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Vendors of Sydney houses have increased their asking price by 14% over the past 12 months, according to SQM Research’s Asking Prices Index.
The only city to record a decline in asking prices was Canberra, which fell by 1.5% over the 12 months.
The average asking price for houses sits at $706,300 across the capital cities, a 7.2% overall increase, with units seeing a 2.3% increase to $459,300.
Managing director of SQM Research, Louis Christopher, said that there is no evidence of any slowdown in the market when looking at these figures and a current decrease of stock on the market.
Currently, Christopher notes that there are a total of 337,744 properties on the market, a decrease of 8.5% over the month.
Year on year, this is also a decrease of 4.3% compared to December 2012’s national level.
“We are confident of a very strong market opening later this month,” he said.
Hobart was the only capital city to record an increase, with most recording a decrease – significantly in Canberra and Sydney – which he said is expected given the Christmas season.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
 
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jduke-EHk3XBmHkn

Sydney’s asking prices up 14%: SQM Research

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Section 6A of the Residential Tenancies Act notes that the residential tenancy agreement may be "express or implied" or even "in writing, oral, or partly in writing and partly oral", bringing rise to an interesting situation at the ACT Civil &amp; Administrative Tribunal (ACAT) recently.
The case, between the Commissioner for Social Housing in the ACT and Moffatt was in part regarding whether a new tenancy agreement is implied by the conduct of the parties in this particular case.
In May 2013, the Commissioner for Social Housing filed an application for an order "pursuant to section 42A of the Residential Tenancies Act" noting that a conditional termination and possession order made in May 2012 has not been complied with, and the tenant remained in the property.
The tenant opposed this application, saying that while she noted payments required by the conditional termination and possession order had been missed, a fresh tenancy agreement had arisen "due to the conduct of the parties" and that a further conditional termination and possession order is needed.
The tenancy began on 4 July 2011, for herself and her three children. She had at all times been eligible for housing assistance in the form of a rental rebate.
She fell behind in her rent and in May 2012, the Commissioner applied for and was granted to conditional termination and possession order with arrears at that time of $5,421.05. Rent, after the rebate, was $165.55 per week.
She consented to the order, and was required to pay arrears at $30 a fortnight, from 28 May 2012 onwards. On 25 May 2012, she made a $170 payment.
On 20 June 2012, the tenant applied for a rent rebate to her future rent, and on 26 June this was approved noting "You will be required to pay a weekly rent of $163.60 from 8 July 2012."
It then noted "If you have a current arrears repayment arrangement, or there is an Order from the ACT Civil and Administrative Tribunal to pay off arrears, the repayment instalment must be added to the Weekly Rebated Rent shown above."
As of 30 June 2012, she was $6,025.45 behind in rent and a letter was sent to her on 5 July 2012. She was told that $6,356.55 needed to be paid before 15 July 2012 and the normal rent after this time.
"If your account is not up to date and you do not attend this appointment legal action will proceed.  This will include issuing you with a Notice to Vacate the property and action to recover the debt," the letter noted.
She did not pay these funds. In August, she submitted a Centrepay deduction form, authorising rebated rent and extra amounts to be deducted from her Centrelink payments. Payments were then halted for a fortnight due to surgery, with Homenet noting that this would be added to her agreement.
She did not then recommence her payment of rent and arrears and contact with the tenant from the Commissioner's office was unsuccessful.
In November 2012, an unconditional termination and possession order was sought. A new rental rebate was being sought by the tenant, having been six months since the previous application.
A payment was deduced for rent in December 2012, however no arrears deductions were made, and later that month she was written to advising the approval of her rental rebate in the same terms as the June 2012 letter.
In January, the Housing Manager informed the tenant that her account would be referred to tribunal "due to non payment of legal agreement".
In February 2013, the Commissioner sent a letter to the tenant referring to the conditional termination and possession order of May 2013, noting: “As you have breached the above Orders the matter has been referred to the Housing Assistance and Tenancy Review Panel (HATRP) for consideration.”
This was eight months after the Commissioner had become aware of the situation.
In March 2013, the tenant attended Housing ACT office where she was told a recommendation was being sought for a warrant of eviction.
In May she was then advised that the Commissioner intended to seek an unconditional termination and possession order with effect as a warrant for eviction.
Rental arrears at this time stood at $10,166.60.
The difficulty comes about as the Commissioner looked to use the breach of the conditional termination and possession order as grounds for termination, but also notes that it wasn't 'final' enough to bring about a fresh tenancy agreement.
"There is no doubt that in cases where a lessor has failed for a significant period of time after termination of a tenancy agreement to take action to seek a warrant for eviction, the factual and consequently legal matrix may become complicated," the Tribunal's M.T Daniel said.
"It follows that I am satisfied that a conditional termination and possession order is self executing in the sense that it terminates a residential tenancy agreement, although this does not mean that all of the rights and obligations of the parties under that agreement end at the time of termination," Ms Daniel said.
The conclusion of the case was that the order sought by the Commissioner, under section 42B of the RTA, that would allow tribunal to direct the registrar to issue a warrant for eviction, was not approved.
"I will dismiss the application, although I am satisfied that the conditional termination and possession order operated to terminate the residential tenancy agreement and the tenant continues to live at the premises.  This is because I am satisfied that the tenant continues to live at the premises under a new residential tenancy agreement which is implied as a result of the conduct of the parties over a prolonged period of time," she said.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Landlords must be aware of the "implied" tenancy agreement: Lessons from tribunal

<html><body>Pools that have not met safety requirement are on the radar of bodies corporate and property investors, particularly has summer is upon us. Over the past year alone, 40 children under 14 years old drowned, with 77% being under the age of four. Archers Body Corporate Management director, Andrew Staehr, said that bodies corporate need to check their pool regularly to ensure it meets legal requirements. He noted that the following could be put in place for bodies corporate: 1.    Establish rules and enforce them, e.g. no glass in the fenced pool area.  2.    If apartments are close to the pool be conscious of early morning or late night noise. 3.    Implement and enforce pool opening hours for all tenants and visitors. 4.    Advise tenants against parties in the pool area as this can bring on misbehaviour or excess noise. In order to keep pools safe, Staehr suggested checking for simple access issues - such as the gate swinging shut automatically and the latch closing properly the first time. “It’s also important to make sure that if a child jumps on the gate the latch does not come undone, and all fencing is properly in place," he said. “Having an up-to-date safety certificate is essential for legal reasons, but also to ensure the area is as safe as possible.” Trees and bushes should be regularly trimmed to prevent children climbing to get over the fence, and toys and objects should be secured out of the way. “Pool rules and CPR signage should be clear around the pool so residents know the rules and stay safe,” he said. Owners and residents are encouraged to keep up to date with CPR and first aid, with contacts for emergency situations. <a target="_blank" href="https://mce_host/jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a></body></html>

Tenants, landlords and bodies corporate: Be aware of pool dangers

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Investment properties are largely a numbers game, however when should human interest become part of it too? This tweet, sharing a story from UK's The Guardian, had us interested. It discusses a buy-to-let landlord that evicted 200 tenants on welfare payments - noting changes to the payout to these people, and the cost of rent, as meaning they are too likely to default.
They quote Dan Wilson Craw, a spokesman for campaign group Priced Out, as saying the following about the situation: "Evicting tenants because you're suddenly upset about new government policies is unbelievably heartless, and could lead to more people deciding not to claim benefit for fear of losing their home, and sinking further into poverty".
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Buy-to-let landlord with 1000 properties issues eviction notices to every tenant on housing benefit <a href="https://t.co/OhreXAs6mc">https://t.co/OhreXAs6mc</a>
— Claire Phipps (@Claire_Phipps) <a href="https://www.propertyobserver.com.au/https://twitter.com/Claire_Phipps/statuses/419387295771656193">January 4, 2014</a>
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Do you think this is acceptable? What controls could feasibly be put in place?
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Buy-to-let landlord evicts 200 welfare tenants

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A new year is a great opportunity to knock your bad property habits down and start gaining some better ones.
Here are our picks for what we will be putting on our lists:
1) No longer assume that your strategy is the only strategy that works
Other asset classes can work too, and ignoring other investments could mean ignoring diversification. Also, remember that within property that are a number of different techniques to invest, from subdividing and renovating to capital growth 'buy and hold' to buying overseas. While they don't all suit everyone, don't allow your suitability to close other people off to something that might suit them better.
2) Due diligence
Whatever this means to you, have a look at your process. If you think you're doing enough, see if there's one more thing you can check. Don't scrimp!
3) Review your finances and go over that portfolio at least one more time
Get some advice from your broker, accountant and financial planner, and sit down and review your progress and your own plans. Property investors rarely give themselves time to review their goals - if you do this then you're one of a minority - and it's worth regularly doing a "check up" on your progress.
4) If a tenant has a maintenance or repair issue, hop to it quickly
Remember that it's your tenant's home as much as it is your investment property. Make sure that you get to their requests in a timely fashion (or that you ensure your property manager does), and that you pay anything necessary promptly. Keep good tenants happy, and they'll keep you happy - it's a two way street.
5) Plan for the worst case scenario
Don't put your head in the clouds and hope for the best. Ensure you know what the outcome might be if the unthinkable happens and there's death, divorce or something else.
See my <a target="_blank" href="https://www.propertyobserver.com.au/news/letter-from-the-editor-a-festive-season-and-a-sobering-experience/2014010567059?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=editor%27spicksextra">Letter from the editor here</a> for more.
6) Ask for advice from multiple people, and always question what you hear
We're always told that you don't know what you don't know, which is a fair analysis, however you always don't know what other people don't know. Make sure you ask around and check credentials.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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New year's resolutions every property investor should put on their list

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With ASIC cracking down on potentially misleading advertisements, Media Super Limited is next to pay a penalty, of $10,200, to comply with an infringement notice.
The advertisement in question, a factsheet published in September 2012 entitled 'Self-managed super? You be the judge', was that which caused the concerns from ASIC.
The advertisement compared the costs and benefits of an SMSF with a fund through industry superfund, Media Super. It was seen on Media Super's website and was sent out to all fund members.
ASIC noted concerns that the factsheet inaccurately represented the costs and benefits of Media Super funds compared to SMSFs.
ASIC commissioner, Greg Tanzer, said that Media Super reacted quickly - removing the statements from the websites once approached, and cooperating with concerns.
"ASIC is serious about making sure investors can be confident and informed and that means cracking down on misleading or inaccurate advertising," said Tanzer.
The payment is not an admission of a contravention of the ASIC Act.
The infringment notice states that the advertisement appeared between about 1 September 2012 and 26 April 2013.
Media Super currently has a <a target="_blank" href="https://www.mediasuper.com.au/media/asic-penalty">'Need to Know' mention about the fine</a>, stating that there have been no complaints about the fact sheet and no "apparent loss to any member arising from reading the fact sheet".
They identify the error as being an accidental omission of a component of their fees.
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"Media Super considers ASIC’s response in imposing a financial penalty to be an over-reaction," it notes.
"Media Super is vigilant in ensuring that it meets all of its regulatory obligations. Media Super is equally vigilant in cautioning members about the potential costs and risks of self-managed super funds, and will continue to do so."
A <a target="_blank" href="https://www.mediasuper.com.au/sites/mediasuper.com.au/files/self_managed_super._you_be_the_judge_aug_2013.pdf">version of the Media Super factsheet</a> is currently online on their website with the following statement:
"IMPORTANT UPDATE: We previously published a fact sheet on this topic that contained misleading statements. We have revised the fact sheet to enable you to make a fair comparison on the different products. It is important that you read this fact sheet and disregard the previous one."
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Recently, <a target="_blank" href="https://www.propertyobserver.com.au/finance/asic-penalises-mortgage-choice-for-claims-of-saving-customers-%2410k-over-five-years/2013112766653">Mortgage Choice</a>, <a target="_blank" href="https://www.propertyobserver.com.au/finance/myrate-makes-changes-in-response-to-asic-concerns/2013120966843">MyRate</a> and <a target="_blank" href="https://www.propertyobserver.com.au/showcase/smsf-property-capital-pays-penalty-over-asic-approved-statements/2013121867016">SMSF Property Capital</a> have been penalised by ASIC for potentially misleading advertisements.
However, this isn't the first time ASIC has been taking a stand against poor form in advertising, with <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/asic-clamps-down-on-misleading-lender-advertising-and-unlicensed-mortgage-brokers/2012082756262">August 2012 seeing a clamping down on lenders</a>, specifically, for similar issues. At the time, a counted 117 from July 2010 were forced to alter or withdraw their advertising in response to similar concerns.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au </a>
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Media Super Limited latest to pay penalty under ASIC misleading ad crackdown

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Police are being assisted by EnergySafety and Western Power over a late-December death of a man in his early 70s at Ledge Point.
The man was believed to be in the roof space of his home when he died, with inspectors currently unclear over whether electricity is involved.
EnergySafety, who investigated electricity and gas-related incidents in Western Australia to look into ways of future prevention, issued a statement from acting executive director, Michael Bunko while relaying condolences to the family of the man.
“Although it is still unclear how this man died, I take the opportunity to remind people of the lethal electrical dangers when working in roof spaces and the importance of turning off the electricity main switch at the main switchboard before venturing up into the roof space,” said Bunko.
Renovators, home owners and tenants should always look to put their safety first.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Home owners beware: Man dies in roof space

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It was a great visit back to busy Sydney over the festive break, but I had a somewhat sobering conversation with a new friend about his mother's investing experience.
It really hit home for me why sites offering impartial information that anyone can access is so important. We started off just talking about Christmas and seeing our families, and he told me about his beautiful childhood home - fondly saying how much he enjoyed living there and reminiscing.
Then we talked about when we moved out of home and the reasons for it. He is 23 and late-2013 was the first time he moved out of home, however he said it wasn't from lack of desire to move earlier. His father had died when he was young, and his mum had remarried. His stepdad decided to do something about their income, and bought an investment property using a significant amount of equity from the family home. Although he didn't know much about his parents' affairs, he believed that the advice came from their broker (who originally got them the loan for their family home).
This was a few years ago, and when his stepfather passed away, his mother, who did not work, was left unable to make the repayments on the overall loans. In a long story cut short, they ended up selling the home they loved so much and moving into the smaller investment property that they were still struggling to pay and that hadn't had much luck in the way of capital gains. My friend ended up staying at home so that they could, with his income as well, keep paying the mortgage. And it was only recently that he could then move out as he wanted to, behind in the money he could have saved otherwise. He said that he could have probably afforded a deposit by this point had he not been using it for the mortgage and for board.
Spending the rest of Christmas with family, property was also a common topic. A number of family members of mine investment in property and other asset classes - some I didn't even know about until I began writing about it - and hearing a number of different arguments for and against different types of investments, I was painfully aware of what happens when it goes wrong. But I was also aware of the 'other' argument - that if you do nothing at all to invest and look after yourself then you will end up financially destitute through your own inaction. Some were investing in their SMSF - a topic of regular coverage on Property Observer and other property media, particularly when it comes to the negative side and the warnings being presented by ASIC - and others were considering buying a property through Defence Housing.
I'm regularly asked for my opinions on different investment properties, locations, structures and basically every topic under the property umbrella (it's huge), and I generally try to steer clear as much as possible from providing it unless I really think it's crucial. I don't give "advice" (not even to family members) as I do not feel qualified to advise, and I usually err on the side of caution with every investment topic - preferring to say "Have you asked about this?" and "Have you thought about that?". The absolutely worst situation in the world would be to carelessly say to someone 'This property looks like it could be good' and have them take that opinion onboard and watch their financial future suffer as a result. Even worse - what if a property is a good investment, but they are ill-prepared to manage a portfolio or to take on the investment? Are we really qualified to tell those people how to run their future?
I don't know the stats on it, but I'd argue that for every property 'success' story, there's a 'not so successful' one too, and another one saying 'I wish I'd done something'.
If there is one opinion I am happy to give, however, then it would be this. If you haven't thought about what happens if you pass away, or someone else involved in the investment does, then it might be time to consider it and what insurances or plans you need to have in place. It may be the non-glamorous part of property investing, but it's absolutely essential. Just as property can drop in value, and tenants can (although not as often as we might assume) trash the place and disappear, anyone involved with you, or directly related to you financially, can suffer if you die unexpectedly. The last thing anyone wants is to put their loved ones through further pain should they pass away - particularly when it involves their future plans and the roof over their heads.
There are too many less than reputable characters out there, in the property space and every other space, that will take money from yourself and your loved ones if you let them. So don't leave them open to tricky financial situations from yourself just through neglecting to think of the less-than-pleasant possibilities.
I don't know if the advice in my friend's situation really did come from their broker, or a financial adviser or maybe they actually did decide themselves and just made poor decisions. Regardless, property can make, and it can break, futures, no matter the "property doubles every ten years" mantra that might be doled out on a regular basis. Think about every eventuality, and be ready in case the worst happens.
How do you protect your investments and your loved ones?
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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Letter from the editor: A festive season and a sobering experience

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Every investor should be able to work out some of the most crucial aspects of property investing themselves - even if they're not a mathematician or financially trained.
Each week we will be looking at a different 'How To', from renovating to those niggly sums that you're used to Googling.
The Rental Yield
A number of rental yield calculators exist online, and while it's definitely useful to be able to quickly have a machine spit out a number, it's worth knowing the calculations that are happening behind the scenes.
What is it calculating?
Your rental yield is a quick number that lets you know how much rental return you are achieving compared to the asset's value. A $500,000 property returning $200 a week will have a worse rental yield than a $200,000 property achieving the same income. Regardless of whether you invest for cash flow or capital gains, rental yield is likely to be of interest to you.
How do I work it out?
Take your property's purchase price, and the yearly rent (weekly rent times by 52). Divide the yearly rent by the purchase price and times the result by 100 to get yourself a percentage. This percentage is your rental yield.
If you haven't purchased the property yet then using a rental estimate (from a property manager, or from your own comparisons made) and a price estimate should be able to give you a close comparison.
Example:
Purchase price: $500,000 Weekly rent: $495 Rental yield: 5.15%
Be aware
If you are provided a rental yield 'estimate', always ask for the basis of the purchase price and rent assumed behind the calculation. Note that the common calculation, as above, does not allow for any vacancies at all. You should be aware of the likelihood for vacant periods and how this will affect the return.
A quick note
A number of readers regularly ask why the gross rental yields (the above calculation), rather than net rental yields are commonly used. Net rental yields can be useful for working out the minutiae of an investment, however gross rental yield is a broad-sweeping calculation that is comparable across investments and quickly provides a return that isn't based upon an individual.
Everyone's net will be different (as it depends on your LVR, taxable income, strata levies, and a number of other considerations) and therefore it isn't practical for news outlets to use this figure unless in specific case studies. Similarly, costs can change over time and for reasons outside of your control (for example, increasing insurance premiums) as can the return (unexpected vacancies).
To calculate your net rental yield, take the annual expenses away from your rental income and then undertake the same calculation.
Now that you know how to calculate a rental yield, tomorrow we'll flesh out how to use this statistic in a little more detail and why you want to know the number before you purchase.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> 
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Your weekly 'How To': Calculating rental yield

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The property market in Melbourne is expected to continue its growth over 2014, and potentially build even further, said Wakelin Property Advisory founder, Monique Sasson.
With 2013 now being seen as the 'year of recovery', with property values recouping losses seen since the 2010 peak, 2014 will further grow on this trend, said Sasson.
“We anticipate this trend to continue, and that the momentum of the last 12 months should carry the Melbourne market upwards in the first half of 2014," she said.
“There will be many Super Saturdays – weekends with a thousand-plus auctions – throughout the autumn of 2014. Nevertheless, robust demand should soak up this supply and see auction clearance rates remain at around 70%."
She notes that while a typical year will see the first "serious" auction weekends occurring in mid- to late-February, we may well see them as early as January this year.
“The greater unknown is what will happen in the second half of 2014.  In large part, the trajectory of the property market will be determined by the Reserve Bank’s attitude to setting monetary policy," she said.
“It may well be the case that the RBA decides to leave interest rates steady through most of 2014. If that scenario eventuates, then expect to see Melbourne price growth in 2014 to be strong, and potentially reaching double-digits."
If growth occurs similar to that seen in Sydney, she said it would be likely to expect 25 or 50 basis points added on from the middle of the year onwards.
“Should the Reserve Bank cut rates again, then I expect this will accelerate capital growth in 2014," she said.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Melbourne market recovery set to continue: Wakelin Property Advisory

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.

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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."

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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."

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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.

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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."

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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.

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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."

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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.

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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>.

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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.

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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."

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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.

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<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.

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Jennifer Duke

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