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Twenty formal warnings have been issued to Victorian estate agents as a result of a recent review, with 13 continuing investigations into underquoting at agencies across the state currently underway.
“Consumer Affairs Victoria is determined to level the playing field for Victorian home buyers,” Consumer Affairs Victoria director Simon Cohen said.
Victoria has seen court action with agency Hocking Stuart last month ordered to pay $330,000 for “serious” underquoting.
Legislation has been passed by the Victorian Parliament that will force agents to give greater context around how they reached an estimated sale price, including using at least three comparable sales as a reference point for advertising the estimated price.
A survey by Consumer Affairs Victoria as part of its 12-month review into real estate agent underquoting found a quarter of the properties sold for between 10 and 20 percent more than their advertised estimated price.
Taskforce Vesta reviewed 200 Victorian properties from first listing to sale over the past year, and 63 percent of them sold for above the estimated price.
Some 30 percent of properties sold for between 0.1 and 10% above the estimated price; 26 percent sold for between 10.1 and 19.9 percent above the estimated price; and 7 percent sold for 20 percent or more above the estimated price.
The findings led the consumer watchdog to review 1400 files at 34 real estate agents across the state, SmartCompany reported.
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jchancellor-FAypfDUnLy

13 Victorian estate agents facing underquoting prosecution

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It is no surprise the last direct link of the presidential candidate Donald Trump to Australia was a real estate conference.
It was four years ago when the entrepreneur Donald Trump told his Australian estate agent audience that owners struggling to sell their prestige homes shouldn’t fire their listing agent, just “fire them up” with the prospect of higher sales commission.
The billionaire property developer and host of The Apprentice advised his devoted audience via satellite that he regularly pays his agents 2 percent or 3 percent higher than the regular sales commission rate.
"Over the years, I have done every conceivable thing to agents, including a time when I decided to cut the agents out on a beautiful building I was marketing to try and save on the commissions,'' Trump told the audience of estate agents at the Australasian Real Estate Agents (AREC) conference on the weekend at the Gold Coast.
"But did I learn the hard way that was a bad idea. The sales I had started to dry up. I found out the agents were telling people the building was no good. They weren't stupid.
"Now I pay 7 or 8% commission and go [to] the other extreme because it means people bring buyers to me because I pay a better commission. It works.''
Trump, who praised estate agents as strong, smart and resilient, cautioned the 2,500 agent audience not to let the economic environment make them too aggressive.
"If you are too aggressive to the point where you become obnoxious, you are not a good agent,'' he said.
"When I'm looking for an agent, I look at their past success and their reputation. I want to see their record: are they honourable people, are they well liked and what is their success rate like? And if I like what I hear, I make a deal.''
Negotiation skills were also important, he added, saying his tip to prospective vendors in choosing the right real estate agent was to “look at their past success,” News Ltd papers reported.
Last month the local Apprentice television host, Mark Bouris suggested Australian estate agents would be more successful if they emulated the “big man”.
He suggested it was important to build a strong image based on consistency and trust. 
Bouris was speaking at The Great Start, an exclusive breakfast event in Sydney with an agenda to help agents build their personal brand hosted by realestate.com.au.
 
“The most important variable in how [to build a personal brand] is consistency. You’ve got to be consistently the same. People don’t like to be surprised. They want to be familiar with you. The way you build familiarity is someone sees something at the same place, at the same time, in the same way, in the same image. Familiarity also then builds trust.”
Mr Trump is the best example of this, being the “most consistent brand person” Mr Bouris has “ever seen and/or met”, the REB wesbite reported.
“Now, Donald, you might not like him, he is divisive. I get it. But he’s never off brand. Never,” Mr Bouris said.
“He is totally consistent. And you watch him today when he walks onto the stage, he’s exactly the same person he is the day before, the day before, the day before.
“He’s not changing. He’s not a shape changer. He’s not an image changer. He is consistent and persistent.
“And it seems like that’s what you’ve got to do if you want cut through to build awareness campaigns – because he’s trying to win people’s votes, which is what all of you are trying to do, or I try to do. I try to win consumers’ votes to come to me. You’re trying to win investors’ and vendors’ votes to come and see you. It’s a campaign. An election campaign. It’s about your image. It’s about being consistent.”
Mr Bouris said agents also have to be consistent in what they say, adding that they must believe the messages they’re putting out to the market.
“Whatever you decide to establish, be consistent on everything you do with it. Everything,” he said.
“This is all pervasive… It is everything you do. Everything you do.”
Mr Bouris said this consistency includes physical appearance, where, perhaps, Mr Trump offers yet another lesson.
“You have to have an image that you are consistent with physically, your appearance,” he said.
Even Mr Trump’s hair could have a lesson for agents.
“Now, we all laugh at that, but his hair is part of his physical image.
“If you look at him now, his hair has never changed colour – it’s getting a bit more yellow – but it’s never changed colour, ever since I can remember. And it is part of his physical image. He comes out always with a satin tie. It’s a pink or it’s a red or it’s a blue. He comes out with a pinstripe suit.
“He’s a big man. He’s a big guy. So his whole physical image has never changed. I’ve never seen him thinner or fatter. He’s got a sort of colour about his skin… He’s always the same. And this is a guy trying to become president of the United States. He is the alternative candidate.
“So obviously something works.”
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Agents told to emulate Donald Trump by local Apprentice Mark Bouris

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GUEST OBSERVER
One of the many advantages in using a buyer’s advocate is to capitalise on both their knowledge of the property market and their relationships with the sales agents.
As a result of such a relationship, I managed to obtain access to an off-market property in the Lower North Show and set up a private inspection with my client.
At the time I suspected the property would be beyond my client’s budget but my client still insisted on viewing the property.
It was a lovely family home in excellent condition and as it was of interest to my client, we completed an appraisal, concluding that the property would be very fair buying in the range of $3.79m to $3.84m.
After discussions with the agent, it was revealed that the vendor ideally wanted $3.9m but we suspected that there would be some room for negotiation.
At the time, I anticipated we would be able to secure the property for around $3.8m to $3.85m but unfortunately this was well beyond my client’s limit so we moved onto another property.
As it would turn out, the vendor’s motivation actually increased a month later once they had purchased and they decided to list the property on the open market.
A couple of weeks later we were contacted by another person who expressed interest in our service.
They initially wanted to purchase a home in Sydney’s Eastern Suburbs and so I arranged for a meeting with my colleague who specialises in the East.
We outlined our services and put forward our fee schedule. However, unfortunately after further discussions with this prospect they decided not to proceed, but rather to attempt to secure a home themselves.
This is not an unusual occurrence as I have to admit that it can be a little difficult for some people to see the value in our service prior to engaging us.  
As we usually do, we followed up a few more times over a two-week period before finally making contact. 
They told us they had decided not to purchase a home in the Eastern Suburbs, but changed track and preferred a house in the Lower North Shore and of course, you guessed it – it was the same one that I had seen prior to it coming to market.
But the sad part about this story is that this person ended up buying the property in question for an inflated price of $4.07m. 
I will always respect one’s decision to do it alone, using a buyer’s agent is not for everyone.
This was another example of a good selling agent doing their job well and taking advantage of an inexperienced and possibly emotional buyer.
I believe that even after the buyer would have paid our fees, I would have saved them around $200k.
However, this buyer was no Robinson Crusoe – sadly I’ve seen it many times before. Another win for a vendor – I only wish I could have been involved.
Rich Harvey is REBAA president and can be contacted <a href="https://www.rebaa.com.au/" target="_blank">here</a>.
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How to throw away $200,000: Rich Harvey

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Property tycoon Donald Trump’s outrider, Todd Wynee-Parry visited Australia sizing up opportunities in 2013.
A few headlines, but it never looked likely there would be any investment.
“I think [the Gold Coast] needs to rethink its development strategy and designate some proper resort sites," he advised at the time.
"The Gold Coast is a gorgeous beach with no world class resorts actually on the beach," saying Queensland needed to lift its game if it hopes to attract more premium tourism.
Mr Wynne-Parry was speaking at the Tourism &amp; Transport Forum’s 2013 Outlook Conference in Sydney where the Trump group gave fleeting interest to developing a prestige hotel and apartment Trump Tower at Sydney’s Barangaroo.
But Australian gambling tycoon James Packer had a near monopoly on that ambition.
"You're not a global hotel company unless you're in Sydney," Wynne-Parry suggested.
"There is room for another luxury hotel and we would love to be a part of Barangaroo or anything that gives us a decent shot at 150-200 rooms with some residential and good connectivity to the CBD. Maybe (we could get) concessions from the government in terms of a tax holiday or something and an enhanced GFA (gross floor area)."
Also speaking to the Tourism and Transport Forum at the Sydney Hilton via video link, Trump's daughter Ivanka -- the Trump Hotel Collection executive vice president of development and acquisitions -- said the company wanted a "very big" piece of the Australian market.
"I just wanted to reiterate how important Australia is to us strategically as we grow the Trump Hotel Collections around the globe," she said.
"There are many great cities . . . for our hotel collection and we are very excited about making our presence felt in Australia in a very big way."
Trump International's then senior vice-president for global hotel development and acquisitions, Todd Wynee-Parry departed the empire in mid-2014 when he became senior vice president development at Commune Hotels &amp; Resorts.
From October 2000 until 2006, he was in the TOGA Group to head up the growth of its hotel mamagement division.
"Todd was responsible for significant growth of the business and was directly responsible for the identification and securing of many new management opportunities," Alan Vidor said adding he was "tenanciaous, commercially astute, driven and extremely hard working." 
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Trump remains a no-show in Australian tourism

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The Hillary Clinton campaign released a three-and-a-half minute video of a small businessman, Andrew Tesoro, who tells how Donald Trump cheated his five-person architecture firm out of thousands of dollars back in 2006.
It was when the practice designed the clubhouse at the Trump National Golf Club in the Westchester County town of Briarcliff Manor, NY.
<a href="https://www.youtube.com/watch?v=OmfSWPmw86k" target="_blank">Manhattan-based architect Andrew Tesoro</a> said throughout the design process, Trump asked for multiple redesigns. 
Tesoro provided $140,000 worth of extra work and Trump shared that he loved the design. Trump’s representatives then told Tesoro they would only pay him $50,000, later decreasing  the amount even further to $25,000. Trump responded through his lawyers: Accept pennies on the dollar or I’ll tie you up in court for years.
The video intersperses Tesoro’s narrative with footage of the candidate at a campaign rally saying, “I’ve built an extraordinary business on relationships and deals that benefit all parties involved.”
The video had more than 7 million views on Facebook. Tesoro, 64, doesn’t hate Trump.
He told Forbes magazine although he resented that Trump shorted him a huge amount of money, "his organization does that to everybody.
"At the time I could see that the carpenters, the tile guy, the landscape consultant, the mechanical engineering consultant, other vendors and tradespeople were all subjected to an after-the-fact renegotiation challenge.
"I didn’t take it personally. 
"And I believed Donald Trump when he showered me with compliments. 
"Maybe that was his way of manipulating me into accepting less money. 
"He was also nice and decent to me on an individual basis."
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Trump golf course clubhouse architect on Trump negotiating tactics

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The expatriate infrastructure guru Peter Hofbauer has secured the snappy sale of his Mosman home.
The six-bedroom Bradleys Head Road trophy home on 2244 sqm was listed only late last month with an asking price of between $15.5 million and $16.5 million through McGrath agents Michael Rava and Michael Coombs. 
It set a non-waterfront record for the suburb when it last sold at $7.15 million in 2001, but not this time.
Hofbauer, who was previously Babcock &amp; Brown's head of infrastructure, moved to London in 2007 where he now oversees infrastructure investments at Hermes, which is owned by BT Pension Scheme in London.
Mandolong House, one of Mosman's most coveted heritage estates, holds the inland record when selling at $18 million in 2012.
This article was first published in the Sunday Telegraph.
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Infrastructure guru Peter Hofbauer secures snappy Mosman sale

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An Elizabeth Bay trophy home, Berthong, once owned by actor Russell Crowe, has been quietly listed for sale through Christies International.
It means the 1880s villa, and the neighbouring harbourfront, Boomerang, are now both for sale, but by different Melbourne vendors. 
They were once both owned by the Albert family.
Berthong, which sits in lush grounds having been once part of the orchard of the colonial secretary Alexander Macleay, carries a price tag of $37 million to $40 million.
For a time Berthong was a strata duplex which was reunited as a home by the late adman Michael Ball, who sold it in 1995 to News Corp executive, Lachlan Murdoch who sold it to Russell Crowe for $9.25 million in 2001. Crowe owned the home for two years.
This article was first published in the Saturday Daily Telegraph.
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Berthong, Elizabeth Bay harbourfront trophy home listed

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A likely $16 million private treaty trophy home sale in Mosman headlined the nation's weekend property sales.
It was the redundant Federation Queen Anne style home of the London-based infrastructure investment adviser, Peter Hofbauer.
The six-bedroom <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house/nsw/lower-north-shore/mosman/322852" target="_blank">1910 Bradleys Head Road</a> trophy home (above) on 2244 sqm was listed only late last month.
Offers were not due for another 20 days when it was snapped up Friday night.
It came with an asking price of between $15.5 million and $16.5 million through McGrath agents Michael Rava and Michael Coombs. 
It set a non-waterfront record for the suburb when it last sold at $7.15 million in 2001, but not this time.
At around $16 million is does rank as the third highest sale result across the lower north shore this year.
The Melbourne-born Hofbauer, who was previously Babcock &amp; Brown's head of infrastructure, moved back to London in 2007 where he now oversees infrastructure investments at Hermes, which is owned by BT Pension Scheme in London.
The top auction sales reported in Melbourne and Sydney were also both secured early in their pre-auction marketing.
A Cronulla beachfront (below) sold <a href="https://www.realestate.com.au/sold/property-house-nsw-cronulla-121799054" target="_blank">well ahead of its scheduled weekend auction</a> at $5.25 million on October 25.
<img src="/images/2016/11/07/Screen%20Shot%202016-11-07%20at%209.40.05%20AM.png" alt="">
The five bedroom, five bathroom bayside home sits on a near level 1340 sqm block with 24 metre width on the water.
It last sold at $4.3 million in 2011.
The Seaholme sale on the bay near Melbourne's Altona at $2.888 million was secured October 20.
The Jon Fredrick and Clayton Brown architecturally designed four bedroom home with study had a prominent street facade since built around 10 years ago.
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The <a href="https://www.realestate.com.au/sold/property-house-vic-seaholme-123732738" target="_blank">13 Esplanade, Seaholme home</a> (above) had been initially listed in May with $2.9 million hopes. 
Auction activity has continue to rise through into the final month of spring, however the number of auctions remained well below the highs recorded a year ago.
The preliminary national clearance rate was 77.5% across 2,490 reported auction results, according to CoreLogic.
This was higher than last week’s final clearance rate of 74.4 percent, with auction volumes increasing compared to the 2,253 capital city auctions reported last week.
Over the corresponding week last year, auctions volumes were significantly higher with 2,947 auctions reported and a 61 percent clearance rate.
The jump in success rate over the past week was especially evident in Melbourne which reported an 80.5 per cent clearance rate, up from the previous week's 77.5 percent.
There was a bigger jump in the Canberra clearance rate. Across Canberra a total of 113 auctions were held this week, compared to 93 last week and 122 at the same time last year. Canberra’s preliminary clearance rate of 79.5 percent was up on the 70 percent in the previous week. 
Sydney's 82.1 percent was the fourth week-on-week reporting above 80 percent, up from 80 percent, although the total 1,063 auctions scheduled fell just below last week's 1,100.   The Domain chief economist Dr Andrew Wilson suggests the Sydney market was beginning to ease 'reflecting more choice for buyers'.
'With more robust listing numbers also set for coming weekends' said Domain chief economist Dr Andrew Wilson.
Sydney’s preliminary auction clearance rate was up slightly on the prior week's 80.5 percent, while one year ago it was a significantly lower clearance rate of 58 percent.
The Northern Beaches sub-region of Sydney has shown the strongest performance with 92 percent of the 111 reported as sold over the past week.
It included the Thursday twlight auction when the North Curl Curl home of model Jennifer Hawkins and builder, husband Jake Wall sold.
They secured a $5,235,000 sale of the Koichi Takada-designed five bedroom, three bathroom home that had been listed with $4.8 million expectations.
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$16 million Mosman sale leads weekend results

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<img src="https://counter.theconversation.edu.au/content/67912/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Aquaculture is in the spotlight again, with an ABC investigation raising concerns over the sustainability of the expansion of Tasmania’s salmon-farming industry.
Controversies over fish farming are newsworthy and emotive, particularly when company profits and communities are at stake. Unfortunately, independent scientific evidence is often used selectively or even ignored in these debates. 
Science is an essential tool for managers and regulators when planning industry expansion, and Australia’s aquaculture industry does have a strong research base. 
Fish farming can be sustainable, but only if it takes proper account of scientific research – and only if that research moves fast enough to give an up-to-date picture of the risks.
<h2>Demand for sustainable aquaculture</h2>
The ever-growing demand for seafood, combined with the limited opportunity to increase catch from wild fisheries, means we need more aquaculture. Farming already produces roughly 50% of the global seafood supply, and farmed fish production now exceeds that of farmed beef. 
Intensive aquaculture is relatively new, with supply rising tenfold since the mid-1980s. It is thus unique among food production sectors in that its initial expansion has taken place in an era of unprecedented scrutiny from government, environmentalists and the community. 
This scrutiny is warranted, given that many fish farms are in coastal waters considered as a multi-use, common resource. In Australia, the industry is subject to high environmental standards and constantly evolving management.
Intensive aquaculture has several inherent advantages over other forms of agriculture (besides the intrinsic health benefits of seafood). These include efficient food conversion (it takes just 1.3kg or less of feed to produce 1kg of salmon, compared with 1.8kg for chicken and 2.6kg for pork); relatively limited use of fresh water; and the absence of fertilisers. 
However, there are also significant sustainability challenges, including limiting marine feed ingredients; waste management; the use of drugs, colourants and other chemicals; impacts on wild marine species; management of fish health and welfare; site selection; and societal attitudes. 
The aquaculture research community is acutely aware of these challenges. At a World Aquaculture conference in Adelaide in 2014, the program was dominated by issues related to sustainable development.
<h2>Planning for the future</h2>
In the forseeable future, world aquaculture production is projected to grow at least at its current and long term rate of 6.5% a year. Australia’s industry, while representing less than 0.1% of world production, is growing even faster: more than 7% a year over the past decade. 
Given cost constraints, this future expansion will be mostly inland or in coastal marine environments. Scientific input will be crucial if this expansion is to be managed in a sustainable way.
For example, coastal aquaculture operations are exposed to conditions that create good years and bad years. Understanding the spatial and temporal variation in these conditions is critical. It is not in the industry’s interest to risk growing fish in marginal conditions. 
Conditions are also becoming more challenging as a result of climate change – the oceans off Australia’s southeast are among the fastest warming on the planet.
Enlightened aquaculture businesses are trying to anticipate these conditions by working with scientists including CSIRO and the Bureau of Meteorology to understand future environmental risks on a range of timescales. 
Seven-day ocean forecasts and medium-term outlooks covering several months will help the industry make decisions about cage locations, stocking density, diet, disease management, and when to harvest.
<a href="/images/2016/11/07/image-20161031-27102-1uht7n5.jpg" target="_blank">Click to enlarge</a>
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Monthly forecast of ocean temperatures for the east coast of Tasmania for the coming months Author provided
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Meanwhile, longer-term planning, on time scales of years and decades, will be informed by climate models. For example, the industry can aim to breed fish to cope with changing conditions such as warmer water. 
Of course, forecasts are never 100% accurate, meaning that aquaculture businesses still need to account for risk and uncertainty. 
<h2>Planning for now</h2>
Science is clearly crucial for effective future planning. But it is also important to ensure that current management is the best it can be, and that current risks are managed. 
In the case of finfish aquaculture, the potential for localised impacts on the seabed around sea cages is well known, and monitoring and management strategies well established. 
The potential for adverse effects on the water in and around cages is also important, and water column monitoring is increasingly a management requirement. 
Broader ecosystem interactions – such as changes in fauna and flora on reefs around cages – are progressively being recognised as an issue for many aquaculture regulators and managers. 
As scientists’ understanding of these risks increases, regulators and managers can implement strategies to protect a broader suite of environmental assets and values. 
However, there is no “one size fits all” management approach for this rapidly growing industry, and strategies need to be considered in the local context (ecological, social and economic). Science can provide a better understanding of a particular scenario, but it is up to managers to use this information wisely – and to exercise caution where risks are not well understood. 
<h2>Fast responses</h2>
Management may aspire to be “best practice”, but it is important to recognise that this does not mean that it will be static or finite. Management should respond to changes in the environment (both natural and social) and should adjust as the science and understanding develops.
It is important to acknowledge the different but complementary roles that science and management play in aquaculture planning. Scientists seek to understand the situation (such as the current or future environmental conditions) and share that understanding impartially and objectively. Regulators and managers need to make decisions with a much broader mandate, and as such need to consider factors beyond the science alone. Good planning needs to recognise the value of both.
Aquaculture development and policy needs to be able to trust the science, which in turn, must be delivered in a timely manner, to ensure long-term sustainability of this industry.
Graham Mair is director of Marine Sciences and Professor of Aquaculture, Flinders University and can be contacted <a href="https://theconversation.com/profiles/graham-mair-209191" target="_blank">here</a>.
Alistair Hobday is senior principal research scientist - Oceans and Atmosphere, CSIRO and can be contacted <a href="https://theconversation.com/profiles/alistair-hobday-12414" target="_blank">here</a>.
Catriona Macleod is associate professor, University of Tasmania and can be contacted <a href="https://theconversation.com/profiles/catriona-macleod-104361" target="_blank">here</a>.
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Sustainable aquaculture is possible, with the right science

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GUEST OBSERVER
Melbourne’s Southbank Riverside attracted a disproportionally large share of capital in the third quarter of this year.
Transaction volumes for the three-month period accounted for approximately 50 percent of the AUD 1.4 billion (USD 1.1 billion) transacted year to date.
Southbank Riverside is a small but significant component of the Melbourne CBD office market, accounting for 4.3 percent of total CBD stock (6.8 percent of prime stock).
In Q3 the following assets in Southbank Riverside transacted:
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<li>HWT Tower, 40 City Road (apportioned value AUD 194.2 million)</li>
<li>IBM, 60 City Road (apportioned value AUD 244.9 million)</li>
<li>Twenty8 Freshwater Place (AUD 286.0 million).</li>
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These sales represent 49.2 percent of the total precinct by NLA (Net Lettable Area). Currently JLL is marketing 12 Riverside Quay.  
A sale would mean that just under 60 percent of the total stock would have transacted in 2016.
A changing ownership profile
A number of domestic wholesale funds and large-cap REITs have divested holdings in the precinct. DEXUS, Frasers Property and GPT Wholesale Office Fund were active vendors over the quarter. A number of these groups are identifying opportunities to undertake tactical disposals, crystalise capital gains and recycle profits into new projects/investment opportunities or reduce gearing. An availability of investment grade product has enabled large international fund managers such as ARA Asset Management and J.P. Morgan to gain exposure to the Southbank Riverside precinct over the quarter.
The REIT sector remains active within the precinct. Mirvac is constructing a new Melbourne HQ for PwC and has secured superannuation fund ISPT for a 50% takeout of the completed product.
What is attracting a new cohort of investors? 
Southbank offers CBD access via a pedestrian bridge and connects to Flinders Street Station. Flinders Street Station provides connections to Melbourne’s white collar employees – a disproportionately high number lives to the East and South of the Melbourne CBD. The market fundamentals of Southbank Riverside have been positive, with the precinct recording an average vacancy rate 2.4 percentage-points lower than the greater CBD, over the last ten years. Investors are also drawn to the diverse nature of the tenant profile in Southbank Riverside – IBM, LinkedIn CPA Australia and PwC are all located in the precinct. The strength of the precinct as a corporate location was underlined with PwC committing to a new office at 2 Riverside Quay.
Historically the precinct has benefited from a flight to quality, with tenants vacating older style assets in St Kilda Road for modern product in Southbank Riverside. Given the significant supply anticipated to be withdrawn from St Kilda Road, this trend is likely to continue. A long-flagged rental upswing is finally occurring in Melbourne’s CBD, with prime net effective rents increasing by 5.7 percent over the quarter. The new investors in Southbank are poised to capture the upswing as each of the assets had a WALE of between three and four years.
With the precinct tightly held, and limited potential commercial sites for future development, the investment proposition of Southbank Riverside remains firm. The challenge will be securing investment grade product in a tightly held market.
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Ben Thatcher is research analyst, JLL, and can be contacted <a href="https://www.jllapsites.com/research/" target="_blank">here</a>.
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Where does Melbourne’s Southbank rank for commercial property?

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Joel Robinson

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.

The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.

The challenge for investors is that suitable product is becoming harder to find.

For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.

Today, the development pipeline looks very different.

Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.

The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.

&nbsp;

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.

The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.

[smartcode_project:default project_id=112194 project_image_fid=808]

For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.

One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.

[smartcode_project:default project_id=149098 project_image_fid=330594]

Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.

The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.

Parkdrive Apartments, Chermside

Priced from: $749,000

The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.

The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.

For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.

Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Jonathan Chancellor

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