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A $16.5 million development site in Brisbane’s Newstead, at the Gasworks riverside masterplanned community, has been purchased by Tom Dooley Developments.
The <a target="_blank" href="/news">Newstead</a> site has been bought as part of the shopping and restaurant precinct and fronts <a target="_blank" href="https://www.tdd.com.au">Skyring Terrace at 30 Festival Place</a>. 
The intention is for a 25 storey mixed-use development, and planning is currently “well underway” according to managing director Tom Dooley.
“With its beautiful Parklands, great public transport, river access and the CBD less than two kilometres away, Gasworks is a true work, play, live, shop destination,” said Dooley.
<a target="_blank" href="https://thegasworks.com.au/masterplan/masterplan">The masterplanned site</a><a href="https://thegasworks.com.au/masterplan/masterplan"></a> is marking a “natural progression” from the shopping precinct, which includes a Woolworths and a number of other retailers, he said. This will be ‘Tower B’ on the masterplan, with proposed one, two and three bedroom apartments.
<img src="/images/stories/2014/03/03/6.jpg" width="470" height="295" alt="6">
Newstead's median unit price is $625,000, with $533 per week median advertised asking rent, according to RP Data.
“We are hoping to go to the market in May with a range of high quality apartment product and we expect massive interest as not only will these luxury apartments be high quality with everything at your fingertips but the views will be sensational.”
Aquila and Pietra are also in the Dooley portfolio, meanwhile the company has also <a target="_blank" href="https://www.propertyobserver.com.au/residential/tom-dooley-returns-to-kangaroo-point-with-fourth-residential-project/2013041660422">been a significant player in the Kangaroo Point market</a>.
Currently within the entire 6.4 hectare masterplanned development, Longlands Towers was the first residential precinct with 226 one, two and three bedroom apartments, with swimming pools gardens and terraces.
Online marketing material likens this community to Sydney’s Darling Harbour and Melbourne’s Docklands, transforming a former industrial precinct into an urban community.
The apartments within Gasworks are being marketed to both investors and owner occupiers, citing strong growth in the area. They point to a ten-year average annual price growth for <a target="_blank" href="/news">New Farm</a>, Newstead and <a target="_blank" href="/news">Teneriffe</a> of 11.7% from 2001 to 2011, which was higher than other Inner Brisbane suburbs. However, they also pointed to significant amounts of supply - currently, an average of 7,250 apartments sold each year in Inner Brisbane, with an expectation of doubling this figure over the next four years.
jduke@propertyobserver.com.au
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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jduke-EHk3XBmHkn

Newstead, Queensland site for 25-storey development sells for $16.5 million

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New Queensland legislation has caused a rift between the Real Estate Institute of New South Wales and the Real Estate Institute of Queensland to appear as they argue through the potential banning of auction price guides.
Much discussed in the media over the past few weeks, the banning of price guides under the new legislation has seen<a href="https://www.propertyobserver.com.au/queensland/queensland-auction-price-guide-ban-defies-common-sense-john-mcgrath/2014022367953" target="_blank"> John McGrath referring to it as “dark days”, taking out full page advertisements in Queensland newspapers</a> to argue against the change.
The changes, which are said to stop price guides from being provided or discussed with potential buyers, to stop buyers from being able to search auctioned properties online by price and for property reporters not to be able to mention price guides or estimations in their editorial, were slammed by McGrath. It has even had <a href="/news">some news outlets calling it a breach of freedom of speech</a>.
The legislation for the Property Occupations Bill and the Agents Financial Administration Bill 2013 is currently before Parliament.
On Friday, the Real Estate Institute of New South Wales (REINSW) released a statement calling for Queenslanders and those looking to invest in the state to immediately voice their concerns over the proposed legislation. REINSW president Malcolm Gunning said that this potential ban on auction price guides would cause havoc. “It is a step backward for consumers. Now more than ever buyers are demanding transparency in regard to property. To take away price guidelines will turn back the clock on Queensland real estate,” Gunning said.
They also included comments from McGrath Estate Agents chief executive John McGrath, who is an REINSW member, as he called the potential changes “insanity”. “There is no logical reason why this should happen. The new legislation would effectively act to ban the agent, buyer and seller from holding a conversation in regard to price,” McGrath said. “It will not solve the issue of underquoting and will prevent buyers from other states and internationally from looking at the Queensland market.”
He said that web searches would become useless, with thousands of auction listings appearing in “random order”. They called for consumers to write to <a href="mailto:attorney@ministerial.qld.gov.au" target="_blank">Attorney-General of Queensland, Jarrod Bleijie</a>.
Despite the REINSW’ view, the Real Estate Institute of Queensland (REIQ) were providing a quite opposite message.
Discussing ‘factually incorrect statements recently made in the media’ about the proposed changes, they agreed that under the new bill the use of price guides and disclosure of reserve prices in Queensland auctions would be prohibited.
However, CEO of REIQ, Anton Kardash, said that the absence of these price guides is standard in Queensland, despite the uproar.
“Currently in Queensland, it is common practice for real estate agents to market an auction property with no price guide or likely sale price indication. In fact, the proposed new laws simply seek to clarify existing laws which many in the real estate industry consider to be consistent with the proposed provisions,” said Kardash.
“Indeed, auctions are not unique to real estate. Art, horses and motor vehicles, to name but a few, are regularly auctioned without a fixed price or a price guide because that is the very nature of auctions. The market will decide on the day of auction what it is prepared to pay for that particular asset.”
He also hit back against comments that new laws would stop allowing an agent representing a property to make a comment on the price. He said that under the proposed laws, they would be permitted to provide a comparative market analysis or a written explanation of the property’s estimated price.
However, this must have been prepared by the agent or auctioneer, given to the seller, consented to by the seller, and then passed on to the public.
He also said that if sellers want to market their property with a price or price guide, then they should use a private treaty method instead.
“It should also be highlighted that if a seller wishes to market a property with a price or using a price guide, they may do so by instructing their agent to sell via the much more popular private treaty method,” he said.
He also noted that auctions are a small segment of the Queensland sales market, and that where auction price guides are permitted, such as in New South Wales, there are said to be problems with underquoting or price baiting.
“We all know that by advertising a price guide or giving an indication of the reserve price, an expectation may be set at a level that is too high or too low and this may impact on the outcome of the auction,” he said.
“It is with great pride that Queensland can say that it has largely avoided claims of misleading and deceptive conduct in relation to property price guides. Unlike in some other states where such complaints are rife, Queensland has not been subject to constant complaints of such a nature and will continue to prevent any future issues with the passing of this legislation.”
The Real Estate Buyers Agents Association of Australia (REBAA) has recently spoken out against the proposed ban on price guides, saying it will expose buyers to the risk of overpaying.
Queensland spokersperson for REBAA, Scott McGeever, said that buyers would be forced to spend a considerable sum to undertake due diligence on every property they had some interest in.
“A ban on giving a price range for properties going to auction will seriously disadvantage buyers,” said McGeever.
“More than ever before, buyers will need to do their research thoroughly and ensure they get their building and pest inspections done, engage solicitors to look over contracts and get bank valuations,” he said.
He pointed to an alternative being to get agents to provide recent sales, but said it is “fraught with danger” due to sales not always being directly comparable and their ability to be manipulated.
“In what is the biggest transaction most people ever make, the buyer is totally unrepresented and will now be relying totally on the selling agent to make their offer price,” he said.
“To remove the only guides available to them seems nonsensical.”
A <a href="https://www.propertyobserver.com.au/news/should-reserve-prices-be-published-for-auctions/2014022768076" target="_blank">recent poll of Property Observer readers</a> (results below) saw the vast majority, 84.5%, looking to have reserve prices published across the country. 
<img alt="poll-results-march-3" src="/images/stories/2014/03/03/poll-results-march-3.png" height="111" width="470"> 
It is Property Observer's view that the more information provided to those looking to buy and sell in the real estate industry the better.
There is currently <a target="_blank" href="https://www.change.org/en-AU/petitions/jarrod-bleije-mp-amend-proposed-legislation-aimed-at-banning-price-guides-on-properties-going-to-auction-in-qld?recruiter=83952376&amp;utm_campaign=signature_receipt&amp;utm_medium=email&amp;utm_source=share_petition">an online petition to amend the proposed legislation that has reached 1,000 signatures</a>, with signatories claiming it will cause a further loss of transparency and that it is an illogical move.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
                  
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Real Estate Institutes go head-to-head over Queensland auction price guide debate

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When you are buying a new property, a building and pest inspection can go a long way towards saving you a fortune. Be it hidden termite damage that would cost you tens of thousands to fix, asbestos you didn’t know was lurking or structural damage that makes the building unsound – there are many issues that a good building and pest inspector should be able to find.
However, in order to get the most out of one of these reports, you’ll need to find the best expert to undertake it.
Having one of these pre-purchase inspection reports from an independent expert is a great tool for you – both for your peace of mind, and for <a target="_blank" href="/news">negotiating the price down should any issues arise</a>. It can also be <a target="_blank" href="https://www.propertyobserver.com.au/victoria/building-and-pest-inspections-as-a-condition/2013100465497">set as a condition to help you wriggle out of the sale</a> should the property not be as it appears, providing a form of safety net.
You can get these two reports undertaken separately, however they are often offered more cheaply when bundled together and can save you the time and effort of getting two separate inspections undertaken.
If you’re unsure about whether you should get one of these inspections, then <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-importance-of-building-inspections-in-property-transactions-tim-mansfield/2012052054762">Tim Mansfield explains why he sees it as a crucial step</a> for every home buyer. Even new properties can benefit from a building inspection that can identify if any corners have been cut or if the builder didn’t come up to scratch.
Here's a useful guide on how to find the best building and pest inspector for your situation.
The absolute basic requirements
The expert you choose must be qualified – such as being a licensed builder, surveyor or architect, <a target="_blank" href="https://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Buying_property/Property_inspections.page">warns Fair Trading</a>. Do not be afraid to ask them for their licence details.
They should ensure that their format and content complies with the Australian Standard (AS 4349.1), and they should have insurance – such as professional indemnity.This professional indemnity provides you protection later on if you deem that they have been negligent and want to take action. Initial considerations Ask them: About their background, and how they trained to move into this field. How long have they been working as a building and pest inspector? About the tools that they will use on-site: Moisture detectors are common, thermal imaging devices are less-so, while a laser level and sounding devices are in most building and pest inspectors’ kits. If you’re unsure, ask them what each does and what it checks for. You’ll quickly discover what is and isn’t necessary in your area. What geographical area they cover, and what the common issues are in your area. Some of their experiences picking out issues in properties - asking for this qualitative information will help you identify how well they know their profession. How long do they tend to take on each inspection?
Get a copy of their report so you can see how comprehensive they are with their inspections. Here is <a target="_blank" href="https://www.reportsdirect.com.au/documents/Sample-BUILDING-INSPECTION-REPORT.pdf">a</a><a target="_blank" href="https://www.reportsdirect.com.au/documents/Sample-BUILDING-INSPECTION-REPORT.pdf">n example of one company’s report</a>.  If you’re looking to find areas with which to negotiate the property down in value, the more comprehensive these reports are, the more to your advantage. However, you may find yourself concerned when a number of issues are brought up. Here is <a target="_blank" href="https://www.propertyobserver.com.au/renovating/how-to-read-between-the-lines-of-a-pest-and-building-report-jo-chivers/2012040454169">Jo Chivers’ guide to “reading between the lines”</a> of a building and pest report so that you don’t get too worried and lose a good opportunity. <a href="https://www.propertyobserver.com.au/renovating/how-to-read-between-the-lines-of-a-pest-and-building-report-jo-chivers/2012040454169"></a>
Understand the limitations
Building inspectors are human, and for this reason standard building inspections are not a fail safe method. Inspections are visual by nature and are not necessarily intrusive (although more comprehensive inspections can be requested at a cost). For this reason, they will only be able to access areas that they can see – providing an opportunity for error and for the vendor to occasionally hide issues their home may have. 
Prior to paying for an inspection, you may also want to read this guide on <a target="_blank" href="https://www.propertyobserver.com.au/residential/key-steps-for-preparing-your-house-for-a-building-inspection-michael-ferrier/2013061962276">how vendors will be preparing their homes for building and pest inspections</a>.While they are asked to make life as easy as possible for inspectors to do their jobs, some may even lock certain doors and disallow access. You will want to see this behaviour as 'red flags'. Similarly, pest inspectors’ equipment are not foolproof – even after an inspection, damage can be found upon renovating. You may not be able to claim this back from the inspector, who hasn’t necessarily been negligent.
Specific knowledge
Local building inspectors are likely to know about specific builders, types of building, the way the structure needs to be built to withstand local weather and ground conditions and the common problems. For instance, in some areas certain streets are more prone to termites than others. A building and pest inspector who has been doing the rounds in the area for some years is likely to have an intimate knowledge of the “problem areas” and will be on the lookout from the offset.
They will also be able to provide information on whether that granny flat in the garden really meets council specifications, or whether the height of a room doesn’t meet building code. They may have even, as has occurred in some situations, undertaken a report before and will be even more alert to any new issues emerging.
Accessibility
While inspectors are increasingly said to be scared of being sued, you may be able to get them to provide you some extra information about the report over the phone. You may be able to informally ask them how much certain repairs will cost, and whether certain damage is necessarily a deal breaker. If you are interested in this aspect, you will want to be looking for someone willing to take their time with you and to give you a personalized service.
Not all inspectors will be comfortable providing an estimate for repairs costs, and you can then take the report to a builder or other professional for some advice.
Extras worth considering
Some inspectors offer extra services, such as to provide a “video” inspection along with the report. For those unsure, this can not only be a good educational tool in what to look for in a property yourself, but it will also clearly show the extent to any damage.
 
Quick note: Ensure you don’t get overcharged for your building and pest inspection. Usually, each report will cost around $400 to $600, and as a bundle may cost up to $800, although in some cases can be far less. Prices do vary, and can be more expensive for regional areas where an inspector is required to travel out.
Finally, remember that reports can take several days to put together. If you’re heading to auction, you will want to be getting this done as early in the process as possible before you even consider putting a bid on the home.
jduke@propertyobserver.com.au
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How to: Choose a building and pest inspector

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Property, and contracts, can be a stressful situation - particularly for the inexperienced. Here are five quick things you should know about your property contract. If you have any tips, add a comment at the end.
1) Offers usually do best with an expiration date
Without an expiration date, you will need to rescind the offer or the seller can accept at any time. You can also use this time limit to dissuade the real estate agent from using it as a negotiating tool with other prospective buyers, as well as to show them you are serious about closing a sale quickly.
2) Just because it’s standard, it doesn’t mean you can’t modify it
Head to your solicitor and have them go through the contract with you paragraph by paragraph. While some elements are standard, there are many areas that provide plenty of flexibility allowing you to get the terms and conditions that you want. Never assume that just because something is the “norm” it means you can’t change it to get a better result for yourself. For instance, you may want to negotiate early access to the property or modifications before you move in, or you may want to provide extra conditions. You may make it subject to a valuation, financing, building and pest inspection or even an inspection of the latest body corporate records.
3) Settlement dates can make or break a deal
Typical settlement dates are 30, 60 or 90 days, but don’t feel that you can’t change this. The main thing to remember is the importance of the settlement date to both the vendor and the buyer. There have been many situations where too short a settlement date is the “make or break” factor for the seller, who needs more time to move on, and vice versa.
4) You can submit more than one contractual offer
If a seller is asking for longer in the settlement, and this doesn’t suit your plans well, you may look to offer an identical contract, but instead of for the 30 days proposed at $720,000, you might offer 60 days and $710,000. You can submit a number of offers for them to compare, that may secure you a better deal. You may also submit unconditional contracts along with one with a number of conditions, but with a lower price. This gives the vendor something to compare against and consider.
5) Chattels need a double-check
Chattels, or all those ‘extras’ such as window furnishings, blinds and appliances, deserve a mention in the contract. Do not necessarily assume that because you have seen it at the property it will be coming with the home – even if the real estate agent has told you that it will. Get this in writing, in the contract, in as much detail as possible.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Five things you should know about your property contract

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In a speech today made to the Insurance Council of Australia (ICA) by ASIC’s deputy chairman, Peter Kell, he expressed that there will be a new focus on residential home insurance with challenges still faced with underinsurance.
Noting that there has been improved time across the industry to handle an insurance claim, demonstrated through the New South Wales bushfires ICA data, particularly in cases that involved the total loss of residential homes, Kell said that there was more to be done.
"We understand that claims arising from the NSW bushfires have highlighted a number of cases of underinsurance where consumers have found that, notwithstanding their claim being paid in full, they are unable to rebuild their homes,” he said.
Some of the reasons behind this underinsurance he noted, although mentioned that others would have a clearer picture. He said it may include challenges for consumers when it comes to setting an appropriate sum, using online calculators effectively, the affordability of insurance, the effect of increased rebuilding costs during times of natural disaster and the effect of changes in local building regulations as a result of the risk.
As a result of this, there is a home insurance review to be undertaken. Currently, the sale of home insurance policies are under review after the Queensland floods clearly revealed issues surrounding home owners’ understanding of flood cover, prompting “concerns about the transparency and comprehensibility of cover."
"Many consumers were unaware that their home building and home contents insurance policy either failed to cover flood or limited the cover, or did not adequately cover all 'types' of flood damage, such as flash flooding,” said Kell.
This new review will build on a 2005 and 2007 review into home building underinsurance, and a 2003 examination around the causes of home building underinsurance after the Canberra bushfires in 2003.
They look to examine the following:
The role of sales scripts at point of sale in providing transparent information and guidance to consumers when taking out insurance
The use of calculators as a tool to assist consumers to set a sum insured
How consumers can get readily accessible and consistent access to information about the policy through the sales process
How issues of affordability affect consumer choice
Consumer behaviours and decision biases when purchasing home insurance
The role of advertising in consumer decision making about insurance
The relative importance of premium price compared to policy coverage and features
They anticipate that the findings will assist home owners when understanding policy coverage, and to by extension protect their homes, especially in the event of a wide-scale natural disaster.
The report is expected for mid-2014, and will then be presented to the government.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
 
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"We continue to face challenges with underinsurance": ASIC's Peter Kell

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The Waterfront, Shell Cove, a masterplanned community in Illawarra, has awarded a tender for Stage Two of a $150 million boat harbour situated within the development. Won by Coastwide Civil and valued at $65 million, it is the second of three contracts for this part of the development.
Australand, the developer, and Shellharbour City Council, announced the winner of the tender together. Coastwide Civil also won the first contract for this stage of <a target="_blank" href="/news">Shell Cove</a>'s development.
They are calling <a target="_blank" href="https://www.shellcove.com.au/the-waterfront/">The Waterfront and Shell Cove</a> generally to be the future lifestyle, boating and tourist destination on the south coast of New South Wales. At completion, it will include a 300 berth boat harbour and a town centre with cafes, shops and restaurants.
Mayor Marianne Saliba said that this marks a move into the second stage without any recorded delays. The idea for a boat harbour in this area was first mentioned in the 1980s, according to <a target="_blank" href="https://www.illawarramercury.com.au/story/1981772/shell-cove-project-takes-shape-at-last/">The Illawarra Mercury</a>.
"The creation of the boat harbour and its surrounds is an exciting prospect for our community that will come to fruition during this next construction phase," Saliba said.
"The second stage involves the largest program of construction activities including almost 80 percent of the works to be undertaken on the harbour that will bring this long held dream of Council's closer to a reality," she said.
Australand Shell Cove development director, Glenn Colquhoun, said that stage one is nearing completion.
Stage two involves excavating almost 950,000 cubic metres of soil and rock to create the eastern harbour basin. It also includes constructing the boat harbour edge and constructing a boat ramp for the outer harbour. This is the largest of the three stages and will take three years to complete.
The final stage will be to connect the basin to the ocean.
“The Waterfront, Shell Cove will be one of the most significant pieces of infrastructure delivered in coastal NSW for many years and we are so pleased to appoint such a strong contractor as Coastwide Civil,” said Colquhoun.
More than $50 million to the entire residential development has been committed to the project to date, including the retention and maintenance of 11.5 hectare Myimbarr Westlands.
“The Waterfront, Shell Cove will be an integral part of the overall residential masterplanned community, offering an unbeatable home and lifestyle on the south coast,” he said.
It includes more than 60 hectares of public open space, an on-site primary school and a community centre.
<a target="_blank" href="https://www.propertyobserver.com.au/news/demand-remains-strong-for-australand-s-shell-cove-masterplanned-community/2013100865580">Launch day late last year saw all the 11 sites brought to market snapped up</a>, with the second release brought forward to cater for this demand. Prices for both have been <a target="_blank" href="https://www.propertyobserver.com.au/news/shell-cove-to-release-12-more-lots-this-weekend-following-strong-buyer-demand/2013102265883">somewhere from $310,000 to $400,000</a>.
jduke@propertyobserver.com.au
             
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Residential masterplanned community’s $150 million boat harbour tender awarded

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Considering the axing of Canada’s wealthy investor immigration program, as well as the introduction of five new apartment towers in the CBD, accounting and advisory firm William Buck’s Neil Brennan is predicting that Melbourne is set to be the hotspot for foreign investment.
Pointing to the end of the Canadian Government’s scheme, which he noted many Chinese nationals had bought into, he said that wealthy investors would be looking to place their money elsewhere – and that Melbourne might just be the next spot for them.
The Canadian scheme saw applicants worth $1.6 million or more loaning the government $800,000 interest free for five years, allowing them to then apply for citizenship.
“The concentrated multi dwelling development opportunities that are available in Melbourne as result are perfectly suited to foreign investors with a large amount of freely available capital,” he said.
Part of the abundance of these multi-dwelling development opportunities is due to some builders meeting “continuous road blocks” when looking to develop in traditional Melbourne suburbs, pushing them towards higher density dwellings, said Brennan.
“The continued growth of neighborhood zoning combined with the time taken for many projects to receive approval is deterring smaller medium density development usually undertaken by builders on behalf of mum and dad investors,” he said.
“As a result the appetite to undertake a traditional sub division of an established block continues to diminish.”
With this in mind, he said that one of the impacts of a “potential flood of overseas investment” is that it could result in an apartment over-supply, and a possible undersupply of mid-level housing, as developers look to cater to this booming market segment.
Foreign investors, he said, are typically looking for the following types of property: Inner city Little or no maintenance Highly tenantable
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
 
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Development expert predicts flood of foreign investors in Melbourne to cause potential oversupply

<html><body>The new summer 2014 National Outlook from the Housing Industry Association points to residential construction to be one of the pieces of good news over the year. The housing report, which reviews latest developments in housing construction and provides forecasts, did point to challenges, however said it would be a gradual broad based recovery over the year, noted HIA senior economist, Shane Garrett. “Residential construction investment will account for a growing share of the economy in 2014, and should fill some of the gap left by the decline of mining investment,” he forecasted. “New dwelling commencements are forecast to break the 165,000 threshold for only the second time in a decade,” said Garrett. “This will be driven by much stronger activity in markets like NSW, Queensland and Western Australia. However, challenges will remain in other states, more notably Victoria and Tasmania". Pointing to their belief that the Reserve Bank will leave the interest rate unchanged for the remainder of the year, he said that this will help strengthen housing activity. Renovation activity, which has struggled over the past five years, is also expected to see an uptick. This will be fuelled by stronger prices speeding up the accumulation of home equity and therefore facilitating more renovation loans. This, in turn, might see an injection into capital gains for some areas as properties are brought up in their standard. “In advance of the federal Budget in May, we intend to emphasise the role a stronger housing industry can play in supporting economic growth at this time. Reforms targeting planning, infrastructure charging and taxation of the sector will enable housing to make a larger contribution to boosting the economic outlook,” he said. During 2012/2013, housing starts increased 11.7%. This was after two consecutive years recording declines for the industry. The 2013/2014 forecast is for a 2.8% increase, to reach over 170,000 by 2016/2017. <a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> </body></html>

Dwelling commencements set to break 165,000 threshold for second time in decade: HIA

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When preparing for auction, serious buyers will be doing their best to ascertain just how much the property is going to sell for and the amount of interest it might receive. However, with reserve prices not necessarily advertised, it can be tricky to get a gauge on where the floor of the price might be.
This is the argument from buyer's agent Patrick Bright, director of EPS Property Search. In order to stamp out misleading price guides and to increase transparency, he argues that reserve prices should be published.
“Vendors who choose to sell via auction should be required to publish the auction reserve price seven days out from auction day to create a more transparent process,” said Bright.
“Buyers can then pay the building and pest inspection costs and legal fees with confidence knowing that they have a real chance of owning the property rather than wasting money trying to buy a property that they could never afford if their budget is below the vendor’s reserve.”
Underquoting, a topic that has been a subject of debate on Property Observer many times prompting <a href="https://www.propertyobserver.com.au/news/take-that-price-guide-with-a-grain-of-salt-underquoting/2013112166539" target="_blank">our experts to warn buyers to take the price guide with a "grain of salt"</a>, does still exist in the marketplace, he said, and publishing the reserve may have the potential to reduce this.
Buyers regularly accept the selling agent's price guide on face value, he said.
“Unfortunately though for the buyers, the vendor’s real expectations and subsequent reserve are often significantly above the price guide and often far more than they can afford."
He describes an auction that recently occurred where the advertised price guide was 'over $1.5 million' up until the last day. The auction bidding stopped at around $1.97 million, when the agent went to seek out whether the property was on the market.
“I can assure you the mood at the auction turned to one of frustration and anger for many buyers holding bidding cards as surely the reserve should have been met that far above a price guide," he said.
“Unfortunately this happens every weekend leaving thousands of people unnecessarily out of pocket.”
This comes as the <a href="https://www.propertyobserver.com.au/queensland/queensland-auction-price-guide-ban-defies-common-sense-john-mcgrath/2014022367953" target="_blank">Queensland government is looking to ban advertised price guides</a> to help reduce 'bait pricing'. This is being said to be prompting 'dark days' for the real estate industry in Queensland.
<img alt="poll-results-march-3" height="111" width="470" src="/images/stories/2014/03/03/poll-results-march-3.png">
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
                  
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Should auction reserve prices be published?

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Anthony Nicholls, from Mitcham, Victoria will stand trial in the Victorian County Court next year for allegedly obtaining more than $2.6 million of funds from investors by deception in his role as director of Peton Properties and Zantholls International Pty Ltd between 2004 and 2006.
In 2007, Peton Properties went into liquidation. It owed creditors more than $4 million.
After a week-long committal hearing in the Melbourne Magistrates Court, 61 year old Nicholls has been told to stand trial on 11 May 2015, with the expected length of the trial being three months.
Charged with 113 counts of breaching his duties as director, three counts of making false and misleading statements, 19 counts of obtaining a financial advantage by deception and one count of obtaining property by deception, he has pleaded not guilty. Each of the 113 charges carries a maximum penalty of five years jail, or a $220,000 fine, with each of the misleading and false statements carry 10 years jail or $495,000 in fines.
About 20 people suffered losses, after investing $2.68 million with the companies. The money was going to be used to fund Ballarat developments, however ASIC alleges that the developments were unable to be developed in the manner nor in the timeframe described.
They also allege that Nicholls authorised a $1,806,000 withdrawal from a Peton Properties bank account and a solicitors’ trust account for use for his own benefit and that of co-director Peter Scully, financial obligations of another related company The Key Result Pty Ltd and interest payments due to existing investors.
The Key Result Pty Ltd trademarked the term “THE KEY RESULT UNLOCK YOUR FUTURE”. According to Consumer Action Law Centre, the company promoted a form of rent-to-buy arrangement that included a personal savings plan and budgeting service.
<img src="/images/stories/2014/02/27/key_result.jpg" alt="key_result" style="display: block; margin-left: auto; margin-right: auto;" height="139" width="150">
Logo for The Key Result Pty Ltd
“As well as facilitating the entry of a prospective purchaser into a rent-to-buy arrangement with a third party investor, The Key Result Pty Ltd provided staff who would not only oversee the day-to-day spending of a prospective purchaser, but would in fact exclusively control his or her bank account,” Consumer Action notes.
They note that many were placed in extreme financial hardship through the scheme, being forced to reduce spending to an extent to be able to afford rental and purchase option payments on properties they were unable to afford. The Key Result Pty Ltd is no longer operating.
The Key Result Pty Ltd's director Peter Scully (aforementioned co-director of Peton Properties) was also director of Active Property Solutions Pty Ltd, and has seen Consumer Affairs Victoria allege that they brokered deals that the buyers could not afford, according to <a target="_blank" href="https://www.heraldsun.com.au/news/victoria/deception-on-homes-alleged/story-e6frf7kx-1111115491611">The Herald Sun</a> back in 2008. The <a target="_blank" href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/vic/VSC/2012/444?stem=0&amp;synonyms=0&amp;query=Director%20of%20Consumer%20Affairs%20Victoria%20v%20Scully">outcome of the case can be read here</a>. The schemes, aimed at first time buyers, were advertised in the Gippsland and Doveton areas, as well as in the Geelong Advertiser newspaper.
The court transcript suggests that advertisements read along the lines of:
WHY ARE YOU PAYING RENT? 
$750pw net combined or single income gets you your own home at competitive rates 
As well as:
DOES THIS SOUND LIKE YOU? 
First home buyer?
Employed or Self Employed?
Tired of Renting?
Knocked back for finance?
But desperately want to
OWN YOUR OWN HOME?
We can HELP with...
LOW deposit finance
Easy qualifying
Bad credit history – No worries
Want to know more? Ring NOW
*Conditions apply
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
             
</body></html>

Peton Properties director on trial for obtaining $2.6 million of funds by deception 

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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