivated to purchase their first investment property by the need to set themselves up financially for the future.
"Gen Ys appear to be financially switched-on and are focusing on property investment,” says Mortgage Choice’s Belinda Williamson.
Almost half of respondents said there is a perception that there is more benefit in investments such as property over the share market.
"This younger generation of investors is looking for financial freedom and they see more profit in bricks and mortar investments," Williamson says.
They are willing to make a number of sacrifices in order to realise their purchase though, with 18% of respondents willing to take on another job to make the purchase, while 41% said they would miss out on a holiday.
"Finding the right property is half the challenge for most investors; the other half is saving the deposit and settling on an investment strategy that will help them to achieve their goals," Williamson says.
"Our survey shows 75% of Gen Y first time investors were choosing to make lifestyle sacrifices to help them achieve their property goals. The top five lifestyle sacrifices included cutting back on general day to day spending, eating out less and limiting take-away food, missing out on a holiday, delaying a vehicle purchase and last but not least, cutting back on alcohol related expenses."
Photo courtesy of <a id="yui_3_7_3_3_1376553138701_895" href="https://www.flickr.com/photos/pistruiatu/">pistruiatu</a>/ flickr.
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Gen Y willing to skip first-home owners grant to buy an investment property

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Two retail units in Victoria’s Falls Creek ski village have been offered for sale with marketing towards owner occupiers or investors.
The first is a 952 square metre shop leased to Falls Creek Ski Lifts on a nine year lease worth $450,000 a year plus GST.
<img alt="falls_creek_aug_28_one" height="353" width="470" src="/images/stories/2013/08/falls_creek_aug_28_one.jpg">
It houses a ski hire shop, a board lounge and the Apres Vous ski apparel shop.
The second is two ground floor lots totalling 105 square metres being sold in one line.
The units are part of the St Falls Quay West Development in the Falls Creek village.
They are being sold by Christa Zirknitzer of RT Edgar Alpine in conjunction with Ray White Commercial.
“The two units are ideally situated in the ski in, ski out public traffic zone of the retail ski village, offering exposure and positioning for retail activities,” Zirknitzer says.
Zirknitzer did not disclose any price guide for the <a href="https://www.fallscreekretail.com.au/">properties</a> which are being sold by tender ending September 2.
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Two retail offerings in the Falls Creek ski village 

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Property developer Ron Walker says many parts of Melbourne’s unit market are oversupplied with too many small apartments coming to market too quickly.
But he says high quality apartments in the right areas will sell well and his company Evolve Development continues to release units.
“There are certain areas in the city we wouldn’t touch with a 40-foot pole,” Walker told BRW.
“There’s a lot of stock that has come to market very quickly, and they are small apartments where people are living within metres of each other.”
Walker, along with co-directors Ashley Williams and Kris Daff just opened the Melbourne apartment project The Guilfoyle at the former Channel 7 near the Botanic Gardens, which sold off the plan in 2010, despite four owners defaulting.
“If you build quality product, they always sell,” he says.
Evolve has 1000 apartments in the planning stage and about 7000 residential lots in masterplanned communities to be released over the next decade.
It also has the 227-unit Monarch development to be completed in October.
“Our experience to date has been apartments have all rented out very quickly and the rental levels are holding up well,” his business partner Ashley Williams told BRW.
“I think there might be a bit of oversupply coming through in the next 12 to 24 months, but I think that will be quickly digested as people choose to move into these high-amenity areas.”
He says historically low interest rates have increased market confidence but sales in large apartment buildings remain slow despite some improvement in land subdivision sales.
“I think if you look at the established house market there has certainly been a big pick-up in competition,” Williams says.
“There seems to be a lot more competitive auctions happening on the weekend. I think medium term we will get back to steady growth after a couple of sideways years. It will happen first in the inner suburbs and ripple out to medium and outer suburbs.
“Most of the economic signs in Victoria are still pretty strong.”
 
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Too many too small: property developer Ron Walker warns of Melbourne apartment woes

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SQM Research director Louis Christopher says despite recent price increases there is no price bubble to worry about.
“No sooner has a housing recovery been confirmed, than the loud voices go straight to assuming we have a looming property bubble on our hands,” Christopher noted.
“The voices seem to range from those who have no experience or qualifications to speak on this sector through to those who should know a lot better.
He says most capital cities are just experiencing a modest recovery rather than displaying any kind of boom conditions.
“It is just Sydney, Perth and Darwin that have been recording more rapid price rises.”
“If we were to see national housing prices sustaining annualised increases of 7% plus for a considerable period then that is something to watch for. However, it just simply isn’t happening yet.”
“There is no doubt in my mind that interest rates are helping the recovery along and there is also no doubt in my mind that the RBA will look at the national result rather than just what is happening in the Sydney housing market.”
SQM has recently launched a vendor sentiment index which shows vendor asking prices on capital city houses are up 3.7% for the year to $667,100. They are up 0.7% for the month but down 1.7% for the week.
Sydney had the most pronounced weekly change in vendor asking prices, up 4.2% to $898,400 and 7.8% for the year.
Melbourne vendor asking prices for houses are up virtually unchanged for the year, but up 1.4% in the past week.
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Slight uptick but no looming price bubble: SQM's Louis Christopher

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Wall Street Journal senior economics reporter James Glynn says the mining boom in WA might not be totally over.
The iron ore price has hit US$142.80 – the highest point in five months, running counter to predictions by many that the price could drop below $100 this year.
<a target="_blank" href="https://twitter.com/JamesGlynnWSJ"><img alt="tweet-of-the-day-aug-15" height="135" width="470" src="/images/stories/2013/08/tweet-of-the-day-aug-15.jpg"></a>
Credit Suisse analyst Paul McTaggart told The Australian Financial Review he expects the price will come back down but not as much as previously thought.
“I don’t think iron ore will stay at US$130 a tonne. We are heading into a seasonal period of weakness when China construction demand weakens so I think iron ore prices will moderate. However, prices might come down to what will remain a relatively robust level – and come March of next year, when China is back online, iron ore could rally from a higher level,” he told the paper yesterday.
Perth was identified as having <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/rising-incomes-pointing-to-13-emerging-suburbs-for-investment-potential-bernard-salt/2013081464225">the three top suburbs with the greatest increase in earning capacity.</a>
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Iron ore is up so don't rule Perth out

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.

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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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