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The Reserve Bank has kept rates on hold today, at a record low 2.5%. While debate rages over what might happen next, it appears many are predicting a rise in the last quarter of the year.
RP Data's Tim Lawless noted that the housing market statistics are likely to be the factor causing the Reserve Bank some additional deliberation.
"Dwelling values were up 2.3% in March taking the cumulative increase in dwelling values to 15.8% over the current growth cycle which commenced in June 2012," he said.
"While the headline growth rate is very high, it is really Australia’s two largest cities, Sydney and Melbourne, which are responsible for driving such high capital gains.  Dwelling values are up 22% and 17% across these two cities since June 2012."
He noted that it's not just these capital gains that will be a concern, but the amount of investment in the market, with investors comprising 38% of all new housing finance commitments. The last time investor numbers were this strong was before the housing boom in 2003.
"Clearly the rate of value appreciation across the Australian housing market has been unsustainably strong over the short-term, however the national economy is seeing a great deal of benefit from the increased level of both developer and buyer confidence which the RBA is likely to see as a positive outcome from the currently exuberant housing market conditions," he said, pointing to a potential increase in the future if value growth continues along its current mark.
"If value growth continues along the current trajectory through I think the Reserve Bank will be forced to take action to quell the level of exuberance via higher interest rates," he said.
This ties in with Property Observer's previously reporting an <a href="/expert-insights/finance/borrowers-warned-of-interest-rate-hikes-by-late-2014">increasing number of economists pointing to a late-2014 increase</a>.
Meanwhile, L Janusz Hooker, deputy chairman of LJ Hooker, said that leaving the cash rate at 2.5% should assist prices stabilising following a year of growth. Hooker also siad that the rate easing cycle is over.
"We have been seeing the benefits of those cuts every weekend at open inspections, people are still out house hunting or looking for investment properties," said Hooker.
"Buyers know it is likely rates will be on the increase some time in the next year and are factoring it into their budget."
Michelle Hutchison, money expert for Finder.com.au said that it's cheaper than ever to switch home loans at present, making the RBA's decision to keep rates on hold good news for consumers.
"More lenders are waiving application fees now than they were three years ago, and coupled with the banning of early exit fees on variable home loans in 2011, it's now cheaper to refinance than what borrowers may think," said Hutchison.
"The average cost to switch now out of variable loans that charge these fees is $719 compared to almost $900 in 2011," she said, noting that borrowers shouldn't wait for any further cuts from the Reserve Bank before seeking out a better deal.
The lack of change today was <a href="/expert-insights/finance/paul-bloxham-expects-rba-to-keep-rates-on-hold-next-week">also predicted by HSBC's Paul Bloxham last week</a>.
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jduke-EHk3XBmHkn

Reserve bank holds interest rates, but property prices make an increase likely

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A South West Sydney development has been given the Urban Development Institute of Australia’s Australian Residential Development of the Year 2014 award.
The winner, <a href="https://www.harringtongrove.com.au" target="_blank">Harrington Grove</a>, is a low-density residential development in Camden Council area that includes lots from 700 square metres to 1,000 square metres in size in a bushland setting.
Amenities were included for residents, such as Harrington Grove Country Club, two swimming pools, four tennis courts, a gym, barbecue areas, playgrounds, an outdoor amphitheatre and a cycleway network. There are also many events created by a Community Liaison Team.
Property Observer notes that this is largely delivered through a fun online noticeboard, called Grove Life, that provides residents information about dog etiquette, gym days and events. In 2013 there was a particularly heartwrenching incidence where a resident’s son started treatment for Neuroblastoma. The community got behind the resident assisting with cutting grass, cleaning and cooking.
<img src="/images/2014/04/01/harrington-grove-aug-30-two.jpg" alt="">
Managing director for Harrington Estates, Terry Goldacre, said that the residents are at the centre of their developments, and that they were humbled to receive the award.
“With the help and cooperation of Camden Council, NSW government, local MP Chris Patterson and Mayor Lara Symkowiak, we have laid the foundations for an exceptional community and believe that Harrington Grove truly is the best place to call home,” he said.
The judges were said to be impressed by the holistic approach and respect for the natural environment, as well as the attention to detain, restoration of the bushland and creek lines and integration with residential precincts.
The award is now proudly presented as a pop up banner on the front of their stylish black-and-gold coloured website.
The development <a href="/news/harrington-grove-scores-top-marks-at-udia-residential-development-awards">previously received the state award for the development</a>.
Harrington Park was acquired by Sir Warwick Oswald Fairfax in 1944. He dreamed of turning it into an exclusive, private estate but did not live to see its realisation. His wife, Lady Mary Fairfax, then took over the development of the suburb.
For the latest development listings, brought to you by Property Observer and partners, see our <a href="https://showcase.propertyobserver.com.au/" rel="nofollow">INVESTOR SHOWCASE</a>. 
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South-western Sydney development crowned “Australian Residential Development of the Year”

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When it comes to renovations, particularly those that are substantial, you’ll want to avoid irritating the neighbours with noise and activity and protect your renovation project.
First things first – the Victorian Building Authority is pointing to knowing the boundaries of your property. A very important step that has seen many an unwary investor push the boundaries of legality, pun intended.
The VBA’s chief executive officer, Prue Digby, said that if you build over your boundary then this is technically trespassing.
“Encroachment could result in the adjacent land owner taking the property owner to court to seek to have the encroachment removed,” Digby said, pointing to an confusion surrounding the legislation.
Apparently, some believe that Section 272 of the Property Law Act 1958 allows a 50 millimetre or a 1/500 tolerance for encroachment over title boundary. This is not aimed at this situation, and instead is solely for discrepancy claims over title appearing on documentation, for instance on a subdivision plan. This will not stand for those building on land they do not own. The site is determined using ‘on-ground’ measurements.
“Given the potential outcomes of an encroachment over the title boundary, the VBA recommends getting a licensed land surveyor to carry out a re-establishment survey before beginning any building work on the boundary,” she said.
However, it isn’t just building on their land that frustrates neighbours, although that’s a surefire way to put them offside, but also many renovators’ lack of understanding surrounding their neighbours’ rights.
Inappropriate development and nuisance from neighbours’ building work are covered under rights in Victorian and local council laws, and investors would do well to understand them early.
If you’re looking to build or renovate, there are a number of things that you can do ahead of time.
Let your neighbours know early that you intend to do work.
<ol>
<li>Discuss any concerns around noise with them, times of day and length of time of the work. 
</li>
<li>Make sure your builder displays a sign on the site, showing the details of the building surveyor, builder and permit. 
</li>
<li>Ensure you have checked if any work needs to be done to protect neighbouring properties from damage. Let them know that you have done this. 
</li>
<li>Discuss a process with your neighbours in advance if they are unhappy – let yourself be their first contact to see if you can sort out issues early. 
</li>
<li>Ask your builders to keep the site as clean as possible, and ensure they comply with legal times of the day in which to do noisy work. 
</li>
<li>Consider providing thank you notes or some sort of small gift to your neighbours for their tolerance. Small, thoughtful things can go a long way.</li>
</ol>
If you’re a neighbour or own an investment property nearby then there are also steps you can take – some of which may keep your tenant happy.
<ol>
<li>During planning process, view the permit documents relating to the work. These should be accessible via council. 
</li>
<li>If your neighbour needs to carry out work to protect your property, you should be notified. Don’t be afraid to ask. 
</li>
<li>Laws are in place to protect you from unsafe footpaths, roads and building sites during construction work. 
</li>
<li>Contact the building surveyor in writing if you are concerned after your research. You can also contact the local council.</li>
</ol>
(Victorian Building Authority)
“Keeping your neighbours informed about your building and renovations can help avoid problems before, during and after you’ve built,” said Digby.
Sometimes, neighbours are required to be happy about the project to enable a permit to be given, and providing details to them in person can help push your case. Complaints to council can prompt an inspection of your work.
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Six ways to renovate and not anger the neighbours

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You’ve done your research, your due diligence and you’ve found the property you want to buy. Now what? It’s time to submit an offer on the property. This can be a nerve wracking part of the process as you wait to see how much competition you face and just how much the vendor is likely to sell for. However, in most states and territories, it’s a relatively simple process.
If you’re interested in negotiation, you may want to read our guide: <a href="/expert-insights/how-to-negotiate-the-property-price-you-want">How to negotiate the property price you want</a>.
Offers can be as informal as a verbal price suggestion, or as formal as a signed contract with conditions and details attached. The approach is, largely, up to you. In Queensland, written offers are pushed for and are most common. Written offers must be presented to the seller unless it is below a pre-determined value and can be useful starting points for sellers and buyers. Similarly, they offer a degree of formality beyond a verbal agreement, which cannot be relied upon.
An expression of interest may see you required to pay an initial deposit, as this proves that your offer is serious. This doesn’t, however, ensure you have the property nor that it will even get taken down from being listed. The deposit will be refunded if you don’t enter a contract to buy the home.
When an offer is accepted, you need to be ready to sign the contract of sale and go through the buying process. Before this time there is the risk of being gazumped by another buyer - that is when the vendor accepts another offer even with a verbal agreement to buy the home.
Unconditional and conditional offers
Offers can be presented similarly to the below, which is an example of a conditional offer:
We would like to make a formal offer of $X to the vendor for the property [address]. This is subject to the following conditions.
[Legal review of the contract, property valuation, inspections, finance similar]
Potential time limit for the offer.
Unconditional offers can also be made that don’t provide the ability for you to leave the offer should termite damage or similar be found. These can be enticing for vendors, and you will be legally required to go through with the process. You may be more familiar with these a auction. Buyers are most likely to add conditions around inspections and their own financing.
You can offer multiple offers at any one time – perhaps one for a lower price unconditional, and one for a higher price requesting access.
Where to now? Here observer <a href="/expert-insights/investing/the-eight-steps-a-property-buyer-takes-after-an-offer-is-accepted">Cameron McEvoy explains the eight steps that every buyer takes after submitting an offer</a>.
Recommended step: Get a copy of the sale contract from the real estate agent prior to time and have it examined by your conveyancer.
RECOMMENDED READING:
<a href="/news/how-to-get-your-low-offer-accepted">How to get your low offer accepted</a>
<a href="/expert-insights/investing/be-cautious-when-making-your-first-offer-on-a-property-or-negotiations-could-end-before-they-begin">Caution you need to take when making an offer</a>
<a href="/expert-insights/buying/five-questions-to-ask-before-making-an-offer-on-property">Five questions to ask before making that offer</a>
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How to: Make an offer on a property

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By the end of the year borrowers will be facing higher interest rates and higher resulting costs, Finder.com.au is warning.
While a recently survey of economists and banking experts predicts the Reserve Bank will keep the cash rate on hold tomorrow, almost half of the 11 surveyed expect the rate to rise in the last quarter of the year.
Those who tipped an increase suggested that the rise might be on Melbourne Cup Day, with experts from Commonwealth Bank, Commsec, HSBC, ING Direct and St George Bank agreeing with a late-year increase forecast.
Money expert at Finder.com.au Michelle Hutchison, said investors should plan now.
“If the official cash rate does increase by the end of the year, it’s likely that we will see home loan interest rates start creeping up before then,” she said.
“So if you’re an existing borrower, it’s a good idea to review your budget and factor in higher costs now, before interest rates rise.”
Hutchison reminded those looking to buy to factor in a buffer for if interest rates do increase.
“It’s great to see that borrowers are confident during this time of stability and are taking advantage of low interest rates by jumping on the property ladder or refinancing their home loan. Despite the finder.com.au survey showing rates aren’t likely to move until at least the end of the year, now is the time to plan for a rate rise,” she said.
The recommended buffer to factor in is for two percentage points in upwards movements, or for a $300,000 loan – an extra $400 per month.
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Borrowers warned of interest rate hikes by late-2014

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Like many topics surrounding tax, depreciation discussions are interlaced with myth and truth. As properties get older, as do their contents, they depreciate in value.
While this doesn’t necessarily point to a drop in capital growth, it does match up well with wear and tear and age, and as such the ATO allows investors to claim a deduction on the building aspect, as well as the ‘plant and equipment’ within. A quick trick to determine plants and equipment is to imagine the property being picked up and shaken. If it falls off, then it is in this category.
Deductions equate to tax reductions for you, and can assist in reducing your holding costs legally.
However, there are four things you need to know about depreciation.
<ol>
<li>
It is an ‘on paper’ cost, but this doesn’t mean you shouldn’t take the cost seriously When claiming the deduction from the ATO for tax depreciation, you’ll find that while they’re calling it a ‘cost’ – nothing came from your pocket. This ‘on paper’ cost may not have yet cost you, but don’t consider it free money. There’s a reason that the ATO provides funds for depreciation – and that’s because at some point you’re likely required to replace the plants and equipment and undertake repairs. Many property managers recommend that investors actually use the depreciation guideline to get an understanding of when they’ll likely need to re-carpet, or replace appliances. Get a hold on the ATO’s ‘life’ expectation for what is installed and prepare yourself to spend this money to get your property back into good condition. 
</li>
<li>
You can claim depreciation benefits on things you throw out This is a little-known aspect of depreciation called ‘scrapping’. If renovating or altering a property, it’s likely you’ll throw some things out. If you decide to remove the carpet, or light fittings or any other aspect, keep records and provide them to a quantity surveyor. They should be able to add these into your depreciation schedule for a return from the tax office. Expect to receive a 100% deduction on the residual value of what has been thrown away. 
</li>
<li>
Older properties likely still have depreciable items While knowledge around depreciation is growing, there are still some who do not think older properties can achieve a substantial depreciation benefit. This is not true. If you have not been claiming your tax deduction, you can get your previous returns adjusted. Many quantity surveyors will not charge you if the amount they manage to claim you back doesn’t cover their bill. If you have a property that has been renovated in some way, or extended, even if you were not the person to undertake these improvements then you will find there are extra depreciation benefits here too. You may not even realize that something has been updated within the property, such as hidden items e.g. plumbing, re-wiring or bathrooms that are dated but newer than the property itself. 
</li>
<li>
There are two ways of calculating depreciation There are actually two ways to calculate depreciation. These are the following methods: Diminishing value Prime cost Investors can choose what suits them most. Diminishing value calculates the deduction as a percentage of the balance left to deduct, while the prime cost calculates a percentage of the cost for each year calculated. Essentially, diminishing value allows investors to access more in the first five to 10 years of ownership. If you are requiring more funds, or looking to sell in the short-term, then you might consider this method. However, prime cost provides a steady amount of depreciation year-in, year-out. This may suit those holding for longer or who prefer a fairly certain return each year.</li>
</ol>
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Depreciation: The four things you should know

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Eq. Tower is coming to Melbourne’s northern precinct and boasts karaoke facilities and a mahjong, poker and billiards room.
The <a href="https://www.eqtower.com.au/" target="_blank">Eq. Tower</a> development, a joint venture between ICD Property and Sino-Ocean Land, is an Elenberg Fraser designed residential creation on 62 levels, that looks to have a ‘luxury hotel’ appeal.
One cannot help but imagine that with the karaoke/mahjong blend of attractions there is likely to be a marketing effort to overseas buyers.
The tower will contain 632 one, two and three bedroom apartments with views of the city skyline.
One bedroom apartments, from 40 to 54 square metres, start from $359,000, with two-bedroom apartments spanning 53 to 71 square metres from $489,000. Three bedroom penthouses, at 81 square metres, start from $891,000.
The tower will include laneway-level shops and cafes, to complete the link between Melbourne Central and the Queen Victoria Market.
The lobby will include high-ceilings and mirrored wall paneling.
Communal facilities, beginning on level seven, includes an outdoor area with 25-metre pool, spa and sauna, and grassed relaxation areas. Similarly, inside, there will be an indoor gym, private cinema, communal kitchen and dining room, lounge and karaoke suites.
On level 33, a ‘sky-high’ club will be created with a private dining room seating up to 20 guests, a games room with a billiards, poker and mahjong table, and a lounge. All these facilities can be booked on each resident’s smart phone.
Michael Mai, managing director of ICD Property, said that the tower would be a strong sense of community and integrated vertical living.
“Elenberg Fraser has succeeded in bringing this vision to life and so we present Eq. Tower as the future of Melbourne living where residents can enjoy just as many experiences within their own apartment building as outside of it,” he said.
Estimated completion is in October 2017.
For the latest development listings, brought to you by Property Observer and partners, see our <a href="https://showcase.propertyobserver.com.au/" rel="nofollow">INVESTOR SHOWCASE</a>. 
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Karaoke, mahjong and poker all features of new Eq. Tower in Melbourne

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Property owners with swimming pools in the homes have secured more time to ensure their pools and spas are compliant, with the Real Estate Institute of New South Wales having worked with the government to extend out the deadline.
Investors looking to sell or lease their property will require the swimming pool to have a certificate of compliance, announced the New South Wales Office of Local Government, however now the commencement date is 29 April 2015. Previously, this had been April 2014. “Real estate industry representatives want more time to ensure properties with a pool are compliant before selling or leasing,” explained the Office of Local Government’s chief executive, Ross Woodward.
“Council officer feedback indicates that high inspection failure rates mean that it is not uncommon for it to take three months from first inspection to the issuing of a compliance certificate.”
The REINSW CEO, Tim McKibbin, said that they sought a deferral from the minister earlier in 2014 to help avoid adverse consequences for those properties caught up in the legislation. He noted that there’s an inadequate number of existing qualified inspectors, which made the transition period extension appropriate. “With some 300,000 pools and spas across the state, REINSW suggested that some transitional procedures be implemented as part of the commencement of the obligation,” he said.
This certificate must now be attached to the contract of sale. It includes all private houses, townhouses, units, strata and community schemes, moveable dwellings, hotels, motels, serviced apartments, backpackers’ accommodation, homestay, farm stay, bed and breakfast and other tourist and visitor accommodation. It excludes camping grounds, caravan parks and eco-tourist facilities.
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NSW pool compliance deadline: REINSW secures investors an extension

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This weekend past, Property Observer attended an auction in an inner-city Sydney suburb with Just Think Real Estate’s Edwin Almeida where there was a potential case of underquoting. However, the auction prompted more questions than it answered.
The facts
The vendor had received an offer of $1.46 million in a previous campaign. The vendor refused this offer and went to auction through another agency. The price guide provided by the agent was $1.2 million. At auction on Saturday, the home sold for $1.415 million, with a reserve close to $1.4 million. A neighbour at the auction confirmed to Property Observer that it had been bought by a next door neighbour.
This prompted a number of questions on the day – is auction really the best selling method in Sydney’s current market? Was this a case of underquoting, and if so – why did it fail?
Firstly, we note that some prospective buyers and bystanders were disgruntled at the auction – one suggesting that the four-bedroom property had actually been mistakenly advertised as a two-bedroom in the local paper. This has, as of yet, remained unconfirmed and it is hard to gauge whether this would have had a material effect on the outcome of the auction.
It is also notable that many of the attendees of this auction were extremely savvy – debating the finer points of the property’s value and the market’s dynamics. In fact, there were multiple investors in attendance – one of whom had four properties in the area to his name. Buyers, it seems, had largely ignored the price guide provided and were thoroughly prepared for the property to sell around $1.4 million, if not more. This is not always the case and there has been many an auction, usually in lower priced areas with more first timers, where home buyers head in excited and come away unhappy at watching the price soar over what is acceptable.
Edwin Almeida shares his thoughts on what this auction means for property investors, and for the industry:
Bad auctioning habits and the law
Bad habits are hard to break. When it comes to underquoting in an industry that for over a year has been living of the emotions of buyers, it may be a little harder to break this habit. Unfortunately for the vendors, agents that persist on adopting this method of marketing may soon find themselves in the court rooms of justice, but for now, they are just simply losing credibility and money, both as agents and vendors.
The price guide presented to the general public throughout the campaign was $1,200,000 and the property sold for $1,415,000. A big difference.
Surprisingly, the purchaser was a neighbour. A local had previously offered $1,400,000,part of a long-term plan to obtain rear access to another property.
However, regardless of the outcome, there is much wrong with underquoting; how many buyers engaged lawyers and pest and building inspectors on the premise of the quoted price guide? When you think of one individual, it would only add to a couple thousand dollars. But when you talk about five or 10 groups doing the same, the numbers add up. There needs to be a conscientious decision made by the real estate industry collectively. We need to disengage from the practice of underquoting as the financial burden is in the area of hundreds of thousands of dollars each weekend, across the community.  
Signs of the times
In a personal discussion with Tom Panos and following his tweets, Tom is also suggesting that the “hot, hot, hot property” days are over in most areas of Sydney and vendors expectations are set too high. 
<blockquote>
The “hot, hot, hot property” days are over in most areas of Sydney and vendors expectations are set too high.
</blockquote>
Again, bad habits die hard. Time will level this out, but it will take some time. More and more buyers on the other hand are engaging “property advocates” to attend auctions. The free internet tools available and readily accessible means buyers are more savvy and we may have reached that tipping point. Less emotion needs to be involved at higher price ranges, as more risk is taken. An interesting dynamic to witness, as properties are more and more distant from the owner occupier’s grasp.
Private treaty v auction campaigns
Then there is the emergence or maybe the resurrection of “sale by private treaty”. As more buyers become savvy, the talents and value for money vendors want from agents is truly admired on this level. Besides, “anyone can sell in a hot market, all you need to do is place a sign with a number outside your home and some internet advertising and the home will sell,” John McGrath stated on 2UE recently. 
You don’t need an agent to give your home away or sell in a hot market, you need the agent to prepare the property, market the property and achieve that extra 10 to 15% more than what most agents tend to obtain.
The art of selling real estate is truly witnessed when at private treaty the agents achieve more than at auction and even when the auction campaigns are witnessed, not in a hot market place but in a stable market and on a property market downturn. For the property in question, a written offer was knocked back under private treaty for $1,460,000 and five weeks later sold at auction for $1,415,000. In Greystanes, a suburb in Sydney’s west, a property was sold late last year for $765,000 under private treaty after the previous agent, only four weeks prior, passed the property in at $710,000.
I have since spoken to the buyer of the home and when asked how he felt about the auction, he replied with words to the effect: “There was no real science in the approach I took. I own the home next door and a few others properties in the area. I knew the property would never sell for the guide given by the agent. My valuations came in between $1,300,000 and $1,500,000 when I was applying for pre-approval. So I set my figure based on this and not what the agent was spruiking. I was prepared to pay $1,400,000. Lucky me, as I knew an offer of $1,460,000 had been made previously, and was rejected.”
{qtube vid:=q_nAT_bW1TM}
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Agent underquoting will not always help sellers get the price they want

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ASIC has issued a permanent ban to West Australian former accountant Arden Rodrick Wittensleger, 44, of Menora, disallowing him from providing financial services and engaging in credit activity.
Wittensleger was investigated by the Western Australia Police and subsequently found guilty of submitting fraudulent loan applications, which resulted in a benefit of $6.5 million.
He was convicted on 23 August 2013, on 86 counts of gaining a benefit by fraud, and in October 2013 was sentenced to an eight-year imprisonment term.
The West Australian previously reported that he submitted 86 fraudulent fee-funding loan applications between 2009 and 2010. This was to short-term provider Hunter Premium Funding. They noted that of the $6.5 million involved, more than $2.5 million remains missing. These were business loans.
ASIC noted a persistent pattern of deception to gain a financial advantage, with commissioner Greg Tanzer noting that the functions and duties of a person providing financial services and engaging in credit activity require honesty and integrity of a high standard. “Those who engage in serious, repeated fraud have no place in the financial services industry,” he said.
Wittensleger has the right to appeal to tribunal for a review. Mr Wittensleger has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
In 1994, Wittensleger was also found to have been soliciting funds from clients for the purpose of share and property deals through a separate company who did not look into his dealings. The company, Personal &amp; Business Financial Planning Pty Ltd had provided authority to Wittensleger to act as a representative between 1993 and 1995.
His business collapsed in 1995, owing debts of more than $700,000. He advised a number of clients to pay funds directly to himself, which he then misappropriated or used for failed investments. He was then sentenced to four years in prison in September 1996. At this time, 36 people had lost money.
The company said they didn’t know what he was doing, and so did not accept responsibility.
“Securities dealers and advisers have a high responsibility to know what their representatives are doing. Personal &amp; Business, as a Victorian-based company, should never have appointed a Western Australian representative if it was not able to oversee his activities,” ASIC WA Regional Commissioner Jamie Ogilvie said at the time.
More recently, Wittensleger was involved in a development application to the City of Swan under, now liquidated, Nirranda Pty Ltd, of which he was director.
He had also sat on the Surveys QA board, a company that picked up clients of telephone marketing campaigner Vocon who were placed in liquidiation in 2004 with debt levels at more than $2 million. There were plans to investigate this situation in 2004, particularly as another call centre he was involved in, called AWDM, had also ended up in liquidation previously in 2003.
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ASIC bans former accountant with long history of dodgy property and share deals

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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