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A historic Parramatta bank has sold for $7.1 million to a Hong Kong-based investor.
The landmark Westpac Bank site in Church Street was first taken up by Bank of NSW in 1874.
<a target="_blank" href="https://www.propertyobserver.com.au/retail/historic-westpac-parramatta-bank-listed-with-%2475-million-plus-hopes/2012072055674">The imposing sandstone building</a> on the site was built in 1938.
Agent Simon Staddon from Burgess Rawson Sydney says the sale is very strong given the nature of the lease.
“The price directly reflected the lease terms, which was to June 2015 plus option periods,” Staddon says.
“Investors can be nervous of option periods. That’s not to say the bank will move out, they probably won’t.
“If it was a new 10-year lease the yield would be a lot higher.”
The site is 100% leased to current tenant Westpac, which emerged from Bank of NSW in 1982.
The site earns a net income of $536,000 per annum plus GST. There are 2.5 years left on the lease with two five-year options.
“I’m of the opinion it was a very a good sale,” Staddon says.
The façade of the two-storey interwar stripped classical building is dominated by large ashlar sandstone columns, flanking timber four-panelled double doors.
Prior to and during its early life as a bank, the site was also operating as the Australian Arms Hotel.
After leasing for some years, the Bank of NSW acquired the two-storey inn, altered it and used it until 1938, when it was demolished and the current premises were built.
The land was originally granted to Governor Lachlan Macquarie’s superintendent of public works, Richard Rouse, in 1823. He built the Australian Arms Hotel in 1838.
The new building was designed by Spanish architectural firm Cosh and Dods, also responsible for Edwards Dunlop Building in Brisbane, Daily Telegraph Building in Sydney and St Brigid's Catholic Church at Red Hill.
The site now includes an adjacent three-storey modern building, bringing the total area to 1,275 square metres and includes on-site parking for up to nine cars.
Parramatta was established in 1788 and is the oldest inland European settlement in Australia.
The town was founded after the first fleet settlers built farms there to support the 1,000 convicts, soldiers and administrators. The site was the furthest navigable point on the Parramatta river, and the soil was deemed significantly better than that around Sydney Cove.
Growth in the area was minimal until the 1850s, when development was aided by the construction of a railway line. Then rapid expansion continued through the late 1800s, with Parramatta becoming a commercial hub for the western Sydney area.
Some of the most significant development in the city happened during the post-war years with industrial growth, immigration and the establishment of public housing estates.
The town is home to many of Australia's earliest colonial buildings, with more heritage-listed buildings in than Sydney's historic Rocks quarter.
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awalsh-7Ub9EypybQ

Historic Parramatta bank sells for $7.1 million

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An agricultural school in Tardun, 140 kilometres east of Geraldton, with 12,275 hectares of farmland has been listed for sale.
The Christian Brothers Agricultural School Tardun closed in 2009.
The property comes with school buildings and infrastructure along with a 12,275-hectare farm consisting of cropping and livestock country.
The school buildings consist of a two-storey administration and residential accommodation building, along with St Mary’s Convent and Chapel.
The design of the school buildings was influenced by priest and architect John Cyril Hawes, whose works are prominent within the mid-west region.
There is also a range of general purpose and specialised classrooms, free-standing houses and residential accommodation, and service infrastructure.
The farm attached to the school was used by the students as part of their education, mainly focusing on cropping and sheep farming.
Half of the property is cleared and arable with the other half consisting of grazing areas, laneways, building surrounds and open space, shade, fence lines, dams, catchments and waterways, including the upper reaches of the Irwin River.
Part of the farm is currently leased at $115,000 per year. It’s a short-term lease to a local farmer who will farm it for just one season.
The area is has been the subject of investment by Australian and overseas investors, with iron ore, gold and other minerals found nearby.
Selling agents Jock Drummon from Landmark Harcourts and Damian Molony and Victor Sankey from McGees are marketing the property with various purchasing angles.
Possible ideas for the property include mining accommodation, personnel and heavy machinery training centre, community service centre, tourism accommodation or adventure outpost, camp or educational activities.
On a land basis, without the improvements, Sankey says the property could sell for above $3 million, but he says it’s very difficult to gauge a price.
“It is really difficult to say with this one. It’s got such different value to different potential users,” Sankey says.
“I’d say above $3 million, but the aggregate value with all the improvements is worth a lot more than that.”
He says there is potential mining interest in the property.
The Christian Brothers' Agricultural School was a Catholic secondary school with residential facilities for up to 90 students.
The 80 year-old school was predominantly a boarding school.
According to the school’s website, the hectare farm produced grain, mainly wheat, and carried nearly 7,000 sheep, 100 pigs and 53 shorthorn cattle.
Pigs were used to help augment the diet and the financial income of the farm.
The school was run by Edmund Rice Education Australia. At the time Edmund Rice executive director Wayne Tinsey said the school was operating at a loss, but that was not the reason behind the closure.
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Christian Brothers WA agricultural school with 12,000 hectares of land and mining potential listed

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Lend Lease’s timber Docklands development Forté has topped out after just 16 weeks, making it the tallest timber residential building in the world.
Construction started in the first week of June, with levels rapidly added.
Windows and insulation are now being installed. Construction of the building is expected to be completed in mid-October.
The building is constructed from cross-laminated timber, which Lend Lease say has a structural strength similar to concrete and steel.
“Concrete and steel buildings are carbon intensive but timber, as well as being renewable, has the advantage of storing carbon. Timbers used are also sourced from certified sustainably managed forests,” says Lend Lease’s Murray Coleman.
“With the structure being built entirely from CLT, Forté will reduce CO2 equivalent emissions by more than 1,400 tonnes when compared to concrete and steel – the equivalent of removing 345 cars from our roads.”
<img src="/images/stories/2012/09/fortesept71.jpg">
There will be 23 apartments in the 32-metre, 10-storey building, priced from $430,000 to $795,000.
Construction of the building is meant to quieter, more efficient, faster and safer than construction with more traditional materials.
Property Observer visited the site, where work continued despite strong winds.
Lend Lease has started marketing for the campaign but is still in the registration of interest stage.
 
<img src="/images/stories/2012/06/fortesite3.jpg" alt="fortesite3" width="470" height="313">
Forté's progress as of June 8
 
<img src="/images/stories/2012/06/fortejune3.jpg" alt="fortejune3" width="470" height="313">
Forté's progress as of June 29
 
<img src="/images/stories/2012/07/july13forte/_mg_5006.jpg" alt="_mg_5006" width="470" height="313">
Forté's progress as of July 13
<img src="/images/stories/2012/08/forteaug173.jpg">
Forté's progress as of August 20
<img src="/images/stories/2012/09/fortesept7.jpg">
Forté's progress as of September 7
 
{module Would you buy an apartment in a timber building?}
 
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Docklands tower Forté now the tallest timber residential building in the world as it tops out at 10 storeys

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A 110-hectare barramundi, cattle and lychee farm is listed for auction in far north Queensland’s Mount Molloy, 60 kilometres inland from Cairns.
The farm comes with 10 aquaculture ponds, which yield up to one tonne of barramundi per week.
<img src="/images/stories/2012/09/barramundi.jpg">
The farm also has 700 lychee trees under irrigation and 80 hectares of fattening paddocks.
After operating as a farm for five years the farm is being sold as part of a deceased estate.
It has three kilometres of river frontage from the Rifle Creek, which gives the property perennial water supply. The property comes with unrestricted access to the creek.
It comes equipped with a farm shed with a concrete hardstand, generator room and cooling facilities, worker accommodation and a large diesel generator which automatically cuts in if the power is interrupted.
It also comes with a gazebo and barbeque overlooking the ponds.
Included in the sale is a list of plant and equipment including a late-model Landcruiser, six-metre container, New Holland backhoe, pond aerators, finglerings cages, forklift, water tant and a 4x4 Kubota all-terrain vehicle.
It’s being sold by Tony Roberts of Colliers International.
“The property offers a great opportunity to escape the rat race, live amongst beautiful surroundings and be a part of an exciting, expanding aquaculture industry," he says.
“This is a tight-run operation which can be operated by a family or an owner with three or four staff (seasonal). The aquaculture has room for expansion.”
Water from the river is fed through into to the dam which then feeds the ponds and is also used to irrigate the lychee orchard.
The auction has been put off, with paperwork being required by the beneficiaries of the will.
Roberts says he has had strong interest from around Australia.
“We’ve had 14 registered inquiries interested in bidding,” Roberts says.
He says with properties like this it’s hard to gauge a sale price.
“Because of the situation as a deceased estate, it’s not like walking into a fish farm that’s up and running.”
“It’s in a holding pattern. It’s got fish on it, but you’d have to restock.”
He says it’s not the biggest barramundi farm in the region, but there is room to install a few more ponds.
“And you diversify with redclaw [crayfish].”
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Barramundi, cattle and lychee farm fishing for new buyer in Mount Molloy, Queensland

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There could be a severe shortage of housing stock in Perth over the next 20 years as the population grows faster than the city's supply of residential land, according to a report by Knight Frank.
A further 280,000 dwellings will be required over the next 20 years, but developers’ stock of lots with conditional approval is just 43,000, according to the Knight Frank englobo land report.
Australian Bureau of Statistics suggest an average annual population growth of 1.85% in the greater Perth region over the next 20 years, pushing the population up 727,000 to 2.49 million people by 2031.
<img src="/images/stories/2012/09/kfsept6.gif">
Source: Knight Frank
Knight Frank director John Corbett says there is an increasing gap between englobo land parcels (undeveloped land zoned for closer settlement growth with potential for subdivision) reaching the market and the demand for housing, with the median price for residential land up more than 10% over the last 12 months.
“The availability and development of englobo land has slowed in recent years and will lead to increased prices and significantly increased rents in established residential properties,” Corbett says.
“The many factors that have restricted residential land releases don’t appear to be abating. A tightening of credit and a softening in sentiment because of economic uncertainty in Europe are holding back the market, however, pressure is building for prices to increase”.
He says the current demand for housing lots is putting increasing pressure on government and developers with northern and southern suburbs such as Yanchep, Baldivis and Byford continually expanding to meet demand.
Baldivis, Yanchep and Byford are the top three suburbs for conditional approved lots, with 7,834 proposed lots between them.
The report says the supply of new land for residential development in WA is constrained by variations between councils on developer contributions; a constrained sand supply; environmental considerations and approvals; rising price and time costs associated with infrastructure; and access to reliable water supplies.
There is up to five years worth of potential future land supply with the current stock of lots, the report finds.
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Perth could face severe land shortage in next 20 years: Knight Frank

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The NSW government could tax investment property owners who will benefit from its newly unveiled 20-year transport upgrade.
The $100 billion, 20-year draft transport master plan includes new motorways, new rail links, an underground harbour rail crossing in Sydney, and other infrastructure, public transport  and service upgrades.
Among the locations with mooted transport infrastructure improvements are the eastern suburbs light rail, Leppington in the south-west growth centre with a new rail link, Parramatta with motorway upgrades, Rouse Hill in the north-west growth centre with a new rail link from Chatswood, Sydney CBD upgrades and Dee Why, with new bus rapid transport.
Click to enlarge
<a href="/images/stories/2012/09/transport.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/09/transportthumb.jpg"></a>
The report puts forward plans to partially fund the massive upgrade by levying property owners who might benefit from any upgrades.
“The development of new transport infrastructure positively influences the appeal of new neighbourhoods and communities as a result of improved transport access – regardless of whether property development takes place before or after the creation of the transport links,” the report says.
While no solid numbers are put forward, the report cites examples from other countries where transport upgrades have been financed by taxing land- owners.
“Many countries, such as Hong Kong, Singapore, Japan and the United States, have introduced measures to capture a share of the additional value to nearby properties, including developer contributions and targeted levies. We have reviewed such options and identified those with the greatest potential for application in NSW.”
The report cites Chicago’s tax increment financing (TIF) scheme as a possible model for financing the scheme.
Popular in the US, TIF schemes use projected future tax gains to subsidise infrastructure that when built will lead to those gains. The new infrastructure pushes up real estate prices around the area.
Chicago runs 130 TIF districts, which earned the city US$500 million in 2006.
It applies to both commercial and residential properties.
The report also references developer contributions in the UK where charges vary with the scale of a development.
Another option raised is transport levies such as those imposed in Sunshine Coast and in France. Residents of the Sunshine Coast paid an annual $20 fee per property to help pay for infrastructure upgrades.
The report also recommends commercial developments alongside public transport infrastructure to pay for the upgrades.
“The sale of these commercial rights, or the lease income over time, can help to reduce the cost of the transport asset.”
“Southern Cross Station in Melbourne is one such example, where a PPP [public-private partnership] project and the sale of the adjacent retail and office development sites partially offset the Victorian Government’s total project costs.”
Premier Barry O’Farrell and Transport Minister Gladys Berejiklian have not committed to any of the recommendations except the $8.5 billion north-west rail link in Sydney and the harbour crossing.
Other financing methods raised in the report include distance-based tolls for roads and congestion charges.
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NSW government could tax property owners set to gain from transport upgrades

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Dhaka in Bangladesh is the least liveable city in the world, according to The Economist. It’s not quite as unstable as some of the others in the list, but it’s dragged down by its astonishingly low healthcare and infrastructure rankings.
Property Observer has looked at the cities ranked <a target="_blank" href="https://www.propertyobserver.com.au/international/what-property-investors-can-buy-in-the-least-livable-cities-in-the-world-six-to-10/2012082756216">six through 10</a>, plus number  <a target="_blank" href="https://www.propertyobserver.com.au/international/chinese-investment-and-mining-driving-property-prices-but-port-moresby-papua-new-guinea-world-s-second-least-liveable-city/2012090256363">two, Port Moresby, Papua New Guinea</a>, <a href="https://www.propertyobserver.com.au/international/property-in-lagos-nigeria-could-be-boosted-by-an-oil-boom-but-threat-of-violence-is-high/2012083056316" target="_blank">three, Lagos, Nigeria</a>, <a href="https://www.propertyobserver.com.au/international/harare-has-poor-healthcare-and-political-violence-but-property-is-relatively-inexpensive/2012082956292" target="_blank">four, Harare, Zimbabwe</a> and five, <a target="_blank" href="https://www.propertyobserver.com.au/international/what-property-investment-is-like-in-algiers-one-of-the-world-s-least-liveable-cities/2012082856272">Algiers, Algeria.</a>
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/08/liveable.gif" rel="shadowbox"><img src="/images/stories/2012/08/liveablethumb.gif"></a>
The Economist Intelligence Unit’s Liveability Survey assesses the locations around the world that provide the best or the worst living conditions.
The survey doesn’t include the absolute worst of the worst, just cities or business centres that people might feasibly want to live in or visit. So it does not include cities like Kabul in Afghanistan or Baghdad in Iraq, both in the grip of conflict.
Conflict is generally found to be the primary reason for the position of the bottom ranked cities.
“Threat of armed conflict will not just cause disruption in its own right, it will also damage infrastructure, overburden hospitals, and undermine the availability of goods, services and  recreational activities,” the report says.
Africa and Asia are home to all 13 cities in the bottom tier, with violence from crime, civil insurgency, terrorism or war playing a strong role in keeping them at the bottom of the pack.
The Dhaka metropolitan area had a population of nearly 13 million people in 2008 and is the ninth largest city in the world. With increasing amounts of foreign investments in the city and a greater volume of commerce and trade, the city is one of the fastest-growing cities in the world.
The report finds the various threats to stability are either "uncomfortable" or "undesirable", though the threat of military conflict is "tolerable". The various healthcare indicators are either "intolerable" or "undesirable", though there is a "tolerable" level of private healthcare. The climate is "uncomfortable", as are the levels of cultural hardship and availability of consumer goods. The Economist even finds the food and drink to be "uncomfortable".
Private education is "tolerable", but the road and public transport networks are "intolerable". Utilities are "tolerable" at best. And tellingly, the availability of good-quality housing is undesirable. So what does that mean on the ground?
A <a href="https://www.rehab-bd.org/new_Comprehensive_Study_On_The_Real_Estate_Sector_Of_Bangladesh.pdf" target="_blank">July study</a> by the Real Estate and Housing Association of Bangladesh found house and land prices in Dhaka have been rapidly rising since 2000.
For apartments the cheapest place to buy is in Mohammadpur, with a 2010 median price of $832 per square metre. The most expensive is in Baridhara at $3,700 per square metre. For land, Badda is the cheapest area, at $772 per square metre, while Baridhara is again the most expensive at $10,292 per square metre in 2010.
The figures don’t take into account black-market purchases.
“A good amount of undocumented money has been utilised in acquiring land, apartments, buildings, shops etc. in past few years,” the report says.
On one Bangladeshi property listing site, a three-bedroom, 247-square-metre apartment in Baridhara is being sold for approximately $558,400.
<img src="/images/stories/2012/08/dhaka1.jpg">
Nearby a three-bedroom, 278-square-metre apartment is being sold for approximately $977,852.
<img src="/images/stories/2012/08/dhaka2.jpg">
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Buying property in Dhaka, Bangladesh, the least liveable city in the world

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Port Moresby in Papua New Guinea is the second least liveable city in the world, according to The Economist magazine. The magazine says stability is very low, healthcare poor and infrastructure lacking, though its education levels aren’t atrocious nor is its culture and environment rating the lowest.
It ranks 139th out of the magazine's list of the world's 140 most liveable cities (<a target="_blank" href="https://www.propertyobserver.com.au/international/melbourne-surpasses-vancouver-as-worlds-most-liveable-city-as-sydney-drops-to-seventh/2012081456033">Melbourne is ranked first, with Sydney seventh</a>).
Property Observer has looked at the cities ranked <a href="https://www.propertyobserver.com.au/international/what-property-investors-can-buy-in-the-least-livable-cities-in-the-world-six-to-10/2012082756216" target="_blank">six through 10</a>, plus number <a href="https://www.propertyobserver.com.au/international/buying-property-in-dhaka-bangladesh-the-least-liveable-city-in-the-world/2012090356226" target="_blank">one, Dhaka, Bangladesh</a>, <a target="_blank" href="https://www.propertyobserver.com.au/international/property-in-lagos-nigeria-could-be-boosted-by-an-oil-boom-but-threat-of-violence-is-high/2012083056316">three, Lagos, Nigeria</a>, <a href="https://www.propertyobserver.com.au/international/harare-has-poor-healthcare-and-political-violence-but-property-is-relatively-inexpensive/2012082956292" target="_blank">four, Harare, Zimbabwe, </a>and <a href="https://www.propertyobserver.com.au/international/what-property-investment-is-like-in-algiers-one-of-the-world-s-least-liveable-cities/2012082856272" target="_blank">five, Algiers, Algeria</a>.
Strong growth in the mining sector in Papua New Guinea has led to an influx in foreign investment in the country, especially from Chinese interests.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/08/liveable.gif" title="Click to enlarge"><img src="/images/stories/2012/08/liveablethumb.gif"></a>
The Economist Intelligence Unit’s Liveability Survey assesses the locations around the world that provide the best or the worst living conditions.
The survey doesn’t include the absolute worst of the worst, just cities or business centres that people might feasibly want to live in or visit. So it does not include cities like Kabul in Afghanistan or Baghdad in Iraq, both in the grip of conflict.
Conflict is generally found to be the primary reason for the position of the bottom ranked cities.
“Threat of armed conflict will not just cause disruption in its own right, it will also damage infrastructure, overburden hospitals, and undermine the availability of goods, services and  recreational activities,” the report says.
Australia’s Smart Traveller website, published by the Department of Foreign Affairs and Trade, advises that Papua New Guinea is in the grip of civil unrest and political tension, especially following the release of election results, which it says could fuel potentially violent, armed confrontations.
The site warns that ethnic disputes continue to flare up around the country and can quickly escalate into violent clashes.
“The clashes not only create danger within the immediate area but also promote a general atmosphere of lawlessness, with an associated increase in opportunistic crime,” the site says.
“Car-jacking is an ever-present threat, particularly in Port Moresby and Lae. Car doors should be locked with windows up at all times, and caution should be taken when travelling after dark. In the evening or at night, we recommend you travel in a convoy.”
Travellers are also warned about potential kidnappings and a heightened risk of robbery and attack even at well attended shopping centres in Port Moresby.
So what happens if you get posted to a gold mine in Papua and you end up having to buy a property?
Perhaps because it’s a former Australian territory there seems to be a number of Australian-based real estate agents in the city.
The recently approved liquefied natural gas project has sent property prices soaring, according to 2011 reports, and local agent Andrew Henry from Century 21 agrees.
“The market has changed since 2011, there’s a lot of new buildings, new houses new apartments, all this has happened in the last couple of years.”
He says the median price for houses is around $670,000 and for apartments it’s around $200,000.
He says the security situation in the country is much better than it has been in the past.
“In security terms it’s good, not nearly as bad as before. Before it was a bit scary and it was hard to move around. But at this stage there’s more freedom of movement, you can go wherever you want to go.”
Henry says there’s an increasing number of foreigners buying in Port Moresby as more and more projects are improved and expects the price to go up.
In Korobosea, in the inner-north of Port Moresby, Century 21 is <a target="_blank" href="https://www.century21.com.pg/brochures/C21%20S6352.pdf">selling a three-bedroom colonial-style home for $1.1 million</a> (pictured below). It comes with a large backyard and a Hills hoist to remind you of home.
<img src="/images/stories/2012/08/portmoresby.jpg">
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Chinese investment and mining driving property prices but Port Moresby, Papua New Guinea, world's second least liveable city

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The London Tavern in Port Melbourne has been listed for auction with hopes in the low to mid-$3 millions.
<img src="/images/stories/2012/08/thelondon.jpg">
It’s being sold as vacant possession after the operators of the pub moved out a few weeks ago.
It comes on 330 square metres of land and goes to auction on September 21.
The pub is on the corner of Beach Street, with a 20-metre frontage, and Princes Street, with an 18.3 metre frontage.
Agent Joseph Carbone from Vinci Carbone Property says the property isn’t covered by any heritage restrictions.
He says the site is a prime development site.
"Sites like are very rare. It's extremely rare to get a freehold of this nature," Carbone says.
 Carbone says they are selling the hotel freehold with plant and equipment.
The 640-square-metre building comes with a liquour licence.
It is zoned mixed use. Carbone says interest in the site could come from potential owner-occupiers, home renovators or more likely developers.
"It is also surrounded by numerous successful residential developments more particularly adjoins the highly regarded residential suburb of Beacon Cove," he writes.
Plant includes items like equipment, kitchen appliances, four kegs of beer, furniture and security equipment.
The pub is being sold by a private local investor.
The site was the subject of a case in the Supreme Court of Victoria last year, with a former tenant seeking relief against forfeiture after failing to pay rent.
The former tenant was in breach of lease in a number of ways, mostly stemming from not paying rent.
He moved out and new tenants took over in December 2011, but have since vacated.
It's been 3AW’s pub, with the suggestion the view from the first floor dining area is one of Melbourne’s assets.
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Port Melbourne pub The London listed for auction

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A mortgage broker in Nelson Bay, the most mortgage delinquent suburb in Australia, agrees the blame on its unenviable record rests with impulsive holidaymakers.
A recent report by Fitch Ratings found<a target="_blank" href="/news"> the NSW Hunter region town has a delinquency rate of 7.8% for mortgages more than 30 days in arrears</a> – five times the national average of 1.6%.
Local broker Ben Eick of Hunter Home Loans Solutions in Nelson Bay says the local residents aren’t to blame for the rate,<a target="_parent" href="/news"> echoing comments by local agents to Property Observer last week.</a>
 “My understanding is that the properties are bought basically from people coming up here on holiday, liking the area, seeing an apartment or unit that looks fantastic,” he told Australian Broker Online.
 He says holidaymakers bought a slew of properties in 2005 and 2006 gambling on prices going up.
 “[They thought] these places would keep appreciating … and of course what they’ve done since then is depreciate. And that’s where they’ve come unstuck.”
 Eick says changes in the rental market have made it harder for investors to rent the property out for most of the year.
 “The rental market up here isn’t especially strong, as opposed to other areas that are driven by the mining industry further up the valley.”
 “It can have a direct effect on whether they can pay their mortgage,” he says.
Local agents say the problem is due to people out of town letting their mortgage slip. They say the rate has also been driven up by a series of unit developments which have gone into receivership.
“There are a number of developments throughout the area which were highly geared and commenced or completed construction too late to benefit from the last boom, and the loan value is so high that the borrowers have experienced higher-than-average days on market to achieve a suitable sale,” agent Daniel O'Meara says.
The Fitch report blamed the high delinquency rate on “stagnation in the local housing market, which led to an accumulation of arrears in the 90+ day bucket”.
“The stagnation in the local housing market has increased the time required for foreclosed properties to sell, leading to an accumulation of arrears in the 90+ day bucket (4.57% as of March 2012).
“Furthermore, properties that are in arrears tend to be high-value properties, where the mortgage balance is on average almost three times the average loan balance in Nelson Bay,” says Fitch.
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Nelson Bay mortgage arrears due to starry-eyed holidaying buyers: local broker

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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