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Off the plan apartments are generally offered at a cheaper rate and provide investor incentives such as tax depreciation benefits and stamp duty savings.
However, for most buyers, the big picture goal is capital gain, so assessing the return potential of a new purchase from day one will help ensure success. Here are some key things to consider to get the most capital gain from an investment.
The first red flag? An oversupplied market
When a market becomes oversupplied, values can drop sharply, as can rental rates. New South Wales-based property investor <a href="/guides" target="_blank">Cameron McEvoy</a> says high market penetration occurs when too many large-scale development applications are approved by a council and are completed a few years later, resulting in an oversupply of housing stock in an area.
To avoid investing in a soon-to-be development jungle, investors should talk to local councils or visit the department of infrastructure website in their state to find out about projects that are underway or in the planning stage.
Heritage listed sites are a bonus
McEvoy says heritage listed sites are great things to look out for as heritage dwellings are not going to be bulldozed any time soon, therefore potentially making a desired apartment block as rare as hen’s teeth in that area.
“This in turn could result in your dwelling holding its value or increasing in value faster,” says McEvoy.
Get a demographic snapshot of the area
Understanding the population growth and job opportunities in an area is also an important tool in assessing capital gains, as it can give a snapshot of how an area is changing.
Principal of Sydney-based buyer’s agency 37 Property Group, Dean Berman, recommends comparing an old Australian Bureau of Statistics census against the most recent census to get a snapshot of how an area is changing.
Berman says to consider historical trends of vacancy rates and rental yields to gauge an understanding of the market.
“Investors could look at how vacancy rates have performed over the last five to ten years and that, sub two percent, is a good benchmark,” says Berman.
Owner-occupier appeal
Property Searchers managing partner Scott McGeever says a good investment needs to appeal to the owner-occupier market rather than the mass investor market.
“This will generally be done by investing in a larger floor area in a smaller complex, rather than a smaller one-bedroom unit in a high rise complex,” McGeever says.
One-bedroom units in high-rise complexes will fall into the trap of competing against a hundred other similar apartments in the same complex, which appeal to the same market.
Remember…
Before investing in an off the plan apartment, research is integral in assessing whether the development has the potential for capital gain. As mentioned, things to look out for include: avoiding an oversupplied market, a larger floor area in a smaller complex is better than a small space in a highrise development, and having a demographic snapshot of the area and its potential for change is crucial.
Off the plan apartments, like any other investments, are more likely to result in a positive investment if due diligence is taken in the research phase.
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How to: Access capital gain from a new apartment

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National vacancy rates increased during the month of December to 2.6% with 73,082 vacancies recorded nationwide, according to SQM Research.
This figure represents a 0.4% increase compared to November and a 0.3% increase year on year, but SQM says vacancy rates tend to rise at the end of each calendar year.
Melbourne currently has the highest vacancy rate out of the capital cities, recording 3.4% for the month of December; a 0.4% increase from the previous month but a 0.2% decrease year on year.
According to SQM, December was the fifth consecutive increase for Melbourne, which now sits above the market equilibrium of 3%.
Year on year, Perth experienced the biggest jump, increasing 1.2% from 0.9% in December 2012 to 2.1% in December 2013.
Brisbane and Canberra both increased 0.6% annual, recording a vacancy rate of 2.8% and 2.3% respectively.
SQM says the ongoing uptrend in the number of capital cities’ CBD locations is of significance, with the Brisbane CBD recording a vacancy rate of 5.4%, Melbourne CBD recording 5.8% and Perth CBD recording a 5.9% vacancy rate.
The surge in vacancy rates in capital cities’ CBD is a result of new supply on the market, with rates trending upwards since mid-2013, says SQM.
The asking price for rental properties remained flat during 2013, with the capital city average recording a 0.8% increase for houses and a 1% increase in asking rents for units, according to SQM Research’s Asking Rents Index.
Darwin experienced the biggest increase for housing, rising 5.9% for asking rents for houses and a 7.7% increase in asking rents for units.
Canberra recorded the steepest decline of 8.4% in asking rents for houses and a drop of 5.3% in asking rents for units.
Regionally, SQM recorded high vacancy rates in a number of resources based townships, including Karratha at 8% for the month of December, Port Hedland recorded 6.3%, Gladstone at 11.1%, Mackay at 6.8% and Townsville at 8%.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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National vacancy rate climbs to 2.6%: SQM Research

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When it comes to picking property winners that will benefit you from capital growth, there is no particular formula to follow. Every investment opportunity comes with risks, but Property Observer has asked a group of buyer’s agents to share a property they’ve bought that made an impressive capital gain and one they learnt a lesson from. Each agent was asked about the property and why he or she chose it. 
Read below for some tips for your next investment choice. 
 
Rich Harvey, buyer’s agent and managing director of <a href="https://www.propertybuyer.com.au/" target="_blank">www.propertybuyer.com.au</a>
Investors get confused between “Research” and “Search” 
We all dream of finding an amazing property deal that will provide incredible returns to give us financial freedom.  However, the reality is that property investment is a long term game and we need patience, fortitude and wisdom to do well.  I see so many investors get impatient and sell out too early and miss out on the best years of growth when a property cycle turns upward.  I also hear of investors rushing into new off plan deals because the brochure looks nice and they can see themselves living there when the market fundamentals do not stack up.
Property investment in the first instance is about picking the right area before drilling down to individual property type.  Investors get confused between “Research” and “Search”.  Research is about understanding the dynamics of the local area, the micro and macro factors that will drive a local market – i.e. demographics, population growth, infrastructure, employment, supply and demand.  Searching is about looking at what property types suit the local area and are in the highest demand. Then it’s about the individual characteristics of the property itself – construction type, floor plan, finishes and inclusions etc.
With over 15,000 suburbs to choose from investors can face an overwhelming challenge to pick the right areas.  Fortunately there are some clever research tools that we use as Buyers Agents to help shortlist both suburbs and properties.
I have bought a multitude of properties that have performed well over the long term.
As a buyers’ agent I regularly come across “off-market” deals via our extensive network of agents.  I purchased a property in Leichhardt in Sydney’s Inner West back in mid-2007 for $645,000.  It was a tri-level townhouse with four bedrooms, 2.5 bathrooms and a very rare double lock up garage.  At the time the rent appraisal was only $650 but I knew this was under-rented and with some minor renovations it could increase both yield and value.  The property was located very close to Norton Street, which is the main shopping strip of Leichhardt with the Italian Forum shopping centre, trendy cafes, bookshops and other boutique stores.  Although under the flight path, Leichhardt is close the CBD, with good road, bus and light rail links nearby.  The Inner West of Sydney is a solid performing area for capital growth and contains a good mix of property types.
I chose the property as it was located in a quiet street and in a small block of only five townhouses (low strata fees), close to schools and shops, and the double garage - which was a rare as hen’s teeth!  Internally, the property had a good layout with average size kitchen, living and diving and outdoor terrace, leading to a small grassy yard.  There was also a small study on the ground floor with its own courtyard.  On the first floor were three bedrooms and two bathrooms (main with ensuite).  On the third level was a huge open plan rumpus area which could be used as a teenagers retreat/ extra bedroom or fabulous home office.
It could be rented to a wide range of potential tenants and we never had any vacancy issues. We were able to raise the rent each year in line with market increases and got the rent up to $950 per week.  I recently sold the property for $1.03 million to pursue other investments, so made a solid capital gain of almost 60% over six years (i.e. 9.9% per annum).  I would have been happy to retain this property as part of my portfolio but there also comes a time when it is appropriate to sell and take a profit.
 
Jacque Parker, director of <a href="https://housesearchaustralia.com.au/" target="_blank">www.housesearchaustralia.com.au </a>
Smart buying occurs in the price range where the majority of residents in the area can afford to rent
 
I purchased a "bread and butter" freestanding house in Singleton at the end of 2001 for IP purposes.  Wanted to stay around the affordable/median price for the town (as I've done with all our residential investments) and searched for a property that would appeal to a wide variety of tenants (3x1x1 with decent yard and easy walk to town centre).
We chose this town as it was affordable for our budget - sub $100,000 - at the time. We had some familiarity with the area and knew the town was large enough to support more than one industry such as agriculture, defence force and mining. We also wanted something that lent itself to a renovation if we decided to increase value.  In the 12 years we've owned it, the rent has increased from $150 per week to $330 and the value has increased from $85,000 to $320,000. That's a 274% increase in 12 years, which we're happy with.
The property has consistently returned us an increasing positive cash flow, with very little added over the years in terms of costs.  We have repainted, conducted minor repairs and added new blinds only during this period. We have been fortunate enough to have an excellent caring tenant during the majority of our ownership and out of our entire portfolio, it has provided the least headaches. What we learnt from this investment is that smart buying occurs in the price range where the majority of residents in the area can afford to rent.  Doing our research beforehand certainly helped in ascertaining this, as well as having local knowledge of this particular area and town. It also has killed off the long-held myth that there is little capital growth to be had in regional areas!
 
Philippe Brach, buyer’s agent at <a href="https://www.multifocus.com.au/" target="_blank">Multifocus Properties and Finance</a>
Cash flow has to be manageable
I bought a three-bedroom townhouse in St Lucia in Brisbane in late 2004 for $320,000 that was rented to a coffee shop owner for $380 per week. He vacated three weeks later and ever since I have permanently three overseas students from the nearby Queensland University Campus (1.5km away) and the rent jumped to $500 per week straight away.
Currently, the property is valued at $600,000 and with the upcoming increase in prices in Brisbane I am confident that this will jump again. In addition, I now collect $630 rent per week. So it is a nice combination of being cash flow positive and great provider of capital gains.
The only property I bought that underperformed was an over 55s unit in Eagleby, south-east Queensland. It was an experiment for me. I paid $90,000 for it in 2005 and it is worth about $85,000 now. The rent is great – currently $250 per week – so it is comfortably cash flow positive, but capital growth is non-existent. I assumed at the time that, since pensions increase by 2% above CPI, capital growth would follow the same progression. It brings me some cash, but you are never going to get seriously rich with a cash flow alone!
My philosophy is that capital growth is definitely the name of the game, but cash flow has to be manageable. Buying a strongly negative cash flow property that promises great capital gains can be reckless unless you have too much cash to burn.
 
Damian Collins, managing director of <a href="https://www.momentumwealth.com.au/" target="_blank">Momentum Wealth</a>
Fundamental property principles - Land value is what goes up while buildings depreciate
We have purchased a number of properties that have performed exceptionally well for clients. One recently springs to mind is a client purchase that was just sold for a substantial profit. The property is in the Perth suburb of Kewdale.
We purchased the property for $515,000 in March 2011 and the client sold it in December 2013 for $761,500 without doing anything to it. This represented capital growth of 47.9% in the period of 2 and 3/4ths of a year when the Perth market median has grown only 5.1% over the same period. We have had a number of similar results for clients. Our research team had identified rezoning in the area and predicted a rapid re-rating in the market of any property with development potential. Our Buyers Agent team targeted this area for clients looking for development opportunity and many clients are up around 50% in around two years.
A property that I've purchased that underperformed would be a unit I purchased myself many years ago in the early 2000's. I sold it a few years later for a small profit, however it had underperformed the market. I realised quickly the importance of sticking to fundamental property principles - land value is what goes up while buildings depreciate. As long as you understand that you can make more informed property decisions.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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How buyer's agents pick the best performing properties

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Property development and investment group Tipalea Partners has splashed $11.8 million on an industrial property in Port Botany, amidst structural change in South Sydney, which will see 20% of the current industrial market removed.
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"South Sydney remains such a strategically important industrial market in Sydney and it's undergoing massive structural change,” says Scott Spanton managing director of Tipalea Partners.
“The most significant change is that around 1,000,000 square metres of industrial land and buildings is earmarked for residential and commercial redevelopment over the next five years. This will effectively remove 20% of the current industrial market," says Spanton.
Tipalea Partners bought a 6,600-square-metre six unit industrial property on Beauchamp Road with an 8.1% indicative rental yield.
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"We expect strong rental and capital growth potential will be created by the ongoing displacement of industrial tenants as the gentrification of South Sydney continues between now and 2020.
“It's the perfect storm of investment conditions, critical infrastructure assets are being expanded, demand for space is increasing but supply is shrinking,” says Spanton.
The site is fully leased with expiries ranging from 2014 to 2018.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Tipalea Partners snaps up Port Botany site for $11.8 million

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At the height of the mining boom back in 2011, Gladstone was touted by many as a hotspot; recording a vacancy rate of just 0.6% in the June quarter and settling in as Queensland’s top performer in August.
But after an injection of supply into the market from completed projects and QGC moving their staff to accommodation on Curtis Island, the vacancy rate has continued to climb.
Louis Christopher of SQM Research recently spoke to David Koch on Channel 7’s Sunrise and claimed that Gladstone is experiencing rental falls of 30% and a high vacancy rate around 7%; concluding that the Gladstone market is positioned to crash.
According to RP Data, rents have continued to trend downwards since February 2013 and the median weekly rental rate has fallen -7.3% for houses as of October 2013.
John Fieldus director of property management and leasing Ray White Gladstone says the vacancy rate got very close to 9% the week before Christmas but is currently back around 3.5%. 
“I’ve been a property manager for 25 years and it’s very sensational what is being said.
“Vacancy rates got very close to 9% the week before Christmas but that occurs every year in Gladstone.
“It’s like an ebb and flow effect, a lot of tenants do transfer, it’s a very transient sort of town,” says Fieldus.
Fieldus says that rental property in Gladstone accounts for around 40% of all dwellings.
“The vacancy rate has been less than 1% over the last seven years until a month ago. Some 4,000 houses have been built in the last year, and a large percentage of those are investor driven.
“There’s around 850 vacancies around the city at the moment, which is four times higher than what we’re used to. But I’m confident in the market absorbing a lot of the vacancy we have, it just takes sheer hard work,” says Fieldus.
Fieldus says rents in the area have come back 10-15% in recent times, which means existing tenants can get a better deal.
“Majority of the tenants are existing tenants in town looking for a better deal. They’re picking up on that 10-15% drop and can find something better,” says Fieldus.
Fieldus describes the Gladstone market as a funnel; too much is going into the top and it can’t be funneled through.
“It’s certainly not going to be a buoyant year but I don’t think the market has crashed it, I dispute that strongly.
“Our challenge is to absorb all those vacancies. I think over 500 would be self-contained units built and developed for the Curtis island project.
“The company then built their own accommodation on their construction site and now there are several thousand living in the companies own accommodation on the island, which has been detrimental to Gladstone.
“I think housing is nearly in balance and I think we can get it back to balance this year. Majority of the development has ceased here, so we’re trying to filter everything through the funnel but too much is going through the top."
In terms of the future market for Gladstone, Fieldus says it just needs a bit of elbow grease.
“It’s taken more than 12 months to absorb the vacancies and the town itself is in a little bit of semi shock.
“If you stand back and be objective, we’ll be in oversupply for a little while. It will just take some time, it needs some growth and there is still a lot of employment around,” says Fieldus.
Major projects currently under construction include the $2.5 billion port expansion of the Fisherman’s Landing Reclamation Area, the $2.5 billion Wiggins Island new coal export terminal and the $23 billion LNG production facility, among many others.
The median house value as of November 2013 was $495,000, a 10% drop from $551,000 in November 2012, according to Residex. They put the capitalised annual yield at 6%, with the median reflecting a 5% rental yield.
RP Data records the median rental yield of West Gladstone at 6%.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Is the Gladstone market positioned to crash? 

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Confidence in the property industry has reached record levels, increasing eight points since the same time last year to a new high of 140 points. 
According to the Property Council/ANZ Property Industry Confidence Index, every Australian market is in positive territory, with capital values expected to rise and construction activity set to increase.
“This is great news for the hundreds of thousands of Australians working in the property industry,” says Property Council of Australia chief executive Peter Verwer.
“Positive expectations about house price growth and significant expected increases in residential construction activity across the nation are driving a strong upturn in confidence for the property industry.
“The industry has been buoyed by strong staffing level increases across the nation over the last three months and is confident of further increases in staff hiring over the next 12 months,” says Verwer.
Verwer says the answer to boost economic growth and create jobs is a clear answer.
“The message from Australia’s largest business confidence survey is that it is property and construction, the industry that employs more people and contributes more to GDP than any other, that will lead the way to future prosperity.
“This is more than a bounce due to political events – this is Australia’s largest industry powering back up after a long period of consolidation,” says Verwer.
But outside the property sector, ANZ chief economist Warren Hogan says the improvement in business sentiment has been tentative and the near-term outlook for the Australian economy remains subdued.
“Mining investment is winding down from unsustainable highs and the public sector will likely detract from growth in the near-term.
“Hence, despite a solid recovery in the property sector, ANZ expects that Australia will experience below-trend growth over the next 12-18 months.
“For monetary policy, this suggests that we are in for an extended period of low interest rates. The future path of the AUD, however, will remain an important consideration for the RBA,” concluded Verwer.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Confidence in property industry reaches record high

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Sydney homeowners have the chance to have their home remodeled with bespoke Italian furniture worth up to $1 million. The only catch – your home will act as a living showroom for 12 months.
After a similar contest in New York, Venetian design group Design-Art has landed in Australia and is seeking an apartment/terrace around 150-200 square metres.
The homeowner will have the opportunity brief the Design-Art team on their design goals, and then work with Italian designers and local architects to transform their home.
The home will be decked out in hand crafted furnishings, 3D-printed lighting, floor coverings, kitchen and bath furniture and accessories, all incorporated into the homeowners design brief.
The redesign process will take approximately 14 to 18 months – the fit out process and then 12 months of showcasing the home to media and industry events.
Entries close on February 15 and details on the contest can be found <a href="https://design-apart.com/nyc-loft/sydney/" target="_blank">here</a>.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Sydney homes sought for $1m remodel

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Werribee South’s integrated marina and residential master-planned community Wyndham Harbour is soon to release its second apartment building, following the sell out of Marina Quays.
The Lighthouse - designed by SJB architects - will feature 137 apartments over five levels in a white façade at the end of Quay Boulevard.
“From the exterior individual apartments are not easily recognized – undulating rhythm of the structure both horizontally and vertically celebrates a sculptural composition over one of order,” says SJB director Oliver Mayger.
“The linear balustrade elements, slip in behind and alternate between sold and clear glazed materials, this format offers different views to the park and the distant CBD,” says Mayger.
On offer will be one-, two- and three-bedroom apartments and a penthouse.
The sold out Marina Quays apartment is made up of 104 apartments and 1,000 square metres of retail space, with an expected completion date of May this year.
Wyndham Habour is set to be Victoria’s largest marina upon completion, featuring 1,000 marina berth, house and land packages, two beaches, 10 hectares of landscaping with cycling and walking trails and a cosmopolitan centre.
Some 142 land lots have been secured.
<a target="_blank" href="https://mce_host/news@propertyobserver.com.au">news@propertyobserver.com.au </a>
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Buyers to navigate towards Wyndham Harbour's The Lighthouse

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QM Properties has taken over the Doonella Noosa development from Stockland, which has secured 14 off-the-plan sales since launching to the public in December.
“We have always enjoyed a strong presence in Noosa, and have been looking for more opportunities there,” says QM Properties sales manager Damien Ross.
“Due to the Council population cap and restrictions on development, land is difficult to find in Noosa,” says Ross.
Only 12 home sites remain with land lots priced from $225,000 and house and land packages priced from $450,000 to $500,000 for a four-bedroom home.
Lots range in size from 600 square metres to 900 square metres and are surrounded by bushland and wildlife.
Residents will have access to walking trails, an outdoor meeting space and an organic community garden.
QM Properties says majority of sales have been to young families who are attracted to the Noosaville primary school and the catholic college in the estate.
The median house price in <a target="_blank" href="/news">Noosaville</a> is $715,000, a 7.1% change in the past year, according to RP Data.
news@propertyobserver.com.au
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QM Properties takes the reins for Stockland's Doonella Noosa development

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All 19 lots released in Places Victoria’s eco-industrial business park Logis in Dandenong were snapped up within a week of going to market, totaling $19.5 million.
The 154-hectare former Dandenong treatment plant site will become an industrial estate, generating around 5,000 jobs.
Places Victoria acting chief executive officer Peter Armstrong says 25 companies from Australia and overseas had competed for the land, including some who were vying for multiple lots.
Successful bidders included Australia’s largest tool distributor, Hobson Engineering.
Places Victoria’s residential estates in Epping and Officer also recorded strong growth, with sales in the final quarter up 100% on the previous year.
“We had to swallow a bitter pill last year, but the decisions made in early 2013 have resulted in a more focused and streamlined organisation that is demonstrating it can be a sustainable business entity,” says places Victoria acting chief executive peter Armstrong.
“Places Victoria’s mandate is to deliver urban renewal projects on behalf of the government and when possible to create opportunities for the private sector.
“Logis is a perfect example of this – it’s expected to attract more than $480 million in private sector investment by the time it’s finished from a public investment of less than half that,” says Armstrong.
Additional lots in stages six and seven will be released to the market early this year.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Places Victoria's Dandenong business park Logis a sell-out

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>.

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Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[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.

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<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[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;

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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.

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.

<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" />

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, rooftop open space 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.

Ceerose, founded by Edward Doueihi in 1998, has become one of Sydney's more active apartment developers, 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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