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The heritage-listed old sandstone jail in Castlemaine Victoria has sold for $550,000 to a local consortium that plans to redevelop the site into a residential project.
The consortium plans to build 22 townhouses and 16 homes on the 1.73-hectare site and use the mid-19th-century building as a conference centre.
The group comprises Gary McClure, Trevor Butcher and Don Culvenor.
McClure told the Australian Financial Review he hoped the jail would become an arts and hospitality hub for the area.
“However the long-term viability of any proposal is crucial. We don’t want to start something that again fails within a few years from lack of support," says McClure.
McClure was referring to the previous tenant, CVGT, which relinquished its lease in November 2009 after failing to secure government funding to redevelop the site.
The jail was built from local sandstone between 1857 and 1861 based on the 1842-built model prison Pentonville in London. The Pentonville influence can be seen in the the radial wings, central hall and exercise yard.
Heritage Victoria says the prison, along with the Bendigo and Beechworth jails, are the closest Victorian representations of the panopticon design – a concept that allowed a single guard to watch all inmates of a jail without the inmates knowing they were being watched.
The 67-cell Old Castlemaine Gaol was designed by Charles Vickers in the Victorian period Academic Classical style.
The jail was decommissioned in 1990, with the cells later converted to accommodation. Since then it has been used as a function centre, school camp and conference venue.
Colliers agent Andrew Lewis negotiated the sale for Mount Alexander Shire Council.
The agents received six submissions over the six-week campaign, which kicked off on May 21.
Castlemaine, 120 kilometres north-west of Melbourne, is a former goldrush town and is now a fruit and farming area with population of about 8,000.
The site is zoned residential 1, though any development would require heritage approval.
Mount Alexander Shire mayor Janet Cropley told Fairfax the zoning and heritage listing would ensure development was sympathetic to the shire.
“This proposal represents the best chance for the jail to have a viable future whilst maintaining community access and use,” she said.
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awalsh-7Ub9EypybQ

Old Castlemaine Gaol sells to consortium with residential plans

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Tregear, in Sydney’s outer west, is the city’s suburb with the highest gross yield for houses at 7.1%.
Property Observer has listed the top 15 suburbs with the highest rental yields for houses in Sydney.
The list is dominated by western suburbs, and most have median prices in the $200,000s.
<a href="/news">Middleton Grange</a> had the highest median price at $407,400, with a rental yield of 6.3%.
With the highest yield, Tregear also had the lowest median price at $220,000.
<a href="/news">Blackett </a>had the second highest yields, followed by <a href="/news">Willmot </a>and <a href="/news">Lethbridge Park</a>.
According to the 2011 census, <a href="/news">Tregear </a>had a population of 3,916 and had 1,341 residences.
Managing director of Ben Price Estate Agents Ben Price says the area is made up of former housing commission properties.
“There were originally 12,000 Department of Housing homes in the area, clumped in one spot. Now more that 50% of those have been sold off. Existing tenants were offered the homes to buy and some have been sold on the private market,” Price says.
“That happened over the last couple of decades.”
RP Data lists the median price for the suburb at $220,000, but Price says that figure is probably a bit low.
“There’s not really much for $220,000. You might find something that needs a bit of work. Then you might have to spend $20,000 to get it up to a rentable condition. For that you’d get in the low $300s per week.”
Price recently sold a property on Aurora Drive to an investor for $285,000. The four-bedroom cladded home is leased at $350 a week.
He says it’s an attractive area for investors, with 50/50 divide between investors and home buyers.
“There’s not much development here. We run a vacancy rate of less than 1%. I think the returns will be there for a long time to come.”
<table width="299" cellspacing="0" cellpadding="0" border="0" align="left"><tbody>
<tr>
<td width="121" valign="bottom" nowrap>
Suburb
</td>
<td width="111" valign="bottom" nowrap>
Median Price ($)
</td>
<td width="67" valign="bottom" nowrap>
Yield (%)
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Tregear
</td>
<td width="111" valign="bottom" nowrap>
220,000
</td>
<td width="67" valign="bottom" nowrap>
7.1
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Blackett
</td>
<td width="111" valign="bottom" nowrap>
229,000
</td>
<td width="67" valign="bottom" nowrap>
7
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Willmot
</td>
<td width="111" valign="bottom" nowrap>
225,000
</td>
<td width="67" valign="bottom" nowrap>
6.9
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Lethbridge Park
</td>
<td width="111" valign="bottom" nowrap>
227,000
</td>
<td width="67" valign="bottom" nowrap>
6.9
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Whalan
</td>
<td width="111" valign="bottom" nowrap>
245,750
</td>
<td width="67" valign="bottom" nowrap>
6.8
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Emerton
</td>
<td width="111" valign="bottom" nowrap>
250,000
</td>
<td width="67" valign="bottom" nowrap>
6.7
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Shalvey
</td>
<td width="111" valign="bottom" nowrap>
260,000
</td>
<td width="67" valign="bottom" nowrap>
6.4
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Bidwill
</td>
<td width="111" valign="bottom" nowrap>
265,000
</td>
<td width="67" valign="bottom" nowrap>
6.3
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Middleton Grange
</td>
<td width="111" valign="bottom" nowrap>
407,400
</td>
<td width="67" valign="bottom" nowrap>
6.3
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Hebersham
</td>
<td width="111" valign="bottom" nowrap>
279,000
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Dharruk
</td>
<td width="111" valign="bottom" nowrap>
285,000
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Miller
</td>
<td width="111" valign="bottom" nowrap>
312,500
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Spring Farm
</td>
<td width="111" valign="bottom" nowrap>
375,000
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
North St Marys
</td>
<td width="111" valign="bottom" nowrap>
282,500
</td>
<td width="67" valign="bottom" nowrap>
6.1
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Cartwright
</td>
<td width="111" valign="bottom" nowrap>
305,000
</td>
<td width="67" valign="bottom" nowrap>
5.9
</td>
</tr>
</tbody></table>
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Outer-western suburb of Tregear leads Sydney suburbs for house rental yields

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The number of properties on the market in Western Australia has fallen over the June quarter, with could put price pressure on property there, according to the Real Estate Institute of Western Australia.
Sales numbers have increased, but new stock is not coming onto the market quickly.
“The volatility has gone, buyers are more confident and prices are stable. But if we don’t see the sold stock being replaced with new listings it may put price pressure on the limited stock that remains or increase demands on the building industry,” says REIWA’s David Airey.
Turnover for the months of April, May and June is up by 25% from the same period in 2011, with a projected 11,700 sales taking place in the quarter. In the March quarter it was at 11,600. The number of properties on the market dropped to 12,150 at the end of June and currently sits at around 11,000.
“This is well below the 14,300 properties we had on the market in March and sits below the equilibrium of around 12,000 listings, suggesting the market is swinging back to favour sellers,” Airey says.
The south-eastern Perth suburb of Canning Vale near Jandakot airport had the most sales for the quarter at 512. The median price increased 0.1% over the quarter to an annual median of $530,000.
He says the metropolitan Perth median house price is holding steady at $475,000. The figure is unchanged over the quarter and down 1% over the year. The median Perth unit price is at $324,500 down 3.1% from the March quarter and down 7.9% over the year.
House and unit sales in Perth are up around 5% for the quarter but Airey says this has been moderated by softer regional activity during this period, with house sales down an estimated 12% and the small multiresidential market down by 15%.
“In annual terms, house sales in Perth are up by 15% in 2011-12 when compared to 2010-11, but still remain some 15% below the 15 year average. Similarly, multi-residential sales are up 5% for the year but still 30% below the long term average due to weak investor activity.”
The number of sellers dropping their asking prices to get a sale has fallen by 13 percentage points on June last year, with 61% of sellers prepared to discount. The average reduction is 6.3%.
The time on market has also dropped by almost a week to an average of 73 days on market.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
JUNE   Qtr 2012 (p)
</td>
<td width="85" valign="top">
MARCH Qtr 
2012
</td>
<td width="94" valign="top">
% Change
3 months
</td>
<td width="85" valign="top">
% Change
12 months
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Median House Price
</td>
<td width="85" valign="top">
$475,000
</td>
<td width="85" valign="top">
$475,000
</td>
<td width="94" valign="top">
n.c.
</td>
<td width="85" valign="top">
-1.0%
</td>
</tr>
<tr>
<td width="168" valign="top">
Regional WA Median House Price
</td>
<td width="85" valign="top">
$360,000
</td>
<td width="85" valign="top">
$375,000
</td>
<td width="94" valign="top">
-4.0%.
</td>
<td width="85" valign="top">
-4.0%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Median Unit Price
</td>
<td width="85" valign="top">
$402,500
</td>
<td width="85" valign="top">
$407,250
</td>
<td width="94" valign="top">
-1.2%
</td>
<td width="85" valign="top">
-1.6%
</td>
</tr>
<tr>
<td width="168" valign="top">
Regional WA Median Unit Price
</td>
<td width="85" valign="top">
$324,500
</td>
<td width="85" valign="top">
$335,000
</td>
<td width="94" valign="top">
-3.1%
</td>
<td width="85" valign="top">
-7.9%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Median Land Price ***
</td>
<td width="85" valign="top">
$250,000
</td>
<td width="85" valign="top">
$245,000
</td>
<td width="94" valign="top">
+2.0%
</td>
<td width="85" valign="top">
+6.4%
</td>
</tr>
<tr>
<td width="168" valign="top">
Regional WA Median Land Price
</td>
<td width="85" valign="top">
$168,000
</td>
<td width="85" valign="top">
$165,000
</td>
<td width="94" valign="top">
+1.8%
</td>
<td width="85" valign="top">
-4.0%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Total Dwelling Sales - WA
</td>
<td width="85" valign="top">
11,700
</td>
<td width="85" valign="top">
11,600
</td>
<td width="94" valign="top">
+1%
</td>
<td width="85" valign="top">
+25%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Stock of Listings - Perth
</td>
<td width="85" valign="top">
12,150
</td>
<td width="85" valign="top">
14,300
</td>
<td width="94" valign="top">
-15%
</td>
<td width="85" valign="top">
-30%
</td>
</tr>
<tr>
<td width="168" valign="top">
Average Selling Days – Perth
</td>
<td width="85" valign="top">
73 days
</td>
<td width="85" valign="top">
79 days
</td>
<td width="94" valign="top">
-6 days
</td>
<td width="85" valign="top">
-6 days
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Seller Sentiment 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Vendors Reducing Price
</td>
<td width="85" valign="top">
61%
</td>
<td width="85" valign="top">
65%
</td>
<td width="94" valign="top">
-4% pts
</td>
<td width="85" valign="top">
-13%pts
</td>
</tr>
<tr>
<td width="168" valign="top">
Listing &amp; Selling Price Variance
</td>
<td width="85" valign="top">
-6.3%
</td>
<td width="85" valign="top">
-6.4%
</td>
<td width="94" valign="top">
-0.1% pts
</td>
<td width="85" valign="top">
-1.2% pts
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Rental Vacancy Rate
</td>
<td width="85" valign="top">
1.9%
</td>
<td width="85" valign="top">
1.8%
</td>
<td width="94" valign="top">
+0.1% pts
</td>
<td width="85" valign="top">
-1.5% pts
</td>
</tr>
<tr>
<td width="168" valign="top">
Median Weekly Rent
</td>
<td width="85" valign="top">
$430
</td>
<td width="85" valign="top">
$420
</td>
<td width="94" valign="top">
2.4%
</td>
<td width="85" valign="top">
+13.2%.
</td>
</tr>
</tbody></table>
 
In the Perth rental market the vacancy rate is below average at 1.9%. The median rent has grown by a $10 to $430 per week, an increase of just over 13% from 12 months ago.
The median rent is $440 per week for houses and $410 per week for units and apartments.
Median land prices are up $5,000 for the quarter to $250,000.
“Our preliminary data is showing a 25% lift in land sales, suggesting that prospective home builders are getting ready for their new home,” Airey says.
“Suburbs such as Baldivis, Butler and Byford on the outer edges of the metropolitan area saw the greatest number of land sales in the year to June quarter.”
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Falling residential stock on market could push up dwelling prices in Western Australia: REIWA

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A dilapidated wooden shack in Albert Park in Melbourne listed for sale with price hopes of around $600,000 was passed in on one $500,000 vendor bid at its weekend auction.
<a href="https://www.realestateview.com.au/Real-Estate/26-withers-street-albert-park/Property-Details-buy-residential-4225085" target="_blank">The weatherworn home </a>comes with planning approval for a three-storey, four-bedroom overhaul incorporating the existing facade.
<img src="/images/stories/2012/08/shackalbert.jpg">
The property has heritage requirements, which have been incorporated into development plans.
The corner block last traded for $578,000 in 2010, when listed with $470,000 to $520,000 price expectations.
The current listing agent Peter Zervas from Greg Hocking Holdsworth told Property Observer prior to the weekend auction that he envisaged the planning approval and plans would have added value to the project.
Zervas says builders have quoted $300,000 to $400,000 to realise the plans for the corner block.
He says they had had interest from builders and developers as well as individuals looking to occupy.
The plans for the new building were designed by architect firm Oof and were approved in 2011.
Zervas says the vendor has other projects on the go and has decided to let this one go.
Meanwhile another shack in Glen Iris is up for sale at <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/49-osborne-avenue-glen-iris/Property-Details-buy-residential-4169095">49 Osborne Avenue</a>. It’s been in the same family for more than 100 years.
The Victorian timber cottage sits on 1,008 square metres.
Agent Rae Tomlinson from Marshall White Armadale is selling the property and is looking for offers around $1.5 million.
“There’s no heritage considerations with it,” says Tomlinson.
“If it were restored it would be absolutely stunning, but it would be challenging.”
Tomlinson says she’s had interest from developers and people looking to build a home.
<a href="https://www.realestate.com.au/property-house-vic-richmond-110894687" target="_blank">And a shack on Burnley Street, Richmond</a> (pictured below) on 776 square metres recently sold for $1,621,000.
<img src="/images/stories/2012/08/shack2.jpg">
The house is a uninhabitable three-bedroom shack that is being sold in a deceased estate.
The executor of the will is the former owner’s son in his 60s, who grew up in the house.
Agent Allan Cove from Biggin &amp; Scott Richmond says the property is probably at least 120 years old.
He says despite its condition it has a heritage overlay, which made thing difficult.
“There’s a huge question mark on that. Developers were doing their own enquiries as to whether it could be demolished and the council said anything was possible, but permission had to be sought.”
“The owners prepared a condition report which says it’s uninhabitable. I’ve had developers and builders look at the house and they said it would cost more to renovate than to demolish and rebuild.”
The property was bought by a property developer, who is deciding what to do with the property.
“He’s not too sure at this point. The vast majority of the site was vacant land. He’s weighing up his options, even considering going down the track of retaining the house and possibly creating something on Canterbury Street.”
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Wooden shacks are for brave buyers as Albert Park offering attracts no bids

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Melbourne CBD studio apartments start at just $145,000. Property Observer inspects postcode 3000 to find the 10 cheapest studios available in Melbourne.

The list comes<a href="https://www.propertyobserver.com.au/new-south-wales/sydney-cbd-s-10-cheapest-studio-apartments-starting-from-%24255000/2012073155743" target="_blank"> in stark contrast to the cheapest studios in Sydney</a> – it seems if you want to invest a CBD studio apartment, Melbourne is the cheaper option by a long way.

Prices in the top 10 range from $159,000 to $200,000. They're often aimed at overseas students looking to rent in Melbourne and can be as small as 19 square metres. That's smaller than an average billboard.

Buyers and investors should take note, though, it may be hard to secure a fully funded loan when buying at the cheapest end of the market.

Apartments under 50 square metres typically require deposits of 20%, compared with the standard 10%. Some buying situations may need upwards of 30%.

[smartcode_project:default project_id=95292]

And the same applies to studios off the plan. So if buyers and investors can secure a loan then this is the list to see.

So many of the cheapest apartments come from the same Flinders Street building that we have restricted the number of apartments from number 256-268 Flinders Street, or the list would be almost entirely populated by the same apartment block.

1

<a href="https://www.realestate.com.au/property-studio-vic-melbourne-108372381" target="_blank">16/546 Flinders Street</a> 

$145,000

Around the corner from Spencer Street, this apartment rents for $250-$280 a week. Barry Plant agent Niels Geraerts says he’s sold about six apartments in the building over the past few years. He says the lack of common spaces and having just one elevator keeps the body corporate costs down. Total outgoings for the property would come to about $1,500 a year for the approximately 17-square-metre unit. It sold to an investor in the last couple of weeks.

2

<a href="https://www.realestate.com.au/property-studio-vic-melbourne-105215032" target="_blank">210/600 Little Bourke Street</a>

$148,000

Unit 210 at 600 Little Bourke Street is a serviced apartment currently run by Hotel Ibis, which has the contract until 2018. The 25-square-metre apartment has a modest guaranteed income of $650 a month, and agent Lilian Yoon from OzAsia Real Estate is unsure of the outgoings for the property, although she says they would be minimal. The unit, which has no cooking facilities, has been on the market for years.

3

<a href="https://www.realestate.com.au/property-studio-vic-melbourne-110904915" target="_blank">52/546 Flinders Street</a>

$159,000

This apartment currently leases for $ 975 per month. The room is currently dominated by a double bed, which takes up most of the standing room. Agent Louis Christou from Christou and Co was unable to offer much information on the property, but said it was probably overpriced given the flooded market. He is also selling an apartment in Franklin Street priced at $199,000. He says the owners would be lucky to get $150,000 to $160,000.

4

<a href="https://www.realestate.com.au/property-apartment-vic-melbourne-110535041" target="_blank">1116B/256-268 Flinders Street</a>

$159,000

An 11th-floor studio apartment opposite Flinders Street station, this place rents for about $300 a week. It’s managed by property management company Baycrown and has approximate outgoings of $2,500 a year. The 19.5-square-metre apartment comes with a kitchenette.

5

<a href="https://www.realestate.com.au/property-studio-vic-melbourne-107466418" target="_blank">110B/256-269 Flinders Street</a> 

$162,000

In the same building is apartment 110b is currently leasing for $300 a week. The 19-square-metre apartment has the same outgoings at $2500 a year, and the apartment is fully furnished. Agent Nathan Collyer from Rendina Real Estate Kensington says tenant demand is very high in the building, particularly from students.

6

<a href="https://www.realestate.com.au/property-studio-vic-melbourne-110840411" target="_blank">417B/268 Flinders Street</a>

$165,000

This apartment in the same building again is renting for $310 a week. It’s 15 square metres and has outgoings of more than $4000 a year. It includes a kitchenette and a bathroom, and there’s room to walk.

7

<a href="https://www.realestate.com.au/property-studio-vic-melbourne-111049731" target="_blank">125/256-268 Flinders Street</a>

$165,000

In 256-268 Flinders Street again, this 30-square-metre unit earns $230 a week. Tenants are restricted to students, so that limits investors somewhat. Barry Plant agent Niels Geraerts says outgoings come to about $2000 a year.

8

<a href="https://www.realestate.com.au/property-studio-vic-melbourne-110179229" target="_blank">706/500 Flinders Street</a>

$169,950

This 25-square-metre apartment is listed for $169,950 and has been on the market for six months. Agent Craig McIntosh says the apartment could rent for $285 per week and has outgoings of around $2,000 a year. He says he’s sick of the studio apartment and is trying to get out of it. He says most studio stock on the market is overpriced and unsaleable at that price.

There are more plenty more apartments available in 256-268 Flinders, but in an effort to mix this list up we will skip any more listings from that building.

9

<a href="https://www.realestate.com.au/property-apartment-vic-melbourne-110505697" target="_blank">817/238 Flinders Street</a>

$182,000

This apartment is managed by Unilodge, but there are no restrictions on tenants. Agent Stephen Shen from Royaland Real Estate says total outgoings for the apartment would be $2,600 a year. It’s currently tenanted and renting for $323 a year.

10

<a href="https://www.realestate.com.au/property-unit-vic-melbourne-107161420" target="_blank">506/118 Franklin Street</a>

$190-$200,000

This property, currently run by the Stargate hotel rents for $13,032 per year. It’s about 15 square metres and can be owner-occupied. Total outgoings for the property are about $2,500 a year, says Ace Real Estate agent, Haresh Mutreja. It’s on the fifth floor, comes with a bathroom and a kitchenette but with no stove.

For information on <a href="http://propertyobserver.com.au/ebooks/free-ebook-investing-outside-the-square" target="_blank">out-of-the-box property investments, download our free eBook.</a>
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Top 10 cheapest studio apartments in the Melbourne CBD, starting from $145,000

Low yields for Bondi Beach house investors in RP Data top 50 most active rental suburbs list

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Lend Lease is offering a 10% interest rate on purchase deposits for August buyers at its Studio 9 development in Richmond.
The rate is almost twice the best cash rate on offer by banks.
<img src="/images/stories/2012/06/studio91.jpg">
The current apartment offerings are priced from  about $455,000 to $1.85 million with the stage one apartments due for completion by late 2013 to early 2014.
A buyer who signs a contract to buy a $455,000 one-bedroom apartment with a $45,500 deposit would by the start of 2014 have earned approximately $6,800 while the deposit was accruing interest.
A two-bedroom, one-bathroom apartment at $655,000 with a $65,500 deposit will earn the buyer approximately $9,800 in interest.
A two-bedroom, two-bathroom apartment at $735,000 with a deposit of $73,500 would earn approximately $11,000 in interest.
Previously at Studio 9, buyers were offered interest rates on their deposits in line with cash rates offered by banks.
Typically interest from deposits would go to the developer. A Lend Lease spokesperson says the move does happen occasionally. 
"From time to time, we offer the interest on the deposit at whatever the normal bank rates are that are received in our solicitors trust account."
The current deal ends on August 30, with no caps on buyer numbers.
The Studio 9 development is being built on the former Channel 9 studios on Bendigo Street in Richmond.
The project consists of four stages of townhouses and apartments.
<img src="/images/stories/2012/06/studio93.jpg">
<a target="_blank" href="https://www.studioninerichmond.com.au/">The master-planned community</a> will pay homage to its iconic industrial and broadcast past. The site is a former piano factory, then Heinz canning factory, then broadcast studio.
Lend Lease says once contracts are unconditionally exchanged the purchaser is unable to withdraw from the contract for sale.
REIV’s Robert Larocca says many off-the-plan buyers don't expect any interest on their deposit.
“I think it’s an innovative reaction. It’s something that will help encourage a few more buyers that are sitting on the edge.”
“Off-the-plan buyers generally wouldn’t expect interest, it’s not standard.
"One of the issues for purchasers buying off the plan is they're worried about how long it it will take. They usually won’t earn any interest on their deposit . This marketing would be dealing with that concern."
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Studio 9 Richmond offering buyers a 10% annual return on deposits while awaiting construction

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With the 2012 Olympic descending on London, Property Observer looks back on what happens after the athletes and crowds left town after the 2000 Sydney closing ceremony.

For the 2000 Olympic Games, Sydney built one of the biggest athlete villages ever constructed at the time.

In 1997, the Sydney Olympic Park Authority signed a $590 million contract with the Mirvac Lend Lease Village Consortium comprising of Mirvac, Lend Lease, Civil &amp; Civic, ANZ and Westpac. The village was part of $3 billion of construction and capital works for the games.

[smartcode_project:default project_id=7317]

The contract was to plan, design, finance and construct the Olympic village, which would provide housing for 15,300 competitors and team officials as well as accommodation for 7,500 competitors and officials for the Paralympic Games.

The consortium would also carry out the reinstatement work on the Olympic village after the Paralympics; market and sell the reconfigured Olympic village properties; and share the net proceeds between the consortium and government.

As well as the multiple sporting venues, other projects included the Olympic Park railway station and rail loop, development at the former Lidcombe Hospital site for 6,000 media representatives and a 318-room Ibis/Novotel hotel.

The athlete village was built in Newington, two kilometres east of the Homebush Bay sporting complex. The sporting complex is now the suburb called Sydney Olympic Park.

The consortium built nearly 900 townhouses and 700 apartments over 90 hectares, as well as nearly 300 modular homes.

Environmental sustainability was heavily pushed by the Olympic committee, and every home came with solar panels and water recycling facilities, features that still exist. When it was built, the suburb was the largest solar-powered suburb in the world.

Waste water is treated and redirected to the neighbouring wetland which was restored as part of the project.

After the Paralympic Games Newington was sold into private ownership and its transformation into a residential suburb began.

More houses were built and according to the 2011 census, there are now 2,074 dwellings housing 5,320 people. The census found 6% of the homes are currently unoccupied. There are 940 houses and 815 units in the suburb. Three- and two-bedroom homes dominate the mix.  Despite a strong push by the Olympic organisers to discourage car ownership in the area, just 3% of homes are without a car while 55% of homes have two or more cars.

According to RP Data <a href="/news">the current median house price</a> in the suburb is $770,000 up 2% over the last year and 20.7% over the last five years. Units have a median price of $487,000, down 3.6% over the year but up 19.2% over the last five years. The annual rise in median price over the last 10 years is 4.8%.

One recent sale in the area was 20 Lewis Way, a three-bedroom, three-bathroom house. The Olympic Co-Ordination Authority sold the property for $430,000 in 2001 and it most recently traded for $760,000 in May. In December 2011 the home was advertised for rent at $650 per week.

29 Evans Street (pictured below) recently sold for $732,000 from Ajay Valanju at Location Property Group. It originally traded for $503,000 in 2002.

<img src="/images/stories/2012/08/evans.jpg">

A two-bedroom, two-bathroom unit, 7/3 Heidelberg Avenue originally traded for $345,00 in 2001 sold for $513,000 in May 2012.

Unit 23 at 19 Pearce Avenue, a two-bedroom unit, recently sold for $430,00 after originally selling for $350,000 in 2001.

Mirvac’s NSW development director for master-planned communities says the suburb turned out better than they ever imagined.

“The amazing thing is that it's one of the few Olympic Games villages in the world that's been successful post-Olympics,” he told Fairfax.

''The project involved risk, but I think the quality of the build, the town planning, the parks and green space, and the mix of homes all contributed to its success.”

Local agent Chuck Ow Lee of Newington Village Real Estate told Fairfax the area is in strong demand.

''Homes here are very tightly held,'' he says. ''People are constantly surprised and impressed by the infrastructure and facilities and being surrounded by parks, and prices are cheaper than nearby.”

One home up for sale is <a href="https://www.realestateview.com.au/Real-Estate/18-beaurepaire-ave-newington/Property-Details-buy-residential-4040137" target="_blank">18 Beaurepaire Avenue</a>, which is being sold by Norman So and Andrew Zhang from Strathfield Partners for $760,000.

 

<hr class="system-pagebreak">
 

Mirvac Design worked with a number of architectural practices to produce a variety of dwelling types with work from<cite> </cite>Eeles Trelease, Vote Associates, Tanner and Associates, Gordon and Valich, Virginia Kerridge Architects, Grose Bradley Associates, Order Architects, Tonkin Zulhaika, PTW, and Hassell.

<img src="/images/stories/at213.jpg">

Meanwhile, in the neighbouring Sydney Olympic Park, within the remaining sporting hub, the newest residential development, called <a href="https://www.propertyobserver.com.au/developments/olympic-park-australia-towers-launches-stage-two-after-stage-one-sells-fast-out-of-the-starting-blocks/2012040354146" target="_blank">Australia Towers</a>, is being built by Ecove. It will bring more than 800 apartments to the area. The first tower in the three-tower development (pictured below) is currently home to more 600 residents.

<img src="/images/stories/at27.jpg">

The are is expected to experience boom growth with 1.4 million square metres of new construction planned and it is expected by 2030 some 14,000 people will live in the area. The area is currently made up of parkland, sporting facilities, offices, restuarants and retail precincts.

The success of Sydney’s Olympic athlete village comes in stark contrast to cities like Vancouver.

In 2011, a year after the winter Games, fewer than half of the 737 condos had been sold, almost of those as preconstruction sales in 2007. Vancouver’s taxpayers owed about CAN$750 million for the project, which was never intended to be a public sector development. To sell the apartments, the city then slashed prices by 30%.

Other failures include the 2004 Athens Olympic athlete village, which was the largest single property development at the time. Hundreds of thousands of Greek families entered a lottery for the chance to buy in the complex but by 2011, just half of the apartments were filled. Commercial developments in the area shut down, schools were turning away students and the buildings now have damp and sewage problems. Many Athenians saw the Games as a major contributor to Greece’s current financial woes; some estimates say the Games cost Greece €27 billion, five times the €5.5 billion budget.

Lend Lease has developed the 3,300-apartment complex for the 2012 London Olympic Games. After the games the site is due to converted into a neighbourhood with 2,818 homes, including 1,000 family homes with three or four bedrooms. The site was sold to  Qatari ruling family's property company, Qatari Diar, for £557 million.

The committee had already sold 1,379 of the homes in the 11 blocks to Triathlon Homes for £268 million in 2009. Those are due to be converted into affordable homes.
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Sydney's Newington Olympic village 12 years after the closing ceremony

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The Queensland location Gladstone, 100 kilometres south of Rockhampton, is a much-touted mining boom hotspot.
But how much do interstate investors really know about the area?
Gladstone is a mining boom town with a vast number of liquefied natural gas (LNG) and coal projects in development.
Santos and Petronas are developing the multi-billion dollar Gladstone Liquefied Natural Gas project, which will process coal seam gas into liquefied natural gas. The project is anticipated to provide 6,000 jobs during construction.
Australia Pacific LNG is a joint venture between Origin and ConocoPhillips to build an LNG plant at Laird Point on Curtis Island. The project will create an average of 10,300 jobs for each year over the 10-year construction period, reaching a peak of 18,600 direct and indirect jobs.
There’s Gladstone LNG, a plant at Fisherman’s Landing in the Port of Gladstone, capable of producing 3 million tonnes of gas per year. It will hire 150 people during construction and have 36 permanent employees.
Queensland Curtis LNG is developing a liquefaction plant on Curtis Island, just off Gladstone, with an capacity of 7.4 million tonnes per year. Construction of the project will provide 3,00 to -4,000 jobs and 800 permanent positions.
And there are plenty of other project mooted and in the works. Property investment experts are spruiking the area as a property hotspot due to the volume of mining activity. 
The Real Estate Institute of Queensland predicts the population of Gladstone will double by 2031.
ANZ’s Australian Housing Chartbook found property prices in Gladstone increased nearly 16% for the year ending March 2012, outperforming all other areas in the state. In April, Queensland Valuer-General Neil Bray found land values in the area had increased 19% over the year.
In Property Observer’s recent analysis of hotspots touted in 2011, <a href="https://www.propertyobserver.com.au/hotspots/the-21-hotspots-that-weren-t/2012072955568" target="_blank">we found Gladstone was one of the only celebrated areas to have lived up to expectations. </a>
However, <a href="https://www.propertyobserver.com.au/queensland/gladstone-property-hotspot-facing-headwinds-with-investor-demand-grossly-outstripping-owner-occupier-demand-prdnationwide/2012080655882" target="_blank">the most report on Gladstone from PRDnationwide</a> notes there are a number of headwinds facing investors in the area.
PRDnationwide predicts property and land prices will begin to ease egin to ease once new and more affordable housing projects are completed, such as Devine's $1.4 billion Riverstone Rise community, which is being completed in stages over the next 15 to 20 years.
The project is in Benaraby, approximately 20 kilometres south of Gladstone City, and is being built with the aim of providing an affordable and diverse alternative to the offerings within Gladstone City.
The PRDnationwide report says that high rental yields can still be achieved in the current market, but warns investors to be diligent to not only buy at the right price, but to buy something that has competitive tenant appeal.
“Vacancy rates have been quiet turbulent during the first half of 2012, as investor demand grossly outstrips owner occupier demand,” says the report.
“Uncertainty surrounding rental vacancy is exacerbated by an ever expanding fly-in, fly-out workforce, with many workers vacating to mining/construction campsites.
“As a result, many investors are forced to make sizeable revisions to their rental price expectations in order to secure a tenant on a reasonable lease. Given the current median prices recorded across all markets, there is no doubt that some investors, particularly those who entered the market in 2012, paid a premium on their investment with a heightened expectation of strong cashflow.”
In Gladstone, the residential area is made up of nine suburbs: Clinton, Glen Eden, Kin Kora, New Auckland, South Gladstone, Sun Valley, Telina, Toolooa and West Gladstone.
<table border="1" cellspacing="0" cellpadding="0" width="417"><tbody>
<tr>
<td width="106" valign="top">
Suburb
</td>
<td width="91" valign="top">
Population 2006
</td>
<td width="94" valign="top">
Popualtion 2011
</td>
<td width="63" valign="top">
% price change  over last  year units
</td>
<td width="63" valign="top">
% price change over last year houses
</td>
</tr>
<tr>
<td valign="top">
Clinton
</td>
<td valign="top">
5734
</td>
<td valign="top">
5917
</td>
<td width="63" valign="top">
-2.8
</td>
<td width="63" valign="top">
20.5
</td>
</tr>
<tr>
<td valign="top">
Glen Eden
</td>
<td valign="top">
965
</td>
<td valign="top">
1969
</td>
<td width="63" valign="top">
NA
</td>
<td width="63" valign="top">
5.9
</td>
</tr>
<tr>
<td valign="top">
Kin Kora
</td>
<td valign="top">
2606
</td>
<td valign="top">
2686
</td>
<td width="63" valign="top">
NA
</td>
<td width="63" valign="top">
16.9
</td>
</tr>
<tr>
<td valign="top">
New Auckland
</td>
<td valign="top">
4027
</td>
<td valign="top">
4711
</td>
<td width="63" valign="top">
-55.1
</td>
<td width="63" valign="top">
19.5
</td>
</tr>
<tr>
<td valign="top">
South Gladstone
</td>
<td valign="top">
3120
</td>
<td valign="top">
3626
</td>
<td width="63" valign="top">
19.2
</td>
<td width="63" valign="top">
23.9
</td>
</tr>
<tr>
<td valign="top">
Sun Valley
</td>
<td valign="top">
1231
</td>
<td valign="top">
1469
</td>
<td width="63" valign="top">
NA
</td>
<td width="63" valign="top">
NA
</td>
</tr>
<tr>
<td valign="top">
Telina
</td>
<td valign="top">
2087
</td>
<td valign="top">
2179
</td>
<td width="63" valign="top">
NA
</td>
<td width="63" valign="top">
8.3
</td>
</tr>
<tr>
<td valign="top">
Toolooa
</td>
<td valign="top">
1148
</td>
<td valign="top">
1164
</td>
<td width="63" valign="top">
NA
</td>
<td width="63" valign="top">
16.1
</td>
</tr>
<tr>
<td valign="top">
West Gladstone
</td>
<td valign="top">
5302
</td>
<td valign="top">
5201
</td>
<td width="63" valign="top">
-1.1
</td>
<td width="63" valign="top">
14.1
</td>
</tr>
<tr>
<td valign="top">
Median
</td>
<td valign="top"></td>
<td valign="top"></td>
<td width="63" valign="top">
-1.95
</td>
<td width="63" valign="top">
16.5
</td>
</tr>
</tbody></table>
 Source: ABS, RP Data
RP Data has no information on the whole area, but an analysis by Property Observer of all its suburbs indicated median house prices increased 16.5% while units dropped 1.95% over the year.
According to RP Data figures, South Gladstone was the strongest-performing suburb in the city. The unit median price went up 19.2% over the last year while the house median went up 23.9%.
For more, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-property-investing-in-queenslands-resources-boom" target="_blank">Residential Property Investment Amid Queensland's Resources Boom.</a>
<hr class="system-pagebreak">
The boom growth started in 1996 with the establishment of the Queensland alumina plant in the area, the impact of which is still seen in South Gladstone. LJ Hooker agent Mark Spearing told Property Observer the suburb contains a lot of older Gladstone properties.
“There’s a big difference between a new unit close to the CBD and a 20-year-old unit on the outskirts of Gladstone,” he told Property Observer.
“New units are getting exceptional rents of $650 to 850 a week, while some of the older ones are getting just $350 to $450 a week, especially where there’s been no reinvestment into the properties.”
Spearing says there are also significant townhouse developments in areas 10 minutes from town.
“In Glen Eden, there are two upmarket townhouse developments being built. One of them will be 38 townhouses, and there’s another doing 45.
“Those are very sought after, underpinned by the investment market. They’ll earn about 800 a week.”
He says families also tend to buy in in newer suburbs like Emmerdale Gardens.
“It’s a good development, there’s good parklands, with good properties that have been well managed over a period of time. There’s new shopping centres opening, with new access roads, in a great spot,” he says.
Alicia Williams from RE/MAX Gold says Telina is another popular option for families. It’s a well-established leafy suburb that has been attracting families. Telina is wedged between the two shopping precincts of Kirkwood and Kin Kora.
However she believes the market have topped out.
“Pricing peaked around November last year and since then the market has topped out, experienced a slight pull back and is now steady,” she says.
“However, I still have a positive long-term view for Gladstone and believe we will see our next growth stage pending commencement of construction on each of the LNG plants at Curtis Island as well as other projects like Wiggins Island. 
“It is not only big industry which is a draw card for Gladstone but also the ancillary businesses and service which will come to our region in order to service our growing population.”
Spearing says the market can stop and start as one projects ends and another starts.
“Certainly prices are in a holding pattern as we speak, there’s no question over that. Because of the relatively small size of the market and the relatively extremely large workforce movement, when different stages of major development are completed waves of workers depart then a new wave arrives,” he says.
“There’s a ripple effect as that movement occurs. The rental market changes on an almost month to month basis.
“Each phase has a different requirement but we’re definitely early in the cycle”.
He says about 60% of sales in the last year have been by investors hoping to cash in on the boom.
Gladstone locals are missing out on a lot of business as workers fly-in fly-out but workers are starting to take occupancy.
“One thing I know is, where’s there’s jobs there’s usually a strong property market. And there’s a lot of jobs in Gladstone.”
But while the mining has bought strong property price growth and city development, the developments have raised the ire of environmental groups.
One of the major concerns comes with the pollution of water supplies. The development of the Gladstone harbour included a massive dredging program to make way for large LNG vessels. The area falls within the Great Barrier Reef World Heritage Area and is just one kilometre away from Great Barrier Reef Marine Park boundary.
The dispersal of spoil from the dredging dumping ground into the park is a major concern.
The dredging also stirs up silt which affects the ability of fish to extract oxygen from the water, and then settles n sea grasses and wetlands. This reduces fish stock and is a major concern for local fishermen.
Reports suggest that the five major Gladstone projects will emit 39 million tonnes of carbon dioxide equivalent per year, starting 2014. This is more than 10% of Australia’s 2020 emission targets and 19% of the 2050 target.
There are also major concerns with the effects of coal seam gas extraction, a problem widely in NSW farmlands. Some concerns include the effect of drawing excessive water from the artesian basin; the chance of polluting groundwater; and the risks of watershed damage associated with disposal of highly saline groundwater.
UNESCO is currently deciding whether to deem the area a heritage site in danger.
The team met with representatives from the seafood industry, who spoke of a sickness afflicting local fish, turtles and sea mammals involving skin lesions and cloudy eyes.
For more, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-property-investing-in-queenslands-resources-boom" target="_blank">Residential Property Investment Amid Queensland's Resources Boom.</a>
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Gladstone's mining is booming, but property market far from unified in Queensland hotspot

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The 10 million tourists expected to visit London for the 2012 Olympic Games will get to see the city’s latest super-high-rise development, The Shard. That’s because it’s 309.6 metres tall and is the tallest building in Europe. From the top it’s sometimes possible to see the English Channel, 80 kilometres away.
The 95-storey building topped out at the end of March and officially opened on July 5 with a massive laser show.
There are 44 lifts in the pyramid-shaped tower, including some double-decker lifts to carry the maximum number of tourists.
Though if tourists do want to try the lifts out, a family of four will have to shell out a cool £87 to reach the observation deck, 244 metres above the ground.
<img src="/images/stories/2012/08/shard2.jpg">
The tower was first envisioned by British developer Irvine Sellar and architect Renzo Piano, most famous for the Pompidou Gallery in Paris.
The project was then taken up by Sellar, the family trusts of Simon Halabi, a Syrian-born investor, and CLS, a British property business. The global financial crisis put the project in jeopardy but in 2008, a Qatari consortium bought Halabi and CLS out of the project and secured funding to ensure the future of the project.
The Qatari consortium included Qatar National Bank, QInvest, Qatari Islamic Bank and the Qatari developer Barwa Real Estate.
The consortium currently owns 95% of the project.
The construction was originally opposed by English Heritage but in 2003 then deputy prime minister John Prescott approved the project following a public inquiry.
<img src="/images/stories/2012/08/shardlondon.jpg">
It is reportedly the biggest mixed-use building in London, and the cladding is made of 11,000 panels angled to reflect the sky and change the appearance of the building with the weather.
It was built on the site of the Southwark Tower, a 24-storey office block tenanted by PricewaterhouseCoopers.
Sellar told Bloomberg he expects the building to be worth £2.5 billion once it’s fully leased, though to date it has only secured one tenant – Shangri-La will run the hotel on site.
The building will also have 53,350 square meters of office space, 10 luxury apartments and shops.
There will also be three floors of Michelin-star restaurants.
Sellar says no decision has been made on whether to lease or sell the apartments.
He said the total cost of the project was £1.5 billion.
The building won’t be open to the public until 2013.
London skyline photographs courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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London's visitors can't miss The Shard, new skyscraper of Olympic proportions 

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.

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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.

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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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