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Funky, cool and unique are perfect adjectives to describe 2 White Street, Windsor.
The property will go to auction this weekend and is featured in this week's Property Tycoon auction tipping competition.
It's the website, <a target="_blank" rel="nofollow" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
Listing agents for the property (pictured below) have been run off their feet with inspections, so the $850,000-plus quote may be a bit light.
<img alt="propertytycoonmay10one" height="342" width="470" src="/images/stories/2013/05/propertytycoonmay10one.jpg">


A prestigious property (pictured below) set in park-like gardens at 8 Treatts Road, Lindfield is sure to get bidders up and about on Saturday.
The deceased estate set on almost 2500 square meters is set to sell in excess of $2 million.
<img alt="propertytycoonmay10two" height="345" width="470" src="/images/stories/2013/05/propertytycoonmay10two.jpg">
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marmstrong-sd3emVLPPb

Windsor and Lindfield feature in this week's Property Tycoon auction tipping

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You’re sitting around a table with friends one night, downing a couple of glasses of red.
The conversation turns to property investment, and how hard it is to get into the market. Emboldened by the wine, someone suggests beating the affordability barrier by pooling your resources and buying a property together.
In principle, it’s a great idea. By clubbing together, you’ll be able to afford a better quality investment property than you could as individuals.
What’s more, your individual share of the mortgage is likely to be smaller than if you’d purchased on your own, which gives you more room to breathe financially.
Buying with friends can work well — provided that everyone has clear and consistent expectations before entering into the arrangement.
It’s wise to draft a written agreement covering the key aspects and likely eventualities of the arrangement. You can do this yourselves, however it can be a complex undertaking so it may be best to see a solicitor with a specialist knowledge of contracts.
One of the most important considerations the agreement should cover is how long you intend to hold the property. Is this a short-term proposition, e.g. three to five years, or a long-term commitment?
Ideally, you should hold residential investment property for at least seven to 10 years to ride out market fluctuations and make the most of compound capital growth. However, even with the best of intentions, unforeseen changes in the lives of the owners means there may come a time when it’s no longer appropriate or viable for one of them to continue the arrangement.
For this reason, the written agreement should address a range of possible life changes. For example, what will happen when one owner wants to sell their share of the property and free up funds to buy a home of their own to live in, start a family, or return to full-time study?
What if one owner wants to buy the others out? How will the price be determined? What will happen if one owner loses their job, can’t work due to illness or injury, or dies?
The agreement should cover the dollar amount each person will commit to the investment, and the ownership split in percentage terms. It’s also worth including a reference to the terms of the contract you and your friends have with the lender. If you are borrowing money for the purchase, the lender will consider each of you ‘jointly and severally liable’ for the debt.  
In other words, if one of you is unable to meet your repayments, the lender can hold the other borrowers liable for your share of the debt, and can take action to recover it from them.  
To minimise this risk, each borrower should take out the relevant insurances such as life insurance and income protection insurance which will help cover their financial commitments in the event of illness, injury or death.
Your agreement should also detail nuts-and-bolts issues such as who will have responsibility for day-to-day management of the property.  
Who will deal with the lender or broker, liaise with the property manager and (if relevant) body corporate? Who will ensure that council rates bills, insurance premiums and maintenance fees are paid on time and in full?
If you have to make an insurance claim and you find out your policy has lapsed, no-one wants to hear the fateful words: “I thought you were handling that.”  
The written agreement should also detail the procedure to be followed if there is a dispute amongst the owners. Whilst this may sound a little rigid or over-the-top (after all, you wouldn’t be buying with them if you didn’t think you could resolve problems) it’s important to look at the agreement in the cold light of day.
Remember: you are entering a business deal, not a social arrangement. The shared values and common interests that bind you together as friends won’t necessarily translate to a business environment.
When you buy with friends, you may benefit initially by spending less than you would on your own, but you also carry a greater risk of the venture failing due to conflicting expectations about managing change.
There’s little point risking a friendship over money—so for everyone’s sake, agree on the terms of the deal, put it in writing and then get on with business. This way, you’ll not only stand to gain financially, but maintain your friendship as well.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Buying property with friends can work but proceed with caution: Mark Armstrong

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There has been plenty of interest for 16 Pisces Court, Donvale, with close to 100 groups of potential buyers taking a look and many returning for a second peek. 
The property will <a href="https://www.realestate.com.au/property-house-vic-donvale-113508983" target="_blank">go to auction</a> this weekend and is featured in this week's Property Tycoon auction tipping competition.
It's the website, <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/" rel="nofollow" target="_blank">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
The amount of interest in the Donvale house (pictured below) suggests there will be a good level of competition for this one when the auction begins on Saturday.
<img alt="propertytycoonmay3one" src="/images/stories/2013/05/propertytycoonmay3one.jpg" width="470" height="344">


Meanwhile, an exclusive address and luxury living could be added to your portfolio when <a href="https://www.domain.com.au/Property/For-Sale/House/NSW/Balgowlah-Heights/?adid=2010382864" target="_blank">2 Fisher Street, Balgowlah Heights</a> (pictured below) goes under the hammer.
 
<img alt="propertytycoonmay3two" src="/images/stories/2013/05/propertytycoonmay3two.jpg" width="470" height="343"> 
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Balgowlah Heights and Donvale in the spotlight for this weekend's Property Tycoon auction tipping

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Interest rates appear to have bottomed out for the time being and debate continues with regard to the outlook for the property market.
Ultimately, however, there comes a time when the talking stops and it is time to act. But how do you manage your risk once you decide to take the plunge?
When you’re investing in any asset class, there’s no such thing as a sure bet — and residential property is no different. Whilst there’s potential for capital growth, there’s a flipside of a potential stagnation or decline in market value.
You can reduce these risks by implementing a simple strategy — diversifying your property portfolio. You can do this in two ways. First, buy properties in a range of locations; that is, different suburbs within a city, and/or different states.
Buying all your investment properties in the same suburb or neighbourhood means you’re intensifying your exposure to potential changes outside your control.
For example, if you buy all your properties in an area where shifting ground increase the prevalence of major cracking, you could be up for tens of thousands in repair bills, more than once.
Further, if you buy all the properties in a location that later loses popularity (such as a ‘boom’ town based on a single industry which later goes bust) reduced demand from buyers could affect the resale value of all your assets.
If you buy all your properties in an area which later plays host to a freeway that creates considerable nearby traffic noise, you’ll bear an increased risk that not one, but all your properties will stagnate or fall in value.
By diversifying across areas within a city, you can minimise the risk of substantial cash outlays and capital stagnation or loss. If one property takes a hammering, the pain won’t be as bad when your other properties are holding their own.
The second diversification strategy involves buying across different price ranges. This will provide more flexibility when the time comes to sell and free up equity; for example, when you’re nearing retirement and want to top up your super fund.
Let’s say you have $1 million to spend. You can purchase a single asset with the whole amount, or two assets worth, say, $650,000 and $350,000 each.
If you buy two assets, you need only sell one to free up cash, enabling you to keep the other and continue to amass a source of equity and income outside super.
This strategy can also spread your tax burden. If you bought one property worth $1 million and sold it for a profit, you’d be liable for capital gains tax (CGT) on the whole profit at once.
If you bought two properties and sold them in separate financial years, you could spread your CGT liability over two years.
Because houses are generally more expensive than units or townhouses, diversifying your portfolio across different prices ranges means buying across all three property styles.
Having said this, diversifying doesn’t mean compromising on the quality of your investment assets. When it comes to residential property, quality is definitely more important than quantity.
You can’t control changes in the local environment, infrastructure or demographics. But by diversifying your portfolio and choosing good quality properties, you can minimise the risks associated with these factors and come through the worst of storms relatively unscathed.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Diversify your property portfolio to minimise risks: Mark Armstrong

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The property market is a slow moving beast and when you are able to pick up on the trends and get on board, it allows you to make better investment decisions.
BIS Shrapnel’s emerging trends in residential market demand report released this week picked up on one of the most powerful trends driving the property market.
The report suggested that members of Gen Y are about to embark onto the next phase of their lives. These children of baby boomers grew up in the suburbs and when they left home, moved closer to the city looking to be close to lifestyle amenities and work.
They are now aged between 20 and 34 and are searching for a bit more room as they plan to settle down and start a family. While I agree with the findings in this report I would suggest this trend has been happening for some time and was started by the Generation X.
Gen Xers are now in the late 30s and 40s and many grew up in middle suburbs such as Vermont, Burwood and Oakleigh. Their parents who are now in their 70s and 80s started the urban sprawl in the 50s and 60s as they moved into these areas that were dominated by the first brick veneer homes.
As the Gen Xers got older they went searching for a more dynamic lifestyle than the sleepy suburbs had to offer. They pushed into to areas such as Richmond, Elwood and Fitzroy and either rented or purchased a property.
As they approached their mid 20s to 30s, the same age the Gen Yers are now, they went searching for more space. They had fallen in love with the inner urban lifestyle and wanted to maintain this as much as possible.
Many did not want to move back to where they grew up because it was too far away from the ‘action’ so they searched for areas that put them on the door step of they lifestyle they had become accustomed to. Run down houses in areas such as Camberwell, Hampton, and Northcote were snapped up by the Gen X’ers and strong capital growth in these areas followed.
1 Hartley Street, Northcote (pictured below) is a typical example of what they were looking for. It sits on over 500m2 of land, is close to the city, cafes and pubs and at the time was affordable with scope to improve the house. It was purchased in 1999 for $314,000.
<img alt="armstrongapril24one" height="398" width="470" src="/images/stories/2013/04/armstrongapril24one.jpg">
Today these owners have made a lot of money with the property now worth over $1 million. That is a growth rate of almost 10% compounding each year since it was purchased.
Now it is Gen Y’s turn. They are following a well-worn path established by the older generation. The difference now is many of the areas the Gen Xers moved to are out of reach as in most cases the entry point is a $1 million or more.
So the market has began to pulse out to more affordable areas. Suburbs such as Preston, Brighton East and East Burwood are now feeling the heat from the Gen Y’s who are striving to emulate what the Gen X’s have pulled off.
Last weekend this property at <a target="_blank" href="https://www.realestate.com.au/sold/in-12+taylor+ave%2c+burwood+east%2c+vic+3151/list-1">12 Taylor Avenue, Burwood East</a> went to auction.
The agent quoted the property to sell for $600,000 to $650,000. This quote was viewed as realistic as a slightly smaller but comparable property around the corner at <a href="https://www.realestate.com.au/property-house-vic-burwood+east-108277006" target="_blank">59 Lenna Street</a> failed to attract a bid at auction less than 18 months earlier. It eventually sold for $595,000.
However intense competition to get into this established area drove the price and the property sold for $772,000. This was a huge result and illustrates directly what the BIS Shrapnel is saying.
Getting into these markets is going to be more difficult for the Gen Yers however as they are not just competing with each other. These areas are also highly sort after wealthy immigrants coming to Australia from places such as China and India and this will put further pressure on capital growth.
Regardless of the reasons you buy a property either as a home or investment I believe we should always have one eye on its growth potential. The demographic movements of a population are a vital trend to understand and harness if we want to make the most of our property investment dollars.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Getting into the property market is a tough ask for Gen Y

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An 1867-built Georgian home in South Melbourne and a redesigned warehouse in Annandale will go under the hammer this weekend.
Only moments from Albert Park Lake, <a target="_blank" href="https://www.realestate.com.au/property-house-vic-south+melbourne-113075879">40 Howe Crescent, South Melbourne</a> (pictured below) has three bedrooms and a studio apartment with a private entrance.
<img alt="propertytycoonapril19one" height="350" width="470" src="/images/stories/2013/04/propertytycoonapril19one.jpg">
The property is situated in a premier location and has a luxurious kitchen that is flooded with natural light and has ample space for entertaining.
Meanwhile, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-annandale-113332955">15 Nelson Street, Annandale</a> (pictured below) will not appeal to everyone but for those who love warehouse conversions it could be a highly prized asset.
<img alt="propertytycoonapril19two" height="352" width="470" src="/images/stories/2013/04/propertytycoonapril19two.jpg">
After it was sold in 2009 for $981,000, it was renovated, and agent Dominic Kuneman from Bresic Whitney has indicated it will sell for more than $1.1 million this time around.
There's now a website, <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.

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South Melbourne and Annandale feature in this week's Property Tycoon auction tipping

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March quarter statistics appear to confirm what we have been experiencing on the ground: house prices are on the rise.
According to the REIV, house prices rose by 5.1% to just over $560,000 and although a single quarter does not make a market it will certainly turn the spotlight onto property.
Investors always seem to want just a little bit more and as house prices move many investors will start to think of ways to maximise their returns.
One of the strategies that will raise its head is property flipping: buying a residential investment property, renovating it, then selling it to make a profit.
Property flipping is a common strategy, but unless you plan carefully, it may not bring the kind of return you were hoping for.
When you buy a residential property, the state government asks you to pay stamp duty worth around 5% of the purchase price.  
If you’ve borrowed to purchase the property and undertake the renovations, you are paying interest on the loan without receiving any rental income during the renovation period to offset the loan repayments.  
When you sell the property, you’ll lose 2-3% of the sale price in the commission you pay the real estate agent, plus another 1% in advertising costs.  
In short, not only are you paying interest on an investment loan out of your own pocket, but you are losing close to 10% of the property’s value merely by entering and leaving the market.  
And, when you actively add value to a property, you are taking a gamble that the sale price will equal the price of the renovations plus your profit margin. Most property grows in value over time, but not all sectors of the market grow at the same rate.  
If there isn’t sufficient demand for your style and location of property, you may not make enough money to cover the entry and exit costs, outstanding loan balance and renovation costs, let alone make a profit. If you do make money on the transaction and you sell the property, you will also be liable for capital gains tax. It’s like taking two steps forward and one back.  
I am not saying that buying to renovate and sell is a poor strategy in itself. It can be highly successful, but only if the capital growth outstrips the buying, holding and selling costs.
Even in locations where capital growth is strongest, this may take several years. And capital growth compounds, so the longer you hold the asset, the greater the amount of growth.
If you sell the property as soon as the renovations are complete, you may not have allowed enough time for capital growth to take full effect — substantially reducing your potential profit.  
In other words, the substantial entry, exit and holding costs mean residential property should not be traded like shares, but held for the long term (at least 7 to 10 years) to ensure the capital growth justifies all the expenses you’ve incurred along the way.  
If a real estate agent is advertising a property as perfect for adding value, ask yourself whose interests they are promoting — yours or theirs? Remember, they stand to make a commission on selling the property for the previous owner, followed quickly by another commission on selling the property for you after it has been renovated.  
If you still believe that buying to renovate and selling quickly is the right strategy for you, make sure you calculate all the likely holding and transaction costs.  
Then, research the local market to determine the property’s likely selling price. Look at other properties in the area that have been renovated to the same standards as yours and sold in the last three months.  
It’s also important to factor in the cost of your time. How much you would have earned from your normal job if you weren’t at the property supervising or undertaking the renovations? And what about your leisure time? How much time will you spend away from your family and friends?
For example, if the project is going to take up six months of your evenings and weekends when you would otherwise have spending time with loved ones, will the expected financial profit make that lost time worthwhile?
If the holding, transaction and time costs add up to more than the property’s likely sale price, you may need to reconsider whether it’s worthwhile undertaking the project.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and homebuyers.
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Property flipping is risky business

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A couple of gems are set to go under the hammer this weekend in two of the most sought after suburbs in Melbourne and Sydney.
Situated on one of Fairfield's premier streets, 48 Gordon Street is just a short walk to schools, parklands, trains and vibrant Station Street shopping.

Glorious natural light floods the impeccably presented interior of this attractive three-bedroom home, which enjoys a beautiful broad frontage and large north-facing rear garden plus versatile studio/home office.

It is likely that this home (pictured below) will fetch in excess of $850,000.
<img src="/images/stories/2013/04/tycoonapril12one.jpg" width="470" height="349" alt="tycoonapril12one">
Potential is a word that is thrown around a lot in the real estate world and this is what is on offer when 37 Glenayr Avenue, North Bondi goes under the hammer. 

Peacefully set on a level 436-square-metre block just moments to 'Seven Ways' cafes and a stroll to the beach, this spacious freestanding home offers a unique opportunity in a tightly-held enclave. It is neatly presented and there is fantastic scope to add value.

Damian Steele from McGrath Real Estate says it is worth between $1.6 million and $1.7 million.
<img src="/images/stories/2013/04/tycoonapril12two.jpg" width="470" height="309" alt="tycoonapril12two">
There's now a website, <a style="font-size: 14px;" href="https://www.propertytycoon.com.au/" target="_blank" rel="nofollow">www.propertytycoon.com.au</a>, where punters can guess five auction results in Melbourne and Sydney, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
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Fairfield and Bondi gems ready to under hammer in property tycoon auction tipping

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Recently released housing finance figures from the ABS appear to confirm a change in investor sentiment with a 4.4% increase in investors lending for January.
Click to enlarge
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This increase is resulting in strength in the property market and will entice more investors back to the market. <a href="https://www.propertyobserver.com.au/retail/private-investors-return-to-retail-property-market-as-trusts-sell-out-chart-of-the-week/2013032560066" target="_blank">Investors</a> traditionally want to ensure they get the timing right and do not want to be left behind. This means most investors will make their move once they are sure other investors are active.
As investors come back it is important to enter the market with a level head and not to get too carried away. Whether you’re a first-timer or seasoned campaigner, successful property investment is based on certain timeless principles. Here, I take you through six of the best.
1. Horses for courses. Despite much of what you read and hear, no two properties work the same way. Commercial property is primarily income-producing, whilst residential property primarily generates capital growth. Some properties need substantial renovation to improve their resale value, whilst others have inherently high land values that do the job for you. Some properties (like B&amp;Bs) demand a lot of time and hands-on involvement, whilst others can be managed by a third party, enabling you to ‘set-and-forget’.
All these differences mean that the property which is right for you may not be the property which is right for someone else. Before you enter the market, it’s essential to consider your personal and financial circumstances and goals, your stage of life and the level of involvement you’re prepared to have.
2. Strategise first, buy later. Decide what type of property is appropriate for your situation. Do you have a large enough working income to support the costs of owning an investment property? If so, a residential property that can provide capital growth may be the best bet. Do you need income to replace your wage or salary? In this case, a commercial property or commercial property trust may be more suitable.
Next, determine which entity is going to own it. There are several forms of ownership: individual, partnership, company, trust or self-managed superannuation fund. The tax office treats each form of ownership differently, so seek advice from your solicitor or accountant before you buy. If you have to change the form of ownership down the track, you could be up for thousands in additional stamp duty and/or capital gains tax.
 
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3. Get your finances in order. No matter which type of property you buy, the substantial entry and exit costs mean you must consider it a long-term proposition. It’s not just a case of having the funds to buy the property, but being able to fund the holding costs for at least seven to 10 years. Think ahead to possible changes in your circumstances (such as starting a family, becoming self-employed or retiring) that could affect your ability to hold the asset for the long term.
If you’re buying a new or near-new property and relying on claiming depreciation benefits to maximise your cashflow, remember that most depreciation occurs in the first five years. Once you’ve used up your depreciation allowance, you could be out of pocket unless you can find another source of income to fund the holding costs.
4. BYO research. When you’re researching the local market, be wary of free advice. If someone is purporting to ‘advise’ you but being paid by the vendor, they’ll be accountable to the vendor, not to you.
Instead, do your own research by looking at reputable statistics from objective agencies, attending auctions in person and tracking auction results. If you need back-up, seek advice from professionals who don’t have a vested financial interest in steering you towards a certain course of action.
5. Know your limit. You’re buying an investment property, not a home to live in. You don’t have to love it – or even like it. Leave your emotions at the front gate, set a limit based on your research and stick to it. If the bidding goes over your limit, drop out of the race. It’s one thing to buy well, but buying at all costs simply isn’t smart investing.
6. Regular reviews. Cast a critical eye over your financing arrangements and property portfolio once a year to decide whether they’re still doing the required job. The finance market changes constantly, so you may be able to get a better deal with a different product, package or lender. Are your properties generating rental income and/or capital growth higher than the wider market? If they’re lagging behind Melbourne-wide or local median rental and property values, it may be time to consider selling.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and homebuyers.
 
 
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Investor confidence rising but six principles of success remain the same: Mark Armstrong

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The Melbourne property market is like an incoming tide. It ebbs and flows on the waves of confidence and buyer demand. In some cases the property market slips backwards but it always seems to get back to where it once was.
Over the last couple of years the value of many properties have slipped back by 5% to 10% but we are now seeing the <a target="_blank" href="https://www.propertyobserver.com.au/news/the-10-insights-into-the-2013-property-market-what-why-when-and-where-to-look/2012121658500">market</a> take up that slack very quickly.
For example, in November 2010 a three-bedroom villa unit went to auction at <a target="_blank" href="https://www.realestate.com.au/property-villa-vic-hawthorn-106960682">3/15 Lisson Grove, Hawthorn</a> (pictured below).
<img src="/images/stories/2013/03/armstrongmarch27one.jpg" width="470" height="353" alt="armstrongmarch27one">
At the time, the market was coming to the end of a two-year strong growth phase, but even in such a strong market nobody expected the result that was achieved.
I remember seeing a shocked crowd of onlookers when the property sold for $1.26 million. This result set a new bar for this style of property in Hawthorn and took many people by surprise.
Scarcely six months after this sale the Melbourne market had fallen to its knees and the thought of achieving a similar result again seemed impossible.
However, last weekend a <a href="https://www.realestate.com.au/property-house-vic-hawthorn-113159479" target="_blank">property</a> (pictured below) in a very similar condition and in the same development went under the hammer.
<img src="/images/stories/2013/03/armstrongmarch27two.jpg" width="470" height="348" alt="armstrongmarch27two">
Leading into the auction the agent expected the property to sell in excess of $900,000 and had a reserve around $1 million. The massive result achieved a couple of years earlier was not on the cards as far as the vendor was concerned because ‘that was a different market’.
A large crowd turned up to the auction and when an opening bid of $1 million was placed it was clear the market for this style of property had shifted in the early months of this year. When the five bidders had all been exhausted the final result was a $1.22 million sale. This was just $40,000 short of the 2010 result and $200,000 more than what the vendor would have accepted.
The property market is a unique asset class because it is not primarily an investment. Its main job is to provide shelter. Over time family units grow and fall as we get married, have families, get divorced and eventually die. As a result our living requirements are always evolving.
Over the last couple of years there has been a fear that now is not the right time to buy but the necessity to move has been building in the background.
The market has been slipping back as many buyers opted to wait for the ‘right time’. But while they have been waiting the need for that extra bedroom or smaller home has not gone away. Essentially, even though the market has been weak, the pent-up demand has been growing and now we are seeing that demand flex its muscle.
These buyers are realising that they are in a low and steady interest rate environment and they have not lost their jobs.  The need to do something – in conjunction with the fact many have the capacity to make a move – is driving the market.
Like an incoming tide the market goes through surges. This is a normal part of the market cycle and we are now seeing the market surge back to where it was in 2010.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Melbourne property market bounces back to 2010 levels: Mark Armstrong

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

Joel Robinson

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

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

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>.

[smartcode_project_cta:default project_id=151449]

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.

[smartcode_project:default project_id=134951 project_image_fid=368645]

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."

[smartcode_project:default project_id=134951 project_image_fid=358802]

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.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<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.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

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<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

Mark Armstrong

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