<html><body>
Credit card debt will jump 2% in January, following a Christmas consumer spending binge, financial comparison website Rate City predicts.
It predicts credit card providers will earn an extra $10.7 million in credit card interest payments over January.
It says the average credit card interest rate is around 17%.
“On average, January is the month where Aussies stack on the most credit card debt and it’s a good bet they’ll be higher again in January 2014 – for a start, there are over 200,000 more credit cards on issue than there were last Christmas,” Alex Parsons, chief of RateCity.com.au says.
“Interest rates on credit cards remain very high at around 17% on average, and range up to 22.99%, so consumers who carry debt should look at switching to get a better deal.”
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
</body></html>

awalsh-7Ub9EypybQ

Credit card debt to jump 2% in January

<html><body>
Premier Campbell Newman turned the first sod on the new Toowoomba Ring Road today.
The Victoria Street extension is the final link in Toowoomba’s Outer Circulating Road system and involves the construction of a new four-lane road to connect Victoria and Russell Streets with Chalk Drive and Ruthven Street.
“Construction of a new Toowoomba ring road will better protect the CBD from floods and make it easier to get from one side of the city to the other,” Newman says.
“The Toowoomba Regional Council will receive $45 million and a further $5 million for flood mitigation works on the West Creek Railway Bridge through our Government’s landmark Royalties for the Regions program.”
It should be open to traffic by the end of 2014.
Flood mitigation measures include the construction of a three span bridge and widening of the creek channels in the area.
The Outer Circulating Road Victoria Street extension project includes
•             A new four lane sub-arterial road extending Victoria Street from Russell Street through Queensland Rail land to connect with the Chalk Drive-Ruthven Street intersection, including a major three span bridge over the West and East creeks;
•             An upgrade of the Russell-Victoria Street intersection, including an upgrade of the existing Russell Street drainage structure;
•             An upgrade of the Ruthven Street-Chalk Drive intersection and an upgrade of West Creek channel; and
•             Widened shoulders for cyclists, and a separate footpath for pedestrians on the new section.
 
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
</body></html>

Toowoomba ring road construction starts

<html><body>
Overseas Asian buyers in the Gold Coast accounted for a quarter of all sales in October for Ray White Surfers Paradise, clocking up $21.5 million over 46 sales.
Most buyers came from China with additional interest from Malaysia and Singapore.
Most sales were close to universities and schools or central to tourist hubs of Surfers Paradise and Broadbeach.
The group is currently in negotiations for a further $200 million in sales to Asian buyers, including a number of development sites.
Chief of Ray White Surfers Paradise Andrew Bell says the lifestyle of the Gold Coast attracted Asian buyers ahead of cities like Brisbane.
“Lifestyle is also a factor and is probably the main reason the Gold Coast is outstripping Brisbane’s performance in attracting Asian buyers,” Bell says
“A large proportion of Asian buyers also invest with a view to sending their children here to attend university, college or an English language institution.
“Many Australians mistakenly think Asian buyers will pay a premium for property which is rarely the case, but the great benefit to sellers is they are cash purchasers who aren’t dependent on bank finance or valuations.”
There were a number of sales to Asian buyers in high-end developments including the loss-machines <a href="https://www.propertyobserver.com.au/queensland/hilton-surfers-paradise-resale-price-collapse-for-but-one-exiting-property-investor/2013082164115">Hilton Surfers Paradise</a> and <a href="https://www.propertyobserver.com.au/news/poor-fortune-for-those-who-went-to-the-oracle-on-the-gold-coast/2013082664548">Oracle</a> as well as The Glades at Robina and The Address at Sanctuary Cove.
RELATED READING: <a target="_blank" href="https://www.propertyobserver.com.au/news/why-australia-must-deepen-its-asian-investment-relationships/2013112366455">Why Australia must deepen its Asian investment relationships</a><a target="_parent" href="/news"> Asian investors keen on Australian inner-city units: Peter Chittenden</a>
awalsh@propertyobserver.com.au 
</body></html>

Asian buyers make up a quarter of buyers in Gold Coast

<html><body>
More than 22% of residential properties in Southbank and 11% in Docklands are potentially vacant, according to a survey which monitors water usage.
Across Melbourne there are more than 75,000 potentially vacant properties, according to a report commissioned by social justice organisation Prosper.
Data from Melbourne’s water retailers show 4.4% of Melbourne properties used an average of less than 50 litres of water a day and 0.9% consumed no water for the 2012/2013 financial year.
In July last year a similar report found a vacancy rate of 5.9%. Then Essendon North and Docklands were the most vacant suburbs.
The average resident used 161 litres per day over the same period 2012/13 and the average household used approximately 419 litres per day.
“Landlords have an incentive to withhold properties from the rental market as they profit from rising capital values rather than from long-term rental income,” the report titled Speculative Vacancies in Melbourne 2013 says.
“A substantial land value tax would blunt capital appreciation and serve as a withholding cost, shifting the incentive to profit from rental income rather than capital gain.”
The report says a water leak could be enough to push a property above the cut-off point of 50 litres.
Occupied properties with very low water usage (such as single tenants who frequently travel), properties on the market (both rental and sale), and serviced apartments may dip below the threshold.
But these are counter-balanced by apartment blocks using a single water metre which would hide many unoccupied properties.
The report calls into question the figures published by the Real Estate Institute of Victoria.
“The REIV uses a fragmentary and unreliable rental dataset to calculate vacancy rates. The methodological issues provide, at best, inaccurate findings, and, at worst, severely understated vacancy rates,” it says.
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
</body></html>

Water usage reveals high vacancy rates in Southbank and Docklands

<html><body>
House sizes increased half a percent a year since 2001, five times the rate of apartments, according to RP Data.
The average area of a new house across Australia increased from 227.50 square metres to 241.10 square metres from 2001 to 2013.
<img alt="housesizes" height="288" width="470" src="/images/stories/2013/11/18/housesizes.jpg">
Over the same period the average floor area for apartments and townhouses increased from 132.6 square metres to 133.9 square metres – an annual growth rate of 0.1%.
But according to data released earlier this week by the Australian Bureau of Statistics the average floor area of a new home is now starting to fall.
Since 2008 the average floor area of a new house has fallen from 247.7 square metres to 241.1 square metres.
The average size of other new residential properties peaked much earlier in 2004 at 143.4 square metres and has since fallen to 133.9 square metres.
RP Data research analyst Cameron Kusher says the fall comes from escalating vacant land costs, smaller lot sizes and affordability pressures.
“The result of escalating prices and a reduction in land area is that buyers pay a lot more and in return, get significantly less land. This is highlighted by the fact that the median rate square metre of vacant land has lifted from just $86 per square metre in 2000-01 to $361.40 square metre in 2012-13 (an increase of 12.7% per annum),” Kusher says.
“As vacant land costs continue to increase, it is no wonder that the size of new houses has started to reduce. The cost of buying or building a new house is becoming restrictive. In response developers and builders are reducing lot and house sizes in order to provide houses at more affordable price points.”
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
</body></html>

House sizes falling after decade-long rise

<html><body>
Leighton Properties has sold a North Sydney development site to Singaporean investment group Suntec Real Estate Investment Trust for $413.19 million.
Leighton Group will take a head lease over 76% of the office space at 177 Pacific Highway, a 30-storey 40,000 square metre commercial development.
The deal was negotiated by Paul Noonan and Simon Storry of Jones Lang LaSalle and Josh Cullen and Richard Butler of CBRE.
It’s the first major commercial development in North Sydney in six years in an area increasingly dominated by residential conversions.
Leighton are aiming for a five star Green Star and five star NABERS energy rating.
“It is a strategic fit with Suntec REIT’s portfolio of high quality commercial assets. We are excited about partnering with Leighton on this project which will be their corporate headquarters in Sydney. We look forward to its completion in early 2016,” Suntec REIT chief Yeo See Kiat says.
Suntec REIT is Singapore’s second largest listed SREIT by asset under management.
Suntec’s current portfolio includes ccommercial properties in Suntec City, Park Mall, a one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.
Leighton Holdings chief Hamish Tyrwhitt says the site was keenly sought after by local and international buyers.
“(The sale) is testament to the building’s design and it is in line with our strategy to align with key investors and efficiently use our capital through pre-selling developments,” Tyrwhitt says.
<a href="mailto:awalsh@propertyobserver.com.au" target="_blank">awalsh@propertyobserver.com.au</a>
</body></html>

Leighton Properties sells North Sydney site to Singaporeans for $413 million

<html><body>
Gross rental yields have decreased to the point where it’s cheaper to rent than to buy this year according to SQM’s latest index, which measures implied gross rental yields.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/11/15/sqm-nov-15-chart-big.gif" rel="shadowbox"><img src="/images/stories/2013/11/15/sqm-nov-15-chart-small.gif"></a>
The new index looks at rents before costs such as agent fees, council fees, maintenance and taxes divided into the median sale price for the locality.
It finds there has been a moderate decline in yields for houses over the course of this year while unit rental yields have remained stable.
In Sydney rental yields have been falling as house prices rapidly increase.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/11/15/sqm-nov-15-chart-two-big.gif" rel="shadowbox"><img src="/images/stories/2013/11/15/sqm-nov-15-chart-two-small.gif"></a>
Rental yields for houses in Sydney is about 3.7%, and 4.5% for units.
“They are actually very tight yields and would suggest to us that in Sydney at least, it’s cheaper to rent right now than to buy when just considering year one cash flows,” SQM’s Louis Christopher says.
Darwin has the highest capital city yields with yields for both houses and units at 5.5%.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/11/15/sqm-nov-15-chart-three-big.gif" rel="shadowbox"><img src="/images/stories/2013/11/15/sqm-nov-15-chart-three-small.gif"></a>
“Yields in Darwin may well rise in the future as right now we are recording rising rents for that city, while it seems dwelling prices have stalled of late,” Christopher says.
</body></html>

Cheaper to rent than to buy in Sydney: SQM

<html><body>
The Victorian government has allocated $250,000 to assist the City of Wodonga’s plan for the Leneva-Baranduda growth corridor.
Wodonga hopes to build houses for an additional 35,000 people, with 14,000 new homes. It also hopes to create 6000 jobs in the area.
The extra funding pay for the structure planning of the  Leneva growth area and the implementation of a new urban growth  zone for the area.
“The Leneva growth corridor will support economic growth and development  in the region and greatly assist in supporting the commercial development  of Wodonga’s CBD, where there is already a major urban renewal project  underway,” Minister for Planning Matthew Guy said.
The growth area will eventually link the urban areas of Wodonga to Baranduda.
Member for Benambra Bill Tilley said development of the Leneva growth corridor is vital to maintaining a strong local construction and development sector and local job growth.
“As the local member of parliament, I am proud to see that this government  is doing all it can to continue strong growth and demand in our local  construction and development sectors which is central to maintaining a  strong and competitive local economy.”
 
</body></html>

Victorian government injects $250,000 into Wodonga growth area planning

<html><body>
The four most discounted properties in Australia were in Queensland this week, according to SQM Research.
A dilapidated three bedroom outer Ipswich Queenslander is this week’s most discounted property.
It comes on 1.49 hectares of land and backs onto the Bremer river which overflowed in 2011 and flooded the house.
Agent Tony Tran from Ray White Darra says it would cost $20,000 to bring it up to a liveable condition and the true value of the property lies in land and river frontage. The address is <a href="https://www.realestate.com.au/property-house-qld-bundamba-111116347" target="_blank">22 White Street Bundamba</a> (pictured below).
It’s currently priced at $249,000 – a discount of 41% from its original listing price 461 days ago.
{yoogallery src=[images/stories/2013/11/15/bun]}
 
Next is a two bedroom house at <a href="https://www.realestate.com.au/property-house-qld-lamb+island-112206275" target="_blank">4 Edgewater Place Lamb Island</a> (pictured below).
Originally priced at $425,000 three years ago it’s now priced at $249,000 – also a discount of 41%.
{yoogallery src=[images/stories/2013/11/15/lamb]}
 
Next is the nearby three-bedroom house with a spa at <a href="https://www.realestate.com.au/property-house-qld-lamb+island-104666603" target="_blank">79 Perulpa Drive Lamb Island</a> (pictured below).
It comes with views over Moreton Bay.
Originally priced at $499,000 three years ago it is now at $298,000 – a 40% discount.
{yoogallery src=[images/stories/2013/11/15/lamb2]}
 
Next is <a href="https://www.realestate.com.au/property-house-qld-doolandella-115195015" target="_blank">38 Cloverdale Road Doolandella</a> (pictured below) –a four bedroom house.
It has 1.34 hectares of land, two bathrooms, two car ports, and a big shed.
Nine months ago it was priced at $1.65 million but that’s been reduced by 39% to $1 million.
{yoogallery src=[images/stories/2013/11/15/don]}
 
And fifth is <a href="https://www.realestate.com.au/property-house-nsw-copacabana-114538531" target="_blank">61 Vista Avenue in Copacabana</a> (pictured below) near Woy Woy.
According to SQM Research it was initially listed for $1.79 million eight months ago and was this week listed at $1.1 million –a difference of 39%. It has since sold.
{yoogallery src=[images/stories/2013/11/15/cop]}
 
Property Observer notes the listing is divided in two sections, <a href="https://www.domain.com.au/Property/Sold/House/NSW/Copacabana/?adid=2010302238">one with a house</a> and <a href="https://www.realestate.com.au/property-house-nsw-copacabana-114538531">one with a granny flat</a>, which may account for the price difference.
{module Which of the top five most discounted properties represents the best buying opportunity?}
Top 10 most discounted properties nationwide
<table border="0" cellpadding="0" cellspacing="0" style="width: 470px;">
<colgroup>
<col width="179">
<col width="113">
<col width="64">
<col width="83">
<col width="81" span="2">
<col width="64">
<col width="98">
</colgroup>
<tbody>
<tr height="35">
<td height="35" width="179">Address</td>
<td width="113">Suburb</td>
<td width="64">Postcode</td>
<td width="81">Initial price</td>
<td width="81">Now asking</td>
<td width="64">Reduction</td>
<td width="98">Days on Mkt</td>
</tr>
<tr height="21">
<td height="21"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-bundamba-111116347">22 White Street</a></td>
<td>Bundamba</td>
<td align="right" width="64">4304</td>
<td align="right" width="81">$425,000</td>
<td align="right" width="81">$250,000</td>
<td align="right" width="64">41%</td>
<td align="right" width="98">461</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-lamb+island-112206275">4 Edgewater Pl</a></td>
<td>Lamb Island</td>
<td align="right" width="64">4184</td>
<td align="right" width="81">$425,000</td>
<td align="right" width="81">$249,000</td>
<td align="right" width="64">41%</td>
<td align="right" width="98">1190</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-lamb+island-104666603">79 Perulpa Dve</a></td>
<td>Lamb Island</td>
<td align="right" width="64">4184</td>
<td align="right" width="81">$499,000</td>
<td align="right" width="81">$298,000</td>
<td align="right" width="64">40%</td>
<td align="right" width="98">1176</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-doolandella-115195015">38 Cloverdale Road</a></td>
<td>Doolandella</td>
<td align="right" width="64">4077</td>
<td align="right" width="81">$1,650,000</td>
<td align="right" width="81">$1,000,000</td>
<td align="right" width="64">39%</td>
<td align="right" width="98">266</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/Sold/House/NSW/Copacabana/?adid=2010302238">61 Vista Avenue</a></td>
<td>Copacabana</td>
<td align="right" width="64">2251</td>
<td align="right" width="81">$1,790,000</td>
<td align="right" width="81">$1,100,000</td>
<td align="right" width="64">39%</td>
<td align="right" width="98">245</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.toop.com.au/details.asp?id=14586">Lot 106 Starrs Gully Road</a></td>
<td>One Tree Hill</td>
<td align="right" width="64">5114</td>
<td align="right" width="81">$2,200,000</td>
<td align="right" width="81">$1,390,000</td>
<td align="right" width="64">37%</td>
<td align="right" width="98">791</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/For-Sale/Penthouse/NSW/Bondi-Junction/?adid=2008805959">69/267 - 269 Oxford St</a></td>
<td>Bondi Junction</td>
<td align="right" width="64">2022</td>
<td align="right" width="81">$2,500,000</td>
<td align="right" width="81">$1,650,000</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">994</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestateview.com.au/Real-Estate/157-milleara-road-keilor-east/Property-Details-buy-residential-3989721">157 Milleara Road</a></td>
<td>Keilor East</td>
<td align="right" width="64">3033</td>
<td align="right" width="81">$448,000</td>
<td align="right" width="81">$296,000</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">531</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/?adid=2008522518">134 Bay Road</a></td>
<td>Berowra Waters</td>
<td align="right" width="64">2082</td>
<td align="right" width="81">$1,199,000</td>
<td align="right" width="81">$795,000</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">1169</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/?adid=2009224257">55 William Street</a></td>
<td>Sedan</td>
<td align="right" width="64">5353</td>
<td align="right" width="81">$165,000</td>
<td align="right" width="81">$109,500</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">784</td>
</tr>
</tbody>
</table>
<a href="mailto:awalsh@propertyobserver.com.au" target="_blank">awalsh@propertyobserver.com.au</a>
</body></html>

Queensland dominates list of most discounted properties

<html><body>
Buyer’s agent Miriam Sandkuhler, founder of <a target="_blank" href="https://www.propertymavens.com.au/" rel="nofollow" style="font-size: 14px;">Property Mavens</a>, says many early-stage investors don’t understand their risk profile when they start building their folio. Sandkuhler was a finalist for the 2013 REIV Buyer’s Agent of the Year.
She says more risk adverse clients should avoid off-the-plan properties, as well as student or holiday accommodation.
{qtube vid:=m3cXd9A1li0}
“People don’t understand their tolerance to risk in terms of the type of return they’re going to get,” Sandkuhler told Property Observer for the 'How the experts buy' series.
“A high risk profile person would be someone who’s prepared to develop a property or renovate. Someone who’s more conservative and low risk is someone who’s otherwise more likely to leave their money in the bank or pay for a property in cash because they don’t like debt.”
She says buying off the plans comes fraught with risk.
“They’re to do with whether the developer gets financing, whether they’re a good builder, time frames of the development,” she says.
“It depends on the zoning of the property, if you have student accommodation or short stay accommodation that can have a level of risk.
“It means that the market from a resale point of view is a lot smaller and from a lending or a finance point of view you may not be able to borrow as much money so you’ll have to have a much bigger deposit to get into it.”
She says many investors are enticed by the idea of having as big a property portfolio as possible.
“Having multiple properties you have to manage multiple properties and there are maintenance issues that come with that.”
“If all you need are six really really good properties of a certain value then that’s all you need.”
 
Transcript
My name is Miriam Sandkuhler. I’m the founder of <a target="_blank" href="https://www.propertymavens.com.au/?">Property Mavens</a> which is a specialist property advisory firm. I’m an accredited property advisor and a licensed estate agent. And I basically work with investors to ensure they buy the right type of property for the right reasons.
People don’t necessarily know their tolerance to risk in relation to the type of return they’re going to get. Some people are much more conservative with investing than others. Some have got quite a low to moderate risk profile whereas other are higher risk profile. An example of a high risk profile individual is someone is prepared to develop a property or renovate.
Someone who’s more conservative or low risk is someone who might otherwise like to leave their money in the bank or they might like to pay for a property in cash because they don’t like debt or they might want to something very simple.
For example, if you don’t know your risk profile then it’s very easy to buy the wrong property for you profile for all the right reasons. If you don’t the type of risk attached to the type of property that you buy it’s also very easy to make a mistake.
If you buy off the plan there are a lot risks associated with that and they’re to do with very the developer gets the lending, whether or not it’s a good builder, time frames of the development. There a number of different areas. The market can go up and down. And we’ve seen a lot of that where people are settling on properties where it’s worth less than the contract price.
There are so many variables and so many risks associated with buying off the plan that most people aren’t informed off because obviously that’s not necessarily brought to light when people are purchasing in that manner.
Someone with a low risk profile probably doesn’t want to buy a development site. They may not want to buy an off-the-plan. When you understand your risk profile and you understand the risk of the property then you can make a better informed decision.
Alistair: What other properties do you think are higher risk profile?
So for example it depends on the zoning of the property. IF you have student accommodation, or short term or resort style accommodation that can have a level of risk because what it inherently means is from the market point of view the resale value is a lot smaller. It also means from a lending or finance point of view you may not be able to borrow as much money so you’ll have to have a much bigger deposit to get into it. The returns on that type of investment can be affected by the type of property it is.
Buying property is not simple. I know most people want an easy solution. It’s a little bit like going to the doctor for a headache and wanting a pill when in fact what they probably need is surgery.
So when you invest in property it’s easy to sign a contract but the process of understanding about what makes a good investment grade property and how to match that to your risk profile and having a plan in place all of those things are quite complex and they do take time and they take investigation.
I’ll often deal with clients who want to buy property but they have no clear reason as to what they want it to do. So they know it’s kind of the in thing and that’s what you do but they don’t know what the end result is. If you don’t have a plan it’s a little bit like trying to build a house without a set of plans. There’s no foundation from which to build the rest of the structure around. Having a documented plan is knowing how old am I now, when do I think I want to retire, how many years away is that. What sort of lifestyle do I want? If I want a $100,000 income it’s needing to calculate I have x number of years to accrue that. So what’s the process to get that and how many properties do I need to buy and how often do I need to buy them to meet my specific requirement. Part of that process is, I know everyone if out there spruiking buy 10 properties in 10 years. It’s not about how many properties you have. Obviously with having, multiple properties you have to manage multiple properties and there are maintenance issues that come with having multiple properties. So it’s about having a tailored plan specific to your individual needs. If all you need are six really really good properties of a certain value then that’s all you need. Unless you just endlessly want to keep going for the sake of it. Not everyone needs to have 10 or 20 or 200 properties, it’s not necessarily about that.
It’s understanding what is that asset going to do for you, what do you need it to do for you. And making sure that you’ve got a foundation or a documented strategy you can then implement and you can then measure back to that strategy. Every year you can see are you on target for that strategy, how far do we have to go so what do we need to do, when do we need to do it and monitoring that as you go.
It’s imperative to never ever sign your name to anything. Even if you have a three day cooling off, from a cautionary point of view you still want to get that looked at before you put pen to paper because there’s complexity around that. It’s law, you’re signing a legally binding contract and if you have haven’t had a lawyer or conveyance point out to you areas of risk or consideration then you’re leaving yourself vulnerable.
Again buying property is complex, you’re dealing with real estate law and legislation. If as a lay person you don’t have a really good understanding of real estate law then it’s possible to easily make mistakes that cost you money. You’re talking about needing to understand from an accounting and tax point of view before you start, how you need to structure a property; even before a name gets put on paper you need proper tax and accounting advice. Same with can you afford the property, you want to be seeing a mortgage broker who can look at your situation and work out what options are available to you and how many options there are in the market place that can help you.
The other thing is understanding that you need to be doing building and pest inspections s that before you buy the property at auction you understand the structural condition of it. There might be issues where’s the repairs or work that needs to be done so if you’ve got $20,000 worth of work on a property you need to factor that in when you’re buying or bidding on a property, you need to keep that in the back of your mind. Or at least allow for it.
If you buy a property and it’s not auction but private treaty, same thing, you want to be putting a condition in there that’s a building and pest inspection but it’s written in the favour of the buyer, not in the favour of the seller.
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
</body></html>

Common investor mistakes when building a portfolio: How the experts buy with Miriam Sandkuhler

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

Joel Robinson

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]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

Alistair Walsh

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News