<html><body>
The delay to the reforms of the New South Wales Strata Act is being called a disappointment that may see the introduction of “onerous requirements” for developers, according to Urban Taskforce CEO, Chris Johnson.
The six month delay of the reforms comes as stakeholders are asking for more time, with <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/changes-to-nsw-strata-laws-delayed-after-stakeholders-demand-more-time/2014021867843">October suggested as the potential date to expect the changes to be pushed to</a>.
Johnson said that a number of members were looking to re-enter developing in the apartment market on the basis of the proposed reforms, but that they are now reconsidering in light of the delays.
“The development industry has gone along with the reforms as a package but the delay announced by NSW Fair Trading could untangle agreements to-date,” he said.
“It is vital to diffuse the litigious environment around defects resolution and we supported the use of independent assessors and the use of a retention fund of 2% to cover defects but the delays could see other more onerous requirements added to industry costs.”
Johnson told Property Observer that they’ve reached a reasonable package between the various parties, and they’re concerned as to what any changes now may mean.
“The groups that seem happy about [the reforms] taking more time are generally the owners corporation network and consumer groups,” he said, noting that they’d worked with these groups in the past to come up with the current arrangement.
His fear is that the reforms will become skewed against the development industry.
“The reality is that the New South Wales government has been slow in bringing in reforms to do with planning and now the strata act. We’re only a year out from an election and any good bold reformist decisions need to be made well away from that time,” he said.
However, the Urban Development Institute of Australia’s chief executive Stephen Albin disagreed with claims that it will make developers reconsider.
“I don’t think that people will put off plans based on a change in three months, we have been talking about these reforms for the last six or seven years, it isn’t a deal breaker for investors,” Albin told Property Observer.
“The delays aren’t ideal, it would have been great had the whole legislative package been together, but I think one of the important points is that there’s transparency and certainty. The whole package needs to go to parliament as one. It’s a smarter move than putting two bits of legislation up at different times,” he said.
“These laws, which are all about creating better infrastructure, better communities, may be subject to politics and that’s not a good thing, but I think they’ve done the right thing to put the package together as one.”
The UDIA, who have been involved with assisting the legislation for five years, said that there has been a general consensus towards these changes.
Any further requirements for the developers may be changes in the margin, but he said that there are unlikely to be substantial differences as a result of the delay.
“We’ve learned lessons from the planning system and the way planning reforms have been a subject of political misinformation, this time we go in with our eyes wide open,” he said.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
</body></html>

jduke-EHk3XBmHkn

Strata reform see developers fear more “onerous requirements”, but concerns may be misplaced

<html><body>
If you own a property and are looking for a quick equity boost, or some extra rent, then adding a room might be a good option.
While this strategy suits some, not every house is going to be suited to the task. Before you even touch the toolkit, you need to hit up the numbers.
As always, head on to a listings website. You need to create an understanding in your mind about the difference between prices of say, comparative two bedroom homes and three bedroom homes that have the majority of other factors (such as land size, location and amenity) similar to yours.
Once you have worked out what this number is, you can very easily do a similar task with rental prices.
For suburbs where fewer properties transact or rent, you might find yourself collecting this data over a period of time – particularly where there is a mixture of housing types. You could also phone a local real estate agent and ask them to appraise your home and ask them how much it would add value with an extra bedroom.
Let’s assume the difference in price is $50,000 - a substantial sum, which can vary significantly between suburbs. We’ll also assume that, based on the rule of $100 rent for every $100,000 in home value, there’s an extra $50 a week in rent potentially available. We note that these are very rough sums and your result may be substantially different.
If there’s a potential $50,000 to be made, it’s certainly worth looking at.
With the $50,000 figure now in your mind, you need to turn your attention towards the property itself and consider where you can fit this extra room.
Understand what constitutes a bedroom
Of course, you can put a desk in a bedroom and call it a study, or you could put a table in there and make it a new living room, but a bedroom does have to fit certain standards. The Building Code of Australia will be a useful guide to head to.
To make it legally fit the definition of a bedroom when it comes to sell, there are a number of standards that need to be adhered to.
There are specific rules about ventilation, windows, floor space and ceiling height (2.4 metres for habitable rooms) that you need to be mindful of. Bringing in the council early, especially where permits are required, can be crucial.
Ensuring you fit these requirements is necessary, otherwise you will be legally required to sell your property as having the initial number of rooms and an extra “storage room” regardless of whether you think it is perfectly fine to be a bedroom.
Article continues on next page. Please click below.
   
<hr class="system-pagebreak">
Firstly, look towards your floor plan
Cherie Barber from Renovating for Profit <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/how-to-add-%24100000-of-value-with-a-%2410000-renovation/2013093065370">has previously told us to look for a “big open space” where you can put in a cheap $1,000 wall</a>, add some paint and a bit of cleaning up and change an L-shaped room into two spaces – one of which becomes your extra bedroom.
You can also look for non load bearing walls that can be moved within a larger room to create two rooms, or an office that just needs to be slightly bigger.
Changing a room in this way is going to be your cheapest option, perhaps costing up to around $5,000, leaving you a nice $45,000 in equitable profit.
Look for alternative spaces
Garages, attics and similar spaces can be converted into bedrooms, however these can incur substantial costs – particularly if, for instance, the attic requires proper walls to be installed and windows to be put in. This can easily make the $50,000 profit potential erode, leaving you over capitalizing.
In some areas, a garage is going to be seen as an absolutely crucial aspect to your property. Turning this into a bedroom may, in fact, be detrimental to your investment – even if the numbers appear to stack up on first glance.
Other options
An extension may also be a consideration, however this is a costly measure. If you are looking to achieve substantial profit from adding a room, then you may consider this approach. This works particularly well in locations where you have a substantial sized yard and where house space commands a premium price.
Remember to factor in the length of the construction, as this is going to be a bigger project than just putting in an extra wall. You’ll also want to be particularly mindful of where you place the extension – perhaps the extension itself becomes a living area and you can convert a current living area into a bedroom.
When considering the costs to undertake any renovation, remember to factor in time that your tenant may need to be out of the property if it is currently rented. You may need to provide them a rental discount or other sort of compensation, such as alternative accommodation, to keep them on-side through all the improvements. Similarly, you may not be able to increase the rent if they are not close to the end of their lease.
You also want to make sure that the addition of an extra bedroom “makes sense” to the property that you have. If you own a three bedroom, one bathroom house, an extra bedroom may see you considering putting in an extra bathroom as well.
Remember that, just as with most renovations, it’s likely to cost you more and take you longer than expected. Ensure you have worked out the best and worst case scenarios for your profit before undertaking any work and risking over capitalizing.
Presentation
Lastly, remember that presentation is everything when it comes to offering your property to prospective buyers or tenants.
Considering staging, either professionally or on your own, to show the functionality of the space. This is particularly important if a room is small, but fits the requirements. Place beds, furniture and other necessary items to show how you envision someone using the space. Perception is everything.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
        
</body></html>

How to: Increase value with an added bedroom

<html><body>
The Real Estate Institute of Australia (REIA) has said that they are looking to work with Australian governments to bring in an effective licensing system for the 64,700 real estate agents across Australia.
The National Occupational Licensing Authority (NOLA) was disbanded, due to a number of concerns with the mooted model and potential costs of the National Occupational Licensing Scheme, in December 2013. This was a move that the REIA agreed with.
REIA deputy president Morgan Shearer said that it failed to recognize the structure of the industry.
“REIA is already working with the Council for the Australian Federation so as to mimimise impediments to regulations that impede labour mobility. In that way, a licensing scheme that is efficient, whilst protecting the interests of consumers, will continue to evolve,” Shearer said.
The REIA provided Property Observer with a copy of their proposals. The proposals explain that despite the disbanding of NOLA, it appears the REIA is still looking to encourage a national licensing system. The REIA called for the abolishment of NOLA but the existence of national licensing in the past.
Some of the concerns that existed from the REIA over NOLA included the dropping levels of entry level and agent licensing that would result in increased consumer risk and a lowering of professional standards. Ongoing professional training to maintain licensing was also not included under the initial proposals, which was pointed out as a weakness of the original proposal.
Concurrently, a recently issued update about national licensing from Elizabeth Crouch, chair of the National Occupational Licensing Board, said that the decision from COAG not to pursure licensing is disappointing and a blow to the industry that Australia cannot afford.
Automatic mutual recorgnition is reportedly being suggested ahead of national licensing.
“NOLA had worked with the industry to resolve many of the concerns evident in the Decision RIS and proposed alternatives to the Standing Council on Federal Financial Relations. These alternatives reflected industry consensus on outstanding issues," said Crouch. This included the National Licensing Register, which looked to provide easy access for consumers and regulators to the details of licensees, and was at testing stage.
The abolishment of NOLA saw <a href="https://www.propertyobserver.com.au/news/national-occupation-licensing-authority-abandoned-real-estate-bodies-applaud/2013121566944" target="_blank">applaud from real estate groups in December last year</a>, prompting a welcome to the decision by REINSW' CEO, Tim McKibbin.
“We need national licensing, and the decision by COAG members to work together via the CAF and disestablish the NOLA from early 2014 is welcomed," said McKibbin.
The form that national licensing may take is still up for debate.
In recent news, a system of providing a 'Certified Practising' label for real estate agents through a new board has been introduced in <a href="https://www.propertyobserver.com.au/news/will-certified-practicing-label-help-real-estate-agents-shake-stigma/2014021967914?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">response to the poor reputation of the industry in the eyes of the public</a>.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
</body></html>

NOLA disbanded, but REIA looks to national licensing system

<html><body>
Almost one million Australians have opted for self-managed super funds, and many more are considering the option, however there are regulatory changes coming, according to ATO Deputy Commissioner Superannuation, Alison Lendon.
Lendon said that they are looking to work with trustees and advisors to help prepare them for several regulatory changes to be rolled out over the next year, and would be providing YouTube videos for trustees at the SMSF Professionals Association of Australia (SPAA) national conference this week as a result of the sector’s growth.
“With the popularity of SMSFs continuing to grow, we want to work with trustees and their advisors to improve compliance and make sure they are prepared for several regulatory changes that will be rolled out over the next year,” she said.
Proposed legislation giving the ATO new powers to address non-compliance by SMSF trustees will be a hot button topic at the conference.
Should this legislation be introduced, administrative penalties will apply to breaches of super law from July 1 this year. This will see trustees breaching this law potentially liable for penalties from $850 to $10,200 depending on which provision has been contravened.
“SMSF trustees should rectify any contraventions as soon as possible or they may face a penalty,” said Lendon.
“In some cases these changes will impact the way SMSFs operate so for the ATO our focus will continue to be on education and support to ensure trustees understand the rules,” she said.
The most common contraventions being reported to auditors are related to: Loans Borrowings Sole purpose breaches In-houseassets Arms-length and related party investments
Arms-length and related party breaches could include renting out a property in your SMSF to yourself or a friend or family member of a trustee.
Every Auditor Contravention Report will be reviewed by the ATO this year.
New data and payment standard reporting rules have also been changed.
<a href="mailto:jduke@propertyobserver.com.a">jduke@propertyobserver.com.a</a>
</body></html>

Potential SMSF changes bringing in penalties up to $10,200 discussed by ATO 

<html><body>
In a bid to drive professionalism and to raise the public perception of real estate agents, a new professional body, the ‘Certified Practicing Real Estate Agents’ or CPREA, has been created, announced founding chairman Geoff Baldwin.
Baldwin said that two constantly discussed topics among real estate professionals across the country are the public perception of the industry, and the seeming lack of will to develop a national industry owned real estate website.
“We all like to think of ourselves as being members of a “profession” and there is absolutely no logical reason why we can’t continually lift our actual and perceived standards along with our public perception. These will not be achieved however, unless a completely different and far reaching approach is introduced and adopted by the majority of Australian agents,” he said.
CPREA is the result of the last 18 months’ worth of work to correct the above challenges, and also looks to provide consistency across the country. “We are also currently forming a national CPREA steering committee that will provide ongoing representation for each state and territory and we invite interested agents to contact us to discuss,” he said. 
“A very significant investment has been made in getting this project to the point of launch however its ongoing growth and success will rely on progressive real estate people coming on board as members.”
Speaking to Property Observer, he said that one of his biggest frustrations over his 28 year career in real estate has been the public perception of real estate agents. During his time within the industry, he said that the standard has improved enormously.
“We’re giving agents the opportunity to show that and an opportunity to be recognised for the training we do. We’re looking at recognising that and allowing agents to shine if they want to,” Baldwin said.
Part of the approach is to assist agents from entry level, by providing an associate level option, to bring them in and help them to continuously improve as they continue their career.
Since the announcement on Tuesday, he said that the response has been amazing, particularly with Registered Training Organisations wanting to be involved.
Members will be reviewed every year to ensure they have kept up to date with training, if they have not achieved the necessary points then they will not retain membership.
Similarly, those with significant blemishes on their record may not be able to achieve membership in the first place, with Baldwin saying he has no qualms about restricting those that are not credible within the industry.
“We’ve made people meet certain standards, it’s a fine line,” he said. “It’s based on their experience, credibility, and [their desire] to improve their standing in the community.”
If there are any doubts, he says, they will not hesitate to withhold membership.
It predominantly recognises experience and educational efforts and accomplishments of agents, salespeople, property managers and others involved in the industry.
To obtain membership, a level of training will need to be achieved to maintain the status and to become a member. Initial accreditation will be based on current qualifications and experience, and they will then be allowed to use the CPREA letter after their name.
A national real estate website, offered free to CPREA members in the first twelve months and then prompting a monthly subscription fee, will be levied. It will progress to total ownership by industry participants, with no controlling shareholding.
“We understand of course that there are a myriad of new sites claiming to be the answer to our Industry’s online challenges however the critical key is that this site will be world class and it will be owned by our members.”
The site, <a href="https://www.roomeo.com.au">www.roomeo.com.au</a>, has been registered and trademarked, with an expectation that it will launch in ‘beta’ in April, and to the public in early May.
Baldwin sees this as a step towards creating a national representative body for the industry, saying that there are around 0.02% of real estate transactions that actually ever receive complaints against them.
Do you think this is going to assist in bringing up the standards and reputation of the industry?
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
</body></html>

Will “Certified Practicing” label help real estate agents shake stigma?

<html><body>
Providing retirement opportunities without actually being in a retirement village, Lifestyle Lyndarum in Wollert is a community of 155 new homes set to be constructed in the middle of 2014, for completion next year.
Aiming themselves at pre and post retirement Victorians over 55, the homes are priced from $235,900 to $367,750 and include one-bedroom, two-bedroom and two-bedroom with study options.
The <a target="_blank" href="/news">Wollert</a> gated community includes an on-site community manager, as well as an on site gardener to provide maintenance, as well as a $2.5 million clubhouse at the centre.
Other <a target="_blank" href="https://www.lifestylecommunities.com.au/">Lifestyle Communities</a> created based on this same formula are at <a target="_blank" href="/news">Tarneit</a>, <a target="_blank" href="/news">Brookfield</a>, <a target="_blank" href="/news">Cranbourne</a>, <a target="_blank" href="/news">Chelsea Heights</a>, <a target="_blank" href="/news">Hastings</a>, <a target="_blank" href="/news">Shepparton</a> and <a target="_blank" href="/news">Warragul</a>. There is another to open in <a target="_blank" href="/news">Geelong</a> in 2015.
“Even on a pension, homeowners can live in a luxury new home with a range of resort facilities,” said managing director James Kelly.
“We offer a real alternative for those who want to downsize from a large family home but wouldn’t consider a traditional retirement village until they were old and unable to care for themselves,” said Kelly.
“Not only does this allow you to free up money from the sale of the old family home, but it provides significant financial benefits because you don’t pay stamp duty on the purchase of your home, there are no council rates, body corporate fees or water rates.”
Other facilities included at these communities include gyms, bowling green, cinemas, billiard rooms, workshops, tennis court, heated indoor pools and computer centre.
Pets are welcome and there are secure boat and caravan facilities.
Brookfield, the first community, opened in 2004.
jduke@propertyobserver.com.au
</body></html>

Options to open in Wollert and Geelong providing "retirement village" alternative

<html><body>
Fires in properties are a source of fear for many, and it is a terrifying situation for any property investor or tenant to be in.
There have been a number of saddening stories in the past about the deaths of tenants due to smoke alarm failures, with <a target="_blank" href="https://www.propertyobserver.com.au/landlords/nsw-coroner-fired-up-about-smoke-alarms-in-investment-properties/2012050754591">a coroner in 2012 issuing a warning about smoke alarms</a> after a Hamilton, New South Wales tenant died in a 2010 house fire. According to Fire &amp; Rescue New South Wales, 144 deaths occured due to house fires between 2000 and June 2005. However, it doesn't appear that all investors have looked into upgrading their systems.
Tenants are responsible under legislation for replacing the batteries in fire alarms, while investors are responsible for providing a working alarm.
However, there are steps that can be taken to help reduce the risks and the potential for disaster or death that look beyond the minimum standards.
Property Observer headed out to <a target="_blank" href="/news">Penrith</a> in Sydney’s west to see a block that, over the weekend, had the complex's garage set on fire by local vandals. 
{yoogallery src=[images/stories/2014/02/19/pen]}
Source: Just Think Real Estate, Edwin Almeida
The Penrith area has seen some strong growth recently, 9.2% on units according to RP Data, bringing the median price to $283,500. The property in the photographs above is not unusual for the Penrith area.
A property manager from Just Think Real Estate, who manages one of the properties in the complex photographed above, explained earlier in the day that as soon as the fire was out and they had spoken with the tenant, they sent a cleaner in to help fix the property to make it habitable for the tenant. 
The way the garages are placed, and due to their internal access, saw black smoke pour through the garage door and into the apartment.
The strata managers, however, later said that the property manager should have waited until Monday to send in the cleaners, due to an issue of insurance. In fact, all of the other apartments were left until the Monday. The burnt areas are still black with smoke and soot, and there’s security tape up to keep people away from the burnt rubbish and mess. The ceiling and outside walls are blackened.
Even with the cleaners having been through, the smell of burnt rubbish, surprisingly close to the smell of cigarettes, inside the rental is still there to the point where it gets into the back of your throat. The tenant, relieved that the property had been cleaned, said there had luckily been little damage to her own belongings– just some dirt and ash on her car.
The ceiling in the laundry room had black marks and damage left behind, even after the initial clean.
{qtube vid:=9djPS1fMgTA&amp;feature=youtu.be}
The above video was created in conjunction with Oz Real Estate TV
However, the most terrifying situation for this rental – and, as a neighbor informed us, for two other apartments – was that the battery-operated fire alarm never went off, despite the entire property filling with smoke. We emphasize that the owner of this apartment had not provided a hard-wired battery, and they are not required to by law as the building is older than when the 2006 law was introduced. Up until this time, they believed the alarm to be working. Under current legislation, now it has been proven to be faulty, they will be required to install a new alarm up to the current standard.
The layout of the rental is such that if the fire had come through the garage, and the tenant had been in her bedroom, there may have been no easy way out of the property.
Which leaves us with a conundrum about the fire alarms, where the law asks you to do one thing, but perhaps common sense dictates another. Investors cannot necessarily stop vandals from setting fires, and cannot pre-empt situations outside of their control regarding candles left in rentals or similar, however they can equip their properties with the best fire alarm to ensure the safety and protection of their property and their tenant.
Just Think Real Estate’s Edwin Almeida said that a hardwired battery is the best option here. He estimates $300 for the installation.
He explains that while in new build properties these are a mandatory requirement, as of 2006 in New South Wales, the laws are not “back dated” to include existing properties and so investors need to be proactive and take the initiative to install them themselves.
In Queensland, for instance, the law explains that homes built before 1 July 1997 must have at least one 9-volt battery-operated alarm, however those after this time or that have been significantly renovated require a 240-volt hard-wired smoke alarm.
In Western Australia, from 1 October 2009, mains alarms need to be installed for properties available to rent, sell or hire.
Regardless of the minimum standards of the law, every investor should look to protect their property and their tenant as best possible.
jduke@propertyobserver.com.au
</body></html>

Vandals set the garage on fire, and three fire alarms failed to work: Is your tenant living in squalor?

<html><body>
While the Reserve Bank is highly likely to leave rates on hold at their March 4 meeting, and to continue on with this period of stability, it appears that some are expecting a hike by early 2015.
Bill Evans, chief economist at Westpac Bank, said that there is “virtually no chance” of an increase next month, and barely a chance that we will see a movement until the second half of 2014, despite dwelling approvals down, unemployment prospects up and a surprise inflation lift in December.
However, he said that at present, a rate cut is more likely than a rate hike.
“We are more concerned about the growth outlook and still see the prospect of rate cuts being more likely than the current expected rate hike scenario,” he noted.
Investors should be watching the forecasts for 2015 as the ‘key policy indicators’ for the Reserve Bank if they are hoping to pre-empt any movement.
This period of stability is widely expected, and should come as little surprise. Despite this, it appears that <a target="_blank" href="/news">fixing home loans as soon as possible is still the suggested approach</a>.
Earlier this month, <a target="_blank" href="/news">AMP Capital’s Shane Oliver also agreed that we’re unlikely to see a change until the end of the year</a>.
“We might see rate hikes in the December quarter, perhaps around October. Right now, the economy is still probably not strong enough for an interest rate increase,” he said.
RP Data’s <a target="_blank" href="/news">Cameron Kusher agreed with this</a>.
“Any increase in the interest rate won’t happen til the second half of the year at the absolute earliest – most probably late in the year,” said Kusher.
jduke@propertyobserver.com.au
</body></html>

Rate cuts still more likely than rate hikes: Westpac

<html><body>
Headlining figures have seen house prices climbing in recent months, and bubble talk has been rife. However, accounting and wealth advisory group Chan &amp; Naylor do not believe that we are in an overheating market, saying that the difficulty for affordability is around holding costs, rather than entry costs.
The 3% across the board increase, despite being much higher than this in some cities such as Sydney, is little concern compared to the result if interest rates rise above 6%, said Ken Raiss, a Chan &amp; Naylor director.
He pointed to the best situation being a future focus on interest rates kept at 6% and inflation no more than 2.5%.
He said that buyers’ ability to purchase and hold property circles around their ability to make repayments, with current near record interest rate lows ensuring this is far more of an easy commitment compared to 10 years ago when interest rates were doubled.
“However with an inevitable rise in interest rates as the economy improves and continued growth in property value, Australia’s productivity must improve. Failure for it to do so will result in less people being able to purchase or retain property,” said Raiss. He also pointed to investors’ impact on the property market as being overstated.
“The issue for value-oriented Mum and Dads is always going to be not what you get paid but what it gets you. Therefore a near-future rate rise may seem anathema to many, but combined with a good dose of sensible economic reform it epitomises the ‘tough medicine’ required to restore the country to pre-2007 fitness,” said Raiss, noting that this will be what negates the affordability crisis over the next 10 to 20 years.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au </a>
</body></html>

Interest rates, not increasing prices, to be behind affordability concerns: Chan & Naylor

<html><body>
Albert Park may be home to yet to be revealed The Block offerings, but there are many other properties on the market that might just overshadow these apartments, including penthouses that take our breath away.  
The Block’s location, on O'Grady Street, Albert Park, is <a href="/news">the site of one of the former Dux Cinemas</a> (pictured below).
{yoogallery src=[images/stories/2013/08/aug19albert]}
The median unit price in <a href="/news">Albert Park</a> is $630,000, a 25.5% drop over the 12 month period, with an average hold of 8.7 years.
Here are the current on-the-market highlights for Albert Park.  
The Biltmore  
{yoogallery src=[images/stories/2014/01/22/alb]} 
The Biltmore’s circa 1888 ‘The Penthouse’ is on the top of the list for Albert Park offerings. With views of Melbourne’s skyline, it manages to combine architecture, history and modern amenity. Property Observer <a href="https://www.google.com/url?q=https://www.propertyobserver.com.au/title-tattle/saatchis-of-street-art-list-1888-biltmore-albert-park-penthouse&amp;sa=U&amp;ei=eO0DU8GeMsjJrAeT4YG4BQ&amp;ved=0CAYQFjAA&amp;client=internal-uds-cse&amp;usg=AFQjCNHcZK1-HmU4J0q-mQrKHq0RXzFfQA" target="_blank">has previously reported about the penthouse</a> (pictured above) being listed.  
The building itself has 16 foot ceilings and archways, providing a majestic hallway entrance.  
An elevated main bedroom, with build in wardrobes, en suite, two terraces and a study, as well as three other bedrooms, and three bathrooms in total, it’s significantly sized.  
The north facing deck looks over a shared terrace and pool.  
It also includes a security entrance, separate private access, lift access, hydronic heating and two basement car parks.
<a href="https://www.realestate.com.au/property-apartment-vic-albert+park-115741943" target="_blank"> It is listed</a> by the edgy art collectors Sandra Powell and Andrew King, the so-called Saatchi’s of street art, and last sold at around $2.85 million in 2005.  
Article continues on next page. Please click below.
 
<hr class="system-pagebreak">
401 and 402 of 88 Beaconsfield Parade  
{yoogallery src=[images/stories/2014/02/19/alb1]}
These two top-floor penthouses (pictured above), on the fifth floor, include views of the beach and of Port Melbourne.
They each have outdoor entertainment areas, of 126 square metres or 140 square metres, as well as outdoor heated plunge pools.  
The <a href="https://www.realestate.com.au/property-apartment-vic-albert+park-111280095" target="_blank">four-bedroom, four-bathroom offerings</a> also come with garage spaces.
Images are artistic impressions.  
Article continues on next page. Please click below.
 
<hr class="system-pagebreak">
6/110 Beaconsfield Parade 
  {yoogallery src=[images/stories/2014/02/19/alb2]} 
Opposite Albert Park’s foreshore, and close to Victoria Street, <a href="https://www.realestate.com.au/property-apartment-vic-albert+park-115920259" target="_blank">this apartment</a> (pictured above) is a two-bedroom, 2.5 bathroom property on the first floor of the St Louis building.  
The master bedroom has a spa, a walk in wardrobe and a powder room.  
It has a private terrace that overlooks the beach, and is accessed through double French doors – a stylish inclusion.  
Intercom, air conditioning, hydronic heating and ceiling fans are all included, along with a basement car park space.
The building itself includes a gym, steam room and lap pool, as well as gardens.  
It last transacted for $445,000 in 1999, according to RP Data.  
Article continues on next page. Please click below.
 
<hr class="system-pagebreak">
2/44 Mills Street  
{yoogallery src=[images/stories/2014/02/19/alb3]}
<a href="https://www.realestate.com.au/property-apartment-vic-albert+park-115992075" target="_blank">This two-bedroom, two-bathroom apartment</a> (pictured above) on the first floor includes a main room with an ensuite and built in wardrobe.  
It also includes the special feature of a rock garden terrace. It has a private ground level entrance, air conditioning, video intercom, a storage cage and an undercover car space.  
RP Data notes that it last transacted for $654,000 in 2010.
{module Which of these Albert Park homes would you live in?}
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
  
</body></html>

What are The Block Albert Park contestants up against?

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

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News