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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 

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

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Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
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