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Corporate Australia is looking to reduce costs associated with real estate, according to Ernst &amp; Young research.
Companies are cutting accommodation costs, which make up 10-15% of overall costs, according to Ernst &amp; Young Capital Confidence Barometer.
Partner of the company Richard Bowman says any costs associated with owning and occupying real estate are high on the cost-cutting agenda for Australian companies.
“We are seeing tenants reducing the space they occupy and owners selling down any surplus sites they have,” Bowman says.
“Clients want to know what potential levers they have at their disposal to minimise occupancy costs, from fighting market rent reviews, reviewing service contracts through to challenging outgoings such as rates and taxes.”
Bowman says real estate companies should be changing tactics to work with corporate clients.
“The real estate sector should be taking advantage of flexible deal structures to fulfill their growth agenda by using development agreements, joint venturing and extended term contracts to help get deals done,” Bowman says.
According to the report there will an increase in sub-lease office leasing over the next 12 to 18 months will put downward pressure on net effective rents across most parts of the market.
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awalsh-7Ub9EypybQ

Australian companies cutting real estate expenses: Ernst & Young

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A former butcher shop now office boutique office space has been listed for sale in Sydney’s inner west.
The 1890s <a href="/news">Petersham</a> butcher shop now has five commercial offices and a two-bedroom home upstairs.
The corner building is currently home to The Back Room designer outlet.
The property comes with four separate entrances for the various functions.
It is being sold with tenants or vacant possession.
The upstairs residence has two bedrooms, one with a walk-in robe and ensuite. It has a large living area with timber floors and a separate dining area.
The office space opens to a rear veranda and private garden courtyard and the residence opens to an elevated barbecue terrace.
Agent Jennifer Aaron is selling the property with expectations of more than $1.4 million.
Half the property is currently occupied by The Back Room owner, who lives upstairs.
If the property were bought by an investor for $1.5 million the potential yield of the property would be 8.5%-9%.
The vendor has been renovating the property for some time.
Aaron says she has received significant interest from advertising agencies and marketing companies as well as from potential investors.
Aaron says there is scope to reconfigure the property into one residence or to divide into two single-level dwellings, subject to council approval.
The property, at <a href="https://www.domain.com.au/Property/For-Sale/House/NSW/Petersham/?adid=2010069379" target="_blank">74 Palace Street</a>, comes on 227 square metres. It goes to auction on November 24.
The vendor bought the property in 2000 for $550,000. Prior to this it sold for $360,000 in 1995 and $210,000 in 1988.
The property was an entrant in the 2010 Marrackville Medal award, which recognises conservation work in historically significant properties.
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Former butcher shop-turned-office space listed in Sydney's inner west

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The developer of the collapsed Soul Development in Surfers Paradise, Juniper Group, has listed lots in five retail properties in Mooloolaba as part of a massive portfolio sale.
Juniper Group will be selling $100 million of retail property across Queensland following the appointment of receivers to its Soul development.
"The directors have decided to take their retail portfolio, valued in the vicinity of $100 million, to the market," a company spokesperson told The Australian.
"A big proportion is property along the Mooloolaba Esplanade, Mooloolaba, and they will sell commercial and retail property in north Queensland."
Juniper Group has listed 38 lots in <a target="_blank" href="/news">Mooloolaba </a>worth about $30 million. Collectively they earn more than $3 million in rent per year.
The retail shops are all close to the beach in Mooloolaba. Four are on Mooloolaba Esplanade and one is on River Esplanade.
All the lots were built by Juniper since 1997.
Zanzibar retail is a series of 14 shops that are up for sale in one line or individually. Fully leased they earn $1.55 million in rent per year. The arcade comes with outdoor licensed areas.
Zanzibar has a total of 1,099 square metres of net lettable area and includes four ATM tenancies leased to major banks.
Built in 1999, the shops in Zanzibar range from 45 square metres to 156 square metres.
The site value, accessed by the Queensland state government, is $9,300,000 as at June 30, 2012.
The most lucrative tenancy in the development is a 121-square-metre shop leased to Yoghurt World for $242,000.
Aside from the ATM tenants, which pay around $12,000 per year each, the highest rent per square metre in the building is paid by Déjà vu Café &amp;Bar, which pays $2,794 per square metre.
Total forecast outgoings come to $196,745 for the 2012-13 financial year.
Aegean retail is two titles on River Esplanade – a 116-square-metre vacant lot with a projected income of $76,908 and a 30-square=metre lot with a net income of $29,928 from a massage shop.
Malibu is a single 132-square-metre lot with a carpark leased to David Hart Galleries for $200,619 per annum.
Landmark retail is a series of 12 lots in a shopping centre, nine of which are leased, three are vacant.
The lots range in size from 42 square metres to 322 square metres.
The most lucrative lease comes from a restaurant called Bellissimo on 108 square metres plus an outdoor area. It has outgoings of $16,048. Other tenancies are restaurants, a hair salon and a day spa.
Oceans retail is a series of nine lots, six of which are leased. The lots range from 35 square metres to 230 square metres.
The most lucrative tenancy comes from fashion shop El’ Marie, which pays $155,125 per annum for the 95 square metre space. All other tenants are fashion stores except for a day spa.
The sales are all being negotiated by CBRE’s Brendan Robins and Rem Rafter.
CBRE is responsible for a number of retail and commercial listings in Queensland including a retail outlet in Cairns.
The offers to purchase campaign ends on November 29.
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Juniper group to sell 38 retail lots in Mooloolaba

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A zoo outside of Cairns has been listed for sale with the option of buying all the animals.
The vendor of Shambala Animal Kingdom, former Sydney lawyer Elaine Harrison, bought the 54-hectare zoo in March this year but was unable to turn a profit from the zoo, which has been mired with problems over its eight-year history.
The freehold property was bought for $1.09 million earlier this year.
It was opened in 2004 as the Mareeba Wild Animal Park after numerous problems surrounding its finance and construction.
Less than a month later the zoo was closed with $3 million of debt, and founder David Gill, was charged. A cheetah and a lemur had escaped from their enclosures and others had died.
Over the next two years the zoo remained in administration, over which time nine lions escaped from their cages.
It was then bought by former Glencorp director Udo Jattke, who invested $100,000 upgrading the facility and reopened the business as Cairns Wildlife Safari Reserve. But the business continued to lose money with staff often waiting to be paid.
Harrison says the property would suit someone up for a challenge.
"For someone to come in with a good marketing budget and marketing savvy, this place could be second to none in Australasia," Harrison told News Limited.
"It is an amazing facility, it is a beautiful park with the most phenomenal animals. To get up close and personal with them is like nothing else in my life I will ever experience again.
"It has been the best and worst year of my life.
"My concern has always been for the animals."
Harrison is citing health and family issues for selling the property.
She says buyers will have the option of buying all the animals with the zoo in one line. These include 24 lions (the largest pride in Australia) and a variety of tigers, hippos, cheetahs, rhinos, gibbons, lemurs and monkeys.
If investors chose not to buy the animals Harrison says she has lined up spots in international breeding and conservation organisations.
If it is not sold as a zoo it will go to auction as two vacant parcels. There is a development application before Tablelands Regional Council for a 30-person luxury lodge and for 18 cabins.
The property is on two titles, one of 38.15 hectares and one of 15.01 hectares.
The zoo, in <a target="_blank" href="/news">Koah</a>, goes to auction on December 15. It is being sold by Callum Jones from McGrath Port Douglas. 
"The seller's overriding concern is for the parks resident animals. Should a buyer not be found immediately who shows the skills, desire and care to be able to continue the operations as they are now then the animals will be relocated to overseas reserves and the property will be sold as is where is as land and improvements," Jones says. 
Pictures on the listing show the animals with speech bubbles expressing their apparent desire to not be sent to other zoos.
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Paging Matt Damon or Benjamin Mee: Cairns zoo, along with its animals, up for sale

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Home building approvals in Queensland mining towns continue to outperform other areas of the state, according to HIA data.
The coal mining region of <a target="_blank" href="/news">Mackay </a>had the biggest increase in home building improvements in all of Queensland. There were 754 building approvals in the three months to September 2012, compared with 350 in the three months to September 2011, an increase of 115%.
<a target="_blank" href="/news">Toowoomba </a>was close behind with an increase of 53% from 154 approvals to 235. <a target="_blank" href="/news">Townsville </a>was next, with a 42% increase, followed by Gladstone-<a target="_blank" href="/news">Biloela</a> and Hervey Bay at 32%.
The Sunshine Coast and Gold Coast experienced the biggest decreases in home building approvals, dropping 28% and 29% respectively. Greater <a target="_blank" href="/news">Brisbane </a>and <a target="_blank" href="/news">Cairns </a>were next lowest at 19% and 16% respectively.
HIA director Warwick Temby says there is a clear connection between resource development and home building activity.
“Central Queensland and the Toowoomba regions have experienced double digit growth in home building over the last 12 months. This is overwhelmingly positive news for an industry that has struggled to climb out of a GFC-induced recession,” Temby says.
“But to have big impacts on employment in the industry the growth that has been seen in the resource areas needs to take hold elsewhere in the state.
“The budget’s $15,000 for first-home buyers who are building has increased inquiry for new homes and it is expected that this will flow through into orders in the coming months.
“HIA is forecasting that combined with lower interest rates this boost for first-home buyers will underpin a broad-based lift in home building across Queensland in 2013.”
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Building approvals in Queensland resource areas continue to outperform others: HIA

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Beachlife, the forsaken luxury Mollymook holiday apartment complex, has been listed for receivership sale through Westpac after the developers failed to secure sufficient holiday home buyer interest.
The vacant 8,500-square-metre block is the former site of<a href="https://www.cramerproperty.com/new/#/datalive_02_01_42" target="_blank"> a planned 79-unit apartment block </a>on the south coast of New South Wales.
The project did not proceed after the developers failed to secure sufficient bank funding following the dramatic downturn in the second-home market after global financial crisis.
The receivers have moved after developer Peter Leffrey's Davocsh Pty Ltd had the vacant project site listed last December. It did not sell.
Davocsh had bought the site over 2006 and 2007 for a $7,425,000 total and planned to build an ambitious three-block luxury complex.
Plans for the site were originally approved in December 2007 and have been reactivated following  demolition of parts of the site.
Marketing for the campaign began in 2010 but was halted three months later by Davocsh. The concept became unstuck given banker lending hesitation on the ambitious <a href="/news">Mollymook</a> project.
Cramer Properties, which was marketing the units, managed to sell around five apartments in the three months, including the most expensive one in the building.
Off the plan prices for units originally ranged from $390,000 to $1.6 million through Cramer.
Interest in the units came primarily from empty-nesters in Canberra and Sydney looking to retire.
The plans for the project allow for three low rise buildings with 20 two-bedroom units, five two-bedroom + studies, 52 three-bedroom units, two three-bedroom penthouses, and 154 parking spots.
Section 94 contributions of $181,000 have been paid as well as long service levies of $88,480.00 but no water or sewer section 64 contributions have been paid to date. The current amount estimated as payable is $764,000 as at 1 July 2012.
“Often with receivership sales there’s been a cashflow issue potentially, in some instances there’s money outstanding with various parties. All those items are unpaid,” says Knight Frank agent Peter Krieg.
Krieg declined to disclose a price guide for the property or any other relevant information.
The land is 350 metres from the beach and has three street frontages.
The site is made up of several titles bought in 2006 and 2007 Davocsh which was co-directed by by Peter Leffley and Janine Treacy.
In 2006 Davocsh bought 56 Ocean Street for $3 million.
In 2007 Davocsh bought 54 Ocean Street for $1.625 million, 58 Ocean Street for $1.9 million and 1 Shepherd Street for $900,000.
The total cost of the land was $7,425,000.
Krieg told Property Observer he thinks the past acquisition sale prices are irrelevant.
The land is zoned 2(b2) which is intended to “provide for a variety of life styles by the provisions of areas for residential flat buildings to minimise the conflict with detached housing and to identify opportunities for motel development”.
If the buyer wanted to move away from a block of units, alternative uses indicated by the marketing include medium-density development including residential and holiday use, a mixture of townhouses and villas with potential of 25 three-bedroom or 35 two-bedroom townhouses subject to council approval.
Marketing for the property suggests the region will experience strong growth over the next decade, driven by retirees and leisure visitation.
The property is being sold by Knight Frank agent Peter Krieg and LJ Hooker agent Gary Cox.
Expressions of interest closed yesterday.
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Mollymook apartment development Beachlife listed in receivership sale

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Pet-owners in Queensland could face higher rental bonds than regular tenants if options in a new discussion paper are passed.
If the option of one extra week's rent is passed it will join WA where pet owners can be slugged with an extra $260 in bond to pay for fumigation sometimes required when pets move out. The WA pet charge limit was upped from $100 in 2011.
The Queensland government has released a discussion paper on tenancy laws to review changes to legislation introduced in 2008.
The paper introduces many options to for review including increasing the bond required for tenants with pets, or tenants moving into houses that are fully furnished or have a swimming pool.
The discussion paper lists four main areas of concern – balancing stakeholder interests, streamlining service delivery, reducing red tape and technical and minor changes.
The review is not examining the procedures and practices of QCAT or public housing policies and procedures.
Some other options <a href="https://www.rta.qld.gov.au/About-the-RTA/Legislation/Review-of-the-RTRA-Act" target="_blank">the paper</a> looks at include:
<ul>
<li>Increasing deposits for fully furnished property and those with pools</li>
<li>Ensuring tenants have a fee-free way of paying rent</li>
<li>Outlawing key deposits</li>
<li>Increasing bond amounts for caravan tenants</li>
<li>Increasing the window agents have to inspect properties to three hours</li>
<li>Reducing frequency of inspections for long term tenants</li>
<li>Removing immediate eviction provisions for rooming accommodation providers</li>
<li>Ensuring lessors can only end a tenancy for specific grounds</li>
<li>Remove short term tenancies which currently allow tenancies without paperwork for up to 42 days for moveable dwellings.</li>
<li>Giving lessors permission to charge the full water consumption cost regardless of water efficiency of the property</li>
</ul>
Housing and Public Works Minister Bruce Flegg says the laws are due for a review.
“The last review of tenancy law was in 2006-07, which introduced some significant changes and it is now appropriate to consider how effectively those changes have worked,” Flegg says.
The Real Estate Institute of Queensland (REIQ) says it welcomes a review of tenancy laws by the state government but says the review it should be expanded.
REIQ chief executive Anton Kardash says the review could better streamline the residential tenancy transaction process.
“In a tenancy relationship it’s important both parties, namely the tenant and landlord, understand their rights and obligations and that these are fairly balanced,” he said.
“Additionally, we welcome the opportunity to clarify the responsibilities of a property manager which at times are onerous and poorly defined.
“It is disappointing to note however, that the review does not extend to the procedures and practices of the Queensland Civil and Administrative Tribunal (QCAT).
“The Institute, in consultation with its members, is aware of inefficiencies relating to QCAT procedures and inconsistencies in decision making and as such would encourage the State Government to widen the scope of the review.”
“We want to hear the views of tenants, landlords, agents, park managers and rooming accommodation providers on important issues that affect them and whether the options in the discussion paper will address these issues.
‘We need to ensure the Act is balanced and there are no legislative barriers to improved service delivery by the RTA.”
The 2013 deadline for submissions is January 2.
 
<ul></ul>
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Queensland tenants with pets face higher rental bonds under mooted tenancy laws that follow WA’s lead

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Construction has commenced on the Wertheim Square apartments in Lend Lease’s Studio Nine development in Richmond.
Prices in the inner-Melbourne block currently start at $649,000 for a two-bedroom unit measuring between 80 square metres and 96 square metres.
Previously prices for two-bedroom, one-bathroom apartments started at $655,000.
The <a href="/news">Richmond </a>apartments will be new buildings on the historical site, given earlier offerings within the project were conversions of an older building.
The master-planned community will pay homage to its iconic industrial and broadcast past. The site is a former piano factory, then the Heinz canning factory, and then a broadcast studio.
Construction of the project is due to finish in late 2013 to early 2014.
Lend Lease was previously offering 10% annual returns on deposits paid for apartments.
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Construction begins at Studio Nine

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Manufacturing is the largest industry in the Queensland mining hotspot town of Gladstone, according to ABS statistics.
Manufacturing jobs account for 17% of all jobs in the Gladstone local government area, compared with just 3.36% for mining.
Though not strictly mining jobs, many of the manufacturing work in Gladstone stems from mining in nearby areas.
Construction is the second biggest industry, accounting for 13.8% of jobs, followed by retail at 9.48%. Next is transport, postal and warehousing at 7.71% and professional, scientific and technical services at 7.25%.
The major manufacturers in Gladstone are QAL, Rio Tinto Yarwum, Boyne Smelter and Ausproof.
Gladstone is reaping the benefits of the mining boom, says Purcell's line boring and engineering managing director Terry Purcell.
"There is heaps of mining work coming into this town – fabrication and machining," Purcell told The Gladstone Observer.
“Gladstone is traditionally an industrial city, so there is a lot of manufacturing to support that.
"We are centrally located between Surat and the Bowen basin."
He says his business manufactures new and old components primarily for the mining industry such as ruck trays.
"(Manufacturing is) to take a bit of raw material and turn it into a machine or fabricated component."
He says Gladstone’s manufacturing industry isn’t the biggest in the country but it is well placed to service mining needs.
"In the true sense of manufacturing, I think there is a lot more down in Victoria and NSW. They can get it done for cheaper because of lower wages,” Purcell says.
"There will always be a manufacturing industry here if [mining companies] can't wait and need it right now. Skilled tradespeople are hard to find."
<table width="451" cellpadding="0" cellspacing="0" border="0">
<colgroup>
<col width="289">
<col>
<col width="98">
<col>
<col width="64">
<col>
</colgroup>
<tbody>
<tr height="66">
<td width="289" height="66">Industry</td>
<td width="98">Percentage of workers employed (%)</td>
<td width="64">Rank</td>
</tr>
<tr height="20">
<td height="20">Accommodation and food services</td>
<td align="right">5.94</td>
<td align="right">8</td>
</tr>
<tr height="20">
<td height="20">Administrative and support services</td>
<td align="right">2.49</td>
<td align="right">14</td>
</tr>
<tr height="20">
<td height="20">Agriculture, forestry and fishing</td>
<td align="right">1.55</td>
<td align="right">17</td>
</tr>
<tr height="20">
<td height="20">Arts and recreation services</td>
<td align="right">0.49</td>
<td align="right">19</td>
</tr>
<tr height="20">
<td height="20">Construction</td>
<td align="right">13.76</td>
<td align="right">2</td>
</tr>
<tr height="20">
<td height="20">Education and training</td>
<td align="right">6.27</td>
<td align="right">7</td>
</tr>
<tr height="20">
<td height="20">Electricity, gas, water and waste services</td>
<td align="right">2.58</td>
<td align="right">13</td>
</tr>
<tr height="20">
<td height="20">Financial and insurance services</td>
<td align="right">1.10</td>
<td align="right">18</td>
</tr>
<tr height="20">
<td height="20">Health care and social assistance</td>
<td align="right">6.39</td>
<td align="right">6</td>
</tr>
<tr height="20">
<td height="20">Inadequately described/Not stated</td>
<td align="right">2.72</td>
<td align="right">12</td>
</tr>
<tr height="20">
<td height="20">Information media and telecommunications</td>
<td align="right">0.36</td>
<td align="right">20</td>
</tr>
<tr height="20">
<td height="20">Manufacturing</td>
<td align="right">17.00</td>
<td align="right">1</td>
</tr>
<tr height="20">
<td height="20">Mining</td>
<td align="right">3.36</td>
<td align="right">11</td>
</tr>
<tr height="20">
<td height="20">Other services</td>
<td align="right">3.40</td>
<td align="right">10</td>
</tr>
<tr height="20">
<td height="20">Professional, scientific and technical services</td>
<td align="right">7.25</td>
<td align="right">5</td>
</tr>
<tr height="20">
<td height="20">Public administration and safety</td>
<td align="right">3.93</td>
<td align="right">9</td>
</tr>
<tr height="20">
<td height="20">Rental, hiring and real estate services</td>
<td align="right">1.82</td>
<td align="right">16</td>
</tr>
<tr height="20">
<td height="20">Retail trade</td>
<td align="right">9.48</td>
<td align="right">3</td>
</tr>
<tr height="20">
<td height="20">Transport, postal and warehousing</td>
<td align="right">7.71</td>
<td align="right">4</td>
</tr>
<tr height="20">
<td height="20">Wholesale trade</td>
<td align="right">2.44</td>
<td align="right">15</td>
</tr>
</tbody>
</table>
Source: ABS
For more on investing in Gladstone, download the free Property Observer eBook: <a href="http://propertyobserver.com.au/ebooks/free-ebook-gladstone-investment-keys-to-one-of-the-nations-most-talked-about-hotspots" target="_blank">Gladstone - Investment keys to one of the nation’s most talked-about hotspots.</a> 
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Most jobs in Gladstone come from manufacturing

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The co-founder of accommodation booking website Wotif, Andrew Brice, has been tipped as the buyer of the office tower Nathan Tinkler didn’t – at time when BIS Shrapnel is forecasting the Brisbane office vacancy rate to hit 10%.
Brice has reportedly purchased <a target="_blank" href="https://www.commercialrealestate.com.au/Property/7834047/For-Lease/QLD/BRISBANE/Offices">443 Queen Street</a> in Brisbane for around $40 million.
<a target="_blank" href="https://www.propertyobserver.com.au/commercial/nathan-tinkler-lets-another-property-purchase-lapse/2012100957061">Tinkler had initially agreed to buy </a>the 22-year old waterfront building in the heart of the Brisbane’s CBD for around $37 million from Bramley Properties earlier this year.
Brice's name emerged after the 5,500-square-metre building was relisted for sale after Tinkler was unable to secure an extension on his deal. Jones Lang LaSalle’s Seb Turnball and Geoff McIntyre reportedly negotiated the deal but are declining to comment on the matter.
Both The Australian Financial Review and the The Australian have outed Brice as the buyer.
Brice is reportedly worth more than $200 million and is a member of the Order of Australia for his services to business. He co-founded Wotif with Graeme Wood.
The five-storey property is one of the last riverfront locations in the CBD yet to be developed into a high rise. The building will be leased to engineering company Hatch after Rio Tinto Alcan moved out of the building in June.
The property was built by developer Kevin Seymour in 1990 and bought by Bramley properties in 2004 for $23 million.
Linc Energy founder Peter Bond was reportedly close to paying $37 million for the building last year.
BIS Shrapnel has just published a report predicting the office vacancy rate in the Brisbane CBD to hit 10% by June 2013, reflecting the growing imbalance between new supply and demand.
“The completion of 145 Ann Street, has already released back-fill space and more will be added when the ATO moves into its new home at 55 Elizabeth Street in mid-2013”, says BIS Shrapnel’s Christian Schilling.
But he says the main factor pushing vacancy rates up in the short term is weak demand.
“The outlook for demand has softened markedly since early this year.”
“Large-scale redundancies at the state government, the downturn in demand for resources and falling business confidence mean that virtually no-one is looking for additional space.
“Only nine months ago the prospects for Brisbane was looking bright. Demand was strong and vacancies were falling, buoyed by investment in resource projects and associated employment growth. Most commentators expected the market to go from strength to strength.
“Few people anticipated the magnitude and speed with which the incoming Queensland government has cut jobs. In some departments over 1,000 staff have already gone, with large pockets of empty space appearing across floors. And the process is by no means complete—it will take some time, years perhaps, before it works itself through the system.”
He says as well as a drop in government tenancies, declines in the mining sector will lead to further vacancies.
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Wotif co-founder Andrew Brice reportedly buys Brisbane office block Nathan Tinkler didn't

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

Joel Robinson

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

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

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

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

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

Alistair Walsh

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