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Mirvac has secured three $5 million plus penthouse sales in the past month at its Waterfront Newstead development, meaning all nine penthouses have now been snapped up in the Pier release.
Three Queensland buyers bought the remaining penthouses, with two located on level five and a penthouse-style river home located on level one.
"These are unique premium apartments, in terms of design, finish and location," says John Carfi Mirvac chief executive officer of residential.
"To make three sales in excess of $5 million each in a single month is positive in any market, so given the soft conditions we've experienced in Brisbane over the past few years, it is a clear sign that we are turning a corner.
"We had been steadily making these top end sales, however we've seen a definite spike in activity for our absolute premium properties in the last 12 months,” says Carfi.
The nine penthouses in the <a href="https://www.propertyobserver.com.au/news/mirvac-secures-%24234-million-in-sales-at-waterfront-newstead-including-%2414-million-penthouse-sale/2013091164964" target="_blank">stage one Pier</a> ranged from $5.3 million to $14.25 million.
The grand penthouse sold in 2008 for over $14 million and set a record for the most expensive apartment sold off the plan in Brisbane, a title it still holds.
Mirvac has sold in excess of $217 million worth of apartments at Pier.
Located two kilometres from the Brisbane CBD in the Newstead Riverpark community, the 10.6-hectare Waterfront Newstead site will feature six residential precincts once complete, accommodating over 1,000 residents.
Construction on the first release, Pier, began in 2009 with construction starting on the second release, Park, in 2010.
Mirvac’s <a href="https://www.propertyobserver.com.au/news/mirvac-secures-%24234-million-in-sales-at-waterfront-newstead-including-%2414-million-penthouse-sale/2013091164964" target="_blank">Waterfront Newstead community</a> will take around 15 years to complete.
The residential community will be part of the larger scale Newstead Riverpark, which will feature FKP’s $1.1 billion Gasworks development.
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ntrotman-Et3xWpamVh

Mirvac secures three $5 million plus penthouse sales at Pier

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It’s two words that are continually circling around the property sphere: negative gearing. We’re yet to hear the Liberal government mouth them and so far there have been no announcement on what it plans on doing.
It’s a friend to property investors but a foe to first home buyers, with <a target="_blank" href="https://www.propertyobserver.com.au/news/home-ownership-rates-among-young-dips/2013102265889">Matt Cowgill tweeting</a> that the home ownership rate among 25 to 34 year olds has dipped below half.
According to a <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/government-policies-favour-wealthy-property-owners/2013102065823">report by the Grattan Institute</a>, negative gearing and the capital gains discount provide residential property investors with nearly $7 billion a year, or $4,500 on average for each property investor.
The report suggests that the current government welfare and tax policies benefit wealthy homeowners, leaving young renters and first home buyers disadvantaged.
Catherine Cashmore has <a target="_blank" href="/news">emphasised</a> that to be against negative gearing as a policy incentive is not a stance against investment into the housing market.
Property Observer has asked property institutions and experts active in the property space to weigh in on the debate.
They were asked: Should negative gearing be change? Why or why not?
 
 
 
 
Shane Oliver – Head of investment strategy and chief economist, <a href="https://www.ampcapital.com.au/?" target="_blank">AMP Capital</a> <img width="125" height="150" src="/images/stories/2013/10/25/shane-oliver-profile.jpg" alt="shane-oliver-profile" style="float: right;">
THE REAL PROBLEM IS LACK OF SUPPLY, NOT NEGATIVE GEARING
It seems every time the Australian residential property market takes off, calls appear for negative gearing on investment property to be restricted or abolished. But is it really the reason Australian housing is so expensive? Yes, it does seem investors have a bit of an advantage over first home buyers and yes, first home buyers seem to be missing in action right now.
But negative gearing is not the real problem. Australia is not alone in providing some form of tax assistance to home owners as most comparable countries do. American’s can even deduct interest on the family home from their taxable income, and yet our house price to income ratios are much higher.
Removing or curtailing negative gearing could even make the situation worse by reducing the supply of rental accommodation at a time when rental yields are hardly attractive for investors and could cause other distortions in the economy because negative gearing would still be available on other investments.
The real problem is a lack of supply. In a well-functioning market when demand goes up, prices rise and this eventually is met with increased supply. This has not been happening in the Australian housing market. We have had a world beating surge in house prices relative to incomes since the mid-1990s and yet building approvals are in the same range they have been in since 1990.
According to the National Housing Supply Council the cumulative supply shortfall since 2001 thanks to gross underbuilding relative to growth in underlying demographic demand for homes is 228,000 dwellings. What we really need to do is reform the supply of housing – release land for development faster, relax (within reason) development controls and develop a long term plan to decentralise away from our major cities.
This would be the best way to help first home buyers and cool speculative interest in housing. Negative gearing is a furphy.
 
Steve Keen – Professor of economics and finance, <a href="https://www.uws.edu.au/?" target="_blank">University of Western Sydney</a> <img width="125" height="150" src="/images/stories/2013/10/25/Steve-keen-profile.jpg" alt="Steve-keen-profile" style="float: right;">
IT NEEDS TO BE GRANDFATHERED OUT OF EXISTENCE
Negative gearing should be grandfathered out of existence: those who've already bought an investment property would continue to be eligible, but it should not be available in future.
The simplest reason is that it has failed in its one supposed policy objective: to enhance the supply of rental properties. What it has instead done is encourage individuals to speculate on the prices of existing properties. It has thus driven up house prices above what they would be if the government wasn't meddling in the property market, while doing precious little to increase the availability of rental properties by stimulating new construction. Borrowing by investors for building construction has fallen from 60% of investor loans to below 10% over the last three decades - a clear sign of a failed policy.
So why is it maintained? Because the policy has created a class of speculators whom neither party has the courage to anger by abolishing a failed and socially damaging policy. The continued existence of negative gearing is a measure of the cowardice of Australia's political elite.
Next page: Terry Ryder and Peter Bushby have their say
 
<hr class="system-pagebreak">
Terry Ryder – Founder of <a href="https://www.hotspotting.com.au" target="_blank">hotspotting.com.au</a> <img width="125" height="150" src="/images/stories/2013/10/25/Terry-Ryder-for-profile.jpg" alt="Terry-Ryder-for-profile" style="float: right;">
THERE’S NO REASON FOR IT TO BE CHANGED
I would say categorically, no and I’m absolutely 100% certain that they won’t be. It’s an issue that just keeps getting brought up but no politician with his head screwed on is going to make that change to negative gearing.
There’s no reason for it to be changed, it’s a system in place for clear reasons, for valid reasons and it works. The one and only time that a government in Australia decided to scrap it precipitated a disaster in the rental market and they had to bring it back very quickly. That happened in the era that Bob Hawke was prime minister and Paul Keating was treasurer.
Particularly in our capital cities, negative gearing is necessary for the viability of people buying investment properties. Without it, there would be a sharp reduction in the number of people who a buying properties in the capital cities because it’s very, very hard in our major cities to buy an investment property that’s positive cash flow. The vast majority are cash flow negative and without the tax benefit, it’s not a viable investment, therefore the pool of rental properties that are needed for those who rent, would dry up very quickly.
I’m not arguing from the viewpoint of vested interest, I don’t buy negatively geared property, I always buy positively geared. From my personal viewpoint, I don’t care whether it exists or not because I’m not affected but I think it would be a disaster for the property market for people who need to rent if it were removed. As it happened previously when Paul Keating removed it briefly before bringing it back.
 
Peter Bushby – President of the <a href="https://www.reia.com.au/?" target="_blank">Real Estate Insitute of Australia</a> (REIA).<img width="125" height="167" src="/images/stories/2013/10/25/bushby-profile.png" alt="bushby-profile" style="float: right;">
NEGATIVE GEARING NEEDS TO BE RETAINED, STAMP DUTY NEEDS TO BE ELIMINATED
We [REIA] strongly agree with the report’s [Grattan Institute Renovating Housing Policy] recommendations to eliminate stamp duties, however it’s essential negative gearing be retained in its current form for the purpose of property investment.
REIA has always supported negative gearing because it helps in the provision of rental accommodation. Negative gearing for property investment is complementary to the goals of the Government’s Housing Affordability Fund (HAF) in addressing the supply of rental accommodation.
To remove it would show that we haven’t learnt anything from history. When negative gearing was abolished in 1985 it had disastrous consequences for the property market and for people trying to rent. Rents rose 37% across Australia and by 57% in Sydney. Thankfully, negative gearing was reinstated in 1987.
It is far too short sighted to link investor interest in housing to negative gearing alone. Negative gearing is only one of a range of factors that contribute to the level of investment in property. Other factors include interest rates, availability and accessibility of finance, share market performance, the unemployment rate, housing supply and consumer confidence.
The myth that negative gearing is a plaything of the wealthy also needs to dispelled. The majority of taxpayers with a negatively geared property earn less than $80,000 a year. With the new government, expectations that industry will be involved in finding workable solutions to these old issues are high.
 
The debate is quite prominent in the twittersphere, with Catherine Cashmore and Oliver raising their concerns.
<blockquote class="twitter-tweet">
<a target="_blank" href="https://twitter.com/CCASHMORE_BUYER">@CCASHMORE_BUYER</a> ..I seem to recall in late 80s NG was curtailed only to be returned after its removal reduced the supply of rental accom
— Shane Oliver (@ShaneOliverAMP) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/ShaneOliverAMP/statuses/392622101128966144">October 22, 2013</a>
</blockquote>
If you would like someone’s opinion added to the list, please email ntrotman@propertyobserver.com.au and we’ll consider getting their viewpoint.
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Should negative gearing be changed? The experts have their say

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Property Observer was recently informed of a first home buyer who had received preapproval with Bankwest on a loan and after the valuer inspected the property, they chose to decline the loan as it was within 100 metres of high-tension power lines. This came as a surprise to the new buyer who was unaware that this was even something that could affect their ability to buy a property.
The property was said to be outside QBE insurance guidelines.
This led Property Observer to ask a range of mortgage brokers and property advisors to provide a list of obstacles that may come in the way of you and your bank loan, so that you don't find yourself in the middle of any nasty surprises.
“The important thing is if there is a risk with either the security or you, then your highest criteria for your loan search does not come down to the lowest interest rate, rather which lenders policies will mean that you satisfy their risk tolerance and that of the Lenders Mortgage Insurance (LMI) they use,” said director of Investors Choice Mortgages Jane Slack-Smith.
Obstacles include:
<ul>
<li>Bushfire prone areas and flood areas</li>
</ul>
<ul>
<li> Results in credit score</li>
</ul>
“A minor default on a telephone bill or a late gas payment could stop a borrower from obtaining finance,” Mortgage Choice spokesperson Jessica Darnbrough explained.
<ul>
<li>Buying in a mining town</li>
<li>Properties under 50 square metres and studio apartments</li>
</ul>
“Some lenders will not lend on a unit located in a high density apartment block. High density apartment blocks are usually three to four stories high and have more than 30 units,” Darnbrough continued.
<ul>
<li>Heritage listed properties</li>
<li>Uninhabitable to live in “as is” – It could be a renovators dream but financing is difficult to obtain if the property is lacking a kitchen or a bathroom</li>
<li>High tension power lines</li>
</ul>
Each mortgage insurer differs and some have a 100 metre restriction, whereas others will only have a 50 metre restriction.
<ul>
<li> Valuation shortfall</li>
</ul>
“One of the most common problems people face when applying for a home loan is a shortfall between the purchase price of the property and the amount the bank values that property for,” Darnbrough said.
<ul>
<li>Buying a property in a specific holding structure, for example Hybrid Discretionary Trust with corporate Trustee or SMSF</li>
<li>A property with a granny flat</li>
<li>A property with a specific use, such as a boarding house, commercial property, holiday house, student accommodation, display homes and NRAS</li>
<li>Serviced apartments</li>
</ul>
As Slack-Smith says, some lenders will not lend at all if these obstacles come in the way, whereas others will reduce the loan to value ratio (LVR) to below 80%.
If you know of a loan that has been declined for something not included on the list, please email <a href="mailto:ntrotman@propertyobserer.com.au">ntrotman@propertyobserer.com.au</a>
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Hurdles to watch out for when acquiring a bank loan

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One of Australia’s biggest comparison websites finder.com.au is warning borrowers to compare home loans or face paying too much, as more Aussies opt for a fixed term.
Finder.com.au says many fixed rate home loans have attractively low rates but after the fixed period ends, they are reverting up to 1.01 percentage points.
According to the website, the average three-year fixed rate is currently 5.07% and reverting to 5.51% after the fixed period ends, but there are some banks, including all four major banks, that revert up to 6.19%.
In July 2011, the difference between average three-year fixed rates and the revert rates was only 0.03%.
As of October 2013, the difference between three-year fixed rates and revert rates has climbed to 0.44%.
The amount of borrowers choosing to fix has climbed in the last 12 months by 29,122 more.
“Fixed loans are great for certainty that your repayments will remain the same during the fixed term, particularly when there’s talk of rising interest rates on the horizon following the latest inflation figures,” says spokesperson of finder.com.au Michelle Hutchison.
“And there are some very good value deals currently being offered, with three-year fixed rates starting from 4.69 % on <a href="https://www.finder.com.au/home-loans">finder.com.au/home-loans</a>. But low fixed rate loans are not necessarily the best value over a 30-year loan term if the revert rate is much higher.
“For instance, let’s take a typical $300,000 mortgage over 30 years with the average three-year fixed home loan of 5.07% reverting to 5.51%.
“The extra cost after the fixed period would be about $81 per month. Over the remaining loan term of 27 years following the fixed period, this extra cost is potentially over $26,000,” says Hutchison.
Hutchison says the best way to avoid being ripped off with a fixed home loan is by comparing home loans before your fixed term ends and renegotiating with your lender or to switch to a better deal.
“If you fixed at the average three-year fixed rate of 5.07% and switched after three years to one of the lowest variable rates available – currently 4.59% – that’s $168 less in monthly repayments compared to the average revert rate of 5.51%.
“Over the remaining loan term that’s a saving of over $54,000,” says Hutchison.
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Home loan comparison website warns about the importance of researching a fixed loan

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The last release of Defence Housing Australia’s Heartwood residential development was snapped up in just four hours over the weekend.
Located at Voyager Point in South West Sydney, the 25 blocks ranged in price from $371,000 to $468,000 and ranged in size from 450 square metres to 708 square metres.
“Pent up buyer demand for the land lots was realised over the weekend,” says DHA managing director Peter Howman.
“Land lots like these are rare in the hustle and bustle of Sydney, and this just shows that buyers want the lifestyle and amenities that Heartwood and DHA have to offer.
“This community was designed to promote connectivity throughout the existing area with new cycleways and walkways linking to the bushland and river,” says Howman.
The development is named after the heartwood of the Mahogany trees that surround Voyager Point.
Defence Housing Australia will retain 42 land lots for defence members and their families, with construction of the DHA properties to commence at the end of October.
The median house price in <a target="_blank" href="/news">Voyager Point</a> is $755,000, a 19.8% change in the past five years, according to RP Data.
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Last release of Defence Housing Australia's Voyager Point development snapped up

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Harcourts is set to lay down the red carpet in the Mornington Peninsula, as the real estate company launches Harcourts Luxury Property Selection today.
“The introduction of Harcourts Luxury Property Selection to the Mornington Peninsula will strengthen opportunities for new and existing clientele wanting to get their hands on coveted peninsula real estate, and will further position Harcourts as an enviable leader in the market place,” says business owner of Harcourts Luxury Property Selection Mornington Gerard Cosgrave.
Clients of the luxury sector will receive services such as the real estate concierge and properties listed with Harcourts Mornington will now be able to be advertised in eight different countries.
“The Harcourts Mornington team are delighted to now have the ability to expand our local offering whilst utilising Harcourts’ international prowess,” says Harcourts Mornington general manager Lauren Wild.
“The Mornington community will be the ultimate beneficiaries of this service as the Harcourts Luxury Property Selection focuses on showcasing properties to generate maximum exposure on a global scale, meaning the best possible prices are achieved,” says Wild.
The company's door officially opens today.
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Harcourts to bring luxury to the Mornington Peninsula

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The Reserve Bank of Australia’s consumer price measures of inflation are stable and well within its target zone of 2% to 3%, according to the September 2013 quarter Consumer Price Index (CPI).
The consumer price index rose by 1.2% and annual inflation rate is now 2.2%.
The analytical series of trimmed mean and weighted median increased by 0.7% and 0.6% respectively for the September quarter 2013, compared to increases of 0.6% for both in the June 2013 quarter.
“The annual changes for the trimmed mean and for the weighted median were 2.3% for both and compare to the changes for the twelve months to the June quarter 2013 of 2.3% and 2.5% respectively,” says REIA president Peter Bushby.
The housing group increased by 2% in the September quarter, compared to 0.6% in the June 2013 quarter.
The annual rate increase of 4% is down from 5.3% to the year to June.
The main increases in the September quarter were water and sewerage, an increase of 9.9%, and property rates, an increase of 7.9%.
Of the year to September 2013, the largest increase in the housing group was for electricity at 6.1%.
Rents increased by 3.2% for the year.
“With inflation well under control and a subdued economy, it’s appropriate that the RBA Board maintains interest rates at their present level when it meets on Melbourne Cup Day,” says Bushby.
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RBA needs to maintain interest rates: REIA

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The third release of the $230 million residential development Erko will comprise of 16 torrens title terrace houses priced from $1.575 million.
The joint venture between Leighton Properties and LaSalle Investment Management will be known as Ashmore Terraces.
Built on the northern boundary of the 1.6-hectare development in Erskineville, the three-storey terrace houses of 185 square metres will feature three bedrooms and interiors by SJB.
<img alt="erkoi-oct-23-two" height="258" width="470" src="/images/stories/2013/10/24/erkoi-oct-23-two.jpg">
“We engaged SJB, Prineas and TRIBE Studio to take the finest features of a Victorian terrace, modernised them, and then integrate principles of thoughtful, sustainable design,” says managing director of Leighton Properties Mark Gray.
Apartments feature marble ensuites with freestanding baths and large stone benchtops in the kitchens with miele appliances.
“Most of the time we are working within the confines of an existing building, however this was an opportunity to design a classic architectural style with modern living in mind,” says Hannah Tribe of TRIBE Studio.
Gray says Erskineville is synonymous with terrace living and expects the third release to be well received by owner-occupiers.<img style="float: right;" alt="erko-oct-23-one" height="296" width="200" src="/images/stories/2013/10/24/erko-oct-23-one.jpg">
Tim Rees of CBRE says the beauty of the Erko terraces are that they’re brand new.
“You are not buying a property in need of repair nor suffering from maintenance issues which is practically unheard of in a suburb so close to the city, especially one like Erskineville which is in such high demand,” says Rees.
The first stage of Erko was released in November 2012 and the second stage was released in 2013, totally 263 apartments priced from $400,000 to $1.3 million - only three apartments remain.
Construction on Erko began in June this year and is on track for a late 2014, early 2015 completion.
The fourth and final stage will have approximately 40 apartments.
The median house price in <a target="_blank" href="/news">Erskineville</a> is $825,000, a 25% change in the past five years, according to RP Data.
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Third release planned for $230m Erko development

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Don’t have much cash to splash but want to own your own property? Property Observer has found the five cheapest properties around the nation currently on the market, and although they need some work, we want to know if you’d grab a bargain to get your hands dirty.
This <a target="_blank" href="https://www.realestate.com.au/property-house-vic-woomelang-107525560">two-bedroom weather board period cottage</a> (pictured below) in Woomelang is on the market for $39,000.
It has recently had some re-cladding in hardi plank and even has air conditioning but it is in need of a new kitchen.
{yoogallery src=[images/stories/2013/10/23/woo]}
 
This <a target="_blank" href="https://www.realestate.com.au/property-house-vic-nhill-114621215">t</a><a target="_blank" href="https://www.realestate.com.au/property-house-vic-nhill-114621215">hree-bedroom home</a> in Nhill (pictured below) is probably the most appealing of the five and is marketed as an ideal investment or development opportunity.
It features electric cooking, a comfortable sized living area and one bathroom.
{yoogallery src=[images/stories/2013/10/23/nhill]}
 
The cheapest of the bunch is <a target="_blank" href="https://www.realestate.com.au/property-house-wa-norseman-107683506">this two-bedroom cottage</a> (pictured below) in Norseman.
Situated on 647 square metres, the property features Jarrah floors, a single car garage and a patio, and has an asking price of only $25,000.
{yoogallery src=[images/stories/2013/10/23/norse]}
 
This <a target="_blank" href="https://www.realestate.com.au/property-house-vic-pyramid+hill-112438671">Pyramid Hill property</a> is the most expensive out of the five, but is literally a shell with walls and a roof.
Comprising of two bedrooms, the property (pictured below) sits on a double block with some plumbing done and a new roof.
It is listed for $43,500.
{yoogallery src=[images/stories/2013/10/23/pyr]}
 
Last but not least, this <a target="_blank" href="https://www.firstnational.com.au/?pagecall=property&amp;propertyID=2327872">two-bedroom home</a> in the small gold mining town of Mount Magnet is on the market for $40,000.
Situated on 1,012 square metres, the property (pictured below) even comes with all the furniture in place – including the washing machine and the fridge.
{yoogallery src=[images/stories/2013/10/23/mag]}
 
<img alt="poll-results-oct-24" height="132" width="419" src="/images/stories/2013/10/24/poll-results-oct-24.gif">
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Would you buy a property under $50,000 to renovate?

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Following the recent demand for land at Shell Cove, Australand and Shellharbour City Council are releasing 12 lots this weekend in the Ocean Links Precinct.
The masterplanned Shell Cove community has received strong interest with the <a target="_blank" href="https://www.propertyobserver.com.au/news/demand-remains-strong-for-australand-s-shell-cove-masterplanned-community/2013100865580">previous land release</a> snapped up on its release day.
Located in Bonville Parkway, the 12 lots range in price from $310,000 to $360,000 and range in size from 616 square metres to 776 square metres.
Australand is expecting the latest release to attract those with school aged children, with an one-site Shell Cove primary school and pre-school close by.
“Buyers can utilize the extra space by installing a pool in the backyard, growing a beautiful garden or even including an extra bedroom in their home design,” says Australand NSW residential division general manager Nigel Edgar.
“Golfing enthusiasts will have the opportunity to purchase a prime piece of land front The Links Shell Cove 18 hole golf course, with many of these lots offering uninterrupted views across the beautiful fairways and greens.
“Sales have been extremely strong this year at Shell Cove and we are committed to meeting market demand by releasing affordable land in a variety of precincts within the community,” says Edgar.
The Bonville Parkway release will be launched on October 26.
The median house price in <a target="_blank" href="/news">Shell Cove</a> is $530,000, a 9.8% change in the past five years, according to RP Data.
news@propertyobserver.com.au
For the latest development listings, brought to you by Property Observer and partners, see our <a rel="nofollow" href="https://showcase.propertyobserver.com.au/">Investor Showcase</a>.
                   
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Shell Cove to release 12 more lots this weekend following strong buyer demand 

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.

[smartcode_project:default project_id=150489 project_image_fid=373834]

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."

[smartcode_project:default project_id=150713 project_image_fid=373827]

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;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<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.

Nicola Trotman

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