Australia&rsquo;s biggest bank, CBA, has increased its 2- and 4- year fixed home loan rates by 0.05 per cent for owner-occupiers paying principal and interest. 
&nbsp; 
It is the third time CBA has hiked its 4-year fixed rate this year, but the first time the bank has hiked its 2-year rate for owner-occupiers.

&ldquo;CBA is factoring in a rise in the cost of funding over the next couple of years, particularly now the RBA&rsquo;s term funding facility has closed.&rdquo; 
&nbsp; 
A recent economic insights report from CBA shows around half of its new owner-occupier loans settled in June were fixed, with the two-year rate the most popular. 
&nbsp; 
&ldquo;Despite today&rsquo;s hikes, CBA still has one rate under 2 per cent &ndash; the bank is not going to let go of that easily,&rdquo; said RateCity.com.au research director, Sally Tindall. 
&nbsp; 
&ldquo;CBA&rsquo;s two-year rate was extremely competitive and attracting significant interest. By keeping it just under 2 per cent, the bank is trying to keep momentum going at a more sustainable price,&quot; she said. 
&nbsp; 
Analysis of the RateCity.com.au database shows over the last two months, there have been more hikes than cuts in every fixed rate category with the exception of 1-year rates. 
&nbsp; 
But ME Bank has cut rates across a few home loans from early August, while boosting its refinance cashback offer to $3,000.

The cuts were across its two-year fixed and variable home loan range.

The two-year fixed rate Member Package home loan was cut by 20 basis points to 1.89% p.a. (3.17% p.a. comparison rate*) - a &quot;record low&quot; for the lender.

This particular comparison rate applies to owner occupier borrowers with 80% LVR i.e. a 20% deposit, paying principal &amp; interest.&nbsp;

The same advertised rate applies to other LVRs in the product line, but different comparison rates apply.

A number of other home loans - both fixed and variable - with different LVRs were also cut by between 5 and 31 basis points.

While the majority of changes to fixed rates in the last two months have been hikes, RateCity advise the opposite is happening in the variable rate market.&nbsp; 
&nbsp; 
RateCity.com.au home loan database analysis shows 49 lenders have cut at least one variable rate in the past two months while 10 lenders have hiked variable rates in that time.

The vast majority of variable rate cuts are reserved for new customers, not existing ones, RateCity research director, Sally Tindall, said.

&ldquo;Variable rates are at record lows, however, most of these deals are reserved for new customers, not existing ones, unless you specifically ask,&rdquo; she said. 
&nbsp; 
&ldquo;Before you call, check what rate your bank is giving new customers for the same home loan, but also find out what other lenders have on offer.

&ldquo;If you are paying significantly more than a new customer, pick up the phone and ask your bank &lsquo;why?&rsquo;.

[smartcode_project:default project_id=7363 project_image_fid=41840] 
&nbsp; 
&ldquo;If you have a good track record of paying down your debt, and the bank thinks you might switch to a more competitive lender, they&rsquo;re likely to play ball. 
&nbsp; 
&ldquo;A lot of people think a handful of basis points won&rsquo;t make much of a difference, but if the discount is permanent, then the savings can potentially run into the thousands in just a few years,&rdquo; she said.

ME has also increased its cashback offer to $3,000 for externally-refinanced home loans.

The new lending amount must be minimum of $250,000.

Eligible refinancers must apply by Friday 27 August inclusive, and settle by Friday 29 October.

ME Bank CEO Adam Crane said the cuts would assist borrowers &quot;looking to maximise their borrowing in a challenging property market.&quot;

In February, ME Bank merged with Bank of Queensland with the deal expected to be finalised this month.

But ME Bank cut rates across a few home loans, while boosting its refinance cashback offer to $3,000

jchancellor-FAypfDUnLy

Home loan mortgage rate rises continue

Rent stress has substantially increased over the six months to June 2021, according to ME Bank.&nbsp;

77 per cent of Queensland renters and 72 per cent in NSW are now experiencing stress, the poll of 1500 households by the bank found.

On average renters are spending 41% of their income on rent, which has increased 8% over the past six months to June 2021.

Currently, over two-thirds (68%) of renters reported rent stress &ndash; as typically considered to be rental payments of more than 30% of household disposable income.&nbsp;

The current level of rent stress is even higher (3% higher) than that measured in December 2019, before the COVID-19 pandemic.

Rent stress is typically considered to be rental payments of more than 30% of household disposable income.

[smartcode_project:default project_id=100322 project_image_fid=163029] 
&nbsp; 
Single parents, couples with young children, retirees, and households on low incomes are most subject to rent stress, with women (75%) reporting notably higher rent stress than men (60%).

ME&rsquo;s consulting economist, Jeff Oughton said a combination of factors were contributing to the rise in rent stress.&nbsp;

&ldquo;Rental markets have tightened markedly across the majority of Australia and rents have risen significantly due to falling vacancies,&rdquo; he said.&nbsp;

&ldquo;Renters are now facing some of the biggest rent hikes we&rsquo;ve since the global financial crisis.&rdquo;

As at June 2021 the median rent of houses and units&nbsp;had jumped to $476 per week,&nbsp;a 6.6 per cent increase compared to the same time last year, according to the latest CoreLogic data.

&ldquo;While wage gains, on average, have picked up slightly from the historical lows recorded at the onset of the pandemic, government income support has gradually unwound, and rental moratoriums have ended,&rdquo; added Oughton.

&ldquo;We may see more renters facing hardship as lockdowns continue, particularly among low-income, low-saving households reliant on government support.&rdquo;

Compared to rent stress, mortgage stress is lower, with 42% of mortgagees reportedly paying more than 30% of their household disposable incomes on mortgage repayments.

A recent CoreLogic analysis suggests servicing a mortgage is now cheaper than paying rent on 36.3% of Australian properties, which is higher than the&nbsp;pre-COVID&nbsp;proportion of 33.9%&nbsp;reported in February last year.&nbsp;

The current level of rent stress is 3% higher than that measured in December 2019, before the COVID-19 pandemic

Rent stress on the rise

Bill McWilliams, the chief investment officer at MaxCap Group, reckons the recent macroprudential intervention from APRA was unlikely to have a material impact on house prices or credit growth.

&quot;We do not expect there to be any constraint in buyer demand for either apartments or house and land packages as a result of the intervention, with appetite to continue to be driven by supply and demand fundamentals,&quot; McWilliams said.&nbsp;

MaxCap is a leading real estate finance and investment manager.

&quot;We do however expect APRA will continue to monitor LVR&rsquo;s and Debt to Income Ratio&rsquo;s for new lending closely, and depending on trends, this could lead to a series of progressive interventions, as happened in 2014 and 2017.&quot;

The recent macroprudential intervention from APRA requires lenders to include an additional 0.5% servicing buffer.

McWilliams said this was &quot;was consistent with our expectations given the recent growth in housing credit at moderately higher debt to income ratios.

&quot;We consider this to be a subtle change only which has been implemented to improve the resilience of borrowers in periods of economic shock by creating a larger servicing buffer.&nbsp;

&quot;Our view is that such a slight change to affordability is unlikely to have a material impact to house prices or credit growth, as less than 10% of home loan applications borrow at capacity.

&quot;APRA itself said &ldquo;the overall impact on aggregate housing credit growth flowing from this is expected to be fairly modest&rdquo;.

Founded in 2007, MaxCap have originated and managed more than $12.3bn of Australian CRE debt across more than 450 loans, with current funds under management and advice of $4.1bn.

Earlier this month McWilliams joined the team at Landream and V-Leader to break ground on the project The International in Brighton, which is being funded by MaxCap.

[smartcode_project:default project_id=26389 project_image_fid=71849]

MaxCap has provided a first mortgage construction facility to S&amp;S Projects for their 11-storey luxury boutique apartment project, Awaken on the Gold Coast.

MaxCap has funded Salvo&rsquo;s mixed-use residential project in Melbourne&rsquo;s Southbank, with the non-bank lender providing a $75 million first-mortgage for the development of Stature, a 35-level mixed-use tower with 175 apartments, commercial office space and ground floor retail space at 35-51 Hanco​ ck Street.

MaxCap Group recently delivered a first mortgage construction facility to Lu​ xcon for the development of its East Melbourne apartment complex.

A $76m debt facility covers land and construction funding for The Address.

Marketing commenced for in late February 2021 with the Sydney-based developer Lu​ xcon securing strong off the pl​ an sales in its first project in Melbourne.

The $125-million, 23 apartment development overlooks Fitzroy Gardens saw five local buyers seek out the apartments prior to their recent official launch.

The 10-storey park-side development at 372-380 Albert Street in East Melbourne features two-, three- and four-bedroom apartments.

The two-bedroom apartments are priced from $2.5 million to $3.15 million and three-bedroom apartments, from $4.5 million to $5.35 million.

The three-bedroom, plus study, sub penthouses are price at $8 million to $8.75 million.

The penthouse is priced at $25 million with its own lap pool.

All of the apartments will have outdoor areas in the Woods Bagot-designed complex.

The first five sales were secured by April with about 95 per cent of inquiry being downsizes from larger homes across Melbourne.

The apartment project will replace a nine-level office building acquired for $30 million in May last year from entrepreneur Nathan Cher, the co-founder of the Run Property Group.

&ldquo;Industry research suggests that East Melbourne is short of apartment sites for developments,&quot; said MaxCap&rsquo;s chief investment officer, Bill McWilliams.&nbsp;

&ldquo;There is significant demand in the East Melbourne area with purchasers looking for quality mid to high rise towers,&rdquo; Mr McWilliams said.&nbsp;

&ldquo;Demand is reportedly strong in the $2m - $5m range and we have seen sales at the level of $30,000 per square metre and above in several recent transactions.

Luxcon&#39;s managing director Ilya Melnikoff recently acquired its second trophy apartment sites in inner Melbourne.

It purchased the Beacon Cove Food Store site in Port Melbourne for $16.65 million. The 1400 sqm site at 103 Beach Street, across the road from Station Pier, was acquired from Melbourne developer V-Leader, which paid $11.2 million for it in 2017.

The East Melbourne project is expected to be complete by December 2022.

Lexicon&#39;s completed Sydney projects include The Aristocrat of Rose Bay at 62A Dover Road, Rose Bay; Jardine at 35 Oxford Street, Epping, and 88 Kensington at 88 Anzac Parade, Kensington.

Bill McWilliams, MaxCap’s CIO, expects APRA will continue to monitor LVR’s and Debt to Income Ratio’s for new lending closely in 2022

MaxCap expect appetite for apartment projects to get through APRA tightening

Billbergia has lodged plans for four apartment towers up to 23 storeys on a 1.3ha Arncliffe site.

The $253 million plans are for 744 apartments, including 180 social housing apartments which will be owned by community housing provider Evolve Housing.

The project includes a 4000sq m public park, shops, shared community facilities and a childcare centre.

It will update the 1940s housing estate owned by the NSW Land and Housing Corporation. 

The island site, bounded by Eden Street, Forest Road and Princess Highway, currently has 14 low-rise social housing buildings.

The estate has been long earmarked for redevelopment with only a 12 or so tenants in residence this time last year.

The 60,000sq m development will comprise four towers, one of 21 storeys, two at 20 storeys and one of 17 storeys.

The site is close to Deicorp’s recently completed, 10-storey, four-building apartment complex at 118 Princes Highway.

 Ralan Group had a project at 213 Princes Highway, building a 318-apartment project until its 2019 collapse.

The Civil Aviation Safety Authority will need to give approval given the proposed high-rise towers would infringe Sydney Airport’s airspace heights limits.

Billbergia has plans for an Arncliffe site near Sydney Airport

Billbergia seek four Arncliffe towers up to 23 storeys

The Australian Tax Office (ATO) reduces some 70 per cent of property investors’ tax returns that it put through review.

The ATO advisory came as it warned property investors that it will be scrutinising all tax claims closely.

More than 1.8 million Australians owning rental properties claimed $38 billion in deductions in the 2019-20 financial year.

ATO assistant commissioner Tim Loh advised there would be extended surveillance for the 2020-21 year.

The ATO’s data matching and “nearest neighbour” technology examines investors’ tax claims.

“Every return is scanned,” Mr Loh said.

Loh said the most common mistake investors make is failing to declare all their income, including capital gains from selling the investment property or holiday home.

“We are expanding the rental income data we receive directly from third-party sources such as sharing economy platforms, rental bond authorities, and property managers," he said.

He told the Herald Sun “on average the correction was about $4500 for each return”.

“Some people are making genuine mistakes but there’s also people who are deliberately doing the wrong thing,” he said.

Property investors can examine the ATO’s online investor’s toolkit and depreciation and capital allowances tool.



The Australian Tax Office (ATO) has advised property investors that it will be scrutinising their tax claims closely.



Property investor tax claims face close ATO scrutiny 

Australia&rsquo;s capital cities experienced a net loss in population through internal migration in the first three months of 2021, the most significant amount in 20 years.

&ldquo;This was the largest net loss on record since the series started in 2001, surpassing the previous record net loss set in the September 2020 quarter (11,200),&rdquo; the ABS report advised.

The data highlights how the pandemic has changed Australian migration patterns.

Brisbane saw the biggest net gain of people, either from elsewhere in Queensland or interstate during the March quarter.

NSW was the leaving point for most of those moving to Queensland.

Sydney had net losses of 5100 to NSW &shy;regions and some 3100 interstate.

Most of Melbourne&rsquo;s departures were to regional Victoria.

Brisbane gained 14,488 residents over the year and 16,322 since the pandemic started.

[smartcode_project:default project_id=102309 project_image_fid=163977]

Melbourne lost 32,203 residents from internal migration over the 12 months and 34,366 since pandemic started.&nbsp;

Sydney lost 31,646 over the year and 39,733 from start of pandemic.&nbsp;

The data came as Queensland&#39;s Deputy Premier Steven Miles advised that almost 50,000 residential lots were in the process of being unlocked in south-east Queensland.

&ldquo;Our strong health response to the COVID-19 pandemic has created a spike in interstate migration which has put pressure on land supply across the state,&rdquo; he told the budget hearing.

&ldquo;While COVID has certainly spurred an increase in interstate migration, we would expect to see further increases over the coming years in the lead-up to the 2032 Olympic and Paralympic Games.&rdquo;

The state government policy is that all local government areas should have four years&rsquo; worth of approved lots, ie land that is ready to go to market.

But Brisbane has just 2.9 years of approved lot supply, Noosa has 1.1 years, the Gold and Sunshine coasts 1.9 years each, Redland 2.9 years, and Moreton Bay 3.2 years.

Brisbane has gained 14,488 residents over the year and 16,322 since pandemic started

Brisbane gets migration fillip during pandemic

The value of owner-occupier first home buyer loans dropped by $532 million, according to latest data from the ABS.

There were $32.05 billion of new home loan commitments in June, down 1.6 per cent month-on-month, the biggest monthly drop since May 2020, according to seasonally adjusted data from the ABS.

But the value of owner-occupier first home buyer loans was down 7.8 per cent month-on-month in seasonally adjusted terms.
 
The value of investor loans rose 0.7 per cent month-on-month to $9.19 billion in June, the highest level in more than 6 years.
 
RateCity.com.au research director, Sally Tindall suggested the growth in home lending "might finally be losing some steam."

And Ms Tindall advised the impact of the latest wave of lockdowns would not be seen until the release of the August ABS data, as new home loans typically take six weeks to settle.
 
“It will be at least a couple of months before we see what impact the latest lockdowns have on the home lending market, however, there’s likely to be more twists and turns ahead.
 
“Would-be buyers who have taken a pay cut during this lockdown could be forced to put their plans on ice for now, while those who’ve kept their jobs and are saving more money working from home, might now be willing to pay top dollar to get into a bigger property,” she said.
 


The value of owner-occupier first home buyer loans dropped by $532 million, or 7.8 per cent month-on-month in seasonally adjusted terms

First home buyer baton change to property investors continues 

The Melbourne apartment developer Pace has seen a spike in sales and inquiries from first home buyers who are finding the established housing market too pricey.

Pace sales and marketing director Ashley Bramich said the developer had been averaging 19 sales a month at its 263-unit Pace of Blackburn project.

It compared with 13 sales before the pandemic at the 160 Whitehorse Road, Blackburn complex designed by Ascui &amp; Co Architects.

[smartcode_project:default project_id=7211 project_image_fid=158008]

The current prices start at $395,000 for one bedroom apartment, from $515,000 for two bedrooms and $805,000 for three bedroom apartments.

Its social media marketing references the impact of the pandemic.

"Overseas travel may be off the cards, but resort-style living? It’s yours for the taking with Pace of Blackburn set to feature a lavish outdoor pool deck complete with a children’s splash pool. Your daily errands will also be taken care of with a dedicated concierge, meaning you can relax and lap up the lifestyle," the social media posting said.

[smartcode_project:default project_id=7211 project_image_fid=39984]

Pace was also seeing 13 sales a month at its Sunshine North townhouse development, up from eight before the pandemic. During the long Melbourne lockdown, Pace was seeing its 360-degree video tours of its Sunshine North townhouses being viewed more than 100 times a week.&nbsp;

"At Sunshine we are building townhouses as quickly as we sell them," Pace founder Shane Wilkinson told The Australian Financial Review this week.

"Demand at the $600,000 to $800,000 price point is very strong. This is partly due to low rates, but also because the established market has become unaffordable." he said.

Pace, which Wilkinson founded in 1992, &nbsp;was now looking to acquire $100 million of new apartment sites.

Its latest acquisition was $11.25 million for a 2653 square metre parcel at 251 Lygon Street, in Brunswick East, where it hopes to develop about 80 apartments.

It creates a 500-unit pipeline across Coburg, Fitzroy and Brunswick East.&nbsp;

Its projects also include the Flemington site bought from the Victoria Racing Club at 550 Epsom Road, near Racecourse Road, in 2018.

Wilkinson said the developer had adopted an aggressive acquisition strategy after settling $120 million of sales in the past 12 months including its Pace of Ascot Vale apartment project along with several stages at its Sunshine townhouse project.

"Not all first home buyers are purchasing house and land [in the outer suburbs]. Many are buying [apartments] off-the-plan," Mr Bramich added.

[smartcode_project_cta: project_id=7211]

Melbourne developer Pace has been averaging 19 sales a month at its 263-unit Pace of Blackburn project

As established property prices soar, Pace see uptick in Melbourne townhouse and off the plan apartment sales 

The site once mooted for a 103-floor Surfers Paradise apartment tower has been listed for sale.

It has been offered through First National Surfers Paradise.

The tower would have been the tallest in the southern hemisphere at 328 metres with 1127 apartments.

The twin-tower venture called Orion Towers was approved five years ago for the Chinese-owned Orion International Group.

Tower One (76 storeys) and Tower Two (103 storeys) was also set to include Australia's highest destination restaurant: Restaurant 101.

Orion’s $1.2 billion plans were set to overtake the Q1 as the tallest in the southern hemisphere.

There was a 680sq m penthouse planned for level 100.

The project was planned to come to market in 2018 with the towers anticipated to be built in stages over a 10 year plus timeframe.

CRA Group undertook a national design competition to select the successful project architect, Woods Bagot.

The 5278 sqm site fronts the Gold Coast Hwy and Markwell Ave, known as the Thrifty property.

It last traded at $25 million in 2016, with one of the purchases being $15.4 million for the Red Lion Motel site.

Orion filed an application with the Gold Coaost council for a four-year extension on the project, so it has until 2025 to start construction.


The 103-floor Surfers Paradise project was to provide 1127 apartments

Tallest Surfers Paradise proposed highrise tower site listed

Cbus Property have reported the sale of three luxury apartments worth $66 million in the 111 Castlereagh St development.

The buyers came from the eastern suburbs and lower north shore.

The biggest sale was a 460sq m double-storey penthouse that fetched about $35 million.

It is called the Jones Residence,&nbsp;named after Sir Charles Lloyd Jones who led the success of the David Jones expansion on which the property sits.

The residence boasts 360‑degree views across the city and towards the Blue Mountains, capturing Hyde Park, Sydney Harbour, the Eastern Suburbs and beyond.

[smartcode_project:default project_id=94354 project_image_fid=170432]

The two smaller sub penthouses in the 101-unit project sold for about $15.5 million each.

The sales marked "a resurgence in the return of Sydney city living and the ongoing appetite for high-end, primely located residential property, despite the challenges of the current COVID-19 climate,” Cbus Property CEO Adrian Pozzo said.

Selling agent Colliers Residential managing director Peter Chittenden said the four-bedroom penthouse occupies part of level 33 and the entire 34th level and includes two kitchens, living areas, a wine cellar and a butler’s pantry.

Cbus has two four-bedroom sky homes and a selection of expansive one, two and three-bedroom residences still for sale in the project set to be finished by the end of 2023.

[smartcode_project_cta: project_id=94354]

Three luxury apartments have been sold off-the-plan in the 111 Castlereagh St development

$35 million penthouse sale secured in 111 Castlereagh by Cbus

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

Joel Robinson

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

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

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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.

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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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Jonathan Chancellor

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