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Valuations are at the heart of property investment – particularly when it comes to getting finance, or being refinanced, with a lender.
You might also just be asking ‘<a href="/news/how-much-is-my-home-worth-judging-a-propertys-value">What is my home worth?</a>’ and a valuation may appear to be the natural way to answer this question.
<blockquote>
MUST KNOW ELEMENTS:
IT'S NOT AN APPRAISAL
THEY'RE NOT AN EXACT SCIENCE
THERE ARE MULTIPLE TYPES OF VALUATION
COMPARABLES ARE HEAVILY RELIED UPON
YOU CAN ASSIST THE VALUER 
</blockquote>
There are also many reasons why you’d want to get an independent valuation – observer<a href="/expert-insights/investing/five-great-reasons-to-get-an-independent-valuation"> Cameron McEvoy aptly describes five crucial reasons you’d consider this</a> - and so it pays to be aware of what is involved.
Here are five ‘must know’ elements of valuations:
1) It’s not an appraisal
You may have had an appraisal with a real estate agent, and now believe that your home can fetch in excess of $630,000 on the current market. This may be the case, however a real estate agent’s appraisal is not a valuation, and will not be accepted by the bank as such.
While most real estate agents act with professionalism, investors must be aware that it’s not unheard of for real estate agents to alter the appraisal they provide you to match your expectations, and to be fairly bullish with their appraisals to secure a listing.
A valuer, however, is immune to these pressures, tasked with one job and one job alone – valuing your home.
2) They’re not an exact science
It will be of no surprise to any savvy investor that figuring out the price of a property is never an exact science, even for those trained in the valuation field. Similarly, obtaining two different valuations also isn’t an unheard of occurrence, and is the reason many investors will head to a different bank to obtain financing, particularly after a renovation.
Observer <a href="/expert-insights/investing/the-murky-waters-of-bank-valuations-mark-armstrong">Mark Armstrong refers to bank valuations as being ‘murky waters’</a>. “Remember if a valuation comes in too high and the bank loses money on the loan then the valuer maybe legally liable,” he notes, which may suggest why there is also a general impression in real estate that valuers are conservative with their estimates.
Similarly, it has been pointed out time and time again, such as <a href="/expert-insights/investing/home-valuations-can-be-subjective">by Mal James in this article</a>, that valuers are subjective. This is because they are human beings, and they act with the information provided and their knowledge to come up with the best possible response.
3) There are multiple types of valuation
While we’re focusing on a fairly rigorous in-person valuation, there are a number of different types of valuations. From the DIY desktop valuation (which have <a href="/expert-insights/investing/diy-website-property-valuations-mostly-askew">varying results of accuracy</a>), to the ‘kerbside’ drive by valuation, be aware that not all are created equal.
RP Data lists four different types of valuation that you'll want to understand:
<ol>
<li>Full valuation</li>
<li>Short form or pro forma valuation</li>
<li>Restricted valuation (to include “restricted assessment”, “kerbside” and “drive by” valuations)</li>
<li>Desktop (to include electronic valuer review - EVR)</li>
</ol>
4) Comparables are heavily relied upon
One of the major aspects that valuers look at to come up with a final figure is that of 'comparables'. That is, recent sales in your area that are close to your property in location and type. A valuer will be required to judge whether your property is superior or inferior to these sales, and so adjust their valuation accordingly. If you want to get an idea of how the valuation may stack up, it'd be worth finding out the latest sales that they will be looking at. This also means that for properties in remote areas, or unique style homes, it will be trickier for the valuer to come up with a figure and, therefore, more subjective and down to interpretation.
5) You can assist the valuer 
As with any property, present it with its best foot forward for the best change of securing a good valuation. While valuers do not want to be harassed, told how to do their jobs or provided information that could sway them against the numbers, you can be helpful and provide information about improvements undertaken since purchase.
Be on site, ready to ask and answer questions, and have all the information about your property on hand.
Despite the reasons to get a valuation, there’s always the other side of the argument. If you’re considering a valuation, you may also want to hear <a href="/expert-insights/investing/property-valuations-a-waste-of-time-and-money-terry-ryder">Terry Ryder’s thoughts on why valuations are a “waste of time and money”</a>. Late last year, Property Observer also covered a heated debate that asked for an ‘overhaul’ of the valuations industry.
Tips for those wanting to get the best from a valuer:
<ul>
<li>Provide them a list of comparable sales (potentially inside the same project, as well as some that are not). While not all valuers will use them, some will. 
</li>
<li>Apply for finance six months before completion, not six days and if you find the valuation comes in low it gives you time to get a third and a fourth. 
</li>
<li>Attain your own valuation, using a valuer that is on your bank's panel of valuers. 
</li>
<li>Ask to see a soft valuation so you can check the comparables used and the comments made. 
</li>
<li>Bear in mind that the valuer often has a different valuation for mortgage purposes as opposed to sale purposes. But mainly: 
</li>
<li>Do your research beforehand.  Go out and look at 100 or even 10 before you make a purchase decision. If you've done your research you should be confident it will value up.</li>
</ul>
Source: CPM Realty
FURTHER USEFUL READING 
<a href="/expert-insights/finance/how-to-get-property-valuations-right-terry-hayes">How to get property valuations right</a>
<a href="/expert-insights/investing/property-valuation-101">Property valuation 101</a>
<a href="/expert-insights/letters-to-the-editor-valuation-experiences">Letters to the editor: Valuation experiences</a>
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jduke-EHk3XBmHkn

Valuations: Five must know facts

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La Trobe Tower, the jazzed up 42-storey residential creation of Rothelowman architects and developer LongRiver Group, will bring 205 new apartments to the city.
The apartments in <a href="https://latrobetower.com.au/" target="_blank">La Trobe Towe</a><a href="https://latrobetower.com.au/" target="_blank">r</a>, ranging from 40 square metres to 55.5 square metres, are priced from $351,000 to $530,000, with a penthouse priced at $2.5 million. It includes one- and two-bedroom apartments, with floor-to-ceiling windows and CBD views, at 323 La Trobe Street.
Expected to be completed by 2016, the design has been inspired by the jazz precinct in Melbourne, said Rothelowman senior associate Belinda Nincevic.
“Melbourne’s rich art and music culture influenced the design process,” Nincevic said, with the development located between Queen Street and Elizabeth Street.
“The history of music and the local jazz precinct, specifically a tuning fork and piano keys, provided the inspiration for the façade design.”
LongRiver Group’s managing director, Andrew Yu, said that it has been striking a note with buyers.
At present, 70% of the 205 apartments are sold on the 374 square metre site, with piano-key styled façade. It appears to have been launched in early-2014.
Common areas, located on level 15 of the building, include a lounge, outdoor terrace, dining areas, kitchenette, private cinema, enclosed winter garden and gymnasium. The ground floor contains retail.
This is one in a number of towers, including some much larger proposals, for the area, such as 279 La Trobe Street’s 50-floor Eporo Tower.
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Jazzed up residential tower strikes key with Melburnians

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Across Australia, it's not a secret that rent has generally been ticking upwards - much to the dismay of renters - with revealingly stronger growth in some areas than others.
The latest Australian Bureau of Statistics details show that Western Australia is the state that has grown more than any other, with a 77% uptick from 2006 to 2011. In 2006, it was recorded at $170 per week, however in 2011 it was noted as $300.
Speaking of growth in the statistics, the ABS director of rural and regional statistics, Lisa Conolly, said that while Western Australia overall grew the most, the area with the biggest uptick was in Queensland.
This was a terrifying headline figure of 570% growth over the period in Weipa, in Queensland's far north, and the picture overall looks fairly drab on the surface for renters.
<blockquote>
Rental costs increased from $191 in 2006 to $285 in 2011 - an increase of 49%. Mortgage repayments have increased 39% during this time.
</blockquote>
"Rental costs have also increased by twice as much as wages with the median weekly household income increasing from $1,027 in 2006 to $1,234 in 2011, up 20%," she explained.
However, Conolly said that it wasn't quite the unexpected drastic growth, for Weipa at least, that the figure suggests.
"Local government areas in Western Australia recorded some of the biggest growth in median rent payments in Australia, with eight out of the 10 fastest growing regions located in Western Australia. However, Weipa, in far north Queensland, came in at the top, reflecting a change from employer owned housing to private rental arrangements," recorded Conolly.
Despite this, in what will come as a surprise to almost no one, it remains local government areas (LGA) in Sydney that record the highest rent. And, as can be attested by the overwhelming 'red' on all of the zoomed in capital cities, it's costly to rent in Australia's capitals.
 
LGAs with the highest rent: (Note: the suburb linked to each LGA is that closest to the relevant council chambers. For more specific suburb data, you can use our free data tool here) 
New South Wales and ACT
<img src="/images/2014/04/09/nsw.jpg" alt="">
<ul>
<li>
<a href="/news">Ku-ring-gai</a> - $575 per week 
</li>
<li>
<a href="/news">Woollahra </a>- $550 per week</li>
</ul>
The LGA in New South Wales with the fastest growth over the period was <a href="/news">Gwydir</a>, and it was noted that while areas outside of the capital city had lower overall rental payments, they showed the most significant growth over time.
The ACT was noted as having the highest median rent overall across Australia - recorded at $380 per week. The<a href="/news"> Queanbeyan</a> area grew from $185 per week in 2006 to $289 per week in 2011, a 56.2% increase.
Western Australia
<img src="/images/2014/04/09/wa.jpg" alt="">
<ul>
<li>
<a href="/news">Cottesloe</a> - $450 per week 
</li>
<li>
<a href="/news">Perth</a> - $440 per week</li>
</ul>
The fastest growth costs in Greater Perth occurred in <a href="/news">Serpentine-Jarrahdale</a>, which doubled from $155 per week to $306 per week, or a 99.4% rise, however it is noted that the LGA has one of the highest proportion of home ownership (with a mortgage) areas across the country, with just 14.7% rentals.
Victoria
<img src="/images/2014/04/09/vic.jpg" alt="">
<ul>
<li>
<a href="/news">Melbourne</a> - $400 per week 
</li>
<li>
<a href="/news">Bayside</a> - $390 per week</li>
</ul>
The LGA across the state with the fastest growth was <a href="/news">West Wimmera</a>, despite maintaining a lower rent than other LGAs. In Greater Melbourne, <a href="/news">Maribyrnong</a> saw the fastest recorded growth with a 64.7% increase to $280 per week from $170 per week.
Queensland
<img src="/images/2014/04/09/qld.jpg" alt="">
<ul>
<li>
<a href="/news">Brisbane</a> - $350 per week 
</li>
<li>
<a href="/news">Gold Coast</a> - $350 per week 
</li>
<li>
<a href="/news">Redland</a> - $350 per week</li>
</ul>
In Greater Brisbane, <a href="/news">Somerset</a> was one of the fastest growing, rising 60% to $240 per week, from $150 per week.
Northern Territory
<img src="/images/2014/04/09/nt.jpg" alt="">
<ul>
<li>
<a href="/news">Darwin</a> - $360 per week 
</li>
<li>
<a href="/news">Palmerston</a> - $360 per week</li>
</ul>
The LGA with the fastest growth across the territory was <a href="/news">Palmerston</a>, which grew 89.5% over the recorded period.
South Australia
<img src="/images/2014/04/09/s.jpg" alt="">
<ul>
<li>
<a href="/news">Adelaide</a> - $320 per week</li>
</ul>
The fastest growing LGAs across South Australia included <a href="/news">Peterborough</a>, and <a href="/news">Southern Mallee</a>, which both saw a 66.7% uptick, while in Greater Adelaide it was <a href="/news">West Torrens</a>, 54.4% growth to $247, from $160 per week, that took out the growth record.
Tasmania
<img src="/images/2014/04/09/tas.jpg" alt="">
<ul>
<li>
<a href="/news">Kingborough</a> - $275 per week</li>
</ul>
The fastest growing LGA in Tasmania was in the <a href="/news">Central Highlands</a> and the <a href="/news">Tasman</a>, with a 60% uptick. In Greater Hobart, <a href="/news">Brighton</a> rose 58.1% to $185, from $117 per week.
 
Conolly reminded viewers of the statistics that the cost of renting in a region can change due to a number of factors.
These may include:
<ol>
<li>Workforce demand</li>
<li>Population growth or decline</li>
<li>Changing tenure arrangements</li>
</ol>
"Nationally, rental costs increased by more than mortgage repayments with the median weekly household rent rising from $191 in 2006 to $285 in 2011 - an increase of 49%. Whereas mortgage repayments have increased 39% during this time," she said.
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Revealed: The areas with the highest rent across the country

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Today's ASIC submission to the 2014 Financial System Inquiry, released this morning, is filled with much discussion about the financial advice industry. However, it also takes a good look at consumers and the way that we seek out investment advice and information.
It explained that when it comes to investing and making financial decisions, there are five key points that affect our decision.
<blockquote>
"There is potential for effective marketing to target and, in some cases, exploit these biases".
</blockquote>
"Research from psychology indicates that the 'rational' investor that underpins traditional economic theory does not exist. Instead, people are simply 'normal', and their decisions are motivated and influened by a complex mix of cognitive, social and emotional factors," it notes.
The five factors they point out as heavily influencing investment choices, for better or worse, are the following:
<ol>
<li>
Behavioural biases 
</li>
<li>
Low levels of financial literacy 
</li>
<li>
Lack of access to good quality financial advice and factual information 
</li>
<li>
Information and choice overload 
</li>
<li>Length and complexity of disclosure</li>
</ol>
These five points might be opening you up to exploitation, but they can also cloud judgement when trying to look logically at comparing investment opportunities.
Behavioural biases
The first, behaviour biases, particularly when it comes to decision making biases, are claimed to be put into a number of groups:
<ul>
<li>Preferences - Often influenced by emotions e.g. immediate gratification often valued over future gain, choices made to avoid negative emotions, such as stress, or to promote positive emotions, such as security.</li>
</ul>
<ul>
<li>Beliefs - People approach decisions with pre-existing beliefs that are likely to influence those decisions e.g. over-extrapolating a small number of observations, or being over-confident about the likelihood of certain events occurring.</li>
</ul>
Property Observer likens this to investors who claim that an investment can only be good if it has a view, or is within walking distance to some-amenity-or-other. Sweeping statements can fall into this category.
<ul>
<li>Decision-making shortcuts - Decisions often made using heuristics or 'shortcuts' - for example, unconscious rules of thumb, which may lead people to choose options that appear familiar or unambiguous without weighing up all the options.</li>
</ul>
"Specific attributes of financial and credit products - such as their complexity, risk, uncertainty and long-term nature - can accentuate people's natural inclination to eschew difficult reasoning and fall back on these behavioural biases," explains the report.
<blockquote>
Behavioural biases can include:
PREFERENCES
BELIEFS
DECISION-MAKING SHORTCUTS
</blockquote>
Here, they warn, there is "potential for effective marketing to target and, in some cases, exploit these biases... As a consequence there is a risk that investors and financial consumers will acquire products and services that are not aligned with their financial situation, risk profile, objectives and needs."
Clearly, it's worth investors keeping an eye on their own ingrained biases.
Low levels of financial literacy
Financial literacy is the second mentioned point, and covers the "application of knowledge, understanding, skills and value in consumer and financial contexts and the related decisions."
At present there is no rigorous financial literacy teaching in schools, particularly around property, leaving many to their own devices and others' advice.
"For individual investors and financial consumers, knowing how to make sound money decisions is a crucial skill in today's world, regardless of age. It is a 'core life skill for participating in modern society.' It affects quality of life, opportunities people can pursure, their sense of security and the overall economic health of society," the report continues.
Past conversations with Smart Property Adviser's Kevin Lee has proven that there is a growing support, particularly in the real estate community, for these skills to be taught at school.
Lack of access to good quality financial advice and factual information
The next is access to financial advice. While ASIC is, clearly, discussing financial planners - noting that less than 40% of the Australian adult population has seen a financial planner - there are some interesting observations. Those over 50 or with a higher socioeconomic status are more likely to head to a financial planner, while those with a lower socioeconomic status or who are under 25, are less likely.
<blockquote>
At present there is no rigorous financial literacy teaching in schools, particularly around property.
</blockquote>
Despite this, "Industry studies have shown that investors and financial consumers who access financial advice benefit financially as a result of the advice, even after the cost of the advice is taken into account."
The reasons for not seeking out advice include the aforementioned lack of financial literacy, a perception of advice being out of reach, a lack of trust in advisors, the scale of advice (with some wanting it bit-by-bit rather than all at once), wide access to general advice, and the overall cost of advice itself.
Information and choice overload
Anyone who has spent 10 minutes on Twitter can attest to the abundance of material online, and it doesn't just stop with the ever-growing content available on the internet. Books, catalogues, seminars and even television shows boast huge amounts of information to sift through that can sometimes work out counterproductive, and paralytic.
"Regardless of their demographic characteristics or level of experience, many investors were overwhelmed both by the volume of information available, and the difficulty in assessing the validity of the available information," the report explained.
<blockquote>
Not only is there too much information, but it's not all trustworthy either.
</blockquote>
Not only is there too much information, but it's not all trustworthy either, and it can be difficult to tell the difference.
Length and complexity of disclosure
Lastly, disclosure is a huge issue. The more paperwork thrown at investors, with disclosure sheets and documentation, the safer that everyone is meant to feel. However, with the length of some contracts being almost outrageous, it's hardly surprising that the length and complexity if these documents has made the list.
While ASIC has attempted to help consumers in this respect, bringing in summarised home loans' key fact sheets in the past among other initiatives, it appears that there's still much confusion around this complex information.
Which of these is causing you to spin your wheels the most? What would you like to see the industry fix up?
 
MORE ARTICLES ABOUT INVESTMENT PSYCHOLOGY:
<a href="/news/the-psychology-of-hotspotting-exclusive-interview-with-ben-kingsley">The psychology of hotspotting, exclusive interview with Ben Kingsley</a>
<a href="/expert-insights/investing/the-psychology-of-achievement-do-you-have-what-it-takes">Mark Bouris: The psychology of achievement: Do you have what it takes?</a>
<a href="/news/nsw/the-market-psychology-behind-the-sydney-property-boom-pete-wargent">The market psychology behind the Sydney property boom: Pete Wargent</a>
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The five factors inhibiting every investor in today's advice-laden world

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A new variation to the Territory Plan in the ACT, commenced recently, has reduced the potential building heights proposed for some areas.
This includes land around Allawah Court, Currong Apartments and Bega Court, which Minister for the Environment and Sustainable Development, Simon Corbell, notes is now reduced to 12 storeys from the original 15 storeys, as a result of the potential negative impact on nearby residents. This is under Variation 308.
It also looks to revitalise aged public housing stock in Braddon and Reid. Much of the area under the change is occupied by public housing stock.
"This redevelopment will reduce reliance on the motor vehicle for new residents and promote the use of public transport, cycling and walking as alternative transport," he said.
"As well as higher density residential development the variation includes a requirement for a minimum of 5,800 square metres of space for community facilities to be provided on the site," he said.
"Variation 308 also contains provisions to encourage small scale community uses on the site to meet the convenience needs of residents and to ensure the street frontages are active and vibrant."
This came after much discussion in the local community over fears that the higher level residential developments could cause anti-social behaviour in public housing properties.
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Variation to ACT plan sees some areas' proposed maximum heights reduced

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“Vacancy” is not a good word for any investor looking to keep a stable cash flow and a decent tenant, and yet it seems many areas are facing rents decreasing in the capital cities, according to SQM Research, with Canberra and Perth suffering the most.
Similarly, Perth has recently had a tough run with tenants breaking leases and vacancy rates increasing - late last year, in fact, Property Observer reported that <a href="/news/perth-landlords-lower-rents-to-dissuade-potential-buyers">Perth landlords were lowering rents to dissuade tenants from leaving</a>.
<blockquote>
52% of Gen Y said they’d like to live in the inner suburbs.
</blockquote>
Realestate.com.au have released the top 10 suburbs searched online for apartment rentals over the past six months (September 2013 to February 2014) based on their internal statistics.
The top 10 list:
<ol>
<li>Brisbane (QLD) 4.7% vacancy rate (SQM Research) Daniel Argent from Urban Property in Brisbane says that the rental demand for inner Brisbane apartments is increasing.“There is definitely a high level of rental demand for inner city apartments. There are a lot of people looking for two-bedroom apartments that are close to shopping and transport. With such high demand we find that most of the properties are tenanted within two weeks of listing,” said Argent. </li>
<li>Canberra (ACT) 2.5% vacancy rate (SQM Research) </li>
<li>Perth (WA) 5.7% vacancy rate (SQM Research) <a href="https://www.realestate.com.au/property-apartment-wa-perth-412854299" target="_blank">This two bedroom, two bathroom apartment</a> is currently available to rent in Perth. Sitting on the border of East Perth and Perth, it’s available at $750 a week. </li>
<li>Melbourne (VIC) 6.2% vacancy rate (SQM Research) </li>
<li>Docklands (VIC) 5.8% vacancy rate (SQM Research) A renter could lease an apartment in <a href="https://www.realestate.com.au/property-apartment-vic-docklands-412777379" target="_blank">this Docklands complex at $400 a week</a>. Unfurnished studio apartments at Victoria Point are leasing from $315 per week. Docklands' difficult conception and towering cranes previously saw Property Observer take a deeper look at the area, expected to have attracted $17.5 billion by 2025 in private sector investment, in this <a href="/news/vic/docklands-finding-its-feet-after-a-difficult-conception">suburb spotlight</a>. </li>
<li>Southbank (VIC) 2.3% vacancy rate (SQM Research) An unfurnished <a href="https://www.realestate.com.au/property-apartment-vic-southbank-412778263" target="_blank">one bedroom apartment in the Victoria Tower</a> will set a renter back at least $405 per week. Shared facilities include a gym, tennis court, spa, sauna and pool. </li>
<li>Braddon (ACT) 1.5% vacancy rate (SQM Research) This <a href="https://www.realestate.com.au/property-townhouse-act-braddon-412841911" target="_blank">three bedroom, two bathroom townhouse in Braddon</a> is significantly more affordable, at $670 per week. </li>
<li>Nathan (QLD) 3.3% vacancy rate (SQM Research) </li>
<li>Parramatta (NSW) 2% vacancy rate (SQM Research) The booming Sydney "second CBD" suburb of Parramatta is currently seeing <a href="/expert-insights/buying/slab-to-be-set-on-highest-residential-tower-in-parramatta-v-by-crown-today">the tallest residential tower in the area, V by Crown</a>, under construction. The impressive development may just underpin the longevity of the area. </li>
<li>Chatswood (NSW) 2.8% vacancy rate (SQM Research) <a href="https://www.realestate.com.au/property-unit-nsw-chatswood-412715351" target="_blank">T</a><a href="https://www.realestate.com.au/property-unit-nsw-chatswood-412715351" target="_blank">his freshly painted and two bedder</a> in Sydney’s Chatswood is available for $525 per week. </li>
</ol>
For more data, including median prices and rents on each of these areas, you can use our free suburb data pages. 
 
Interestingly, as noted above, the vacancy rates are still high on a number of these areas - and SQM Research's Louis Christopher has since tweeted Property Observer that he has put out warnings to investors on a number of these suburbs. Docklands and Southbank, in particular, have long had a <a href="/expert-insights/buying/melbourne-residential-unit-market-oversupplied-and-its-going-to-get-worse-terry-ryder">reputation of an apartment market oversupply</a>.
The number of tenants and sharers seeking apartments rather than other types of property, both established and new, is up to 39% of the market – an increase of 7% since 2012, according to the realestate.com.au figures.
<blockquote>
The number of tenants and sharers seeking apartments is now at 39% of the market.
</blockquote>
Tenants under the age of 35, earning between $50,000 and $99,000 are those driving this trend. Within this, 52% of Gen Y said they’d like to live in the inner suburbs.
While only 6% of Gen Y tenants nominated regional suburbs as their ideal location, 15% of baby boomers preferred regional suburbs, in their 2014 Consumer Insights Report on Tenants and Sharers.
Of all tenants, 72% of Gen Y said they’d take care of the property like it was their own, with 84% of Baby Boomers citing the same. Six in 10 tenants have said they spent money to make improvements to a rental property.
The general manager of sales and operations at realestate.com.au, Arthur Charlaftis, said that the key for tenants is research and knowing the key statistics about the area, as well as the amenities and lifestyle available.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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Where do tenants want to rent? The top 10 suburbs where renters are searching for apartments

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Named after Sir George Bowen, the first governor of Queensland, Bowen Hills’ The Governor boutique apartment complex is more than 70% sold and is positioning itself as an affordable option in Queensland’s Bowen Hills.
Two kilometres from Brisbane’s CBD, on Bowen Hills’ Brookes Street, the 40-apartment complex includes 20 one-bedroom apartments and 20 two-bedroom apartments, with prices from $384,000 and $557,000 respectively. However, their advertising material suggests that those looking for a penthouse can get in for $430,000. This is the upper end of the one-bedroom price range and has a balcony.
With some boasting views of the city, and each with a maximized north-facing aspect where possible, there will also be a basement area with bicycle amenities and a rooftop lounge. Professional on-site management is also included.
The 12-level development, of which residential spans 10 with car parking on the lower two, offers car parking for the upper level one-bedroom properties and for all of the two-bedroom apartments.  The two-bedroom apartments are around 80 square metres, with one-bedroom apartments around 50 to 60 square metres.
{qtube vid:=niL7p4pHFrs}
Initially launched to the investor market through Rocket Property Group by BlueSky Alternative Thinking, the developers of the group, sales were fairly quick. Currently, 70% of the project is sold.
BlueSky also has developments underway in Townsville, Bundaberg, Brisbane and the Sunshine Coast, and managing director Keiran Foster explains in his presentation to the Rocket Property Group investors that it’s a good time to buy into the market with strength expected over the next six to 12 months.
“In the Brisbane residential market I’m seeing that sales rates are picking up, revenues are starting to move a bit stronger as well, we’re certainly not seeing a full blown property boom as yet. The properties need to be well-located, well-priced, good layouts and then you’ll get buyers looking at them,” he explained, pointing to business opportunities in Brisbane’s CBD, as well as population growth.
Located on the top of a hill in an area that he notes will not flood, evidently a concern to those in the “southern states”, he says they’re targeting the affordable end of the market and not looking to compete with developers building towers in the city.
Completion, mentioned in February, was expected within the next 18 to 20 months, around mid-2015, with expected gross rental yield around 5.5% to 6%.
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Bowen Hills, Queensland, The Governor apartments advertise $430,000 penthouse

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No doubt you're aware that when it comes to obtaning a mortgage on your property, you need to be aware of a little acronym called an 'LVR'. This isn't as complicated as the letters may suggest and, in fact, stands for loan to value ratio.
Essentially, what is what it means:
However much money your bringing into the property as a deposit is the 'value' that you're pouring into the purchase. The 'loan' aspect is how much the bank then provides to you, to bring the total of both up to 100% of the purchase price.
In practice, if you're borrowing $500,000 for a property and you have $50,000 as a deposit, you also have other funds for the other costs to get into the home, such as inspections. If you're not sure what these hidden costs are, then <a href="/news/vic/how-to-work-out-how-much-buying-a-home-costs">have a look at this quick guide</a>.
Take your deposit from the total amount of the property and you have the mortgage that you will need.
In this case, you need $450,000.
Your deposit, $50,000, works out to be 10% of the price of the property. This means that you are looking for a loan of 90%.
This 90% is your LVR.
You may sometimes see this referred to as an LTV, or 'loan To value'.
This is an important number as it determines how risky you are to the bank - who are less inclined to lend to you if you are asking for a higher LVR. Those borrowing over 80% are deemed to be in the higher risk category. It also <a href="/expert-insights/finance/how-buying-lenders-mortgage-insurance-can-allow-you-to-grow-your-property-assets-faster">determines whether you pay lenders mortgage insurance, or LMI</a>.
The more you put into the property, the less interest you will also be required to pay, and the LVR will help you determine the minimum deposit you will be able to put into the property.
The LVR also becomes important if you're looking to refinance. You will be required to leave some value in your property, and any over this can potentially be equity for future purchases, renovations or for other uses.
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What is an 'LVR'? Investment terms explained

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The Gold Coast is set to have a new central business district at Southport, which is to undergo an economic and commercial transformation.
The Deputy Premier and Minister for State Development, Infrastructure and Planning, Jeff Seeney, has put out the draft development scheme, which looks to establish the Southport Priority Development Area. This is, Seeney notes, a joint vision between the Queensland government and the local council.
Now, however, it is open for public consultation.
“Our government is committed to growing the economy of the Gold Coast and a key strategy to achieve this is building on the potential of Southport as the CBD,” Seeney said.
“We are also achieving this goal through a number of other initiatives including the Gold Coast Light Rail and investment in the Gold Coast 2018 Commonwealth Games, which will bring in an estimated $2 billion to the coast."
Southport was announced as the next CBD in October 2013, with the priority development area spanning 195 hectares of land including Southport CBD, Broadwater Parklands and some residential communities.
“Development will include opportunities for residential and non-residential development and the draft scheme was prepared by council with assistance from Economic Development Queensland," he said.
Meanwhile, Member for Southport, Rob Molhoek, said that this would be a 'coming of age' for the area.
“In the lead up to the Commonwealth Games and coincidently Southport's centenary, the declaration of this PDA ensures development and investment proposals have every chance of success," said Molhoek.
“My number one priority is to work with local business leaders to facilitate the reinvigoration of Southport as a centre for health, knowledge and business. I want to see new jobs created and opportunities maximised and this PDA will deliver that.”
The Mayor of Gold Coast City, Tom Tate, said that this CBD would be the "definitive centre".
“It has already attracted a large amount of investment and the proposed development scheme aims to attract more through a streamlined and facilitated approach to planning and development," he said.
“Southport is already a hub for commercial activities and community services, but the proposed development scheme wants to shape an appealing and active urban lifestyle for local residents as well.”
The final scheme is looking to be in place in late-2014. Those wanting to make a submission can do so until 22 May.
According to the plan, zones with high density highrise dwelling opportunities will be permitted. Highrise towers will be set above podiums or perimeter blocks, open spaces and roof terraces, and will open up some opportunities of 16-storeys plus in Precinct 2.
In Precinct 3, the Garden Residential Neighbourhood, opportunities for high density medium-rise developments will be available. This includes townhouses to medium-rise, and appears to span to a maximum of 15 storeys.
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New Southport, Gold Coast CBD plans open for comment

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The Australian Performance of Construction Index has seen the industry's contraction slow over March, with the index up 2.0 points to 46.2 over the month.
The '50 point level' is that which separates expansion from contraction in the industry and it is the third consecutive month since the industry returned to growth that the index has been below this balance level.
The Australian Industry group director - public policy, Peter Burn, said that there was a consolidation of recent gains in the houe building sector. He also noted a recovery of commercial construction.
Despite these positive shoots, a pull-back in the previously bullish apartment building sector and a decline in engineering construction kept the index sluggish.
"As is the case with the broader economy, the rebalancing of the construction sector as mining-related activity slows still has a considerable way to go," said Burn.
He pointed to hopes that momentum can be maintained in the residential construction sectors, with attention to turning to required investment in non-mining related engineering construction.
Meanwhile, Housing Industry Association chief economist Harley Dale noted that despite the positive signs at the close of 2013, it was disappointing to see a full first quarter of 2014 in negative territory.
"The detached house activity component remains expansionary, if only just, and 2014 should be a healthy year for new home building activity," said Dale.
"What the sector and broader economy needs, however, is a sustained recovery in new home building commensurate with average construction levels being considerably higher over coming decades than those achieved over the past 20 years," he said.
"The prospect of achieving this outcome would be significantly bolstered by a national taxation reform agenda which included the removal of the excessive and inefficient taxes levied on new home building."
House building did fall over the month, by 1.4 points, however it remained above the 50 mark - at 50.8, suggesting a stabilisation. Meanwhile, apartment building declined 1.0 points to 45.6 points.
Commercial construction declined by 3.4 points, to 56.5 points, with engineering construction up 5.8 points to 45.5 points.
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House building consolidating as apartment building pulls back: Australian PCI

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]

Jennifer Duke

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