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Eastern Australian irrigators now appear to be more willing to bear the increased risks and costs of farming in more remote locations if the trade-off is simply a far more secure water supply, according to the recent Herron Todd White (HTW) rural report.
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The property valuation firm suggests the irrigation land market is picking up over in the East Kimberly (Ord River Irrigation Area or ORIA) with building confidence that GM cotton may be the next mainstay crop of the ORIA, particularly into the 7700-hectare State Two (Goomig) expansion area. 
HTW notes that the ORIA sale has significantly superior water security compared to the Queensland sale properties. 
"After three farm sales in the original 15,100-hectare Stage 1 area during 2018 which showed between $10,500 to $11,000 per 'green' hectare (inclusive 17ML/ha pa surface water allocation) there has been another transaction, late in 2019, that confirms such value levels and also confirms the growing belief by farmers from the south-east that cash flow can be underpinned by having irrigation country in the ORIA given its secure water supply.
"At this stage, the details of the transaction remain confidential, but like two of the three buyers in 2018, this buyer is also from down south and was chasing a large, secure supply of irrigation water.
"In the same theme, the Mirriwoong Gajerrong Corporation (MG Corp) who are the second largest landholder in Stage 2 of the ORIA, in its pursuit of commercial agriculture ventures on their land, signed a Memorandum of Understanding (MOU) with cotton giant Cubbie Farming.
"The organisations will work together to investigate the feasibility of cotton by growing trials on around 290 hectares of leased land in the Goomig area. The first crops will be sown by February (2020) and once harvested, later in the year, will be sent to Cubbie’s Dirranbandi-based gin in Queensland 3500km away.
"If trials are successful MG and Cubbie will consider making a joint application to the Northern Australia Infrastructure Facility to secure federal funding to build a cotton gin in Kununurra."
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An industry commissioned feasibility study early in 2019 considered whether a gin, which could cost in excess of $30 million to build, would be financially viable in northern Australia. 
Cubbie Farming report that “diversification” was the impetus for the MOU which has been under negotiation for the last twelve months following an expression of interest process in 2018.
"The drought and low to nil allocations and no reservoir supplies back at Dirranbandi, have reportedly encouraged Cubby to search for diversification opportunities.
"This agreement is further evidence that eastern Australian irrigators (particularly cotton growers) now appear to be more willing to bear the increased risks and costs of farming in more remote locations if the trade-off is simply a far more secure water supply.
"At present, many of these farmers currently have expensive, high quality irrigation assets back in eastern Australia that have nil water available and therefore have significantly reduced cash flow. Cubby Farming would have considered the known cost of transporting raw cotton from Kununurra to Dirranbandie for ginning, however they have committed to this MOU in order to potentially develop more irrigation country in the ORIA to sure up production.
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"Cubby will also have been aware of the debate on water reform in the ORIA which has been ongoing now between the Ord Irrigation Cooperative (OIC) and W.A. Department of Water and Environmental Regulation (DWER) now for nearly four years. 
"What is potentially at stake here is a thirty per cent reduction in the OICs water entitlement. I note that each irrigator in the ORIA has a shareholding (which equates to their annual entitlement) in Water Services Provider: OIC who control water allocation in the valley. The OIC holds a single, large, surface water licence (SWL) by virtue of the Water Services Licensing Act, subsequently water licences and renewals are at the discretion of the DWER. 
"The SWL is for 335 gigalitre per annum which is ultimately sourced from Lake Argyle, Australia’s largest dam (twenty times the volume of Sydney Harbour). The OIC currently distributes its allocation to irrigators through entitlements that equate to 17ML per hectare of their developed farm area. 
"However, the OIC’s licence is currently only in place due to a standing injunction which is preventing DWER from enforcing their 2015 decision (at the time of OIC’s last licence renewal) to reduce the SWL by around 30 per cent back to 246.3 gigalitres per annum."
The OIC objected to the department’s decision and won the injunction to maintain the previous allocation whilst the matter was dealt with under the State Administrative Tribunal (SAT) process.
In its decision to order the 30 per cent reduction, DWER claimed that since gaining its first water licence, at most, the OIC had used only 60 per cent of its entitlement, down to as little as 42 per cent in some years and that under the SAT process, experts from DWER and the Department of Agriculture had worked together with two independent experts to calculate current and future crop requirements and that the new 246.3 gigalitres would be more than ample.
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HTW's  discussions on this matter with the OIC, indicated that there was a possibility that the 30 per cent reduction could be imposed if the 2015 decision to enforce the reduction is upheld in the final SAT hearing scheduled for March 2020. 
"This is therefore likely to have the flow-on impact of reducing entitlements to irrigators. However, the most recent negotiations between OIC and DWER at the SAT hearing in Kununurra in December 2019 were reportedly promising from an OIC/entitlement holder’s perspective. 
"The case put forward by the OIC is based on a mounting argument that DWER are operating outside logic or good government with a ‘use-it-or-lose-it’ mentality which is inconsistent with the National Water Initiative (to which WA is a signatory) and also that the current 335GL allocation gave irrigators the necessary flexibility they need to overcome their remote location and the tyrannies of distance by achieving economies of scale given their current ability (with 17ML/ha pa) to interchange between a variety of crops with different water demands depending on market prices. This is the single greatest advantage that farmers in the ORIA have.
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The value that buyers of irrigation land in the ORIA appear to be placing on high security water combined with comparatively high allocation rates compared to the rest of Australia. 
"The dollar per irrigable hectare rate for properties in the ORIA tends to be toward the lower end of sale rates in Queensland due mainly to the higher underlying land values in the Queensland locations, but this is countered to a large extent, by the value the market is currently placing on the much larger and more secure annual water entitlement in the ORIA (subject to the SAT outcome of course!)."
For instance, if the added value of the water entitlement only is analysed on the basis of a $/hectare rate as well as a ML/hectare basis, then the Queensland sales compared to the ORIA sales show (approximately):
◗ Sale 1 (2018, Central Queensland) $7000/ha (water value only) for a 7ML/ha pa entitlement
◗ Sale 2 (2018, Central Queensland) $11,000/ha (water value only) for a 6ML/ha pa entitlement
◗ Sale 3 (2018, Southern Queensland) $13,300/ha (water value only) for a 11ML/ha pa entitlement
◗ Sale 4, 5 &amp; 6 (2019, ORIA, Kununurra, WA) $7,000/ha (water value only) for 17 to 19.4L/ha pa entitlements.
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j.ballantyne1990-6AQqhLzZaK

Kimberley's irrigation land market picks up in 2020: HTW rural

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The general outlook for the 2020 rural market in far North Queensland is best described as cautious optimism, according to recent Herron Todd White (HTW) rural report. 
The property valuation firm suggests, on the coastal horticulture front, sugar commodity prices are forecast to rise throughout 2020 as a consequence of a supply shortfall in Asia. 
Valuers said, "raw-sugar futures rose 1.13 per cent to 14.32 cents a pound in New York on Tuesday, extending their advance in 2020 to 6.7 per cent. Sugar prices have outstripped other soft-commodity markets so far this year, and have recovered 33 per cent since falling to a trough of 10.76 cents a pound in September."
"Adverse weather conditions for sugar farmers in India and Thailand - the world's largest and fourth largest producers respectively last year - have lifted prices in recent months."
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/2/10/5_Far%20North%20QLD.jpg" alt="" width="429" height="522">
Alternative use industries for coastal horticulture lands may reduce reliance on the traditional industries of sugar cane and bananas, HTW reports. 
The recent purchase of a large sugar cane farm near Mourilyan, south of Innisfail, by International Biomass Solutions (IBS) may signal the start of a viable alternative use for coastal sugar cane farms. 
The purchase is being used as a test plot for the growing of high protein grasses as a cheaper, alternative protein source.
IBS is engaged in the development, growing and processing of various biomass plant varieties in different parts of the world. With the use of innovative technologies of its partners, the company aims to contribute to energy and industry transformation with the ultimate objective of sustainably reducing carbon dioxide output and increasing farmers' income. 
IBS works on biomass projects independently or in close cooperation with growers, cooperatives, local or national governments and industrial stakeholders. 
The ongoing success of quarantine measures for the banana fungal disease Panama Tropical Race 4 is likely to give greater confidence to the banana industry and growers, particularly in the Tully Valley. 
Despite the threat of the disease spreading, it has been well contained to a few small outbreaks on two farms. 
Banana farm sales were limited in 2019, however the success of quarantine measure is likely to lead to more farm transactions in 2020. 
Main photo: <a href="https://www.scienceimage.csiro.au/tag/fruits/i/3712/rural-scene-in-far-north-queensland-melon-crop-in-foreground-banana-plantation-behind-with-pine-forest-and-rainforest-in-the-background-15-kms-north-of-cardwell-qld-/" target="_blank">Rural scene in far North Queensland/ Willem van Aken, 4 August 1998</a>.
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Far North Queensland rural market seen with cautious optimism in 2020: HTW rural

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The 2020 north and north-western Queensland grazing property market is certainly primed for a make or break year ahead, according to the recent Herron Todd White (HTW) report. 
The property valuation firm suggests grazing property market commentary has been mixed.
On the one hand, there are some who are looking to expand in these market conditions on the back of low interest rates and confidence in cattle prices in the next five year.
On the other hand, there are those who believe that once it rains down south, the demand that drove the 2018 market pricing will dissipate, values may languish and market demand and pricing may change within weeks. 
It appears that major demand factors in the recent year have been from southern graziers seeking higher rainfall and grassed areas, southern farmers taking a risk to establish northern dry land farming projects, positive producer sentiment as cattle prices are expected to rise, low interest rates, and Commonwealth acquisitions in the Greenvale and Charters Towers area. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/2/10/4_N%20and%20NW%20QLD.jpg" alt="" width="822" height="441">
Source: HTW rural report, North and North West Queensland
HTW's graph "shows a cross section of 2019 sale parameters, excluding cattle and plant and equipment, that shows the contrast in market pricing between downs and forest country. 
"Downs country values increased from 2018 to 2019, however 2019 really was the year for the forest country types. The market for forest country outshone the downs for once."
"Typically, downs country reflects stronger hectare rates to the forest breeding. Given the strong demand and offerings of mixed to top quality basalt country, the forest country has come through and toppled the downs." 
"Sale hectare rates for mixed quality to top quality basalt country in the Charters Towers and Greenvale areas achieved similar hectare rates than the downs last year", except in the cases of Reedybrook and Marionvale which achieved stronger rates.
The report warns that it "is time to be careful and calculating of the risks in buying or selling cattle stations at this stage of the property market cycle."
HTW observes that a few market comments have started to surface which have not been around since about 2006 to 2008. 
"These were bullish comments then and are indicative of confidence rising now. For some, their investments worked. For others, bullish expansions results in unfortunate situations.
"Perhaps the variance in outcomes arose from calculated due diligence processes for the successful manoeuvres as opposed to emotional acquisitions that stretched all available resources."
For example, a classic comment that has recently surfaced is, "We need to buy Johnny a property now because property values are rising. John is old enough for a property now and we will never get the opportunity again!" 
HTW suggests that the resurfacing of such an emotionally driven reason to buy a property is a reasonable indicator that market sentiment is getting up there. 
However, at this stage, emotionally driven buyer transitions have been minimal. 
Strong southern buyer demand influence last year informed potential local buyers what price point reflected their highest bid point.
This indicates "local buyers are doing their homework at this stage of the cycle. They have calculated the price at which they can be profitable and successful."
HTW notes that "should southern buyer demand dissipate in the ensuring months, vendors too will need to be prudent. 
"It may be that in the absence of southern buyers, asking for a price increase on 2018 values may not achieve a successful sale."
HTW advises, "in this stage of the market cycle, both buyers and vendors need to be prudent."
Overall, with cattle prices looking optimistic and interest rates low, graziers are looking to grow and expand their operations. 
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North and North West Queensland grazing property market primed for a make or break 2020: HTW rural 

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The overriding issue in 2020 in the horticultural sector in Mildura will continue to be the availability of irrigation water, according to the recent Herron Todd White (HTW) rural report. 
The property valuation firm suggests that there will be a widening gap between the balance sheets of irrigators who hold significant water entitlements and those who do not. 
The report was issued in early February before the heavy rains across some of NSW.
"Catchment dam levels have been gradually lowering since the start of 2017 and substantial rainfall is required to replenish supply", HTW reports.
Most irrigators have been able to provide for reduced allocations in the current water year through a combination of carry over and leasing water. 
However, the cost of doing this for another year will be tough for most producers. There is also uncertainty surround whether there will be enough available water to keep all the crops fully irrigated. 
The volume of water required to irrigate permanent horticulture crops in the region is 550 Gigalitres (GL) per annum, according to data from the Murray Darling Basin Authority.
"Of this, around 180 GL will hopefully once again be available from New South Wales Murray High Security Water Licences.
"The remaining 370 GL will need to be found primarily from Victorian allocations and so an allocation in the 2020/21 year of at least 35 per cent for Victoria Murray Zone 7 Water Shares will be required to meet this need. 
"The final picture will depend on the ability to transfer water between the Murrumbidgee, Goulburn and Murray River systems, with the restrictions on inter-valley trade during the past six months exacerbating the current shortage of water in the region."
The HTW rural report anticipates that some producers will inevitably elect to dry off their less profitable crops in 2020, such as white wine grapes, Valencia organs and dried vine fruits and also bring forward the decision to clear order, less productive plantings of other crops. 
HTW also expects a deferral of further expansion plans. 
This will have an impact on contractors, nurseries and irrigation design and supply businesses which all have enjoyed a period of strong activity during the past four years. 
The dried fruits industry will be vulnerable in the event of a reduced area of plantings.
In Mildura, there are currently three dried fruit processors, and the industry will be conscious of the production forecasts for 2021 to see whether there will be sufficient water to keep three processors going. 
Consequently, it appears that values of all horticultural property will plateau as growers take a wait and see approach. However, HTW doesn't expect to see a significant decline in values during 2020. 
The report suggests that commodity prices for many of the region's crops will remain high, which makes leasing water at current levels of over $800 per megalith economically feasible for some.
"Farmers tend to retire at a time of their choosing" so it is expected that "people will try to ride out the current drought rather than seen at a time of reduced demand. 
Unfortunately, the smaller, less efficient growers, particularly those who rely entirely on leasing water, will be vulnerable should dry conditions continue throughout 2020. 
"There are a number of reviews currently occurring into water trade and river management and while everyone hopes that this will result in improved transparency in water ownership and the trading platform, it is unlikely that we will see recommendations that will contribute to any significant reduction in the cost of leasing water."
"The cost will again be entirely governed by the supply of water, in particular whether New South Wales Murray and Murrumbidgee General Security Water Licences receive any allocation." 
Dryland farming success will also be dependent on rainfall leading up to the optimal sowing period in April and May.
"Producers were able to tap into stored soil moisture to grow a crop in 2019, however soils are bone dry at present." 
"Values of farming properties in the Mallee region have been increasing in recent years, however we expect that buyers will be cautious until the season improves."
Dryland farmers in the Mallee realise that they rarely benefit from years of both high yields and high grain prices and that a good season will inevitably coincide with an easing in grain prices.
Meat prices are expected to remain high for several years.
HTW reports that livestock producers in the Western Division are all optimistic about the future of their industry despite feed stays critically short, or even non-existent on some properties.
"All evidence suggests property values will remain firm in Mildura, in part due to an expectation that only limited number of properties will be offered for sale until the drought breaks."
 
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Water availability remains core issue in Mildura in 2020: HTW rural 

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Lismore will experience uncertainty in expected production this year for most rural industries, according to the recent Herron Todd White (HTW) rural report.
The property valuation firm suggests that the weather and subsequent farm production levels are foremost in the minds of farmers at the start of this year. 
The report was issued in early February before the heavy rains across some of NSW.
"Anecdotal reports indicate that there may be a reduced macadamia crop," HTW reports.
"Parts of the sugar industry did not complete 2019 planting and ration crops in some areas have struggled in the dry conditions, the summer crop planting of soya beans has been restricted with the planting window to close in the next few weeks."
"Pasture conditions for beef and fairy farmers are challenging in the dry conditions."
"There has been a slight upswing in world sugar prices, but a long way to go," HTW suggests. 
"Lower production levels and lower farm incomes may limit farm purchase activity." 
"The exception being farms that have rural lifestyle attributes to attract more cashed up purchasers from urban areas."  
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Lismore expected to see lower production levels in 2020: HTW rural

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Though patchy, Tamworth has seen a positive start to 2020, according to the latest Herron Todd White (HTW) rural report.
The property valuation firm suggests, with large areas of New South Wales still affected by the ongoing severe drought, follow up rain and a return to average seasonal conditions was required before a more optimistic outlook can be taken. 
The report was issued in early February before the heavy rains across some of NSW.
"There remains reasonable demand for rural land in New South Wales, particularly from existing land-holders looking to expand and we expect this to continue throughout 2020."
"Values appear to be holding, however it is expected that if the drought shows signs of breaking and there is return to normal seasonal conditions, there may be an influx of listings which has the potential to create an oversupply which may in turn lead to a softening in values over the next 12 months."
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Tamworth values expected to soften in 2020: HTW rural

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A warehouse and showroom property on the Nepean Highway, at Bentleigh in Melbourne’s south-east, has hit the market. 
It comprises a single level, solid brick, 435 square metre facility, with roller door access. 
Zoned Commercial 2, the site has a frontage of just under 11 metres, and a 46 space car park including eight spaces designated for the tenancy.
The property will be sold subject to a short term lease to Carpet Call currently returning $124,140 per annum net. 
Teska Carson’s Luke Bisset and Michael Ludski listed the asset.
"The Nepean Highway is one of Melbourne’s major arterial routes and has in recent years seen a significant rise in residential and commercial development and that is, in no uncertain terms, due to the accessibility it provides as a key transport link to the affluent bayside suburbs,’’ Mr Bisset said. 
Mr Ludski said the open plan layout provided operational flexibility to cater to a number of different uses.
The property will be auctioned March 5.  
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Carpet Call Bentleigh showroom comes onto market

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The South Sydney industrial property market is undergoing an internal makeover, as warehouses are being converted throughout the Alexandria region to higher end functional buildings.
According to Edward Washer, Director, Head of South Sydney, Industrial and Logistics at Savills Australia, given its prime location to the CBD, airport, Eastern Suburbs and Inner west, South Sydney’s typical industrial buildings/sites are being adaptively converted into commercial, retail and residential.
Mr Washer said, “recent examples include 29-31 O’Riordan Street, Alexandria – an industrial building which has undergone a full refurbishment into a retail/commercial precinct and is home to Meat Emporium, Liquor Emporium, and more uniquely, Notaras Seafood restaurant."
“It’s not often a restaurant is built inside a warehouse, but if you look at what The Grounds of Alexandria did to their fit out space, it’s no surprise this is the way of the future for city fringe industrial warehouses, he added"
Another example includes 37-41 O’Riordan Street, Alexandria (City Close) – a traditional modern industrial estate going through adaptive refurb for commercial style tenants due to the demand, with the head offices of Koala Mattresses signing a 5 year lease and Dimeo Cleaning signing a 1 year.
Hayesbury, at 5 Hayes Road, Rosebery, is a traditional older style industrial site that Goodman are refurbishing into a high-end commercial space. Under construction at the moment however no tenants yet to commit.
The first property in 2020 to hit the market for sale is 1 Gillespie Avenue, Alexandria, a circa 20 year old industrial warehouse with a portion refurbished to a creative office, done so by the current tenant and fit out company, Intermain.
According to exclusive sales agents, Edward Washer and Sam Wallace of Savills Australia, the freestanding warehouse is a rarity in this market and is likely to be snapped up by either high net worth privates, property funds or institutions.
Edward Washer, Director, Head of South Sydney, Industrial and Logistics at Savills Australia said, “this is an extremely unique, flagship property and is on trend with what we have seen over recent years; warehouse conversions to office, retail, showroom or higher and better uses/occupiers."
“The strong tenant covenant adds further depth to the property’s appeal, given the reputation of Intermain and quality of the fit out” he said.
The holding, 1 Gillespie Avenue, Alexandria, is for sale via expressions of interest closing April 1 2019.
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South Sydney warehouse conversions perform strongly: Savills

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A Gold Coast property agent who was fined $3,000 and disqualified from holding a real estate licence or salesperson’s certificate for three years has had her appeal dismissed by the Queensland Civil and Administrative Tribunal (QCAT).
The appeal by Sarah Louise Penney-Filippini, of Heather Filippini Island Realty, followed disciplinary proceedings initiated by the Office of Fair Trading (OFT) in 2016.
The tribunal found Ms Penney-Fillipini had failed to meet several requirements relating to her business trust account; and for employing her mother, Ms Heather Filippini, who had been permanently disqualified from the industry since 2009.
On 9 December 2019, QCAT dismissed Ms Penney-Filippini’s appeal and upheld the original decision, confirming the $3,000 fine and disqualification of Ms Penney-Filippini from holding a real estate licence or salesperson certificate from 9 February 2020 until early 2023.
Fair Trading Executive Director Brian Bauer said agents who employed an unlicensed sales person were not only unprofessional but contributed to a breakdown in consumer confidence in the industry.
“By law, agents must conduct themselves and their businesses appropriately and always in the best interests of their clients,” Mr Bauer said.
“A licensed real estate agent employing someone they were well aware had been disqualified from the industry is very concerning.”
Ms Sarah Penney-Filippini had previously been subject to disciplinary action for employing her mother, Ms Heather Filippini, while unlicensed.
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Sarah Penney-Filippini, of Heather Filippini Island Realty, has appeal dismissed

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A former Cleveland real estate agent has been reprimanded and ordered to pay a $10,000 fine by the Queensland Civil and Administrative Tribunal (QCAT) following proceedings initiated by the Office of Fair Trading (OFT).
Pamela Dawn Neilson faced disciplinary action after she failed to notify the OFT that she had become bankrupt, gave false information to the OFT when applying to renew her real estate agent licence, and had continued to sell properties while unlicensed.
In addition to a $10,000 fine, Ms Neilson was also suspended from holding a certificate under the Property Occupations Act 2014 (the Act) for four months.
The Tribunal heard Ms Neilson had held a real estate agent licence since 2005 but failed to inform the OFT when she became bankrupt in October 2015, as is required under the Act.
Ms Neilson’s bankruptcy made her immediately unsuitable to hold a real estate licence however between October 2015 and January 2017 she continued to work in a real estate salesperson capacity, selling 21 properties.
The Tribunal also heard that on 29 September 2016 Ms Neilson lodged a licence renewal application, which included a signed declaration that she was not currently bankrupt. Ms Neilson eventually advised the OFT of her bankruptcy on 16 December 2016.
On 20 December 2019 the Tribunal released its decision in this matter. It found Ms Neilson had conducted herself in a way that was unprofessional but in determining penalty noted she had subsequently self-reported her conduct, had cooperated with the OFT’s investigation and had accepted the disciplinary grounds.
Fair Trading Executive Director Brian Bauer said real estate agents needed to remember the importance of acting in accordance with their licensing requirements.
“Agents must be honest about their circumstances and aware of their obligations,” Mr Bauer said.
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Former bankrupt Queensland estate cops $10,000 fine

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.

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Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[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.

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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.

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The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

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<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

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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.

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.

Staff reporter

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