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GUEST OBSERVATION
The <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-01-15/opal-tower-needs-significant-rectifiaction-work-report-finds/10713054" target="_blank">failure of the Opal Tower building</a> in Sydney has highlighted the poor quality of speculatively built multi-unit housing in Australia.
The tower’s 392 apartments were evacuated on Christmas Eve when residents heard loud cracks and defects were found.
So far, the only reaction from government has been a knee-jerk <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2018-12-30/opal-tower-damage-sparks-nsw-government-crackdown/10673968" target="_blank">promise to crack down on shonky building certifiers</a> (that’s you Matt Kean, minister for innovation and better regulation in New South Wales).
Unfortunately, there is no evidence this will make any difference.
Planning policies embraced by the NSW and Victorian governments mean a greater percentage of new housing is being constructed in tall multi-unit developments than ever before, particularly in Sydney and Melbourne.
Between <a href="https://cityfutures.be.unsw.edu.au/research/projects/governing-the-compact-city-the-role-and-effectiveness-of-strata-management-in-higher-density-residential-developments/" target="_blank">50% and 80% of multi-unit buildings</a> have defects serious enough to be the subject of strata committee involvement.
Possibly close to 100% have significant defects at completion.
Most of the problems are waterproofing issues (which may not be evident for years), malfunctioning services or a lack of proper compliance with fire codes and standards.
We can only fix this problem by changing the culture of the residential building industry.
Ten steps governments can take
We don’t need another royal commission. Governments could implement all of the suggestions below using their existing powers.
1) Increase density by permitting more subdivisions on existing housing blocks rather than building tall buildings.
Two <a href="https://www.reisa.com.au/publicinfo/general-tips-and-traps/torrens-title-explained" target="_blank">Torrens title</a> townhouses can be built on a normal single-house quarter-acre block. Low-scale buildings will still suffer from defects, but are less problematic to build, inspect and repair than tall buildings and use simpler technology.
2) In the short term, provide occupation certificates to new residential buildings taller than three storeys only if they comply with an enhanced protocol of regulations and oversight.
State government would implement this, with a focus on waterproofing and fire performance.
A suitable code, standards and protocols could be developed in a few weeks. The necessary people to provide independent oversight could be drawn from qualified architects, builders and engineers who are able to pass a probing exam. They would be independent of the design and construction team. The government would fix their fees.
3) Develop a program to enhance the standards for residential building standards in the <a href="https://www.business.gov.au/planning/templates-and-tools/industry-factsheets/national-construction-code" target="_blank">National Construction Code</a> (NCC).
The current NCC codes for Class 2 buildings (home units) favour innovation and cost reduction over consumer protection. This is the wrong way around for housing. Section F, which covers health and amenity (including waterproofing), is weak and must be strengthened.
4) A voluntary quality scheme to star-rate all apartments, similar to <a href="https://www.ancap.com.au/about-ancap" target="_blank">ANCAP</a> (Australasia New Car Assessment Program), might work with industry support.
The minimum standard permissible would comply with the enhanced standards. The NSW Building and Construction Council promoted a scheme in the 1990s but failed due to lack of government support. It was a good idea then, and it is still a good idea now.
5) If the industry won’t support a voluntary scheme, government should introduce a coercive qualified practitioner (QP) scheme.
This would be a permanent version of the short-term scheme. If a building goes bad, the QP could lose the right to practise as a QP as well as being liable to the owners.
6) Revitalise trade training and certification to ensure all trade workers are properly trained and certified.
Many trades on building sites have no training and are not licensed. The requirement to read directions and document work against procedures means everyone on site must be functionally literate. The goal should be to have 30% of people working on site at Certificate 4 level by 2025. 100% of building workers should be literate by 2025. This should be a national requirement, checked by inspectors.
7) All leading hands for any trade should be educated up to Certificate 4 level.
This should be independently verified to cut out shonky training providers. Leading hands in all trades should be licensed and responsible for the work they do.
8) Enhance licensing of builders and subcontractors to ensure people in charge on site are educated beyond Certificate 4.
All people occupying construction roles with management responsibility should have valid qualifications in architecture, structural engineering or building.
9) Consider additional laws on contract provisions to reduce the economic power disparity between developers, head contractors and subcontractors.
Unfair commercial pressures are at the heart of much bad building. We should do more to cushion the smaller players from the larger ones.
10) And, while we are at it, we should ensure a value-capture process accompanies the development of tall residential buildings so the cost of upgrading social infrastructure is recovered.
High-density, high-rise buildings massively increase loads on socially owned infrastructure, such as schools, libraries, hospitals, parks and sporting facilities. The developers of tall buildings should be made to contribute adequately to the economic cost of enhancing these provisions, which can involve solutions that are unusually expensive, such as high-rise schools.
 
<a href="https://theconversation.com/profiles/geoff-hanmer-90647" target="_blank">Geoff Hanmer</a>, Adjunct Lecturer in Architecture, Univeristy of NSW, <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/beyond-opal-a-10-point-plan-to-fix-the-residential-building-industry-110975" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Beyond Opal: a 10-point plan to fix the residential building industry: Geoff Hanmer

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EXPERT OBSERVER
<a href="http://theconversation.com/institutions/rmit-university-1063"></a>
Every 10 to 15 years it’s the same.
Ever since <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-02-04/banking-scandals-were-decades-in-the-making/10771612?section=business" target="_blank">financial deregulation in the 1980s</a> we’ve had a finance industry scandal followed by an inquiry, a quick fix, and a declaration that it shouldn’t happen again.
In the early 1990s there were royal commissions into the A$1.7 billion <a href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/people/591917?c=people" target="_blank">Tri-continental/ State Bank Victoria</a> collapse, the A$3.1 billion State Bank of South Australia collapse and the <a href="http://www.parliament.wa.gov.au/intranet/libpages.nsf/webfiles/rc+1992/%24file/0015319.pdf" target="_blank">WA Inc</a> collapse which explored the interrelated activities at Rothwells bank, the A$1.8 billion collapse of Bond Corporation and the A$1.2 billion siphoned from Bell Resources.
A decade later in 2003 Justice Owen reported on the A$5.3 billion <a href="https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22library/prspub/XZ896%22" target="_blank">collapse of Australia’s largest insurer HIH</a>.
And now, bang on schedule, we have Kenneth Hayne delivering the <a href="https://financialservices.royalcommission.gov.au/Pages/default.aspx" target="_blank">final report</a> of a royal commission into systemic misconduct in banking, superannuation and financial services industry to a government that voted 26 times against holding it.
There are two particularly striking things about the 10-15 year cycle.
One is the rhythm of public inquiries followed by reports, then (sometimes) trials, then books, then almost everyone forgetting (except for those personally scarred) only for problems to resurface later.
The other is that the times between have been punctuated by government-commissioned banking and financial system reviews: the 1991 <a href="http://fsi.gov.au/files/2014/01/Chpt1-12.pdf" target="_blank">Campbell Inauiry</a>, the 1996 <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/RP9697/97rp16" target="_blank">Wallis Inquiry</a>, the 2010 <a href="https://treasury.gov.au/review/super-system-review/" target="_blank">Cooper superannuation review</a> and the 2012 <a href="http://fsi.gov.au/publications/" target="_blank">Murray Review </a>. Each either missed or downplayed the links between poor governance, industry structure, systemic misconduct and prudential risk.
<h2>Has Kenneth got the frequency right this time?</h2>
Commissioner Kenneth Hayne’s 1000-page final report hasn’t gone far enough to end this cycle.
While his referral of 24 misdeeds for possible criminal and civil prosecution will help in righting past wrongs and perhaps focus the minds of directors and executives, the impact will be generational rather than permanent.
The flurry of prosecutions and actions will again reveal <a href="https://www.theage.com.au/business/banking-and-finance/asic-life-ban-overturned-after-aat-find-key-arguments-not-raised-20181014-p509jc" target="_blank">problems with the law</a> - gaps in coverage, inadequate penalties and cases the law won’t allow to stand up.
Taken together the recommendations are a patchwork of measures that if implemented will over time be eaten away – and at some point will be dismantled – because the rationale for their adoption will be forgotten.
Even before they are implemented they will have to run the gauntlet of a massive subterranean lobbying effort from industry to water them down, something Hayne indicated he expected.
<h2>The deepest flaw lies unaddressed…</h2>
Even though Hayne emphasises the link between systemic misconduct, governance, structure and prudential (system-wide) risk, something that Treasury, the RBA and Australia’s three business regulator amigos, APRA, ASIC and the ACCC, <a href="https://theconversation.com/treasury-admits-corporate-governance-is-broken-but-baulks-at-systemic-fixes-100882" target="_blank">have long rejected</a>, he makes no concrete suggestions to tackle it.
As we have written previously, research tells us big systemically important shareholder-focused universal for-profit banks that cross-sell products are more profitable than smaller banks in the good times but are <a href="https://theconversation.com/treasury-admits-corporate-governance-is-broken-but-baulks-at-systemic-fixes-100882" target="_blank">more prone to misconduct and to failure in the worse times</a>.
Australia’s big four fit the bill - they’re big, they have been vertically integrated one-stop shops, they are very, very profitable and they are very focused on shareholder returns.
While the banks, apart from Westpac, have divested themselves of wealth management and insurance arms for now there is nothing stopping them reacquiring them in the future.
This means we are once again 10 or 15 years away from systemic misconduct resurfacing as big banks seek to become more profitable.
<h2>…and putting the onus on directors won’t much help</h2>
While heads might roll in yet another round of internal investigations to fix bank culture, it is wise to remember that as <a href="https://www.smh.com.au/business/banking-and-finance/asic-red-faced-over-opes-prime-verdict-20130906-2ta8f" target="_blank">Adele Ferguson observed</a> ANZ’s internal investigation of the Opes Prime collapse left the bigger governance lessons “unlearned”.
Directors and senior executives of failed companies continue to live charmed lives.
The directors of Babcock and Brown <a href="https://www.smartcompany.com.au/finance/economy/babcock-brown-leaders-disgraceful-exit-kohler/" target="_blank">were cheered as they left the building</a>, while friends and family of the disgraced One.Tel director Jodee Rich have resurfaced at Hayne and other public inquiries.
Some of the <a href="https://www.smh.com.au/business/james-packer-and-lachlan-murdoch-close-to-onetel-settlement-20140411-36iii" target="_blank">One.Tel directors</a> have had long corporate careers. The former chair at of the collapsed <a href="https://en.wikipedia.org/wiki/Allco_Finance_Group" target="_blank">Allco Finance Group</a> Bob Mansfield went on to review the ABC.
As Adam Schwab bluntly put it, <a href="https://www.crikey.com.au/2014/03/24/after-babcock-browns-collapse-its-money-men-try-again/" target="_blank">“corporate Australia is nothing if not forgiving”</a>.
<h2>It’ll chase horses rather than close doors</h2>
Hayne is persisting with a chasing bolting horses approach to misconduct that relies on detection and enforcement.
We have argued this approach is <a href="https://theconversation.com/solving-deep-problems-with-corporate-governance-requires-more-than-rearranging-deck-chairs-99297" target="_blank">just not as a effective as other alternatives such as two-tier boards and employee directors</a> which have a better track record of keeping stable doors closed and horses tethered.
Without them we could very easily have another crisis and another royal commission in 15 to 15 years time.
Ireland has taken a been prepared to change corporate structures. After the meltdown of its financial system triggered by the end of a “classic vanilla property boom” its parliament legislated to appoint <a href="https://doi.org/10.1080/14735970.2015.1128752" target="_blank">public interest directors to the boards of its </a><a href="https://doi.org/10.1080/14735970.2015.1128752" target="_blank">failed</a><a href="https://doi.org/10.1080/14735970.2015.1128752" target="_blank"> banks</a>.
These changes were designed to ensure banks directors put the public interest first, ahead of shareholders interests and even customers interests.
It’s beyond time we did it here.<img src="https://counter.theconversation.com/content/110437/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/andrew-linden-330227" target="_blank">Andrew Linden</a>, Sessional Lecturer, PhD (Management) Candidate, School of Management, <a href="http://theconversation.com/institutions/rmit-university-1063" target="_blank">RMIT University</a> and <a href="https://theconversation.com/profiles/warren-staples-426467" target="_blank">Warren Staples</a>, Senior Lecturer in Management, <a href="http://theconversation.com/institutions/rmit-university-1063" target="_blank">RMIT University</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/haynes-failure-to-tackle-bank-structure-means-that-in-a-decade-or-so-another-treasurer-will-have-to-call-another-royal-commission-110437" target="_blank">original article</a>.
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Hayne’s failure to tackle bank structure means that in a decade we will have to call another banking royal commission

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A cash rate cut from the Reserve Bank of Australia (RBA) seems more likely now than it has in years, according to Finder, Australia’s most visited comparison site.
All 28 experts and economists in Finder’s <a href="https://protect-au.mimecast.com/s/tJ9mCD1v12hB883nI54aSQ?domain=finder.us9.list-manage.com" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://protect-au.mimecast.com/s/tJ9mCD1v12hB883nI54aSQ?domain%3Dfinder.us9.list-manage.com&amp;source=gmail&amp;ust=1549307762488000&amp;usg=AFQjCNGD0AHNNDFlCBL10yngE2qDdo6OcQ">RBA cash rate survey</a> are expecting a hold at 1.50% on Tuesday, but their predictions swung dramatically about the direction of the next move to come. For the past two years, about 80% of experts have predicted a hike as the next cash rate move. This month, only 40% (11/28) did so. Stephen Koukoulas, managing director at Market Economics said he could see a change happen in as little as a month. "[The RBA] will acknowledge the economy is weaker than when it last met and will signal a change in bias towards an easing.  “It may wait a month or two before acting on that bias," Koukoulas said. Graham Cooke, insights manager at Finder, said of the panelists who put a date on their rate drop, predictions were pretty evenly spread throughout the year from March to November.  “This is the most dramatic shift I have seen in four years of running our cash rate survey.  “Economists are now swinging significantly in favour of a cut this year, but nobody can agree on exactly when this will happen,” Cooke said. <img src="https://ci6.googleusercontent.com/proxy/jiQUG11OCkOuDP24-WepAOoFyrIk9BDpJgv2AKWF_icw0Ye8ix0d5ISsYpWprAnHuVcasZ_fHx4aki29ZKq7UToHuGO5TTl9hM5aYykkShFrjcDhrMhuBikrl8cdYTAs-5ILoyi0PMSCulAN5UCcItvUGC6yPd4m1y4=s0-d-e1-ft#https://gallery.mailchimp.com/cc5e9bce699fa1d71a67cf499/images/5db05eb6-ce37-4c6f-a434-8ecf89c51a59.png" width="600" height="355"> Cooke said that the severity of the housing downturn in recent months was the top reason cited by experts who changed their prediction.  “Along with housing concerns, inflation is still sitting below two per cent, so another cut may be needed to stimulate the economy.  “The only issue with further cuts is that it reduces the ability of the RBA to adapt to softer economic conditions in the future,” Cooke said.  Finder’s Economic Sentiment Tracker has also seen a significant shift.  Positivity regarding employment in Australia fell from 56% in December to just 29% in February.  Economists indicated that, though unemployment is still low, a weakening of job prospects looms on the horizon.  Koukoulas said the economy is on a slower growth path,  judging by GDP.  “Looking at many economic factors, it looks like growth will be weaker in the next quarter.  “The labour market tends to lag behind the greater economy by a couple of quarters. “This trend – combined with lower job vacancy advertising numbers – indicates a risk that employment will be weaker in the first half of this year versus previous years,” Koukoulas said.        <img src="https://ci3.googleusercontent.com/proxy/5_PXx_mfrsOnYwep55QO0q4W2B8Ghup7SDytJG92y9i9uMgMlr3E06ZaOfSYGdSC_9a_nRaOLIrB4VT0mi6Ll6r5UhoQpSOJp2x40ohsTmrypEMuXbtqr5FYaiKHo121x-Qk4I-tbxjp4VJaGjMImWWZii9dJWoslZs=s0-d-e1-ft#https://gallery.mailchimp.com/cc5e9bce699fa1d71a67cf499/images/82b136ff-b0b6-4e3b-bfa6-d84b2ff9d648.png" width="550" height="382"> Cooke said the results aren’t all gloom and doom. “With house prices continuing to tumble, the outlook for housing affordability remains strong. “It’s true some lenders are making out-of-cycle rate hikes – we’ve seen 96 i<a href="https://protect-au.mimecast.com/s/rzkpCE8w82hWZZpgFp6ssI?domain=finder.us9.list-manage.com" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://protect-au.mimecast.com/s/rzkpCE8w82hWZZpgFp6ssI?domain%3Dfinder.us9.list-manage.com&amp;source=gmail&amp;ust=1549307762489000&amp;usg=AFQjCNHKpyCRSjUveLfLU96MBZVAB7QunQ">n the </a><a href="https://protect-au.mimecast.com/s/lMzUCGv0v2sJzzA0CQwB-C?domain=finder.us9.list-manage.com" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://protect-au.mimecast.com/s/lMzUCGv0v2sJzzA0CQwB-C?domain%3Dfinder.us9.list-manage.com&amp;source=gmail&amp;ust=1549307762489000&amp;usg=AFQjCNExrbXqujboxTfDArQUy2YXJpYoFw">loans we compare on Finder</a> so far this year – but not all banks are raising rates. In fact we’ve also seen 69 lenders cut rates. “The bottom line is if you’re looking to buy now, it’s overwhelmingly a buyer’s market. Use your bargaining power and look for value before you buy,” Cooke said.       <img src="https://ci4.googleusercontent.com/proxy/kpJqBzCgbPeX5NZzFJOP3U_BaptvJcaG5I4ZczF0wQ5Lmyd8JHTObAXDUApObu4ZJZxZYeutkcvEDGEe40Zd85JDnCP5d4y-d53RaSZvNy-eU8l0az_BfD1yBrA6H92JEIEoXUdCvR4y5yIfyoODMhkAqYTaWCCqwrs=s0-d-e1-ft#https://gallery.mailchimp.com/cc5e9bce699fa1d71a67cf499/images/ede2ba44-596b-4d3d-b21e-79a352b72bf9.png" width="550" height="358"> Here’s what our experts had to say: Shane Oliver, AMP Capital: "While economic data has generally been soft since the last Board meeting in December, it's unlikely to have been weak enough yet to prompt the RBA to cut rates, particularly given that its bias has still been to raise rates." Alison Booth, ANU: "The fundamentals have not yet altered sufficiently to warrant [the RBA] to change." John Hewson, ANU: "Data uncertainty and concern economy is slowing." Malcolm Wood, Baillieu: "Underlying inflation is below the low end of the RBA's target band and underlying economic momentum appears to be deteriorating." Ben Udy, Capital Economics: "The housing downturn is becoming more severe and will weigh on the economy over 2019. But given the labour market remains in good shape for now, we suspect the RBA will remain on hold for the time being." Michael Blythe, CBA: "Reasonable economic backdrop says next move is probably up.  But low inflation means no hurry to act." Trent Wiltshire, Domain: "The RBA is very reluctant to cut rates. Despite some weak economic data since the December meeting the RBA will maintain a fairly optimistic outlook for the economy." Peter Gilmore, Gateway Bank: "Growth is still likely to be above trend." Mark Brimble, Griffith Uni: "There is little net direction from indicators, with an overall bias to more support being needed given the out of cycle increases of rates by institutions." Tim Nelson, Griffith University: "There is no strong case for an adjustment of monetary policy." Peter Haller, Heritage Bank: "Economic conditions have not materially changed since the previous RBA meeting in December and there is no basis for a change at this time." Tim Reardon, Housing Industry Association: "GDP remains solid. Unemployment low and no evidence of inflationary pressure." Michael Witts, ING: "Despite the increased market talk about the prospect of an easier stance from the RBA, if this scenario is to emerge it is likely to be around mid year. Underlying economic data remains positive for the time being." Peter Boehm, KVB Kunlun: "No reason to move rates at this stage." Leanne Pilkington, Laing+Simmons: "Some economists now believe the next official rate movement will be down instead of up. The Reserve Bank will need firm justification as a move either way will be heavily scrutinised. We don’t see any justification to adjust rates at this time." Stephen Koukoulas, Market Economics: "It will acknowledge the economy is weaker than when it last met and will signal a change in bias towards an easing. It may wait a month or two before acting on that bias." John Caelli, ME Bank: "Given low unemployment and wages are starting to rise, the Reserve Bank is unlikely to cut rates in the near term. Likewise, with house prices continuing to fall, tightening credit, and CPI below the target band, a rise in the cash rate is also unlikely. It’s wait and see for now." Michael Yardney, Metropole Property Strategists: "The jobs growth figures for December will give the RBA comfort at a time of slower local economic growth and difficult world economic circumstances. With no wages growth and our challenging property markets and the real likelihood of further falls in property values especially in Sydney and Melbourne, the RBA will now have to seriously consider the option of lowering rates this year." Mark Crosby, Monash University: "While the international situation is deteriorating, there is no reason to move rates at the February meeting." Jacqueline Dearle, Mortgage Choice: "As wages continue to flat line and spending appears to be fuelled by a mix of credit and savings, consumers may be entering 2019 with a slightly pessimistic view. Continued low inflation, that’s sitting below Governor Lowe’s target; and the softening property market coupled with the tightened lending environment, only adds to disappointing Australian GDP/economic and global concerns stemming from Trump’s trade war with China. The upcoming federal election also adds a feeling of stasis to lacklustre economic data. In February, a myriad of signposts continue to suggest rates remaining on hold but down the track the next move in the cash rate could well be downward. However this could impact on the Aussie dollar, giving the RBA a lot of big issues to consider as the New Year kicks off." Dr Andrew Wilson, My Housing Market: "Although recent data is clearly increasing the chances of a near-term cut in official rates, recent statements by the RBA continue to indicate an ongoing conservative stance on rate settings. This however is likely to change if GDP data to be released on March 6 is again disappointing. In those circumstances the RBA will be motivated to cut rates  - particularly prior to the onset of a likely lengthy federal election campaign." Matthew Peter, QIC: "The market is now pricing the next move of the RBA to be a 0.25% cut sometime in early 2020 as China slows and the housing market continues to correct. These headwinds are yet to derail the economy, as shown by the strong December labour market data. The RBA will stay on hold until 2020, but failing a crash in China and the housing market, the next move in rates will be up." Noel Whittaker, QUT: "There is no way they will increase them with the housing market the way it is – and I can't see them reducing them." Nerida Conisbee, REA Group: "Economic data coming out is still too mixed to make a decision to move rates. While CPI remains low, and GDP growth in September was lower than expected, unemployment is now at just 5%. In Sydney, it is at its lowest rate since 1974." Christine Williams, Smarter Property Investing P/L: "The economy is not as strong as expected.  Also I believe the RBA is waiting for Royal Commission Report to be released." Janu Chan, St.George Bank: "There continues to be strength in the labour market. However, the downside risks for the global economy has increased. The Australian economy is also not growing as strongly as previously thought. The balance of these risks suggests the RBA could tone down its stance of the next move being up but to remain on hold for some time. However, not likely to the extent that the RBA will be ready to lower rates." Richard Holden, UNSW: "No chance they raise given housing and inflation."
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RBA to hold rates in February, but 2019 cut prospect looms

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The Strata Community Association (Vic) general manager Rob Beck says Melbourne’s Spencer Street fire highlights the urgency for State Government to regulate combustible cladding material.
SCA Victoria is the peak body overseeing Victoria’s $300 billion strata sector.
It supporting more than 80% of all owners corporation management firms and represent more than 650 owners corporation professionals who manage approximately 375,000 lots. 
Beck says the "anywhere, anytime" nature of Melbourne’s defective building problem, highlights the need for stricter construction industry regulation.
“The quick action of fire fighters today brought a potentially deadly situation under control.
"The need for combustible cladding and other defective building materials to be regulated can no longer be denied,” Mr Beck said.
 
 
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Strata boss says apartment aluminum cladding must be regulated

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Knight Frank’s latest report, Chinese Developers in Australia – Market Insight 2019, has found that 31% of Australian development sites in 2018 were bought by Chinese developers who purchased $1.3 billion worth of Australian residential development sites in 2018.
This figure was down from <a href="/expert-insights/investing/one-third-of-australian-development-site-sales-in-2017-to-chinese">$2.02 billion in 2017</a>, or one-third of all site sales.
Of all Australian sites purchased by Chinese developers and investors in 2018, 41% were suited to low density (single dwellings or landed properties) – up from 29% in 2017 and just 2% in 2013.
According to Knight Frank’s Head of Residential Research, Australia Michelle Ciesielski, over the past five years, Chinese developers have significantly ramped up their presence building landmark residential towers around the world – including along the skyline of the Australian east coast.
“Chinese developers and investors purchased $1.3 billion worth of Australian residential development sites last year. This was down substantially from the $2.02 billion recorded a year earlier, although the share of total sales fell only slightly from 33% - reflecting a wider, slower-paced market.”
<img src="https://www.urban.com.au/images/2019/2/5/Knight%20Frank%20China%20Chart.JPG" alt="">
Ciesielski said there is no denying Chinese developers have met with challenges throughout this time.
“From the Chinese government attempting to moderate capital outflow, to locally, the impact when major domestic banks restricted lending to offshore borrowers which limited the ability to rely on deep databases with clients familiar with projects in their home towns – all of this has had an impact on Chinese outbound investment.
“In addition, changes to Foreign Investment Review Board (FIRB) rules and the Australian Prudential Regulation Authority (APRA) encouraging stricter lending practices for investors cooling off-the-plan presales, not to mention the introduction for state-based surcharges – all current challenges also being faced by local developers.”
According to Knight Frank’s Partner, Head of Asian Markets, Australia Dominic Ong, the majority of Chinese developers who have entered the Australian landscape are settling in for the long haul – now diversifying their portfolios to adapt to local market trends.
“Over the past year, the likes of Zone Q, China Poly Group, Yuhu Group and Aqualand have increased their exposure to office assets and this trend is likely to continue in 2019.
“In addition, Chinese developers are shifting weight towards lower-density residential with 41% of sites purchased suiting low-density in 2018 – up from 29% in 2017,” said Ong.
The report also found that almost 11% of all new apartments – out of 5,160 apartments built in 2018 – were by Chinese developers, with this share projected to rise to 22% in 2021 for the major Australian cities.
According to Ciesielski, these new apartments were concentrated on the major east coast cities of Brisbane, Sydney and Melbourne.
“This includes those projects which have already commenced, and those with development approval which are currently being marketed. With current headwinds heading into 2019, the likelihood of all projects proposed by Chinese developers going ahead over the next couple of years is diminishing, except those with an exceptional product.
“Projects submitted for development approval and those already with approval, but not yet having started marketing campaigns, tend to taper off substantially for Chinese developers – with less than 6% of total projects in the pipeline.
“Going forward, developers – both Chinese and local – must hold realistic expectations following a residential market in correction mode after a lengthy period of significant growth. It will be imperative proper time is allocated to strengthen their position in the market for when the time to proceed arrives,” concluded Ciesielski.
In 2016 Chinese developers and investors purchased $2.4 billion worth of Australian residential development sites, some 9.4%% stronger than 2015.
The figure was up by 36% from 2012.
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Australian development site sales to Chinese slump: Knight Frank

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National residential listings only declined marginally by 0.03% in January 2019 to 328,089 from 328,203 in December 2018, according to figures released by SQM Research.
The figures show both Sydney and Melbourne were down 2.3%, whilst Canberra dropped 2%. 
However, all other capital cities had marginal increases in residential listings for January. Hobart recorded the largest increase at 1.4%.
Seasonally it is normal for large listing declines to be recorded in January as the property market goes into hibernation for the holiday period.
So SQM Research's Louis Christopher regards the minimal declines as a weak result for the market.
Compared to a year ago, national listings rose 8%, with Sydney, Melbourne and Canberra’s year-on-year listings increasing the most - Melbourne up 42.3%, Canberra 24.6% and Sydney 22.3%.
Year-on-year results for Hobart shows a yearly decline of 1.9%, with residential property listings dropping from 2,362 in January 2018 to 2,318 in January 2019. Darwin also experienced yearly declines of sale listings of 0.6%.
Louis Christopher, Managing Director of SQM Research said, “listings in January recorded a very minor decrease, with some cities actually recording increases."
"This is abnormal and concerning. It implies that vendors had a terrible spring selling season with most still trying to move their properties in January."
"Many have not been able to sell. We are now expecting a surge in listings over February,” he added.
<img src="https://www.urban.com.au/images/2019/2/5/SQM%20chart%201.JPG" alt="">
(Source: SQM Research)
SQM also found that capital city asking prices for units and houses declined by 0.4% and 2.2% respectively, for the month to 5 February 2019.
Unit asking prices are now $572,800 and houses $915,900.
The largest monthly decline was in Sydney, where house asking prices declined by 1.7% but did manage a modest 0.3% increase in house prices.
Hobart posted increases in both unit and house asking prices over the month, 1.7% and 0.1% respectively.
However, both unit and house asking prices declined in Brisbane and Melbourne over the month.
Darwin experienced a notable 5.5% increase in unit prices.
Year-on-year capital city asking prices also experienced declines of 2.6% for units and 6.2% for houses.
Year-on-year Hobart continued to show the strongest growth for both houses and units with a 4.0% increase in houses and 7.0% for units.
Canberra also experienced yearly growth with 2.7% increase in houses and 3.8% increase in units.
<img src="https://www.urban.com.au/images/2019/2/5/SQM%20Chart%202.JPG" alt="">
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Both national property listings and capital city asking prices declined in January: SQM

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EXPERT OBSERVER
The volume of new apartment building is smaller than at any time since July 2012. 
Just released figures from the ABS show that new home building approvals lost another 8.4% during December 2018.
Detached house approvals were down by 2.1% but approvals for new apartments/units dropped by 18.6% during the month.
Today’s ABS figures complete the full 12-month picture for 2018. For the year overall, the volume of new home building approvals was pretty strong with over 212,000 permits issued for new dwellings.
This was down only modestly (-5.6%) compared with the 2017 total.
More worrying is the pace at which approvals have been falling back over more recent months.
During the final three months of 2018, total approvals were 23.7% lower than a year earlier – with apartment approvals suffering a 40.1% reduction over this period.
Faltering new home building activity has been occurring against the backdrop of falling house prices, the Royal Commission’s work and uncertainty about what housing policy will look like after May’s Federal Election.
Clearing up some of these uncertainties would help get the housing market back on its feet.
During December, new dwelling approvals increased in three markets including South Australia (+5.6%), the Northern Territory (+1.7%) and Western Australia (+1.1%).
The largest reduction in approvals hit Tasmania (-24.3%) followed by the ACT (-21.3%). The volume of approvals also declined in New South Wales (-8.6%), Victoria (-8.1%) and Queensland (-5.8%).
Shane Garrett is Master Builders Australia’s Chief Economist
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New apartments volumes weakest since mid 2012: Shane Garrett

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National real estate network @realty has signed a five year sponsorship with the Gold Coast Suns Football Club.
They are now the official sponsor of the team’s coaching staff.
@realty will be the Gold Coast Sun's exclusive real estate partner and senior coach Stuart Dew’s first corporate partner.
The partnership has been formed as @realty, which boasts 550-plus agents nationwide, prepares to expand its operations in to the Northern Territory, ACT and Tasmania in the coming months.
"@realty was established on the Gold Coast five years ago and we are headquartered in Surfers Paradise, so we wanted a brand alliance which reflected our roots but also our growing presence nationally," said James Taylor.
"We also look forward to working with the Gold Coast Suns to debut a number of exciting competitions, promotions and game day initiatives for fans all over Australia."
GC SUNS CEO Mark Evans said he was delighted to welcome a new partner to the club. “It’s been an exciting start to 2019 and it’s fantastic that the positive momentum continues by announcing a five-year partnership with @realty,” Evans said.
 
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@realty has signed a sponsorship deal with the Gold Coast Suns

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SQM's Louis Christopher has forecast dwelling prices across Sydney are likely to fall 6 percent to 9 percent during 2019. 
It will happen for the most part in the first half of the year, he suggests.
"There is a chance we may well see a bottoming out but that is dependent on a number of events which have not yet unfolded, for example we may see the RBA intervene in the market," he told a <a href="http://harrispartners.com.au/resources/videos" target="_blank">Harris Partners podcast</a>.
"It's looking increasingly likely that this will be a 15%-20% peak to trough decline."
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
Christopher described the inner west as a market "correctly fairly fiercely" because the market was overvalued.
"I think we will still see some fairly rapid falls," he said.
Christopher noted the ongoing crosschecking of loan applicants incomes and expenses.
"That will result in a number of potential buyers having less borrowing power.
"I fear there may be a second credit crunch playing out in 2019.
"If the RBA come to the view that these price drops could lead to an economic recession, it is likely they will cut rates to put a floor in the market place."
Louis Christopher is the <a href="http://sqmresearch.com.au/about-us.php" target="_blank">managing director at SQM Research.</a> 
 
 
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SQM's Louis Christopher affirms Sydney prices to fall 6 percent to 9 percent during 2019

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Raine &amp; Horne has lost the $1 billion sales agent Dib Chidiac, with the Sydney agent going independent.
He began his career with Raine &amp; Horne Concord and over 10 years rose through the ranks to become the national network’s No 1 agent for four consecutive years (2015-2018).
He says starting his own independent agency in 2019 was "a natural next step."
<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/2019/2/6/Dib%20Chidiac.jpg" alt="">
With $1 billion in local sales over 10 years, Dib Chidiac (pictured above) is known within the City of Canada Bay community as a market leader.
In 2018, he was recognised as one of Australia’s top performing agents with a No 28 ranking in the Real Estate Business (REB) Top 100 Agents.
He has averaged 100 home sales annually from apartments to prestige waterfront estates throughout the City of Canada Bay and the broader Inner West.
Several generations of the Chidiac family live locally and Dib is proud to carry on this tradition with his wife, Stephanie.
His suburb records include Cabarita at $6.05 million and Mortlake at $3.150 million.
His auction sales records include the highest residential price achieved under the hammer for the 2137/2138 postcode when $5.413 million was paid in Cabarita.
Dib’s personal career sales total $1 billion.
His auctioneer is Clarence White, a three time winner of the REINSW Award for Excellence in Auctioneering (2014, 2017, 2018).
White spent four years calling auctions for McGrath Estate Agents and a further two years for Bresic Whitney before establishing his own independent business in 2018. 
Paul Pettenon is the proprietor of Raine &amp; Horne Concord, having owned Raine &amp; Horne Concord since 1995 when it was a "small four man suburban office to now having 17 full time staff."
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Dib Chidiac quits Raine & Horne Concord to go independent 

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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