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Of the 205 Ray White Group auctions that took place last weekend, the biggest attraction was a Sovereign Islands trophy home.
Roughly 30 people gathered outside <a id="LPlnk813899" href="http://ecomms.raywhite.com/collect/click.aspx?u=jRYOrR8N39R+6hBQZ7yXMt0Z3VIjNMZGRhz7zx9p1Xm1+gvAUovcYM8CxElctB6JYMXYMxfWnb8=&amp;rh=ff0046ea7c3b8ec767b0a3c8234898083e4213f8" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">15 Westminster Court</a> where two active bidders fought it out.
A local couple, one of the four total registered bidders, managed to secure the property at $3.1 million.
<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/2019/2/11/Sovereign%20Island%202.jpg" alt="">
Ray White Sovereign Island agent Edin Kara said there was a real buzz around the prestige property with plenty of activity during the four-week long campaign.
“The home hadn’t been on the market for eight years and in that time, there wasn’t much work done on it, so they’ll be looking to renovate to turn this house in to pure luxury."
“The local couple have snapped up arguably the best buy on Sovereign Islands,” she concluded.   Set on 730 sqm the home has 30 m of water frontage.
Comprised of four levels, the six bedroom five bathroom property features, an executive study, a pool, a gym, a wine cellar and comes with a pontoon suitable for a large boat. 
The property has views over the Broadwater, hinterland and Coomera River.
Last sold in 2011 the home traded at $2.559 million.
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j.ballantyne1990-6AQqhLzZaK

Sovereign Islands home sells for $3.1 million

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The mortgagee has listed a brand new Point Cook, Victorian home for auction with a price guide of $600,000 to $650,000.
The house is set for a February 23 auction.
Located at <a href="https://www.realestate.com.au/property-house-vic-point+cook-130344694" target="_blank">12 Bayrise Road</a> the residence is situated inside the Saltwater Coast estate.
Warren Hulstaert and Henry Sun of Century 21 hold the listing.
Set on 400 sqm, the land was last sold in November 2015 for $265,500 after being listed in mid 2015 for $469,500.
DA approval was secured in 2017 for a $250,000 build. 
The four bedroom two bathroom house features, ducted heating, split system downstairs living and master bedroom, roller blinds and room for side access for a boat or caravan.
It is positioned minutes fromr schools, shopping centres, medical centres, public transport and Crocodile Park.
There is a future neighborhood shopping centre with specialty shops is under construction nearby and the Saltwater P-9 College has begun it's first year.
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The median price for a home in <a href="/news">Point Cook</a> is $650,000 according to CoreLogic, which calculate its annual change in median price over the past 10 years as 5.4%.
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Brand new Saltwater Coast, Point Cook home listed by mortgagee

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A three bedroom Sunshine West, Vic townhouse has been listed by its mortgagee.
The home is set for February 16 auction.
It comes with a price guide of $490,000 to $530,000.
David Falcone of Stockdale and Leggo holds the listing.
Situated at <a href="https://www.realestate.com.au/property-townhouse-vic-sunshine+west-130234718" target="_blank">30 Fontana Close</a>, the similar residence next door, 30A Fontana Close sold in January last year for $555,000.
Set on 118 sqm the townhouse is located in the Callaway Park estate.
The three bedroom two bathroom home features an open living plan, two parking spaces and a balcony.
It is positioned near shops, schools &amp; public transport.
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It last sold for $400,000 in 2012, while 30A Fontana close sold for $458,000 in 2012.
The median price for a home in <a href="/news">Sunshine West</a> is $645,000 according to CoreLogic, which calculate its annual change in median price over the past 10 years as 7.9%.
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Mortgagee Sunshine West townhouse listed

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A four year old beachfront Glenelg North, SA home, is set to go under the mortgagee hammer.
The three bedroom three bathroom house showcases elevated views of Gulf St Vincent and the coastline.
Jamie Brown of Bernard H Booth holds the listing.
Situated at <a href="https://www.realestate.com.au/property-house-sa-glenelg+north-130005010" target="_blank">21 North Esplanade</a> the home is scheduled for a February 23 auction.
<img src="https://www.urban.com.au/images/2019/2/12/GLenelg%202.JPG" alt="">
Set on roughly 600 sqm the residence is spread across three floors, all accessed by a lift.
It features garaging for six cars, Carrara marble tiles, a plunge pool and a gas fireplace.
Earlier this year the home had an asking price of $2.7 million to $2.9 million.
It last sold for $1.56 million in 2012 and in 2007 it went for $2 million.
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The median price for a home in <a href="/developments/glenelg-north-sa-5045">Glenelg North</a> is $682,250 according to CoreLogic, which calculate its annual change in median price over the past 10 years as 2.5%.
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Beachfront North Glenelg home listed by mortgagee

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GUEST OBSERVATION
It was a great story.
<a href="https://www.smh.com.au/business/the-economy/meet-guy-debelle-and-philip-lowe-the-odd-couple-wholl-be-running-the-reserve-bank-20160916-grho4t" target="_blank">Philip Lowe</a> had taken over as Reserve Bank governor after 25 years of uninterrupted economic growth. The Australian economy was transitioning nicely away from the country’s biggest-ever mining boom. Interest rates had been cut to historic lows in the wake of the 2008 financial crisis and had bottomed out. Inflation and wages growth were about to pick up. Unemployment was falling. And the new governor would preside over a return to “new normal”, with gradual rate rises up to a cash rate of 3.5-4.0%.
Then a funny thing happened on the way to the fairytale ending.
In <a href="https://www.rba.gov.au/speeches/2019/sp-gov-2019-02-06" target="_blank">a remarkable speech at the National Press Club on Wednesday</a>, Lowe essentially admitted that the bank might well need to take extra remedial action to get the economy moving again.
Gone was the mantra that “the next movement in interest rate will likely be up”. Rather, Lowe said:
<blockquote>
…here are scenarios where the next move in the cash rate is up, and other scenarios where it is down. Over the past year, the next-move-is-up scenarios were more likely than the next-move-is-down scenarios. Today, the probabilities appear to be more evenly balanced.
</blockquote>
Translation: “I don’t want to freak you out, but we’re probably going to have to cut rates. And do it sooner rather than later.”
Consider the two main things driving the Reserve Bank’s decision.
Inflation is stubbornly low. <a href="https://theconversation.com/vital-signs-yet-another-year-of-steady-rates-whats-the-point-of-the-rba-inflation-target-110574" target="_blank">As I pointed out last week</a>, the bank has long had an inflation target of 2-3%, but it keeps undershooting it, and not just missing the centre, but missing the lower bound. In two and a half years with Lowe as governor, inflation has averaged just 1.87% – and has never been inside the target band. The latest figure is 1.8%.
<hr>
<img src="https://images.theconversation.com/files/256541/original/file-20190131-42594-1p06f0z.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
<hr>
Related to that, wages growth is anaemic. For five years it has barely kept up with inflation.
This is broadly true in advanced economies around the world (although our wages are doing worse than those in the United States) and suggests the unemployment rate will need to be pushed down further than in the past in order to reignite wages pressure and hence inflation. That suggests we’ll need even lower interest rates than we’ve got in order to provide what the boffins call monetary stimulus.
<hr>
<a href="https://images.theconversation.com/files/257672/original/file-20190207-174867-1i44ukt.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/257672/original/file-20190207-174867-1i44ukt.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<hr>
And the Reserve Bank’s cash rate — the rate that most other rates are set in reference to — is already the lowest on record, at just 1.5%.
Meanwhile, the housing market has taken a big hit, which isn’t over. Nationwide, the market is down 6.1% from its October 2017 peak. In Sydney and Melbourne, the falls are double that.
They are the mainly the result of a credit crunch that flowed from the Australian Prudential Regulation Authority’s decision to wake from its multi-year slumber and tighten lending rules at about the same time the banks responded to the royal commission by impersonating frightened turtles.
Sinking property prices sink spending
Sliding property prices shrink household spending, which makes up roughly 60% of economic activity.
On Tuesday, in the statement it released after its first board meeting for the year, the bank obliquely signalled that it had cut its GDP growth forecasts, mentioning forecasts of <a href="https://www.rba.gov.au/media-releases/2019/mr-19-01" target="_blank">3% this year and less in 2020</a> instead of the <a href="https://www.rba.gov.au/media-releases/2018/mr-18-31" target="_blank">3.5% this year and less in 2020</a> it had mentioned after its December meeting.
Add in the global headwinds from the US-China trade tensions and the fallout from the bungled Brexit, and it’s hard to find much that’s encouraging about the Australian economy in the year ahead.
Lowe didn’t want to state explicitly that he might have to cut rates between now and the election (and if necessary during the campaign itself), but he didn’t need to. He has been as clear as governors get.
Rates could be cut on budget day
A decent bet is the bank will cut 25 points on the first Tuesday in May, after the release of the updated (and possibly weak) inflation data on April 24.
Another possible date is the first Tuesday in April, April 2, after the March release of the December quarter economic growth figures, especially if economic growth turns negative. Coincidentally, April 2 is the day the government has set aside for the early budget, so it can hold the election in May.
If it does there will be some who will try to spin it as good news. In 2007 John Howard campaigned under the slogan that rates would be “lower under the Coalition”.
Don’t think it couldn’t happen
His treasurer Peter Costello was under the impression the bank wouldn’t dare move rate during the campaign, unwisely telling broadcaster Jon Faine it would <a href="https://www.smh.com.au/business/costello-quiet-on-offair-rates-comments-20071107-18kq" target="_blank">keep them put</a>.
“He looked me in the eye. He put his thumb down as he sat there…and he said, ‘There will not be a rate rise in November. Take it from me’,” Faine said.
Having marked out the territory, there is no doubt the bank will use it if needed. To do otherwise would be to invite questions about whether it had favoured one party or the other by holding off.
The hard truth is that we live in a <a href="http://larrysummers.com/category/secular-stagnation/" target="_blank">secular-stagnation world</a>, with too much saving chasing too few profitable investment opportunities.
Rates no longer need to be particularly high
That means that interest rates don’t need to be anything like as high as they once did to attract enough money to fund good ideas. And even if the ideas are good, it is likely they won’t need as much money as they did. Whereas once it took tens of billions of dollars to create a globally significant company (like BHP or US Steel) all it takes now is maybe $2,000 and a laptop, as with Facebook and Google.
A massive mining boom caused by the transition of China to a market economy and then a huge property bubble masked the new reality here for while.
Now it is here for all to see, the Reserve Bank governor included.
<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-if-needed-this-man-can-and-will-cut-rates-during-the-election-campaign-111254" target="_blank">original article</a>.
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If needed, this man can and will cut rates during the election campaign: Richard Holden

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The rural property trust, Rural Funds Group has bought Cobungra Station for $35 million.

Cobungra Station – one of Victoria's largest and most prestigious high-country beef breeding enterprises – was offered for sale last April.

It was for only the third time in 100 years.

The $35 million deal secured the 6486-hectare alpine beef property at the foot of Mount Hotham, plus more than 24,000 hectares of adjacent grazing licences.

<img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/11/Cobung3.jpg">

Cobungra Station has a history and reputation as a grower of high quality Australian beef stretching back to the 1800s.

Its cattle comprises Full Blood Wagyu, F1 Wagyu Cross and English Breed herds.

In 2001 a comprehensive full blood wagyu breeding programme commenced, starting with a herd of 70 cows descended from Michifuku bloodlines. Since then the Cobungra full blood wagyu herd has developed substantially.

At between 1000m and 1500m above sea level, the altitude and clean mountain air, combined with abundant clean water makes a naturally healthy place to raise cattle. 

<img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/11/Cobungra2.jpg">

Cobungra Station's Wagyu product is distributed under the award-winning “Blackmore Wagyu” label.

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Stone Axe Pastoral Company, a Wagyu producer that leases two other properties from RFF, has entered a ten-year lease with a rent review in year five.

The <a href="https://www.realestate.com.au/property-livestock-vic-omeo-7952550" target="_blank">1929 Great Alpine Road, Omeo property</a> was offered through Elders and Colliers.

<h2>VIC properties now selling:</h2>

[smartcode_project:default project_id=29921]

[smartcode_project:default project_id=27427]

[smartcode_project:default project_id=25409]
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Rural Funds Group buys Cobungra Station for $35 million

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The Chinese property tycoon Huang Xiangmo, whose permanent residency in Australia has been cancelled by officials, has proposed that Australian politicians return his donations to instead be given to charity.
“It is profoundly disappointing to be treated in such a grotesquely unfair manner,” he said, calling the accusations against him “baseless allegations and sheer lies”.
Huang, the 49-year-old Guangdong native, said he no longer held any position or shares at Yuhu Group, the company he founded in Australia after migrating in 2011.
Yuhu's high profile development sites are at Circular Quay and the Gold Coast.
With his wife and son still living in his Mosman mansion, Huang said he “will visit Australia at the appropriate time with the suitable identification,” the South China Morning Post reported.
“The decision of visa cancellation was made based on unfounded speculations that are prejudiced and groundless. This is not the Australia that I believe in – the Australia of freedom, democracy, rule of law and fairness – but I keep my faith in law and justice.”
The Huang case has highlighted growing suspicion in Australia of Communist Party influence on its domestic politics. Australia last year passed sweeping national security reforms via the Espionage and Foreign Interference Act, which broadens the range of activities that would be treated as spying.
He donated $2.7 million to the Labor and Liberal parties, telling political parties on Friday to return his money if they believe it was given inappropriately..
The Australian Security Intelligence Organisation (ASIO) ordered the cancellation of Huang’s residency because it found he was “amenable to conducting acts of foreign interference” and in the past had shown a “willingness” to do so, the Australian Financial Review reported on Thursday.
He said on Friday that scrutiny of his prolific political donations in Australia and positions at pro-Beijing organisations was “prejudiced and groundless”.
Huang said he was now living a “peaceful and happy life” in Hong Kong, where he is believed to have permanent residency.
He was focusing on his investments in the city and others in Thailand, the United States and Britain.
Chinese language newspapers are today reporting that billionaire political donor has appealed the Australian government’s decision to cancel his permanent residency visa. 
The newspaper, The Australian Chinese Daily, reported that Mr Huang appealed the decision last month in the Australian Administrative Appeals Tribunal via a lawyer in Hong Kong.
The report was reprinted in the digital Chinese language news outlet, Sydney Today, which has previously carried columns written by Mr Huang.
Huang said on Friday that his donations had been lawful and made at the request of the recipient parties.
The property developer moved to Australia in 2011 before making his first political donation,  $150,000 to the NSW branch of the ALP during Sam Dastyari's time as party secretary in 2012.
He had stopped all political donations as of July 1, 2016.
The Chinese billionaire is the chairman of the Oceanic Alliance of Promotion of the Peaceful Reunification of China (OAPPRC) and former chairman of the Australian Council for the Promotion of the Peaceful Reunification of China (ACPPRC), both of which advocate the peaceful unification of mainland China and the self-ruled island of Taiwan.
In his Friday statement, he stated that both groups followed the Australian government’s political position regarding the one-China policy that recognises Beijing’s position on Taiwan.
“If I am penalised for promoting the peaceful reunification of China, such penalty is against Australia’s own diplomatic position and international commitment as well as Australia’s fundamental principles of cultural diversity and freedom of speech,” he said.
The ABC reported the decision to ban Mr Huang from Australia was delivered months ago.
Some analysts predicted that Beijing could react angrily if any of its citizens were targeted under legislation designed to crack down on foreign interference. 
But the Foreign Minister Marise Payne has played down the possibility. 
"[China] has not raised it with me and I don't expect to be the subject of a bilateral discussion. These are matters that occur from time to time," she said. 
 
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Yuhu Group founder suggests Australian politicians direct his political donations to charity

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Ray White Rural has appointed Adrian Knowles (pictured above) as the state manager for Ray White Rural and Livestock in Queensland.
Hailing from Central Queensland, with the country in his blood, Knowles expects to drive an ambitious growth and productivity plan.
The former real estate agent and corporate business growth specialist said his focus will be to provide corporate support to the rural business owners in Queensland.
“There’s never been a tougher time on the land due to the oppressive drought so I am here to lend support,” Mr Knowles said.
“I also have ambitious plans to help our owners with their recruitment  and business growth.”
Ray White Rural Queensland has almost 60 business across the state.
The extended Ray White Rural and Livestock corporate team includes chairman Paul White.
CEO of Ray White Rural and Livestock Stephen Nell said this was at an important time in the company’s growth.
“This year is our 25th year of operation and with over 100 offices and over $1.6B in sales annually, we are ensuring our members have the best resources to run strong local businesses,” Mr Nell  said.
The steam includes business development executive Jez McNamara; and head of innovation Lyndsey Douglas.
The other state managers are (Victoria) Jason Hellyer and (NSW) Stewart Gordon.
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Ray White Rural appoints Adrian Knowles

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Queensland cattle farmers affected by flooding are being urged to contact their banks by the Australian Banking Association (ABA).
The Australian Banking Association CEO Anna Bligh said Australia’s banks stood "ready to help" farmers, including cattle farmers, who have been devastated by floods over the last few days and urged anyone needing assistance to contact their bank directly. 
“After suffering through an extensive drought, many Queensland Cattle farmers have now been cruelly devastated by these floods,” Ms Bligh said. 
“Banks stand ready to help cattle farmers and others affected by these floods and other natural disasters through deferred loan repayments, waiving fees and other arrangements.
“Banks have dedicated hardship teams ready to assist, however it’s important that customers contact their bank directly to flag they are experiencing hardship,” she said. 
Services on offer to customers who have been affected by natural disasters or other circumstances beyond their control can include: 
<ul type="disc">
<li>A deferral of scheduled loan repayments</li>
<li>Waiving fees and charges, including break costs on early redemption of Farm Management Deposits</li>
<li>Debt consolidation to help make repayments more manageable</li>
<li>Restructuring existing loans free of the usual establishment fees</li>
<li>Deferring interest payments on a case-by-case basis</li>
<li>Offering additional finance to help cover cash flow shortages</li>
<li>Deferring upcoming credit card payments</li>
<li>Increasing emergency credit card limits</li>
<li>Waiving early termination fees for customers who wish to access their term deposits.</li>
</ul>
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Queensland cattle farmers urged to contact their banks

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GUEST OBSERVATION
For many of us, the reality of Australian homes now sits many storeys up in the sky. <a href="https://theconversation.com/higher-density-and-diversity-apartments-are-australia-at-its-most-multicultural-97176" target="_blank">High-rise apartment buildings have sprouted across the nation’s cities</a>. In recent weeks – <a href="https://theconversation.com/there-are-lessons-to-be-drawn-from-the-cracks-that-appeared-in-sydneys-opal-tower-but-they-extend-beyond-building-certification-109428" target="_blank">on Christmas Eve at the Opal Tower building in Sydney</a> and <a href="https://www.theguardian.com/australia-news/2019/feb/04/apartment-fire-in-melbournes-spencer-street-prompts-new-fears-over-cladding" target="_blank">on February 4 at the Neo200 Building in Melbourne</a> – that reality has turned into the nightmare for hundreds of residents of being turned out of their homes with little more than the clothes they were wearing.
The Opal Tower evacuation was <a href="https://www.planning.nsw.gov.au/-/media/Files/DPE/Reports/Opal-Tower-Investigation-Draft-Interim-Report-2019-01-15.pdf" target="_blank">due to structural cracking</a>. At Neo200, a fire raced up the building, <a href="https://www.afr.com/real-estate/combustible-cladding-main-contributor-to-melbournes-spencer-st-tower-fire-20190204-h1atix" target="_blank">fuelled by flammable cladding</a> on part of its facade.
The rapid spread of the fire, and <a href="https://www.theage.com.au/national/cbd-tower-residents-forced-out-of-apartments-after-blaze-20190204-p50vlt" target="_blank">its apparent origin in a smouldering cigarette on the balcony</a>, was eerily reminiscent of the <a href="https://www.theage.com.au/politics/victoria/docklands-owners-sue-for-24m-over-fire-as-date-to-fix-cladding-looms-20180909-p502pc" target="_blank">Lacrosse building fire</a> in Melbourne in 2014. It also brings to mind the Grenfell Tower inferno in London (probably <a href="https://www.bbc.com/news/uk-40301289" target="_blank">originating in a small electrical fire</a>). This catastrophe took the lives of 72 people and devastated the lives of many more.
Media reports of the Neo200 fire included two concerning aspects:
<ul>
<li>
<a href="https://www.theage.com.au/national/victoria/extra-fire-alarms-put-in-a-fortnight-before-blaze-ripped-through-tower-20190204-p50vjt" target="_blank">tenants had been unaware</a> the building was partially covered in combustible cladding
</li>
<li>
<a href="http://www.mfb.vic.gov.au/Media/docs/Post_Incident_Analysis_for_Lacrosse_Docklands_-_25_11_2014%20-%20FINAL-dd61c4b2-61f6-42ed-9411-803cc23e6acc-0.PDF" target="_blank">as the Metropolitan Fire Brigade found at Lacrosse</a>, <a href="https://www.theage.com.au/national/victoria/same-as-grenfell-tower-cladding-fears-as-fire-rips-through-melbourne-cbd-apartment-building-20190204-p50vgl" target="_blank">smoke detectors had been covered</a>, rendering them inoperable.
</li>
</ul>
Such behaviours and lack of knowledge compromise critical safety-related equipment. This represents both a challenge to, and reinforcement of, the critical role of residents in ensuring high-rise buildings are safe.
In the <a href="/news">final report</a> of the post-Grenfell “Building a Safer Future” review for the UK government, Dame Judith Hackitt observed:
"Residents need to be safe, and feel safe, in their homes … they also have a responsibility towards their fellow residents to ensure that their actions do not compromise the safety of the building."
Six elements of residential building safety
The Hackitt Review joins a raft of reports that have influenced ongoing reform of residential construction regulations. In Victoria, notable recent contributions include the Auditor-General’s <a href="https://www.audit.vic.gov.au/report/victorias-consumer-protection-framework-building-construction" target="_blank">2015 report</a> on the consumer protection framework, and <a href="https://www.industry.gov.au/sites/default/files/July%202018/document/pdf/building_ministers_forum_expert_assessment_-_building_confidence.pdf" target="_blank">Shergold and Weir’s 2018 report</a> for the Building Ministers’ Forum.
There is significant agreement between these reviews. Their vision for an effective regulatory scheme can be distilled into six elements, which need to interact holistically:
<ol>
<li>
Information: all parties who have an influence on occupant safety need sufficient information about the risks in the building to make decisions consistent with protecting occupant safety.
</li>
<li>
Responsibility: while the “buck stops” with an adequately resourced regulator, all parties in the residential construction supply chain need to discharge clearly expressed, risk-based and complementary responsibilities.
</li>
<li>
Standards: people with appropriate expertise (for example, about how building materials interact) should set standards to be enforced throughout the supply chain.
</li>
<li>
Competence: where work requires particular skills and experience, only people who have these should do it.
</li>
<li>
Quality assurance: inspection regimes need to provide a robust “last line of defence” to catch defects before they threaten occupants’ safety.
</li>
<li>
Rectification: recognising that litigation is slow and expensive, dispute avoidance processes and insurance should expedite rectification.
</li>
</ol>
The Victorian regulatory regime for residential construction mainly comprises the <a href="http://www.legislation.vic.gov.au/domino/Web_Notes/LDMS/LTObject_Store/ltobjst10.nsf/DDE300B846EED9C7CA257616000A3571/FF534BFE5E1FF524CA2583150019BDAF/%24FILE/93-126a117.docx" target="_blank">Building Act 1993</a>, its recently updated <a href="http://www.legislation.vic.gov.au/Domino/Web_Notes/LDMS/PubLawToday.nsf/b12e276826f7c27fca256de50022686b/d6ce1ed4cf4cae14ca25833000014a82!OpenDocument" target="_blank">regulations</a>, the <a href="https://ncc.abcb.gov.au/ncc-online/NCC" target="_blank">National Construction Code</a> which underpins those regulations, and the <a href="http://www.legislation.vic.gov.au/Domino/Web_Notes/LDMS/LTObject_Store/LTObjSt10.nsf/DDE300B846EED9C7CA257616000A3571/513B8F096A77B1A7CA2583300080DA1F/%24FILE/95-91a084.docx" target="_blank">Domestic Building Contracts Act 1995</a>. Justifiably, much of the recent reform focus has been on the role of the regulator under element 2 – the Victorian Ombudsman’s <a href="https://www.ombudsman.vic.gov.au/Publications/Parliamentary-Reports/Own-motion-investigation-into-the-governance-and-a" target="_blank">2012 report</a> led to the Victorian Building Authority replacing the Victorian Building Commission – and elements 3-6. Contributors to The Conversation have, for example, noted:
<ul>
<li>
the difficulties of <a href="https://theconversation.com/cladding-fires-expose-gaps-in-building-material-safety-checks-heres-a-solution-111073" target="_blank">tracking compliant products throughout globalised supply chains</a> (element 3), and how technology can help overcome these challenges
</li>
<li>
the importance of enforcing competence (element 4) in a <a href="https://theconversation.com/beyond-opal-a-10-point-plan-to-fix-the-residential-building-industry-110975" target="_blank">ten-point plan to fix the residential building industry</a>
</li>
<li>
scapegoating <a href="https://theconversation.com/there-are-lessons-to-be-drawn-from-the-cracks-that-appeared-in-sydneys-opal-tower-but-they-extend-beyond-building-certification-109428" target="_blank">private building inspectors</a> (element 5), as happened after the Opal evacuation, attacks a symptom of the disease, rather than the inherent tension between cost and quality in residential construction.
</li>
</ul>
The regulatory response on each of these four elements remains a matter for ongoing debate. This is justified given that the performance-based nature of most standards-setting results in increased competence requirements.
What about the role of residents?
The Neo200 experience highlights, however, that the role of residents can be underestimated. In particular, where regulatory elements 1 and 2 refer to “parties”, this very much includes dwelling occupants and others who enter these buildings. It also includes the designers, builders and other construction professionals who are the primary concern of elements 3-6.
Given the diverse ways in which people visit, live or work in high-rise buildings, it will always be a challenge to devise ways to make sure occupants:
<ul>
<li>
have enough information to understand the risks of being in such buildings (whether or not there is combustible cladding)
</li>
<li>
act in ways that reflect their responsibility to keep themselves and their fellow residents safe.
</li>
</ul>
As recent moves in Victoria to <a href="https://www.vba.vic.gov.au/consumers/swimming-pools/information-for-consumers-who-have-an-existing-pool-or-spa" target="_blank">register and inspect backyard pools and spas</a> arguably demonstrate, there seems to be robust community support for intruding into people’s homes where the safety risk is seen as high. Is it time, therefore, to mandate airline-style safety briefings in apartments, regular inspections of apartments to make sure smoke detectors are working, and other similar interventions? Certainly, a recognition of occupants as active stakeholders would suggest such measures are appropriate in pursuit of a deeply held community goal of dwelling safety.
As a society, though, are we ready for such state-based assaults on our homes – upon what the Kerrigans regarded as their “<a href="https://www.imdb.com/title/tt0118826/" target="_blank">castle</a>”? Time will tell. In the meantime, the residents of the Neo200 building – like those at the Opal building before them – are left searching for alternative accommodation, and for answers.<img src="https://counter.theconversation.com/content/111255/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;">
Matthew Bell, Senior Lecturer and Co-Director of Studies for Construction Law, 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/dont-overlook-residents-role-in-apartment-building-safety-111255" target="_blank">original article</a>.
</body></html>

Don't overlook residents' role in apartment building safety: Matthew Bell

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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