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Consumer sentiment has picked up but remains weak, Westpac says, tipping fears about unemployment levels and continued problems in Europe to cause more headaches for the local economy.

The Westpac Melbourne Institute Index of Consumer Sentiment has recorded its second monthly jump, lifting by 0.4% this month to 97.2 points, from 96.9 in September. The result means there are more pessimists than optimists, and takes the annual fall to 16.9%.
The survey of 1,200 people conducted last week follows a better-than-expected National Australia Bank business survey yesterday, giving rise to hopes the economy is lifting itself out of a funk.
But Westpac senior economist Matthew Hassan says we're far from out of the woods.
"One of the things that has happened in the past few months is consumers are more concerned about their jobs than they were," Hassan says.
"There's an underlying sense that the labour market is not in as great shape as it was."
Hassan says unemployment has already risen faster than anticipated and will likely continue to rise to 5.7% by the middle of next year.
"And what's important is not just the move but the way it's being perceived by consumers," Hassan says, pointing to a survey showing a sharp spike in unemployment expectations and the changes in behaviour that usually come hand-in-hand with job insecurity.
Hassan is also not tipping an end to the European debt crisis, meaning a continuation of the volatility that has prompted dramatic movements in our equity markets and local currency.
"Given the jump we saw in September, to hang onto that gain is better than expected," Hassan says, saying Slovakia's decision to vote against a plan to help stem the European debt crisis this morning suggests that the situation is "getting worse, not better".
Westpac expects a rate cut in either November or December to have a strong ripple effect across the mortgage belt given the official cash rate is high at 4.75%.
The survey showed that the index measuring family finances was up 2.3% for the year, but the family finance index lifted 3%.
In bad news for some retailers, the percentage of people saying it was a good time to buy a major household item fell 5.6%.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/economy/20111012-consumer-sentiment-edges-up-but-employment-worries-remain">SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Consumer sentiment edges up but employment worries remain

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Residential property investment is set to pick up after a disappointing few years, according to a report compiled by QBE Lenders Mortgage Insurance in conjunction with BIS Shrapnel, with Western Australia tipped as the state to record the biggest growth.
The report comes just a few days after separate research from Deutsche Bank noted the amount of investment in residential property has declined over the past year, partly due to the increase in maintenance costs and flattening prices.
The QBE report states the return of investment dollars will be associated with growth in the mining sectors – mostly located on the west coast.
“The return of more substantial investment in the resources and mining sectors is expected to lead to accelerating economic growth, which is projected to drive greater employment and income growth,” the report notes.
According to data from the Australian Bureau of Statistics, the value of loans to investors jumped by 15% in 2009-10. However, through 2010-11 the value dropped by 8% as sentiment fell in conjunction with higher borrowing costs, “as well as creating wider affordability constraints and causing dwelling prices to fall”.
But the QBE report states demand will increase as rates remain stable over the next year, <a href="https://www.propertyobserver.com.au/residential/housing-prices-to-increase-by-about-20-in-perth-and-sydney-by-2014-qbe-lmi-report/2011101151878" target="_blank">with growth in investor activity to pick up in most states.</a>
Loans have fallen in the Northern Territory, Western Australia and Queensland by 30%, 28% and 22% respectively, but QMI says all are in for a “greater rebound” in the value of residential investment loans.
“Underlying demand is expected to benefit, as these states attract higher net inflows of migrants from interstate and overseas due to greater job creation and income levels.”
At the same time, however, dwelling supply has contracted over the past three years in Queensland and Western Australia, “which is expected to translate into a rising efficiency of dwellings over the next three years to June 2014”.
This is also predicted to occur in the Northern Territory as demand outpaces completions and as a result, “these cities consequently offer the best potential for capital growth”.
“Western Australia is forecast to lead the upturn in investor demand, with Queensland lagging due to the relatively weaker state of its local economy before it emerges during the second half in 2012.”
Investor activity is set to improve in 2011-12 in New South Wales as well, with QBE noting that after a post-GFC downturn, real house prices are still below peak 2004 levels, “providing scope for future price growth”.
The report also notes solid rental growth should come due to tight vacancy rates. But investors are out of luck when it comes to Melbourne. The report notes that the value of investor loans is likely to fall away in 2011-12 in Victoria, the only state to grow 3% in 2010-11. 
The report forecasts only a minimal amount of price growth in Melbourne due to constrained affordability and the forecast of rising interest rates to 2014.
“The current high level of residential construction activity in Melbourne will result in a significant addition of new rental stock, relieving vacancy rates and placing downward pressure on rents,” the report says.
Oversupply in Adelaide, Hobart and Canberra will also mean growth is subdued in those cities over the next three years.
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Investor interest to pick up in WA and Queensland: QBE LMI 

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{yoogallery src=[images/stories/october12villa]}
This 15th-century villa near Montepulciano, Italy comprises 4,330 square metres of space spread across three floors. It includes six bedrooms and five bathrooms, three living rooms and a chapel. 
On 2.4 hectares of land, the grounds include immaculate gardens and a swimming pool, and the villa comes with a further 30 hectares of vineyard and olive-producing land.
It is being marketed by <a href="https://www.kwnyc.com/index.cfm?page=details&amp;id=14702" target="_blank">Keller Williams </a>agent Richard Tayar with price hopes of  €38 million ($52 million).
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Italian villa for  €38 million

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Hopes the Australian economy might be snapping out of its funk have been boosted by the better-than-expected National Australia Bank business survey for September, which shows conditions and confidence shrugging off months of weakness.

"While overall conditions remained fairly soft in September, the pickup in activity implies a shift in momentum towards a more expansionary economy, compared to an economy that had previously appeared to be losing traction," the bank says.
NAB attributes the lift in business confidence, particularly in manufacturing, to the sharp fall in the Australian dollar and speculation of a rate cut or two, but says the survey also highlights a "structural" shift towards "mining and service-based industries, and away from traditional manufacturing and discretionary retailing."
It adds the survey "signal[s] caution about the likelihood of monetary policy being loosened in the near term, although the odds of a rate cut are clearly highly following the slowing in global growth and financial market volatility."
The bank says while near-term activity remains soft, it expects a "medium-term rebound in the Australian economy", with gross domestic product growth of 1.9% this year, and 4.1% in 2012, with core inflation at 2.5% over next year 12 months.
"As such, we expect the RBA will need to lift rates by late 2012. However, in the near term, the RBA is more dovish and there is now a 50/50 chance of a reduction in the cash rate in coming months if inflation remains subdued and domestic demand and the labour market weakens further."
NAB says the survey, released this morning, shows that the "variation in business conditions across sectors has become increasingly pronounced since late 2009." It says this divergence "indicates that the Australian economy is undergoing a structural transformation towards mining and service-based industries, and away from traditional manufacturing and discretionary retailing."
Business conditions improved in all industries except personal and recreational services, which remained at strong levels.
While manufacturing conditions lifted over the month, that sector – alongside construction, retail and wholesale – remain at "depressed levels," the bank says. "
Business conditions lifted 5 points, from -3 to +2 index points, after two months of declines but remain lower than the long-term average. Meanwhile, trading conditions lifted 8 points to +5, profitability edged up 4 points to -2, and employment rose 3 points to +3.
Business confidence lifted 7 point to -2 – a result dubbed a "much better outcome than what could have been envisaged given the heightened uncertainty and volatility enveloping the global economy at present."
The largest pick up in confidence was in manufacturing, followed by finance/ property/ business, transport &amp; utilities and retail. The weakest confidence levels were recorded in wholesale (-13) followed by construction (-9).
The survey also showed that labour costs eased, after two months of solid gains.
The survey follows the release of ANZ jobs data yesterday, which showed the number of job ads published during September fell for a third consecutive month.
This article originally appeared on<a href="https://www.smartcompany.com.au/economy/20111011-business-survey-suggests-economy-might-be-stabilising-signal-caution-at-likelihood-of-rate-cut-nab" target="_blank"> SmartCompany</a>.
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Business survey suggests economy might be stabilising, signal caution at likelihood of rate cut: NAB 

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Another month, another set of ugly collapse figures – the number of corporate insolvencies reached their second-highest level in August since records started in the late 1980s, according to the Australian Securities and Investments Commission.

The new figures show that 1,049 companies entered external administration in August 2011, up 14% from 921 in July, and 20% higher from 870 in August 2010.
The numbers, released last week, also show there were 1,531 insolvency appointments in August – an increase from 1,248 in July, and 1,289 in August 2010.
Cliff Sanderson, of company liquidator Dissolve, says the August monthly figures mean there have been six monthly highs so far in 2011 – and the Australian Taxation Office is largely behind the increase.
"At the basis of a lot of them is the ATO," Sanderson says.
"While the petitions they lodge in court are up a bit but not a lot, the ATO's actions cause a lot of directors to move. And as they would – they're often the last to get paid."
Sanderson says while ASIC doesn't break the numbers down into sectors, Dissolve is seeing lots of activity from small retailers and tradies such as builders and plumbers who have about five to 10 employees.
He says while calls to Dissolve in September were lower than in August, the insolvency records won't stop unless the ATO decides to soften its stance against struggling companies.
"I predict moderate further increase throughout the rest of year, but this is largely dependent on the ATO," Sanderson says.
"The ATO put away their pen a few years ago and if they get the same instruction, the numbers will turn around, but it's a fake turnaround."
"If the ATO continues to plough through its backlog, the numbers will increase."
State-by-state, Sanderson says Tasmania and Western Australia are "looking bad," collapses in New South Wales have reached a plateau, Victoria is up a bit, and calls from Queensland are on the up.
"Based on indicators over the last couple of months, the effects of the floods are starting to come through," Sanderson says.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/economy/20111010-insolvencies-hit-second-highest-level-in-history-in-august">SmartCompany</a>.
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Insolvencies hit second-highest level in history in August

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{yoogallery src=[images/stories/october11hulkhogan]}
Mid-1990s WWF star Terry Bollea - known to all and sundry as Hulk Hogan - has more than cut the asking price for his Florida mansion by more than half. Hogan initially put the five-bedroom, eight-bathroom property onto the market with price hopes of US$25 million in 2006. Finding no buyers, he removed it from the market until 2009, when it was listed with price hopes of US$ 13.9 million. In February 2010 Hogan wanted US$10. 9 million, and now the reality star is willing to settle for US$8.85 million. 
Hogan bought the property in 1992 for $2 million, and it featured in the reality show Hogan Knows Best.
The property is on a hill and overlooks the Intercoastal Waterway to the Gulf of Mexico. It comprises 1,580 square metres of living space, a dock with two boat lifts, and of course, a massive gym. It also includes a four-room guest apartment. The property is being marketed by Martha Thorn of <a target="_blank" href="https://www.coldwellbanker.com/property?propertyId=209219123&amp;mode=detail&amp;brandType=CB">Coldwell Baker Real Estate</a>.
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Hulk Hogan wrestles his asking price down to size

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A new research note from Deutsche Bank has expressed a number of concerns about the Australian housing market, and has forecast an 18.4% decline in housing starts during the 2012 financial year, based on an assumption interest rates will fall by 50 basis points.

The note come just as the International Monetary Fund has released its own report, claiming that despite the enviable status of the Australian economy it is under threat from a housing market that could be as much as 15% over valued.
DB analyst Emily Behncke wrote in the note that if the RBA cuts interest rates by 50 basis points over the next year, and the world economy does not fall back into recession, housing starts may fall 18.4% in the 2012 financial year.
The news comes as the construction industry is continuing to suffer, with many SMEs collapsing as work dries up.
Behncke highlights that Brickworks, Boral and CSR have all downgraded their forecasts for housing starts by about 10%, and that housing prices remained most flat in the year to June 2011, and that the average median house price is seven times the average family income, although this has fallen slightly from last year.
"We believe our forecasts are at the lower end of the consensus range based on a combination of forecasts, (BIS, HIA), which forecast an average rate of 145,100 and 162,700 in 2011-12 and 2012-13 respectively."
"Hence, DB forecasts for 2011-12, and 2012-13 dwelling starts are -12.3% and -14.1% respectively below average forecasts by BIS and HIA."
There will also be a shift in the types of houses developed. There will be an increase in the number of multi-level apartment buildings, with construction already taking up 38% of total building starts, despite the historical average set at 30%.
There is also a shift from investors and first home buyers to upgraders, who will move up to bigger and better homes, the note states. The value of loans from investors has fallen 8.1% in the past year.
"Given first home buyers have also withdrawn from the market – currently at 15.2% of housing finance – the only strong sector is the move-up buyer."
"Annualised move-up buyers have increased 1.9% month-on-month and 15.1% year-on-year in July 2011."
The note explains the after tax cost of maintaining investment properties based on current median house prices on average rents was 2.3% of the purchase price in the June quarter, equivalent to 2006 levels.
"We note the investment property equation is most expensive in Victoria (2.6%) in June 2011. As a result, we are not surprised that investor finance figures show a reduction to investor participation of -1.1% month-on-month and -8.1% year-on-year in July 2011."
And while the note observes housing prices haven't actually fallen, they could do so over the next year. But it also suggests that the RBA may cut interest rates by 25 basis points in the first quarter of 2012, which would potentially offset any falls.
"Affordability declined for all states in comparison to the historical average basis in QJ11 (however, improved marginally in three states on a quarter-by-quarter basis)."
"Cash rate has risen 175 basis points since September 2009. Given our expectation the cash rate will decline 50 basis points in the next 12 months, we would expect affordability to improve."
It also notes that as long as clearance rates remain above 50%, prices are excepted to remain stable.
This article originally appeared on <a href="https://www.smartcompany.com.au/finance/20111010-deutsche-bank-report-predicts-housing-starts-to-fall-18-4-in-2012" target="_blank">SmartCompany</a>.
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Housing starts to fall 18.4% in 2012: Deutsche Bank

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{yoogallery src=[images/stories/october10castle]}
Begun in the ninth century, this Medieval castle in Turin, Italy, is on 35,000 square metres of period gardens and includes 30 bedrooms and 47 bathrooms. It includes a Romanic chapel from about 850AD and a courtyard with the evocatively named Fountain of Mysteries.
King Arduino, of the Bishop of Ivrea and the Holy Roman Emperor Otto I have all at one point owned the castle.
It was restored in 1800 by architect Alfredo D’Andrade, and further restoration works were undertaken in the 1990s. It has been listed for sale through <a href="https://www.sothebysrealty.com/eng/sales/detail/180-l-682-4000014710/extraordinary-medieval-castle-torino-pi-10018" target="_blank">Sotheby's International</a> agents Dinetta Spinola and Gianluca Puracchio with price hopes of €45 million. But that could look like spare change compared with the electricity bill - all 30 bedrooms have air-conditioning, and the castle is heated throughout.
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Italian Medieval castle listed for €45 million

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12/30 Mater Street, Collingwood, VIC, 3066
<img style="border-style: initial; border-color: initial;" src="/images/stories/materst.jpg">
This two-bedroom, two-bathroom apartment comes with a car space and storage cage and is tenanted until the end of March at $502 per week. Belinda Lindsay of <a href="https://www.collinssimms.com.au/?pagecall=property&amp;propertyID=1854668" title="Collins Simms" target="_blank">Collins Simms</a> sold it at auction on Saturday, October 8 for $570,000. It had pre-auction price hopes of $490,000 plus. Lindsay says bidding was intense, with five potential bidders and three active bidders on the day. The sale price reflects a gross rental yield of 4.6%, higher than the indicative gross rental yield of 4.3% for Collingwood units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. 
For more on gross rental yields and prices in Collingwood, see the <a href="/news">RP Data suburb page.</a>
For more investment prospects that went to auction this past weekend, see pages 2 and 3.
 
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3/16 Morven Street, Yarraville, VIC, 3013
<img style="border-style: initial; border-color: initial;" src="/images/stories/morvenst.jpg">
This three-bedroom townhouse opposite parklands is currently tenanted at $474 per week to tenants whose lease expires in February, though <a href="https://www.sweeneyestateagents.com.au/profile.php?clientid=sweencp&amp;cat=sales&amp;propertyid=3714044" target="_blank">Sweeney Estate Agents'</a> Dean Johnson says the tenants would be willing to leave earlier if needed. Johnson is marketing the property with price hopes of $549,000 plus. The property was passed in at auction on Saturday, October 8 on a single bid of $520,000. The property's reserve is $549,000. If it sells for $549,000 it would reflect a gross rental yield of 4.5%, far higher than the indicative gross rental yield for Yarraville of 3.3%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. 
For more infomation about yields and prices in Yarraville, see the <a href="/news">RP Data suburb page.</a>
 
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4/ 30 Elm Street, Hawthorn, VIC, 3122
<img src="/images/stories/elmst.jpg"> 
This two-bedroom Hawthorn unit has been leased to the same tenant for more than six years. The tenant is on a month-to month lease at $320 per week and is keen to stay in the property. <a href="https://www.structuredco.com.au/sales" target="_blank">Structured Property</a> agent John Rombotis says that rent is under market value, and it could be rented for between $370 and $380 per week. Rombotis is marketing the property with price hopes of $420,000 plus. At its current rent, that would reflect a yield of 4%, about the same as the indicative gross rental yield for Hawthorn units of 4.1%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The property went to auction on Saturday, October 8 at 11.30am. 
For more on yields and prices in Hawthorn, see the <a href="/news">RP Data suburb page</a>.
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Weekend yield watch: Collingwood sale secures yield of 4.6%

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Replacing negative gearing with a new land tax as recommended in the Henry tax review is one idea to come out of the second day of the Tax Forum.
Property bodies, academics and welfare groups traded blows on whether tax concessions for property investment helps to boost housing supply, skews investments in property and costs the government more than it delivers.
Former ANZ chief economist Saul Eslake, now with the Grattan Institute, says Australia’s negative gearing system is the world’s most generous.
“When you talk to foreigners about this you have to explain what negative gearing is,” Eslake told the forum.
Responding to commentary that negative gearing helps housing supply and puts downward pressure on rents Eslake said most people who use negative gearing buy established housing, not new supply.
“The problem is with 1.7 million taxpayers doing it, that’s why both sides of politics were in a race to rule it out after the Henry review,” he says.?
“And you can only achieve reform of this nature with bipartisan support.”?
Nicola Ballenden from of the Brotherhood of St Laurence said the charity supports the recommendations in the Henry review in equalising the tax treatment of investment income.?
“And in that absence ... we should talk about limiting it,” she says, describing the practice as inequitable in two ways – people on lower incomes are not only unable to use the tax concessions but they have further competition for housing.
Shane Goodwin of the Housing Industry Association said removing negative gearing “doesn’t necessarily improve the way we treat other forms of investment".?
“Before we start tackling things like negative gearing and capital gains tax, we need to fix the supply constraints,” Goodwin says.
He also says negative gearing adds to new housing supply, is largely illiquid, comes with large transactions costs and receives similar treatment to other forms of investment.
“If we going to remove negative gearing, it can’t be in isolation,” Goodwin says.
Judith Sloan of National Seniors Australia cautioned against “Pollyanna” solutions and warned that changing the taxation of property investments would provide complications for investors, who by and large are not rich and who have made their investments in good faith based on parameters set at the time".
“There would be very significant consequences for people who have average incomes and are trying to make arrangements for their retirements,” Sloan says.?
Eleri Morgan-Thomas from Mission Australia saysthe charity is seeing “long-term structural problems with the rental market” notwithstanding the recent flattening of prices and expects supply to continue to be a problem.
Pointing to revenue foregone from negative gearing Morgan-Thomas proposed a public/private partnership where some of the income foregone in income tax is put into a social investment bond.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/tax/20111006-tax-forum-push-to-replace-negative-gearing-with-land-tax">SmartCompany</a>.
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Tax Forum: Push to replace negative gearing with land tax

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

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

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

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

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

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

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