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Across the board, it appears that economists expect no change in interest rates tomorrow, with nine economists surveyed by finder.com.au expecting that the Reserve Bank will hold.
Despite this, and <a href="/news">Property Observer’s recent exclusive finding the same agreement</a>, finder.com.au’s Michelle Hutchison says that there could be a cut on the cards later this year.
“It’s unusual to see variable home loan rates move outside of the Reserve Bank’s cash rate changes, with the latest lender HSBC to drop its variable rates this month. This shows that anything can happen this year as it’s now harder to predict when variable rates will move and by how much,” Hutchison said.
“But with the home loan war heating up, it’s good news for borrowers who can capitalise on the competition by comparing home loans and switching to cheaper deals, particularly when borrowers are taking on more debt.”
With the national average home loan size up 6.4% since November 2011 when compared to November 2013 using Australian Bureau of Statistics data, the highest loans in the country are in New South Wales, at $358,800, a 10% increase over the same period.
A 0.50% cut to interest rates would bring the average variable rate to 5.34%, saving $110 per month, or $39,600 over the life of the loan.
“Don’t get caught up in rate cuts because it’s the actual interest rate that matters. There are currently 33 variable rate loans under 5%, so it’s more important than ever to make sure you compare home loans regularly this year,” she said.
Read <a href="tags/rba" target="_blank">more about rate decisions here</a>.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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jduke-EHk3XBmHkn

Economists unanimously expect no rate change tomorrow, but cut could be on the cards this year: Finder

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The Tenants Union of Victoria (TUV) says that there is an ongoing affordability crisis facing low income tenants, as demonstrated in the latest Report on Government Services. As a result, they have said that the Commonwealth Rent Assistance should be increased.
Currently, this assistance is provided to those receiving Centrelink payments – around 1.3 million renters in 2013.
Of those receiving this assistance, 40% remain in ‘housing stress’, notes the report. This definition is based on spending 30% or more of income on housing costs. Without the assistance, this number would rise to 67% in stress.
In Victoria, over 38% suffer from ‘housing stress’, and within Melbourne this figure sits at 43%.
Policy and liaison worker, James Bennett, from the TUV, said that housing is the largest single cost for most people on low incomes, and without this assistance many would be struggling or homeless.
“Rents everywhere keep increasing and the proportion of people eligible for the maximum rate of CRA keeps rising. The TUV believes CRA should be increased then indexed to keep pace with median rents,” he said.
“CRA is a large expenditure for the Federal Government, around $3.6 billion annually, that will undoubtedly come under scrutiny from the Commission of Audit and the upcoming Welfare Review. We urge these bodies to focus on the value CRA delivers, not just the cost. Any reduction in CRA will place a greater burden on other parts of the system.”
Property Observer recently reported on <a target="_blank" href="https://www.propertyobserver.com.au/victoria/not-for-profit-real-estate-agency-to-launch-this-year/2014012167271">a new not-for-profit real estate agency opening in Victoria, the first of its kind</a>. It is set to launch later this year as a result of many of these same issues, under the name 'HomeGround'.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Rent jump has Tenants Union of Victoria asking for rent assistance increase

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After a long weekend, it has been a week absolutely packed with real estate news and changes. How closely were you watching this week?
 
1) What did our entire panel of experts predict for the Reserve Bank movement next Tuesday?
2) Scammers are getting more technologically savvy, and there's a new letter being sent to international landlords trying to trick them into sharing private details. Which government department's name are they using?
3) Which capital city's property market (particularly inner city units) is expected to soar, before pulling back around 2015/2016?
4) A gorgeous trophy property was recently sold in Mittagong in New South Wales' Southern Highlands for $4.95 million. The rural offering has locals believing that it has been bought by a famous couple - who are they? Hint: Think about horses
<img class="decoded" alt="https://www.propertyobserver.com.au/images/stories/2014/01/28/mit/mittagong_0009_10.jpg.jpg" src="/images/stories/2014/01/28/mit/mittagong_0009_10.jpg.jpg" width="400">
5) The Block started this week, and while it had a lot of us watching it failed to beat another show when it came to debut ratings. Which show was this?
6) Hing Loong, the apartment block pictured below, has construction beginning and is ready for sales. However, where is it located?
<img class="decoded" alt="https://www.propertyobserver.com.au/images/stories/2014/01/29/chin/chinatwon_0000_exterior_01.jpg.jpg" src="/images/stories/2014/01/29/chin/chinatwon_0000_exterior_01.jpg.jpg">
7) We were recently sceptical about a claim that said investors and home owners could spend a few thousands dollars and add themselves up to $75,000 worth of value by doing this one thing. What was this?
8) Over the past year in Victoria, Robert Larocca told us that the median rent had increased by how much for a house? Bonus points if you can remember the amount for a unit.
See over page for answers
 
 
 
 
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THE ANSWERS
1) <a target="_blank" href="/news">No change.</a> However, some differed on their opinion of what might occur in the future.
2) <a target="_blank" href="https://www.propertyobserver.com.au/news/ato-scam-alert-fake-landlord-tax-exemption/2014013067441">The Australian Taxation Office (ATO)</a>
3) <a target="_blank" href="https://www.propertyobserver.com.au/queensland/investor-warning-brisbane-apartment-prices-expected-to-soften-in-2015/2016/2014012967432">Brisbane</a>
4) <a target="_blank" href="/news">Gai and Robbie Waterhouse</a>
5) <a target="_blank" href="https://www.propertyobserver.com.au/news/cheesy-but-mkr-beast-the-block-loft-renovation-opening-night-ratings/2014012767377">My Kitchen Rules</a>
6) <a target="_blank" href="https://www.propertyobserver.com.au/developments/construction-begins-at-sydney-chinatown-development-hing-loong/2014012867404">Chinatown, Sydney</a>
7) <a target="_blank" href="https://www.propertyobserver.com.au/victoria/analysis-can-laying-turf-really-increase-your-propertys-value-by-%2475000/2014012867406?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=polloftheday">Laying turf</a>
8) <a target="_blank" href="https://www.propertyobserver.com.au/victoria/melbourne-rental-increases-only-moderate-compared-to-sydney-and-yields-have-stabilised/2014012967390?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=ourobservers:adviceandanalysisforreaders">$10</a> (and $8 for a unit!)
news@propertyobserver.com.au
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Property Trivia: Reserve Bank predictions, unit markets jump, celebrity Mittagong sale

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The Real Estate Institute of Australia’s (REIA) proposals to the 2014/2015 Federal Budget are urging for capital gains tax not to be increased, for an annual review of first home owners grants and for first home buyers to be able to use a portion of their superannuation for a home.
The president of the REIA, Peter Bushby, said that they had 10 proposals for the budget that are aimed at continuing development and productivity.
“We want to see a marked improvement in the standards of delivery of vocational education and adequate data on the supply/demand imbalance of housing for informed decision-making by policy makers and stakeholders,” he said.
Pointing to the ABS latest data’s suggestion that superannuation in 25 to 34 year olds’ accounts sits at an average of $15,000, with $32,000 for 35 to 44 year olds, they noted that allowing buyers to access this would assist with a deposit.
“That proportion could be either a fixed percentage of the total or their voluntary payments over and above the super guarantee contribution. Superannuation and home ownership are both components of a retiree’s “nest egg” and not competing products. By buying earlier in life retirees have every prospect of having a higher equity on retirement and a larger “nest egg” on downsizing,” the submission says.
They said it would assist to reverse the declining trend of home ownership, and that it has been successful in Canada, New Zealand and Singapore.
Property Observer recently took the Canadian first home buyer concept to the experts to ask whether this could really be a solution. You can <a href="https://www.propertyobserver.com.au/international/exclusive-canadian-home-buyer-plan-the-experts-have-their-say/2013121766982" target="_blank">see their responses here</a>.
They seek the consideration from the government on the following:
• Ensure the availability of reliable data on housing demand and supply to formulate appropriate policies and to monitor their effectiveness
• All states and territories uphold the initial intent of the Intergovernmental Agreement in Federal Financial Relations Schedule A, that assistance to first home buyers will be “uniform” and that “an eligible home will be new or established”
• Review the amount of the First Home Owner Grant annually to maintain relativity with house price movements
• Allow first home buyers access to their superannuation for the purchase of a home
• Retention of current arrangements for negative gearing of property investments
• No increase in Capital Gains Tax on property investments
• Abolish stamp duty on property transactions in favour of an efficient source of revenue for states and territories
• Improve the supply of housing for social housing tenants transitioning to private rental by utilising private investment
• Monitor HAF and NRAS to observe its effects on housing supply and to conduct a review which considers additional measures to bridge the demand/supply imbalance
• Ensure the Australian Skills Quality Authority (ASQA) funding is adequate to ensure nationally approved quality standards are met for vocational education and training.
The submission <a href="https://www.reia.com.au/userfiles/PRE%20BUDGET%20SUBMISION%202014-15.pdf" target="_blank">can be read online in its entirety</a>.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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REIA urges government to allow FHBs to dip into superannuation for a home

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It’s cyclone seasons for some unfortunate residents in Australia; however, the recovery process can be smooth for those who are prepared.
Archers Body Corporate Management North Queensland regional manager, Stephen McCulloch, said that more than 75% of their clients between <a target="_blank" href="/news">Townsville</a> and <a target="_blank" href="/news">Airlie Beach</a> would be in some way affected.
<hr>
YOU MIGHT ALSO WANT TO READ:
<a target="_blank" href="https://www.propertyobserver.com.au/news/suncorp-receives-4500-insurance-claims-as-anxious-queensland-and-northern-nsw-homeowners-await-rising-flood-waters/2013012959009">Suncorp receives 4,500 insurance claims</a> as anxious Queensland and northern NSW home owners await rising flood waters
<a target="_blank" href="https://www.propertyobserver.com.au/finance/reducing-queensland-cyclone-insurance-premiums-independent-strata-study/2013102865992">Reducing Queensland cyclone insurance premiums</a>: Independent strata study
<hr>
The rebuilding and repairing process, as well as navigating insurance, will be the challenge for those ahead, said McCulloch.
“Insurance and the cost of repair has been a big issue for unit owners and bodies corporate in North Queensland since Cyclone Yasi,” he said.
“Depending on the type of body corporate, most policies will cover the structure of the building including internal fixed cupboards and walls but will normally exclude cover for carpets and air conditioners.”
Some policies may exclude flood cover, he noted, unless your body corporate chooses to include it. Ensure you check the policy document of your scheme’s insurance so there aren’t any surprises around what is and isn’t covered.
Tips for unit owners and bodies corporate post-cyclone damage: 
1) Act quickly – secure trades people and contractors to repair any damage as soon as possible. 2) If trades people aren’t immediately available, but the damage is urgent, contact the SES or other emergency services. 3) Use emergency provisions within the Body Corporate Act to authorise expenditure where appropriate. 4) Lodge insurance claims quickly to ensure any necessary assessment is carried out as soon as possible and refunds are received expediently. 5) Communicate with owners and occupiers in the complex, clarify the extent of the damage and what actions are underway, provide updates regularly and encourage owners to seek guidance and advice from the body corporate. 6) If the building is evacuated, determine an effective way to remain in contact with owners and occupiers. 7) Mr McCulloch said after the event it was a good idea to integrate these steps into an emergency procedure to mitigate damage if such an event were to occur again. 8) Alert occupants to check and secure any loose items on balconies. Ensure all outdoor furniture is secured. 9) Review past flood levels and consider what may be damaged if such levels are experienced again. Can assets be relocated to a higher floor? Can the lift be reprogrammed so it does not automatically descend into the flood waters upon power loss? 10)  Inform residents to prepare an emergency kit with a torch, battery operated radio, spare batteries, emergency contact details and first aid materials. 11)  Review existing insurance policies and ensure adequate cover is in place. 12)  Formulate a cyclone mitigation plan to be distributed to all owners and occupiers and consider what action will be taken in the event of a future emergency.
<ol></ol>
Source: Archers Body Corporate
 
jduke@propertyobserver.com.au
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12 steps for property owners in cyclone areas: Tips from body corporate

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New home sales recorded in December ensured that 2013 was a year of strong recovery, with the first annual increase seen in five years, according to new statistics from the Housing Industry Association (HIA).
HIA economist, Diwa Hopkins, said that new home sales had hit a low ebb in 2012, with the key now to keep the strong numbers through 2014. Despite this uptick, however, it does appear that there were still some negative numbers on the books.
The HIA’s New Home Sales report, which surveys Australia’s largest volume builders, saw that the total seasonally adjusted new home sales eased by 0.4% in December 2013, driven by a 6.6% decrease in multi-unit sales. However, detached house sales increased by 0.9%. Over the entire year, new home sales rose by 14.4%.
“During the final quarter of 2013, aggregate new home sales climbed by 6.3 per cent to reach a level not seen since mid-2011,” said Hopkins. This was during the time at which new sales activity was boosted by government stimulus.
“Total new home sales were largely unchanged in the month of December, however, the broader trend shows a healthy profile of recovery throughout 2013 and the underlying details are also fairly encouraging,” said Hopkins.
“The aggregate monthly decline was due to an unsurprising pull-back in multi-unit sales, following the previous month’s very strong result. Looking at detached house sales, the growth in this segment has broadened in its reach, with four out of the five surveyed states showing monthly and quarterly increases in December 2013,” she said.
Private detached house sales increased by 22.5% in South Australia, 7.3% in Western Australia, 5.8% in New South Wales and 1.5% in Queensland. However, detached house sales fell 13.4% in Victoria over the December month.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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New home sales see strength not seen since 2008: HIA

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Late last year, in December, the Senate referred an inquiry into affordable housing to the Senate Economics References Committee. Submissions are being sought, until 25 March 2014.
Already, there have been six comprehensive submissions. Jonathan Chancellor <a target="_blank" href="/news">recently shared his insights into this inquiry</a>. 
Here is your cheat sheet as to what is contained within the six current submissions. To see them in full, with their supporting evidence, head to the <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Affordable_housing_2013/Submissions">Parliament of Australia website</a>.
While the results of this inquiry are unclear, with many in the past being criticised as having failed, it's worthwhile acknowledging that should some of the proposals be considered they would have significant impacts on property owners, investors, tenants and prospective first home buyers.
1) Grace Mutual Limited, Andrew Tyndale, Director - a not-for-profit entity designing investment mechanisms to attract wholesale funding into the social sector, in particular in relation to the National Rental Affordability Scheme. To date, we have assisted in the financing of more than 1,000 houses under NRAS
Key points about NRAS:
- Brought about public awareness of affordable housing
- Resulted in a significant number of affordable dwellings being constructed – at least 20,000 new affordable rental dwellings, positively impacting 30,000 tenants.
- Unclear, complex and poorly drafted regulations have been an issue
- Too much NRAS has been wasted on university student housing (at least 4,000).
- State government, ATO and associated treatment has been inconsistent.
- Under-resourcing of application reviews resulting in loss of projects.
- NRAS offers support incentives to build, but the greatest need for developers is capital (debt and equity).
Proposal: A 10-year, interest-free loan would be preferential to NRAS-like income support. This would be implemented by an Affordable Housing Finance Corporation.
QUOTES YOU DON’T WANT TO MISS:
“NRAS offers income support incentives to build new affordable rental properties, but the greatest need for developers and housing providers is capital - both debt and equity.”
Article continues on next page. Please click below.
 
 
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2) Saul Eslake – Economist, Member of National Housing Supply Council
-       Home ownership has declined dramatically among the younger generations.
-       The National Housing Supply Council estimates a shortage relative to the underlying demand in the order of 228,000 dwellings at June 30, 2011.
-       We have declining family sizes, family breakdowns and an ageing population, all contributing to an increased number of stock needed to house the same number of people.
Two principal reasons for the failure of the stock of housing to grow:
- Direct contribution of the public sector to housing stock has declined.
- State and local government planning schemes and policies around the provision of suburban infrastructure have made it difficult for the private sector to provide supply – particularly of the affordable variety. 
Points of importance:
-       Negative gearing should be changed, although Eslake does not argue it should be abolished entirely.
-       Only 40% of interest, and other expenses, associated with investments should be allowed as a deduction.
-       Capital gains should be taxed at 60%, rather than 50%.
-       This would not just be for property investments, but for all investors.
-       Could be ‘grandfathered out’.
PROPOSALS:
<ol>
<li>
Abolish all existing policies serving only to increase prices of existing dwellings
</li>
<li>
Redirect the funds thereby saved (estimates included in the original article) towards programs funding the construction of new dwellings (such as through developer grants or contributions).
</li>
<li>
Expand or replicate programs such as WA’s ‘Keystart’ scheme.
</li>
<li>
Change the taxation of holdings and transactions in land, by replacing stamp duty on land transfers with broader based land taxes and potentially higher rates for undeveloped vacant land in urban areas.
</li>
<li>
A more ‘holistic’ view of urban infrastructure needs to be taken as this will open up Greenfields developments.
</li>
<li>
Revisit current models of financing for infrastructure and services in ‘greenfields’ housing estates to reduce the upfront charges.
</li>
<li>
Reduce the cost, complexity and regulatory uncertainty associated with ‘brownfields’ and ‘infill’ developments.
</li>
</ol>
QUOTES YOU DON’T WANT TO MISS:
“John Howard – who could ‘do the math’ better than most – often used to say that no-one ever came up to him complaining about the increase in the value of their home, or asking him to do things that would reduce the value of their homes so that younger people could buy them more readily.”
“It’s hard to think of any government policy that has been pursued for so long, in the face of such incontrovertible evidence that it doesn’t work, than the policy of giving cash to first home buyers in the belief that doing so will promote home ownership. And it’s pretty obvious why. Cash grants and other forms of assistance to first-time home buyers have served simply to exacerbate the already substantial imbalance between the underlying demand for housing and the supply of it.”
“Another long-standing policy which I have long argued has not only failed to deliver on its oft-stated rationale of boosting the supply of housing – in this case for rent – but has actually exacerbated the mis-match between the demand for and the supply of housing, as well as having distorted the allocation of capital, and undermined the equity and integrity of the income tax system, is so-called ‘negative gearing’.”
Article continues on next page. Please click below.
 
 
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3) Steve Walker
Western Australia focus.
State governments are at odds amongst themselves and the federal government over funding and the approach, while the NGO/NFP and private sectors are doing it their own way, assisted by funding from both.
Little funding is being sought from direct public investment (other than NRAS-type tax incentives), which could be improved upon.
There are a number of different bodies and representative groups, but little cooperation among themselves.
Housing needs to be looked at more holistically, as a blend of both financial and social gain, to ensure that it has both aspects.
Consolidating the 230 smaller community housing organisations under one structure would be a good start. A co-operative arrangement is a potential opportunity.
QUOTES YOU DON’T WANT TO MISS:
“Breaking down all the rhetoric and jibber jabber the solution is cash based, of which very little is currently available and/or budgeted for in growing capacity for social/affordable housing!”
“Providing shelter is a ‘Band-Aid’ fix, what we really need to be understanding of is the root cause, why are these Australians in need, what has caused their need to be extreme and can we do anything about it and the drain caused on government funds? Can we teach people to be more self-supportive?”
Article continues on next page. Please click below.
 
 
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4) Authorship withheld
Government policies are negatively impacting on land prices through the current tax regime, which facilitates property speculation, land supply policies are not matching demand, lax lending standards are casually supervised and a policy of rapid population growth is not matched by provision of infrastructure services.
-       A population policy needs to be articulated
-       The annual cost to the government when looking at tax exemptions for home owners and losses to investors needs to be looked at
-       Fully privatising land supply or using forced land acquisitions against land-banking entities could improve supply
-       Land value tax can replace existing income/consumption taxes such as stamp duty (see Henry Tax Review)
-       Vacant land and speculative hoarding – should be taxed more
-       Tax system facilitates speculation and needs revision (negative fearing, capital gains discounts, interest only)
-       Interest only loans, high leverage loans and similar should be reviewed
-       FHB assistance is inflationary
-       SMSF loans for residential property have a potential danger
-       The real estate industry needs to be more accountable
-       Allowance of temporary/student visa holders to buy existing property needs explanation
PROPOSALS:
1. Government draft a population policy so as to properly manage resource and administrative issues which includes housing and urban development;
2. Allow negative gearing claims for new construction only, apply grandfathering provisions to negative gearing for existing dwellings;
3. CGT discount, as recommended by AFTS, move to "more neutral personal income tax treatment of private residential rental investment . . through a 40% discount on all net residential rental income and losses, and capital gains”;
4. Land value tax to replace stamp duty, income and consumption taxes;
5. Increase land taxes on vacant land or vacant property held by absentee landlords for more than say two years;
6. Removal of first home buyers assistance;
7. ABS publish data related to land price inflation as part of the CPI;
8. ABS gather genuine vacancy rate statistics so as to reveal degree of speculative land hoarding in major cities;
9. APRA reports to the Senate on the inflationary impact of interest-only loans, equity loans and high LVRs on land values;
10. Commission a study into land-banking, urban planning and the role of government in facilitating affordable land releases;
11. Commission a comparative study into the benefits of private industry assuming control of land releases versus a German style system of meeting demand via “compulsory acquisition” from land-banking entities;
12. Legislate that SMSFs only use full recourse loan arrangements on low LVR;
13. Ban the use of vendor bids at property auctions;
14. Mandate that property sales commission be set at maximum of 1%;
15. RE agents update a government website designed to capture property sale price data and this data is made publically available, as are share prices;
16. Proof of Australian citizenship or visa status to be lodged at all sales;
17. FIRB publishes data on all sales to foreign buyers of residential real estate;
18. Appropriate government minister to appear before the Senate and explain how allowing temporary residents and foreign student visa holders to purchase existing residential real estate improves housing affordability;
19. Politicians submit to the public record the subject of talks they have with property lobbyists, registered and unregistered;
20. Senate inquiry into government policies, as they relate to land supply, demand and pricing is in order. Such an inquiry should include a focus on the effect of real estate industry lobbying on policy formulation.
QUOTES YOU DON’T WANT TO MISS:
“An inquiry into affordable housing is really an inquiry into affordable land.”
“This is the third Inquiry in 10 years to directly look at housing affordability. After reviewing the work of earlier inquiries and other literature, it is difficult to believe this matter is being taken seriously.”
Article continues on next page. Please click below.
 
 
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5) Home Loan Experts, Otto Dargan, Mortgage brokers
- Developers face barriers to build:
Cites AMP’s Shane Oliver, regarding the government’s need to work to release more land to build on and the easing of restrictions.
- Negative gearing should not be abolished:
An estimated 4.5 million Australians are renting, and the abolishment would result in higher rental rates. The government would need to spend more on public housing to accommodate these people.
- APRA’s new LVR policies are too restrictive:
Policy constraints current exist on the banks, and if they are to follow New Zealand’s maximum LVR reduction it will make it harder for first home buyers to enter the market as many tend to borrow around 90%.
- FHOG is effective:
In fact, it should be extended to a full exemption from stamp duty for new buyers.
QUOTES YOU DON’T WANT TO MISS:
“Limiting the LVR to 80% would require buyers to save up double the amount of deposit to make a purchase.”
“As mortgage brokers we see that FHOG is very effective in helping new buyers buy their first homes.”
Article continues on next page. Please click below.
 
 
<hr class="system-pagebreak">
 
6) Bob Day - is a former National President of the Housing Industry Association. He was elected as a Senator for the State of South Australia at the 2013 federal election.
The reduction in home ownership has caused losses in other ancillary industries, such as soft furnishings and appliances. Higher costs are causing people to spend more money on housing, and less in other areas such as education and health.
First home ownership is about a start in the market, and it can really only happen on the urban fringe.
The first, major, step in restoring affordability will be getting the government to step aside from a land management role. This should allow the natural supply/demand forces to return to the market as the government has been too restrictive.
PROPOSALS:
-       Urban growth boundaries need to be removed, as well as the concept of a number of years supply of land available – let the public decide.
-       Upfront infrastructure costs need to be removed and it should be seen as a pay as you use through your rates concept, rather than getting those who can least afford it, the first time buyers, to pay upfront. In some capital cities these costs, taxes, fees and charges added more than $100,000 to the price of a finished allotment.
-       The Productivity Commission’s failure’s consequence was that many state governments were stifling land supply through their planning/regulatory mechanisms to make money.
-       Land development and housing industries have not been inherently incapable, and are ready and willing to bring on substantial amounts of new stock, they just need the land.
QUOTES YOU DON’T WANT TO MISS:
“The capital structure of our economy has been distorted to the tune of hundreds of billions of dollars and for those on middle and low incomes the prospect of ever becoming homeowners has now all but vanished.”
“It was the best of times, it was the worst of times. For those fortunate enough to own their homes, 1995 - 2005 were boom times as personal wealth skyrocketed and family homes doubled in value. It was a very different story however for those on low and middle incomes stuck on the rental treadmill, seeing their hopes of buying their first home disappear into the mist.”
“The tragedy is that they arrived at them too late. One only needs to consider the exponential demand for mobile phones, laptops and plasma televisions that arose during the same period to realise that increased demand does not necessarily lead to an increase in price. In the case of mobile phones, laptops and plasma televisions the rise in demand vastly exceeded the demand for housing, however due to an even greater supply of these goods their prices actually fell - in some cases by more than half.”
“There was, and still is, nothing "inherently" restricting the supply of new housing in Australia.”
jduke@propertyobserver.com.au
 
 
 
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The Senate's inquiry into affordable housing: Six submissions

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There is a drought of properties in this country, and before we get started on the housing supply debate let me be clear - I'm talking about rental properties that are pet-friendly. Finding a rental that ticks the boxes, fits into your budget and is near enough to work to be a survivable commute is stressful enough, let alone when you're carting around a dog or a cat or more with you.
<blockquote class="twitter-tweet" lang="en">
Happy Chinese New Year of the <a target="_blank" href="https://twitter.com/search?q=%23horse&amp;src=hash">#horse</a>. May all out <a target="_blank" href="https://twitter.com/search?q=%23animals&amp;src=hash">#animals</a> be <a href="https://twitter.com/search?q=%23happy&amp;src=hash">#happy</a> and peaceful! <a target="_blank" href="https://twitter.com/search?q=%23cny&amp;src=hash">#cny</a> <a target="_blank" href="https://t.co/Y8G8Fnw5J2">https://t.co/Y8G8Fnw5J2</a>
— Rent With Pets (@RentWithPets) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/RentWithPets/statuses/429016822436737025">January 30, 2014</a>
</blockquote>
Property owners might say that those people renting shouldn't have pets, however someone can be plunged into renting at any time in their life, either through work or for loved ones. They may have also happily lived in a rental with a pet and are now looking to move on - or are required to by their landlord - and are now stuck in the described dire situation.
Animals can be destructive, as can people and especially, as anyone who has spent time around an infant will know, as can children. The reason why so many landlords are scared to note the property down as 'pet friendly' or to allow animals into their investments is not always valid. Are you a landlord that does not allow pets?
It is understandable for certain properties. Those with carpets throughout might say outdoor animals only, meanwhile short-term rentals might also think it isn't worth the time of day.
A Facebook Page I have found myself spending far too much time on - <a target="_blank" href="https://www.propertyobserver.com.au/https://www.facebook.com/pages/Pet-Friendly-Rental-Properties/701267893240868?fref=ts">Pet Friendly Rental Properties</a> - is, while great in its effort to connect desperate animal lovers with homes, a paralysing example of how many pet owners are struggling to find somewhere, anywhere, to live. These are all potential tenants that may be fantastic, should be put through the same screening, and would perhaps be perfect for that property you have sitting vacant.
Giving up your pets is really not an option, just like giving up a baby isn't an option. In 2010, the RSPCA, using Australian Companion Animal Council data, noted that 63% of the 7.5 million households in Australia own a pet or pets and that as a nation we have the highest pet ownership in the world. Will this decline if our population of renters is on the increase?
Try the grand experiment yourself. Head to a listings website and type in your suburb of choice, the maximum price you are able to pay, and search. Then click 'pet friendly' and watch all your options disappear before your eyes. Very disheartening for many renters.
So what are tenants forced into doing? Turning up to inspections for non-pet friendly noted properties and slipping the fact into conversation, hoping that this property manager won't mind... or lying, knowing that the investor and property manager cannot necessarily kick you out for having a pet at the rental home even if you've claimed no pets on the tenancy form (yes, the cat is out of the bag, pun intended). In particular, I refer to the Tenants Union of Victoria, which <a target="_blank" href="https://www.tuv.org.au/articles/files/resources/Pets_FS_R_062009.pdf">notes the following</a>: "The Tenants Union believes that you cannot be evicted unless your landlord can prove that your pet is causing a nuisance, damaging the property or endangering the safety of neighbours. However your landlord may give you a Notice to Vacate for simply having a pet. We believe such a notice is invalid."
There are risks to this, and an ethical crisis on the side of the tenants, but when it comes to the choice between losing a beloved animal and lying to a faceless landlord... we all know which way the tenant is going to go.
I'll admit to falling on the animal-loving side of the fence where I find it hard to imagine the concept of giving up a pet, however surely there's a win-win here? I come from an extended family of pet owners, and none of them have houses in disrepair from their animals. In fact, some of them are renters (and can attest to the difficulties of finding a good rental as well), and have their homes in absolutely immaculate condition - in particular, my sister, whose landlord allows her to have a pretty big staffy in her home, and is one of the neatest people I've ever known.
Noise is certainly a valid concern, and something that should rightfully be considered by landlords and property managers - particularly if hoping to lease a unit or apartment, or even a house where the neighbours are close by. At the very least, this is worth a conversation - cats and guinea pigs are unlikely to be noisy, so a blanket "no pets" rule may quickly lose you a good tenant.
One regularly suggested concept is the 'Pet Profile' or a 'Pet Resume' that covers all of their vaccinations and behaviours. Perhaps having a vet or an animal behavourist assess the animals would be a good opportunity to level the playing field. This <a target="_blank" href="https://www.acac.org.au/pdf/renting_landlordguide.pdf">pamphlet from the Australian Companion Animal Council</a> might be a good place to start, and it provides questions that property managers and landlords can ask tenants with pets.
A 'Pet Bond' is also often suggested - and yet isn't necessarily legal. In New South Wales, "Higher bonds cannot be charged for tenants with pets, children or for any other reason," according to Fair Trading.
<a target="_blank" href="https://www.commerce.wa.gov.au/consumerprotection/pdf/publications/renting_out_your_property.pdf">Western Australia Department of Commerce</a>: "Generally the security bond must not be more than four times the weekly rent and if you permit the tenant to keep cats or dogs on the property, an additional amount of no more than $260 (regardless of the amount of pets) can be charged as a pet bond to meet the cost of fumigation at the end of the tenancy." (There are certain conditions that can, however, restrict this.)
If this was made legal in other states and territories, would it make landlords more comfortable with the situation?
 
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Letter from the editor: The drought of pet-friendly rentals

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A new scam was detected yesterday offering landlords living overseas the opportunity to claim a tax exemption on rental income.
New South Wales' Fair Trading Minister, Stuart Ayres, is warning consumers about these scams and is urging investors to report them to the Australian Taxation Office (ATO).
“The CEO of the Real Estate Institute of New South Wales Tim McKibbin reported receiving the scam email, which was sent to the REI helpline,” said Ayres.
“The scam email advises agencies managing landlords to forward forms to them to complete and return to the scammers.”
The forms require detailed personal information - including photocopies of passports and mortgage account numbers.
Tellingly, the covering letter is poorly written with grammar and spelling errors.
“It is designed to harvest details from real estate agents about Australian properties they manage on behalf of non-residents,” he said.
“The scammers may then seek to assume the identities of non-residents and sell their properties without the real owners’ knowledge.”
Fair Trading had issued a warning about the same scam in July 2013, after it was reported by a real estate agent in Lennox Head.
“The ATO confirmed the scam to Fair Trading and that identical fake Her Majesty’s Revenue and Customs (HMRC) letters had been sent to real estate agents in the United Kingdom since at least March 2012,” he said.
A copy of the fake ATO letter is available on the Fair Trading website, and is replicated below:
<img width="470" height="665" src="/images/stories/2014/01/30/Page_1.png" alt="Page_1">
 
<img width="470" height="665" src="/images/stories/2014/01/30/page_2.png" alt="page_2">
In some cases, the HMRC references have not been replaced with the ATO. A similar scam was also identified in Western Australia in 2012.
ATO chief technology officer Todd Heather said that scammers are getting increasingly sophisticated with their methods. Property Observer notes that the scammer does, however, appear to use a fax machine.
“This scam, as with many others reported to the ATO, asks people for their personal details so they can likely commit identity theft and other types of fraud,” said Heather.
“We have seen this scam over the past two years and have dealt with it by informing real estate industry associations and asking them to warn their members.”
Fair Trading has provided the following tips:
· Don’t respond to offers, deals or requests for your personal details. Stop. Take time to independently check the request or offer.
· Never send money or give credit card, account or other personal details to anyone who makes unsolicited offers or requests for your information.
· Don’t rely on glowing testimonials: find solid evidence from independent sources (not those provided with the offer).
· Never respond to out of the blue requests for your personal details.
· Always type in the address of the website of a bank, business or authority you are interested in to ensure you are logging onto the genuine website.
· Don’t open unsolicited emails.
· Never click on a link provided in an unsolicited email as it will probably lead to a fake website designed to trick you into providing personal details.
· Never use phone numbers provided with unsolicited requests or offers because they could connect you to fakes who will try to trap you with lies.
· Don’t reply to unsolicited text messages from numbers you don’t recognise.
· Always look up phone numbers in an independent directory when you wish to check if a request or offer is genuine.
· Don’t dial a 0055 or 1900 number unless you are sure you know how much you will be charged.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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ATO branded scam alert: Fake landlord tax exemption

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You've heard it all before - the mythical property that doubles every seven to 10 years, or even more quickly. You're wondering whether or not the numbers can be true, particularly with the strong results recorded for 2013.
The Real Estate Institute of Victoria has <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-value-of-victorian-houses-roughly-doubles-every-10-years-%E2%80%93-so-take-a-long-term-view-enzo-raimondo/2012041254242">been on the record that the value of houses in Victoria have doubled every 10 years when looking generally at the market</a>.
Ken Raiss, from accounting firm Chan &amp; Naylor, is <a target="_blank" href="https://www.propertyobserver.com.au/residential/successful-property-investing-is-like-baking-a-souffle-ken-raiss/2012041254244">also of the understanding that a good investment doubles in value</a> and that this is the benchmark to look for.
"A good capital growth property will pay for itself within 10 years. For those who like numbers, a property growing at a compound rate of 7% per year over a cycle will double in value in about 10 years. A poorer-performing capital growth of 5% will double in just less than 14.5 years while a superior 10% growth property will double in just over seven years," he says.
However, not every property will double. Welcome to the 'Rule of 72'. This quick mathematical rule of thumb is one to keep in mind as a benchmark if your expectation is, really, for your property to double in this time.
Think of it like this - if you divide 72 by the expected percentage of annual growth, what you will be left with is the number of years the area has taken to double. For instance, if an area is growing at 10% per annum, steadily, then it will double in 7.2 years.
This video shows you the equation in action:
{qtube vid:=oEbik_2JisQ#t=52}
Here's a quick cheat sheet for you that will help you work out the return prospects based on the current or projected rate of annual growth:
<img alt="growthchart" src="/images/stories/2014/01/30/growthchart.png" height="548" width="203">
This leaves us with the knowledge that an area needs to grow by 7.2% per annum to double in 10 years.
However, property doesn't work on a steadily, regularly increasing incline and so estimates can be limited in their usefulness; as can be looking to the past at the 10 year averages so often cited (also seen as the 'average annual growth', which is usually worked out using the past 10 year's worth of statistics).
Where some properties will significantly increase in value for two years and then slump for eight, others may indeed double in 10 years, only to spend another 10 year period without much growth. This is where many trip up, by assuming that regardless of what they buy, where they buy and when they buy, it will double when the 10 year clock ticks over.
Late last year, Monique Sasson shared her opinions on what it takes to choose a property that doubles.
"[It's] really important for investors to understand that property values and growth factors will fluctuate, but what we're trying to do in terms of really good quality asset selection is beat the performance of the wider marketplace," she said.
"When it comes to houses we like to choose investments that are anything from the 1880s probably to about the 1940s or 1950s. And the key note here is that the asset has to have what we call scarcity value. In other words, there has to be much more demand for that particular type of asset in that particular location than there ever will be supply to satisfy that demand. The same criterion applies to apartments. With apartments you want anything from 1930s through to about the 1970s. Those are the assets that really confer and satisfy that criterion of scarcity value."
She also pointed to her scepticism that off-the-plan properties could reach this point, as well as the requirement for some sort of architectural scarcity in the dwelling chosen.
See <a target="_blank" href="https://www.propertyobserver.com.au/news/properties-that-will-double-in-value-in-seven-to-10-years-monique-sasson-wakelin/2013091265003">more of her thoughts here</a> on what it takes to buy an asset that will perform.
It's worthwhile remembering that this is a fairly blunt tool, used for your first estimates. You will want to factor in rental return and yield, vacancies, the cost of the property to hold and a number of other calculations. <a target="_blank" href="?option=com_googlesearch_cse&amp;q=How%20To">See here for some more 'How to' guides</a>.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
 
 
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The one number you need to know: 72

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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