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The Australian construction industry continued to decline in November but at a more moderated pace, according the latest report by the Australian Industry Group and the Housing Industry Association.
The performance of construction index increased 4.9 points to 39.6 in November, still short of the 50-point level that distinguishes contraction from growth.
The increase represents a reduction in the rate of decline of both house building and engineering construction but commercial construction and apartment building activity declined at a steeper rate.
"The construction sector remains very uneven with the residential and commercial construction sub-sectors considerably weaker relative to the resources-project linked engineering construction sub-sector,” says Australian Industry Group director of public policy Peter Burn.
“Commercial construction continues to contract and businesses completing projects related to the fiscal stimulus package are not finding sufficient private sector work to keep fully occupied.  While still far from satisfactory, the sector overall appears to be pulling back from the accelerating pace of decline reached in August and September," Burn says.
There were reports of an improvement in workflows from resource-based projects and a rise in customer enquiries in the house building sector linked to the positive influence of the recent interest rate reduction, the report found.
New orders again declined across the industry, although the rate of contraction was the slowest in six months. Consistent with this, falls in activity, supplier deliveries and employment all moderated, the report found.
Senior economist at Housing Industry Association Andrew Harvey used the report to call for further stimulus of the construction industry.
"[The report] again highlights the current fragile state of residential building with activity continuing to contract and looking a long way from an eventual return to growth,” Harvey says.
“There’s no hiding from the fact that house building activity has contracted for 18 straight months and apartment building activity has now contracted for 19 straight months.
“When you consider this long-lived decline in residential building activity alongside recent dismal building approvals it is clear that the federal government needs to urgently turn its attention to stimulating new home building in this country.”
 
 
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awalsh-7Ub9EypybQ

Construction industry decline slowing: AIG

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<table width="255" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="69">
postcode
</td>
<td valign="bottom" nowrap width="89">
suburb
</td>
<td valign="bottom" nowrap width="97">
Median unit price
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2912
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">GUNGAHLIN</a>
</td>
<td valign="bottom" nowrap width="97">
$325,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2913
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">FRANKLIN</a>
</td>
<td valign="bottom" nowrap width="97">
$325,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2606
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">LYONS</a>
</td>
<td valign="bottom" nowrap width="97">
$326,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2606
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">CHIFLEY</a>
</td>
<td valign="bottom" nowrap width="97">
$342,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">HOLT</a>
</td>
<td valign="bottom" nowrap width="97">
$355,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2605
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">CURTIN</a>
</td>
<td valign="bottom" nowrap width="97">
$358,885
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2607
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">FARRER</a>
</td>
<td valign="bottom" nowrap width="97">
$360,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2905
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">THEODORE</a>
</td>
<td valign="bottom" nowrap width="97">
$365,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">DUNLOP</a>
</td>
<td valign="bottom" nowrap width="97">
$366,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="69">
2615
</td>
<td valign="bottom" nowrap width="89">
<a target="_blank" href="/news">LATHAM</a>
</td>
<td valign="bottom" nowrap width="97">
$370,000
</td>
</tr>
</tbody></table>
Source: RP Data
 
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The top 10 suburbs in the ACT with the cheapest unit prices: RP Data

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{yoogallery src=[images/stories/december7gunter]}
The former New York home of German playboy and billionaire Gunter Sachs is on the market for US$38.5 million.
The Paul Rudolph-designed home was built in 1966 and has been occupied by designer Roy Halston Frowick, head of Fiat Gianni Agnelli and Gunter Sachs.
Sachs, who committed suicide in a Swiss chalet earlier this year, bought the 930-square-metre home with Agnelli in 1990 and later bought Agnelli out.
The East 63rd Street home has four bedrooms and four bathrooms spread over four levels. It is listed by <a href="https://www.corcoran.com/property/listing.aspx?Region=NYC&amp;listingid=2259675" target="_blank">Corcoran </a>agents Noble Black, Carmen Marques Perez and Bonnie Pfeifer Evans.
Behind the imposing facade of steel and glass is a slate entry hall that leads into the vast expanse of a living room with 9.5-metre ceilings and skylights.
During Halston’s occupancy the home was the home of parties in New York and played host to Liza Minnelli, Elizabeth Taylor, Andy Warhol, Truman Capote and Bianca Jagger.
The townhouse has three living rooms, one dining room, a study, two kitchens, a terrace and a solarium.
The architect described the home as being “a world of its own, inward looking and secretive … created in a relatively small volume of space in the middle of New York City.”
“Varying intensities of light are juxtaposed and related to structures within structures. Simple materials (plaster, paint) are used, but the feeling is of great luxuriousness because of the space. The one exposed façade reveals the interior arrangement of volumes by offsetting each floor and room in plan and section.”
A nearby house on East 75th Street sold for US$36,500,000 in August this year.
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Playboy Gunter Sachs' former New York home on the market

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Victoria is leading a national increase in medium-density approvals, home to two-thirds of medium-density home approvals across Australia over the past year, according to the latest report by Bankwest.
Over the last year 38% of national home approvals were for medium-density dwellings, up from 31% five years ago.
Victoria has the most, with 21,235 approvals, 36% of the national total of 59,276. This is closely followed by NSW at 16,397, which represents 28%, and Queensland at 10,300, which represents 17%.
“Melbourne might be considered the café capital and this is helping to fuel demand for city living. says Bankwest retail chief executive Vittoria Shortt.
“Factoring in affordability, a tight rental market and lifestyle choices it is not surprising to see a trend towards higher density living.”
The Australian Capital Territory has the highest percentage of approvals, with 66% of all approvals being medium density, followed by the Northern Territory at 57% and New South Wales at 49%.
ACT also grew the most over the five years, with a 23 percentage point increase over the five years.
Perth was the only state capital where the share of medium-density approvals didn’t increase. Shortt puts this down to rising incomes and land availability combined with an outdoors lifestyle.
“With gen Ys entering the market looking at the inner city as a preferred location, coupled with baby boomers that are starting to downsize, this trend towards medium density looks set to continue,” says Shortt.
The trend is predominantly taking place in capital cities with 77% of medium density approvals taking place in the city. <img src="/images/stories/tugg.gif">
Source: Bankwest 
ACT’s Tuggeranong took the guernsey for the biggest turnaround. In the 2006 census just 12% of dwellings were medium density but in the last five that has increased to 74%.
Five out of 10 suburbs with the most densification were in the ACT.
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Victoria leading surge in medium-density housing: Bankwest

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Auckland property prices rose sharply in November, according to Barfoot and Thompson sales figures, in their largest monthly growth since March and the second largest monthly growth the agency has recorded.
The average sale price increased $13,724 or 2.5%  from October’s values, reaching $567,489, according to the agency. This is up from $553,743 at the same time last year.
The March increase was $59,303.
The agency had 894 sales in November, up 23% from October and up one third from November last year.
"For the past four months the Auckland market has been ticking over quietly, but with the coming of summer, the end of the international rugby tournament and a degree of certainty as to the outcome of the general election, buyers and sellers felt the time was right to act," says Peter Thompson, managing director of Barfoot and Thompson.
High-value properties did particularly well, according to Thompson.
"The top end of the market was once again extremely active and in November we sold 75 homes for $1 million or more," he says.
Thompson says the prices are close to their 2007 peak values and the growth looks likely to continue with December listings.
"Given the number of properties we have listed for auction in December and new listings in the pipeline, we anticipate that the strong sales pattern of November will continue right up to the Christmas break.”
“We’re experiencing a December with three full weeks of real estate selling, whereas traditionally it stops at the end of the second week, we’re doing auctions right up to the 21st and 22nd. We are expecting to see figures for December substantially more than previously,” he told The National Business Review.
West Auckland did well, with the number of listings increasing almost 80% from November 2010 numbers.
The agency’s November average property prices in central Auckland decreased from $307,294 in November 2010 to $236,989.
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Auckland property prices spike up in November: Barfoot and Thompson

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Median apartment rents in Canberra reached record levels during 2011, according to new research by Colliers International.
The median rent for a two-bedroom apartment hit $440, the highest rent to date for Canberra.
“This is great news for anyone who owns a rental property or is thinking about investing in any of the great medium-density developments that will be coming onto the market in 2012,” says Colliers International state chief executive Paul Powderly.
He put the increase down to the low vacancy rates of just 1.6%, the second lowest in Australia. The national average is 3%.
“Canberra is fortunate to have low unemployment, high average weekly earnings and a growing population, and these factors have contributed to the rise in rental returns.”
He says this is also affecting property prices in Canberra.
“The latest RP Data-Rismark data shows we were the only market to record an increase in home values in October, and unit values rose 8.3% during the month, compared to a 0.7% lift in house values.”
Powderly says pundits are predicting that November’s interest rate cut will lead to an even greater increase in activity in the property market next year.
From January to September 2011, 67% of dwelling approvals were for medium-density dwellings.
In November Property Observer <a href="https://www.propertyobserver.com.au/residential/canberrans-moving-in-closer-together-as-medium-density-living-on-the-rise/2011111652326">reported that units represented 44% of the Canberra real estate market.</a>
Between 2012 and 2014 potentially 2,600 new apartments will be released in the inner north and south, according to the report, but Powderly does not expect an oversupply.
“Based on the figures released this week I expect there will be strong investor and owner-occupier demand for these new properties.”
“The other safety net is that developers have to obtain high levels of pre-commitments in order to secure financing, so these projects will only go ahead if there is a demonstrated market for them.”
 
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Canberra median unit rent hits record high: Colliers

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Perth is leading growth in the Australian hotel market, which has remained strong this year despite poor performance in the Australian tourism sector, according to the latest report by Deloitte.
Hotels were buoyed by increased business travellers as the strong Australian dollar put tourists off.
The overall RevPAR (revenue per available room) is forecast to increase 6% to $94 in 2011 and to $101 in 2012.
In Sydney occupancy rates will finish at 86% despite the opening of the 171-room The Darling in Darling Harbour and the addition of 247 rooms to Meriton’s new Haymarket property.
The expected RevPAR of $163 in Sydney is up 8.7% from 2010. Room rates are expected to grow 10.5% in 2012.
Melbourne is expected to have 80% occupancy rates for 2011 with room rates projected at $181, 4% higher than 2010 rates. In 2012 Melbourne room rates will hit $195 with room occupancy expected at 81.3%, pushing RevPAR up 10%.
Brisbane has had a flurry of building activity, with Meriton marketing 150 short-stay units in its new Riverside Soleil, the Infinity building on Herschel Street expected to follow suit after opening in 2013, a 368-room project on Elizabeth Street to be announced soon, a new 216-room project on Mary Street opening as soon as 2013 and the proposed 400-room Tabcorp hotel at the State Library opening in 2015.
This means a lower occupancy rate for 2011 in Brisbane, and RevPAR is expected at 6.5% for 2011 and reaching 10.7% in 2012.
Perth occupancy rates of 84.5% are expected for 2011 with an 11% growth in room rate to $174. This makes Perth the fastest-growing hotel market in the country, with an expected year-end RevPAR improvement of almost 14% over 2010.
Perth RevPAR is expected to grow 18.6% in 2012 driven by an expected 17% growth in room rate.
“Whilst occupancies are at record levels, development of new accommodation facilities remains difficult in Perth, though recently announced government incentives may see the initiation of some much needed new hotel rooms being constructed,” the report says.
Adelaide continues to attract development despite it being Australia’s smallest hotel market, with the conversion of the CML building by Adabco Pty Ltd and a proposed Medina Grand near the Treasury building expected to open in late 2013, and the proposed airport hotel and a new hotel by the Hines Group in Grenfell Street expected for 2014.
“The proposed new airport hotel would potentially benefit from a significant uplift in travel once the Olympic Dam project gains approval [and] further additions to supply in the Adelaide CBD are likely to result in lower room occupancy levels and hold back growth in average room rates,” the report says.
Adelaide room occupancies are expected at 73% for 2011 and will continue to drop to 72% in 2012. Average room rates will increase 1.6% in 2011 to $144, growing to $148 in 2012.
Darwin 2011 room occupancies will finish at 72%, up from 70.6% last year.
“This upward trend should continue through the forecast period, with only limited supply additions in sight, being six resort rooms in the Sky City project adjacent to the casino in late 2012, and 96 rooms in the Soho project, aiming for completion in early 2013,” the report finds.
Darwin room rates will grow 6% for 2011 to $149, and a further 8% in 2012 to top $160, Deloitte expects.
There’s trouble in Surfer’s Paradise, with Gold Coast occupancy rates expected at 65.9% for 2011, dropping 2.3% from 2010. The expected year-end room rate is $133, just $1 above the 2010 result.
Gold Coast occupancy rates are expected at 66.7% for 2012 at an average rate of $136, representing a modest 3.4% RevPAR growth.
Tropical North Queensland had modest occupancy improvements, “helped by an absence of new supply and possibly also by troubled operations being forced to close their doors, resulting in a (small) net reduction of available rooms in the market,” the report says.
Occupancy will be at 57.3% for 2011 at an average rate of $117 in Far North Queensland, $2 below 2010. In 2012 occupancy rates are expected to reach 60%, although room rates are not expected to grow much until 2013.
 
 
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Perth leads strong hotel sector: Deloitte

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<table width="351" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="67">
Postcode
</td>
<td valign="bottom" nowrap width="190">
Suburb
</td>
<td valign="bottom" nowrap width="93">
Media unit price
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3825
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">NEWBOROUGH</a>
</td>
<td valign="bottom" nowrap width="93">
$68,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3825
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">MOE</a>
</td>
<td valign="bottom" nowrap width="93">
$123,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3377
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">ARARAT</a>
</td>
<td valign="bottom" nowrap width="93">
$140,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3840
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">MORWELL</a>
</td>
<td valign="bottom" nowrap width="93">
$143,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3636
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">NUMURKAH</a>
</td>
<td valign="bottom" nowrap width="93">
$149,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3629
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">MOOROOPNA</a>
</td>
<td valign="bottom" nowrap width="93">
$150,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3644
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">COBRAM</a>
</td>
<td valign="bottom" nowrap width="93">
$156,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3465
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">MARYBOROUGH</a>
</td>
<td valign="bottom" nowrap width="93">
$164,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3500
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">MILDURA</a>
</td>
<td valign="bottom" nowrap width="93">
$167,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="67">
3556
</td>
<td valign="bottom" nowrap width="190">
<a target="_blank" href="/news">CALIFORNIA GULLY</a>
</td>
<td valign="bottom" nowrap width="93">
$170,000
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
 
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Top 10 cheapest Victorian suburbs for units: RP Data

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Property developer Stockland will sell the undeveloped parts of its Melbourne Tooronga project to the Coles division of Wesfarmers, with settlement in October 2013.
The deal covers 7.7 hectares of land at stages two to five of the Tooronga apartments, which was originally planned to be a 785-apartment housing complex.
The development was expected to be worth up to $593 million in revenues in June 2010, but a poor performance in Stockland's apartments division led to a decision to exit the sector.
“This sale is another important step forward in the wind down of our Apartments business,” says Stockland Residential chief executive Mark Hunter.
Stockland will retain ownership of the Coles anchored-shopping centre on the site, which opened in August 2010. The centre was valued at $48.7 million as of June 30.
The undisclosed sale price is said to be above impaired book value.
The site was subject to impairment in the 2009 financial year and the surplus will be excluded from the group’s underlying profit.
 
 
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Stockland selling undeveloped parts of Melbourne Tooronga site to Coles

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<table width="348" cellpadding="0" cellspacing="0" border="1"></table>
<table width="348" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="136">
Suburb
</td>
<td valign="bottom" width="106">
Postcode
</td>
<td valign="bottom" nowrap width="106">
Rental median (weekly)
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">HAYMARKET</a>
</td>
<td valign="bottom" width="106">
2000
</td>
<td valign="bottom" nowrap width="106">
$695
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BIRCHGROVE</a>
</td>
<td valign="bottom" width="106">
2041
</td>
<td valign="bottom" nowrap width="106">
$650
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">PYRMONT</a>
</td>
<td valign="bottom" width="106">
2009
</td>
<td valign="bottom" nowrap width="106">
$650
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">SYDNEY</a>
</td>
<td valign="bottom" width="106">
2000
</td>
<td valign="bottom" nowrap width="106">
$640
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BALMAIN</a>
</td>
<td valign="bottom" width="106">
2041
</td>
<td valign="bottom" nowrap width="106">
$610
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">WATERLOO</a>
</td>
<td valign="bottom" width="106">
2017
</td>
<td valign="bottom" nowrap width="106">
$572.50
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">BOTANY</a>
</td>
<td valign="bottom" width="106">
2019
</td>
<td valign="bottom" nowrap width="106">
$560
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">WOOLLOOMOOLOO</a>
</td>
<td valign="bottom" width="106">
2011
</td>
<td valign="bottom" nowrap width="106">
$550
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">ERSKINEVILLE</a>
</td>
<td valign="bottom" width="106">
2043
</td>
<td valign="bottom" nowrap width="106">
$550
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="136">
<a target="_blank" href="/news">ROZELLE</a>
</td>
<td valign="bottom" width="106">
2039
</td>
<td valign="bottom" nowrap width="106">
$547.50
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
 
 
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Ten most expensive suburbs for unit rentals in Sydney: RP Data

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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