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Savills Australia have successfully managed the sale of two Darwin CBD office buildings which have been acquired by Melbourne based property fund Peak Equities for $50 million.
Jack Morrison and Peter Chapple of Savills Capital Transactions introduced the buyer who purchased both Darwin’s Old Admiralty Towers, located at 68 The Esplanade (pictured above), and the nearby Heritage building.
They worked in conjunction with Seth Chin from Darwin’s Chin Associates to sell the assets.
The buildings were both previously a part of the Jalouise property portfolio.
Jack Morrison said, “combining our knowledge of active buyers with Seth’s knowledge of the unique Darwin market yielded a great result for both parties."
Peak Equities currently portfolio is valued at near $250 million comprising nine syndicated trusts operating across retail, industrial and office sectors.
These assets' are the group's first purchase first Darwin purchasse.
Both properties are currently 100 percent leased with a mix of government and established tenants in place/
They have staggered lease expiries and an average remaining lease term of more than 12 years.
“Our client was largely attracted to the opportunity due to the prominent Esplanade location and Darwin’s strong economic growth potential,” Mr Morrison stated.
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j.ballantyne1990-6AQqhLzZaK

Savills complete sale of two Darwin CBD office buildings for $50 million

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A beachfront Gold Coast penthouse has been listed for sale with a price guide of $9.75 million, which has been recently adjusted down to $8,985,000 price.
The Main Beach sky home has been listed by Michael Kollosche from Kollosche Prestige Agents Broadbeach. 
Designed by acclaimed architect, Bayden Goddard, the 705 square metre home situated at<a href="https://www.realestate.com.au/property-apartment-qld-main+beach-130164622" target="_blank"> 3533 Main Beach Parade</a> comprises of four bedrooms, open plan living and dining setting against Pacific Ocean vistas, gourmet kitchen with marble island bench, and open plan study. 
<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/2018/12/21/main%20beach%202.jpg" alt="">
It also comes with travertine tiled terrace, marble powder room, private pool, and three car parks. 
Other features include Bayden Goddard, and boasting flawless marble, limestone, travertine, timber and stone finishes throughout.
It is close to the upmarket Marina Mirage and Tedder Avenue café and restaurant precinct.
The suburb's median unit price sits at<a href="/developments/main-beach-qld-4217"> $712,500</a>, according to CoreLogic.
<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/2018/12/21/main%20beach%203.jpg" alt="">
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Main Beach, Gold Coast penthouse see's its price reduced from $9.75 million

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GUEST OBSERVATION
One of the most important lessons to come out of last week’s banking royal commission is one of the least likely to grab attention, certainly not in the way <a href="https://theconversation.com/defence-mechanisms-why-nab-chairman-ken-henry-lost-his-job-111182" target="_blank">the resignation of NAB chair Ken Henry did</a>.
It’s that, in the view of Royal Commissioner Kenneth Hayne, when all is said and done the complex patchwork of rules that regulate financial institutions can be boiled down to six simple requirements:
<ul>
<li>
obey the law
</li>
<li>
do not mislead or deceive
</li>
<li>
act fairly
</li>
<li>
provide services that are fit for purpose
</li>
<li>
deliver services with reasonable care and skill, and
</li>
<li>
when acting for another, act in their best interests
</li>
</ul>
Yet, under our current law, these six principles are expressed in different terms in multiple pieces of legislation that run to thousands of pages and even more regulations, at both state and federal levels.
The labyrinth is arguably unnavigable for even sophisticated parties with access to good legal advice.
It wholly fails as a way of communicating the law to ordinary people, the businesses and citizens who are bank customers. It also provides an endless supply of “stall and evade” opportunities for wrongdoers who can clog up the courts with technical and strategic debates over how to interpret the labyrinth.
Legislative porridge
Even the best-intentioned plaintiff or prosecutor can end up pleading every possible permutation of the law to try and cover all bases.
The inevitable result is to “<a href="https://www.propertyobserver.com.au/http://www.austlii.edu.au/au/cases/cth/FCA/2016/1343" target="_blank">delay the proceeding and increase legal expenses</a>”, in the words of a recent Federal Court judgement.
Take the core prohibition of “misleading or deceptive” conduct.
Research conducted at Melbourne Law School finds the same prohibition in slightly different forms, with different requirements, different defences, and different remedies and penalties in <a href="https://financialservices.royalcommission.gov.au/Submissions/Documents/Round-6-written-submissions/POL.1000.2000.0030_0001.pdf" target="_blank">more than 30 pieces of state and federal legislation</a>.
The result has been described by another Federal Court judge as a “<a href="https://www.propertyobserver.com.au/http://www.austlii.edu.au/au/cases/cth/FCA/2012/1028" target="_blank">legislative porridge</a>”.
For many Australians it makes the use of the courts to resolve financial disputes with banks and insurance companies simply not possible.
As a result, we have developed a parallel “soft law”, that doesn’t work badly.
The <a href="https://www.ausbanking.org.au/code/banking-code-of-practice" target="_blank">Banking Code of Practice</a> sets out what banks should do and the <a href="https://www.afca.org.au/make-a-complaint/" target="_blank">Financial Complaints Authority</a> resolves disputes.
The Authority’s guiding principle is as simple as could be – that its decision be <a href="https://www.afca.org.au/public/download.jsp?id=6892" target="_blank">fair in all the circumstances</a>.
<img src="https://images.theconversation.com/files/258063/original/file-20190210-174870-dmhgrs.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""> 
<a class="source" href="https://www.afca.org.au/about-afca/rules-and-guidelines/afcas-operational-guidelines/" target="_blank">Australian Financial Complaints Authority Operational Guidelines.</a>
It raises the question of why the law needs to be so complex when the alternative to it doesn’t need to be.
Simplification has to start somewhere
Hayne wants to simplify the law, but he says the overall task is wider.
It will require examination of how the existing law fits together and identification of the policies given effect by the law’s various provisions. Only once this detailed work is done can decisions be made about how those policies can be given better and simpler legislative effect.
Our Australian Research Council Discovery project on <a href="https://findanexpert.unimelb.edu.au/display/grant103207" target="_blank">Rationalising the Law of Misleading Conduct</a> is undertaking precisely this task for the rules about misleading conduct, trying to track how the various laws and regulations overlap and interact with the ancient, evolving and equally complex general laws governing contracts, torts and equitable principles.
This initial “mapping” task requires sustained and expert attention, so much that it might seem beyond governments’ usual attention-spans.
But, faced with the enormity of the task, Commissioner Hayne doesn’t engage in a counsel of despair. Instead, he picks two easier steps that could be done quickly in order to make a real difference.
First, get rid of exceptions, carve-outs and qualifications. An example he uses is the special treatment given to grandfathered commissions, but carve-outs are everywhere.
Reducing their number and their area of operation is itself a large step towards simplification. Not only that, it leaves less room for “gaming” the system by forcing events or transactions into exceptional boxes not intended to contain them.
We should be clear about what is at stake. The rule of law demands that like cases must be treated alike. It follows that exceptions need to be strongly justified. And they haven’t been. Instead, exceptions and carve-outs reflect the lobbying of powerful industry groups concerned to preserve their own self-interest. And in some cases a failure on the part of the drafters to understand how the regime as a whole fits together and works.
The second step is to draw explicit connections in the legislation between the particular rules that are made and the fundamental principles to which they are intended to give effect.
Drawing that connection will have three consequences. It will explain to the regulated community (and the regulator) why the rule is there and, at the same time, reinforce the importance of the relevant fundamental norm of conduct. Not only that, drawing this explicit connection will put beyond doubt the purpose that the relevant rule is intended to achieve.
But a serious concern remains: how to do it without complicating the law further.
It might be time to take the leap and go back to basics: to reduce the legislation to the core principles and leave the detailed explanation of how they work in practice to “soft law” guidelines.
On how this might look, see our contribution <a href="http://press-files.anu.edu.au/downloads/press/n2641/pdf/ch27.pdf" target="_blank">Statutory interpretation and the critical role of soft law guidelines in developing a coherent law of remedies in Australia</a> in R Levy et al (eds) “New Directions for Law in Australia: Essays in Contemporary Law Reform”.<img src="https://counter.theconversation.com/content/110509/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;">
Elise Bant is Professor of Law, University of Melbourne
Jeannie Marie Paterson is Professor, University of Melbourne
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/understanding-hayne-why-less-is-more-110509" target="_blank">original article</a>.
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Understanding Hayne: Why less is more when it comes to simplifying banking law

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GUEST OBSERVATION
The Netherlands consumer-pays fee-for-service mortgage broking model recommended by Commissioner Hayne in the Banking Royal Commission has proved to be a huge failure for consumers in the Netherlands since its introduction in 2008.
The only winners are the big banks.
According to a 2017 report, entitled Banking in the Netherlands, obtained by Loan Market Group, the total number of banks in the Netherlands decreased from 99 banks in 2007 (when the market still operated on an upfront and commission model) to just 44 banks in 2017 (nine years after fee-for-service was introduced).
Mortgage broker commissions from lenders were completely banned in 2013, after being phased out from 2008.
<a href="https://www.statista.com/topics/3442/the-banking-sector-in-the-netherlands/" target="_blank">The Statista report</a> found the size of the banking sector as a whole in the Netherlands decreased by almost half. The total number of bank offices was approximately 3,400 in 2008. In 2016, this was less than 1,700.
The report categorised the Dutch banking sector as “one of the most concentrated in Europe”.
Additionally, Moody’s Investment Services 2018 report found one of the biggest Netherland institutions ABN Amro’s net interest margins have grown steadily since 2010.
In comparison, the Australian marketplace net interest margins of major and regional banks have been on a steady decrease since brokers were introduced into the sector in the mid-1990s, according to the Reserve Bank of Australia.
Loan Market Group believes this data demonstrates a pronounced lack of competition in the Netherlands, significantly contracting the banking sector, with mortgage brokers no longer having the ability to introduce borrowers to numerous products offered by the smaller banks and lenders.
This just further demonstrates the Netherlands model is a terrible outcome for Aussies.
The model has resulted in fewer lenders and fewer options for Dutch consumers. I fail to see how this is the best option for our marketplace.
The model that has been held up as the roadmap for the Australian mortgage market has been proven to result in less competition and the highest concentration of big banks in Europe.
This means customers have less choice, pay more fees and will get stuck in a home loan because the cost of changing will be too much as they’ll need to fork out each time they want something changed.
The only guarantee that will result from the Dutch model is that customers will pay more and will be locked into their loans.
Some of the key findings and insights from the report include:
●  The Netherlands experienced a massive reduction in the number of lenders from 93 banks in 2008 (when fee-for-service began) to just 44 in 2017.
●  The top five big banks in the Netherlands (including ING, Rabobank and ABN Amro) now control 83.8% of the Netherland’s marketplace.
●  Total number of bank “offices” or branches fell from 3,421 to just 1,619 between 2008 and 2017.
It is very clear the real reason the Big Four Banks in Australia are pushing for the Netherlands model. It will effectively kill off the competition coming from smaller lenders and banks and result in the banks having the lion’s share of the pie again.
This is definitely not the best outcome for customers by any stretch. Not only do customers in the Netherlands have less choice than before the upfront payment was introduced, but they are also paying fees. Fees that Australians don’t currently pay.
It is astounding people have spoken about the Netherlands model with such enthusiasm when we were able to find this solid research very quickly and easily online. It would be nice to think the Commissioner and his team might have done more research than they have, before turning the mortgage industry on its head and recommending a financially detrimental solution for everyday Aussies who are looking for the best home loan solution.
In addition to the reduction in competition, Australian consumers may soon have to pay a fee to get a mortgage. That may well be an option the first time they look for a loan, but it will also be payable if they want to refinance, or change their loan arrangement. Unless the savings are really compelling, switching won’t be worth their while financially, leaving them languishing with whatever product they already have.
As in the Netherlands scenario, it feels very much like the banks are trying to reintroduce exit fees by stealth, making the idea of switching home loans deeply unpalatable to consumers.
Some may suggest that the banks will reduce their fees accordingly, but what in the last 14-months of Royal Commission hearings would give anyone confidence that the banks do anything but look after their shareholders?
Background to the mortgage industry in the Netherlands:
●  In 2008, the Netherlands Ministry of Finance slowly started changing the payable upfront and commission amounts. Starting with 80% and 20% spilt then to 70% and 30% and then to 50% and 50%.
●  In 2011 the regulator announced its attention to completely ban commissions by the end of 2012.
●  The ban on mortgage broker commissions came into place at the beginning of 2013.
●  Borrowers now pay a fee-for-service
Sam White is the Loan Market Group Executive Chairman.
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The Netherlands model for mortgages is a complete failure: Loan Market's Sam White

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New home owners in NSW will be better protected, according to the NSW government's recently announced plans to improve the building and construction industry.
Minister for Better Regulation Matt Kean (pictured) said the plan, which includes appointing a Building Commissioner, has been months in the making.
The Building Ministers’ Forum (BMF) commissioned an independent report into the industry in August 2017.
“Professor Peter Shergold AC and Bronwyn Weir spent six months examining building regulatory systems around Australia and delivered a thorough and insightful report to the BMF,” Kean said.
“They found that there are national problems in the construction industry. We’ve taken their findings on board and we’re taking strong action to further protect NSW home owners.”
In response to the Shergold Weir Report, the government will support the majority of recommendations, including requiring that:
<ul>
<li>building designers, including engineers, declare that building plans specify a building that will comply with the Building Code of Australia;</li>
<li>builders declare that buildings have been built according to their plans; and</li>
<li>requiring building designers and builders to be registered.</li>
</ul>
In addition, the NSW Government will appoint a Building Commissioner to act as the consolidated building regulator in NSW, including with responsibility for licensing and auditing practitioners.
The plan will also clarify the law to ensure there is an industry-wide duty of care to homeowners and owners corporations so that they have the right to compensation where a building practitioner has been negligent.
“We’re making tough new laws to ensure buildings meet Australian standards, and to guarantee that people who build and design buildings have the proper qualifications to do so,” Kean said.
“This plan will ensure those who control the risks – building practitioners – are held responsible for their work. People deserve to feel safe in their homes and have confidence that they are buying a quality building.
“The NSW Government is committed to getting these reforms right and will continue to consult with both industry and community stakeholders to make sure we get the best results for home owners.”
Certifier laws were recently strengthened by enacting the Building and Development Certifiers Act 2018, a modern planning system was created under the Environmental Planning and Assessment Act 1979 and unsafe building products banned with the Building Products (Safety) Act 2017.
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NSW government to appoint Building Commissioner following industry reform report 

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The Macquarie Infrastructure and Real Asset (MIRA) has moved to sell parts of the portfolio picked up when nine Hassad Australia aggregations were secured last year.
The deal was estimated to have cost the investment funds about $300 million.
Hassad, part of oil-rich Qatar’s worldwide sovereign wealth investment business, had accumulated a 300,000 hectare Australian property portfolio, but quit the last of those holdings with its sell-off to Macquarie.   
Viridis Ag, MIRA's cropping enterprise, is divesting grazing land.
“These are strategic investment decisions by the two businesses,” said CBRE Agribusiness director, Col Medway, who is marketing the NSW holdings.
“The decision to sell was made because the properties just do not fit the investment mandates and long term plans of each fund, and the vendors recognise there’s keen market demand for well developed, prime quality holdings with scale.”
The listings see Paraway Pastoral offloading 16,000 hectares of dryland and irrigated property in New South Wales.
Paraway Pastroral operates large-scale sheep and cattle enterprises and has a combined landholding of more than 4.4 million hectares.
Expressions of interest for the multi-farm parcels, or individual farms, or their water entitlements are sought by March 7.
The combined Laura Downs and Paddys River parcels are targeting prices in the vicinity of $21 million and $17 million respectively.
The third property, Bundemar Park, is a highly productive, diverse landholding with winter grand production.
Elders real estate general manager, Tom Russo, said Viridis’ Cummins parcel was sure to attract interest from multi-generation Eyre Peninsula farming families needing to expand.
“Buyers are looking for scale,” he told The Land.
Medway said CBRE Agribusiness had a record sales year in 2018.
“You’d be surprised by just how many $10 million buys, or bigger, are being transacted by family farming businesses, and others entering into the game.”
“Each of these landholdings represent an opportunity to secure a significant landholding envied for scale, productive capacity and turnkey capability.”
“The vendor will consider offers for immediate access, following an exchange of contracts, to facilitate the establishment of the purchaser’s desired winter crop program,” Medway added.
“The flexibility of the vendor to consider offers for each aggregation as a whole or as individual properties opens up each aggregation to all sectors of the market, including neighbours, family farming businesses and institutional investors.”
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Macquarie's Paraway divesting parts of Hassad farm acquisition

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The Zagame family has acquired a recently rezoned Abbotsford land parcel of 4,735 square metres for $21 million.
Fitzroys agents Paul Burns and James Lockwood negotiated the sale of 112 Trenerry Crescent on behalf of the Australian Education Union (Victorian Branch) following an expressions of interest campaign.
The site has an existing four-level brick building with a net lettable area of 4,252 square metres, and fronts on to the Yarra River overlooking both Dights falls and Victoria Park, in addition to having views of the CBD skyline.
Burns said 15 offers were received from a mix of local and offshore bidders, predominantly made up of developers, with some partial owner occupiers.
“Bidders had schemes for a mix of office and residential uses for the property, looking to take advantage of the property’s recent rezoning to Mixed Use,” he said.
The AEU had previously used the building as their Victorian headquarters for many years, and held onto the property following their relocation until the rezoning was formalised.
Burns said the strong purchaser interest was driven by the property’s city fringe location and proximity to the burgeoning nearby office markets of Cremorne and Richmond.
The site had views to the Yarra River, Dight Falls, Victoria Park and the Melbourne CBD.
The existing building will be kept and re-used.
“Office vacancies across Melbourne’s city fringe have been tightening to historic lows and businesses are increasingly looking to Abbotsford as the next hotspot for commercial activity,” Burns said.
He said the property offers direct access to trains and buses, the Eastern Freeway and recently upgraded Hoddle Street, and a range of trendy lifestyle options and the scenery of the Yarra River, all within short walking distance.
Lockwood said developers are now looking beyond the busy Cremorne and Richmond markets for their next projects.
Cadence Property Group has lodged plans for a major office development on Victoria Crescent, near the Carlton and United Brewery, and Salta Property Group is undertaking a mixed-use project with office, apartment and build-to-rent components next to its Victoria Gardens shopping centre.
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Zagame family acquires Abbotsford office site from Australian Education Union

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Data released by SQM Research revealed the national residential vacancy rate predictably declined to 2.2% in January, down from 2.5% in December 2018.
SQM had the total number of vacancies Australia-wide declining to 72,574 – some 9,984 fewer properties are now available for rent in December 2018.
All capital cities, except Hobart experienced a decline in their vacancy rates in January with Darwin currently having the highest vacancy rate of all capital cities at 3.8%, down from 0.5% on December’s vacancy of 4.3%.
Although Hobart increased its vacancy rate marginally by 0.1%, it still remains the lowest of all capital cities at 0.5% for January 2019.
Sydney’s vacancy rate, although declining, is still currently the second highest of all capital cities at 3.2% with 22,426 properties available for rent. 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="13%">
City
</td>
<td width="12%">
Jan-2018 Vacancies
</td>
<td width="16%">
Jan-2018 Vacancy Rate
</td>
<td width="14%">
Dec-2018 Vacancies
</td>
<td width="15%">
Dec-2018 Vacancy Rate
</td>
<td width="12%">
Jan-2019 Vacancies
</td>
<td width="14%">
Jan-2019 Vacancy Rate
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Adelaide
</td>
<td valign="bottom" nowrap width="12%">
2,793 
</td>
<td valign="bottom" nowrap width="16%">
1.5%
</td>
<td valign="bottom" nowrap width="14%">
2,383 
</td>
<td valign="bottom" nowrap width="15%">
1.3%
</td>
<td valign="bottom" nowrap width="12%">
2,141 
</td>
<td valign="bottom" nowrap width="14%">
1.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Perth
</td>
<td valign="bottom" nowrap width="12%">
8,909 
</td>
<td valign="bottom" nowrap width="16%">
4.4%
</td>
<td valign="bottom" nowrap width="14%">
6,935 
</td>
<td valign="bottom" nowrap width="15%">
3.4%
</td>
<td valign="bottom" nowrap width="12%">
6,121 
</td>
<td valign="bottom" nowrap width="14%">
3.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Melbourne
</td>
<td valign="bottom" nowrap width="12%">
9,744 
</td>
<td valign="bottom" nowrap width="16%">
1.8%
</td>
<td valign="bottom" nowrap width="14%">
12,619 
</td>
<td valign="bottom" nowrap width="15%">
2.2%
</td>
<td valign="bottom" nowrap width="12%">
10,564 
</td>
<td valign="bottom" nowrap width="14%">
1.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Brisbane
</td>
<td valign="bottom" nowrap width="12%">
11,505 
</td>
<td valign="bottom" nowrap width="16%">
3.6%
</td>
<td valign="bottom" nowrap width="14%">
10,519 
</td>
<td valign="bottom" nowrap width="15%">
3.2%
</td>
<td valign="bottom" nowrap width="12%">
8,911 
</td>
<td valign="bottom" nowrap width="14%">
2.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Canberra
</td>
<td valign="bottom" nowrap width="12%">
569 
</td>
<td valign="bottom" nowrap width="16%">
0.9%
</td>
<td valign="bottom" nowrap width="14%">
829 
</td>
<td valign="bottom" nowrap width="15%">
1.3%
</td>
<td valign="bottom" nowrap width="12%">
594 
</td>
<td valign="bottom" nowrap width="14%">
0.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Sydney
</td>
<td valign="bottom" nowrap width="12%">
15,775 
</td>
<td valign="bottom" nowrap width="16%">
2.3%
</td>
<td valign="bottom" nowrap width="14%">
25,177 
</td>
<td valign="bottom" nowrap width="15%">
3.6%
</td>
<td valign="bottom" nowrap width="12%">
22,426 
</td>
<td valign="bottom" nowrap width="14%">
3.2%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Darwin
</td>
<td valign="bottom" nowrap width="12%">
941 
</td>
<td valign="bottom" nowrap width="16%">
3.1%
</td>
<td valign="bottom" nowrap width="14%">
1,317 
</td>
<td valign="bottom" nowrap width="15%">
4.3%
</td>
<td valign="bottom" nowrap width="12%">
1,193 
</td>
<td valign="bottom" nowrap width="14%">
3.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
Hobart
</td>
<td valign="bottom" nowrap width="12%">
126 
</td>
<td valign="bottom" nowrap width="16%">
0.4%
</td>
<td valign="bottom" nowrap width="14%">
121 
</td>
<td valign="bottom" nowrap width="15%">
0.4%
</td>
<td valign="bottom" nowrap width="12%">
144 
</td>
<td valign="bottom" nowrap width="14%">
0.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="13%">
National
</td>
<td valign="bottom" nowrap width="12%">
74,113 
</td>
<td valign="bottom" nowrap width="16%">
2.3%
</td>
<td valign="bottom" nowrap width="14%">
82,558 
</td>
<td valign="bottom" nowrap width="15%">
2.5%
</td>
<td valign="bottom" nowrap width="12%">
72,574 
</td>
<td valign="bottom" nowrap width="14%">
2.2%
</td>
</tr>
</tbody></table>
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.
SQM considers this to be a superior methodology compared to using a potentially incomplete sample of agency surveys or merely relying on raw online listings advertised. 
The managing director of SQM Research, Louis Christopher said, the decline in vacancies is expected in January as December usually has a higher seasonal listings.
"It still appears to be a tenants market in Darwin and Sydney where vacancy rates are high at 3.8% and 3.2% respectively," he said. 
"Going forward, we expect another seasonal decline in vacancies for the month of February.
"However for the year our expectation is national vacancy rates will rise at the national level, driven by rises in Sydney." 
The decline in vacancies saw asking rents for houses in capital city increase 0.2% over the month to 12 February 2019 to $560 a week.
Unit asking rents also increased 0.7% to $442 a week. Over the year, asking rents for houses declined 0.4% while unit asking rents remained steady.
Hobart recorded the highest weekly rental increase of 4.8% for units but house weekly rents declined 0.6% declined. Just 12 months ago, Hobart’s house asking rent had increased by 4.3%.
Sydney, Melbourne and Perth recorded marginal increases in both house and unit asking rents over the month to 12 February 2019.
Whilst Darwin, Brisbane and Adelaide recorded declines in weekly rents for both houses and units.  Canberra’s house rentals increased 1.6% but unit asking rents declined 1.7%.
<a href="https://www.propertyobserver.com.au/images/2019/2/12/sqm%201.jpg" target="_blank">Click here</a> to enlarge:
<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/2019/2/12/sqm%201.jpg" alt="">
SQM's <a href="http://www.sqmresearch.com.au/graph_vacancy.php?region=nsw::Sydney&amp;type=c&amp;t=1#terms" target="_blank">methodology page</a> explains how SQM’s vacancies are compiled.
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Vacancy rates decline in January across most capital cities

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<div class="tg-tlc-storybody_intro">
National Australia Bank economists no longer forecast a 2019 rate rise from the Reserve Bank of Australia.
The bank has join those who believe there possibly could be a rate cut before the end of this year.
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The economists said they no longer expected the RBA to hike rates in late 2020, a prediction they made as recent as late 2018.
"We ... now expect the cash rate to remain on hold over the forecast horizon," the bank's economists advised in a research note released today.
"While our central case is for the cash rate to remain on hold, based on the balance of risk, the next move could well be down - potentially as soon as H2 2019."
The RBA has kept rates at 1.5 per cent since August 2016, but last week itself shifted from a bias toward rate hikes to a more neutral stance.
"In particular, we see ongoing slow wage growth, falling savings rates, high debt levels and falling house prices as ongoing headwinds," NAB said in a note authored by chief economist Alan Oster, global head of research Ivan Colhoun and senior economist Gareth Spence.
"Our forecasts raise the question as to why the RBA would not move to give the economy some further support," they said.
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NAB sees no 2019 cash rate rise, and possibly the next move down

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A freestanding Coles Supermarket in the Yarrabilba master planned community has listed for sale.
Located in the Brisbane-Gold Coast growth corridor, it has been announced for sale via expressions of interest by JLL’s Jacob Swan and Sam Hatcher. 
Opened in late 2017, Coles Yarrabilba comprises a 3,532 sqm supermarket set across a 16,730 sqm site. 
The retail accommodation set across a  single level with 214 parking spaces.
It is under an initial 15 year net lease term with four 10-year options to Coles. 
JLL’s Jacob Swan said, “Investors are attracted to this style of convenience/non-discretionary retail asset... and as a result, over $340 million of supermarket retail assets transacted in 2018, the second highest year on record.” 
“We continue to see unsatisfied demand from investors for this style of product and as a result expect the sale of Coles Yarrabilba to be very competitive."
The Main Trade Area is forecast to increase from 21,600 residents in 2018 to 44,220 residents by 2031, reflecting a growth rate of 5.7% p.a, according to Location IQ.
 
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New freestanding Coles in Yarrabilba listed for sale

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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