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2014 is still motoring along very strongly. The lull we reported of the last few weeks seems to have been nothing more than another stair landing in the continuously rising price-staircase which began in October 2012.
This weekend was another Super Saturday, with over 150 auctions in Melbourne’s inner east and Bayside. It was a very solid test, in that bidders were spread out over a large number of auctions – i.e. there was significant choice. The bidder depth held up, in fact it increased marginally with over two bidders per auction on average – this is strong.
If you look at the roughly 200 $1 million plus auctions that took place across all of Melbourne, an average of two bidders means that not only were there 200 buyers, there were also 200 bidders who missed out. Most of those “wounded” bidders are not discretionary buyers – they have to buy and next time they will be more aggressive on price, even if only a tad.
<blockquote>
For a number of our Chinese clients, one of the reasons we are engaged is that they are concerned what other Chinese buyers may do and they don’t want to miss out.
</blockquote>
However, after next week it gets very tight for new stock going into the school holidays and Easter. So the pool of choice will diminish. That means many of those 200 “wounded underbidders” may well be competing against you over Easter but on lower stock levels. That means we’re likely to see 200 underbidders competing not on 200 homes, but on, say, 100 good homes which would double the bidders. If that number is spread out over 50 good homes, that will be four times the bidder strength we saw this weekend.
So what to do as a buyer? Maybe it’s time to wait until the steam goes out of the market?
For those buyers still waiting on the edge for a downturn – good luck. I’m not sure that is a proven good strategy.
But surely it can’t last forever!
Why has our market been so good for so long and will it last?
The Chinese community – simple demand and supply
The reason our market has been so good for so long is very simple – the overseas Chinese community.
Here are the top 10 reported sales on Saturday.
The Top 10 reported on Saturday
<ul>
<li>14 Selwyn Av, ELWOOD – Above $3,600,000</li>
<li>
21 Monash Av, BALWYN – $3,520,000</li>
<li>17 Rolls Ct, GLEN WAVERLEY – $3,416,000</li>
<li>
65 Metung St, BALWYN Above $3,200,000</li>
<li>30 Wills St, KEW Above $3,000,000</li>
<li>4 Mt Ida Av, HAWTHORN EAST  $3,235,500</li>
<li>69 Alfred Cr, FITZROY NORTH  $3,140,000</li>
<li>
2 Barnsbury Rd, BALWYN Above $3,000,000</li>
<li>9 Fairfield Av, CAMBERWELL  $2,888,000</li>
<li>
65 Yarrbat Av, BALWYN $2,850,000</li>
</ul>
40% of those sales were in <a href="/news">Balwyn</a> for new homes or land blocks to build new homes. Where is <a href="/news">Brighton</a>, where is <a href="/news">Toorak</a>? <a href="/news">North Balwyn</a> and Balwyn reported 13 bought from a reported 15 auctions. Brighton had 9 bought from 16 and Toorak and <a href="/news">South Yarra</a> just 7 from 12.
So how long will it last?
This is my potted history of Chinese involvement in Melbourne’s property market.
1973: I went to Camberwell Grammar in the early 1970s (I’m not sure they want me to advertise that fact – it could be bad for new enrolments). Camberwell Grammar is in Balwyn and a number of my classmates at that time were Chinese.
1983: Chinese start buying into Doncaster and Box Hill, which were then more affordable suburbs. I grew up in Doncaster.
1993: After economic reforms start having an impact in China, wealthy overseas Chinese start buying into premium Melbourne suburbs such as Balwyn and <a href="/news">Canterbury</a>. Why? Private schools. Chinese people want to give their children the best education (see 1973) and now a few could also afford to buy a home near the schools of their choice such as Carey, MLC, Scotch and Camberwell Grammar. But it was still difficult under Australian buying laws for overseas people.
2000: With restrictions on what Chinese people could buy and Chinese wealth increasing, off the plan properties became popular for many Chinese buyers. There were very few restrictions on Chinese people buying new properties and Chinese people were used to buying new apartments. High rises went up left, right and centre in Melbourne, many on the back of Chinese money.
2005: Chinese wealth had increased dramatically over the last two decades and as Chinese buyers became wealthier they also became more sophisticated in their knowledge about Melbourne properties and Toorak became a place where land banking became popular. It still is today.
2009: Australian government changes the laws making buying “second-hand” family homes in Australia a lot easier for Chinese people. This one decision really brought the inner Melbourne property market out of the GFC a lot quicker than other countries.
2013: By this time, every one of the bigger buying or selling real estate agencies, ourselves included, has at least one Mandarin-speaking staff member.
2014 : At this weekend’s Super Saturday, 40% of our Top 10 $3m+ sales were in Balwyn, rather than Toorak or Brighton.
So in my 55 year history I have seen this equation of simple demand (increasing Chinese buyers) versus supply (no new land in inner Melbourne) push prices up and up and up. I cannot see anything changing anytime soon. So waiting for the market to turn in 1970, 1980, 1990, 2000 and 2010 hasn’t in my mind proven to be a winning strategy. If you see the right home for you (emotionally, physically and financially) then you should buy it now.
You may be interested to know that for a number of our Chinese clients, one of the reasons we are engaged is that they are concerned what other Chinese buyers may do and they don’t want to miss out.
Auctions in Bayside see around half  the number of people attending as in Boroondara. A good auction in Brighton has 40 people while in Kew it would be 80. The Chinese community is nowhere near as well established in Bayside as it is in Boroondara.
Why not? There are some great private schools in Bayside! St Leonards, Haileybury, Caulfield Grammar.
Its a historical thing. But you can see more and more Chinese people considering say other areas such as Brighton when:
<ul>
<li>Chinese people become more comfortable with Bayside as a place to live, and</li>
<li>Demand in Boroondara and then Stonnington forces some Chinese people to consider other options.</li>
</ul>
Over time the Chinese community demand and supply equation will have the same effect in Bayside as it has had in Boroondara, unless China’s wealth begins to diminish.
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maljames-vHwm28JUAa

Chinese buyers in Melbourne: A simple case of supply and demand

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The flattening number of properties sold under the hammer, which has dropped to one in four from one in three, and the weaker average number of bidders at each auction, which has fallen from the mid twos to the high ones, are signs the market is easing.
But we are not saying that it is going backwards. The market has been taking off for the last 18 months since October 2012, and this may be the first signs of a leveling of the altitude.
Last month we had clearance rates in the 70s – but now it is in the 60s.  It is still moving forward, its just that the angle of the ascent is not as steep in March as it was in early February.
It’s also still possible that the market may simply be in a slight lull before it begins another rise, exactly like the upwards staircase (rise, level, rise, level) we saw last year and towards the end of the previous year.
At the three auctions I bid at on Saturday, there were two bidders (Hampton), four bidders (Brighton East) and four bidders (Malvern East). All three were bought under the hammer having sailed comfortably past their quotes and then their reserves.
Next week is another Super Saturday, with nearly 200 $1 million plus auctions scheduled across Melbourne. So, by 6pm next Saturday we should have a definitive answer on whether we’re seeing a real change in the market direction as we go into Easter.
Negotiation council
But the action is not all auction-based right now. While by the end of last week we had cleared the decks a little and were down to only four ongoing negotiations, a week later we were back up to eleven ongoing negotiations that were being discussed and picked apart at our twice weekly negotiation councils.
A number of clients have asked us what is a negotiation council and what happens at them.
All the better selling agencies have them. They are like match committees or, for the sportingly challenged, like board meetings. We have them twice a week – Tuesdays and Fridays – and we discuss any of our active negotiations, including private sales, expressions of interest, auctions, and off-markets. As I said, we had 11 such discussions on Friday.
The meetings can be formal or informal. Eight to 10 of us sit around a space, and each negotiation is presented and workshopped. We look at what the client wants, the current state of play, the outside forces, the agents involved and their track record and so on, and then we simulate different plays and look at possible outcomes just as a coach would draw up on their chalkboard.
Even though I have bid at more than 1,000 auctions and negotiated hundreds of private sales, EOIs and off-markets, I find these meetings most valuable. Someone almost always has something to improve the plan, and even if they don’t, that fact gives me greater strength going forward that we’re going about things the right way.
A negotiation council is the standard procedure at any good agency, on any deal. This is why you rarely, if ever, get a standard or quick reply to an offer. Over the years the making and receiving of offers has become a very sophisticated process. Every time a milestone is hit by a buyer, e.g. an offer or a significant increase in an offer, it is taken back to their client and also taken back to their negotiation council.
Once the negotiation council has discussed the deal and agreed on a strategy, a smaller negotiation team is given clear parameters of how and when to operate. Deals are done once the result is firstly approved by the client and then secondly if it falls within the agreed negotiation council process parameters. That way a bigger organisation can operate relatively quickly and nimbly to meet the characteristics of a fast moving deal, while still having the benefit of everybody’s input.
Tug of War
I am still surprised when an otherwise very sophisticated businessman tells me proudly that they are launching a full-on assault on what they consider to be a measly agent to secure their dream property. They just don’t know what sort of a self-inflicted ambush they are walking into.
You may be chock-full of adrenaline and overloaded with other types of negotiation experience, but if you are dealing with a successful agency on a good home, you are not in man-to-man combat, you are in a tug of war – and the sides aren’t even.
On one side, pulling furiously in the quicksand, is you.
On the other side, on a relatively firm footing, is a team of two, three or more – in some cases backed up by a number of others feeding them info and plays and scripts and research.
Take a look in the footy coach’s box next time you watch the footy on the telly – that is what you are likely to be up against when you are engaged in an expression of interest, pre-auction offer, boardroom auction, lengthy private sale or off-market.
Good luck!
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Negotiation council: Planning for success

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With the break in traffic due to last week’s long weekend, how did we finish up this weekend after the shaky Second Super Saturday a fortnight ago?
At 6.00pm Saturday the James Clearance Rate for Melbourne’s $1 million plus property was 66% on the 35 auctions we covered; our bidders per auction measurement was at 1.7.
What does all this mean? For us it seems the market at this point in time is probably flattening overall – meaning that prices are leveling after a staircase rise that began in October 2012 and went all through last year and into 2014.
Hold on – what does overall mean?
<blockquote>
If you look at the graphs of 2013 you will see significant overall price increases, but not in a consistently upward straight line.
</blockquote>
It means that while this is a general trend, it’s not the case in every segment. For instance, homes in Boroondara that are drawing strong Chinese interest are still going gangbusters. But the overpriced B-graders and all the C-graders, i.e. the ones needing a big reno and where the price is not quite right, are not showing the same results as they did just a few months ago.
Hold on – what does ‘probably flattening’ mean, and what is a staircase rise?
If you look back over the articles and graphs of 2013 you will see an overall significant advancement in the market i.e. price increases. But this has not occurred in a consistently upward straight line.
What has happened typically is that one month the market seems a bit flat (the landing) and the next month it has another growth spurt (the stair rise), giving the price chart over the year the look of a staircase rise.
This year we started with a stair rise, and then the markets this weekend and the one before the long weekend (1 March) have both been flattish. It’s not terrible, not a shocker – just not as bullish as before (overall) – therefore a stair landing.
Let’s see how the next two weeks go before we start to speculate as to any significant market directional change.
Next weekend has a similar middling number of $1 million plus auctions to this weekend. And then the last week in March is looking like it will be another Super Saturday or very close to it, with around 150 $1 million plus auctions scheduled in the Inner East and Bayside. Some good homes are scheduled too, so we will have a good market to base our opinions on.
Our advice to clients right now is – don’t just assume it’s a runaway auction. Make sure you turn up with 1) a bidding strategy and 2) a pass-in strategy also.
At a pass-in you need to think about how you are going to work through your thoughts if, say, you are the “winner” on the street at $1.8 million but the auctioneer says you still need to give him another, say, $300,000 at the pass-in negotiations to buy it – especially if you were the only bidder.
On the flip side, if you went to many of the auctions this weekend hoping for no interest then you would have left without a home and very disappointed.
In a flattening market you begin to see fracturing results – i.e. a disparate number of bidders and prices paid. Some are hot and some are not, which is what we feel may be the market we are moving into. But a week is a long time in the Melbourne market – so stay tuned.
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Melbourne top end market looks like it's flattening

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In our previous article on expressions of interest (EOIs), we described this form of property sale as being <a href="https://www.google.com/url?q=https://www.propertyobserver.com.au/residential/the-high-stakes-poker-game-of-expressions-of-interest/2014021967905&amp;sa=U&amp;ei=hNsgU5DfGJDqoASAloLQCQ&amp;ved=0CAYQFjAA&amp;client=internal-uds-cse&amp;usg=AFQjCNGhJuGFLvqV_VYBXtRh5uCw1aeSkg" target="_blank">a bit like a game of poker with high stakes and few or no rules</a>.  EOIs can also unfold very differently depending on the agency involved and on the dynamics of the situation making them a challenge for the unprepared buyer.

Here are a couple of examples that show just how differently EOIs can pan out:

22 Rowland Street, Kew

<img alt="" src="/images/stories/2014/03/13/kew-march-13-one.jpg">

22 Rowland Street, <a href="/news">Kew</a> (pictured above) was a quite extraordinary property and we were curious as to what its eventual value would be.

So what happened in the end?

[smartcode_project:default project_id=31282]

Well, by March 1, the agents Kay and Burton had received expressions from four interested parties. Three of these were invited to a Boardroom discussion. This was a little unusual in that the seller’s reserve had not already been met.

The three parties competed at this Boardroom discussion at the mid $4 millions level, until the highest bidder was established. That party was then negotiated with exclusively until an agreement was reached. The final purchase price is confidential but it was in the ballpark of $5 million.

38 Cochrane Street, Brighton

<img alt="" src="/images/stories/2014/03/13/brighton-march-13-one.jpg">

A quite different scenario unfolded with another EOI campaign that we were involved in, for 38 Cochrane Street (pictured above), which came to a conclusion the following day.

This property shared some similarities with Rowland Street – it too was <a href="https://www.james.net.au/rating/38-Cochrane-Street-BRIGHTON" target="_blank">an excellent and unusual home</a> and the vendors had decided to sell it through an EOI campaign with Kay and Burton as the agency.

It too had four bidders. But beyond that, the way things unfolded at Cochrane Street was very, very different.

[smartcode_project:default project_id=25425]

For a start Cochrane Street had a quote, of $3.25 million plus, whereas 22 Rowland did not.

More importantly this EOI campaign did not go the distance. The closing date was March 11, but an offer of $3.5m was put forward two weekends before the closing date.

Another difference is that in this case the buyer offer was acceptable to the vendor. The home was therefore declared by the agents as being “on the market”.

[smartcode_project:default project_id=29974]

It also triggered a faster resolution process than 22 Rowland St Kew. While the Boardroom auction had initially been set down for Monday, after some behind-the-scenes discussions mid way through Sunday afternoon, that was changed to Sunday evening.

At 8.00 pm on Sunday evening, in the home, four interested parties – including us – turned up and all bid until 38 Cochrane was sold “under the hammer” for a confidential amount in the ball park of $4 million.

Implications for buyers

As you can see then, just in these two examples we have two very different methods within the EOI via the boardroom auction resolution concept. These have important ramifications for buyers.

<ul>
<li>One was “on the market” before the bidding started, and one was not. When a home is not “on the market” there can be traps for new players.</li>
</ul>
<ul>
<li>One was concluded well before the EOI closing date and one was concluded two days before. The difference here was the element of surprise from the buyer versus the planned strategies from the seller.</li>
</ul>
<ul>
<li>One was sold publicly in front of all bidders and one was not. Both would have put incredible pressures on people not used to this form of dealing. Try sitting around a table or in the same room with three others who are politely trying to beat you to a pulp and you will start to get the feeling of what a boardroom auction is designed to do.</li>
</ul>
[smartcode_project:default project_id=94079]

And there are other ways of conducting EOIs

<ul>
<li>EOIs can work via inviting best offers, which means you all put in your offers in writing and the highest wins. It doesn’t always quite pan out quite like that, however, which is where it gets tricky.</li>
</ul>
<ul>
<li>You can also have EOI via a private negotiation</li>
</ul>
<ul>
<li>And of course plenty of EOIs don’t actually sell.</li>
</ul>
We have been involved since last year with another EOI Kay and Burton campaign on a totally different property at around the same $5 million price point – and no resolution has taken place yet. As late as last week we were in discussions across the table with both the seller and the “attempting buyers”. This is not a criticism of the process, this is a fact of life. This last meeting took place on a Saturday evening with directors of James Buyer Advocates and Kay and Burton present – so at least both agents and advocates are still trying.

But wait there is more

These are examples of EOIs conducted by Kay and Burton. That’s just one agency. Other agencies we have been involved, such as Fletcher’s, Jellis Craig, RT Edgar, and Hocking Stuart, operate EOIs very differently again. They all have different methods for EOI and the large majority of them are not in writing.

So in summary, expressions of interest are subject to:

<ol>
<li>Big variances within the agency</li>
	<li>Big variations across different agencies</li>
	<li>Changes in the “rules” as you go through the process</li>
</ol>
If you think this process is designed to be transparent and fair to the buyer then you completely misunderstand the concepts behind the process. Not that this is a criticism; after all, the selling agents are not working for you the buyer, they are working for the seller – and whatever works for them is doing the job.

So why would a seller or a buyer get involved in an EOI anyway?

Seller

Often in a sale – auction or otherwise – there is one standout buyer. Conducting an auction campaign with a skilled lone buyer (or buyers’ agent) doesn’t always get the best result for the seller. An auction works best when there are multiple buyers at a certain level. But because an EOI is not transparent – you can’t see any other buyers in action – and there is no real time limit, that can work well for the seller as long as a skilled selling agent is involved.

Buyer

If the home you want is for sale by EOI you have no choice but to be involved. But hopefully you can read between the lines to see some of the strategies of the buyers who eventually won 22 Rowland and 38 Cochrane. Those strategies were very clear and distinct and planned and well-executed, resulting in the desired result.
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Expressions of interest: How the process really works and the implications for buyers and sellers

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Last weekend was the first big auction week back for 2014, a Super Saturday in fact (around 150 $1 million plus auctions in Bayside and the inner east).
Has the mood changed from the good times for buyer (<a href="https://marketnews.com.au/tag/choice/" class="st_tag internal_tag" rel="tag" title="Posts tagged with choice" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">choice</a>) and seller (competition and price) pre-Christmas times to a more challenging market?
Absolutely not – in fact it has gone up a notch for now and especially at the higher end!
What we saw this weekend can be read no other way than "bang!" A very strong start. If the market continues at this level, prices will rise quickly and substantially.
Of course, we do need to wait and see what happens once the traditional first flush of the new year dissipates a little. But it is certainly the case that this time, leading up to Easter, is a good time to be selling a $3 million plus home.
Why?
Well, because after the long Christmas break, after Australia Day has been and gone, a number of buyers and sellers are fired up ready to do something, anything, just to get a home sold or buy a home now. Last weekend’s Super Saturday proved this commonly-known fact within the industry.
So the old girl (the market) has started like a train, house on fire, out of the blocks fast, whatever cliche you want. But let’s see how she settles before we declare that the sky has fallen in, or you’ve hit the jackpot – depending on which side of the transaction you sit.
Let’s see how she settles now that this first wave of activity has satisfied a number of the early birds.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. 
Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
             
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Early birds out in force at the year's first Super Saturday

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In footy parlance, this past weekend was a bit like the pre-season competition.
But things are charging back into the big time this week, with February 22 and the following week March 1 both looking like being Super Saturdays and there are some really interesting homes on offer across Melbourne in that $1.5 million to $3 million plus price range.
On a personal note it was certainly good to be back and out there bidding this weekend. I love being back full-time on the tools, knee deep in the puddles of emotion dotted across Melbourne on a Saturday -  the smell of fear, the looks of anticipation, the cringes of excitement and the hush of <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with uncertainty" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/uncertainty/">uncertainty</a> all rolled into an incredible 15 minute sensory overload. 
If you’ve had your ear to the ground you might have noticed that there is a lot more happening in Melbourne $1 million property than auctions right now.
Expressions of interest
This is a form of buying/selling that is increasingly taking place in the inner Melbourne market.
Expressions of interest might seem straightforward. You put in your price and a deal is done. But you need to understand the unwritten rules – because in a way what they are a game of poker: of bluff and counter bluff, of maneuvering, of patience and of risk – with high stakes, indeed very high stakes for all involved, and few or no rules.
High stakes poker in Kew
Have you seen the home at <a target="_blank" href="https://www.realestate.com.au/property-house-vic-kew-116005755">22 Rowland St, Kew</a> (pictured below), markerted through Scott Patterson and Ross Savas of Kay and Burton?
{yoogallery src=[images/stories/2014/02/20/kew]}
I’m calling it The Biosphere and I mean that as the highest of compliments – go inside and you are totally immersed into the space, light and moods created by the owner and the architect Nick Boschler. 
But this article is not all about the home at 22 Rowland, it is also about the high stakes poker game you will need to play to be the buyer. This is a genuine expression of interest – there is no bulltish quote and no bulltish rules from <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with kay and burton" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/kay-and-burton/">Kay and Burton</a> – it’s put in what you think and then they will talk.
So, what price in the first instance do you offer, what terms and through which agent at Kay and Burton? There were four agents on the job when I visited and it was mid-week.
How do you make that offer – verbal, in writing or on a contract? Do you have a deadline, is it conditional and is your offer negotiable or firm? Pretty straightforward so far, with only about 20 different combinations.
But wait there is more – what happens when they say no, or more to the point what if they don’t say no but they don’t say yes either? What is your next move and the one after that? And what about the questions – the 10 or 20 any good selling agent will ask you under these circumstances? How do you answer them – openly or guardedly or should you just not answer them at all?
Once you put in your actual expression of interest, that is when things will get interesting. Even if you put in your best price, the agent will probably think it wasn’t and even if he or she does believe you, his or her vendor probably won’t. And so the dance starts – backwards and forwards, upwards and downwards – though probably more upwards or sideways than otherwise.
The thing to remember is that expressions of interest are long distance runs not sprints.  So after a week or so – unless you are 'High and Mighty Charlie' with a limitless chequebook – the agent is likely to tell you that you have a new friend, no not him, it's another buyer. And so a new dance begins, only this time it’s more of a group conga than the previous intimate waltz. Well, that’s what you are made or may think.
So back to 22 Rowland – this really is the right type of campaign for the seller, as the buyer is going to be a special one. Of course the seller also knows he or she is involved in the same game and there are some risks for a seller in an EOI process – where the rules can be vague and the way forward a little unclear. Sometimes buyers drop out or just don’t start the engagement process as their fear of uncertainty is greater than their love of the home.
How much is this ethereal creation at 22 Rowland worth? Is it $3 million or is it $9 million?
That is the question. So what is the answer?
We can’t tell you specifically at this stage, but the way we would go about finding that out involves relationships and truths, as well as a number of judgments and non judgements.
We’re not trying to be a smart alecs here. What we are trying to say is the answer to securing 22 Rowland lies in the process more than a specific number.
Off-markets
Another trend taking place is the “off-market”. Off-markets, are where properties are bought and sold without any 'for sale' board, advertising or internet marketing. This week the mysterious off-market widened and continued – especially at the very high end. As a group we have been looking and dealing in homes in Bayside, Port Phillip, <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Stonnington" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/stonnington/">Stonnington</a> and Booroondara that to the casual passerby show nothing to indicate a transaction may be happening.
Note to Sellers: If you have a family home for sale, you know your price and will allow access to our buyers and can get <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with contracts" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/contracts/">contracts</a> if requested, then we can in many cases bring a very real, but private buyer to your door.
We recommend you get a selling agent to represent you, but that is your call whether you do or you don’t.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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The high stakes poker game of expressions of interest

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Last week was the first real hiccup we’ve seen in the top end inner Melbourne auction market this year. With clearance rates in the 60s, and at a very low 1.3 bidders per auction, the market sat up and took notice.
What did this mean?
Was last week the start of a big slump like the Pies had at the end of the season, or was it just an off week like Hawthorn had on the way to another premiership?
In our opinion, last week was the start of something, but of neither of the above. In our opinion it was the start of a more splintered market. Almost half the auctions we covered last week had no bidders and this week again there were a significant number of the top end properties with no bidders. 
Two reasons for this splintering market:
<ol>
<li>
The incredible amount of choice out there at the moment means that unless a home is an A-grader or a well-priced B-grader, it is no longer an automatic sell. This is creating an easing of demand per property. Why? Right now in late spring this easing of demand per property is due mainly to the sheer volume of what’s on offer. This weekend was a big Saturday (100+ auctions) and there’ll be another big Saturday next weekend  (100+ auctions), and then we’re up for a super Saturday (150+ auctions) on November 30.
</li>
<li>
Price – Some vendors are getting ahead of themselves. Nothing wrong with that. Except that in this market they may well be punished by no sale, whereas in early spring that was not happening as often.
</li>
</ol>
Right now, just as a buyer stretching to buy a property has to ask themselves: Am I buying a price or am I buying the property, the market is asking sellers the same sort of question: are you selling a property or are you selling a price? That’s a big difference in strategies!
But, and it’s a very big but: When the property has the right 'three Ps' – price, property and position – how sweet the market is for sellers. That’s the splintering effect.
Let’s look at two sales in Toorak to prove a point.
Both were land sales. We had tentative interest in both at around the quote level, but, as we told our clients, we knew we were never going to be serious contenders. While the homes may have been quoted with an eye on the reserves, they were not quoted with an eye on the expected final result.
So while both went miles over the reserve, they didn’t go miles above the professional estimated buying range.
<a href="https://www.kayburton.com.au/property/11-tashinny-road-toorak" target="_blank">11 Tashinny Road, Toorak</a> (pictured below) – This was 511 square metres of north-facing rear land with two period apartments that needed serious renovation.  The quote was around $1.7 million, but the agents (Scott Patterson and Michael Armstrong) expected more and said so. We put the range at $2.1 million to $2.5 million, expecting it to go in the low $2 million region. It was declared ‘on the market’ fairly at $1.85 million, and with six bidders it pushed through to $2,395,000. This price put land at $4,700 per square metre, strong for that little pocket but normal for other land nearby, such as the nearby Dunraven precinct.
{yoogallery src=[images/stories/2013/11/21/too1]}
 
<a href="https://www.williamsbatters.com.au/?pageCall=property&amp;propertyID=2494642&amp;realestate=6_Verdant_Avenue_TOORAK_VIC_3142&amp;propertyStatus=SoldRented" target="_blank">6 Verdant Avenue, Toorak</a> (Philippe Batters) – On 836 square metres, this was one of the best mid-sized Toorak blocks offered in a long time (pictured below). The $3 million plus quote was courageous – with two street frontages and wide and Verdant Avenue. We thought it might go for perhaps around $4 million, or maybe more, so the final result of $4,445,000 after four bidders had fought it out was not a complete shock but it was still very strong. This says great land down near the Royal South Yarra Tennis courts is worth $5,300 per square metre.
{yoogallery src=[images/stories/2013/11/21/too2]}
In two places not that far apart you had 10 bidders (plus those that didn’t speak up) putting the price of land – no house – at circa $5,000 square metre. So, yes, there is still a very strong market for properties with the right 'Ps'.
All the 'Ps' above were good – position, property and price. The smart agents got these A-graders on the market quickly and then let nature take its course. It’s a very different story from a number of pass-ins where the agents and sellers wanted a price that the market did not support.
This is what is happening out there since Melbourne Cup – buyers are more discerning and if it’s not right they are moving on. This is a change from a month ago.
That is the splintering effect we are talking about.
Now is this smart for buyers? Let’s wait and see. Our thoughts as buyer agents is that if you as a buyer see the right one, you should consider going for it (within reason).  Because there is no guarantee  that we’ll still see this amount of choice next year – even if many of today’s underbidders are assuming that will be the case.
 
<hr>
 Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

Melbourne top end market splintering under weight of stock

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Yes , the market is exploding. <a href="https://marketnews.com.au/tag/demand/" class="st_tag internal_tag" rel="tag" title="Posts tagged with Demand" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">Demand</a> at the moment is huge. Around 250 $1 million plus auctions a couple of weeks ago, that suggests there are around 580 would-be buyers out there hoping to snap up a property before <a href="https://marketnews.com.au/tag/christmas/" class="st_tag internal_tag" rel="tag" title="Posts tagged with Christmas" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">Christmas</a>. These are the ingredients for a very strong property market ahead of us till Christmas.
Does that sound scary? Do you feel like you’re about to miss out?
Well, if you’re a player with a positive the right mental attitude, these market explosions can be happy ones, as long as you regard them with a glass half-full attitude. Why? Because this is a transacting market – one where you can actually buy and sell better than in a down market. There are lots of good properties out there – unlike last year where they were as rare as hens teeth. You just need to be able to identify the one that’s right for you, and know the strategies to be able to buy it.
Remember, even in this market when everything looks expensive– not all homes are the same. Just as in the 2007 market, there is “good expensive” and “bad expensive”. Those that buy the right home now well will be in a far better situation in 2020, than those who snap up just anything hoping to get into the market no matter what.
To those who boast that they bought a home at $200,000 lower than the private sale price all by themselves – with no valuer, no professional advice, no buyer advocate and minimal research – congratulations on buying a home at a price that nobody else wanted in an exploding market.
Buying the right house is not about getting a bargain, it’s about finding a house that is going to suit your family’s needs over the long time. Those who bought well during the last exploding market in 2007 are in a good situation today, confident they could sell their property well if they needed to, but probably not needing to because the house is fulfilling their needs long-term.
So how do you make sure you are the winning bidder on the right house when there are so many others out there chasing the same properties? As we keep pointing out, auction bidding success is not always about who has the most money or the most luck – it is about experience and strategies.
From our recent experience of buying 14 out of the last 18 homes we bid for, and not because our clients miraculously always had the most money, here are our best tips:
Do build relationships
Do get professional advice
Do eat the right foods in the morning and just prior to pass-in late afternoon negotiations
Do understand number psychology
Do recognise that it is possible to buy if your mind is right
The only two don’ts I have for you are:
Don’t buy a home you don’t want (emotionally – life is too short), and
Don’t buy a home that nobody else wants at the price without being fully informed (financially – life is also too short)

<hr>
Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
 
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The dos and don'ts of preparing to bid at an auction

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Well, the market seems to now be in agreement. We are officially, whatever that means, in a sustained upward phase or “boom”.
By our reckoning Inner Melbourne at the top end has been in a “boom” since October of last year (2012).
As the realisation of this hits buyers, the questions we are getting have changed from: “How’s the market going, Mal?” to: “When is it all going to end, Mal?
Our answer is: “Who knows?”, and also: “We think you’re actually asking the wrong question.”
Well, you’re asking the wrong question if you want an informed answer. Because, if we ‘experts’ had little absolute idea as to when the market started, it’s unlikely we should know when it will end.
In any case, is it that relevant anyway? For all we know, the ferocious rise of this current market phase may have already eased. On the other hand it could run, as per 2009, for 18 months, or for another six to 12 months as in 2007, or another 13 years as it did from 1994.
We leave prognostications of the future to the economists, as well as to the media commentators who manage to expound at length on the market on evidence about as skimpy as that used by pre-game footy commentators.
The really useful and good buying question, in our opinion, is not a general market-based one – it’s a specific property-based one: Is this home you are currently looking at a good buy?
More specifically, is it a good financial buy?
Let’s test some theories on the recent ups and downs of the market. In the previous boom markets, who made the good decisions?
Did those who bought homes in 2002 or 2005 or 2009 make good or bad buying decisions?
Did those who bought on the precipice of the falls in 2007 and 2010 make good or bad buying decisions?
The financial wisdom of proceeding rarely relates to overall timing. It relates more to the individual circumstances.
You can still buy very well in rising markets if you have the right fundamentals – the right land content, the right location and the right floorplan.
These are things you can control – unlike the ups and downs of the market. And these are what determine the wisdom of your decisions. We are happy to provide a solid list of buys we purchased in 2007 that had solid property fundamentals, and that were sold over the next five years with a significantly increased price.
The fact is, we have no idea when or indeed if the current “boom” will end.
Our predictions always relate to a longer term picture, as it is impossible to get the short term right anyway. The longer term picture says that the population increase from China, then India and then Indonesia, is fuelling demand for our schooling, space, minimal corruption, safety of money and person, stable politics, pollution and our relaxed lifestyle.
In terms of supply – well they ain’t making any more land! The auctioneers are right on that one.
And in terms of price – are we as a community going to build to increase or decrease our overall wealth and wealth generation possibilities?
So in this current boom, forget about when it’s going to end, and think instead about whether you are asking the right question with regards to making good decisions and buying well for the long term.
 
<hr>
 Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million.
Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Is the market too expensive? Maybe you aren't asking the right questions: Mal James

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When you buy an apartment or townhouse you also become a member of an owners’ corporation, (which used to be called the body corporate), and its best as a buyer you know a few things about it. The normal matters to look at are the rules, fees, operations and such. But one of the most critical things to find out before you buy is whether or not it’s a “happy” OC.

The OC is there to make life easier for residents in the <a href="https://marketnews.com.au/tag/development/" class="st_tag internal_tag" rel="tag" title="Posts tagged with development" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">development</a> and most of them work well. They have a meeting every few months and sort out matters such as insurance, accounts, painting, necessary repairs or other matters in a smooth and easy manner. But occasionally there are some that don’t – and you should make sure that you don’t find yourself becoming a member of an OC from hell.
Sometimes it can be so bad that people decide to sell their recently purchased apartment purely because they find out they’ve joined an OC which doesn’t work.
<ul>
<li>
It may be dominated by a small group of people who feel they own it;
</li>
<li>
It may have an ineffective manager;
</li>
<li>
The members may not be willing to spend any money;
</li>
<li>
Or they simply can’t agree on anything.
</li>
</ul>
Solutions:
You can easily discover how an OC works by getting copies of the last few OC minutes and reading them carefully.
Look to see if there is a person or group who resists everything and makes it impossible for the OC to operate.
Things such as ongoing disputes, drawn-out legal actions, refusal to approve requests from owners and money arguments over minor things are all matters for some concern and may cause you problems in future.
The badly-operating OC may cause you stress, it may cost you money or it may prevent you renovating or having a new pet – so check it out carefully.
As well as reading through the minutes, it may be worth having a chat with another resident or the OC manager to see how it works. Think carefully if you feel you may be getting into a situation you’re uncomfortable with. Your purchase of a new apartment is meant to be a positive lifestyle <a href="https://marketnews.com.au/tag/choice/" class="st_tag internal_tag" rel="tag" title="Posts tagged with choice" style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;">choice</a> so make sure that it works for you.
 
<hr>
 Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.  
 
 
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Make sure your your owners' corporation is a happy one: Mal James and John Hazen

A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<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."

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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.

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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.

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Mal James

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