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Rental prices continue to grow in Victoria as the cycle of low vacancy rates continues.
The <a href="https://reiv.com.au/policy-resources/latest-news/no-ease-for-victorian-renters-as-vacancy-rates-stay-low" target="_blank">monthly rental data</a> from the REIV shows median rental house prices have shot up across Melbourne by $10, with units climbing also by $10 since October 2019.
This follows a vacancy rate of 2.2% for Melbourne last month.
<img src="https://www.urban.com.au/images/2019/12/16/REIV%20vacancy%20rates%201.JPG" alt=""> <img src="https://www.urban.com.au/images/2019/12/16/REIV%20vacancy%20rates%202.JPG" alt="">
REIV President Leah Calnan said a lack of housing has led to renters paying a premium.
Ms Calnan said, “healthy vacancy rates should be around 4%; most of the state is sitting at 1 or 2%, increasing demand has led to rental price climbing.”
With changes to the Residential Tenancy Act coming in next year; landlords remain confused and cautious about losing control over their investment, she warned. 
“Our members have reported to us that many homes have been sold or are being kept off the market, leading to a surge in housing demand.”
“The State Government needs to do more to work with landlords and encourage them to rent out their investment homes.”
“New rental homes are being leased out in record time, therefore more owners should be encouraged to put their property on the rental market," Ms Calnan said.
The REIV has had a working committee analyse the proposed Residential Tenancies Regulation in great detail and has made an official submission to the State Government. “The legislation takes control away from property owners; many landlords are nervous about changes to the investment property they worked so hard to purchase. If rental housing stocks are impacted further, this legislation will make it harder for a tenant to get a rental home.” “If rental shortages continue to worsen, we have great concerns that the most vulnerable in our society will suffer, many families who are unable to obtain a rental home will be forced onto the streets, placing more pressure on welfare groups and charities.”
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j.ballantyne1990-6AQqhLzZaK

REIV says Victoria's vacancy rates are far from "healthy"

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A three bedroom North Booval, Queensland townhouse has sold for $165,000.
It was listed with an asking price of $175,000.
The marketing material described it as a "perfect home base for travellers or downsizers or tenant ready investment opportunity."
Gai Flynn of First National Real Estate held the listing.
Situated at <a href="https://www.realestate.com.au/property-townhouse-qld-north+booval-129750514" target="_blank">90/50 Gledson Street, North Booval</a> the property is made up of three bedrooms two bathrooms and a single garage.
Set on 130 sqm, every bedroom has a ceiling fan, vertical blinds and built-in wardrobes.
Featuring a concreted alfresco outdoors plus shady shrubs for privacy.
Located within 'The Complex' which has a swimming pool and BBQ facilities available for residents, it is 1.2 kilometres from the Bundamba train station.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median price for a house in <a href="/developments/north-booval-qld-4304">North Booval</a> is $279,500 according to CoreLogic.
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North Booval, Queensland mortgagee townhouse sold below asking price

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Mayfair Iconic Properties has released its initial plans for upgrades to the Dunk Island Spit.
It suggests the plans are the first step in its plans to reinstate Dunk Island and the greater Mission Beach area as a premier tourism destination.
Mayfair CEO, Stuart Duplock, said, “our team is committed to activating Dunk Island for locals and tourists as part of our broader plans to breathe life back into the Mission Beach economy. The new Spit bar will provide people the opportunity to enjoy a meal and drink accompanied by one of the best views in the world over the iconic Dunk Island Spit.”
For the design of the area, Mayfair Iconic Properties is working with Port Douglas-based architectural firm Hunt Design, Cassowary Coast Regional Council and environmental consultants, among others.
<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/2019/12/16/Dunk%20Island.jpg" alt="">
Mayfair Iconic Properties announcement comes following its selection as the preferred tenderer by the Cassowary Coast Regional Council for the 30-year lease of the Dunk Island Spit.
Mr Duplock said that he expects that the upgrades will be complete and the Spit be fully operational in time for the beginning of the tourist season in June 2020.
Mayfair Iconic Properties previously announced it has purchased over 200 properties on the mainland including the former Dunk Island Resort.
Final plans for the Spit are subject to council approval.
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Mayfair releases plans for Dunk Island Spit upgrade

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The Redcape Group has exchanged contracts to divest the Royal Hotel, Granville in Sydney for $51 mllion representing a 6.25% premium to book value.
Simultaneously Redcape announced that it has exchanged contracts to acquire the Kings Head Tavern, South Hurstville (pictured above) for $27 million.
Notably the vendor of of the Kings Head Tavern was also the purchaser of the Royal Hotel, Granville (pictured below).
Redcape CEO Dan Brady said, "these transactions are consistent with Redcape’s strategy of portfolio optimisation and demonstrates our continued focus on acquiring venues where we can increase value by enhancing their operations and applying our refurbishment capability."
"The net sale proceeds will reduce borrowings, strengthen our balance sheet and provide the Group with significant debt capacity to pursue other growth opportunities,” he added.
<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/2019/12/16/Redcape%20Royal%20Hotel%20Granville.jpg" alt="">
The completion of both transactions remain conditional to precedents including a financing condition with settlement anticipated to occur before March 2020.
Recent 2019 Redcape transactions include the divestment of St George Hotel, Belmore for $47.1 million which settleed on 16 December 2019 and the acquisition of the Eden Brewhouse in Redbank Plains for $11.5 million.
The Eden Brewhouse transaction settled on 2 December 2019.
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Redcape sells Royal Hotel, Granville and purchases Kings Head Tavern, South Hurstville

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A former hotel-turned-commercial office building in Carlton has sold for $6.8 million.
It is the first and only sale on the iconic Lygon Street strip for 2019
Colliers International’s Daniel Wolman, Oliver Hay and Dave Walker and MMJ Real Estate’s Joel Wald were appointed to auction the 659 sqm double storey corner freehold at 186-190 Lygon Street.
Their price expectations were around the $6 million mark.
“A land rate of over $16,000/sqm is exceptionally strong for this precinct and a recent record if you consider the undevelopable rear laneway which is on title,” Mr Wolman said.
Mr Walker said the prime location, directly opposite the leafy Argyle Square, and within walking distance from the University of Melbourne and RMIT, was a key selling point.
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Former Lygon Street Hotel turned office building sold for $6.8 million

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A two bedroom one bathroom Hermit Park mortgagee unit has sold for $120,000.
The sale marks a $86,000 reduction on its previous sale price.
Dayne Watson and John Bowen of First National held the listing.
Situated at <a href="https://www.realestate.com.au/property-unit-qld-hermit+park-131134566" target="_blank">1/18 Armstrong Street</a>, it is part of a six apartment complex.
Set on 55 sqm, the property comes with a lockup garage.
Last sold for $206,000 the property transacted in 2008.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median price for a unit in <a href="/developments/hermit-park-qld-4812">Hermit Park</a> is $125,000, according to CoreLogic, which calculate its annual change in median price over the past 10 years as -3.6%.
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Hermit Park, Queensland mortgagee apartment sold for $85,000 loss

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EXPERT OBSERVER
On Monday the Australian government will release the Mid-Year Economic and Fiscal Outlook (MYEFO). This will – as required by <a href="https://www.legislation.gov.au/Details/C2012C00230/Html/Text#_Toc317146004" target="_blank">the Charter of Budget Honesty</a> – provide an update on the key assumptions made in this year’s budget, and track the implications of decisions made since the budget for the projected surplus.
There are two things you can count on about MYEFO.
First, the government will have to pare back its forecasts for economic growth, wages growth and employment growth.
Second, no matter what the economic reality is, the forecast for a budget surplus will remain.
The government has made economic management – as measured by the rather dubious criterion of budget balance – the central plank of its electoral strategy. As the Australian National University’s 2019 <a href="https://australianelectionstudy.org/" target="_blank">Australian Election Study</a> revealed, voters preferred the government’s economic policies to Labor’s by a wide margin (47% to 21%, with 17% thinking there was no difference). On the management of government debt, the margin was 44% to 18%.
But the <a href="https://www.rba.gov.au/snapshots/economy-indicators-snapshot/" target="_blank">economy isn’t doing very well</a>. GDP annual growth is 1.7%, not the 2.75% <a href="https://www.budget.gov.au/2019-20/content/overview.htm" target="_blank">forecast in the budget</a>. The unemployment rate is 5.3%, compared to the forecast of 5.0%. Wage growth is 2.2%, not the 2.75% forecast.
<h2>Iron ore supplements</h2>
The forecast budget surplus for the fiscal year to June 2020 will be made to hang together, thanks to a higher-than-forecast iron ore price.
That price – which determines the dollar value of Australia’s biggest export and hence the tax revenue it generates – is not reflected in the GDP figure, which only takes into account volumes.
The iron-ore price is now <a href="https://tradingeconomics.com/commodity/iron-ore" target="_blank">US$92.50 a tonne</a>. The budget assumed the average price would be $US88 for the 2020 budget year, thanks to a reduction in the international supply of iron ore caused by <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-02-12/iron-ore-price-explainer-after-mining-dam-collapse/10800698" target="_blank">a tailings dam bursting</a> in January at the Córrego do Feijão mine near the town of Brumadinho in southeastern Brazil.
<iframe src="https://www.youtube.com/embed/sKZUZQytads?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe>
The dam’s collapse released a tsunami of sludge that destroyed farms, houses, roads and bridges, and killed 272 people.
Ensuing mine shutdowns reduced iron ore output from operator Vale (the world’s biggest iron ore miner) by about a third. This in turn led to the price of iron ore this year being very high, as the following chart illustrates.
<hr>
<a href="https://images.theconversation.com/files/306498/original/file-20191212-85391-1v12glu.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/306498/original/file-20191212-85391-1v12glu.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Iron ore price (US$/MT) <a class="source" href="https://tradingeconomics.com/commodity/iron-ore" target="_blank">tradingeconomics.com</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-sa/4.0/" target="_blank">CC BY-NC-SA</a>
<hr>
The Australian government sensibly assumed the Brazilian mine would come back online and the ore price would revert to $US55 per tonne by March 2020.
But just think about the 2020-21 fiscal year. The <a href="https://www.budget.gov.au/2019-20/content/bp1/download/bp1_bs7.pdf" target="_blank">government’s own sensitivity analysis</a> shows for the full 2020-21 budget year a difference in the iron ore price of US$10 a tonne translates to a A$3.7 billion difference in the budget bottom line.
That has helped this year, but it also shows how dependent the budget’s relatively small A$7.1 billion “underlying cash balance” is on a commodity price that’s out of our control.
Yet, given the political non-negotiability of the surplus, we can expect assumptions that stretch credulity to maintain a surplus forecast.
<h2>Some action?</h2>
This is all against a backdrop of calls for fiscal stimulus from the governor of the Reserve Bank of Australia, the Business Council, every mainstream economist and <a href="https://www.afr.com/policy/economy/ceos-call-for-fiscal-stimulus-20191209-p53i7y" target="_blank">recently Australia’s top chief executives</a>.
But any stimulus meaningful enough to boost the ailing economy would blow the budget surplus. And the assumptions have already been stretched to breaking point, so there’s very little room for the government to manoeuvre.
The government will probably announce some sort of “investment allowance” – where companies get a modest tax break for specific types of investments in the short term. As I <a href="https://www.afr.com/policy/economy/what-we-should-do-about-the-gdp-numbers-20190904-p52nw9" target="_blank">have argued before</a>, this will do something to boost investment and the economy generally, but not nearly as much as a full-scale reduction in the company tax rate to 25% for all businesses.
But the government can’t afford to do a proper tax cut because of its devotion to a wafer-thin surplus.
<h2>The danger of too little action</h2>
In the end, what the government ends up announcing will really be an allocation of responsibilities. It will determine how much of the work of economic recovery it will do itself, and how much it will want to palm off to the Reserve Bank.
The downside of the former is losing the budget surplus.
The downside of the latter is that the Reserve Bank will have no choice but to cut the cash rate to 0.25% in early 2020 and then embark upon a bond-buying program – i.e. “quantitative easing” or “QE”.
 
As even Reserve Bank governor Philip Lowe has himself admitted, more aggressive monetary policy brings with it the (further) risk of asset-price bubbles and financial instability.
Right now the government is putting all its chips on the surplus. Will that turn out to be a good bet? Time will tell.
2020 will reveal much about the future of the Australian economy and whether we manage to escape dramatic problems like a recession.
We live in interesting times – but perhaps more in the “Ancient Chinese curse” kind of way than any of us would like.<img src="https://counter.theconversation.com/content/128705/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">Richard Holden</a>, Professor of Economics, <a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/vital-signs-australias-wafer-thin-surplus-rests-on-a-mine-disaster-in-brazil-128705" target="_blank">original article</a>.
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Australia’s wafer-thin surplus rests on a mine disaster in Brazil

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GUEST OBSERVATION
I was in Switzerland recently and discovered that they haven’t had any landfill since the early 2000s, because all of their waste is either recycled or incinerated to produce electricity. How “green” is it to incinerate waste in order to produce electricity? Is it something New Zealand should consider, so that 1) we have no more landfill, and 2) we can replace our fossil-fuel power stations with power stations that incinerate waste?
Burning rubbish to generate electricity or heat sounds great: you get rid of all your waste and also get seemingly “sustainable” energy. What could be better?
Many developed countries already have significant “waste-to-energy” incineration plants and therefore less material going to landfill (although the ash has to be landfilled). These plants often have recycling industries attached to them, so that only non-recyclables end up in the furnace. If it is this good, why the opposition?
Here are seven reasons why caution is needed when considering waste-to-energy incineration plants.
Stifling innovation and waste reduction
<ol>
<li>Waste-to-energy plants require a high-volume, <a href="http://www.seas.columbia.edu/earth/wtert/sofos/Rodriguez_thesis.pdf" target="_blank">guaranteed waste stream</a> for about 25 years to make them economically viable. If waste-to-energy companies divert large amounts of waste away from landfills, they need to somehow get more waste to maintain their expensive plants. For example, <a href="https://www.thelocal.se/20181112/sweden-imports-british-waste-to-heat-homes-but-wheres-the-post-brexit-solution" target="_blank">Sweden imports its waste from the UK</a> to feed its “beasts”.</li>
<li>The waste materials that are easiest to source and have buyers for recycling - like paper and plastic - also produce most energy when burned.</li>
<li>Waste-to-energy <a href="http://knowledgeauckland.org.nz/assets/publications/TR2019-009-CBA-on-waste-diversion-from-landfill-homes-land-community-Auckland.pdf">destroys innovation</a> in the waste sector. As a result of China not accepting our mixed plastics, people are now combining plastics with asphalt to make roads last longer and are making fence posts that could be replacing treated pine posts (which emit copper, chrome and arsenic into the ground). If a convenient waste-to-energy plant had been available, none of this would have happened.</li>
<li>Waste-to-energy <a href="http://knowledgeauckland.org.nz/assets/publications/TR2019-009-CBA-on-waste-diversion-from-landfill-homes-land-community-Auckland.pdf" target="_blank">reduces jobs</a>. Every job created in the incineration industry removes six jobs in landfill, 36 jobs in recycling and 296 jobs in the reuse industry.</li>
<li>Waste-to-energy works against a circular economy, which tries to keep goods in circulation. Instead, it perpetuates our current make-use-dispose mentality.</li>
<li>Waste-to-energy only makes marginal sense in economies that produce coal-fired electricity – and then only as a stop-gap measure until cleaner energy is available. New Zealand has a green electricity generation system, with about 86% already coming from renewable sources and a <a href="https://www.beehive.govt.nz/release/nz-embracing-renewable-electricity-future" target="_blank">target of 100% renewable by 2035</a>, so waste-to-energy would make it a less renewable energy economy.</li>
<li>Lastly, burning waste and contaminated plastics creates a greater environmental impact than burning the equivalent oil they are made from. These impacts include the release of harmful substances like dioxins and vinyl chloride as well as mixtures of many other harmful substances used in making plastics, which are not present in oil.</li>
</ol>
Landfills as mines of the future
European countries were driven to waste-to-energy as a result of a <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32006L0012" target="_blank">2007 directive that imposed heavy penalties</a> for countries that did not divert waste from landfills. The easiest way for those countries to comply was to install waste-to-energy plants, which meant their landfill waste dropped dramatically.
New Zealand does not have these sorts of directives and is in a better position to work towards reducing, reusing and recycling end-of-life materials, rather than sending them to an incinerator to recover some of the energy used to make them.
Is New Zealand significantly worse than Europe in managing waste? About a decade ago, a delegation from Switzerland visited New Zealand Ministry for the Environment officials to compare progress in each of the waste streams. Both parties were surprised to learn that they had managed to divert roughly the same amount of waste from landfill through different routes.
This shows that it is important New Zealand doesn’t blindly follow the route other countries have used and hope for the same results. Such is the case for waste-to-energy.
There is also an argument to be made for current landfills. Modern, sanitary landfills seal hazardous materials and waste stored over the last 50 years presents future possibilities of landfill mining.
Many <a href="https://www.reuters.com/article/us-environment-waste/tracking-europes-waste-theres-gold-in-them-landfills-idUSKBN1F61YH" target="_blank">landfills have higher concentrations of precious metals</a>, particularly gold, than mines and some are being mined for those metals. As resources become scarcer and prices increase, our landfills may become the mines of the future.<img src="https://counter.theconversation.com/content/128630/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Jeff Seadon, Senior Lecturer, Auckland University of Technology.
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/climate-explained-seven-reasons-to-be-wary-of-waste-to-energy-proposals-128630" target="_blank">original article</a>.
Main photo: Many developed countries already have significant waste-to-energy operations and therefore less material going to landfill. <a href="https://theconversation.com/profiles/jeff-seadon-790599" target="_blank">Jeff Seadon</a>, <a href="http://theconversation.com/institutions/auckland-university-of-technology-1137" target="_blank">Auckland University of Technology</a>  <a href="http://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>.
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Climate explained: seven reasons to be wary of waste-to-energy proposals

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Some investors have sought to move money away from the major capitals and into regional areas, according to a recent Herron Todd White (HTW) residential report. 
The valuation firm took a look at rental yields across the nation. 
The report noted the Southern Highlands has remained relatively popular due to its good proximity to Sydney while still being relatively affordable in selected areas close to the main local townships of Bowral, Mittagong and Moss Vale.
"For example, a basic 1990s three to four bedroom project home in East Bowral can be purchased for between $650,000 and $750,000 in the present market and we are seeing rental returns on these in the mid to high $500 per week range," the valuation firm said. 
Brand new project homes in Renwick and Braemar are a similar range with a slightly higher rental return.
These properties are generally achieving good rental returns as they have lower vacancy rates due to good proximity to the highway and central shopping hubs.
Overall the Southern Highlands would most likely be considered to have good rental yields but nothing exceptional due to also typically benefiting from reasonable capital growth, again off the back of its good proximity to Sydney.
"As far as the best rental yields go, we are mostly seeing these come from properties that have multiple areas of occupancy, whether that be semi- detached duplex or apartment style properties which are seeing yields in the high 5% to 6% region.
"This is mostly due to the lowest rental available in the Highlands region being around the $350 to $400 per week range, so these smaller (two to three bedroom) dual occupancy style dwellings are achieving good rental returns," the valuation firm said. 
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Smaller dual occupancy style dwellings achieving good rental returns in the Southern Highlands: HTW

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It has been a tough year for the retail sector so far in 2019 and the upcoming festive spending will likely do little to change that underwhelming result, according to the latest quarterly retail forecast from Deloitte Access Economics.
It reported that weak wage growth, high debt levels and increasing price pressures are hurting demand, while tax returns and interest rate cuts have yet to fully come through.
However there is some positive news, with 2020 holding more promise.
According to Deloitte Access Economics’ latest quarterly Retail Forecasts subscriber report (Q4 2019):
<ol>
<li>Retail sales in September posted the weakest result since the 1990s recession, falling 0.2% over the year</li>
<li>Retail price pressures remain strong, eating away at volumes growth as households struggle with weak wage growth and high debt levels</li>
<li>Tax offsets and lower interest rates provided limited support to consumer spend to date</li>
<li>The outlook for 2020 is more positive with retail spending expected to grow 2.6% over the year.</li>
</ol>
"Retail sales look to be ending 2019 on a relatively soft note as consumers face increasing budget pressures, said Deloitte Access Economics partner and Retail Forecasts principal author David Rumbens.
"Stagnating wage growth and weak house prices have limited consumer willingness to spend, while tax offsets and interest rate cuts have yet to translate to sales. And with retail prices increasing, spending volumes have taken the hit posting the weakest growth since the 1990s recession.
"The start of the Christmas season looks to hold little cheer for retailers after a tough 2019 to date, and according to Deloitte’s recent Retailers’ Christmas Survey, only 21% (down from 41% last year) of respondents expect a growth above 5% this year."
Retail prices are surging on supply factors
Rumbens said retail price growth has been accelerating over the past year, with prices growing 2.6% in the year to September quarter.
"This is the first time since 2009 that retail prices have consistently outpaced general price pressures in the economy," he said
"Unfortunately for retailers, price growth is not reflective of stronger demand, but rather increasing cost pressures from a weaker Australian dollar, the increase to the minimum wage, and supply disruptions from droughts and floods.
"With retailers being squeezed on both sides from weak sales volumes and increasing costs, margins are coming under pressure."
Looking to 2020 for a turnaround
"We expect to see a much-needed improvement in the drivers of spending, providing the environment for a turn around the weak retail demand profile in 2020," Rumbens said. 
"Stronger wage growth, a reinvigorated housing market and moderating prices pressures are expected to support a much stronger growth outlook in the year ahead."
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Retail market struggling but 2020 looks hopeful: Deloitte Access Economics

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

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

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

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

Staff reporter

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