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Fearing that the property market will be used as a ‘rescue’ in the upcoming New South Wales state budget, the Real Estate Institute of New South Wales are warning the government to avoid the pressure of the federal budget to do so.
REINSW president Malcolm Gunning has urged Premier Mike Baird not to “follow the lead of previous governments who [have] used the property market to raise additional revenue” in a period where the market has shown recovery. He said that property shouldn’t be treated as a “cash cow” by the government.
“The property market is just showing signs of recovery and not all areas are enjoying growth. Property consumers and in particular first home buyers should not sit back and let this happen,” said Gunning.
He urged the state government not to increase land tax or stamp duty to plug budget holes.
In fact, some of his points closely match the <a href="/expert-insights/investing/the-reias-10-point-wishlist-for-the-federal-budget">10 point budget wish list submitted by the Real Estate Institute of Australia for the federal budget</a>.
Instead, a broadening of the GST tax base was suggested by Gunning.
“This should replace the revenue losses from the abolition of the discriminatory and inefficient state taxes,” he said.
<blockquote>
The REINSW urged the state government not to increase land tax or stamp duty to plug budget holes.
</blockquote>
“We have called on other state property institutes, associations and franchisors to voice their support for tax reform and we have already received backing,” he said.
“For too long the property market has been the state government’s cash cow and property consumers are now saying enough is enough.
New South Wales is expected to be $548 million over budget in transfer stamp duty collections for 2013/2014.
“Furthermore stamp duty rates have not been reviewed for 40 years. Bracket creep works in favour of government revenue and that is the reason it has not been reviewed. As a result of the failure to amend stamp duty rates, and the subsequent increase in property values over time, the average home is being taxed beyond that of which parliament initially intended,” he said.
“Change is long overdue and now is the time for Mr Baird to show he is a different sort of premier and remove these barriers to the property market and in particular provide support to first home buyers."
While Gunning suggested that pressure from the federal budget may encourage Baird to treat property in the manner of an additional revenue raiser, it may not indeed be the case that the federal budget has a significant effect on the property market’s strength.
Wakelin Property Advisory’s Richard Wakelin said that while the federal budget is a "horror budget", it’s unlikely to hinder the market.
“Although it may sound counter-intuitive, the sustainability of the property recovery will actually be helped by the response of consumers to the federal government’s austerity measures. It greatly reduces the likelihood of over-exuberance in the property market – which is already performing very strongly – and this subsequently transmitting into price inflation,” said Wakelin.
“It was the real threat of a resurgence in price inflation that was the greatest threat to the continuation of the property market’s recovery. Inflation had been stirring in recent months. Indeed it reached 2.9% in the March quarter, up from 2.2% six months earlier. If this trend persists it will inevitably force the Reserve Bank to raise the cash rate, possibly more than once.”
See over page for more 
 
<hr class="system-pagebreak">
Wakelin noted that it appears the RBA is confident in easing inflationary pressures, with wage restraint and the view that the property market is easing, and it has extended a period of stable interest rates.
“But observers of monetary policy will know that the Reserve Bank’s attitude can change in a relatively short time.  For instance, were the Australian Bureau of Statistics to report a spike in recorded inflation in July, when they next publish, then the pressure to raise interest rates could mount,” he said.
He noted that the treasurer’s efforts may have “done enough” to temper exuberant behaviour and shops and at auctions, but not to the extent of losing positive sentiment completely.
“So despite the broad criticism of the Treasurer’s first budget, ultimately, it is much less damaging to the economy – and the property market – that inflation is reined in by an austere fiscal policy rather than the Reserve Bank raising the cash rate – which is a very blunt instrument that often takes months to exert the desired effect,” he said.
Recently, <a href="/expert-insights/investing/how-does-the-budget-affect-property-investors">Josh Atherton answered the question ‘how will the budget affect property investors?’</a>, saying that there are some changes (or changes that didn’t appear) that many investors should be thankful for.
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jduke-EHk3XBmHkn

Don’t treat property as a cash cow in state budget: REINSW

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The Sydney market could be moving into dangerous ground and a “boom mentality”, Residex’s John Edwards has warned.
Edwards said that growth in the Melboure and Sydney markets has been strong, however it appears to be Sydney that concerns him most.
He noted that the growth in real terms, after inflation, over the last 12 months has been 17.25% for houses and 10.78% for units.
“It is reasonable to suggest that this market is approaching a boom mentality and this situation is dangerous, particularly for those who are borrowing heavily to get into the market. Interest rates are more likely than not to increase now as we move forward,” he wrote of the price rises.
Just last month, Edwards tipped <a href="/expert-insights/investing/john-edwards-10-house-and-unit-suburbs-expected-to-outperform-for-the-next-five-years">10 house and unit suburbs he expected to outperform over the next five years</a> - with a Sydney suburb topping his list for the 'house' investment opportunities.
He noted that the current median value of Sydney houses, at $821,500, required the median Sydney family to pay 52% of their after-tax income to support repayments, even with a 20% deposit, leaving $812 per week available.
He noted that, historically, once the 50% mark has been breached on the Affordability Ratio, the market tends to adjust. 
“The high rate of growth will cause the Reserve Bank of Australia (RBA) some level of anxiety and potentially ensure there are no further interest rate decreases, and possibly bring forward interest rate increases,” said Edwards. “All are expecting unemployment levels to increase and this situation, coupled will all of the above, could be a recipe for some significant adjustments later this year or, more likely, early next year,” he noted.
Property Observer has previously explored how to spot a bubble, asking a number of experts the signs that they think typify an inflated housing market. You can <a href="/expert-insights/investing/exclusive-how-can-we-spot-a-housing-bubble">read their responses in this exclusive here</a>.
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Residex’s John Edwards says Sydney market over-borrowing is dangerous and approaching “boom mentality”

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Victorian broker Kieu Thi-Thanh Huynh, of Sunshine, has been sentenced to four years in prison, with a minimum of two years served before she becomes eligible for parole after being convicted of serious fraud offences.
Huynh has also been permanently banned by ASIC from engaging in credit activities and has been disqualified from managing a corporation for five years.
In February this year she pleaded guilty in the Supreme Court of Victoria on 27 charges of obtaining more than $9.4 million of property by deception. She was also charged with one attempt to obtain property by deception.
As the former sole director of St Andrews Mortgage Solutions Pty Ltd (SAMS), she was authorised between July 2010 and March 2013 for a number of Australian Credit Licensees.
The charges related to her involvement in creating false payslips to provide to various credit providers, supporting loan applications which she submitted on behalf of her clients. 27 loan applications totalling $9,411,688.30 were successful.
Huyhn's upfront commissions were $41,231.14, with trailing commissions of $14,510.85, a total of $55,741.99. She also received cash payments of $10,000 in relation to the false payslip scheme.
Huhyn has the right to appeal.
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Victorian broker jailed and permanently banned from credit activities after serious fraud conviction

Wolf of Wall Street's Gold Coast AREC 2014 attendance continues to provoke debate

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First Home Saver Accounts are being phased out, with no new accounts being accepted and contributions to dwindle.
After this time, they will become regular accounts with the institution they were taken out with.
It wasn't a hugely popular product with our Big Four and across all those providing this product, 46,000 total accounts were recorded in December 2013, with $521.5 million held in the accounts collectively.
ME Bank's First Home Saver Account, one of the most popular, saw 24,000 take it up. With an average of $15,000 in these accounts, general manager asset products Luke Easton said that they were not involved in any discussions with the government around the product.
In fact, it appeared that those who had taken out First Home Savers Account with ME Bank had been largely positive about it.
Easton said that he's disappointed that discussions around how to improve these accounts did not occur, before the decision was made to get rid of it entirely.
"We've been happy supporting first home buyers," said Easton, noting the scheme worked well for those involved. "None of the majors picked up on the product, and we've found it a great opportunity."
One of the benefits that ME Bank account holders found with the product was the inability to touch the funds for the four year dutation - in effect, forcing them to keep it saved away from temptation - and the subsequent requirement that it be spent for the initial purpose, to buy a home.
Many of the account holders were said to be influenced by their parents, who had been made aware of them by their accountants. In turn, they had then helped their children to set up the accounts meaning that "by the time they're 23 or so, they are sitting on a nice nest egg," he said.
In fact, he told Property Observer that they've been considering creating a replacement product for these prospective first time buyers.
However, he said that it's early days and they're looking for feedback first before coming up with any finer details.
Currently, the ME Bank website notes that they're investigating the impact of the announced changes on customers and the pending applications.
It notes that applications received prior to 7.30pm on May 13, 2014, will still be honoured, and that the government will make 17% co-contribution on deposits for this financial year.
Due to the changes, they can no longer offer the account.
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ME Bank looks for an answer to scrapping of First Home Saver Accounts

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Fridcorp’s first Sydney project, Eve, is set to launch their display home on Saturday 24 May with around 200 new apartments coming to market. 
The Erskineville development, which includes one, two and three bedroom apartments, is situated on the corner of Eve and Macdonald Streets.
It is expected to be a glitzy affair after they sent out fancy scented candles to potential buyers, according to The Australian, and after <a href="/expert-insights/buying/fridcorp-host-completion-party-for-avenue-in-south-yarra">their recent launch of South Yarra development Avenue</a>, which saw Manu Fiedel catering and a number of models hired for the event.
With interiors from Hecker Guthrie and dKO Architects, <a href="https://www.evebyfridcorp.com.au" target="_blank">Eve</a> is 250 metres from the train station and 10 minutes to the CBD.
It includes views of Sydney Park to the CBD, wide frontages and balconies, storage space and a communal rooftop leisure deck with private central courtyard.
One bedroom, one bathroom apartments are available from $525,000; two bedroom, one bathroom apartments from $750,000; two bedroom, two bathroom from $780,000; three bedroom, two bathroom from $1.1 million. Each comes with parking, built in wardrobes and air conditioning.
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Fridcorp’s Eve to launch tomorrow in Erskineville

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Across the country, numerous changes have been made to first home owner grants and whether you are eligible. Similarly, looking to move to a different state can change the amount of the grant you can achieve by thousands of dollars.
Other upcoming date changes can also have an impact.
Looking at the grants, several common eligibility factors remain in place. Usually, a spouse or de facto who already owns property stops you from being able to achieve the grant. Similarly, any ownership of your own can have an impact (note, however, that some states and territories allow previous ownership of investment properties in certain years). Residency is also usually required, for at least one of the de facto couple.
You will also be required to live in the property for a period of time within 12 months of completion - this is usually six months, however the trend has been to increase this to 12 months of continuous owner occupation.
You need to fill the form out in a timely manner, and be clear on whether the respective government uses settlement date or contract date as the important figure. If you're buying around a grant change, this becomes even more crucial.
Those who fail to fulfill these requirements can see themselves fined, along with being required to refund the grant.
Here are the grants current accessible by first time buyers, as per information available from the respective Office of State Revenues and Treasuries. Australian Capital Territory
First home buyers in the ACT can net themselves $12,500 after a grant increase from 1 September 2013. However, you will need to be buying a "new" or "substantially renovated" property worth $750,000 or less.
Those buying established properties have no available grant.
Those who want to get the FHOG will also need to stay in the property for 12 months upon completion of the dwelling - this is an increase from the previous six months.
For clarity, it's noted that new or substantially renovated properties include:
<ul>
<li>A home that has not been previously occupied or sold as a place of residence; or 
</li>
<li>A substantially renovated home that, as renovated, has not been previously occupied or sold as a place of residence; or 
</li>
<li>A property which is subject to an "off the plan" purchase agreement.</li>
</ul>
You have a period from exchange of contract to one year after either settlement or date of issue of the Certificate of Occupancy in which to claim the grant.
Owner builders can only lodge after the home has been completed.
Payment of the grant is usually then made within 10 days of lodgement.
First home owners who fulfil the requirements for the grant may also have the opportunity to defer their stamp duty.
New South Wales
First home buyers in New South Wales can currently net a $15,000 grant - however this will be reduced to $10,000 as of 1 January 2016. This grant is only available to those who buy a new home or build their home. The property's value must not exceed $650,000.
Their clarification of what falls under this bracket includes the following:
<ul>
<li>A home that has not been previously occupied, including occupation by the builder, a tenant or other occupant; 
</li>
<li>A home that has not been previously sold as a residence. Where the home is being purchased, it must be the first sale of that home; 
</li>
<li>A home that has been substantially renovated and a home built to replace demolished premises.</li>
</ul>
To access the grant, applications need to be lodged within 12 months of completion of settlement.
You must live in the property for a continuous six months within the 12 month completion date.
Duty exemptions are available for new properties, commencing from 1 January 2012, for properties valued up to $550,000 and concessions for those from $550,000 to $650,000.
Those buying vacant land will pay no duty on vacant land valued up to $350,000, and concessions from $350,000 to $450,000.
To be eligible, you must not have owned and occupied (for more than six months) a home in Australia after 1 July 2000, and you cannot have owned a property before this time.
Article continues on next page. Please click below.
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Northern Territory
First home buyers in the Northern Territory can see themselves given an extra $26,000, with established first time buyers not left out of the picture either.
From 1 January 2015, the First Home Owners Grant, however, will be redirected solely to first home buyers looking to buy or build a new home.
Currently, as of 13 May 2014, there exists a transaction eligibility threshold (in plain English, this essentially means that the property can only be worth up to a certain amount) for established properties only. Prior to this time, both were given a limit.
An established home is concerned one that has been "previously sold or occupied, and is lawfully fit for occupation."
A new home is considered one that has never previously been lived in or sold as a place of residence.
However: "To prevent anomalies, a discretion applies in limited circumstances to declare a home that has been previously sold, but not occupied, to be a new home."
It's slightly more complex for our first timers up north, however - the current eligibility threshold for established properties sits at $600,000.
From 13 May 2014 to 31 December 2014, a new home can bring in $26,000. Meanwhile, an established property in an urban area will be provided $12,000, and everywhere else will be given $25,000. The only material difference in grant money compared to 4 December 2012 - 12 May 2014 is an extra $1,000 for new homes (and threshold changes).
Urban areas basically means land that sits within the Darwin, Palmerston or Litchfield municipalities. It also covers Wagait Shire, the Darwin Waterfront Precinct, the "prescribed area" for the Darwin Rates Act and other areas potentially proscribed by regulation.
Since December 4, 2012, there has been no stamp duty concession for first timers.
Queensland
Queensland first time buyers, when purchasing new, can get themselves $15,000. Unfortunately, nothing remains for first time buyers who are purchasing established properties.
Their Great Start Grant was updated in 2012, previously being known as the First Home Owner Construction Grant and is available for all eligible transactions since 12 September 2012.
It is available for those buying new (or substantially renovated properties) or building a new home.
If you previously held any interest in residential property before 1 July 2000, even if it was an investment property, you're not eligible. Those who have had a property since - but used it solely for investment purposes and did not live in it - may be eligible. You'll need to give them tax return details, tenancy agreements and current electricity and phone accounts.
Grant applications are processed within 10 days of receiving the information.
Those looking to get the grant then must move into the property within one year of completion, and live there for six continuous months.
South Australia
South Australian first time buyers are currently eligible for a FHOG on both new homes and established homes - however, they will lose the ability to be given the grant on established properties from 30 June 2014.
The property value must not exceed $575,000.
For those buying a new home, since 1 January 2014 and until further announcements, $15,000 is achievable.
For those purchasing established homes, current $5,000 is attainable - dropping to $0 from 1 July.
If you previously held any interest in residential property before 1 July 2000, even if it was an investment property, you're not eligible. Those who have had a property since - but used it solely for investment purposes and did not live in it - may be eligible. You'll need to give them tax return details, tenancy agreements and current electricity and phone accounts.
After the property is built, you must then live in the property for six months commencing within 12 months of completion.
Off-the-plan properties may also be eligible for a stamp duty concession for a new apartment or substantially refurbisged apartment. Thisis for properties from 31 May 2012 to 30 June 2014, capped at the stamp duty payable on a $500,000 apartment (or $21,330). A partial concession will apply from 1 July 2014 to 30 June 2016.
The concession does, however, apply to specific areas as outlined on the Revenue SA site and associated maps.
Article continues on next page. Please click below.
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Tasmania
Currently, established and new properties can receive a benefit for first time buyers, with up to $30,000 available. As in many other states and territories, this is altering from 1 July 2014, and will see established home buyers lose the benefit. Established property buyers can currently get themselves $7,000.
For new properties, the First Home Builder Boost has increased since 7 November 2013 from $8,000 to $23,000, and applies until 31 December 2014. Those eligible for this would also be eligible for the $7,000 FHOG, bringing their total payment to $30,000.
To be eligible, you must not have owned and occupied (for more than six months) a home in Australia after 1 July 2000, and you cannot have owned a property before this time.
When you get the FHOG, you need to live in the property for a continuous six months within 12 months of the data that the certificate of occupancy is issued.
Victoria
Only new properties get first time buyers a grant in Victoria, as of 1 July 2013. A payment of $10,000 is available.
It is only available for properties that do not exceed $750,000 in value, apartment from properties on primary production land.
You must live in the property for 12 months continuously, within 12 months of settlement.
The reduction in duty is becoming increasingly attractive - initially, 20% was reduced on 1 July 2011, followed by 10% on 1 January 2013, 10% on 1 July 2013 and an upcoming 10% on 1 September 2014.
Western Australia
A grant is available for first time buyers of $10,000 for those purchasing or building a new home. This has been available since September 2013. Those looking to buy established may be able to net a $3,000 grant.
Eligible properties are to a limit of $750,000 , or $1,000,000 if located north of the 26th parallel. This cap was introduced in early-2010.
To be eligible, you must not have owned and occupied a home in Australia after 1 July 2000, and you cannot have owned a property and lived in it prior to 1 July 2004.
You must live in the property for a continuous six months within 12 months of completion.
An extra benefit for West Australian first timers is the Home Buyers Assistance Account, which can provide $2,000 in help. Essentially there for 'extra' fees around buying, such as solicitor fees and valuation fees, you must be buying a property for $400,000 or less. It must be an established or partially-built home.
You must live in the home for the first 12 months, purchase through a licensed real estate agent, have not owned property in Australia before and must have the loan financed through a lending institution. This $2,000 comes from interest paid on real estate agents' trust accounts.
First home owners also receive a discounted stamp duty rate. For properties with an established home, no duty is payable up to $500,000. After this bracket, $22.51 per $100 is payable. For vacant land, no duty is payable up to $300,000, and after this $13.01 per subsequent $100 is payable. For vacant land, you will need to pay this upfront and then retrieve a refund on receipt of the FHOG - once you have completed the build.
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The national guide to first home buyer grants

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Depreciation is a paper-cost that investors are increasingly savvy about, however like any industry, not every depreciation schedule is made equal and some quantity surveyors are more thorough than others. This may mean that your deductions are no where near where they should be, explains BMT Tax Depreciation managing director Bradley Beer.
In a recent conversation with Property Observer, Beer explained that a quantity surveyor’s ability to spot renovation that may have been done before an investor purchased, or knowledge of when something looks out of place, can quickly help push up the claimable items.
Those who self-assess without the knowledge or property diligence, or estimate costs on their own judgement, may be missing out.
He also recently said that two types of deductions are regularly missed – capital works deductions and plant and equipment depreciation.
Beer pointed to the recent ATO stats, where 2.5 million of Australia’s property investors claimed deductions over 2011/2012. Just one million received an average capital works deduction of $2,029, which 1.7 million claimed an average plant and equipment depreciation deduction of $1,139.
“A total depreciation claim of $3,168 on average is well below the typical claim found for residential investors who request a BMT Tax Depreciation Schedule. Data collected from tens of thousands of depreciation schedules prepared by BMT Tax Depreciation suggests the average claim should be around $10,100 in the first full financial year and $7,350 per year on average over the first ten years of owning a property,” said Beer.
While not all can claim capital works deductions due to restrictions reliant on construction commencement date, plant and equipment deductions can be claimed regardless of the age.
“We’re continuing to see a trend that suggests the owners of older properties don’t claim the maximum capital works deductions available. Older properties have often had renovations completed. Even work completed by a previous owner of the property can be claimed as a capital works deduction by the current owner,” he said.
Observer Terry Ryder wrote today that depreciation is "<a href="/expert-insights/the-single-biggest-missed-opportunity-by-property-investors-depreciation">probably the single biggest missed opportunity by property investors</a>".
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How much should your depreciation deduction come to? Perhaps more than you think

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Maribyrnong is set for the launch of ICG Property’s latest apartment development, Mosaica, that has been designed by Rothelowman.
The apartments will have views of the Maribyrnong River, water, local parklands, Flemington Racecourse and city skyline.
The boutique block will feature 29 apartments with floor-to-ceiling windows, and a balcony or terrace.
<img src="/images/2014/05/22/maribyrnong-may-22-two.jpg" alt="">
Located on Horizon Drive, Mosaica features one-bedroom apartments ranging from 51 to 60 square metres from $395,000. Two-bedroom apartments from 66 to 74 square metres will be priced from $495,000, while a three-bedroom apartment opportunity spans 116 square metres for $795,000.
The bespoke interiors from Rothelowman, have director Kim Lowman noting that they’d aimed for a warm feel that allows purchasers to make their own stamp.
“We wanted individuals to be able to imbue their own character through their artwork and furniture, to set up their own style within the apartment,” Mr Lowman said.
“Externally, Mosaica presents a striking, contemporary façade with robust forms and clean lines.”
ICG Property director Michael Hepburn said that it’s in a dress circle location, opposite Pipemakers Park, and that the views cannot be built out.
<a href="/expert-insights/buying/melbournes-north-western-developments-seeing-strong-sales">In March Property Observer noted</a> the strong sales recorded in several other north-western Melbourne development projects.
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Rothelowman-designed Mosaica apartments to launch in Melbourne

Signboards: A real estate staple, but do they have a future?

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

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The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

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According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

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Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

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Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

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Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

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Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

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Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

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Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

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Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

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Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

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La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

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<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

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Jennifer Duke

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