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Units are proving less popular that detached houses despite cheaper prices according to RP Data’s latest report.
The proportion of units sold has dropped at a national and capital city level, according to RP Data’s property pulse. As of June 2012 units represent 28.1% of all sales across the country, compared to 29.5% in June 2007.
Canberra had the biggest drop in proportion of unit sales from 2007 to 2012, dropping from 49% to 42.8%.
RP Data’s Cameron Kusher puts the decrease in unit interest down to the availability of first home buyer grants and stamp duty concessions coupled with recent valls in home values which has improved affordability.
He says units tend not to decline in value as much as houses which gives buyers the opportunity to buy houses.
Across the nation, median unit prices are now just $25,000 cheaper than house prices. In capital cities, units are $53,000 cheaper.
Kusher also says one of the main reasons unit interest appears down is because of the rising number of off-the-plan sales which don’t appear in their statistics until they are settled.
On a capital city level, units are $48,000 cheaper than houses in Melbourne, while in Sydney and Canberra they are $110,000 cheaper.
Kusher says given the difference, it comes as no surprise that Sydney and Canberra have recorded the greatest proportion of unit sales over the past year at 42.5% and 42.8% respectively.
In Perth, where units are $71,000 cheaper than houses, units still only represent 18.4% of sales – the lowest proportion of any capital city.
Despite the drops in interest Kusher expects the popularity of units to increase.
“Over the coming years, we would expect that units are likely to grow in popularity. Although unit sales pale in comparison to house sales across the country, as developable land becomes scarce and more expensive to develop, property developers are likely to focus on higher density housing,” Kusher says.
“The community at large is also likely to demand more units, particularly in suburbs close to city centres or along transport corridors. This will likely be driven by lifestyle and affordability factors as well as town planning strategies.
“Demographic factors are also likely to contribute to greater demand for units with baby boomers looking to downsize from their large family homes into something smaller and more easily maintainable. Also, the ongoing demographic shift to single person households and smaller families is likely to result in further growth in unit demand.”
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Unit popularity down: RP Data

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If an online ad is offering a rental property at a quarter of what it would normally rent for and renters aren’t allowed to inspect, then it’s probably a scam.
One prospective Sydney renter stumbled onto an online scam on the classified ad site Gumtree.
She luckily had the guile to recognise the hallmarks of a scam as soon as the scammers emailed her back.
The renter, Kieryn, then proceeded to bait the scammer to draw as much information out as possible and glean how the scam worked.
The original ad was deleted not long after.
The ad offered a Surry Hills terrace at an enticing rental price.
Kieryn contacted the so-called owners, keen for the bargain, and was told the owners were overseas and just needed someone to move in as soon as possible.
Just pay the deposit and the Nobbs Street property is yours, the scammer told Kieryn.
“Kindly note that you advised to go and view the place from around the property as this is the only form of inspection at the moment due to our absence and the keys being with us here,” the scammers wrote.
“Two weeks rental deposit of $960 or a month rent of $1,920 is required to secure the place along with a refundable bond deposit of $1,920, which is also required as fee for damages according to the rental law and all payment will be made into our Australian bank account.”
The so-called landlord said they were overseas for three years in “the U.K to resume our new assignment, which is about the HIV/AIDS reaffirm program” and they want a renter to ensure the house is “kept alive in my absence”.
This is when Kieryn knew it was a scam. They were overseas, she couldn’t inspect the property, they wanted the deposit straight away and it seemed too cheap.
But just how much cheaper than market rates was it actually?
It turns out the scammers had lifted the details of the property from <a href="https://www.realestateview.com.au/Real-Estate/29-nobbs-street-surry-hills/Property-Details-rent-residential-4249509" target="_blank">a genuine listing on realestateVIEW.com.au</a> (pictured below).
<img src="/images/stories/2012/09/nobbs.jpg">
The original listing was a four-bedroom terrace that had an asking rent of $6,546 per month for the four-bedroom, two-level terrace.
To confirm her suspicions Kieryn decided to goad the scammer to see how far they would go.
“I forgot to mention we own a small dog… If this is a problem that’s OK we can send her to a shelter or have her put down. We just really love the house more than anything,” Kieryn wrote.
“Also is there a basement? Or somewhere that can be locked from the outside and is sound proof?
While normal landlords would recognise Kieryn as likely a dud tenant, the scammers were undeterred.
“We feel you are the ideal tenant we are looking for and have approved your rental request,” the scammers replied, clearly unfazed by her odd requests.
“We are fine with you bring your dog to the house, we consider your dog as part of you cherished belongings.
“There is a basement which we used as a store but we have since been moved out everything there so you will have access to it when you move in.”
The scammers then provided their bank details, an account at Suncorp Bank, and once more requested Kieryn pay the requested amount.
 
<hr class="system-pagebreak">
 
The exchanges went for a number of days, with Kieryn’s requests getting ever more bizarre.
“Is this basement big enough to hold say, a mattress and a few other items? For example a bucket, and a wooden box?”
The scammers persisted but eventually realised they were having their time wasted and severed all contact.
The true rental listing agent Antoni Hayek from Laing and Simmons Pyrmont says he was contacted by as many as five potential renters who had tracked down the original listing after smelling a rat.
“I’ve probably had about four or five enquiries from people asking the property but with information from the Gumtree ad."
Hayek says agents are limited in their response to scams like this.
“We sent emails to Gumtree asking them to get rid of the ad. We reported it as a scam to them.”
He recommends renters avoid sites like Gumtree when looking for a property.
“I love using Gumtree to buy stuff, but I just wouldn’t use it for something like this.”
“I’d make sure they’d met the owners and got some sort of ownership proof.”
He says renters should never pay for a property without inspecting first.
Hayek says while these scams are rare they have cropped up before.
For now, all agents can do is try and educate renters and report any scams when they hear about them, <a href="https://www.propertyobserver.com.au/news/perth-nigerian-scam-estate-agent-faces-disciplinary-action-for-lack-of-diligence-in-%24410000-sale/2012052854867" target="_blank">such as a recent rental scam in Perth</a> and a phishing scam <a href="https://www.propertyobserver.com.au/industry-news/re/max-global-online-phishing-and-rental-scams-spread-to-australia-with-pop-up-home-page-warning-for-consumers-to-be-vigilant/2012091856661" target="_blank">that targeted RE/MAX real estate agency</a>.
<a href="mailto:news@propertyobserver.com.au">Tell us if you have uncovered other rental scams.</a>
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No Nobb as Surry Hills, Sydney, online rental scammer uncovered

<html><body><table width="464" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Postcode
</td>
<td valign="bottom" nowrap width="92">
Suburb
</td>
<td valign="bottom" nowrap width="88">
Median Price
</td>
<td valign="bottom" nowrap width="87">
Median Rent per week
</td>
<td valign="bottom" nowrap width="133">
Median Rental Yield
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2912
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">GUNGAHLIN</a>
</td>
<td valign="bottom" nowrap width="88">
$334,000
</td>
<td valign="bottom" nowrap width="87">
$440
</td>
<td valign="bottom" nowrap width="133">
6.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2601
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">CITY</a>
</td>
<td valign="bottom" nowrap width="88">
$450,000
</td>
<td valign="bottom" nowrap width="87">
$578
</td>
<td valign="bottom" nowrap width="133">
6.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2612
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">BRADDON</a>
</td>
<td valign="bottom" nowrap width="88">
$424,000
</td>
<td valign="bottom" nowrap width="87">
$500
</td>
<td valign="bottom" nowrap width="133">
6.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2617
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">BRUCE</a>
</td>
<td valign="bottom" nowrap width="88">
$398,750
</td>
<td valign="bottom" nowrap width="87">
$465
</td>
<td valign="bottom" nowrap width="133">
6.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2902
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">KAMBAH</a>
</td>
<td valign="bottom" nowrap width="88">
$380,000
</td>
<td valign="bottom" nowrap width="87">
$440
</td>
<td valign="bottom" nowrap width="133">
6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2612
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">TURNER</a>
</td>
<td valign="bottom" nowrap width="88">
$436,500
</td>
<td valign="bottom" nowrap width="87">
$498
</td>
<td valign="bottom" nowrap width="133">
5.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2913
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">PALMERSTON</a>
</td>
<td valign="bottom" nowrap width="88">
$380,000
</td>
<td valign="bottom" nowrap width="87">
$430
</td>
<td valign="bottom" nowrap width="133">
5.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2906
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">BANKS</a>
</td>
<td valign="bottom" nowrap width="88">
$375,000
</td>
<td valign="bottom" nowrap width="87">
$420
</td>
<td valign="bottom" nowrap width="133">
5.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2606
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">PHILLIP</a>
</td>
<td valign="bottom" nowrap width="88">
$429,000
</td>
<td valign="bottom" nowrap width="87">
$480
</td>
<td valign="bottom" nowrap width="133">
5.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2906
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">GORDON</a>
</td>
<td valign="bottom" nowrap width="88">
$369,000
</td>
<td valign="bottom" nowrap width="87">
$413
</td>
<td valign="bottom" nowrap width="133">
5.8%
</td>
</tr>
</tbody></table></body></html>

The 10 Canberra suburbs with the highest yields: RP Data

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There are far fewer property investors in BRW’s Young Rich List than on the full Rich List, including older people, published earlier this year.
Eight of the members of BRW’s 100 Young Rich List have made the bulk of their money from property.
In the Rich List 200 published in May, some 55 of the members made their money from property.
Proportionally that’s three times as many property investors on the older list than the younger list.
The richest member of the young list who made his wealth from property is Shane Wilkinson, with an estimated worth of $72 million. Wilkinson started Pace Development Group in the mid-1990s.
The next is Paul Fridman, with an estimated worth of $65 million. Fridman says his apartment building company, Fridcorp, has “had a very good year”.
Jonathan Hallinan follows Fridman with an estimated worth of $63 million. The Melbourne-based developer has been operating in Brisbane, where it costs less to build and buy land. Hallinan says he keeps 20% of each project he builds.
Next up is Ronnie Elhaj at $55 million. The Cairo-born Elhaj has an equity stake and a marketing role in Perth house-building comapny Niche Living, which he established as Australian Property Alliance in the early 2000s.
The next property rich lister is Paul Fischmann, with an estimated worth of $39 million. Fischmann entered the hotel business 15 years ago, and his group 8Hotels now owns 14 boutique hotels, villas in Bali and Hepburn Springs in Victoria and apartments in Paris. He is due to open a new 90-room hotel in Sydney’s <a target="_blank" href="/news">Pyrmont </a>early next year.
Marcus Gilmore is next, with an estimated worth of $37 million. It’s his first time on the list. He is developing mining accommodation in the Pilbara.
Jay McAlister follows Gilmore with an estimated worth of $35 million. He owns a 50% stake in Queensland-based property developer Vantage Property Group.
Jason Di Iulio is the final property member of the Young Rich List, with an estimated worth of $25 million. He owns a network of property-related companies, including mortgage company Finance Mutual Australia and investment management business Assist Finance.
The BRW Young Rich List only includes people under the age of 40. The list excludes anyone who inherits most of their money.
A high number of athletes who made their wealth from sport but later invested in property are featured in the Young Rich List.
Basketballer Andrew Bogut, worth $40 million, has a number of investment properties.
Tennis star Lleyton Hewitt has invested much of his money into property including a home at Palm Beach, north of Sydney, and a penthouse in the Yve building on St Kilda Road, Melbourne.
And soccer player Mark Viduka, at $24 million, has property in Melbourne and Croatia.
Goalkeeper Mark Schwarzer, $20 million, has a healthy property portfolio in Sydney including an $11 million 1200 square metre harbour-front property.
Number one on the Young Rich List are technology entreupeneurs Mike Cannon-Brookes and Scott Farquhar at $480 million.
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Not many property tycoons in BRW Young Rich List

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The 1887 built Queenscliff Hotel on the western tip of Port Phillip bay has been listed for sale with all its antique furnishings in one line.
The heritage-listed hotel was designed by Melbourne architects Reed, Henderson &amp; Smart, the same architects responsible for the State Library of Victoria, Collins Street Baptist Church, Melbourne Trades Hall and a number of Melbourne university buildings.
It was built by NW Frogley in the English Queen Anne style for Martha Nugent and Joseph Goslin, wealthy local citizens at the time.
Heritage documents say the building is an extraordinary example of the architects’ work.
“The polygonal tower, with its coned roof and bellcast profile, and the Dutch gables, with steep slit openings, are of interest for their reflection of northern European Renaissance architecture, particularly from countries as such France and the Netherlands.”
Heritage documents celebrate the façade of the building for its “essentially intact exterior”.
“The Queenscliff Hotel is of social significance for its associations with wealthy Victorian society around the turn of the century, who regarded Queenscliff as a fashionable summer holiday resort, particularly as it was within easy reach of Melbourne after the opening of the Geelong-Queenscliff railway in 1879 and the introduction of paddle steamers to transfer passengers from Melbourne by sea.”
The 15-bedroom mansion has been run as a leisure property since it was built.
The current owners acquired the property about 10 years ago from restaurateur Patricia O’Donnell, sister of the now deceased Mietta O'Donnell, who ran the hotel as a fine dining hotel for a number of years.
<hr class="system-pagebreak">
The hotel was first restored for modern use in 1978, being converted from a run-down pub status to its heritage glory.
Queenscliff first became a significant tourist destination in the late 19th century with holiday-makers taking a two-hour paddle steamer journey from Melbourne. The influx continued with the 1879 opening of the Geelong railway line, which coincided with the construction of a number of luxury hotels including the Palace Hotel, the Baillieu Hotel and the Vue Grande Hotel.
Tourist numbers dwindled with the popularisation of cars and the cancellation of a daily rail service, but the 1980s was the start of a tourism revival for the town.
The 1,669-square-metre property been listed by Neil Laws and Damian Cayzer from Kerleys Coastal Real Estate in Point Lonsdale. They are seeking $4 million to $6 million for the 19th-century building.
Laws says there has been significant interest in the property including people who want to convert it into a residence.
“It’s not a massive building like some of the others in Queenscliff, so that would be doable,” Laws says.
There has also been interest in people running just the accommodation side of things who would sublease the restaurant business.
It includes a formal dining room, a conservatory restaurant, a boat bar, front and rear al fresco garden restaurants, a commercial kitchen, a turret room and a manager’s apartment.
It is zoned mixed use/business 1, which allows for a number of alternative uses.
The building is being offered with all plant and equipment, antique furniture, licences, permits and chattels.
Tenders close on Wednesday November 7.
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Historic Queenscliff Hotel listed, along with antique furnishings

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Melbourne-based home-building group Metricon Homes was Australia’s largest builder for the second year in a row, according to the HIA housing 100 report.
The big mover was Hotondo Homes, which jumped from position 20 to position eight on the list, with its number of home build starts increasing from 879 in the 2010-11 financial year to 1,463 in the 2011-12 financial year.
Metricon Homes started construction of 2,821 dwellings in the last financial year, all of which were detached houses in Victoria, NSW, Queensland or South Australia.
The company was followed by Alcock/Brown-Neaves Group, starting construction on 2,736 dwellings in WA and Victoria.
In third place was WA builder BGC Australia, which started 2,692 homes.
Australia’s largest multi-unit builder was Hickory Developments Pty Ltd for the third year running, with 2,163 starts. In overall rankings it moved up one place to number four.
The HIA report ranks the nation’s top 100 residential builders based on the number of homes started each year.
The report found the total number of starts by the top 100 builders fell by 7.3% to 48,130 their lowest level in 15 years.
“This result is consistent with the overall experience of the industry in 2011-12 where new home building conditions weakened considerably across Australia,” says HIA’s Dr Harley Dale.
The number of houses built by the largest 100 builders fell 11% from 40,138 to 35,909. The number of units built grew 4% from 11,720 to 12,221.
The largest 100 builders represented 35% of Australia’s housing starts in the 2011-12 financial year, up slightly from 33% in 2010-11, but below the historical average of 36%.
“The Housing 100 and the entire industry can deliver, and indeed Australia's residents have the requirement for, a considerably higher level of housing starts than has been evident over the last couple of years,” says Dale.
“Within an environment of subdued demand conditions, both unilateral and cooperative policy reform could generate a much healthier year for new home building in 2012-13.
"Sadly, evidence of the will to execute such policy action remains far slimmer than Australia requires,” Dale says.
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Metricon Australia's largest home builder for second year running: HIA

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CBRE has unveiled a $1 million program to fund research into sustainable development in commercial real estate.
The Real Green Research Challenge is a four-year program to develop solutions to the industry’s environmental challenges.
CBRE is accepting research proposals for the program, which was unveiled at The Climate Group’s Climate Week New York City.
“We’ve seen growing market awareness of commercial buildings’ impact on the environment,” says Bob Sulentic, CBRE’s president.
“This has inspired new thinking and innovation in sustainability research. However, people with good ideas often lack financial support and access to real-time market data and insight into building construction, occupancy and management that only a global firm like CBRE can provide.
“Our RGRC program will help to unleash innovation by connecting ideas with funding and with CBRE’s unparalleled information and people resources.”
Successful applicants will receive up to $250,000 for basic research and implementation, with initial funding in February 2013.
As well as financial support, projects will have access to CBRE’s global market data and resources.
The program is looking to fund productivity studies, large-scale predictive modeling, energy efficiency technologies, data management programs, diagnostic tools and market-wide availability.
The submission deadline is December 31. For information visit <a target="_blank" href="https://www.cbre.com/rgrc">www.cbre.com/rgrc</a>
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CBRE to fund sustainability research in commercial real estate

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Australia could be at risk of a future property bubble collapse as central banks across the world distort prices by printing money and interest rates head down, according to the newly appointed chairman of Swiss bank UBS, Axel Weber.

The former president of Germany’s central bank says historically low interest rates in the US, Europe and Japan have pushed up exchange rates in?countries like Australia, the Australian Financial Review reports.

“When you have major interest rate differ­entials, that is one of the arguments that usually causes currency movements and financial movements and puts pressure on exchange rates,” Weber told a Sydney audience.

“In order to avoid those pressures on exchange rates in the major developed economies, interest rates in those regions are all heading south.”

Weber was speaking to a private gathering in central Sydney to celebrate 75 years of UBS in Australia and 150 years globally.

Weber says any attempt by the Reserve Bank of Australia to bring down the value of the Australian dollar by intervening in foreign exchange markets could stoke inflation.

Weber says artificially low interest rates could create a property bubble, which would then burst when central banks stop printing money.

“One of the reasons why many people move into real estate is that funding of housing projects and real estate purchases have become more affordable in a zero interest rate environment,” Weber says.

“The risk is as international rates are normalised at some point ... that would lead to much less affordability and sustainability for those houses bought under the assumption that low interest rates are there for a long period of time.”

Weber was not country-specific when speaking about the bubble scenario. 

However, Weber says the US Federal Reserve’s latest program of quantitative easing could help strengthen property markets.

“I think the action the US central bank has taken with QE3 is more aligned with the underlying weakness in housing markets than Operation Twist or QE2 was,” he said.

“It will help house prices bottom out and that is something that has the potential for very targeted support for labour and for housing to strengthen.”
 
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Australia at possible risk of property bubble: UBS chairman

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Social media is often touted as among the most important marketing techniques of recent years, but many real estate agents are abandoning the platform.
Many agencies have stopped tweeting in recent months after lengthy periods of activity.
A recent survey by REIV found Twitter was little use in attracting clients.
“Online is … clearly having an impact, but that does not extend to social media,” <a target="_blank" href="https://www.propertyobserver.com.au/trends/social-media-has-practically-no-value-for-real-estate-agents-enzo-raimondo/2012092356740">says REIV chief Enzo Raimondo.</a>
“Social media, Facebook, LinkedIn and Twitter had practically no value, endorsed by only 1% to 3% of respondents.”
The REIV 2012 member poll surveyed 600 Victorian real estate agents.
“This reflects the fact that buyers and sellers are used to engaging with real estate online. They seek advertisements on real estate websites, such as realestateview.com.au, but are far less likely to come across a real estate agent’s Twitter account.”
“With regard to engaging with clients, social media has a long way to go until it is a familiar tool."
The survey found the most valuable tool for finding clients was word of mouth, followed by real estate portals and agent websites.
At the recent Inman Real Estate Connect conference in San Francisco, agents were advised not to use Twitter to spruik themselves but to be personable and build relationships.
"Agents who use social media well understand that it’s all building a relationship with a potential client, not focusing on the transaction,’’ Ray White’s Sam White told conference goers.
"Most people get the idea of getting a recommendation from a friend. This is just doing that on steroids, but you have to do it sensibly."
Real estate agency Bennison Mackinnon had run a somewhat active account Twitter account from July 2010 but stopped tweeting as of March this year.
Director and sales manager Andrew McCann says the company's social media use required greater engagement in the community than what had been doing in the past.
“We didn’t have the right strategy, it wasn’t a case of not getting results,” McCann says.
“We started tweeting our optimum results, but the reality is you need to be giving people better information than whether something has been listed or sold.
“It’s a community opportunity to communicate with people in our marketplace rather than just beating your own drum.”
He says social media shouldn’t be discounted as a useful tool, even if it doesn’t directly sell properties.
“It is interesting and it probably is true that agents aren’t really selling properties off Twitter or Facebook, but that doesn’t mean it’s not a useful tool.”
“We’re currently investing in a social media strategy which will use Facebook, Linkedin, Twitter and potentially other newer ones that might come out.”
Other dramatic endings to Twitter Property Observer found included Ray White Willoughby, which stopped tweeting in March after 1,828 tweets; DM Realty in Townsville, which stopped tweeting in July after 762 tweets; and Colliers Parrish, which stopped tweeting in December last year after 367 tweets.
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Social media not for all as agents abandon Twitter

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Agents are still to secure any sale of the three campuses of Mowbray College, the Melton school in administration with $18 million of debts.
Fitzroys Agent, David Bourke, says there has been strong interest from education providers during the expressions of interest campaign which ended on September 14.
Bourke is selling the three campuses, two in Caroline Springs and one in Melton, along with CBRE agents Scott Orchard and Clinton Ramm.
Bourke says potential buyers were looking at purchasing the campuses in one line and individually.
“A number of parties have been shortlisted and we will be progressing this interest to formalise the sale of the campuses over the coming weeks,” Bourke says.
The campuses were <a href="https://www.propertyobserver.com.au/news/mowbray-college-in-melbourne-s-west-listed-for-sale/2012081956040">listed for sale in August</a>.
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Mowbray College offers under consideration

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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