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Planning inefficiencies and government bureaucracy are limiting the supply of new housing and raising its cost, according to research published by the Reserve Bank of Australia.
The new report finds the length and complexity of the planning process, issues related to the provision and funding of infrastructure, land ownership and geographical constraints, and other challenges are all are limiting the home building sector.
Protracted planning processes are one of the chief constraints to the fast delivery of housing projects, according to the Supply-side Issues in the Housing Sector report, published in the RBA’s September quarter bulletin.
“While there are sound reasons for councils and government agencies to impose stringent tests during the planning phase, the uncertainty and time typically taken to settle planning issues can increase the cost and risk of housing development,” says the RBA.
“In particular, because developers incur holding costs on land (both the cost of financing its acquisition and land tax), the time it takes to get through the planning process increases total development costs.”
The report also finds that a shift by state governments towards user-funding of water, sewerage, transport and energy infrastructure as opposed to state funding is increasing the cost of housing.
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“Infrastructure charges raise the final sale price, reduce developer margins and/or lower the value of the undeveloped land, all of which can make the process of housing development less viable.”
The structure of land ownership is another big issue when it comes to developing greenfield land, with multiple owners of land at the fringe of cities complicating the process, according to the RBA report.
“Liaison contacts note that existing landholders often resist selling for lifestyle reasons and/or because their price expectations exceed the current market valuation.”
The cost of developing infrastructure in Sydney was significantly higher than in other capital cities, the report found.
In 2010 it cost $44,000 per lot to build adequate infrastructure, compared with $26,000 in Brisbane, $21,000 in Perth, $12,000 in Melbourne and $7,000 in Adelaide.
Part of this cost was put down to government charges which added just under 15% to the cost of each lot in Sydney, 10% in Brisbane and Perth and 5% in Melbourne.
This means the profit margins for developers in Sydney are much lower than in other capital cities.
The report says recent policy changes have party alleviated the situation but says “it is likely that these important issues will remain on the policy agenda for some time”.
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Red tape limiting the supply of new housing: RBA

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The number of fresh property listings is up, according to the first data on spring sales listings released by RP Data.
The total number of new listings has increased for the fifth successive week, jumping to 43,624 properties across the country.
<img src="/images/stories/2012/09/rpsept13.gif">
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
“As spring progresses the increase in new listings is likely to continue each week,” the report finds.
While the number of new listings has risen across Australia, the number remains well below that of a year ago.
New listings are 10.6% lower nationally and 13.6% lower across the combined capital cities for the year.
New listings in Queensland, WA, NT, ACT and Tasmania are all above levels one year ago, but the number is down in NSW, Victoria and South Australia.
The total number of homes advertised for sale across Australia increased slightly last week after eight consecutive weeks of falls.
Last week there were a total of 279,882 homes listed for sale nationally and 126,936 properties across the combined capital cities.
“Total listings remain higher than they were at the same time last year however, the differential has been moderating over recent weeks,” the report finds.
“At a national level, total listings are 4% higher than they were a year ago while across the combined capital cities they are just 0.1% higher.”
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Spring's fresh listings create fifth consecutive weekly national boost: RP Data

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Sentiment among Australian shopping centre managers has weakened over the last quarter as recent rate cuts failed to improve the sector, according to a survey by Jones Lang LaSalle.
As of August, 53% of centre managers are expecting at least some sales growth over the next 12 months, down from 57% in May.
The drop in sentiment comes as interest rate cuts in May and June did little to improve tenant enquiry levels and consumer behaviour, the report noted.
Overall neighbourhood centres have been doing better than sub-regional centres.
Tenant enquiry has weakened over the period with just 12% of respondents reporting an improvement in enquiry levels over the June quarter.
The vacancy rate in sub-regional centres rose from 1.4% in March to 1.9% in June 2012. The report says while the rate is relatively low, the sub-regional centre vacancy rate has trended upwards the last three quarters.
Vacancy rates in neighbourhood centres dropped from 5.1% in March to 4.2% in June. The report says part of the reason for the reduced rate has been the recent letting up of vacant spaces in centres opened over the last 12 months.
The report find average specialty rents have experienced “solid” growth in the past 12 months, particularly in neighbourhood centres.
In the year to June 2012, average rental growth for the portfolio of neighbourhood centres was 4.7%.
Sub-regional centre growth has been weaker, with an average of 2.3% over the 12 month period.
In line with <a href="https://www.propertyobserver.com.au/retail/shopping-centre-landlords-forced-to-discount-leases-to-attract-new-tenants/2012090656430">recent reports</a>, the Jones Lang LaSalle report find centre managers have been using a range of incentives to retain and attract tenants, including both rent free periods and fit-out contributions.
Around 63% of respondents expected either no growth, or growth of less than 3% over the next 12 months.
The report finds tenants have been experiencing difficulties in obtaining bank finance as banks are cautious of lending to new retailers.
There have been mounting concern over the increased number of tenants on holdover leases, which is impacting on the security of income in shopping centres according to the report.
Tenancy mix was again highlighted as key to driving growth in a challenging environment.  A broader range of services is being targeted to replace struggling retail categories.
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Shopping centre tenancy sentiment drops: Jones Lang LaSalle

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The Greater Building Society has cut its five-year fixed-rate home loans rate to 5.99% – the first time since March 2009 its rate has dropped below 6%.
The latest rate is down 16 basis points, with a comparison rate of 6.08%.
Its five-year fixed-rate ultimate (packaged) home loan is down 15 basis points to 5.95%, with a comparison rate of 6.33%.
The Greater Building Society’s David Bryde says its rates are lower than those of the major banks and the gap widens when comparison rates are used.
“Consumers should always use comparison rates when looking at home loan rates because they are a truer rate, taking into account fees and charges,” Bryde says.
 Bryde says that fixed rates suit people who demand certainty.
“With uncertain economic times and conjecture about which way rates may go fixing rates can be attractive for some customers,” he says.
“These lower fixed home loan rates are another reason why people should consider switching from their bank, and it is easier to do that than people think.”
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Greater Building Society five-year fixed home loan rate drops to 5.99%

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Australian property is overpriced – and possibly set to fall much further than they already have – according to Michael Power, an Investec Asset Management strategist.
He told an investors' briefing in Sydney that while Australia won’t experience the same bust as overseas, the situation is “a real worry, medium term”.
He says prices could fall by as much as 15% in the next two years.
Although residential property prices in Australia have dropped over the last two years, they are still among the highest in the world, Power suggsts.
"When you see what [the property market in] Australia has done, you have to ask ... you may be exceptional, but how exceptional are you.”
"Your level of debt is one of the highest in the world as a percentage of incomes ... [it] will turn against you if there's a real problem."
“This is something that, at some point, catches up with you,” Power says.
“I know a number of investors around the world putting their top short as Australian property.”
He says recent declines in prices show the market is not at its bottom point despite the thoughts of local commentators.
“If you think things have stopped declining at 6% and you’ve just in the last eight weeks had a terms of trade shock, then what you are now experiencing could get a lot worse.”
“I mean, most big property bubbles don’t end at a 6% decline.”
While the price will fall, he says Australia will avoid “anything like a US-style, Irish-style, Spanish-style property bust”.
“I think over the next 18 months it could go down by double digits – 12 or even 15%."
“It’s probably started to put pressure on your banks, and it has actually started to show up in their non-performing loans.
“That’s the first negative that generally starts to show through. But I think the negatives are going to start to show up now in the wake of the change in terms of trade.
“That’s started taking place In Australia . . . I think that could start to increase pressure.”
The Australian Financial Review and The Australian both reported the briefing by Investec, an international specialist banking and asset management group.
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Australian housing prices 'a real worry' and could fall 15% in next two years: Investec strategist

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The mining town of South Hedland is the leading town in WA where it’s cheaper to buy that rent, according to RP Data.
The data company's figures show that it can be $3,184 a month cheaper to buy a property with a principal and interest loan that it is to rent.
Agent Ryan Crawford from Crawford Realty says it’s been the case for a long time but rents have jumped noticeably in the last three months.
“There was a substantial jump in people coming to town at that time, and that flowed through into the rental market,” Crawford says.
He says the projects have been going on for a long time and are projected to last for some time into the future.
“They’re all long-term projects. There’s some interesting things happening with prices and China. Whilst that is a short-term thing that will fluctuate with global sector changes, the major effects are based on pricing. The commitments that mining companies like BHP and FMG have made will span 10 years plus.”
“Some have been put on hold. They’re just that – on hold."
Crawford says even though some projects have been put on hold the decisions haven’t had a large influence on the housing market.
“While people might see the postponements at taking large chunks out of the market, it’s not the case because the majority of work forces haven’t been bought on yet.”
Crawford is currently marketing 18 Lovell Place (architect's impression below), a block of eight units due to be finished next year.
<img src="/images/stories/2012/09/lovell.jpg" width="470">
Two of the units, priced at $599,000, have already sold.
The units are expected to rent at more than $1,300 a week, providing yields of 11.3%.
“The site is a fantastic option to get a low price unit in the market,” Crawford says.
Crawford says almost all interest in South Hedland comes from investors.
“It’s heavily investor based. Through our market it’s 90% investors. They come from the West Australian market, and there’s a lot of interest from the east coast and overseas.”
 
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A recent Westpac report found <a href="https://www.propertyobserver.com.au/queensland/moranbah-and-port-hedland-unsustainable-single-industry-mining-boom-hotspots-westpac/2012090655622" target="_blank">Port Hedland, the associated mining town is a “single-industry” and possibly risky  town</a>, making it harder for investors to secure loans in the area.
The Real Estate Institute of Western Australia's David Airey says the changes probably reflect a view from within the bank that “housing prices and rental returns in particular, in places like Karratha, Port Hedland, South Hedland and Newman are unsustainable”.
“The state government is anxious to address affordability in the Pilbara, and while this won’t happen overnight it’s clear that housing demands will be better met over the next few years.”
Crawford says there are big market differences between South Hedland and Port Hedland.
“The demographics really vary between Port Hedland and South Hedland and one differences is price point. Port Hedland is on the ocean while South Hedland is inland,” Crawford says.
“The price difference for a similar home is now $500,000 to $600,000 just from inland to coastal.
“Port Hedland is priced fairly high and is relatively unaffordable, but in South Hedland while there are increases it is still affordable.”
One of the main developments coming in to South Hedland is a 500-plus dwellings project exclusively for BHP staff.
Crawford says the project is at least two years from completion.
RP Data compared the cost of a mortgage vs the cost of renting in four different ways: 1, Principal and interest loan on a variable mortgage rate; 2. Interest-only loan on a variable mortgage rate; 3. Principal and interest loan on a three-year fixed mortgage rate; and 4. Interest-only loan on a three year fixed mortgage rate.
The comparison does not take into consideration stamp duty, associated buying costs and strata fees, where applicable. 
The data contains both units and houses, but in most suburbs on the list it is cheaper to buy a unit than buy one.
The median house asking rent in South Hedland is $1,775 a week, according to RP Data, which estimates it is $3,184 cheaper per month to buy a house with a principal and interest variable mortgage than rent one.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/08/rpsept36.gif" rel="shadowbox"><img src="/images/stories/2012/08/rpsept36thumb.gif"></a>
<a href="https://www.myrp.com.au/buyorrent" target="_blank">For the full list of all suburbs,  </a><a href="https://www.myrp.com.au/buyorrent" target="_blank">visit RP Data's website.</a>
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South Hedland heads the regional Western Australian localities cheaper to buy than rent: RP Data

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The chase for real estate vendor advertising has flared in a battle of the website giants to secure estate agency support.
REA Group offered to establish a slush fund worth tens of thousands of dollars for a leading Melbourne real estate agent if it committed to an exclusive two-year advertising deal, <a href="https://www.crikey.com.au/2012/09/11/news-limiteds-premiere-package-for-agents-under-attack/" target="_blank">writes our sister site Crikey.</a>
<a target="_blank" href="https://twitter.com/crikey_news"><img width="470" src="/images/stories/2012/09/crikeytweet.jpg"></a>
 
REA Group CEO Greg Ellis's response to the article was: 
“Let me be very clear in saying that all REA Group’s customer products and services are offered in strict compliance with applicable laws.  “The Ultimate Online Advertising Package benefits agents and vendors by providing price certainty to selected enhanced products, including our top-ranking Premiere Product.   “There is no cash incentive paid to any customer office or agent under the Ultimate Online Advertising Package.
"Neither is there any cash incentive paid to any customer office or agent as part of our Cooperative Marketing Arrangements. Those arrangements are offered at franchisor level to provide training and education to franchisee offices and agents.   “Crikey has reproduced only part of the confidential letter of agreement outlining a cooperative funding arrangement. The letter goes on to require the contracting party to ensure compliance with all applicable laws in performance of cooperative marketing obligations, including the Estate Agents legislation to which the Crikey article refers.    “Furthermore, we’re disappointed with the negative assertions being made about the conduct of real estate agents. We work very closely with real estate agents and know them to be a hard working group of people who are motivated by delivering the best outcome for their customers. To suggest they are not complying with the relevant legislation or not acting in the best interest of their vendors, is entirely unfair. 
"We welcome a full and thorough review of the media industry’s current and historical business practices,” Ellis concluded. 
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REA Group offers 'slush fund' to real estate agency in return for advertising: Tweet of the day

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La Contadina, an iconic Carlton restaurant on Rathdowne Street, is going under the hammer after 30 years of continuous operation by the same family.
The Mico family have run the restaurant as a classic Melbourne institution but have decided to sell up.
Guy Naselli and Raff De Luise from ICR Property Group are expecting $2 million plus at its September 27 auction.
The Mico family arrived in Australia from Italy in 1967 and have been running restaurants since then. Giovanni, the current owner of La Contadina, took over family affairs in 1975.
Not only did he run the restaurant, he has apparently also been a singer an actor and a film director.
The Mico family are very fond of the celebrities who have eaten at the restaurant which even included the much photographed former Prime Minister John Howard.
The restaurant was recently listed for lease at $1450.00 per week plus GST and all outgoings, but that leasing fell through and it’s being offered with vacant possession.
Naselli says the property could lease at $120,000 per annum.
The solid brick building is a two storey freehold with a first floor residence or office.
The walls of the restaurant are adorned with photos of Carlton celebrities and other memorabilia.
Naselli says the furniture and decorations aren’t included in the sale but there is the possibility to negotiate with the owners after settlement.
<img src="/images/stories/2012/09/howard.jpg">
It sits on 150 square metres of land on the east side of Rathdowne Street, 600 metres north of the exhibition gardens.
The heritage listed property was briefly listed for sale in 2011 through the same agent. It was also listed in 1997 for $385,000.
“The original subdivision dates abck to 1948, so the building age must be pretty close to that,” says Naselli.
“It’s been getting a fair bit of interest. Including a couple of inquiries from developers.”
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Iconic Carlton restaurant La Contadina listed with $2 million-plus expectations

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Fairfield Chase Retail Centre, a Spencer Street property in Fairfield, NSW, with development approval for 119 units, has has passed in at auction on a vendor bid of $9.5 million.
Jones Lang LaSalle agent Anthony Bray is in further negotiations with a buyer. The asking price for the property is $10 million.
<img width="470" src="/images/stories/2012/09/fairfieldchase.jpg">
The centre currently earns $1,354,000 per year in rent, with 50% of that coming from the healthcare anchor tenant, which has a lease to 2018.
Along with the anchor tenant there are 22 others, including the Fairfield fruit market.
The building comes with development approval for two 76-metre residential towers with a total 119 one-bedroom, two-bedroom and three-bedroom apartments.
The site currently has 171 parking spaces, and the approved plans would add two further levels of parking for a total of 272 car spaces.
The Urbis-designed plans would involve the demolition of the existing retail centre to build a new medical centre, supermarket and specialty stores.
The plans were approved last year, so a new buyer would have four years before they lapse.
The shopping centre tenants are the subject of termination and/or relocation clauses, which agent Anthony Bray says provides flexibility for any buyers to realise the full development potential.
The 5,160-square-metre property is in the centre of Fairfield, nine kilometres south of Parramatta, between Spencer Street, Smart Street and Council Lane.
It went to auction on August 30.
Bray says properties like this are harder to come by.
“There are lot more properties like this being developed than there are approved.”
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NSW shopping centre Fairfield Chase passed in at auction short of its $10 million asking price

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Most Melbourne agents are slightly underquoting price expectations before auction, according to a Property Observer analysis of 220 Melbourne property auction results.
It showed 77% of properties sold for above the highest price indicated by the agent at auctions between July and early September this year.
Properties that sold above indications went for an average of 5% above expectations.
Of the 169 properties that sold above expectations, 28 properties or 16% sold for more than 10% above the highest estimated price indications.
The survey doesn’t include properties that passed in and sold later.
The above-estimate sales trend was most prevalent in the $600,000 to $1 million price bracket, where 83% of properties sold above agent expectations.
In the sub-$600,000 price bracket, 68% of properties sold for more than the pre-auction highest price indicated.
In the $1 million-plus price bracket, 80% of properties sold for more than the pre-auction highest price indicated.
Of the 220 properties analysed, just one sold for less than the price bracket indicated before auction.
The most notworthy case in Property Observer's survey was a two-bedroom house in Northcote that sold for 21% above the price indicated before auction. The agent was quoting $600,000 to $660,000 for the house, which eventually sold for $801,000 after enthusiatic bidding.
A four-bedroom house in Collingwood sold for 21% above the price indicated before auction. The agent quoted $860,000 to $950,000 for the house which eventually sold for $1.15 million.
The only property to sell for less than the pre-auction price indicated was a two-bedroom unit in Essendon. The agent was quoting $460,000 to $500,000 for the unit, which eventually sold for $442,000.
The auction data and price indications from the surveys were taken from data published by buyers' agents Antony Bucello and Catherine Cashmore of the National Property Buyers group.
The property auctions attended by the duo were generally chosen as high investment grade properties.
The auctions attended represent those deemed “cream of the crop properties” by National Property Buyers.
Cashmore says although the practice of under quiting is unpopular, it is hard to police.
"Buyers get very upset when properties sell in excess of a quoted range and often call for increased legislation.
"However, it’s a near impossible task to attempt to regulate the real estate sales industry to quote fairly for both vendor and purchaser," Cashmore says.
She says that  according to the Estate Agents Act in Victoria, agents are required to write an estimate of likely sale price on the sales authority.
"This can either be a single price, or 10% price range. This range doesn’t have to be the vendors'asking price or in instances where the vendors' asking price is unknown, reflective thereof."
"If an agent advertises the property under the bottom number of the estimated price range it’s regarded as underquoting. However, the agent’s price quote is a conservative appraisal of what the property can easily and comfortably achieve, not a guesstimate of what buyers might pay in the heat of an auction, or for that matter, the vendor’s wish price.
"The key during an auction is to watch when the property goes on the market – if the campaign along with vendor expectation has been managed effectively, it shouldn't be far from the price quoted.  However, the end number reached via bidding is largely out of the auctioneer's control."
Underquoting properties is a punishable offence – in May real estate agent Dean Anthony Johnson had his licence suspended for two months and was fined $5,000 for underquoting.
At the time Consumer Affairs Victoria director Dr Claire Noone said the laws were there to protect consumers.
“Buying a home is usually the biggest financial outlay in a person’s lifetime and laws are in place to protect consumers from misleading advertising and underquoting,” Noone told Fairfax.
‘‘Licensed estate agents should be aware of their obligations under the Act and the Australian Consumer Law in relation to advertising properties.”
Consumer Affairs Victoria guidelines on price advertising and underquoting for real estate salespeople says underquoting the likely selling price of a property in breach of the Australian Consumer Law and the Estate Agents Act 1980.
“These Acts prohibit salespeople from making representations about property prices that are false or misleading, or are likely to mislead or deceive,” the guidelines say.
The guidelines list a number of situations that they deem to be underquoting:
“Underquoting occurs when a salesperson:
•             advertises or advises a prospective buyer that a property is available for sale at an amount that is less than the vendor’s asking price or auction reserve price
•             advertises or advises a prospective buyer of a price that is less than the salesperson’s current estimate of the likely selling price
•             advertises or continues to advertise a price that is less than a genuine offer or expression of interest by a prospective buyer that the vendor refused
•             gives an inaccurate appraisal of the current market price of a property.”
"Under the ACL individuals making false and misleading representations regarding the price of a property can be fined up to $220,000 while corporations can be fined $1.1 million."
Cashmore says agents who don't suggest a somewhat low figure risk scaring potential bidders away from auctions.
"Selling agent know that to run a successful auction means attracting as many buyers as possible. The more buyers prepared to put their hand up at auction the better the result."
"No agent is going to risk 'over cooking' a property by quoting too high. It will always be placed – at the very least – a 'conservative' level.
"Whilst, I’m in full agreement of fair legislation outlawing deceitful advertising, and agree that price quotes which vary between agencies can be a ‘wishy-washy’ guideline in purchasers' eyes, buyers should not be misled into believing further legislation will change the sales process to work in their favour."
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Melbourne bullish auction sales typically selling at 5% above upper end estimate

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."

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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."

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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.

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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."

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Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

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

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

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

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

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