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Australian employers are still suffering under some of the world's most expensive retail rents, according to the latest figures released by CBRE, but local business may be in for a reprieve if the European debt crisis begins to take hold.

Local retailers have been suffering under higher rents for some time, only pressured further by the arrival prominent international stores. But Premier Retail chief Mark McInnes described at his annual general meeting yesterday how he's able to negotiate some discounts.
The former David Jones chief described how he's able to play hard ball and focus on internet sales in order to gain some much-needed discounts.
"Portmans in Canberra Centre is the most obvious example," he said. "We're doing $800,000 in that store – it's a terrific store for us – but we're paying $400,000 in rent and we're basically breaking even."
"We said to the landlord, "well, we're going to shut. We'll put an ad in theCanberra Times saying 'Go to Portmans.com.au and if you don't want to go online, Go to Belconnen'."
"And our rent reduced 30%."
The story is an unusual reprieve in a country where retail rents are among the highest in the world, and landlords are keen on maintaining their returns. According to the latest CBRE report, Sydney was the third most expensive city at $US1,224 per square feet every year, while Melbourne and Brisbane followed in 8th and 9th place.
Retailers have been calling for landlords to lower their rents for some time, with even prominent chains such as Baker's Delight complaining that prices are too high.
As retail experts point out, the spending environment isn't getting any better, either – the mid-year budget outlook released yesterday shows GDP will reach just 3.25% over the next two years, down from 4% and 3.75%.
With the current spending environment set to remain for quite awhile, retailers are fearful landlords will continue to demand the same amount of money.
But Simon Fonteyn of Lease Info says this may not be the case, especially if the European debt crisis spreads to Australia. "It's a complicated situation," he says.
"The critical period will be over the next three months. If things go well, then slower GDP growth may not be as significant," he says.
Fonteyn notes the GDP forecasts, and agrees that spending is subdued, but says it is difficult to predict how landlords will react over the next few years given the current turmoil in the market.
"One thing to bear in mind is that structural adjustments occur when leases come up for renewal. There is an adjustment process that changes when tenants are struggling and signing leases," he says.
"The other issue at the moment is that you're having a bit of a situation in Australia where there is a stratification of the retail market. Some sectors are doing well, and others such as middle market fashion and accessories are doing very poorly."
On the other hand, he says, some areas such as take away food, coffee and cafes are doing very well, and retailers may expect some sort of rental increase over the next couple of years in those sectors.
"The fortress centres with strong demographics have waiting lists. The bigger landlords are playing as hard as ever, because they have demand that exceeds supply."
"GDP is not the best indicator of how retailers are going to fare. Something that could be as impactful is if we had a drop in interest rates, which looks likely now."
Another issue is the European crisis, Fonteyn says, with the effects able to spread to Australia. If retail spending continues to fall, he says that could have the effect of keeping international pressure out of the market.
More international shops have been finding their way to Australia recently, and in some cases, this is pushing up rents.
"Maybe if the market is perceived to be cooling a bit, the internationals might not get as excited about coming here, and it could have the effect of dampening international competition."
This article originally appeared on<a href="https://www.smartcompany.com.au/" target="_blank"> SmartCompany</a>.
 
 
 
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How to get a discount on your retail rent, Mark McInnes style

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Retail veteran Gerry Harvey has downplayed the prospects for a retail recovery, saying at the Harvey Norman annual general meeting yesterday there is nothing to suggest the environment will get any better soon.

"I don't see any light at the end of the tunnel," he said yesterday. "There is zero light. There is nothing to suggest it will get better."
Harvey described local operations as ''treading water'' due to indifferent consumer spending and massive price deflation,
The later has led the company to reposition its shelf space away from electronic goods, which have suffered the largest falls in price.
Harvey used the example of a 32-inch colour TV advertised recently for $299. ''We were selling those things for $699 a year ago," he said.
''The whole market is in a state of extreme change at the moment so we've had to look at our business and say you can't solve this problem with TV sales because we'll have to sell three times as many to make up the difference."
"We're making more sales of everything, but it's all cheaper," he said.
Harvey Norman recently posted a 20% fall in first-quarter profits and a 3.8% decline in 2012 first-quarter sales.
The retailer launched an online store this month in a bid to respond to the rise of cheaper online competitors.
''I think this Christmas will be okay, but this is the first time that I can remember where I haven't said this Christmas will be the best Christmas ever," Harvey said.
His comments contrasted with the more upbeat sentiments of Premier Investments chairman Soloman Lew at his company's annual general meeting, also yesterday.
Premier owns several fashion outlets including Just Jeans, Portmans, and Dotti, as well as stationery store Smiggle.
Despite describing the retail environment as "extremely challenging", Lew pointed to a rise in retail trade last month.
''Trade in October improved on the trend we saw in August and September,'' he said. ''In addition, November is on track."
Lew said that if current conditions held and the group had a satisfactory Christmas, Premier's Just Group fashion holding expected 2012 earnings before tax and interest to $95 million, up from $80 million.
Nonetheless, the company relied on growth in its Peter Alexander and Smiggle stores to offset losses elsewhere.
Premier retail chief Mark McInnes said "we've opened up to 30 Peter Alexander and Smiggle stores in the last two months, and they are our growth assets with high gross margin and great product differentiation."
"In our core apparel brands, where we are making a loss or we are marginal or break-even, we are not renewing leases and we are closing based on the rental review."
McInnes said the company looked to Asia for growth.
"On our doorstep there are countries like South Korea, Japan, China, and Singapore – and those populations, when you add them all together, are ...  hundreds of millions of people."
These were sentiments shared by Harvey Norman.
Managing director Katie Page told Business Day the company's "biggest ray of sunshine is Asia."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
 
 
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Why Gerry Harvey is so down on the retail sector

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A return of first-home buyers to the market will revitalise the housing markets in all capitals except Melbourne in 2012, according to Angie Zigomanis, senior manager of residential property at BIS Shrapnel.
Zigomanis <a target="_blank" href="https://www.propertyobserver.com.au/residential/first-home-buyers-to-drive-2012-housing-price-recovery-bis-shrapnel-s-angie-zigomanis/2011112252494/Page-1">says there are about 130,000 potential first-home buyers nationwide in any given year</a>. He says government incentives such as the first-home buyer’s boost and stamp duty concessions encourage potential first-home buyers to accelerate their decision to enter the market but does not create more demand from this market segment.
He notes after government incentives end the number of first-home buyers entering the market decreases as the segment normalises back to its underlying level.
About 190,000 first-home buyers entered the market in 2009 as a result of this accelerated demand, and Zigomanis says that the slowdown in this market segment in 2010 and 2011 was a result of first-home buyer interest returning to its underlying level.
He points to <a target="_blank" href="/news">figures showing that first-home buyer lending enquiries have started to pick up</a> as part of a trend that he says will cause prices to rise in all capitals except Melbourne in 2012 as a result of this interest “trickling up” across all market sectors.
“First-home buyers represent a key driver of the residential market, underpinning demand for entry-level dwellings, which in turn creates increased demand across the market,” Zigomanis says.
However, he expects Melbourne prices to remain largely flat in 2012, as supply is set to outpace demand in the Victorian capital as a number of large residential projects are completed next year.
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First-home buyers will drive housing recovery in all markets but Melbourne next year: BIS Shrapnel's Angie Zigomanis

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
{yoogallery src=[images/stories/november30makepeace]}
Cashed-up holidaymakers who were hoping to spend their summer break on Makepeace Island will have to make other plans – Sir Richard Branson’s $16,890-a-night Noosa getaway was fully booked over Christmas and New Year’s and is busy over the summer period.
Branson opened his private retreat to the luxury holiday market <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/sir-richard-bransons-noosa-getaway-for-hire-%E2%80%93-for-%2417000-a-night/2011071150769" target="_blank">earlier this year</a>, and spokeswoman Kirsty Aitken says it has proved popular with well-heeled travellers.
“The interest we have had after just four months of opening has been overwhelming, and we are thrilled with the bookings we have received,” she says.
Aitken says many of the island’s visitors have been well-known names who choose to holiday there to escape the pressures of fame.
“Our clients often book the island because of its seclusion and to meet their desire in most cases not to have their celebrity known,” she says.
Branson, along with Virgin Blue executives Brett Godfrey and former colleague Rob Sherrard, bought the heart-shaped island for $2.86 million in 2007. It rents for between $7,900 per night for up to eight guests during the off season to $16,890 per night for up to 22 guests during busy periods.
There is a main house, three two-bedroom villas and a four-bedroom guest house. It has a boathouse, lagoon pool and a 15-person spa.
Guests travel to and from the island by riverboat, and it contains a host of facilities, such as an outdoor cinema and a full-sized tennis court, to keep them occupied.
When he announced that Makepeace island would be available to rent, Branson said: "When neither Brett nor myself are visiting Makepeace, we will make the island and its facilities available for others to enjoy the tranquillity of what is a very special place.”
One can assume the Virgin chairman will be spending more time on his island the next time he is in Australia.
 
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Sir Richard Branson's Noosa getaway, Makepeace Island, booked out for summer in the tropics

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{yoogallery src=[images/stories/november30goodwill]}
The California house where friends budding writers Matt Damon and Ben Affleck lived when they were writing the Academy Award-winning screenplay for the 1997 movie Good Will Hunting is up for sale. 
The four-bedroom, 19th-century house has fallen into disrepair and is need of renovation. Its listing information says it is "Hansel and Gretel-inspired", and it has views over LA from its hilltop position. 
Damon and Affleck lived in the house as part of a string of residences when they were young and broke relative unknowns. It is being marketed by <a target="_blank" href="https://www.kwlosfeliz.com/">Keller Williams Los Feliz </a>agent Michael Locke with price hopes of US$779,000. It has been on the market for almost 200 days and had its price hopes cut by US$50,000 earlier this month.
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House where Matt Damon and Ben Affleck wrote Good Will Hunting for sale

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<table width="447" cellpadding="0" cellspacing="0" border="1"></table>
<table width="447" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="114">
Suburb
</td>
<td valign="bottom" width="85">
Postcode
</td>
<td valign="bottom" nowrap width="247">
Median sale price for houses
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
CHARNWOOD
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$385,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
NGUNNAWAL
</td>
<td valign="bottom" width="85">
2913
</td>
<td valign="bottom" nowrap width="247">
$425,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
HIGGINS
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$427,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
RICHARDSON
</td>
<td valign="bottom" width="85">
2905
</td>
<td valign="bottom" nowrap width="247">
$430,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
MACGREGOR
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$431,250
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
HOLT
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$439,990
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
LATHAM
</td>
<td valign="bottom" width="85">
2615
</td>
<td valign="bottom" nowrap width="247">
$442,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
SCULLIN
</td>
<td valign="bottom" width="85">
2614
</td>
<td valign="bottom" nowrap width="247">
$455,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
CALWELL
</td>
<td valign="bottom" width="85">
2905
</td>
<td valign="bottom" nowrap width="247">
$458,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="114">
GILMORE
</td>
<td valign="bottom" width="85">
2905
</td>
<td valign="bottom" nowrap width="247">
$465,000
</td>
</tr>
</tbody></table>
 
Source: RP Data
 
 
 
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Top 10 cheapest suburbs in Canberra for houses: RP Data

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Many would-be vendors whose properties have been on the market for more than three years are still unwilling to offer deep discounts to entice buyers, notes SQM Research in its latest list of the properties that have been on the market the longest.
"With only one significant discount – number five on the list, which is 290 Viveash Road, Swan View, WA (a property which has also been a regular on our top 10 most discounted properties), the remainder of the homes in this top ten have not been excessively discounted – considering you would assume their vendors may be becoming increasingly eager to sell," notes SQM director Louis Christopher.
<a target="_blank" href="/news">Houses are currently taking an average of 56 days to sell</a>, according to RP Data.
SQM's list coincides with a recent report by PRDnationwide that shows that in the Queensland suburbs with the largest drop in residential sales over the six months to June this year, house prices did not fall much. In other words, <a target="_blank" href="https://www.propertyobserver.com.au/auctions/queensland-vendors-prefer-not-to-sell-at-all-rather-than-sell-at-a-deep-discount/2011112152454">vendors appeared intent on holding onto their properties </a>rather than selling in suburbs where prices were declining.
Christopher says that many of the properties' owners may be investors who have the luxury of time.
"Potentially some of these homes may be investment properties and if so, their owners may not need to vacate the property hastily or may not have committed elsewhere, so whether their home sells today, tomorrow or next year could potentially be of minor consequence," he says. 
However, he suggests that vendors may simply be unwilling to meet the market.
"Alternatively, there is always the possibility that these homes are cases which SQM Research has often referred to as 'stubborn Vendors' – owners who refuse to take any less than a certain amount of money for their property, regardless of the current market position because they are extremely reluctant to lose any money," Christopher says.
"The irony of this, of course, is that the longer their home is advertised the more likely they may have to discount it as house hunters are becoming increasingly cluey about market value and homes that have begun to go 'stale'.
"More often than not, when individuals see a home that has been advertised for an extensive period of time, they are either going to catch onto the fact that it may be overpriced or begin to think that there is something wrong with the property," he says.
<h2 style="font-size: 18px; line-height: 21px;">1</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007103693">11 Ottiwell Street, Woorim, Queensland, 4507</a> (pictured)
On the market since: April 19, 2008
Initial asking price: $560,000
Current asking price: $499,000
Reduction: 11%
Days on market: 1,311
Last Sold For: $125,000 
Date of Last Sale: April 12, 2001
 
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007685342" target="_blank">5090 Tasman Highway, Buckland, Tasmania, 7190</a>
On the market since: May 18, 2008
Initial asking price: $250,000
Current asking price: $195,000
Reduction: 22%
Days on market: 1,283
Last Sold For: $68,500
Date of Last Sale: May 30, 2003
 
 
3
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007854879" target="_blank">19 Wellington Street, Oatlands, Tasmania, 7120</a>
On the market since: May 22, 2008
Initial asking price: $260,000
Current asking price: $205,000
Reduction: 21%
Days on market: 1,279
Last Sold For: $145,000
Date of Last Sale: November 22, 2003
 
 
<h2 style="font-size: 18px; line-height: 21px;">4</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007162731" target="_blank">1403 Magenta Drive, Magenta, NSW, 2261</a>
On the market since: May 22, 2008
Initial asking price: $600,000
Current asking price: $535,000
Reduction: 11%
Days on market: 1,276
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" target="_blank">290 Viveash Road, Swan View, WA, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2.29 million
Current asking price: $1.45 million
Reduction: 37%
Days on market: 1,264
 
<h2 style="font-size: 18px; line-height: 21px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2006717702" target="_blank">30 Charles Street, Triabunna, Tasmania, 7190</a>
On the market since: June 22, 2008
Initial asking price: $235,000
Current asking price: $195,000
Reduction: 17%
Days on market: 1,248
Last Sold For: $173,000
Date of Last Sale: November 15, 2005
 
 
<h2 style="font-size: 18px; line-height: 21px;">7</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2006781491">22 Beach Street, White Beach, Tasmania, 7184</a>
On the market since: July 1, 2008
Initial asking price: $250,000
Current asking price: $195,000
Reduction: 22%
Days on market: 1,239
 
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007358900" target="_blank">186 Beenak Road, Gembrook, Victoria, 3783</a>
On the market since: September 5, 2008
Initial asking price: $1.025 million
Current asking price: $850,000
Reduction: 17%
Days on market: 1,171
 
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008048160" target="_blank">90 Franklin Parade, Encounter Bay, SA, 5211</a>
On the market since: December 1, 2008
Initial asking price: $1.55 million
Current asking price: $1.39 million
Reduction: 10%
Days on market: 1,085
Last Sold For: $675,000
Date of Last Sale: August 23, 2005
 
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007601490" target="_blank">28 Julia Street, Swansea, Tasmania, 7190</a>
On the market since: February 2, 2009
Initial asking price: $240,000
Current asking price: $215,000
Reduction: 10%
Days on market: 1,019
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
SQM Research also offers a list of the <a href="https://www.sqmresearch.com.au/top100bargains.php" title="SQM Research" target="_blank">Top 100 Biggest Bargains in Australia </a>for sale.
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The longest 10: Three years on the market, and not budging much on price

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The final weekend of the spring property selling season has come and gone, and experts are underwhelmed as sales remained broadly in the line with the trend set in the first half of the year despite a slew of new listings hitting the market.

Most believe any improvement will not be seen until February or March, but also warn the European debt crisis could prolong the current trend if credit remains tight and banks roll back on home lending.
"That is the big danger for us," says SQM Research managing director Louis Christopher. "The threat to the housing market is that banks may severely ration their home lending."
Clearance rates in both Melbourne and Sydney remained around 50% over the past weekend, despite the number of listings increasing by several hundred.
APM economist Andrew Wilson says the result is indicative of the past season, with home buyers mostly waiting until they could get the best deal possible.
"Melbourne has certainly bumbled along the bottom of the market, and there's no real sign of a pick up there. We've been slightly more optimistic about Sydney, but we've had such a mixed news period that it's been extremely hard."
Wilson says the fear of another recession and the ongoing debt crisis in Europe has kept buyers away, and that fear will continue into the next year.
"We're starting to look like we'll get some headwinds next year, but financial markets are looking at another restriction of credit, and that will be a big change if that occurs."
"The potential in Europe is that the debt crisis worsens and the housing market is tightened. And that's not good news. The upcoming budget outlook has talk surrounding it of reduced tax receipts for the government, and that's more negative news."
While Wilson says while the season certainly hasn't been bad, the lack of sales in proportion to the higher number of listings is disappointing.
"It's still a pretty good picture, and we've had a reasonable, yet subdued, spring. It's just the national financial situation at the moment which has put us on watch."
According to the Real Estate Institute of Victoria, Melbourne recorded a clearance rate of 53%, with a total of 899 auctions. Chief executive Enzo Raimondo said the result shows how "evenly balanced" the market is.
Sydney recorded a 54.9% result, with Adelaide recording 16.7%.
Christopher says despite the macroeconomic situation, the market is ready for a recovery in 2012.
"We've had a rate cut, we'll see if that helps. That movement could certainly stimulate the market next year."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/property/20111128-property-experts-rate-spring-selling-season-as-disappointing-warn-europe-debt-crisis-could-harm-recovery">SmartCompany</a>.
 
 
 
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Property experts rate spring selling season as disappointing, warn Europe debt crisis could harm recovery

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Home ownership is the cornerstone of the great Australian dream, as it can provide financial and emotional security for households and typically represents their largest lifetime investment.
Housing investment also plays a vital role within the economy, as it can influence the pace of general economic growth, while providing an important fiscal and monetary policy nexus between governments and households.
The residential building market comprises the construction of new single-unit (detached) housing (principally built by firms in the industry), new multi-unit apartments and townhouses, and alterations and additions to existing dwellings (i.e. home improvements). The value of total work done on residential buildings was about $49.3 billion in 2011-12, which represents flat growth over the past five years (0% per annum), while the value of work done on new single-unit housing construction has contracted by an average 1.5% per annum to currently total $26.8 billion (down 1.5% on the previous year). The number of single-unit housing commencements totals about 97,000 in 2011-12, down by 13.5% on the recent cyclical peak at 112,141 units in 2009-10.
The industry generates about 75% of its annual revenue from building work on new single-unit housing, about 7.5% from the construction of apartments and townhouses, 15% from alterations, additions and repairs to existing dwellings (i.e. home improvements) and the balance from speculative property sales (about 2.5%).
Total House Construction industry revenue is about $30.3 billion in 2011-12, down 2.3% from the previous year and representing a decline by 1.5% per annum over the past five years (matching the trends in total investment). Industry value added currently totals $8.33 billion, or 0.7% of Australia's GDP.
Housing investment trends were subdued during the mid- to late 2000s by the combined influence of weaker general economic conditions, deteriorating affordability and the tightening lending arrangements associated with the global financial crisis and the collapse of the US subprime mortgage market. The underlying demand for new housing has been supported by accelerated net population growth, which has exceeded 400,000 people annually over recent years.
House building activity in southern Queensland and northern Victoria was interrupted by the devastating floods of January 2011. The initial impact of the floods resulted in delayed work on current construction projects caused by flood damage to partly constructed housing and materials, and the diversion of skilled tradespeople to work in the severely affected areas where they could help homeowners.
Early in the next five years, the reconstruction work following the floods, coupled with strong underlying demand for new housing, will support further cyclical expansion in the industry's performance ahead of a minor correction in the longer term. The industry is forecast to maintain cyclical revenue growth averaging 3.5% per annum over the five years through 2016-17 to reach a record $36 billion, matching the pace of GDP growth (3.4% per annum).
Total direct employment by this industry is about 90,000 people in 2011-12, although the industry has a heavy reliance on a subcontracted labour force. The total industry workforce currently numbers about 300,000 to 350,000 full-time equivalent people. Wage costs absorb about 15% of annual industry revenue, while payments to subcontractors and employment agencies and for professional and technical services absorb about 35% of industry revenue.
The industry comprises about 35,000 establishments and is characterised by its many small to medium-size contractors, which operate in relatively narrow regional markets. The four largest contractors generate less than 10% of annual industry revenue and construct about 10% of annual commencements. Australia's leading homebuilders include BGC (Australia), Mirvac Group, Dale Alcock Homes, Henley Arch, AV Jennings, Metricon Homes and Devine Limited, each accounting for about 1.0% to 2.5% of the annual industry revenue and housing starts.
Industry outlook
Pent-up demand for new housing stemming from the recent surge in Australia's population, coupled with solid general economic performance, will underpin record housing construction activity over the next few years. However, a minor cyclical correction in demand conditions is expected late in the period as housing affordability deteriorates and some of the current demand is satisfied.
Divergent trends will appear in the housing market over the next five years. Investment is currently constrained by the price of entry into the housing market, by high levels of household debt and steadily rising mortgage interest rates. In addition, the lending practices of mortgage initiators tightened in the aftermath of the subprime market fallout in the United States and the global financial crisis. On the other hand, Australia weathered the global economic storm better than most countries. Households continue to have a capacity to take on debt, household savings are climbing and there has been an unprecedented surge of population, which puts upward pressure on housing demand. IBISWorld forecasts renewed cyclical growth in new housing construction with record levels of housing starts and investment.
Housing Construction industry revenue is forecast to average growth of 3.5% per annum over the five years through 2016-17, matching the investment trend in the single-unit housing market, and the projected pace of Australia's GDP growth (3.4% per annum). Annual industry revenue is forecast to average $35.5 billion per annum over the five years through 2016-17, or 10.6% above the average of $32.1 billion per annum for the previous five years through 2011-12. The number of single-unit housing commencements will climb by an average 2.5% per annum over the next five years.
Australia has high pent-up underlying demand for accommodation, particularly among first home buyers, stemming mainly from the unprecedented growth in the resident population over recent years (natural and immigration), which has fuelled rental yields and property values and lifted the underlying demand for new housing construction. The effect of escalating land values and material prices will cause housing demand to swing towards the construction of multi-unit apartments and townhouses, particularly for first home buyers and empty nesters who seek the lifestyles of inner-urban locations.
Investment by first home buyers in single-unit housing will be concentrated in new housing subdivisions in the outer fringes of metropolitan areas, and all the state governments have moved to open up land for residential development.
Reconstruction after the floods
The industry will continue to derive additional impetus from the reconstruction of housing in southern Queensland and northern Victoria in the aftermath of the 2011 floods. The total value of housing construction, repairs and renovations will be $4.0 and $5.0 billion, which includes about $2.2 billion for the reconstruction of single-unit houses (spread over the three and half years to 2015) and about $1.4 billion on renovations and repairs undertaken by this industry.
The reconstruction experience of New Orleans in the United States, following Hurricane Katrina in 2005, suggests delays in new construction activity will stem from a combination of disputed insurance payouts, bureaucratic red tape (e.g. building approvals on flood zone and relief payments), bottlenecks due to shortages in materials and skilled labour, and changed zoning and building codes in response to floods.
Tradespeople will be attracted to the flood-affected regions by higher contract rates, which will have a knock-on effect for the rest of the country. In the near term, the more remote regions of northern Victoria and central Queensland will face escalating construction costs and delays due to materials shortages.
Profit performance
The industry's profit performance is forecast to continue to strengthen considerably over the next five years, and is likely to be strongest for the larger-scale builders that combine construction with land development activities (particularly lifestyle community developments) and those servicing the reconstruction effort.
Industry gross operating surplus is forecast to climb by an average 6.0% per annum over the five years through 2016-17, increasing to about a 15% share of industry revenue, up from 12.5% currently. The improved profitability is expected to support growth in industry value added averaging 4.0% per annum over the next five years, and industry wage costs are projected to grow by 2.5% per annum, reflecting the growth in direct employment (1.5% per annum) and higher real wage rates, as demand conditions tighten in the skilled labour market (particularly in Western Australia and Queensland).
Housing investment rebounds
The pent-up underlying demand for owned and rental accommodation, fuelled by population growth exceeding 400,000 per annum since the late 2000s, and the stabilisation of mortgage interest rates, points to the substantial upswing in total housing investment over the next few years. Improved general economic conditions should support housing investment trends and GDP is projected to climb by 3.5% to 4.0% per annum over the next three years to 2014-15, generating similar growth in household income.
Although housing affordability conditions remain generally unfavourable, with particularly high serviced land values, the First Home Owner Grant still applies (distributed by state and territory governments) and most states also provide generous subsidies for newly constructed dwellings, regional housing incentives and stamp duty relief.
The value of new single-unit housing construction will climb by 7.0% to 8.0% per annum over the two years to 2013-14, maintaining solid growth of 3.0% to 4.0% per annum over the next two years to total a record $33.5 billion by 2015-16. The number of single-unit housing starts will climb commensurately with accelerated growth in the short term, eventually reaching a cyclical peak at 115,250 dwelling units in 2015-16, or about 19% above its current cyclical trough (and about 3.0% above the previous cyclical peak in 2009-10).
The upswing of investment will cause industry revenue to surge by 7.3% per annum over the next two years, before moderating through the mid-term, reaching a record $37.5 billion by 2015-16 (23.8% above its current level). This performance will fuel robust growth in operating profit and will lift direct employment by 8,500 people over four years (about 2.0% per annum) to peak at 97,000 people in 36,250 establishments. The total industry workforce, including subcontracted labour, will climb to about 400,000 people.
Demand moderates
The industry's prospects are expected to moderate in the longer term as investment into single-unit housing falls 5.2% to settle at $31.8 billion in 2016-17. This turning point corresponds with the typical four- to five-year cycle in housing demand. It also partly reflects the expected tightening of investment finances following several years of strong economic expansion, and the stock of existing homes approaching the underlying requirement. The upward pressure on mortgage interest rates is expected to gather momentum in the mid-term, as government looks to fund the recent deficit increases (increasing the demand for cash), which will push up bond rates on international markets.
Industry revenue is forecast to contract by 4.0% to $36 billion in 2016-17, as the level of new single-unit housing starts falls by over 5,000 to 110,000 dwelling units. The industry will continue to derive solid demand from the home improvements market and the aligned multi-unit apartment market.
Key success factors
<ul>
<li>
Development of a symbiotic relationship with another industry: Close linkages with financial institutions enable adequate funding of activity.</li>
<li>
Membership of an industry organisation: To be eligible for insurance, operators must have membership with the Housing Industry Association or the Master Builders Association.</li>
<li>
Access to highly skilled workforce: It is essential that industry participants have access to a pool of skilled subcontractors or skilled employees, as this industry is prone to cyclical shortfalls in skilled labour.</li>
<li>
Having contacts within key markets: Businesses must have significant promotion of different types of houses at various display centres.</li>
<li>
Ability to expand and curtail operations rapidly in line with market demand: The ability to read the building cycles and to position operations according to likely outcomes is important.</li>
<li>
Access to the necessary amount of land and type of property: The larger-scale players in this market typically develop and promote residential subdivisions, and thereby profit from both construction and property development activities.</li>
</ul>
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
Photograph by Tim Gould
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Building solid foundations: Insights into the housing industry

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Despite the inclement weather, a South Yarra unit that had not been sold in 30 years attracted fierce bidding at its weekend auction. 
"With rain pouring down outside a large crowd crammed into the lounge room of 6/50 Marne Street, South Yarra as 5 bidders fought it out," says Mark Armstrong of <a href="https://www.propertytycoon.com.au/" target="_blank">Property Tycoon</a>. 
"The bidders were mainly retirees looking to downsize in a blue-chip location and a number of large bids including a $40,000 jump in the closing stages was not enough to convince the vendor to place the property on the market," he says. 
"The bidding stopped at $1.825 million and the vendors dug their heels in and passed the property in. The vendors were aware of two facts: 1) The last comparable sale in the block sold for $1.9 million and 2) properties like this very rarely lose value regardless of the market conditions. 
"Their punt proved to be correct as shortly after the auction the highest bidder purchased the property for $1.9 million."
<img src="/images/stories/marne.jpg">
Sale price:  Sold $1.9 million
Agent quote: $1.6 million plus
% above agent quote: 15.97%
Bidders: Five
Last sold: No sale on record
Average tip: $1,764,794
% Correct tips: 4.44%
<a target="_blank" href="https://www.propertytycoon.com.au/">Property Tycoon</a> allows punters to guess auction results with no outlay.
 
 
 
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South Yarra $1.9 million weekend auction tipping result

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

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

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

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

Cassidy Knowlton

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