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A new analysis by RP Data has revealed which property owners, over the past financial year, received the best capital gains in Melbourne by gross profit.
Those who sold in Flinders during this time period saw the best result, while those closer to the CBD in Armadale also saw significant capital gains.
<img alt="larocca-oct-18-one" height="158" width="470" src="/images/stories/2013/10/18/larocca-oct-18-one.gif">
Over the period, 91.9% of sales returned sellers a profit, said RP Data's Victoria housing market specialist, Robert Larocca, with those having held for longer seeing the best results.
"The RP Data quarterly results showed that across the Melbourne metro area, over one third of sellers doubled their original purchase price," said Larocca.
The smallest proportion of loss-making re-sales was seen in the Yarra Council region, with 3.9% recording a loss over the June quarter.
Meanwhile, the largest proportion of loss-making re-sales was seen in the Melbourne Council region, with 17.3% of all re-sales selling at a loss over the same period.
"Based on profits made from resales of houses, the top five suburbs in Melbourne were Flinders, Armadale, Caulfield, Oakleigh East and Parkville," said Larocca.
"The RP Data top 50 list shows that the suburbs around the hills to the north east and eastern fringe of Melbourne have been good investments with Belgrave Heights, Belgrave South, Montrose, Warrandyte, Mount Dandenong, Olinda, Kallista and Warburton."
Looking at the long-term, Larocca noted a trend for tree-change close to the city. The other notable trend included the inner north with Parkville, Princess Hill and Fitzroy North, with prices being attractive to buyers compared to the inner east, while also featuring period-style properties.
"Outside of Melbourne, the strength of the Geelong market was apparent with many suburbs in the region providing all sellers with a profit," Larocca said.
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jduke-EHk3XBmHkn

Top Melbourne capital gains suburbs revealed

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New sales figures from PRDnationwide's research department have found a significant jump in activity in house buying over the first half of 2013 in the Port Stephens area.
The statistics saw a 14.2% activity jump over the first half of 2013 compared to the same period in 2012 across the LGA.
Research analyst for PRDnationwide, Oded Reuveni-Etzioni, said that the activity jump had gone a long way to eating into the surplus stock that had been on the market.
However, he noted that there were still buying opportunities for investors looking at the lower end of the market.
"At current sales levels, there is still approximately eight months' worth of house and unit stock available for sale in the Port Stephens region," Reuveni-Etzioni said.
"Nearly half of the recent transactions in the six months to June 2013 occurred in the suburbs of Nelson Bay and Corlette."
Much of the activity has been centred around the bottom and middle parts of the market, however some well-priced stock is selling within four weeks of listing.
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Port Stephens' market on the move

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It's undeniable that property enthusiasts, be us home owners, investors, developers or otherwise, look at the world a little differently. There are many skills involved in investing successfully, and it largely takes a team behind you as well.
Some property buyers are, however, more effective than others. Here we delve into which habits are worth acquiring, and ask you which you think is the best for budding investors to focus on. 
Look for solutions
Where an inexperienced buyer will see a grotesque property, a savvy investor will usually see a renovation opportunity and a chance to buy under market value as emotionally-attached home buyers steer clear.
Similarly, an investor will look at areas that many deem "problem" areas and see if they're set to undergo gentrification or significant changes that may make then a prospect down the track.
The best investors know that where other buyers are turned off, there may just be an opportunity lurking and that sometimes it's worth looking beyond face value.
Understand the numbers
We hear the phrase 'run the numbers' a lot, particularly when it comes to doing your due diligence. But the truth is that the best investors truly understand what the numbers mean. This may just be knuckling down into what a rental yield really is, and what effects it, but can go as far as creating your own spreadsheets within which to plot the potential property's statistics.
Those whose investments and properties do well know which numbers, costs, fees and statistics to ask for, and they know what a good investment looks like for their portfolio.
Prepare for the worst
It's great to want your property to do well, but there's no point in leaving yourself under protected and blind to what could potentially occur.
Those who manage to get up again after being knocked down on the property circuit are those who continually think about their defences.
This comes in many different forms, from the structure of your investments from an accounting perspective, to insurances and your own personal situation. What happens if it turns out your property has negative equity? How can you survive if you lose your job and your property <a target="_blank" href="/news">suffers bushfire damage</a>?
Hopefully these situations will never happen, but you need to be thinking about it just in case they do arise.
Consider the end game
There is a habit to love the "here and now" for investing, that is the suburbs that are hotspots currently and a fascination with the sudden rental fluctuations. However, the majority of investors are in it for the long-haul, even if their strategies are active ones, such as developing or renovating for a quick profit.
With this in mind, good investors are continually considering where they want to be, and whether the deals they are looking at help contribute to this overall goal.
Knowing what your situation is going to be at the end of the investment journey will not only help you get to that point, but will allow you to think of situations you might otherwise have ignored. For instance, are you buying a one-bedroom unit in an area that in ten years will be dominated by families, or vice versa? You need to know what an investment will look like down the track.
Leverage advice
Good investors know that there are other fantastic individuals out there to network with. Whether they are from forums, industry professionals or keen investors themselves, there's a wealth of brains out there who are often happy to help.
Some of these sources of advice may come with a price tag attached (and here understanding your numbers and the dollar value worth of advice will come in handy again) but so often there's freely available information that assists most investors get off to a good start.
It's worth just asking someone you look up to for a coffee, or a chat, and tell them your situation and concerns. Keep your ears open, network and continually learn from other peoples' experiences. It's also worth finding out what their mistakes have been in the past - if they have already made them then there's no reason you should too.
Here at Property Observer, for instance, we have data pages, updates, news and opinion pieces that may be of some help. There are a number of other sites, calculators and spreadsheets also online that you'll want to get your hands on.
Continually review and refine
Reviewing your portfolio, life situation and financials is a constant factor of good property investing. This can be formal - sitting down with a notebook, spreadsheet and calculator - or an informal reflection. Either way, there's little chance of reaching your goal if you don't keep an eye on your plan and how you're tracking.
This may be every time something significant happens in your life. These may be weddings, job changes, new cars, children, or similar that property accountant Shukri Barbara from Property Tax Specialists refers to as life's "pressure points" (where he says you should also be heading to your accountant's office!) but it could also just be when you change your mind about what you want in your future.
Constant reviews will also help you ensure that you are prepared for your end game, for the worst case situation and that your numbers are still where you thought they would be when you purchased.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="poll-results-oct-21" src="/images/stories/2013/10/21/poll-results-oct-21.gif" height="345" width="385"> 
 
<hr>
As part of our new series about <a target="_blank" href="/news">choosing the right first time investment</a>, we will delve into some of these points over the next few weeks. Next week, via reader request, we will be presenting you a piece on assessing capital growth potential.
 
<img style="display: block; margin-left: auto; margin-right: auto;" alt="poll-results-oct-18" src="/images/stories/2013/10/18/poll-results-oct-18.gif" height="289" width="427">
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The habits of an effective property buyer

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Over two weekends, 100 properties have sold in The Hermitage at Gledswood Hills in the south west of Sydney.
The first masterplanned community in the country to be developed by Sekisui House, Gabriel's Run release sold within the first weekend causing them to fast-track another stage during week two.
It included land size ranging from 435 square metres to 592 square metres from $241,500.
Estate sales and customer relations manager at The Hermitage, Craig Barnes, said that buyers were arriving 24 hours before the VIP launch.
Gabriel's Run will include more than 200 home lots at completion.
Construction on three major public parks in the community are complete, with construction on Gabriel's Run Park expected to finish in early-2014.
"Sekisui House is about creating communities and environments that bloom with time, and therefore a great deal of attention has been paid to designing enduring spaces that only get better over time," said Barnes.
The Hermitage is bound by Camden Valley Way, Raby Road and Gregory Hills Drive, and will be a 312-hectare community.
Boutique shopping, cages, restaurants and community facilities are also planned.
The next release for The Hermitage is planned for early 2014, with builds beginning six to eight months after purchase.
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100 properties sold in two weekends at The Hermitage

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Discussing the importance of forging strong relationships with overseas markets, managing director of RE/MAX Australia and RE/MAX New Zealand, Michael Davoren, said that currently a significant amount of stock is being purchased by Asian buyers.
At the RE/MAX Asia-Pacific Rim Summit held in Hong Kong, the major topic of focus was to how the harness the power of the real estate market that flows between all the countries in the Asia-Pacific Rim.
"The volume of movement is significant and increasing," said Davoren.
"We are beginning to see figures showing that just in Australia alone, one in every six new property sales is to a buyer from an Asian region," he said.
Currently, the major issue for those wishing to sell properties abroad is a technological one.
"One issue high on the agenda was technology. We discussed not only new systems but also which of the many portals are the most effective. This is all about improving the experience of our clients in all these countries."
RE/MAX has now expanded into Japan, with master franchise rights being taken up there by Generation Group, LLC.
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One in six property sales to an Asian buyer: RE/MAX

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The second rlease of apartments at Crown Group's Skye by Crown in North Sydney has been announced, after more than 90% sold in the first launch.
The <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/skye-by-crown-set-to-become-north-sydney-icon-skye-crown/2013052361500">first launch saw all three penthouses purchased within the first week</a> at 211-223 Pacific Highway North Sydney.
This second release will be the last opportunity to purchase apartments at Skye, from November 2 from 9am, with 40 for sale.
The apartments include one-bedroom suites and one-bedroom suites with studies, as well as a limited selection of two-bedroom upper level apartments.
The $200 million residential development saw more than $100 million of apartments sell on June 15.
Crown Group CEO Iwan Sunito said that the development has been popular across the board with both investors and owner-occupiers.
“People recognise the potential of the North Sydney area and they quickly find apartments at Skye by Crown to be the best on offer in area, across all aspects of design and construction," said Sunito.
“Skye by Crown ticks all the boxes for a sound investment and gives investors the confidence to expect healthy investment returns,” he added.
The development includes 232 apartments across 20 storeys.
It features an infinity-edge pool and gym on the top floor.
Skye by Crown was designed by architect Koichi Takada and recently saw <a target="_blank" href="https://www.propertyobserver.com.au/news/a-sight-for-sore-eyes-the-top-developments-of-the-past-year/2013091265004">42.6% of Property Observer poll respondents noting it as their favourite</a> of five choices.
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Skye by Crown's final apartment release announced

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Homes were destroyed yesterday as the bushfires raged through Sydney's Blue Mountains, and it isn’t the first time that property owners’ fears have been brought to the surface.
In Springwood and Winmalee in New South Wales, west of Sydney, a number of houses were reportedly destroyed, according to the Rural Fire Service.
Almost 600 firefighters were battling up to 80 bush and grass fires yesterday, 31 uncontained, across the afternoon, The Australian reported.
Around 8,700 homes west, south west and north of Sydney suffered power outages. This morning, reports were coming in from ABC radio with Blue Mountains mayor Mark Greenhill saying a number of properties are lost. ‘‘It’s a scene of utter devastation," Greenhill told the ABC from Emma Parade. "There are at least a dozen home lost right where I'm standing now. We’re seeing just house after house after house that’s gone."
<blockquote class="twitter-tweet">
Salt Ash fire seemed over until this house went up 20 minutes ago. 5 fire trucks now here. But house is gone <a href="https://t.co/T4PRfv3dxP" target="_blank">pic.twitter.com/T4PRfv3dxP</a>
— Sean Berry (@Seanberry7news) <a href="https://www.propertyobserver.com.au/https://twitter.com/Seanberry7news/statuses/389472750659588098" target="_blank">October 13, 2013</a>
</blockquote>
For those currently unsure of where the fires are, this <a href="https://google.org/crisismap/2013-nsw-bushfires" target="_blank">bushfire map</a> is being regularly updated by the NSW Rural Fire Services due to intermittant site outages on their official website.
Even those some distance away from the Blue Mountains reported seeing the “orange glow” of the bushfires. These photos below come from residents in western Sydney suburb, and popular investment spot, Whalan, who shared them with Property Observer (also see our gallery below). While the fire is unlikely to reach these homes, it certainly has many asking how they can protect themselves in case.
<img width="470" height="262" src="/images/stories/2013/10/17/one.jpg" alt="one">
Photo above by Lisa Blundell
<img width="470" height="286" src="/images/stories/2013/10/17/foru.jpg" alt="foru">
Photo above by Nicole Brown
When purchasing a property
Every transaction needs to be entered into with your eyes wide open. That includes knowing the risk of bushfire, floods, cyclones and other natural disasters.
Currently, in Victoria, vendors are now required to <a href="https://www.propertyobserver.com.au/residential/victorian-vendors-to-disclose-threat-of-bushfire-to-residential-land-enzo-raimondo/2012061455127" target="_blank">disclose whether a property is on bushfire prone land</a>. You can also check the details of the land online via this <a href="https://services.land.vic.gov.au/landchannel/content/addressSearch" target="_blank">state government portal</a>.
In New South Wales, a section 149 certificate can be applied for from the correct governing council. This does come at a small cost for the purchaser. For instance, the <a href="https://www.cityofsydney.nsw.gov.au/development/application-guide/application-process/zoning-certificates" target="_blank">City of Sydney charges between $50 and $80</a> for these certificates. If you're intending to develop, rebuild or put a granny flat on the block, the <a href="https://www.rfs.nsw.gov.au/dsp_content.cfm?CAT_ID=1009" target="_blank">NSW Royal Fire Service has some useful information online</a> about which hoops you may need to jump through, and details to be aware of.
Your current property
To create your own property bushfire survival plan, there's a <a target="_blank" href="https://www.rfs.nsw.gov.au/file_system/attachments/Attachment_BushFireSurvivalPlan.pdf">document from the government</a> available that covers everything from clothing to consider, to deciding whether you should leave your home. It’s worth having a read through, particularly if you’re in a more regional area.
The guide recommends that you ask yourself the following questions to determine the property's level of risk.
Ask:
1. Do you live within a couple of streets of bushland?
2. Does your local area have a history of bush fires?
3. Do you have many trees and shrubs around your home?
4. If you need to leave your home, do you need to travel through bushland?
5. Is your Bush Fire Survival Plan more than one year old?
Bushfire maps can also help you determine if your area is potentially at risk.
<blockquote class="twitter-tweet">
Driving through Yellow Rock, rows and rows of gutted homes. Locals guess 150 homes gone on one road. <a href="https://twitter.com/NewsTalk2UE" target="_blank">@NewsTalk2UE</a> <a href="https://t.co/X7IDsQNrwN" target="_blank">pic.twitter.com/X7IDsQNrwN</a>
— Michelle Taverniti (@M_Taverniti) <a href="https://www.propertyobserver.com.au/https://twitter.com/M_Taverniti/statuses/390947028093501441" target="_blank">October 17, 2013</a>
</blockquote>
Preparation tips to protect against bushfires
- Cut back overhanging trees or shrubs and dispose of cuttings appropriately
- Check the condition of your roof and replace damaged or missing tiles
- Non-combustible fences are most effective
- Clean leaves from the roof, gutters and downpipes
- Fit quality metal leaf guards
- Enclose underfloor areas
- Plant trees and shrubs that are less likely to ignite due to low oil content
- Consider installing a Static Water Supply sign if you have a water tank, dam or swimming pool
- Store wood piles well away from the house
- Keep grass cut
- Make sure pressure relief valves on LPG cylinders face away from the house
- Ensure you have a hose long enough to reach your entire home
- Store flammable items away from the house
- Check the condition of external walls/cladding and seal gaps
- Choose a non-combustible doormat
- Metal flywire screens should be attached to the outside windows and doors
When the fires have passed, don't let your guard down. You will need to patrol and ensure no embers or sparks can affect your property.
<blockquote class="twitter-tweet">
Great advice from South Warrandyte Fire Bridgade RT <a href="https://twitter.com/GlobalCareAu" target="_blank">@GlobalCareAu</a>: Help some1 prep their house 4 bushfire season <a href="https://t.co/5X3mZzlWOF" target="_blank">https://t.co/5X3mZzlWOF</a>
— QldFire (@QldFire) <a href="https://www.propertyobserver.com.au/https://twitter.com/QldFire/statuses/390634908735254528" target="_blank">October 17, 2013</a>
</blockquote>
Always ensure that all fire alarms are adequately installed with the correct batteries and that home and content insurance is in place that covers you in the event of a fire. If there are tenants in the property, ensure that they are prepared in the event of a bushfire, and that they are provided with as much information as possible.
Grants from the government are occasionally available for those most badly affected. For instance, in Tasmania these are the <a href="https://www.bushfirerecovery.tas.gov.au/people_and_communities/red_cross_bushfire_appeal/stage2" target="_blank">current listed grants </a>for property owners, tenants and local communities. They include up to $10,000 to assist with rebuilding a property and $5,000 for tenants to assist with replacing their contents.
In Western Australia, this <a href="https://www.legalaid.wa.gov.au/LegalAidServices/publications/Documents/WA%20Bushfires%20Renting.pdf">l</a><a target="_blank" href="">egal aid document</a> lays out the rules between owners and tenants.
"If you own the house and it is now unfit for the tenant to live in, you cannot make a tenant move out immediately so try to work out an agreement with them," the document states. It also covers an outline of the rules surrounding bonds and commercial tenancies.
Observer Jo Chivers has also previously written on the subject of the <a target="_blank" href="https://www.propertyobserver.com.au/developments/the-impact-of-bushfire-zoning-on-your-development-jo-chivers/2013052361604">impact of bushfire zoning on your development</a>. 
Views of the fire around Sydney
{yoogallery src=[images/stories/2013/10/18/fire]}
All our thoughts go to those currently affected.
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Protect your property from bushfires

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In a sign that the property market is heating up, we've quickly been seeing news coming in about real estate agencies expanding, investing into their growth or opening up new offices.
We've recently heard that <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/some-of-the-country-s-biggest-real-estate-agencies-are-in-expansion-mode/2013101665738?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplusmain">Raine &amp; Horne is expanding in Queensland, while Ray White is pushing into the US</a> market.
Meanwhile, <a target="_blank" href="https://www.propertyobserver.com.au/news/professionals-real-estate-plans-for-expansion-as-market-grows/2013101665762?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplusmain">Professionals has been expanding their online offering</a> and are figuring out how to get the most out of recent surges in property sales.
Marshall White have <a target="_blank" href="https://www.propertyobserver.com.au/victoria/marshall-white-expand-to-albert-park-premises/2013101665741">also signed a new lease in Albert Park</a> for six years.
On our Twitter feed this morning, PRDnationwide pointed to their own expansion plans, with PRDnationwide Newcastle opening a second office in Lake Macquarie.
<blockquote class="twitter-tweet">
PRDnationwide has expanded its presence in Lake Macquarie, NSW. <a target="_blank" href="https://t.co/MFLlIsjOyi">https://t.co/MFLlIsjOyi</a>
— PRDnationwide (@PRDnationwide) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/PRDnationwide/statuses/390618039663599617">October 16, 2013</a>
</blockquote>
Mark Kentwell, director of PRDnationwide, is also the majority owner at the Lake Macquarie office, partnering with Jeff Sansom, sales manager, and Paul McAllister, group sales operations manager. The office will have a team of eight, with a database across Newcastle and Lake Macquarie of 9,000 potential buyers
It appears to be a sign of the changing market that real estate agencies are expanding as confidence increases.
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Real estate agencies expanding

When it comes to choosing the right investment property, there are a number of different approaches and it can understandably be a confusing environment for many. Emails continually come in to the Property Observer editorial inbox from readers looking at buying in different states, unsure about locations, or just wanting some guidance.

Here, we will briefly run through how to start considering your approach to selecting an investment property. Over the next few weeks, the Property Observer team will tear apart each part in the process to show you just how to replicate the process.

1) Your personal situation

- What are your goals in life?

- What do you hope to achieve with property?

- How will you achieve this?

Figure out what this look like in terms of a time frame (how long do you have?) and how much you need (what return does it need to give me?). Consider cash flow and capital growth, and decide whether you&#39;re requiring a positive cash flow right now, or in the future, or if you&#39;re willing to pay out each week and hope for some capital gain.

Understanding what the property needs to do to fit into your portfolio is absolutely critical. There is little point buying a property that has terrible cash flow, but fantastic long-term capital growth potential, if your plan is to improve your current living situation. Similarly, if you have your heart set on renovating for capital gain, it&#39;s unlikely you&#39;ll want to be buying in a brand new estate. You might want to read Margaret Lomas&rsquo; response to an investor who <a href="https://www.propertyobserver.com.au/residential/ask-margaret-should-i-buy-off-the-plan-or-an-existing-property/2013062862801" target="_blank">asks whether they should buy established or new</a>.

Consider your appetite for risk - are you willing to buy in a mining town that may experience a significant downturn for the chance of strong cash flow? Your &#39;sleep at night&#39; factor is a critical part of this.

You will also want to assess your borrowing capacity, current financial situation and similar. This may require the services of some form of adviser, broker, financial planner or investment mentor. Investors are advised to ensure they check carefully about who they do business with.

2) Turn to the &#39;macro&#39;

- Are you comfortable buying in another state?

- How are the states/territories performing?

- Where do they sit on the property clock?

There are thousands of suburbs across Australia, and there&#39;s no way you can check them all. Property buyers should become familiar with the concept of the property clock and try to place each of the different states and territories onto this diagram as part of their initial analysis.

For investors wanting to learn more about the property clock, observer Jo Chivers wrote about <a href="https://www.propertyobserver.com.au/developments/learn-where-your-region-sits-on-the-property-clock-before-you-begin-your-development/2011110252187" target="_blank">working out where your region sits on this clock</a> before considering development.

Remember that buying low and selling high is a common investment mantra, but that it can be difficult to see where the bottom is and when the top has passed until later down the track.

You will also want to cultivate an understanding of the different overall forces within each state and territory. Understand how changes in the public service may affect the ACT, for instance.

3) Digging down

- What can you afford versus what is available?

- What are the overall plans for the state/territory selected?

- How do the areas stack up based on your statistics?

Here, your price point and borrowing capacity will become even more important. As you try to choose a region or more localised area (such as, for instance, Sydney&#39;s western suburbs) you may find that your price point helps you refine this quickly. Other statistical indicators, relating to your strategy, can also help you shortlist. This may include rental yield, proportion of houses v apartments, income growth and a number of other statistics that investment experts regularly hang their hats on.

You will want to be taking the list of wider areas that you can afford and going through them, checking for overall drivers and growth prospects in the areas. If they&#39;re largely driven by tourism, then you&#39;ll want to understand the potential fluctuations in this labour market, and how this may flow-on to your investment property.

It will also be worth looking at government plans on a wider scale to try and pinpoint areas of growth. If, for instance, a rail line is being put through a whole area and there is significant infrastructure investment, then you may want to consider it more highly. Be wary though, sometimes these initiatives are reactive, rather than proactive - that is, they are put in as a result of growth rather than in expectation of it.

Understand where these areas sit in relation to the rest of the state/territory. Understand its distance from major employment hubs, and how it differs or is similar to other areas.

4) Localising your knowledge

- What are the plans for the areas?

- How do the dynamics work within the local government area (LGA)?

- What are the locals saying?

- What are the statistics saying? We have free data available here.

When you have chosen a broader area, such as an LGA, in your price point, you&#39;ll want to become aware of how the individual suburbs work and the reputations of each.

For instance, in Sydney&#39;s Hills District, Castle Hill is a more expensive suburb with a busy, mini-city like atmosphere where the properties are tightly held. Beaumont Rise, however, is a brand new estate with smaller plots. In quickly developing areas, such as these ones, you&#39;ll want to know the inner-LGA dynamics.

One way to do this is to speak to the locals yourself, discuss with real estate agents, buyer&#39;s agents and property managers, and to call the local council. Ask about upcoming plans for the area, any new developments and similar. Get to know what the people, on average, tend to be like across the region. Jump onto the <a href="https://www.abs.gov.au/websitedbs/censushome.nsf/home/quickstats" target="_blank">ABS&#39; QuickStats Census data</a>, or <a href="https://home.id.com.au/" target="_blank">.id informed decisions</a>&nbsp;to get a statistical understanding, but start reading into the local culture as well. Crime statistics and reading the local paper can also be quite revealing.

Getting an idea for how quickly properties can be developed in the local area is important, as supply/demand statistics will underpin much of your investment strategy. If there is endless developable land, then you might want to have a closer look.

5) Understanding your specific suburb

- What is the good v bad side?

- What is the price ceiling and what are different properties worth?

- Which properties are most desirable?

- Check the level of amenity

When you have a small area to deal with, there is still a &#39;good side&#39; and a &#39;bad side&#39;. Some suburbs have streets where prices range from $1.2 million plus to $500,000, often due to views or busy streets or a combination of factors. This is often referred to as &#39;pricing disparity&#39;.

You need to get a quick knowledge of the worth of properties in the suburb so that you don&#39;t pay too much and can identify a deal quickly when it comes along. You&#39;ll also want to ensure you&#39;re on the right side of a suburb, or the street that doesn&#39;t have an inbuilt &#39;value ceiling&#39; due to unchangeable factors, such as a noisy train line.

To do this it&#39;s worth looking at comparable sales, visiting home opens and, again, speaking to local experts. You will also want to attend auctions if it&#39;s a popular selling method within the suburb. Keep your eyes and ears open, and keep detailed records of what has been selling, comments that other buyers have been making and their reactions to different types of properties. Ideally, you will want to know how the addition of a room, or a pool, or a car space, affects the value of a property.

Observer David Airey wrote about <a href="https://www.propertyobserver.com.au/residential/what-is-the-best-way-to-judge-the-value-of-your-property-david-airey/2013072863556" target="_blank">how to figure out the value of a property</a> in a recent column, while Patrick Bright also told us that <a href="https://www.propertyobserver.com.au/residential/how-to-determine-a-property-s-true-value-patrick-bright/2012121258406" target="_blank">inspecting 100 comparable properties</a> is one way to do this due diligence.

Find out where most of the renters live, and what the renter/owner occupier split looks like. You&#39;ll also want to know how this suburb compares with the averages of the wider area you previously researched.

Get to grips with the local demographic. See how this differs from what you saw in step four. If your chosen suburb is filled with families, then you&#39;ll potentially want to be looking at family-friendly stock. But are they a young family? Do they tend to have two children or three? Are the parents professionals? In different suburbs, the desire for certain types of properties differs. Understand what is desirable currently, but also down the track when you might be inclined to sell.

Check out the local development applications. If there&#39;s a big apartment block going up in the suburb, this isn&#39;t necessarily a negative thing for you. However, you&#39;ll want to know what the impact may be.

Consider tools such as WalkScore, Google Maps and NearMaps to shape the area&#39;s dimensions in your mind. Decide where the &#39;best&#39; pockets of the suburb are - where demand is highest. Then consider how your investment requirements fit around this. It&#39;s often worth heading out there yourself for a look, but remember not to be blinded by emotion.

The next steps

Remember to keep all your details together so you can refer to them when necessary. Every investor has a different strategy and a unique approach to the type of property they buy, and the reasons behind it, and the savviest investors regularly refine their process.

Which parts of the process would you like fleshed out more? We&#39;ll be delving into the different research techniques for you, how to decide the good versus the bad side of a suburb, and how to tell if a property really is comparable.

Email: <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>

Five steps for choosing the right investment suburb

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With property sales appearing to surge across Australia, Professionals Global chairman, Ian Cornell, said that the brand is in a strong position to grow.
Pointing to the economy improving, low interest rates, business confidence returning and the upswing being seen in property marketing, Cornell said that the time was ripe for expansion and to be investing in the future of the brand.
A significant focus for Professionals will be their internet presence, where they're intending to shift from a 'desktop' to a 'mobile' focus.
“With the huge growth in the use of tablet devices in recent years, we have made a major shift in focus when it comes to the design of web platforms,’’ said Cornell.
“Desktop users are now no longer the focus... With the new Professionals websites, tablet and mobile users became the initial focus, with the idea that ‘if it works on a tablet, it will work on a desktop’.”
With the property market in a growth phase since May 2012, he did note that it varies from region to region, pointing to backwards growth in Hobart and Adelaide of 2.9% and 0.8% respectively.
Sydney and Perth have been the stand out growth markets of the year, recording capital gains of 8.0% and 7.6% respectively.
“Our feedback from our principals also indicate that it is going to be a very busy spring for real estate agents across Australia,’’ he said.
“Buyers have returned to the market and property owners who have been thinking of selling, can see there is now pent-up demand for good quality housing in the market."
This comes as we recently reported that <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/some-of-the-country-s-biggest-real-estate-agencies-are-in-expansion-mode/2013101665738?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplusmain">Ray White and Raine &amp; Horne are also looking at expansion</a>.
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Professionals real estate plans for expansion as market grows

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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