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A little while ago ago I wrote an article about cultural superstitious beliefs and how these may attract or deter would-be buyers to or from a prospective property.
However, in the year since I wrote about <a href="/expert-insights/investing/can-a-propertys-turbulent-history-affect-its-market-price-cameron-mcevoy">superstition from the buyer’s perspective</a>, I’ve observed the quiet emergence of what I consider to be a fascinating phenomenon: the actual marketing of property based on superstitious beliefs.
Though they may carry no superstitious beliefs themselves, choice of property based on superstitious factors may help or hinder the future sale of your investment within some segments of the buying market.
But first, allow me to expand on ‘superstition’ and its relationship with property buying.
People all over the world and from all kinds of background, walks of life, and religious and non-religious belief structures, develop and practice superstitious belief systems. These may relate to notions of light and dark, numerology and numbers, death and birth, and physical space belief systems such as feng shui.
So what does this have to do with property?
Well, some cultures around the world take superstition in their life a lot more seriously than others and the seriousness of this consideration can – and definitely does – extend to property purchase choices.
In western cultures such as Australia, the UK, and much of North America, superstition has an arguably minor impact on the ability to market a property. For instance, there is no evidence to indicate that properties with the number seven (lucky in western culture) and ones that have the number 13 (unlucky) sell for more and/or less than any other numbered property in that market.
However, in many Asian cultures, particularly China, Malaysia, Korea, and Singapore, numerology is serious business. The number eight, and long numbers with lots of eights in them, along with number combinations that form eight (e.g. 71, where 7 + 1 = 8), are extremely lucky. Conversely, the number four and numbers that form the number four are considered to be the unluckiest (due to the sound of the word for four, sounding very similar to the word for death).
Click <a href="https://en.wikipedia.org/wiki/Numbers_in_Chinese_culture" target="_blank" title="Numbers in Chinese culture">here</a> for a Wikipedia page that details the number-based beliefs practiced by millions of people throughout Asia.
There are other superstitious factors beyond just numerology that would-be buyers – along with your possible future tenants – may find unappealing and result in them striking your property off their hit list.
Deceased estates (most have no problem with this, yet other cultures find this a major deterrent due to the belief that recent death draws bad luck), Feng Shui and property design/composition, and even colour schemes of properties, may be enough to secure or deter prospective buyers and renters.
It should come as no surprise then that with the rise of foreign buyers in many Australian cities and suburbs emphasis on some of these factors increasingly being made. Yes, there are many buyers from Asia who are attracted to Australian property; many of them originating from China. And yes, this lucrative market is absolutely being marketed to, in a way that is specific to them.
In a similar way that ‘blue collar’ beer brands such as VB and Tooheys New are marketed towards say NRL football fans in lower-medium socio-economic areas, based on their perceived likelihood to be both an NRL fan and have an affinity for these modestly priced beer products; Asian property buyers are being marketed to, specifically in a way that will pique their attention quickly.
But not only are properties being marketed to superstitious buyers to make them more attractive, they are also being built in such a way to attract them too.
A good example is a new high-rise residential tower development in Sydney’s prestigious Eastern Suburbs. Here, the entire tower will not have any numbered floors that have the numeral ‘4’ in them. So, it is being built without a fourth, 14th, 24th, 34th, and any 40th – 49th floor numbers. This strategy clearly goes beyond just marketing to a niche buying group; but to actually creating new property catering specifically to this group – that being the superstitious foreign investor.
I was perusing some property listings on an app on my smartphone the other day, and also came across this curious entry below:
 <img class="aligncenter wp-image-678" src="https://www.propertycorrespondent.com.au/wp-content/uploads/2014/06/2014-07-03-Marketing-and-Building-Property-Based-on-Superstition-A.jpg" alt="2014-07-03 Marketing and Building Property Based on Superstition A" width="346" height="477">
See the fourth property down the list, priced at $659,888? There is no logical reason to price a property ending in ‘$888’. Instead, this pricing strategy is clearly aimed at attracting the superstitious Asian community and possibly foreign investors who access this app and are superstitiously minded.
Then there is the new mega-tower to be built in Melbourne’s CBD, Australia 108. Even though the tower will actually now only have 100 floors and not 108, the ‘108’ name will stay. In this recent <a href="https://smh.domain.com.au/real-estate-news/construction-on-southbank-megatower-to-start-2015-20140626-zsmtm" title="Construction on Southbank mega-tower to start 2015">article</a> it is mentioned that: "Architect Nonda Katsalidis said the project will be marketed toward foreign buyers. 'That’s the reality. Malaysians, Singaporeans, Chinese.'"
It will be interesting to see how this trend continues into the future. Will properties continue to be aggressively marketed (and indeed built), towards and based on the superstitious customs and beliefs of specific cultural groups?
The good news is this; if you’re like me and superstition doesn’t faze you one bit, fear not, you are not alone. The vast majority of would be property buyers and renters place little to zero value in any superstition-based choice making.
So, whilst it is smart to be aware of trends in property positioning to the market, the best thing an investor can do is buy property based upon the simple investment fundamentals and not any superstitious beliefs.
Investing based on time-proven, data-driven fundamentals consistently beats and disproves lucky numbers, any day of the week.
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cmcevoy-Go82SmsJA9

Very superstitious: Marketing and building property based on superstitions

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Finding good tenants can be hard.
Buy-and-hold investors typically seek two desirable traits from tenants:
<ol>
<li>Good quality tenants who look after the property and pay their rent on time</li>
<li>Not only finding these good quality tenants, but hopefully tenants that offer longevity to their stay. So, tenants who will stay for a couple of years or more</li>
</ol>
In my investment experience, whilst I’m yet to have a tenant ‘quality’ issue, if you have sourced good quality managing estate agents with a proven track record of property management experience, you should be OK on this front. I have had a somewhat ‘mixed bag’ when it comes to maximised tenant duration.
For some properties I’ve had young family tenants in them for four plus years, yet for others I’ve had a high turnover; with one property changing tenants every six months on the dot. Obviously for investors; minimising vacancy periods or ‘down time’ is a major objective and in one financial year even just a couple of weeks of vacancy between tenants, if unplanned for, can throw the holding cost and tax structure of an investment property in to a tailspin.
So, I’ve recently found myself in the precarious position of being ‘between tenants’ for one of my properties. However, instead of sitting tight with a vacant apartment for a couple of weeks, I chose to take action.
Like somewhat of a guerrilla investor, I’ve been busy most nights after work going over to the property and adding what I call ‘short-term value’.
I’m no Cherie Barber or Nathan Birch (two of Australia’s most revered fast-turnaround property ‘flippers’), however I’ve taken several cues from their YouTube channels to put together a list of time and cost-efficient things you can do in the shor- term to add value to your property whilst between tenants, to maximise return potential and capital growth.
Cost and Return Analysis:
In no order, here is what I’ve been able to do, by myself, after work every night, for the last two weeks. I’ll tell you to the total cost of the improvements along with the result in terms of rental return improvement.
This property is a small (67 square metre) two bedroom apartment in an old 1960s apartment block in Sydney’s Inner West.
<ul>
<li>Tile painting in the bathroom ($230)</li>
<li>Re-painting all bedroom/bathroom/front doors ($60)</li>
<li>Replacing all doorknobs with modern ones ($65)</li>
<li>Replacing living room and kitchen lights with modern ones ($160 including electrician)</li>
<li>Re-netting and re-tubing all flyscreens ($28)</li>
</ul>
Total cost (investment): $543
Asking weekly rent before renovation: $380 per week 
Actual weekly rental return, post-renovation: $420 per week
Rental return gain per week: $40 (effectively an extra $2,080 in rent per year; almost four times return on initial cost). This amount almost pay’s for a full quarter’s strata fees. Plus, the capital gain realised, though I do not yet have a post-renovation valuation report, will be a worthy reward for what has been a duck-in/duck-out light renovation.
To Sum Up
I’m a firm believer in the notion these days that property investors need to ‘manufacture’ return instead of just waiting for it and guerrilla renovations are an easy way to do just that.
Yes, the old investment adage ‘time in the market versus timing the market’ still does apply, but that doesn’t mean you can’t give it a little nudge every now and then.
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Guerrilla renovations: Adding value and rental return on the cheap

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New investors can sometimes neglect the importance and value of getting a depreciation schedule for a property.
But the truth is, there are just so many reasons to get one for your investment property. Tax depreciation potential is so integral to my personal investment strategy that I even get depreciation schedule quotes on properties I haven’t even purchased yet.
I’m not an expert on depreciation myself; which is why I’m writing today about an area that is perhaps not as commonly considered when talking tax depreciation.
Most investors (myself included) tend to focus on units and apartments in their buying strategy. These property types are typically more accessible financially for first time investors and those on limited budgets. Plus, and as trends in recent years have uncovered, the stereotype that units do not acquire capital growth as fast as detached houses, has been (rightly) challenged and disproved in some instances.
Certainly from a depreciation perspective investors immediately think of the ‘indoor’ items that can be accounted for in a schedule (things like ovens, appliances, HVAC, and so on); however, and as I am discovering, there can be substantial depreciation benefits to outdoor areas too.
<blockquote>
Depreciation can actually be claimed for outdoor structures, fixtures and fittings in investment properties.
</blockquote>
Depreciation can actually be claimed for outdoor structures, fixtures and fittings in investment properties. In fact, items outside a building can actually add value to a property. Rather than ignoring the street appeal, investors can include items in the yard or outdoor area to help attract potential tenants. The investor can then maximise their deductions by claiming depreciation on the eligible items in the front yard, backyard and balconies of their properties.
Deductions can be claimed on these outdoor assets as either capital works allowance or plant and equipment depreciation.
Capital works allowance, also known as building write-off, is based on the historical cost of a structure, excluding the cost of plant and non-eligible items. Outdoor structures which qualify for the capital works allowance include:
 <img src="/images/2014/06/18/mcevoy-june-28-one.jpg" alt="">
Plant and equipment items, including removable or mechanical assets, are also eligible for depreciation deductions. Each plant and equipment item has an effective life set by the Australian Tax Office (ATO).
The depreciation available on each item is calculated using the effective life. Some depreciable outdoor plant and equipment items commonly found outside a property include:
 <img src="/images/2014/06/18/mcevoy-june-28-two.jpg" alt="">
Assets outside a property can be worth thousands of dollars. Investors should take special notice when old assets including retaining walls, garden sheds, and driveways are removed and replaced during a renovation. They may be entitled to claim 100% of the remaining depreciable value for these items as a deduction.
A specialist quantity surveyor is qualified to calculate values and construction costs of these items and can ensure that investors are not throwing dollars away. What is relatively a nominal cost to the investor for this quantity surveyor’s depreciation report can return thousands of dollars over the life of a depreciation schedule for that property. Food for thought indeed.
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Why outdoor appreciation increases depreciation

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Brisbane, like other metropolitan cities in this first half of 2014, has had somewhat of a buying frenzy amongst both home buyers and investors.
Having recently procured a property there, I uncovered something rather alarming during my due diligence process.
It turns out that some councils within the metropolitan area of Brisbane have introduced different pricing for their council rates based on the type of buyer you are. If this sounds unfair, it is probably because it is. In fact, the story has recently <a href="/news/qld/margaret-lomas-heads-fight-against-higher-council-charges-for-investors">gained momentum in Property Observer</a>, with industry expert Margaret Lomas adding her views to the matter.
The thinking behind this policy is that home owners are ‘doing it tough and need a helping hand’. There is an assumption by some Queensland councils – such as Mackay, Brisbane City, and Logan City – that investors can afford to pay higher council rates simply because they are investors.
I purchased a property on 5 May in <a href="/news">Zillmere</a> (Brisbane’s northern suburbs) and was advised that my dwelling and ownership/usage structure (as an investor, so non owner-occupier) placed me on a ‘Category #14’ pricing of 42.8 cents per unit. Had I been an owner-occupier, my rate for the same property would fall under ‘Category #1’ (incurring a rate of 30 cents per unit).
This is clearly discrimination based on the ‘assumed’ status that investors are more cash-flow rich than owner-occupiers. The rate structures are not means-tested so there is no factual base for this pricing, rather just an assumption.
<blockquote>
This discriminatory approach in some councils throughout Queensland is merely a price-gauging and revenue-raising strategy at the expense of those trying to secure their financial future. 
</blockquote>
It’s unfair because council rates are paid to ensure that services to the suburb area such as rubbish collection, council clean-ups, bushland and fire levies, library and park maintenance; are provided for all dwelling occupants living in the area. Regardless of the occupant residing there, all occupants are entitled to the same services provision.
The biggest mistake these councils have made in their assumption of investor wealth, is that investors are cashed up and aren’t also ‘doing it tough’.
If councils want to penalise those who scrape together their savings to try and provide a better future for themselves and their families via investment, is this not discrimination? 
Regardless of how small or seemingly inconsequential the rate difference is between the two ownership types, it is the principle of the matter that needs to be challenged. This is because this council initiative may set future a precedent that other property related service industries may enlist.
I’ve observed in my investment career instances where one council will form a new policy and other neighbouring councils will adopt a similar policy in the years ahead.
Imagine if you were an investor and needed to send a plumber out, yet the plumber advised you that their service rate to you would be higher because you are an investor. Or if strata management companies gave owner-occupiers a discount at the expense of a rate hike for those lot owners who happen to be investors.
What makes this more embarrassing for some of the councils involved, particularly Brisbane City Council (BCC), is that the owner-occupier rate is not discounted, meaning that the rate hike for investors is clearly a revenue raising strategy.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
Are councils neglecting the value that investors bring to their suburbs?
Investors actually bring revenue to an area when they buy and in some instances greater revenue than owner-occupiers. 
Why?
Think of the housing they provide for residents who aren’t yet able to afford their own ‘owned home’. Think of the job creation for the local community in terms of ongoing real estate agents managing and representing the property, bringing wage growth into that local business and council area.
Even when looking at the logical rationale behind this move; there simply isn’t one. Why? Because rates are currently structured to be paid per-household regardless of occupant volume residing in that household. If discrimination is to occur based on ownership status, why are these councils not also discriminating based on occupant volume?
Is occupant-volume a fairer way to price-structure council rates?
Think about what these rates cover. These are things that if rate pricing structure is to be introduced logically should be based on occupant volume of the property, not the type of occupant that resides there. 
For instance, a single person occupying a four bedroom house is likely to produce much less rubbish and stormwater drainage wastage each week, than say a family of five, occupying that same house.
The single occupant may only even put their bins out once every two to three weeks, yet the family of five may be putting an overflowing bin out, every single week. Surely this would be a better standard of measure to determine the rates that occupants pay.
This kind of ‘user-pays’ services approach is employed in several places around the world such as Singapore and ensures that services usage is minimised and costs kept down as much as possible, for all.
Is this pure discrimination and revenue-raising?
This discriminatory approach in some councils throughout Brisbane and greater Queensland is merely a price-gauging and revenue-raising strategy at the expense of those who are just trying to establish and secure their financial future. 
Oh and the other thing is this, specifically the Logan City Council (LCC) as well as Brisbane City Council (BCC) have formed these policies in recent times. Is it just coincidence that these two council areas (and their encompassing suburbs) have had the highest investor penetration in the last two years out of all of Brisbane metropolitan area and would stand to benefit most from an increased rate revenue from the investor community?
The trend could be on the rise with other city and municipal council areas in Brisbane and Queensland. So if you are either an owner of an investment property or you are thinking of buying one in this state, ensure you call the council of the area your property falls under during your due diligence phase.
How can investors stand up against this?
My recommendation as a due diligence point for any investor, in any Australian suburb, is to call the local council and find out what their rate policies and pricing structures are. If you feel you are being charged a higher rate unfairly, you should challenge them on this in writing. 
It is likely that the matter is not financially viable to pursue from a legal perspective; however, the more noise created about this strategy the more the spotlight is placed on councils to consider changing their pricing policies.
I personally will be challenging my higher-rate status with Brisbane City Council in light of this, purely out of principal.
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Variable council rates for investors is blatant revenue raising and discrimination

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Previously, I looked at <a href="/expert-insights/investing/the-pros-and-cons-of-investing-in-a-modern-duplex">the positives and negatives of duplex housing from an investor perspective</a>.

Today I'll explore a more recently evolved ‘sister’ property type to the humble duplex – the ‘dual-key’ property.

Dual-key properties are a fairly recent emergence; however they have existed for decades in places such as Sweden, Japan and the United States.

A dual-key property is effectively one main property, with one front entrance door/hallway. The property then has a living room, bathroom, kitchen and one or two bedrooms.

Sounds like any normal property so far; except that a dual key property has an additional dwelling inside of it. Usually there’s an extra bedroom that has its own door lock. Inside the bedroom is a studio apartment with its own small kitchen and separate bathroom.

Unlike duplexes, dual-key properties enable one space to be shared by two separate parties or tenants. The property may have only one entrance/front hallway, through which all occupants enter. Some dual-key properties have only this as a common area, however most typically have a shared lounge and kitchen. Usually each tenant will actually have separate keys that unlocks only their own bedroom and bathroom spaces.

The pros and of a dual-key investment:

<ul>
<li>Two income producing properties on one title (unlike some duplexes, townhouses and attached dwellings that may require separate titles).</li>
	<li>As the property unit owner will typically only need to pay strata for one property, not two.</li>
	<li>Each portion can still be let separately, offering investors great scope for maximum rental return.</li>
	<li>Arguably, in an ageing population that is also downsizing and urbanising, dual-key could be a smart play to reach into the urban dwellers who require extra space for a parent or elderly relative to live close-by (but still with some privacy and separation).</li>
	<li>Another target rental audience for these property types would be students. Most urban students desire to live within walking distance to everything; their campus, CBD centres, and transport hubs. Dual-key properties may be attractive to students who seek a well located, low maintenance/low common area cleaning property.</li>
</ul>
The cons and of a dual-key investment:

<ul>
<li>Because dual-key is a (relatively) new property type in the Australian market, many are being priced as such. It may be financially smarter, in terms of rental return, to simply buy two separate properties from the beginning.</li>
	<li>The jury is still out on whether this property type is high demand or not. The abovementioned student and extended-family demographics may appreciate this property type, but many others will not. Urban young professionals, for instance, may simply prefer to pitch in for a three or four bedroom share house instead.</li>
	<li>Banks and lenders may have reservations in approving mortgages for this property type.</li>
	<li>Dual-key properties may actually offer limited capital growth. However, some dual-key properties may be easily convertible back to a two to three bedroom single property later down the track.</li>
</ul>
It is a great sign of the times that dual-key properties are on the uptake. With limited urban space and continually high-demand to occupy it, this property type could be a good compromise between human density and quality of life.

As a prospective investment property however, like all property types, would-be investors need to crunch rental and capital growth numbers and consider all the issues a dual-key property type presents, before taking the plunge.

<h2>Check out our latest listings:</h2>

[smartcode_project:default project_id=22057]

[smartcode_project:default project_id=94811]

[smartcode_project:default project_id=24532]
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The pros and cons of dual-key investment properties

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Most first-time investors – and indeed established portfolio owners alike – will have apartments and units as part of their core investment property acquisition strategy.
From a public/tenant liability perspective, apartments are often thought of as a safer property type in this regard, in comparison to detached houses. However, this is not to say apartments and units aren’t without their own risks.
Here’s a short list of safety risks you need to know about, as a landlord, that might come back to hurt you, if left unchecked.
<ol>
<li>
Curtains and vertical blinds  Recent compliance changes in several states pertaining to curtain/blinds are very important. For most curtains and blinds; a rope-style pulley system is the commonplace curtain raising/lowering/opening mechanism. However, many older-style pulleys (say blinds older than four or five years), are a child safety hazard, and children can be at risk of choking if caught in the connected pulley strings. This risk is an easy and cheap fix; just Google ways to replace or cut and repair the pulley strings to make sure they are compliant. 
</li>
<li>
Safely opening windows  On to windows as opposed to blinds now, and the requirements per-state/territory change, so be sure to research the compliance rules specific to the state your property is in. In some states, the rules on the gap a window is able to open (for units where the windows are above a certain height from the ground – so, some ground floor units may be exempt) is undergoing change currently.  The safest thing to do is ensure your apartment’s windows are fully compliant with your state’s rules. This is again a child safety issue, and rules were introduced to prevent children falling out of high windows. For instance, in some states there are rules that require windows to open to no more than just 12 centremetres width. 
</li>
<li>
Fire alarms need to be tested regularly  This sounds like one of the most obvious unit and apartment safety issues, but I am constantly surprised by the number of investors I speak to who do not regularly check the working function of Smoke and fire alarms in their properties. The simplest way to regulate this is to ensure your managing property agent checks them for you (and signs off on the inspection report, having indicated they are in working order). However, this isn’t already an iron-clad guarantee that the devices are functional or have even been checked. From a legal standpoint, should any fires break out, the managing agent may not be held accountable to this either. Smoke alarms vary in price, from as low as a $9 K-Mart job, all the way to premium products that include regular servicing options to ensure compliance and safety is checked and maintained. These are the safest and most legally-liable solutions, though the cost is much higher for this piece of mind. 
</li>
<li>
Balcony balustrade heights  Balcony balustrade height requirements vary from state to state, however it is something to check in on for both newer and older apartments alike. If a balcony balustrade on a property you are considering purchasing as an investment appears to be quite low, it is work querying this with the selling agent. Also, investigate compliance issues that may result from a child (or adult!) balcony fall or accident as a result of a low-built balustrade. Again, ground floor apartments and units are often exempt from this requirement. 
</li>
<li>
Internal and external stairwell balustrade heights  Similarly to item number four above; be conscious of balustrades on stairwells both inside the unit and outside too. The exceptions of course are any ‘common property’ stairwells. Any accidents or deaths pertaining to incidents on these common-property stairwells are handled by the strata plan liability insurances, and not individual unit or apartment owners.  I was actually caught out on this in my most recent property purchase. The property featured a modern ‘floating’ internal stairwell that simply had a raised, open-air hand rail, with no connection to the steps below it. This meant that a child or infant could potentially make it half way up the stairwell, then fall off the steps over the side balustrade, and injure themselves. 
</li>
<li>
Get a building and pest inspections report and read it carefully The above stairwell discovery was only found when I had the building and pest inspection report completed, prior to cooling off period ending. I’d identified the issue and investigated a plan to resolve it, prior to the cooling off period ending, and I make the same recommendation to would-be investors out there reading this, to do just the same. A building and pest inspection is so valuable for this reason. Sure, it is a few hundred dollars extra expenditure on the property, however it can save thousands later on. Most investors and property buyers assume this report just reveals any structural faults and rodent/insect problems, however the real value lies in the ability to foresee liability issues early on, before you complete your cooling off (aka ‘back out of the deal!’) period.
</li>
</ol>
You can visit Cameron's blog at <a href="https://www.propertycorrespondent.com.au/" target="_blank" rel="nofollow">Property Correspondent.</a>
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Six apartment safety risks every investor must know about

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Sometimes, an investor is presented with the exciting prospect of picking up a dual-income residence at below-market buying rates. Many readers will be very familiar with the ‘duplex’ housing type in Australia. Throughout most capital cities and regional centres, duplexes have been a popular choice for many decades.

Modern innovation on the humble duplex design have also paved the way for new investor opportunities.

For those not familiar with duplex property types; a duplex property is effectively two conjoined properties occupying one block or plot of land and will share at least one common wall. Both dwellings in a duplex are constructed at the same time, however, depending on the title structure, they may be strata or non-strata titled.

If strata titled, each dwelling may be sold and owned separately. However if not strata-titled, it means both dwellings within the duplex can only be sold together. Sometimes investors can purchase both sides of a strata-titled duplex, enabling for the opportunity to owner-occupy one half, whilst renting out the other half.

[smartcode_project:default project_id=27728]

Each dwelling in a duplex is completely separate with no shared rooms or entrances. Each dwelling has its own bathrooms, bedrooms, living areas, courtyards and sometimes their own garages. Duplex designs have come leaps and bounds in recent years, evolving from what were once pretty ugly property types that were viewed as only occupying dodgy suburbs.

This was because decades ago, tenant demands were very different to what they are today. Typically, ‘good quality’ tenants favoured only houses on large blocks, located in suburbs very far from the CBD centre (greater than 20 kilometres). For this reason, duplexes were harder to market, with rental return sometimes not being strong, due to renter demand preferring detached houses.

However, fast forward to 2014 and as the cost of land skyrockets across most major capital cities and renter demand is shifting towards smaller living spaces (but in closer proximity to CBD centres); the concept of the duplex has become a popular talking point again.

[smartcode_project:default project_id=4807]

So here are some of the pros and cons for the duplex housing type:

Pros 

<ul>
<li>
The biggest pro is the potential to pick up two income revenues on what is effectively one property. 
	 </li>
	<li>
If well-purchased, this rental return rate can make for a positive cash flow from the outset. 
	 </li>
	<li>
Duplex properties tend to fare better in terms of re-sell value compared to a traditional house that has had a granny flat added to the property. 
	 </li>
	<li>
The potential to have no strata title structure creates an opportunity for investors to not only reduce holding costs (thereby adding more rental return to the property), but it also enables greater control over the expenditure of both properties. 
	 </li>
	<li>New providers and builders are innovating in this space. Designs are way more aesthetically pleasing these days and are in fact are being designed to give the appearance of one big house (from the street) rather than a duplex or an uglier ‘bolt-on’ house. This adds curbside appeal to both dwellings and helps maintain street value, and for investors this also enables greater capital growth potential for both dwellings.</li>
</ul>
[smartcode_project:default project_id=7275]

Cons 

<ul>
<li>
Whilst it is great having no strata costs; the reality is as owner of both halves you must maintain both dwellings as you would any other detached house. This can mean three to four bathrooms to maintain instead of just two; two kitchens instead of two; two gardens; HVAC systems and so on. 
	 </li>
	<li>
Further to this; you thus lose many of the ‘economies of scale’ gained when owning a unit in a strata titled complex of say a dozen or so units/villas. Things like roof maintenance become much more expensive when split between only two dwellings versus a dozen. 
	 </li>
	<li>
I mentioned the opportunity to live in one half and rent the other, however there could be capital gains tax consequences to doing this. The reason being it is effectively one title on the overall property. On the flip-side however, you could strata title each one and owner-occupy one dwelling (and never rent it out as an investment property) there is potential to qualify for capital gains tax concessions for that dwelling only. However… 
	 </li>
	<li>
Traditionally duplexes on one title are harder to sell. This is because you can only market the property to either owner occupier investors or owner occupiers who require a second dwelling for extended family. So, it shrinks the prospective buying pool, which may result in a less favourable sales price when you do find a buyer. 
	 </li>
	<li>However, this may not be such a bad thing, because as our aging population gets older; the potential demand for properties that can occupy a young family, along with the grandparents, is significant.</li>
</ul>
Image courtesy of the the NNECAPA photo library/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">CC</a>.
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The pros and cons of investing in a modern duplex

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Many residential property markets around Australia are currently in a ‘hot’ phase of their cycles. By that, I mean that these markets are in the maximum peak property values of their current market cycles.
It is a great time for sellers but a tough time for buyers.
Buyers in markets like Sydney, Brisbane, Perth and many regional centres are facing tough times right now. There are a number of contributing factors as to why these markets are so hot; not limited to the following:
<ul>
<li>A record low interest rate environment is encouraging some first time buyers in to the market who otherwise would not have been able to afford to.</li>
<li>First time Australian citizen investors, enticed by the low interest rates on offer and an increase in construction upstarts for off the plan investment purchases, are buying up properties at very high rates.</li>
<li>In regard to non-Australian-citizen/foreign investors, the introduction of relaxed government policy as well as incentives offered for certain degrees and levels of foreign investment in Australia has made for a property buying frenzy from foreign investors.</li>
<li>The ever-increasing urbanisation of Australia’s population is resulting in more people moving to capital cities as well as established regional cities also. This in turn adds demand.</li>
<li>The general ‘FOMO’ effect (fear of missing out) as a result of the above factors adds a heightened sense of urgency to another property-seeking group, mainly upgraders and second or third time property buyers.</li>
</ul>
All of this of course adds up to high asking prices in many markets. However, initial high buying prices isn’t the only challenge that occupants and residents of these hot markets will face. Different groups will be affected in these hot markets, and in different ways:
First home owners
Despite low interest rates on offer, first home buyers remain consistently out-bid and out-priced within their desired suburbs. The other worrying factor for these buyers is that even if they stretch to their absolute maximum buy rate to secure a property now, they are doing so in a very low interest rate environment.
If first home owners are stretched to their limits now, how they will cope when interest rates fluctuate back up to higher levels over the next 24 months?
I am not of the view that a massive property bubble is forming, however I don’t deny that in low middle income areas where first home buyer volumes are higher, should a significant volume of them fall under mortgage stress over the next couple of years property values in those areas may stagnate for several more years to come.
Australian-based investors
I use the phrase ‘Australian-based’ for this investor group to encompass both Australian citizens who naturalised in this country for most or all of their lives, as well as those who are newer arrivals to Australia but call Australia home (in other words, they live here full-time).
Investors who have purchased residential property in hot markets are no different to those who seek out properties in emerging or undervalued markets; all interested only in the return they get on their investment. This means that providing that either strong capital growth potential, or high rental return, are evidenced in a property purchase, they will consider a property in any market climate – hot or cold.
The problem is hot property markets mean that capital growth for that market/post code is usually at its maximum. That means that for investors seeking immediate capital growth, this will be unlikely for several more years because the property is at its peak right now.
<blockquote>
The consequences of suburb specific saturation by investors have not yet been truly seen.
</blockquote>
This means that if an investor in a hot market is truly a savvy buyer, versus a poorly-researched, ill-advised wannabe investor, they must be seeking 'hot’ (and immediate) rental return over capital growth.
That  paints an alarming picture for overall housing affordability in these markets. Investor owned properties must be charging very high rents to occupants of their properties right now to ensure their investment isn’t a massive loss-maker for them. That means that not only are property buying rates high in hot areas, but so are rents. Overall affordability to live in these cities  becomes poorer.
Non-Australian and foreign investors
Similar factors exist for foreign investors in comparison to local ones.
However, there is another factor at play. Recent investor profile data research from Australian Property Investor magazine suggests that local investors tend to buy in the same city (if not in a nearby suburb) to where they live. Foreign investors typically purchase, site-unseen, in markets that they have never lived in, nor even (in many instances) have visited.
I guess the missing ingredient here is the ‘sense of community’ that mass-property buying, condensed into a small group of ‘favoured’ suburbs or areas, erodes and the effect this has on an area. Some suburbs can become at risk of being investor ghettos whereby the ratio of owner-occupier to investor-owned property is so high that a genuine sense of community within that area becomes quickly eroded.
<blockquote>
Investors should look to emerging markets where owner-occupier to renter ratios are much more balanced.
</blockquote>
This then changes the dynamic of that entire area; eroding the gentrification developed over decades, in the space of just a decade or so of heavy investor-buying. Of course, it is not the fault of (nor should the blame be pointed at) the foreign investors themselves; but rather local and state councils, policy-makers and governments whose planning departments allow this occur, as well as property developers who exclusively market to foreign investors from the moment the first block foundation concrete is poured, en-mass. 
I draw a parallel here to post-World War Two Melbourne, where ‘outrage’ existed over the Italians buying out entire suburbs within just a couple of years after the war. The difference however, is that these communities owner-occupied the areas, made a great contribution to the ‘sense of community’ those areas had, and in hindsight were one of the major market driving factors that has given these suburbs the wonderful identity (and desirability) they have today. Yes, some areas were almost entirely ‘foreigner-owned’, but these people became locals and celebrated their communities.
Fast forward to 2014 and there is a lot of uncertainty around the concentrated foreign-investor buyouts of entire suburbs. This is because investors are not living in the suburbs themselves. They do not have say a vested interest in ensuring the local park lands are maintained, or that roads don’t become too congested, or that units and houses are not occupied by too many people, and so on.
It is no doubt clear that hot property markets offer rewards and benefits for some property owners. However, the implications of investor buying extend beyond just bumping the rental and purchase prices up. The consequences of suburb specific saturation by investors have not yet been truly seen. Ever the optimist as I am, I remain doubtful that investors buying in hot areas, at a grand scale, will be a positive thing for those areas.
Investors should look to emerging markets where owner-occupier to renter ratios are much more balanced.
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Investor saturation in suburb hotspots will have consequences for residents and investors

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If you’re thinking of buying an investment property but don’t know much about where to start, my advice is to start at the end. Which is really the beginning. What do I mean? Read on, and I’ll explain.
I’m probably showing my age a bit here, but when I was a teenager, all the cool kids were listening to The Smashing Pumpkins in high school. My favourite song was one called ‘The End is the Beginning Is the End’. I liked the song and the name of it too.
Fast forward almost twenty years and I find myself applying this philosophy to my property investing career.
<blockquote>
Understanding your investor persona will help you get you growing towards your goals in the most efficient way possible.
</blockquote>
See, when you’re making your start in property investing, you should best begin by thinking about what the end result will be. What is your specific property goal?
A common end result, or goal, amongst many younger investors, is to build a portfolio that will pay its own way whilst you live your work/career life nine to five. Then when you stop working a couple of decades later and the properties have grown – both in value as well as rental income you receive – you’ll be able to quit work and have that extra revenue not only pay off the property mortgages, but also become your new salary.
So yes, the end is the beginning is the end. Start at the end result, which is really your beginning. Plan to work, then work the plan and that beginning becomes the end you originally hoped for. Make sense? Great!
The thing is once you’ve identified your goal, you’ll learn there’s more than one way to get you there. Depending on many variables – such as your income now versus your income in say five years, lifestyle factors and future projected cash-flow factors – different strategies will serve different purposes.
So today I thought I’d outline two main investor personas that I’ve affectionately called ‘cash-flow kings’ and ‘capital growth commandos’. I’ll cover what each means in growth terms, and the kind of investor each persona suits. I’ll then make quick mention of two more personas; who I’ve affectionately called ‘best of both barons’ and ‘flip and reno ringleaders’.
Understanding your investor persona will help you get you growing towards your goals in the most efficient way possible.
Cash-flow kings:
 
<ul>
<li>These investors chase either neutral or slightly positive gearing in their portfolio.</li>
<li>Whilst capital growth is important to them, they are in it for the medium-long term and favour balancing their books, effectively holding on to several properties where the rent covers all expenses for these properties each month, rather than immediate value growth.</li>
<li>This may mean that a cash-flow king will hold say three properties for several years before the property starts going up much in value.</li>
<li>This strategy can work well for low-middle income bracket earners and younger investors, who are unlikely to see as much benefit from say negative gearing strategies.</li>
<li>Key to mention is that this strategy needn’t be set in stone. During your younger ‘acquisition’ years, you may wish to procure a few properties that just pay for themselves. Then, as you start earning a higher salary you may want to pick up a property or two that has more capital-growth potential, but puts you out of pocket a little bit each month to hold.</li>
</ul>
 
Capital-growth commandos:
 
<ul>
<li>You guessed it; these investor types typically favour the security of buying properties in areas where the value of the property will likely grow in the medium to long-term.</li>
<li>With these property types however, it usually means that the rent coming in does not quite pay for all of the monthly expenses, which means you need to dip into your own pockets each month to make up the difference.</li>
<li>This strategy works well for investors earning higher salaries than the national average because oftentimes, their higher tax income bracket means the investor is able to claim back a bigger portion of claimable property expenses each financial year. For some investors, this annual tax return may offset most of that month to month top-up that they made.</li>
<li>This strategy works for  any age investor. However it can work well for those who start a little later in life, perhaps in the mid-late 30s. This is because their incomes are usually at their peak at this age and the investor can afford to chip-in each month on these properties.</li>
</ul>
So right now you’re probably thinking ‘why can’t I have it both ways?’, or ‘what about other ways to make a buck out of properties than just buying and holding on to them over time?’
Below are two more strategies to consider. Each has its challenges and advantages.
Best of both barons:
<ul>
<li>
Having your cake and eating it too is hard to do. Properties that genuinely present as possessing both high capital-growth potential and neutral-to-positive cash flow, are as rare as hen’s teeth.
</li>
<li>
Also, these are not for the faint of heart. Clever property spruikers, sales people and marketers will always market that brand new apartment tower as having high yield and high growth.
</li>
<li>The reality is very few properties actually do. Worse still, inexperienced investors or those who merely prospect (as opposed to those who use all of the paid and unpaid digital data tools available to them to draw their own cash-flow and capital-growth conclusions), can come unstuck purchasing properties that don’t quite turn out the way they’d hoped.</li>
<li>That said, these properties do pop up on rare occasions and should be snapped up when a genuine one presents itself. It’s just that you might be waiting around for a long time to find one.</li>
<li>This is why I mentioned these investor types usually need to pour in way more time and energy than passive investors do. They also need to be constantly up to speed with not only the tools that passive investors use, but the future council zoning and plans for their chosen property’s area (and yep, these plans are constantly changing and evolving too).</li>
<li>Another easier way to achieve this strategy is to procure a balanced portfolio. So, a couple of properties that are more cash-flow driven and a couple that are capital-growth driven.</li>
</ul>
Flip and reno ringleaders:
<ul>
<li>The strategies mentioned thus far assume that you are merely buying existing (or soon to be built off the plan) properties. However, flipping and renovating properties is another alternative way to drive faster growth out of residential property.</li>
<li>‘Flippers’ take run-down old properties, bought well below market value, then do a renovation to get them up to market value before selling the property on for a profit.</li>
<li>There are plenty of TV shows glamorising this approach; The Block, Property Ladder, Flip Men, and Flip This House to name but a few. Local property celebrities such as Nathan Birch and Cherie Barber have made their fame and fortune out of this approach.</li>
<li>When you take the glamour away, the reality is this: Unless you’ve got a tonne of existing industry contacts, possess some construction  know-how, and are a great project manager who can stick to budgets and timelines well, this strategy won’t work for you.</li>
<li>The more ‘toned-down’ alternative to flipping properties is renovation. This can work well as part of a buy and hold strategy for those who are a bit green in reno experience.</li>
<li>
Personally, I’ve developed basic reno skills when occupying my PPR (personal place of residence), then fostered those skills when one of my investment properties is between tenants (if you’ve got a couple of weeks between tenants, and you can take a few days of annual away from your job plus weekends too). 
</li>
</ul>
I would argue these latter two these strategies are require a much higher time investment than these first two more passive, investor personas. This is worth keeping in mind when starting out and you’re assessing not only how much money to put into property investing, but how much time.
Think about the type of investment strategy that is going to work best for you. You should then begin your due diligence and assess the feasibility of your strategy in comparison to your time and budget investment levels.
</body></html>

Cash flow kings and capital growth commandos: Which investor persona are you?

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I’ve spent considerable amount of time in the US in the last six months; both as a holiday-renter in Hawaii and as a short-term-stay, ‘business-traveller’ in Los Angeles. During these visits I’ve had some great exposure to the self-managed holiday rental property market not as an investor, but as a tourist renter.
The time spent got me to thinking about self-managed rental investment properties and produced a list of pros and cons if you are considering this leasing strategy for your rental property.
Pros
<ul>
<li>Gross returns can be lucratively higher than residential home property investment.</li>
<li>Property types that can achieve this aren’t just restricted to ‘holiday rentals’, whereby you buy into a scheme such as a time-share condo, or as part of a resort investment, but also well-located, private properties.</li>
<li>You are the ‘direct manager’ of your property, enabling you to save money on management fees. This can create a greater chance of a property being positively geared and returning better revenue.</li>
<li>Online services such as AirBnb and TripAdvisor enable you to affordably find short-term tenants easily and securely. This means that investors could consider coastal properties that are not part of any specific resort complex as potentially high-return short-term-stay, self-managed, investment properties.</li>
</ul>
Cons
<ul>
<li>Though gross returns are higher, sometimes net returns are not as great due to increased management fees eating away the revenue. For some properties the returns might even be less than a traditional domestic investment property, but with more management work (i.e. your spare time) required.</li>
<li>Seasonality. In Australia this is a big deal. Take for example holiday properties in the south or Tasmania. Demand may be great in summer, but those returns achieved in summer may not average out over a financial year to be very good, when accounting for the quiet times during winter.</li>
<li>Running costs. One of the biggest challenges in Australian holiday property is that most properties are part of complexes with extortionately expensive management costs. So, above and beyond the standard strata, council, and water rates you’d need to pay, there are cleaning/housekeeping costs, higher owners strata rates to pay for pools, additional staff, and so on, to be aware of.</li>
<li>Seaside property maintenance. Unlike residential housing on the coast, where the sea air eats away and the pretty paint work yet the property can still be rented as-is, seaside holiday resorts need to look immaculate at all times, to ensure the resort remains desirable for future guests and this comes at a significant cost to owners.</li>
</ul>
Further Considerations
Taking Hawaii as an example/case study; I believe some locations offer solid investment potential for those open to the concept of remote self-management and some different options both in terms of ownership structure and costs, as well as supply and demand. Here’s just a short list of observations I made, through asking some locals and concierge staff some questions:
<blockquote>
Some locations offer solid investment potential for those open to the concept of remote self-management
</blockquote>
Climate
Climate plays a huge part to the overall financial success or failure of a rental property of this type. The beauty of a place like Hawaii is that for almost every month of the year the climate is pretty much the same, year-round. This means that demand for holiday property is consistent all year long, with no real dry-spells; i.e. very low vacancy rates. Australian holiday rental properties in a year-round climate are harder to source.
Demand for the area
With a domestic population of 350 million and growing, Hawaii is highly appealing for domestic US holidaymakers. This is an important area to pause on. Solid domestic tourism participation is important in any country – Australia included – because these holiday makers aren’t affected by currency exchange variations when they travel. This makes travelling in your own backyard constantly feasible.
Australia on the other hand has a small domestic population, making holiday rentals higher risk because of our reliance on international tourists to rent the properties. Our fluctuating currency suddenly becomes an unknown that is difficult to account for in your investment.
Exclusivity:
A place like Hawaii is expensive to fly in to from any location in the world, not just Australia. This isolation mixed with strong desirability creates a near-unique opportunity for Hawaii more-so than Australia to attract only affluent holiday-makers.
With a more affluent audience occupying the properties there is reduced risk of damage to properties and other problems that can occur when a location is not as exclusive. Insurances of course always need to be considered for any property investment; however, policies are often more affordable when an affluent rental tenant occupant (even short term ones) are quoted on.
</body></html>

The pros and cons of self-managed holiday rentals

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

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Cameron McEvoy

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