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The mineral and petroleum sector in Western Australia reached a new record value of $113.8 billion during 2013, surpassing the $108 billion record 2011 number. This is a 15% increase on 2012, according to Mines and Petroleum Minister Bill Marmion. With iron ore continuing to be the most valuable export, with sales placed at $68 billion, the second most valuable commodity is currently gold. Demand from China is said to be behind a significant amount of the strength of iron ore. “Together, iron ore and gold accounted for more than $76 billion [86%] of all mineral sales in 2013,” said Marmion. “Strong demand from China, meant the iron ore sector achieved a record 556 million tonnes in exports, an increase of 16% over the previous calendar year," he said. He did, however, point to the average gold price being down 16%, contributing to a decrease of 7% in the sales value on 2012. The depreciation of the Australia dollar has helped boost the value of the exports as it countered the fall in commodity prices during the year. “The value of sales was also assisted by increases in some of the volumes of commodities sold," he said. He said that petroleum, including crude oil, condensate, LNG, natural gas and LPG (butane and propane) represented only a slight increase of 1% on the previous year. He noted that this was due to Pluto LNG coming onboard, countering falls in the sales volume and total value of crude oil and LPG. Despite the resources sector being called the "backbone" of the West Australian economy, observer Terry Ryder recently pointed to <a href="https://www.propertyobserver.com.au/hotspots/mining-town-vacancy-rates-mean-that-it-s-wise-to-wait-and-watch/2014012967431" target="_blank">signs of a struggle in some of the property industries in mining towns</a>. "One I received this week was touting two-bedroom units in Port Hedland for $715,000, claiming they would rent for $1,400 per week, provide a 10.2% return and earn up to $22,000 per year in profit - thereby providing the “perfect investment opportunity” for first-time investors," he wrote at the end of January 2014. "The promo failed to mention that Port Hedland’s vacancy rate is now above 6%, that prices have dropped by up to 10% in the past 12 months and typical yields are now around 7% (and falling)."
This was an <a href="https://www.propertyobserver.com.au/hotspots/mining-towns-could-be-2012-property-hotspots-terry-ryder/2012011153008" target="_blank">area that had been lauded as a 'hotspot' in 2012</a>, including by Ryder, and certainly saw some significant growth before the current warning signs.
<a href="/news">Karratha</a>'s story has been similarly unpleasant for those that purchased late - dropping from $850,000 to $450,000 in the space of around six months, Ryder explained. With rising vacancy rates, it's prudent for investors to wait and see on a number of these towns.
If you're considering purchasing into a mining town, read <a href="https://www.propertyobserver.com.au/hotspots/five-tips-to-make-the-right-moves-investing-in-a-mining-town-simon-pressley/2013090564813" target="_blank">these five tips from Simon Pressley to see you make the best decision possible</a>.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
                  
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jduke-EHk3XBmHkn

WA's mining sector statistics breaks records, but property markets tell a different story

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Victoria's Planning Minister, Matthew Guy, has recently announced another 50,000 lots of land to be the target for Melbourne this year, with plans to boost the construction industry in the state. Recently inviting public comment on Precinct Structure Plans for 21,000 housing lots in the southeast, Guy noted that further land would be released this year in the western and eastern corridors. He noted that every million dollars spent on housing construction creates seven full-time jobs in the building sector, and other flow-on jobs and benefits. "It is vital for the Victorian economy that our supply of land for housing  growth is strong,” Guy said. He pointed to lot prices coming down 15%, from $225,000 to $191,000 from 2010 to December 2013, which he said is driven by the strong land release policy under the government. This has seen development projects that are "competing" rise from 90 to 143 over this period. "This announcement compliments other major projects that have been  approved recently. I am pleased to be able to provide an economic boost  for Victoria and to provide increased housing affordability through  greater competition. More land supply will mean greater competition in the  marketplace, driving lower lot prices for homebuyers,"  Guy said. "Housing approvals and building activity in Victoria are at the highest  level in three years due to strong policy action by the state government,  and important strategic planning done by the Metropolitan Planning  Authority," he continued. The land target applies to the western, northern and south-eastern growth corridors, with all to be within Melbourne's urban growth boundary. No changes to this boundary are being proposed. He said that over 500 hectares of employment land will be included in the structure plans, and that Development Contribution Plans will apply to every structure plan, to provide open space, community facilities and infrastructure. Just yesterday, Property Observer reported that <a href="https://www.propertyobserver.com.au/victoria/satterley-property-group-looking-to-nearly-triple-land-sales-with-two-new-estates/2014030568192" target="_blank">developer Satterley Property Group has found the increasing competition difficult to contest with</a>. "There is a lot of competition at Doreen and there is a difficult balancing act in managing supply and demand with a lot more land been approved for development over the past few years," Jack Hoffmann, Victorian general manager for Satterley said, despite having a bullish view on expected performance this year. "Victoria has some of the best new suburbs in Australia, with  carefully-planned communities providing liveable homes for our growing  population. We are far better placed for housing growth than other states,  which keeps housing costs comparatively lower, and makes us an attractive  location for investment and business growth," he said. Another area that is on his radar for land supply in 2014 is Geelong. In addition to Melbourne's 50,000 lots, towns such as Lara have seen a significant number of lots rezoned. There have been 4,000 rezoned in Lara, and he suggested further releases in the Armstrong Creek corridor to progress the growth of Lovely Banks and Batesford South.
Late last year, Property Observer <a href="https://www.propertyobserver.com.au/victoria/exclusive-melbourne-s-potential-oversupply-the-experts-have-their-say/2013101065633" target="_blank">surveyed a number of experts, as well as polled readers, about their thoughts on a potential oversupply in the Melbourne market</a>. While many pointed to an oversupply of apartments in the inner city, there were some that expressed concerns about the number of potential land releases and unsold estates. Of the readers who took part in the poll, which specifically looked at apartments, 44.8% said that Melbourne is oversupplied, but only in the inner city. Meanwhile, 37.3% said that 'Yes' there was an apartment oversupply generally. <a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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Land lot prices in Melbourne have dropped 15% since 2010, with more room to fall

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Located at 5a-9a Silver Street, St Peters, five newly developed townhouses are available for purchase from $1.45 million upwards.
The properties, of which three-bedroom homes are available from $1.45 million, and <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-st+peters-116200003">four bedrooms from $1.6 million</a>, have been developed by PNC and each come with 2.5 bathrooms.
The Torrens title terrace homes have a northerly aspect, and are said to be designed to maximise sunlight.
Blocks range from 201 to 294 square metres, with storage, gas cooking, SMEG appliances and open designs. Each also has a garden, air conditioning, security alarms, video intercoms and double security garaging.
Joint managing director NSW project marketing for Knight Frank, and exclusive marketing and sales agent, Noel Lucas-Martinez, said that the development is indicative of the gentrification and evolution of the area.
“Located only six kilometres to the CBD and in close proximity to parks, universities and train stations, the luxurious boutique development boasts flexible floor plans to provide for additional multipurpose rooms which are perfect for today’s varied living,” said Lucas-Martinez.
Local purchasers, downsizers, empty nesters, international investors and expats are all expected to show interest in the properties.
Internal size areas range from 159 to 245 square metres, with external areas of 119 to 184 square metres.
The site is located close to bus links, the Princes Highway and shops, including fast food outlets.
There are open for inspections for the next three weeks, with the first at 11am tomorrow.
The median house price in <a target="_blank" href="/news">St Peters</a> is $860,000, with the median unit price at $529,750, with median weekly asking rent on a house at $625, and $475 for a unit. This equates to a 3.8% and 4.7% yield respectively.
It appears St Peters, and Silver Street in particular, is fast undergoing development. Recently, the owner of 68 Silver Street put in a planning application to Marrickville Council to demolish the existing house, subdivide the property into two and then build a two-storey house on each allotment. There have been a significant number of applications around this area in the past three years.
The last inner west project undertaken by PNC was three years ago with a 10 terrace home complex, located at 2 Douglas Street, Stanmore, which sold around the $1 million mark, according to 2011 records.
<a target="_blank" href="https://mce_host/jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
                        
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Streets of gold: Sydney's inner west sees new $1.45 million plus townhouse offerings

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New insurance policy data from the Queensland Building and Construction Commission has seen a 27% uptick in two years in premium policies written.
Noting that the insurance policies are a precursor of building activities due to requirements in the Act that requires insurance premiums to be paid when entering into residential construction works contracts, Minister for Housing and Public Works, Tim Mander, expects to see construction grow.
“5,544 insurance premium policies were written in January 2014, compared to 4,946 in January 2013 and 4,349 in January 2012,” Mander said.
“That’s a 12%  increase on 2013 and a 27% increase over 2012, and shows dwelling construction is heading in the right direction.”
Homeowners are covered by the premium under the Queensland Home Warranty Scheme for up to six and a half years. This could be incorrect or incomplete work and subsidence issues.
Mander said the increase is lining up with ABS data, showing a trend dwelling approval increase of 2.6% in January.
However, it isn't just construction on dwellings that shows up in the premiums, with home warranty insurance required for all builders or contractors who undertake work over the value of $3,300 for a homeowner in certain categories, making it less certain that the increase will be as pronounced as the "construction boom" suggested by Mander's release.
Premiums may include work on building a new home, related roof building, townhouse or multiple unit dwelling (no more than three storeys), but it also relates to adding to, altering, renovating or repairing a dwelling, replacing or refitting of fixtures or fittings in a kitchen or bathroom or work on an unenclosed elevated platform, deck or veranda.
Painting, swimming pools, driveways, paths or roads are not included as residential construction work. You can see <a href="https://www.qcheck.com.au/forms/Insurable-Residential-Construction-Work.pdf" target="_blank">a full list here of what is included</a>.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Expected lift in construction activity pre-empted by insurance data

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Satterley Property Group has set the bar high for themselves, looking to attain 10% market share in Melbourne with 1,000 lots per year to be sold – nearly triple their current effort.
In line with this, they are doubling the number of land estates they’re releasing onto the market with two new communities, one in Point Cook and one in Tarneit, to be launched this year. These two new estates, in Melbourne's growth corridors, join the company's existing estates in Melbourne include Coburg Hill and Doreen’s Riverstone.
Jack Hoffmann, Victorian general manager for Satterley, said that by the end of the year all four estates will be selling.
He noted that they had been slowly gaining a Melbourne foothold, but that they were looking to be more aggressive and to attain a 10% market share. This would require selling 1,000 lots per year.
At present, however, Property Observer notes that they will need to nearly triple their current efforts of around 360 lot sales per year.
Hoffman’s plan to achieve this is to focus on the much-discussed segment, and at present underrepresented in the overall market, of first home buyers.
"Buyers will be across all levels - second and third home buyers, investors - but it is the first home buyers we believe will make the difference in 2014,” said Hoffmann.
"There has been a lot of publicity about the drop in the number of first home buyers - from an average of 18.5% of all buyers down to 12.5%. We don't believe that is a long term trend and we expect first home buyers to return to normal levels in 2014.”
He noted that 20% of Satterley’s sales come from first home buyers, with affordability still being the biggest driver.
Coburg Hill, where there were a series of townhouses priced at approximately $600,000, saw the first three purchases come from first home buyers. The $79 million 20 hectare former Kodak site was purchased in 2010. The Brownfield estate (pictured below) is on the verge of selling out.
{yoogallery src=[images/stories/2014/03/06/cob]}
Riverstone and Plenty River, two estates in Doreen, were initially a 60-hecatre site and Satterley’s first foray into Melbourne four years ago. Sales at Plenty River, with 450 lots, finalized earlier this year, with Riverstone now on the market from $157,000 for land lots.
"There is a lot of competition at Doreen and there is a difficult balancing act in managing supply and demand with a lot more land been approved for development over the past few years," Hoffmann conceded.
"The low interest rates have helped sales. Employment is stable and population growth is going in the right direction. The first home buyers grant is still there for new homes, so that helps us,” he said.
The two new estates
Point Cook estate: Currently unnamed Located: Hacketts Road Total dwellings: 2,000 expected
This estate is likely to be first to hit the market, with <a href="https://www.propertyobserver.com.au/land/satterley-expands-its-victorian-landbank-with-point-cook-acquisition/2013052761674" target="_blank">Satterley having bought the 125 hectare site for $100 million from the state government</a>.
Andrew Egan, director of selling agency Biggin Scott Land, had advised earlier in 2013 the site was being offered in three parts, each between 39 and 43 hectares.
Satterley’s proposed development will create a new master planned suburb with a projected population of more than 5,000 people on Melbourne’s outskirts.
Tarneit estate: Currently unnamed Located: 990 Sayers Road Total dwellings: 850 lots expected
The site was purchased in 2010, and it was noted that some delays in development approvals have been seen. Wyndham City records show that an application for the residential subdivision was lodged in September 2012.
Across both, there has already been significant builder interest with 26 builders already on board to build display homes in both areas.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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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Satterley Property Group looking to nearly triple land sales with two new estates

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Patricia Mirawati Susilo and brother Bryan Artawaijaya Susilo, of Karawara, have been ordered to pay $17,500 and $12,000 respectively after admitting to misleading and deceptive conduct around a rent to buy scheme. They were also required to pay $8,000 in costs.
Patricia Susilo also admitted to operating as a real estate agent without a licence. The siblings were the operators of <a href="https://www.sellhouseseasy.com.au/" target="_blank">www.sellhouseseasy.com.au</a>, the logo of which can be seen below. Patricia Susilo was the sole director.
<img style="display: block; margin-left: auto; margin-right: auto;" src="/images/stories/2013/06/sellhouseseasyjune12two.jpg" alt="sellhouseseasyjune12two" height="148" width="278">
Bryan Susilo's <a href="https://au.linkedin.com/pub/bryan-susilo/5a/b2/a22" target="_blank">LinkedIn</a> refers to himself as a 'Vendor Finance Specialist (Property)' at 700 Dollar Houses.com. This was the young siblings' first venture into business, with Bryan Susilo still at school when it began - at present he is just 20 years old. In 2009, the Susilos attended a wealth creation seminar of which one of the segments related to rent to buy. They then undertook a course, which began in Sydney for five days. Their parents paid $20,000 for them to undertake this course. Promotion, sales and documentation were discussed at this course, and there was also a lawyer who did a presentation.
The Susilos said that they were taught their current sales methods at this seminar, and this was accepted in Court. They also paid $1,000 a month ongoing in mentoring fees. The business was small, with transaction details of just four properties provided, and the profit they had achieved was not substantial when the costs of operating the business were taken into account.
While it was claimed that they did not know at the time that their actions were misleading, "The Company Website Conduct was deliberate in that Ms Susilo knew that her business did not buy houses and knew that she derived fees and commissions. However, she believed, based on the course she had done, that the business did buy houses in a broader, non-technical sense of the word," according to the judgement.
"Nevertheless, given the defendants' age and inexperience, and what they had been told at seminars, their beliefs might be said to be understandable."
They did accept to know that potential buyers could not purchase properties for the amounts stated in their advertising. They sought legal advice from the lawyer who had presented at the seminars when approached by the Consumer Protection. Up until late-2013, they defended themselves believing they had a strong defence case, with the promoter of the scheme paying their legal fees. This came to an end in November 2013 and they became unrepresented. In January 2014, they made changes to their admissions.
"It is open to infer from the defendants' evidence that there is, or is likely to be, an active rent to buy industry. Some of the participants may have attended the same seminars and may be liable to engage in marketing and promotions strategies that raise questions of misleading conduct under the ACL. That engages the need for general deterrence. In any event, the object of general deterrence applies more widely," continued the judgment.
Their promotional video (below) tells potential clients to think of them as your "friendly real estate pawn shop". It notes they are active Australia-wide, not just in Western Australia.
{qtube vid:=_fjSdzySHj4}
There is also another 'About Us' video with Bryan Susilo featuring an introduction about Sell Houses Easy.
{qtube vid:=d0Zp4DPjQP4}
Ordered to pay the penalties by the Supreme Court, it was in relation to the advertising and promotion of rent to buy schemes on a number of properties in both late-2010 and early 2013, with the counsel for the Commissioner for Consumer Protection providing a number of statements that were false, deceptive or misleading.
Some of these included the following:
"Own my home": This was said to provide the wrong impression that prospective buyers could get sole or joint ownership of the homes after signing. This was not the case. They would not be the owners of the properties.
"No banks needed", "Stuff the banks - move in today": This gave the suggestion that a bank loan would not be required. There was no reasonable grounds to make this statement.
"We buy houses": Suggested the promoters could purchase properties immediately. This was not the case.
"We do not charge commission or fees”: Said to be misleading as the promoters do, in fact, get a benefit from the scheme.
"We are part of a group of real estate investors”: False statement. It currently reads the following on the still active website "We're part of a group of real estate investors who buy residential property in all areas throughout Australia! Any price, any condition!"
Similarly, numbers provided that related to the weekly cost to those potential buyers were not found to accurately reflect the true total cost to eventually own a home. Advertisements were seen online, such as on Gumtree, as well as on the listings website www.renttoownhome.com.au.
Justice Beech gave both promoters a three year injunction requiring them to not engage in rent to buy real estate transactions without a licence or without working for a licensee and not to represent that they "buy houses" unless they intend to acquire a freehold title.
They were also told not to represent that they are the owners, jointly or solely, of properties they are selling unless they are the owners, and not to represent to buyers that they can purchase without a bank loan unless there are reasonable grounds for this.
Beech told them that accurate and complete statements of the money payable by prospective buyers under the arrangement must be provided, that rent-to-buy arrangements are not immediate sales of the property and this must be disclosed and that the promoters must also disclose what revenue they will attain from the arrangement.
Anne Driscoll, Commissioner for Consumer Protection, that there is danger in buyers and vendors getting involved in complex arrangements.
“It would appear from our investigations into these rent to buy property schemes that the prospective buyers are at great risk of losing their money and sellers are locked into a fixed sale price for the duration of the contract,” Driscoll said.
“The schemes target people who are desperate and find it difficult to get finance to purchase a home as well as vendors who are having difficulty selling their homes," she said.
“Those who may be contemplating taking part in these schemes should think very carefully and get expert financial and legal advice before signing any contracts. They should treat any claims being made by promoters with scepticism and check to make sure information being provided by the promoter is accurate."
The Supreme Court supported the argument of Consumer Affairs that they were engaged in real estate transactions and should be licensed. The <a target="_blank" href="https://decisions.justice.wa.gov.au/supreme/supdcsn.nsf/judgment.xsp?documentId=0A4F904B45F9C89548257C8C001BBF99&amp;action=openDocument">full judgement is available online</a>.
Promoters of these schemes without a licence have also been given a warning that they could face prosecution and penalties if they are currently unlicensed.
The siblings had been on Driscoll's radar since October 2012 when she noted that she was particularly concerned about cases when tenants and buyers did not have sufficient resources to pay upfront option fees, with the siblings taking wedding rings and family collectables including, almost unbelievably, a <a href="https://www.propertyobserver.com.au/industry-news/wa-consumer-protection-targets-rent-to-buy-property-scheme-that-took-david-beckham-jersey-in-lieu-of-deposit/2012101557170" target="_blank">Real Madrid jersey signed by David Beckham and a Franklin Mint edition Monopoly board</a>. Patricia Susilo apparently also brokered the sale of a tenant's vehicle to raise the deposit funds for a home. They were <a href="https://www.propertyobserver.com.au/western-australia/perth-rent-to-buy-property-scheme-promoters-hit-with-injunction-ahead-of-trial-renttobuy-consumerwa/2013061362127" target="_blank">served an injunction at the time</a>.
"The proceeds from the transactions are deposited into a bank account of a real estate agent in the eastern states and then transferred to Ms Susilo's personal bank accounts in WA. I am concerned that the funds do not go into a WA trust account and there is no separate account where money is stored for future deposits in accordance with the ‘Option to Buy' agreements," Driscoll noted in 2012.
In August 2011, they had warned about No Loan Home Pty Ltd, who traded as Perth's Easyhomes WA, and the rent to buy scheme promoted by Filip Butkovic and Nikola Butkovic. They had been said to mislead clients relating to the future value of the property, potential ewuity and their ability to obtain finance.
Another vendor financing or rent to buy promoter, <a href="https://www.propertyobserver.com.au/western-australia/best-selling-property-investment-author-s-wa-seminars-banned-dept-of-commerce/2013111266316" target="_blank">Rick Otton, recently saw his seminars banned in Western Australia</a>, with Driscoll claiming that West Australian consumers are being misled by the marketing of his scheme with statements including ‘buy a house for one dollar’ and ‘profit without initial investment’, the former being part of his book title also.
He has not admitted any wrongdoing under Australian Consumer Law.
With 'We Buy Houses' and similar signs present in many areas across the states and territories of Australia, including numerous signs in Sydney's western suburbs, it will be interesting to see how whether this action will be rolled out across the board. Property Observer notes that there are a number of similar schemes operating across Western Australia.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
                           
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"We Buy Houses" claims from rent to buy promoters prompts fine

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The former administration building for the ABC at 189 Adelaide Terrace in East Perth is set to become the tallest building in the area, named ‘Concerto’ as part of development group Finbar’s Symphony City redevelopment.
Set to include 226 apartments and a five and a half storey underground car park, <a target="_blank" href="https://www.finbar.com.au/FutureDevelopments.aspx">the imposing building Concerto</a> will also feature a 25 metre lap pool, a cabana, a barbecue, a gym, a pool lounge, a games room with pool table, a theatrette, formal dining facilities, meeting rooms and a large lobby.
<img src="/images/stories/2014/03/05/east-perth-march-5-one.jpg" width="470" height="548" alt="east-perth-march-5-one">
The $220 million development, and ASX listed developer Finbar’s largest project to date, will have 38 levels – 11 levels taller than Fairlanes by Finbar, developed in 2012 on a neighbouring site.
The site currently contains the former ABC administration building and three level former sound and music studios, constructed in 1959.
The administration building will become 17 one bedroom apartments and studios. The ground floor will house a bar/café and will lead through to Concerto Tower with 209 apartments, many of which will have panoramic views of the terrace.
The former ABC sound studio building, including the Basil Kirke Studio, will be subdivided onto its own title and refurbished. Several parties have expressed interest in commercial uses for this site.
The land owner of the former ABC site, Singaporean-owned Ventrade Australia, went into a joint venture with Finbar in 2008, when the site was purchased from the ABC for $37.58 million. It is a 1.28 hectare site.
A minor town planning scheme amendment had been sought, resulting in completed 23-level Adagio, and 22-level Toccata, currently being constructed.
<img alt="east-perth-march-5-two" height="339" width="470" src="/images/stories/2014/03/05/east-perth-march-5-two.jpg">
Managing director of Finbar, Darren Pateman said that it had been a long process to deal with the sensitive issues of the site, from obtaining the scheme amendment to having a previous plan for the site rejected on heritage grounds.
“Whilst the former studios will be on a separate title to the new development, we will be working very hard to make sure that the ultimate use respects its heritage but also compliments our development plans next door and the East Perth area as a whole. We believe that this outcome is the best result for all involved and one that we will be very proud of in years to come,” said Pateman.
There will be a marketing launch in July 2014, with plans for enough sales to commence construction early next year. Completion is estimated for 2017.
Back in 2011, Property Observer reported about <a target="_blank" href="https://www.propertyobserver.com.au/developments/developer-finbar-making-an-impact-in-wa/2011102051937">Finbar making an impact on the desert in Western Australia</a>. They were then "little known" and targeting a site in Karratha. Since then, they have <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/finbar-upgrades-profit-guidance-following-strong-east-perth-apartment-sales/2012062055202">seen strong sales</a>, <a target="_blank" href="https://www.propertyobserver.com.au/developments/finbar-wins-tender-to-build-%24300m-serviced-apartment-project-in-port-hedland/2012073055776">won tenders</a> and had much success in the western state. They have previously completed 15 developments in East Perth alone.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
Photos are artistic impressions.
For the latest development listings, brought to you by Property Observer and partners, see our <a rel="nofollow" href="https://showcase.propertyobserver.com.au/">Investor Showcase</a>. 
                        
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Finbar announces tallest tower in Western Australia as East Perth ABC site redevelopment

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The new credit reporting system may actually benefit a number of consumers, with those who lower their finance costs set to be rewarded, according to Smartline Personal Mortgage Advisers.
While the changes to credit reporting have received some criticism in recent days, <a href="https://www.propertyobserver.com.au/finance/a-new-credit-scoring-system-how-it-will-affect-you/2014022768077?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=mostread" target="_blank">including from Property Observer readers</a>, Smartline’s Michael Daniels said that it’s increasing transparency and therefore more attractive terms for low risk customers.
With the changes to the Privacy Act coming into place as of March 12, the ‘negative’ credit reporting system will be no longer. More detailed information will be at the hands of credit providers. “This means they can make better informed decisions about an individual’s financial situation and the likelihood of them not meeting their obligations,” said Daniels.
“Those who are viewed as not being a strong manager of their money will most likely either find it harder to access funds and/or pay a premium in the form of higher rates.”
The main changes to be aware of:
<ul>
<li>Information about your monthly repayment conduct (i.e. whether or not you have paid on time) over the past two years can now be reported.</li>
<li>If you apply for credit, the decision (declined or approved) by the credit provider can now be reported.</li>
<li>The current limit on all of your credit cards (and other credit facilities) can now be reported. This also means that if you get a limit increase, this can now be reported on your credit record.</li>
<li>The repayment term and repayment type on all of your credit facilities can now be reported.</li>
<li>A credit provider can now also provide an opinion that you have fraudulently attempted to get credit or fraudulently evaded your obligations to repay credit, or that you do not intend to comply with your repayment obligations.</li>
<li>Credit defaults can be lodged on any outstanding amounts over $150 if you are more than 60 days behind on your repayments.</li>
</ul>
Source: Smartline 
The finance industry has been following the lead of the insurance industry when it comes to determining pricing based on risk, he said, with lower LVR borrowers able to secure better rates.
“The overall cost of credit fraud in Australia is quite high and this new system could go a long way toward reducing the cost of credit for the majority who do the right thing,” he said.
Historical information prior to March 12 will not be included.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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Credit reporting changes will actually benefit consumers: Smartline

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First home buyers have been recorded by the Australian Bureau of Statistics at their lowest levels since the data set was initially collected, and persistently low compared to the long-run average
The Real Estate Institute of Australia’s president Peter Bushby said that the latest Adelaide Bank/REIA Housing Affordability Report saw home buyers making up just 12.5% of the owner occupier market in the December 2013 quarter, compared to 13.6% for the preceding quarter.
“Following the changes to the First Home Owner Grant introduced by the Victorian government, which skew assistance away from existing dwellings (the clear preference of first home buyers), that state continued to show a fall in the number of first home buyers, down by 22.7% over the quarter and 28.1% for the year,” said Bushby.
“The report also shows the proportion of income required to meet loan repayments increased 1.0 percentage point over the quarter to 30.8%.”
Downturns in affordability were recorded in every state, other than the Northern Territory.
“The ACT remained the most affordable state or territory in which to buy a home, largely due to the high average income and NSW remained the least affordable.”
“Rental affordability improved in Victoria, Queensland, South Australia, Western Australia, the Northern Territory and the ACT but worsened in NSW and Tasmania with the proportion of median income required to meet average rent rising 0.3 and 0.9 percentage points respectively,” he said.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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First home buyers at lows never before seen by Australian Bureau of Statistics

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Investors with properties in North Queensland towns of Collinsville and Merinda have been reassured by Deputy Premier, and Minister for State Development, Infrastructure and Planning Jeff Seeney, that the urban areas in these two towns would be excluded from the Galilee Basin State Development Area.
While he wasn’t giving anything away as to if a State Development area will necessarily be declared, he did say that those who had received past notifications that they may be affected could now have their fears reduced.
Member for Burdekin, Rosemary Menkens, said that it is a relief to landholders in her electorate.
“Under a broadly proposed SDA, landholders received notification that their properties may be impacted with construction of the vital rail link to the Port of Abbot Point, however they have now been given assurances that these urban areas will be excised from the SDA if and when it is declared,” Menkens said.
“Our small towns have been struggling. They have been waiting for too long while Labor and the Greens have delayed these infrastructure projects which will bring the jobs and prosperity needed to once again breathe life into the local economy,” she said.
Seeney said that feedback from the communities, as well as further planning for the rail, had allowed broad areas of the town to be excluded.
“The proposed Galilee State Development Area is designed to facilitate the construction of rail corridors to carry coal from potential Galilee Basin mines to the Port of Abbot Point,” he said.
“Residents in these urban areas can now be assured their properties will not be affected by proposed rail lines in the future and I anticipate further refinements to the proposed State Development Area as consultation continues.”
In <a target="_blank" href="/news">Collinsville</a>, properties that are in the area encompassing the existing rail network and bound by where the Bowen Development Road crosses Pelican Creek and the foot hills of Mount Devlin will be kept out of the SDA.
In <a target="_blank" href="/news">Merinda</a>, the area between the Bruce Highway and Jackson Street adjacent to the existing rail lines will be excluded from the proposal.
jduke@propertyobserver.com.au
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North Queensland residents have property fears allayed by development clarifications

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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