<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
You can no longer smell the yeast, but something sure is brewing at the old CUB site in the inner-Melbourne suburb of Carlton.
Since developer Grocon moved in with its heavy machinery and grand ideas, the birthplace of Carlton Draught has become a mecca for sustainable design.
<img src="/images/stories/delta.jpg">
By 2014 Delta (pictured above), the world’s tallest totally timber and totally sustainable building, will take pride of place next the puzzle-like Pixel building (pictured below), which last month picked up the sustainability prize at last month’s Australian Institute of Architects Awards Victoria.
<img src="/images/stories/pixel.jpg">
Pixel includes a system that uses methane emitted from black (toilet) waste to heat water, has an insulating roof garden with wind turbines, enjoys 100% daylight penetration, and claims to not only be carbon-neutral but able to eventually generate enough power to sell back to the grid.
When US Secretary of State Hillary Clinton visited Australia last November she referred to Pixel as a building “Australians – and frankly Americans and others –will be studying as an example,” and even plans to use it as model for new US embassies around the world.
But arguably the biggest vote of confidence came from the Green Building Council of Australia, which awarded the building a perfect score of 105 under its green star rating tool, making it the most sustainable building in the country, and among the most eco-friendly in the world.
This places Pixel well above what the council requires for a six-star rating – its highest prize, which in industry circles translates to “world leadership in construction and design”.
<img src="/images/stories/conventioncentre.jpg">
Australia currently has 43 six-star projects, including the world’s greenest convention centre, the Melbourne Convention and Exhibition Centre (pictured above), and Darling Quarter (pictured below) on Sydney Harbour’s revamped foreshore, which is due to open in September.
<img src="/images/stories/darlingquarter.jpg">
Darling Quarter, which will house 6000 Commonwealth Bank employees, owes its six-star rating to a design that will save 2,500 tonnes of carbon and reduce water consumption by 92%.
 
<hr class="system-pagebreak">
The green star certainly is rising - and according to GBCA chief executive Romilly Madew, “11% of Australia’s CBD office space currently has some form of green star certification”.
“That’s because tenants and owners know that green buildings outperform non-green buildings in terms of comfort and productivity,” Madew says.
“What’s more, the property and construction industry can expect higher rents because tenants will pay more to secure lower long-term operating costs.
“Because they are built for high energy and water efficiency they are much cheaper to operate – they consume 26% less energy and generate 33% less greenhouse gas emissions.”
Madew supports a price on carbon, but doesn’t believe it will affect the fast-increasing take-up of Green Building Council of Australia accreditation.
“Green star has already transformed the Australian market to such an extent that it is now a standard consideration in the commercial office sector,” Madew says.
Although it is a voluntary scheme, some developers like Grocon have set their own minimum green-star standards.
“Two years ago our CEO, Daniel Grollo, stated that we would never again build a building that has less than five green stars,” says David Waldren, Grocon’s CUB site general manager.
“We have followed through with that vision, for example with the AXA building and Media House in the Docklands, and we are working very hard to establish six stars as our minimum standard,” he says.
<img src="/images/stories/legion.jpg">
That’s the plan at least for two new Grocon projects: Delta, which will use the same design team as Pixel, and Legion House (pictured above) in Sydney’s CBD, which will use Pixel’s engineers.
“Both projects share Pixel thinking in terms of very high energy-efficiency systems, a focus on water conservation and a holistic approach to the design process,” Waldren says.
“Legion House will be delivered as a high-quality office environment that does not draw any energy from the grid.”
Grocon has not been shy with its push for a low-carbon – and indeed carbon-neutral – design and construction industry.
This month CEO Daniel Grollo threw his support behind the Gillard government’s carbon tax by signing Grocon up to the Businesses for a Clean Economy group, which at the time of writing included 217 companies.
Grollo said in statement: “Personally I’m in favour of a cost on carbon. As I look forward in Australia, I see us at the threshold of some fantastic times, and I get disillusioned when I see some critical decisions that need to be made for our future getting bogged down in politics.”
Madew agrees that the carbon tax will be an important driver of innovation in the industry.
“A price on pollution is one of the most efficient and cost-effective ways for Australia to meet its international carbon reduction targets, while at the same time boosting investment in green technologies, potentially leading to a global competitive advantage.”
</body></html>

cknowlton-QnEa6ntUYP

It's becoming easier to be green, as more embrace sustainable commercial design

<html><body>
{yoogallery src=[images/stories/july22victoria]}
33 William Street, Williamstown, VIC, 3016
Two streets from the water, this four-bedroom, two bathroom house in the Melbourne suburb of Williamstown offers light and airy living. It has a solar-heated pool and outdoor entertaining area, and it includes the state-of-the-art fittings and gadgets buyers in this price point expect. It is being sold by <a target="_blank" title="Compton &amp; Green" href="https://www.comptongreen.com.au/index-tess1.php?ItemNo=1128&amp;QF=2&amp;searchtype=ressale&amp;propertyid=3521045">Compton &amp; Green</a> agents Adrian Butera and Susie O'Neill, with price hopes of $2 million plus. The property goes to auction on Saturday, July 23 at 11am. 
 
 
{module 238}
</body></html>

Open living in Williamstown

<html><body>
61/67 Carabella Street, Kirribilli, NSW, 2061
<img src="/images/stories/formjuly20nsw.jpg">
<div>
 <div></div>
<div>Within walking distance of Sydney's foreshore and offering harbour views, this two-bedroom, one-bathroom apartment sold at auction on Saturday, July 23 for $930,000. <a target="_blank" title="Sydney Boutique Property" href="https://www.sydneyboutique.com.au/pol/property/search.asp?f_PropertyID=1701015&amp;f_AgentID=4331&amp;xsl=4331&amp;f_st=1">Sydney Boutique Property </a>agents Tom Scarpignato and Chris Delaney marketed the property with $860,000 plus hopes, and the current tenant pays $945 a week and wants to stay. This represents a yield of 5.28%, considerably higher than the indicative gross rental yield for units in Kirribilli of 4.9%, according to RP Data. The light-filled property includes one car space and a sunny balcony.  </div>
For more on rental yields, average prices and other information about this suburb, visit the <a target="_blank" title="Kirribilli" href="/news">suburb page of Kirribilli.</a> 
For other investment possibilities that went to auction at the weekend, see pages 2 and 3.
 
<hr class="system-pagebreak">
4 Lancewood Walk, South Morang, VIC, 3752
<img src="/images/stories/lancewood.jpg">
This three-bedroom, two-bathroom townhouse in the northern Melbourne suburb of South Morang is situated opposite parklands. It went to auction by <a target="_blank" title="Ray White Bundoora" href="https://www.raywhitebundoora.com.au/buying/search/detail.aspx?id=RWB1579&amp;wlid=0a6427b8-ae5c-4152-996f-d0f5768c9b5f">Ray White Bundoora</a> agent Joe Torzillo on Saturday, July 23 at 10.30am and was passed in. It is still on the market, with hopes of $310,000 plus. According to RP Data, median asking rent for houses in South Morang is $360 and indicative gross rental yield is 4.5%.  
For more on rental yields, average prices and other information about this suburb, visit the <a target="_blank" title="South Morang" href="/news">suburb page of South Morang</a>.
 
<hr class="system-pagebreak">
 
32 Boustead Circuit, Kambah, ACT, 2902
<img src="/images/stories/bousted.jpg">
On an 851-square-metre block in the family-friendly suburb of Kambah, this three-bedroom, one-bathroom house will likely appeal to tenants, as it is within walking disatance of shops and transport and is close to prestigious schools. It was sold by <a target="_blank" title="McGrath Gungahlin" href="https://www.mcgrath.com.au/131463/?searchID=7735615">McGrath Gungahlin</a> agents Greg Ward and Nathan Harford at auction on Saturday, July 23 for $402,500, above the pre-sale price hopes of $395,000 plus. Median asking rent for houses in Kambah is $460 per week and indicative gross yield is 5% in the area, according to RP Data.  
For more on rental yields, average prices and other information about this suburb, visit the <a target="_blank" title="Kambah" href="/news">suburb page of Kambah</a>.
</div>
</body></html>

Yields of 5.28% in Kirribilli

<html><body>
Queensland property franchise Go Gecko has been placed into voluntary administration, with chief executive Geoff Doyle reportedly being replaced by Noel Scully.

A spokesman for administrators Vincents Chartered Accountants has confirmed the company is now in voluntary administration, although the appointment relates only to company-owned stores – the franchisees are unaffected.
Scully was contacted this morning by Property Observer, but no reply was available prior to publication.
While no official reason for the collapse has been provided, it is believed the downturn in the Queensland property market is responsible. Scully has told the Courier-Mail that difficult business conditions led to the decision, also confirming that two company-owned locations may close.
He also said there were a number of reasons behind Doyle leaving his position.
More than 40 franchisees were informed of the decision at a meeting on Tuesday, where they were reportedly also informed that Scully would be replacing Doyle.
However, one franchise contacted by Property Observer this morning was not aware that an administrator had been appointed.
The spokesman for Vincents has said a review of the business will now be underway.
Go Gecko, which was founded five years ago, has more than 50 locations. It has attempted to stand out from other property managers by capping its agent commission fees.
However, the property market in Queensland, particularly in the southeast, has suffered some of the weakest conditions in recent history. A lack of finance, a downturn in the construction industry and the damage caused by this year's natural disasters have only exacerbated long-term issues.
Prices have continued to fall, especially on the Gold Coast and southeast Brisbane, where supply continues to exceed demand. Ratings agency Fitch has said many of country's mortgage delinquencies are in Queensland.
This article originally appeared on <a href="https://www.smartcompany.com.au/property/20110721-real-estate-franchise-go-gecko-appoints-voluntary-administrators-as-queensland-property-market-suffers" title="SmartCompany" target="_blank">SmartCompany.com.au</a>
</body></html>

Real estate franchise Go Gecko appoints voluntary administrators

<html><body>
{yoogallery src=[images/stories/july22swanview]}
55A Swanview Terrace, South Perth, WA, 6151
With striking marble everywhere you look and opulence in every fitting and fixture, this house is anything but understated. It comes fully furnished and includes artwork. The owner, who demands that all visitors remove their shoes before inspecting the property, had the property as part of an investment portfolio, and it has never been lived in. Overlooking the Swan River foreshore, this 513-square-metre house includes a home theatre, fleur-de-lis woollen carpets throughout, $10,000 worth of textured wallpaper and piped music throughout. It has five bedrooms and three bathrooms and more space than an owner will know what to do with. It is being sold by <a href="https://www.verseproperty.com.au/Buying/Search/Detail.aspx?id=VPG215&amp;wlid=8dc7898f-d920-406c-b1e6-5ec7310eb8a2" target="_self" title="Verse Property">Verse Property </a>agent Prakesh Dayanandan with price hopes of $5.85 million plus. 
 
{module 238}
</body></html>

Absolute opulence in South Perth

<html><body>
A fully furnished, waterfront Tasmanian property has appeared on SQM Research's Top 10 Discount List for the first time. The asking price for 588 White Beach Road, White Beach, has been cut by a dramatic 49%, from $780,000 when it came on the market in May 2010 to $400,000. The property's last price adjustement was in December 2010, when the asking price fell to $699,000.
"The vendors of this four bedroom, waterfront property, which appears to have some pleasant views have even gone to the extent of offering the property fully furnished, seemingly in a bid to sell it as soon as possible," SQM director Louis Christopher says.
It comes in at number two on SQM's discount list, which continues to be dominated by Western Australian properties. Four out of the 10 most discounted properties in Australia are in Perth suburbs. 
1
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008173508" title="1 Flora Street" target="_blank">1 Flora Street, Midland, WA, 6056</a>
On the market since: August 16, 2009
Initial asking price: $1.9 million
Current asking price: $850,000
Reduction: 55%
Days on market: 694
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106479093" title="588 white beach road" target="_blank">588 White Beach Road, White Beach, Tasmania, 7184</a>
On the market since: May 23, 2010
Initial asking price: $780,000
Current asking price: $400,000
Reduction: 49%
Days on market: 413
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">3</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579" title="1350 Wynnym Road" target="_blank">1350 Wynnum Road, Tingalpa, Queensland, 4173</a>
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $380,000
Reduction: 46%
Days on market: 245
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">4</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903" title="3 Boolari Road" target="_blank">3 Boolari Road, Gosford West, NSW, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $580,000
Reduction: 41%
Days on market: 731
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670" title="1/21 Ocean Drive" target="_blank">1/21 Ocean Drive, Coogee, WA, 6166</a>
On the market since: May 23, 2010
Initial asking price: $2.7 million
Current asking price: $1.6 million
Reduction: 41%
Days on market: 413
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500" title="232 High Central Road" target="_blank">232-234 High Central Road, Macleay Island, Queensland, 4184</a>
On the market since: January 11, 2009
Initial asking price: $279,000
Current asking price: $175,000
Reduction: 37%
Days on market: 910
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" title="25 Vicary Street" target="_blank">25 Vicary Street, Triabunna, Tasmania, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 343
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" title="290 Viveash Road" 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: $1.5 million
Reduction: 34%
Days on market: 1,131
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105294317" title="3 Zelma Court" target="_blank">3 Zelma Court, Macleay Island, Queensland, 4184</a>
On the market since: May 23, 2010
Initial asking price: $380,000
Current asking price: $250,000
Reduction: 34%
Days on market: 412
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106404560" title="46a Stock Road" target="_blank">46a Stock Road, Attadale, WA, 6156</a>
On the market since: March 23, 2010
Initial asking price: $2.69 million
Current asking price: $1.79 million
Reduction: 33%
Days on market: 476
SQM Research also offers a list of the <a target="_blank" title="SQM Research" href="https://www.sqmresearch.com.au/top100bargains.php">Top 100 Biggest Bargains in Australia </a>for sale.
</body></html>

Asking price halved for Tasmanian entry on SQM's discount list

<html><body>
{yoogallery src=[images/stories/july20queens]}
116 Queens Road, Connells Point, NSW, 2221
This five-bedroom, five-bathroom house with uninterrupted views of the Georges River sold on June 23 for $3.03 million. It was initially listed for August 2009 auction with $3,375,000 price hopes, according to RP Data. It was the third sale in Connells Point above $3 million. The 700-square-metre luxury home features a fully tiled indoor pool, a second kitchen and a surround-sound home theatre with seven leather recliners. It has two storerooms, terraced gardens and the state-of-the-art conveniences and fittings that one would expect at this price point. The house was sold by <a target="_blank" title="Belle Property" href="https://www.belleproperty.com/">Belle Property</a> agent Brett Ramsey. 
 
{module 238}
</body></html>

Connells Point beauty sells for $3.03 million

<html><body>
{yoogallery src=[images/stories/july19cotery]}
The former Joshua Pitt leather manufacturing site at 52-79 Gadd Street, Northcote, is being turned into 123 one-, two- and three-bedroom townhouses and 53 apartments. The Cotery, seven kilometres from Melbourne CBD, is being developed by Melbourne property company Glenvill and designed by architectural firm Rothe Lowman.
The development is designed to be in keeping with the existing factory and will emcompass the factory smokestack as part of the central hub. The Cotery's exterior will feature a mix of concrete, glass, metal and timber in a sympathetic addition to the site's industrial past. 
“Externally, the use of contrasting textures and materiality, together with eclectic sculptural forms, delivers awarm earthy palette and timeless design. The seamless transition of this palette indoors delivers a development with individual character and style,” managing principal of Rothe Lowman Kim Lowman says.
Glenvill managing director Len Warson says the aesthetics of the building were a key consideration from the beginning.
"We told the architect go for broke, make it as beautiful as you can, and we’ll make the cost work," he told Property Observer. 
"It’s a beautiful development aesthetically, the fittings are beautiful and include things that you would never normally get in townhouses."
After being listed with $13.5 million plus hopes in 2010, it was speculated Glenvill paid about $15 million for the 13,450-square-metre site through DTZ marketing agent Patrick O'Callaghan and Richard O'Callaghan. The site spreads over two streets.
Northcote is known for its bohemian atmosphere, funky cafes and art scene, and The Cotery is within walking distance of the suburb's retail and entertainment hub.
“The market it Northcote is very creative, and very particular, so we needed to create a product that didn’t take shortcuts, that creatively was strong and responded to what the local audience wanted," Warson says.
"What is available in Northcote is mostly apartments, whereas this is mostly townhouses. We are more architectural."
"It’s far more contemporary than other developments we’ve done in recent times. Because it’s Northcote, that’s what the audience wants. We respond to the environment rather than having a formula."


Joshua Pitt was based at the Gadd Street property for 121 years. Manufacturing at the building ceased in 2004. 


One-bedroom townhouses, which are 80 square metres, start at $495,000 in the development. The 63 two-bedroom, 120-square-metre townhouses begin at $640,000, and the 30 three-bedroom townhouses, which have a minimum of 165 square metres, range from $725,000.
The 12 apartments within the original leatherworks building will range from 70 square metres to 120 square metres and will start at $575,000.
</body></html>

Former leather factory stitched into residential development

<html><body>
{yoogallery src=[images/stories/july19cullen]}
68 Cullen Bay Crescent, Larrakeyah, NT, 0820
In the Darwin suburb of Cullen Bay, this six-bedroom, three-bathroom house would be perfect for yachties and those who love messing about in boats, as it has marina frontage and a 10-metre berth. The lagoon-style pool overlooks the marina, and the house has low-maintenance tropical gardens. The 931-square-metre property is within walking distance of many of Darwin's attractions. The house is being marketed by<a href="https://www.raywhite.com/nt/cullen-bay/493227/" title="Ray White Darwin" target="_blank"> Ray White Darwin</a> agent Warren Pope with price hopes of $2.5 million plus. 
 
{module 238}
</body></html>

Messing about in boats in Cullen Bay

<html><body>
The auctions market may have delivered yet another poor result, but Westpac's prediction that interest rates will drop 100 basis points over the next 18 months has caused some property experts to raise their hopes of a recovery.

Clearance rates remained in the 50s in both major markets – Sydney and Melbourne – this weekend as the cold weather kept buyers away.
In a shock move last week Westpac amended its forecasts for interest rates, now suggesting they will drop by 100 basis points over the next 18 months as the RBA attempts to cope with the economy moving at multiple speeds.
Despite other economists contradicting the change by confirming its forecasts for rates to move up by the end of the year, Housing Industry Association chief economist Harley Dale says such a move "would certainly be a positive development".
"If you were to see forecasts from Westpac come to fruition, then you'd be talking about a total 1% percentage point drop in mortgage rates. That's got to be good for confidence."
Part of the downfall in new home building can be attributed to rising interest rates, keeping prospective buyers out of the market despite prices having effectively halted during the past year.
Such a dramatic fall in rates would surely be enough to prompt prospective buyers back into the market, although Dale says it would require quite a bit more to get that market moving again.
"I think there's a lot more going on, including a considerably tighter lending environment on both the demand and supply side of the housing equation."
"The other factor is that if you're looking at 100 basis points in drops, you're staring down the barrel of a pretty bad global situation."
Brian Welch, executive director of the Victorian branch of the Master Builders' Association, agrees that such a dramatic drop in rates would spur the industry into movement.
"That is the main factor in people's willingness to spend. To say that interest rates would drop rather than the reverse, that would be a bit of tonic for the industry as a whole."
"Volume builders are noticing the change away from first home buyers, and the sensitivity of the market. People are cautious, too cautious to make commitments, and all that tells me people are being careful in the industry."
Dale says the economy is "first and foremost sentiment driven", and seeing interest rates fall would be a boost to confidence.
However, there is no sign of any boost in confidence in the property market yet. Auctions results this weekend were subdued as the colder weather kept buyers away.
In Victoria, the clearance rate was 56%, with 377 homes put up for auction. Only 211 sold with 166 passed in.
"The REIV June quarter median prices showed that over the last three months there was little difference between demand at auction to that at private sale with the median price of houses sold at auction increasing by 1.2%, and those sold at private sale increasing by 1%," REIV chief Enzo Raimondo said in a statement.
In Sydney, the clearance rate was 55.9% on 181 reported auctions, while Adelaide and Brisbane recorded clearance rates of 50% and 16.1% respectively.
This article originally appeared on <a target="_blank" title="SmartCompany" href="https://www.smartcompany.com.au/">SmartCompany.com.au</a>
</body></html>

Auctions still weak but experts welcome forecast rate drop

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News