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A decision to cancel the license of a former Maroubra real estate agent has been upheld, disqualifying him from being involved in the direction, management or conduct of a real estate business until 2021.
Former director and secretary of licensed real estate agency NG Farah Pty Ltd, Glenn George Farah, had plead guilty in September 2011 to dealing in the proceeds of crime and was sentenced to one year and nine month’s imprisonment.
The Sydney District Court suspended his sentence, releasing him on a good behaviour bond for the period.
Farah challenged NSW Fair Trading’s licence cancellation and disqualification; however the initial decision has been upheld after an internal review, leaving him unable to be involved in real estate business until 9 September 2021 <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/real-estate-agent-glenn-farah-disqualified-until-2021/2012100857041">as previously decided</a>.
“In light of his criminal conviction, Fair Trading directed Glenn Farah to show cause why his licence should not be cancelled,” Fair Trading commissioner Rod Stowe said.
“Licence holders are expected to operate in an honest and professional manner,” Stowe said.
 “The licensing system is designed to ensure a high level of financial integrity so that consumers face minimal risks and can be confident in their dealings with licensed agents and certificate holders.”
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Convicted real estate agent’s appeal knocked down

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With our poll yesterday seeing a majority of respondents believing Brisbane is the best capital city to be investing in currently, it’s the specific location that’s contentious.
Yesterday’s poll recorded 39% of votes pointing to Brisbane as the next best investment buying location, followed closely by Sydney at 22% and Melbourne at 11%.
<img src="/images/stories/Jen_uploads/poll-results-sept-5.jpg" width="470" height="460" alt="poll-results-sept-5">
Propertyology’s Simon Pressley told Property Observer that he does expect Brisbane to outperform the growth in the rest of the market by about 4% overall.
He also said that he has only recently begun looking at the market again.
“It had been rare for us to be buying in Brisbane over the last couple of years and in the last couple of months we have actually started again,” Pressley said.
With a GFC and two floods having softened the Brisbane property market, it had been running at a lag on the rest of the market for some time, however now stock is being soaked up.
“What I have seen is that it has been frustrating because of falling stock on market and when we do find that needle in a haystack sometimes it already has an offer on it."
“We’ve seen those dynamics before and it means competition and often leads to some decent price growth.”
When looking in and around Brisbane for the best location, however, it’s a contentious topic.
Right Property Group’s Victor Kumar pointed to best buying in <a target="_blank" href="/news">Logan</a>, an area that has a stigma with the locals and that he sees as undervalued as a result.
With townhouses up for $180,000 receiving rent of $240 to $250 a week, or around 7% yield, Right Property Group has purchased between 45 and 50 properties for clients over this year.
“The very first thing when you’re buying in Logan is that it’s a street by street thing and you need to avoid the flood streets,” Kumar explained.
“The whole of Logan didn’t go under and it’s easy to see on the Council websites where the flood zones are.”
For this reason, insurance premiums can also be a little higher.
Pressley, however, warns against buying in Logan noting that the numbers may look attractive to interstate buyers but that the opportunities are not as they seem.
“Logan has copped a bit of airplay. I personally don’t invest there."
“It’s traditionally had higher unemployment than the national average of Queensland’s capital, a low socio-economic demographic and, historically, crime and those sorts of things. It’s a mortgage belt area and has a lot of attraction from a less sophisticated investor with the low-entry point, particularly with people that aren’t local to Brisbane,” he said.
He said that it mirrors the area out in Sydney’s western suburbs, and this is why he does not invest there.
However, Kumar said that this is exactly the reason that he has turned his attention to the area.
“It’s just like western Sydney. There’s huge tenant demand and it has a stigma to the locals that is fading. It will turn a full circle in five to seven years,” he said.
“We’re already seeing growth. There’s one really easy way to find out whether there’s a sudden spur of activity and it’s when agents start not returning your calls. October last year we could put any price on it and now we have to be more realistic.”
Asked why other investors in Brisbane might not see Logan in the same light, he said it was once again the stigma.
“There’s one simple reason for that. You can’t see the woods for the trees. If you’re there you’re not seeing the changes that are happening in the areas. We’re coming in from an outside perspective and we’re seeing the fundamentals without the stigma."
“The cause for the stigma is part of basic investing in terms of fundamentals; you want to invest in areas with stigma where the cause has long gone. This is an area where locals haven’t caught up and the price hasn’t either.”
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Brisbane tipped for growth but jury out on best location

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While finding an area that will return you solid capital growth is a multi-layered approach, looking for income growth might just be the missing ingredient you haven’t factored in, according to a researcher.
SQM Research’s managing director Louis Christopher gave Property Observer an insight into how he finds areas that are ripe for capital growth, from a researcher’s perspective.
“For us, we start off with income growth and understanding the localities that have experienced strong household income growth compared to surrounding regions and the rest of the country,” Christopher said.
There is a long back series of census data available form the ABS that allows investors to gain access to this information. However, more recent updates need to be sourced from elsewhere, such as the ATO.
“Income growth is one of the key drivers of underlying price growth. It’s the ability to increasingly support and maintain house prices and serviceability of those house prices,” he said.
“Quite often I’ve seen a situation where population growth is zero but house price growth is increasing.”
An example of growth without population growth would be <a href="/news">Tamarama </a>in New South Wales.
“I don’t think there has been a unit built there in years but it’s a highly desirable place and with the various restricted supply yet ongoing increasing demand, the prices have in that area tend to outperform the rest of Sydney,” he said.
He also looks at the following indicators:
-          Population growth: This is still worth looking at, but zero population growth doesn’t necessarily mean zero growth.
-          Mortgage Stress levels: If they are low, it implies that there is plenty of serviceability for a local area. If it’s high there will be more sellers. You can take a contrarian point of view as they often sell below fair market value, but the housing market is difficult to get something below fair market value and it’s becoming increasingly efficient due to the information and technology out there and values tend to be spot on.
-          Sensitivity to interest rate changes: Mapping out changes to interest rates against real estate prices can help give an indication of areas more sensitive to changes
-          Specific data sets for trends: Vacancy rates, stock on market, where the prices are heading
-          Discount: Checking for a suburb that has a discount over the surrounding region. Has this suburb been rising consistently with the area, has it been falling behind or racing ahead? How has it moved historically compared to the surrounding suburbs in the region. That gives me some ideas of how it behaves in the cycle whether it has been bought or underbought.
-          Future infrastructure
Mr Christopher does note that while his expertise lies in being a statistician, investors must remember to do both quantitative and qualitative research away from just the granular data level.
“I have trusted agents on the ground and ask them what they’re experiencing, and have long-term working relationships with them. They’ve been fairly accurate and objective with what they’re experiencing,” he said.
Asking what the bidding is like, the open homes, how the rent is performing and the interest from buyers in the area is crucial.
“You need to understand ‘why’. That’s the key. If it has fallen behind, is it because infrastructure has improved elsewhere? You need to know these things,” he said.
“To get down to the individual street level you need to get out there and inspect properties and tour the streets.”
Earlier this week, Property Observer spoke to Rich Harvey, managing director of independent buyer’s agency <a target="_blank" href="https://www.propertybuyer.com.au/" rel="nofollow" style="font-size: 14px;">propertybuyer.com.au</a>, to find out his<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/hotspotting-tips-to-get-you-ahead-of-the-pack-rich-harvey/2013090364762?utm_source=Property+Observer+List&amp;utm_campaign=c4b6493dc1-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-c4b6493dc1-245313837"> hotspotting tips to get you ahead of the pack</a>. 
Mr Harvey said that while statistics are useful, locals are able to provide pertinent information about an area that might not be available otherwise.
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Income growth the secret to boom suburbs: Louis Christopher

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 The Australian Securities and Investments Commissions’ concerns about aggressive marketing of many geared property investment strategies in SMSFs has been endorsed by the SMSF Professionals’ Association of Australia (SPAA).
Referring to the increase of unscrupulous targeting of SMSFs, particularly in the property space, SPAA senior manager, technical &amp; policy, Jordan George, said that while there is a role for gearing into property through an SMSF, it should only be where trustees have access to best-practice advice from a licensed, qualified advisor.
“In a recent speech to the Tax Institute National Superannuation Conference, ASIC Commissioner Greg Tanzer expressed concern that some trustees were not receiving such advice, simply reinforcing what SPAA has been saying on this issue for the past year,” George said.
However, despite concerns about any increases of unscrupulous activity, he said that it was still not a widely used strategy.
“That said SPAA believes it’s worth noting that despite all the ‘talk’ around this issue, it’s still only a strategy used by a small minority of trustees.
“In our view talk of SMSF gearing being ‘out of control’ is simply not borne out by the facts. At June 2013, SMSF statistics show that only 0.5% of SMSF investments have limited recourse borrowing arrangements, and that this investment category has grown at less than 2% over the past four quarters to 30 June 2013.  This level of involvement has been confirmed by one of the big four banks.”
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Rise in unscrupulous targeting of SMSFs causes concerns

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New statistics from the Victorian Building Authority (VBA) have found that from January to July 2013, building permits have increased compared to the same period in 2012.
Over the 2013 period a 3.3% increase was recorded by the VBA, a result that VBA chief executive officer, Greg Hyams, believes is a positive result for the Victorian building industry.
“There were three significant levies collected in July that helped make this the highest one, but given there were also increases across several categories, these are positive results and bode well for the industry’s future,” Hyams said.
“In five of the seven building categories – residential (including high rise) commercial, hospital and healthcare, retail and industrial – the value of permits was higher for the period.”
Residential, including high rise, was up by 22.6% over the period compared to that in 2012. Retail rose by 31%, hospital/healthcare by 26.8% and industrial by 12.4%.
The only two sectors to see a decline were domestic and public buildings, with declines of 2% and 25.7% respectively.
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Building activity records jump in Victoria

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Despite increasing vacancies and softening yields being seen across Perth, one property expert is encouraging investors to hold tight and wait it out.
Momentum Wealth’s Damian Collins recently told Property Observer that despite <a target="_blank" href="https://www.propertyobserver.com.au/news/perth-landlords-lower-rents-to-dissuade-potential-buyers/2013090264735">rents being lowered by investors in Perth</a>, the best approach for those with properties is to wait it out.
“I don’t see rents rising for the next six to nine months,” Collins said.
“But having a bit of patience is important. Perth is still a high growth city in terms of population. There are a lot of economic opportunities.”
More tenants are moving out than previously seen, with many breaking their leases causing a significant rise in the vacancy rate to the mid 3% range.
His suggestion for investors was to ensure they price the properties at fair value.
“It’s better to have a tenant in there than to have it sit vacant,” he said.
“For an investor who bought 12 months ago, your [property’s value] may have gone from $480,000 to $520,000 or so, for just a $10 a week rental drop. Capital value has gone up over that time so it has to be seen in context."
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Perth property investors told to batten down the hatches

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Melbourne-located buyer’s agents have hit back against comments that investors should take their money to other cities than Melbourne, with a number saying that it represents good buying opportunities.
In response to <a href="https://www.propertyobserver.com.au/victoria/investors-warned-to-avoid-buying-in-melbourne/2013090264736" target="_blank">yesterday’s story</a> where investors were warned to avoid Victoria’s capital by wHeregroup’s Todd Hunter and BIS Shrapnel’s Angie Zigomanis, Wakelin Property Advisory’s Monique Wakelin came out in defence of the city.
“I’m frankly not interested in [Zigomanis’] charts, numbers and statistics."
“I see with my own eyes people queuing up at auctions, first-home buyers come through the door of this office hysterical as they can’t afford a place to live and I’d like Mr Zigomanis to tell me how he’d like to solve the affordability crisis in this country other than to build more dwellings,” Wakelin said of the accusations the city is in an oversupply.
While she admitted that yields were low across the city, she argued that this is only part of the picture for investors, with capital growth being the name of the game for Melbourne investors.
“He should understand that investing in property is probably only 30 to 40% about the yield and the main game of investing in residential property, he clearly doesn’t understand a thing about the residential market as the [main] game is about asset growth,” she said.
“I have read all of BIS Shrapnel’s prognostications and reports and I’m struggling to remember a single instance whenever they’ve been right.”
With the population growing strongly, she argued that it’s not the case that the city is oversupplied.
Docklands, Wakelin noted, is an exception with a lot of supply being evident. However, the new unit market is not where the savvy investors are looking.
“If he truly wants me to believe that the inner city unit developments, at zero to two kilometres, is going to completely undo the entire Melbourne property market then he should stick to comment on what he knows about, which is probably the stock market,” Wakelin said.
“Clearance rates do not necessarily measure whether the market is pricing itself up or pricing itself down. They measure the level of supply to demand and it was at 72% this weekend just gone. That is still telling me there is pent up demand and insufficient supply. If it drops to something in the 60% range then it’s closer to balanced. Clearance rates are very good at measuring over supply.”
Empower Wealth’s Cate Bakos also criticised the comments made yesterday, arguing that it generalised the entire Melbourne market.
“Melbourne does have terrible yields and in the short-term they have been pretty rubbish for quite some time but that’s not why anyone would invest in Melbourne,” Bakos said. Yield-chasing investors would do well elsewhere.
“I’m surprised that those comments were made at this stage of all times in the last two years as it’s in an upwards trajectory right now and it’s very hard to put a value on anything in such a buoyant market.”
Results Mentoring’s Brendan Kelly also said that in every market there are opportunities for investors, and Melbourne is no exception, perhaps even due to the repressed conditions.
“If you have a 30-year buy and hold in mind and Melbourne is meant to be the dreadful, miserable arm pit of Australia then doesn’t it make it good for a buy and hold for growth?
“Quite frankly, if yield is your primary driver then don’t buy in a city, or buy commercial. If you’re excited about a 3% yield then put cash in bank.”
Wakelin’s tips for buying in the Melbourne market:
- Aim for within two to 12 kilometres of the CBD
- Look for established stock rather than new
- If buying an apartment seek out those from the 1930s to the 1970s and always elect for parking
- If looking over $650,000 then look for two-bedroom period-style properties from the 1880s to 1940s  
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Melbourne buyer’s agents slam analysts

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With the Reserve Bank leaving the official cash rate on hold today, it has many property owners wondering whether now is really the bottom of the cycle and how they should make the most of it.
The lower interest rates has seen news come out of <a target="_blank" href="https://www.propertyobserver.com.au/news/perth-landlords-lower-rents-to-dissuade-potential-buyers/2013090264735?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">Perth of tenants breaking their leases to get into the buying market</a>, causing landlords to react by lowering their rents.
However, in other states and territories this isn’t quite the same story and there are opportunities to take a closer look at how to time decisions correctly.
“Perth is the only market where first-home buyers are back to where they historically have been,” said BIS Shrapnel’s Angie Zigomanis.
“Activity in New South Wales and Queensland [from first-time buyers] is so low because of the changes to government initiatives that sucked the demand forward,” said Zigomanis.
This leaves investors in other states able to focus on maximising their investments during this lower interest rate period
When looking towards fixing your loan, however, there may yet be some time to go before it sits at the top of your to-do list.
Zigomanis predicts that there’s the potential for perhaps just one more cut this year.
“But they’ll probably stay stable for all of 2014 and start rising from 2015. The RBA will want to see an upturn in the economy first. Their real concern is that they’d like to see an upturn in construction that it is sustainable,” he said.
“Wait a little longer to fix.”
SQM Research’s Louis Christopher agreed that the end of the rate cutting cycle is getting closer and that investors need to start being diligent about looking out for when increases are likely.
“The first thing we’ll see before an increase will be the banks lifting their four, three and two year fixed rates move to being at a premium to current variable rate, whereas currently they’re on par or at a discount to them.
“When that will happen I’m not sure, but it will happen when the market starts to tip more confidence in the economy, business and consumer,” Christopher said.
However, there’s one unknown factor for investors looking to pick when the next increases may occur.
“Will the RBA need to respond to rapidly rising house prices? It has been a good run so far for existing property investors and owner occupiers and we think the market recovery will continue into 2014,” he said.
In fact, currently the biggest indicator for investors will be the percentage rise by which the property market recovers.
In an address to the Anika Foundation at the end of July, RBA governor, Glenn Stevens said that the outlook for income but also the expectations for asset values, in particular whether housing prices are overvalued, will heavily affect the overall decisions made by the RBA.
“Those who think they are will be drawn to the conclusion that a number of additional years of flat or declining real per capita asset values lie ahead, for non-financial assets at least; those who are not so worried about housing prices may expect that stronger growth, in real per capita terms, might occur,” Stevens said.
“Either way, however, it would seem unlikely that we could bank on a resumption of sustained growth in assets, in real per person terms, of 7% per year over the next few years. It follows that the saving rate is unlikely, any time soon, to decline back to where it was in 2005.”
With this in mind, investors need to be watching the growth figures carefully to predict when the rate cycle might start heading upwards.
“It’s a difficult one to know whether they should fix at all. Timing of these things is very difficult to do. It takes constant research and what your own personal financial situations require,” Christopher said.
“It’s very individual but in our opinion we do believe we are getting very close now to the end of the interest rate cutting cycle. I think when there is more confidence, and it may well come soon after the election, it will be difficult for the RBA to justify the rate setting when house prices are rising beyond 7%.”
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RBA leaves interest rates on hold

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While some areas of Sydney are seeing regular increases in rents, the inner city isn’t faring so well, according to a property manager in the area.
Let’s Rent director, Lisa Indge, said that rents are beginning to drop in the more prestigious areas that her office covers and she believes it may actually be due to the upcoming election.
“We’re not seeing properties racing off the books and we’re actually reducing rents,” Indge told Property Observer.
Top end rental properties in Balmain, such as around the $1,500 per week mark, are seeing $100 taken off of the weekly rent.
“Perhaps the demographic around here is more politically aware or feel they may be more affected by this change in government,” Indge suggested, pointing to the fact that the tenant demographic includes small business owners.
With mixed reactions from investors to the news of a softening in the rental market, Lisa Indge is currently warning investors to be aware of the importance of avoiding vacancies, even if it means reducing the rent.
In the inner-middle ring of Sydney, such as around Dulwich Hill, enquiries are still high for rental properties particularly in the $700 to $750 mark.
“Suburbs close into the city are a little bit nervous while those further are doing a bit better,” Indge said.
Properties weathering through the decline well in terms of tenant interest are that are still  in good condition and have been well renovated.
Two-bedroom properties with parking are also still in high demand. 
“I think parking is going to be more and more of an issue for renters particularly, and therefore investors. You have to pay more but the percentage of rental value attributed to parking as time goes on is going to increase. We’re currently looking at a much higher percentage now than before.”
<a target="_blank" href="/news">Scheduled auctions across the capital cities are the lowest they’ve been in some time</a>, with a total of 916 auctions scheduled this week, according to RP Data.
Across the country <a target="_blank" href="/news">Darwin leads the nation when it comes to price recovery</a> since the market trough, followed by Perth, according to RP Data Rismark.
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Election may be cause of inner city rental decreases

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Investors are being warned to steer clear of the Melbourne market, with poor yields and an oversupply in the foreseeable future making other areas more attractive.
Pointing to a large number of potential land releases across Melbourne, and the mass of units still in the pipeline, wHeregroup buyer’s agent Todd Hunter told Property Observer that he is steering clear of Victoria’s capital.
“It was heading into an oversupply about five years ago,” Hunter said. “[Properties] are only achieving 3% to 5% yield and that’s terrible. You may as well have your money in the bank in a cash account.”
BIS Shrapnel’s Angie Zigomanis agreed with this analysis, noting that there’s still a large pipeline of units under construction that have yet to come through to completion due to longer lead times.
“The flipside with land is that it can be switched on very quickly [in Melbourne],” said Zigomanis.
“Compared to three or four years ago, there are more estates are coming onto the market so there’s not as likely to be as much pressure on prices from a supply perspective.”
With auction clearance rates improving, interstate investors might be under the assumption that the market is picking up as well, however this isn’t the case, he said.
“It’s a bit misleading in relation to looking at the market from a broad point of view. Most auctions take place in the inner middle suburbs … and people in middle Melbourne are more secure and confident in employment than those on the fringes.”
The unit market is that tipped to move more into oversupply even while from a demand perspective the picture isn’t quite as bleak with population growth still strong, he said.
Mr Hunter also warned that the Sydney market also didn’t present best buying, noting it is too hot, with the best investment opportunities currently presenting themselves in Western Australia and Queensland.


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Image courtesy of J Kuba/flickr.
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Investors warned to avoid buying in Melbourne

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."

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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."

[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.

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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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