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Kyko Group’s multi-tower development, Mon Komo, has achieved almost $11 million for the sale of 17 short stay and residential apartments over three months.
The mixed used development at 99 Marine Parage, Redcliffe, has seen these sales of the apartments priced between $420,000 and $825,000, with one-, two- and three-bedroom configurations purchased. Residential investments are in one tower, with short stay apartments in the other. There are 108 residential apartments. Investment apartments come with a two year rental guarantee.
Owner occupiers and investors across the wider Brisbane market were said to be the purchasers to date, including local Redcliffe and Moreton Bay buyers. However, there have been interstate buyers from Adelaide, Sydney and Mackay expressing interest.
One of the penthouses sold for $825,000, leaving three currently available of the eight.
TOTAL Property Group managing director, and Mon Komo marketing manager, Adrian Parsons, said that record buyer interest was seen over the last quarter of 2013.
“The property market is on the move in Brisbane, which is spurring positive traction in Redcliffe particularly for its multi-storey developments, with local buyers turning to apartments as a preferred place to live,” said Parsons.
“This is being reflected in our sales and feedback from local purchasers, who are attracted to the convenience of apartment living and the luxury waterfront lifestyle on offer at Mon Komo.”
First home buyers are also being seen expressing interest, which Parsons attributes to the available $15,000 Great Start Grant.
“Contributing factors including significantly low interest rates have assisted with the increase in buyer confidence, as well as a greater demand for waterfront apartment living in South East Queensland,” he said.
“On the other end of the scale, we are seeing the astute investment buyer return to the marketplace, who now have the flexibility of purchasing property that is of higher end value. The latest uptake is a strong example, with the sale of one of Mon Komo’s luxury penthouses as well as several sales from $600,000 upwards.”
Prices for the entire development start from $325,000, with layouts ranging from one-bedroom apartments at 82 square metres to three-bedroom plus study penthouses at 247 square metres.
Short stay apartments are managed by Oaks Hotels &amp; Resorts, come fully furnished, and are one-bedroom, 58 square metre offerings, to three bedroom dual key properties, 170 square metres, starting from $275,000 including furniture package. There is also a pub, office suites and other facilities.
Occupancy rates at Redcliffe are 84.2% for short stay accommodation.
Floor to ceiling windows and balconies are part of the design.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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jduke-EHk3XBmHkn

Close to $11 million of new apartment sales recorded at Mon Komo development, Redcliffe

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A new survey has found that the ability for a property to be ‘low maintenance’ is the most desired factor by 90% of home buyers, who place an easily maintained property, or one with little upkeep, at the top of their requirements list.
This contrasts starkly to investors, who point to the proximity to amenities and the value of home loan repayments as their main considerations.
They survey, of more than 1,000 home buyers, was undertaken by CommBank. Of those surveyed, 47% had either recently purchased or intended to purchase an investment property. Of that number, 65% were home owners looking to purchase a new investment, one in five were intending to turn their current home into an investment and 15% were renters looking to purchase an investment and continue renting.
Of those looking to newly invest, 54% said that the motivation was that property “is the best way to invest my money”, while 30% cited low interest rates meaning it’s a good time to buy, with 27% pointing to retirement planning.
General manager for home loans, Commonwealth Bank, Clive van Horen, said that regardless of the reason for the purchase, advice is crucial.
“My tip for all prospective home buyers is to do your research, compare property prices across suburbs, and prioritise your requirements. Seeking expert advice from your home loan provider is a good place to start,” said van Horen.
Where home buyers will compromise
With 86% surveyed saying they’re willing to compromise, they did vary on what they would not insist upon.
The top four factors:
Size (29%)
Price (25%)
Location (24%)
Requirement for little renovation (24%)
Of those selling to then purchase their next property, 78% believe their home needs work to prepare it for sale – with an average spending of more than $12,300 to maximise selling price.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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“Low maintenance” tops 90% of home buyers’ requirement lists

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A property in Melbourne’s Docklands has been acquired by Little Projects for $18.5 million from a local private investor, confirmed managing director of Little Projects, Michael Fox.
The 8,800 square metre industrial site at 85 Lorimer Street has the potential to have up to 1,500 apartments built, fitting Little Projects’ style of industrial site redevelopment.
Top-end luxury four-bedroom two-bathroom units on Lorimer Street have been known to sell for over $1,250,000. Next door at 80 Lorimer Street, <a target="_blank" href="https://www.realestate.com.au/property-apartment-vic-docklands-107445548">four-bedroom three-bathroom three car space unit number 2601</a> (pictured below) is on the market for $1,695,000 in Mirvac's tower, with two-bedroom offerings around $780,000. The tower has a health club, heated indoor lap pool, spa, sauna, steam room, fully equipped gymnasium and roof top decking.
{yoogallery src=[images/stories/2014/02/27/dock]}
The current median price for Docklands units sits at $593,063 with the median price for those over $750,000 being $1,045,000.
It remains to be seen what Little Projects will pull out of the bag for this site, but if their previous offerings are anything to go by, such as <a target="_blank" href="https://www.propertyobserver.com.au/victoria/developer-offers-olive-branch-after-selling-out-south-yarra-development/2013031259839">ILK at South Yarra</a> (pictured below), it is likely that the development will have luxury top-end appeal with an emphasis on amenity.
{yoogallery src=[images/stories/2013/08/aug29south]}
“Little Projects focuses on providing high quality lifestyle developments on Melbourne’s inner city fringe and this site offers us the opportunity to create something unique for Melbourne,” said Fox.
They have begun the planning process for this new site, with plans to be revealed at an as-yet unspecified date.
“We look forward to working with the Minister’s office and the new Metropolitan Planning Authority to realise the Minister’s vision for the urban renewal of the Fishermans Bend precinct,” said Fox.
The site is located closed to the Mad Duck Café and Papillon Day Spa, as well as close to the Yarra River, West Gate Freeway and Point Park.
The sale was completed by Lemon Baxter director, Paul O’Sullivan, who also sold 2-4 Princes Street for $4.8 million to a local investor.
<a target="_blank" href="/news">Docklands</a> has been making headlines lately, and the suggestion is currently that the area is finally <a target="_blank" href="https://www.propertyobserver.com.au/victoria/docklands-finding-its-feet-after-a-difficult-conception/2013101065628">finding its feet after a difficult conception</a>.
Recently, planning minister Matthew Guy said that a new intersection created for the area – at <a target="_blank" href="https://www.propertyobserver.com.au/victoria/largest-urban-renewal-project-in-australia-to-become-the-new-heart-of-melbourne-planning-minister/2014022367981">Collins Street and Bourke Street – would become the new “heart of Melbourne”</a>.
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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Up to 1,500 more apartments coming online as Little Projects acquires new Docklands site

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ACT real estate agent Mark Blinksell has had his license cancelled for five years, and has been disqualified from applying for a real estate of business salesperson’s registration for three years after being found guilty of engaging in dishonest conduct by misapplying deposit monies received last year.
The deposit funds, that had been received around January 7, 2013, in his role as vendor’s agent, were effectively stolen. He subsequently misrepresented and lied about where the funds were. He had been engaged by the vendor in October 2012, and received $22,000 in a deposit cheque from the buyers in the January.
He put the cash into his business account, rather than into a trust account before transferring funds into a home loan in the name of two other people, notes the court transcript. A Commonwealth Bank home loan account in Lennette Anne Blinksell and Ellen Patrice Blinksell’s names saw a credit transfer from a GRE business account and a credit transfer of $10,000 on 11 January 2013, before a $5,000 transfer to the same account on 14 January.
When a cheque bounced in March, the vendors and buyers were alerted to the issue. The vendors brought in their lawyers, and contacted Fair Trading. Blinksell said that it had been mistakenly put into the business account.
The cash was repaid in September. You can read the full court proceedings online. 
Blinksell was director of Grapevine Real Estate Pty Ltd, also called “Grapevine Property” and “Grapevine Property &amp; Business”. He engages in business and property selling activities, with his current LinkedIn bio saying that he has been focusing on emerging business brokering opportunities arising out of the GFC. He has been operating in the real estate, building and construction industries for 30 years.
His online bio says that the company’s ethos is “to deliver smart property investment outcomes to the residential and commercial sectors, through sound and honest practices in sales, leasing, property management and business development solutions.”
It also notes that Blinksell is a “keen participant in various property and business related lobby groups, and demonstrates a significant interest in the overall development and prosperity of the Canberra property market.”
This is one is a string of trust account-related misuse cases from a number of agents across the country.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Canberra agent’s license cancelled after taking trust money to fund home loan

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In September 2012, five Melbourne hotspots were tipped by Advantage Property Consulting’s managing director Frank Valentic, for Property Observer. He explained his reasoning and the type of property he'd look to purchase in each area.
We’re now nearing the end of February 2014, and we’re turning our attention back to these hotspots to see how they performed over the past year and a half.
You can read <a target="_blank" href="https://www.propertyobserver.com.au/victoria/five-potential-melbourne-hotspot-suburbs-frank-valentic/2012090456137">the original predictions from 2012 in this article here</a>.
The five suburbs picked: Thornbury Spotswood/Newport Box Hill South Yarra Frankston
The reasoning: Valentic explains that he aims for the more affordable areas that allow more people to access the properties. He wrote that “A hotspot can best be described as an area that has not attracted the same level of attention as traditional blue-chip locations. They are often identified as areas that are underperforming, usually within close proximity to more popular suburbs.  When an area becomes too expensive for people to afford, they usually move to these neighbouring suburbs that are more affordable, causing a positive outward ripple effect.”
It is this ripple effect that had him picking many of the below suburbs.
These were his predictions:
1. <a target="_blank" href="/news">Thornbury</a>
Thornbury has shown an impressive 21% growth per annum over the last 22 years.  Units and flats are still very affordable with an average median price of $432,000.  Located just seven kilometres north-east of the CBD, it has easy access to transport, an attractive lifestyle vibe and is very family friendly. The ripple effect from more expensive suburbs such as Northcote, Fitzroy and Carlton has caused Thornbury to become a more financially viable and affordable alternative. It has all the right features and qualities of a prime suburb, making this an ideal entry-level suburb for first-home buyers and investors.
2. <a target="_blank" href="/news">Spotswood</a>/<a target="_blank" href="/news">Newport</a>
Positioned just seven kilometres west of Melbourne’s CBD, both Spotswood and Newport have shown steady growth of 14% per annum growth over the last 22 years.  It is one of the few affordable inner-city suburbs left in Melbourne. Apartments and flats are still available well below the $535,000 median. It has very good transport connections to the CBD, with a new multi-line train station, nearby Westgate Freeway, Western Ring Road and City Link arterials. Neighbouring satellite city of Footscray is close by.  You can still find older-style cottages on good- sized blocks, proving popular with first-home buyers and investors.
The ripple effect from wealthier suburbs such as Williamstown and Yarraville has caused both Newport and Spotswood to become future hotspots.
3. <a target="_blank" href="/news">Box Hill</a>
The ripple effect from Camberwell and Surrey Hills has put Box Hill in a good affordability category. The median price for units and apartments is still relatively affordable at $467K.   Located 14km east of the CBD, it is a major commercial centre and transport hub.  It has excellent access to Maroondah Highway and is home to the local Box Hill Hospital.  In addition to all the wonderful amenities, it is also a growing satellite city with the local council introducing further relaxed planning controls to help promote and build medium density development.
4. <a target="_blank" href="/news">South Yarra</a>
The reason why we have chosen to include the inner “blue-chip” suburb of South Yarra is that prices have fallen considerably.  You can now buy one-bedroom apartments well under its median price of $620,000. This holds great appeal to those seeking an affordable entry in to a highly desirable location. Located just three kilometres south-east of the CBD, you can’t go wrong with the close proximity to trendy Chapel Street and Toorak Road.  Established infrastructure such as The Alfred Hospital and Swinburne University are also nearby.
5. <a target="_blank" href="/news">Frankston</a> 
Located 41 kilometres south of the CBD, Frankston is slowly becoming a major commercial, retail, educational and transport centre. This satellite city will have the Peninsula Link opening in early 2013.  As a result, you will see travel time cut by up to 40 minutes between Carrum Downs and Safety Beach.  The median price for a home is super affordable at $350,000, and apartments can be purchased at less than  $270,000.  Close to the beach, the future development of a local marina will also add significant value to the area.  The ripple effect from neighbouring Mount Eliza and popular Mornington Peninsula suburbs (Portsea, Sorrento and Flinders) is offering potential buyers a much more affordable option.
See over page for how they stacked up
 
 


<hr class="system-pagebreak">
  
How did the five hotspots perform... 
 1) <a target="_blank" href="/news">Thornbury</a>
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In Thornbury, units performed at 14% median price growth – a great result. Although they didn’t bring in the 21% growth that he cited they had seen per annum previously, the area clearly stacked up as he had predicted.
He was also wise to select units over houses as, according to RP Data, houses saw a 3.8% uptick – far overshadowed by the result from the units. Median asking rent currently sits at $300, a 3.6% yield.
2) <a target="_blank" href="/news">Spotswood</a>/<a target="_blank" href="/news">Newport</a>
Valentic pointed to the availability of apartments and flats well below the median price, but pointed to older-style cottages on good-sized blocks as where popular purchasing is to be had. Interestingly, units in Spotswood increased by 1.7%, and in Newport actually dropped in median price by 4.6%, where houses in both performed strongly – at 4.2% and 11.2% respectively.
3. <a target="_blank" href="/news">Box Hill</a>
Pointing to a ripple effect from Camberwell and Surrey Hills, his suggestion for units and apartments that have remained affordable is a successful one, with a significant 15.6% increase. He pointed to relaxed planning controls, promoting and allowing medium density development as something that would encourage this, as well as its position as a commercial centre and transport hub.
Houses in the area, which he did not suggest, did not fare particularly well – dropping 6.5% in median price over this time.
4. <a target="_blank" href="/news">South Yarra</a> 
Inner “blue-chip” South Yarra, where Valentic said prices had fallen dramatically, there was a 2% overall uptick for units. A quick comparison of the noted one-bedroom units listed currently, compared to those that sold in February 2012, do suggest that the increase was more marked among this type of stock – however, it can be a tricky assessment to make due to the large number of pricier new apartments in South Yarra.
Houses in the area, which sit above the million dollar price mark and therefore did not fit the criteria, saw a whopping 28.5% increase.
5. <a target="_blank" href="/news">Frankston</a>
Frankston’s performance was a little lacklustre. It saw a 1.2% uptick for houses and a 2.4% uptick for units. Valentic suggested both due to the early-2013 Peninsula Link opening that was set to cut down travel time, as well as the future development of a local marina and the ripple effect from neighbouring suburbs. It will be interesting to see whether this pans out to see stronger growth.
You can read <a target="_blank" href="https://www.propertyobserver.com.au/victoria/five-potential-melbourne-hotspot-suburbs-frank-valentic/2012090456137">his thoughts here around the strategy of picking suburbs that will perform</a>.
Whose picks would you like us to take a look at? jduke@propertyobserver.com.au
 
 
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Analysis: Five expert-chosen 2012 Melbourne hotspots under the microscope

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Our Tweet of the Day comes from Greens Member of the NSW Parliament, David Shoebridge, who earlier this week took to tweeting his belief that the state's top planning body, the Planning Assessment Commission (PAC), is nothing more than a "rubber stamp" for the Planning Department.
He noted that of 234 decisions made by the body, just 4% were refusals and with 95% of determinations made agreeing with the Department of Planning's recommendations.
Those responding to the tweet, after 13 retweets and 6 favourites at the time of writing, asked Shoebridge whether developers perhaps had a better understanding of planning before submitting a Development Application. Meanwhile, @GlobeAlone pointed out that at $250,000 for the cost of a DA process, it's unlikely developers will push anything through that is likely to be refused.
<blockquote class="twitter-tweet" lang="en">
The state's top planning body is little more than a rubber stamp for the Department <a target="_blank" href="https://t.co/wLepQhb822">https://t.co/wLepQhb822</a> <a target="_blank" href="https://twitter.com/search?q=%23nswpol&amp;src=hash">#nswpol</a> <a target="_blank" href="https://t.co/jmHZDfV38a">pic.twitter.com/jmHZDfV38a</a>
— David Shoebridge (@ShoebridgeMLC) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/ShoebridgeMLC/statuses/438133350167883778">February 25, 2014</a>
</blockquote>
"With a 95% approval rate and even higher Department compliance rate, serious questions need to be asked about the efficiency, utility and institutional independence of the PAC," Shoebridge announced.
"The research further shows that when only one member, rather than the more usual three, is placed on a PAC panel for a planning decision then the PAC has a 100% approval rate."
"In these cases the concerns of community members are institutionally ignored," he said.
A full list of the developments analysed is <a target="_blank" href="https://onedrive.live.com/view.aspx?resid=5DD5DCDB3A29B431!113&amp;ithint=file%2c.xlsx&amp;app=Excel&amp;wdo=2&amp;authkey=!AL95YcdrT35rPGE">available online in an excel spreadsheet</a>. The small number of refusals listed included Dolans Bay Marina, for potentially adversely affecting flood behaviour, a Creek Street Hastings Point development due to the scale and location not being in the public interest and a Kemps Creek development, with the site not being said to be suitable for the project.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Greens slam New South Wales Planning Assessment Commission

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Botanica Residences, in South Brisbane, is set to be developed early this year after a sell out within two weeks of its official launch.
The development, designed by <a target="_blank" href="/companies/rothelowman">ROTHELOWMAN WHITE</a>, developed by ARIA, is certified as a six-leaf rating by the UDIA, and is the largest of its kind to achieve this sustainability rating cementing it as a landmark for <a target="_blank" href="/news">South Brisbane</a>.
Including features in six sustainability categories, with vertical gardens facing Edmondstone Street, solar panels and a Smart Monitoring System to allow residents to track their water and energy use, it looks to help reduce bills and the environmental impact.
It is located on the corner of Edmonstone Street and Boundary Street and is in a former commercial area two kilometres from the CBD. It includes integrated security, intercom access, wi-fi and a ground level café and retail options.
Simon White from ROTHELOWMAN said that the sustainable attributes have been a key part in the demand for the residences.
“Botanica and its green wall will be an authentic residential landmark for the South Brisbane,” said White.
Timber and glass are the main themes, with a recreation terrace on the building with 360 degree views. Landscaping and recreation options will also be included. A barbecue area is provided on the rooftop.
The interiors have 2.7 metre high plasterboard ceilings, with natural light being a focus, said Michael Hurley from ARIA’s residential division.
“When we found out about the UDIA’s Enviro Certification Program, we jumped at the chance to make Botanica more environmentally friendly. It was apparent that with some hard work and smart design changes, we could achieve all 6 levels of certification. We are continually working to further separate our developments from the market, and achieving the UDIA Six Leaf Enviro Certification was a very easy decision for us to make,” said Hurley.
jduke@propertyobserver.com.au
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Landmark South Brisbane 180-apartment tower set to commence after two week sell-out

First time buyer softness an added incentive for investors: Residex

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By and large, tenants are going to be honest, straightforward and trustworthy individuals – however, it pays to be aware of the warning signs of a bad tenant and the areas that are not always as straightforward as you’d imagine.
Property Observer regularly discusses <a target="_blank" href="https://www.propertyobserver.com.au/landlords/the-importance-of-good-tenant-selection/2012030453664">the significant importance of selecting a good tenant</a> (afterall, they're an important part of the investing process and a neat, tidy and careful tenant will add years onto the life of your home), as well as <a target="_blank" href="https://www.propertyobserver.com.au/landlords/six-bad-cases-of-tenant-damage-which-one-is-the-worst/2013112566599">how bad it can get when damage and worse occurs</a> (warning: wince worthy material within).
Here are five things that every self-managing investor, and property manager, should know about tenant background checks:
1) The previous, or current, landlord for the tenant might not always be honest
If a tenant is particularly bad, or a landlord is in a hurry, it’s likely they might not tell you the complete truth on the phone. This is particularly true for if the tenant is currently in situ and hasn’t been fantastic – they might want to move them on as quickly as possible.
You’ll also want to be aware that, just as with employment references, there is an increasing fear of being liable should the wrong thing be said. For this reason, landlords, investors and property managers have been known to sugar coat a previous tenants’ behaviour.
Avoid this by asking pointed questions and looking for areas of hesitation. Ask about whether the full bond is, or will be, returned, as well as the longest period of rental arrears from that specific tenant. These are factual details that would be outright lies to get wrong, rather than a case of personal judgement.
2) You need signed permission to undertake a credit check
Credit checks can be particularly useful in getting an understanding of a tenants likelihood to pay on time and to be good with their finances. While not all black marks of credit history results in the making of a nightmare tenant, it can be powerful information in conjunction with the rest of their application.
Remember, though, you need signed permission from the tenant to undertake this test. This may be particularly useful for landlords with commercial tenants.
3) Verifying information, including contact details, is important
<ol></ol>
Has your prospective tenant provided you with mobile numbers for their employers? Ask for a landline. Then try to double check this against public records, such as the website of the company that they work with, or some sort of online classified.
Double check the position of the contact you have been given by calling the company ahead of time, particularly if the phone numbers do not correlate.
You will also want to confirm their salary, employment term and the other points of note they provide. Calling their previous employer is also a worthwhile activity, and quickly Googling the tenant is always useful.
4) Unchecked written references are barely worth the paper they’re written on
If you are going to accept written references, then you’ll need to call and confirm that they are accurate in the first place. The written references have already been vetted by the tenant, who are not likely to provide you with anything that alerts you to the red flags you’re looking for, and so a simple phone call is far more likely to be worth your while.
If you do want written references, ask for these to be sent to you via official email accounts from the company and ensure you reply back thanking the sender.
5) Discrepancies are clear warning signs
Repetitious discrepancies should be an alarm bell. In particular, look for incorrect phone numbers of contacts provided for references. If a tenant lies to you during this part of the process, then it may just be a sign of worse things to come.
Find a tenant who is upfront where their application may not match up – perhaps their name is different on their ID and their previous lease due to marriage or any other straightforward name change – this isn’t necessarily a sign they’re trouble.
However, if they avoid the conversation and there are other suggestions they are not being truthful, then stand clear. For instance, if their current length of employment has been just three months according to their boss, however they have put down 13 months, it may just be a case of an accident. If you call them and they repeat the “over a year” line, then you know something isn’t quite right. Ask them straight out before writing them off.
<ol></ol>
How do you go about double checking a tenant’s application?
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
                 
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Five things you need to know about tenant background checks

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Legislative changes, house price and rental demand increases, in conjunction with a housing affordability crisis, have apparently prompted the creation of Granny Flat Finder, a tech start-up that is filling the niche of granny flat developments.
Ever since the changes in New South Wales allowed investors to achieve dual income by building a granny flat on applicable blocks, there has been substantial interest in the strategy. Most recently, ACT has updated their legislation, <a href="https://www.propertyobserver.com.au/australian-capital-territory/granny-flat-size-allowance-increased-in-act/2014021067684" target="_blank">allowing granny flats to be larger and more appropriate as rentals</a>.
Since trading in December 2013, <a href="https://www.grannyflatfinder.com.au/" target="_blank">Granny Flat Finder</a>, a marketplace for investors to locate builders and designs, has listed over 50 builders covering 15% of the market, and is receiving 1,200 views per day.
Director of Granny Flat Finder Pty Ltd, Jay Wright, built the site to task all the hassle out of options and the complicated laws and processes. “[Our] research had suggested this was a growing market, however the demand has been unprecedented. This week alone we have had over 100 enquiries submitted to builders through the website from customers looking to have a granny flat built,” said Wright.
Designs can be filtered in terms of one, two and three bedroom designs, and builders have online profiles in a classified-style collection.
The website also provides white papers, guides, tips and legislation.
The January report of the site saw 3,000 views on Granny Flat Finder, 16,000 views of designs and builder profiles and 217 customers enquiring.
For your interest: <a href="https://www.propertyobserver.com.au/renovating/the-four-pros-and-four-cons-of-building-a-granny-flat/2013082564469" target="_blank">Four pros and cons of building a granny flat</a><a href="https://www.propertyobserver.com.au/renovating/the-four-pros-and-four-cons-of-building-a-granny-flat/2013082564469" target="_blank"></a>
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
                       
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Granny flat demand at record levels, prompting online start-up “Granny Flat Finder”

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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