<html><body>
Buildings with high Green Star ratings are in demand in the commercial sector, but residential buyers have traditionally failed to see the value in properties with strong sustainability credentials. That’s something Investa Land general manager Victoria Paul O’Brien would like to change.
“Sustainability is a nice word but we are saying let’s get information out to people so they understand what it really is,” O’Brien told Property Observer.
O’Brien believes the residential property development industry has done a poor job of communicating the benefits of sustainable development to consumers.
Investa Land is part of the Investa Property Group, which also has office and funds management divisions.
In the office part of its business, Investa takes office buildings with low Green Star ratings and upgrades them to six star ratings by modifying various characteristics of the building such as design features and energy usage. O’Brien says similar principles can be applied in residential property sector.
Investa Land is working with Simonds Homes at Diggers Rest in Melbourne’s western suburbs to produce a 7-star rated house. The home will be used to demonstrate how sustainable principles can be applied to benefit home buyers through energy savings and minimising water usage.
Consumers will be able to see how much the additions would cost and what the payback periods would be for these features and initiatives.
O’Brien says the cost of adding sustainable features to one of the homes is typically between $5,000 and $9,000, depending on factors such as the orientation of the house.
He admits that first home buyers with tight budgets are unlikely to buy sustainable homes, but adds that second home buyers will be interested, especially when they learn about the payback periods.
O’Brien expects home owners to be able to recoup the upfront costs within around five or six years.
The costs of solar power installations have halved over the past few years, making it a more viable option, he says. The high price of electricity makes it more attractive for consumers to minimise or avoid power bills where possible.
“We are making sure that we get the costs out to people and that the payback makes sense. I think we have the ability to say you should take this up as an extra cost if you can afford it ... After five years you’re not going to get [an electricity] bill,” O’Brien says.
After the 7-star home has been launched later this year, Investa Land plans to work with a builder to develop an 8-star Green Star rated house. Work is expected to start on the 8-star home in 2015. The aim is that the sustainable features would add little more than $10,000 to the cost of the basic house.
Building products supplier CSR opened 8-star home at Schofields in Western Sydney in November 2012. That property is used as research and development facility by universities, the CSIRO, as well as CSR.
It includes a weather station on the roof and has more than 140 sensors that monitor heat flow, internal temperature and humidity conditions, ground temperature and moisture levels, and energy usage of lighting, heating and cooling equipment.
When selling properties to consumers, O’Brien says it’s not enough for sustainable housing to be efficient, environmentally friendly and cost effective. The homes and estates need to be desirable places to live.
“We are selling [home buyers] the dream that this is a really good place to live. For us, making the land visually attractive upfront helps you sell the estate,” O’Brien says.
Access to transport, jobs, parkland and amenities like schools, football fields, tennis courts and shops all feed into the appeal of an estate. Community factors, decided at a master planning level, also make a big difference to the sustainability of the estate.
Investa Land is partnering with local nurseries near its development at Diggers Rest and has negotiated for residents to get wholesale prices on plants. O’Brien aims to have a community garden up and running at the site in future.
Diggers Rest already receives Class B recycled water from the Sunbury Recycled Water Plant, which can be used to irrigate public and agricultural land, although not in residential homes.
Utility provider, Western Water, is installing infrastructure in preparation for delivering Class A recycled water for purposes such as flushing toilets, watering the garden and washing cars in future.
</body></html>

zfielding-GvX3Uq9KTa

Residential buyers failing to see the benefits of going green

<html><body>
Land developers in Sydney have been producing large numbers of new lots and charging more for land, but data from a specialist residential property researcher shows sales are now declining and could fall rapidly if pricing is not reduced.
Sales activity volumes in Sydney fell by 7% in the March quarter compared with the December quarter, Research4’s National Land Survey Program found. It was the first fall in activity levels since December 2012.
“We think the Sydney [land] market is going to moderate ... Where it goes from here will depend on how [developers] manage pricing,” Research4 director of strategic research Colin Keane told Property Observer.
“It’s either going to stabilise and fall away quietly, or drop quickly if they keep pushing prices up.”
On average across the Sydney market median lot pricing rose by 1.8% in the March quarter, Research4’s data shows.
In the city’s west and south west, median prices rose by 17% during the quarter.
Keane said the sizable jump in prices in those regions was mainly due to price rises at a development by Landcom and Greenfields Development Company at Oran Park, and at Stockland’s Willowdale.
Research4’s figures show median lot prices in Sydney’s North West rose by 7% in the March quarter, while median lot prices in the Lower Hunter fell by around 4%.
The median price for land across the Sydney region was $283,000 for a 516 square metre block, Keane said.
“We think the pricing is problematic in the Sydney market now,” he said. “I don’t think developers can push prices any further. The might have to take a hit and reduce their prices over the coming months.”
Land prices last fell in Sydney in September 2013, according to Research4’s data.
While prices have been rising, lot sizes have been falling so cost per square metre is at a record high, Keane said. In 2010, the median lot size was 600 square metres. In 2012 it was 550 square metres and now is it around 510 square metres.
Keane said land developers may not be aware that a problem was emerging, as the market was still good and customer cancellation rates were still very low.
“The market is still really good but I think now is a good time to start thinking about the next 12 months and the next 12 months is going to be tighter in terms of demand and [customers] are going to be looking at saving in pricing,” he said.
The Sydney land market has historically suffered from significant supply shortages, but Keane said since June 2013 the land market had been fully meeting underlying demand and exceeding demand in some locations.
“It used to be an issue five years ago but with the South West market coming online we have seen lots of land coming on the market,” he said.
Demand would also fall as net overseas migration into NSW and visa applications had moderated, while the number of loans issued to second home buyers was falling, Keane said.
Australian Bureau of Statistics housing finance figures for the month of March will be released on Tuesday May 13, but the February result showed the number of finance commitments for the purchase of new dwellings around Australia fell by 5% in seasonally adjusted terms compared with January.
On approvals for new dwellings, Housing Industry Association chief economist, Harley Dale said: “Building approvals for the month of March 2014 were consistent with healthy growth in new home building activity this year, although the approvals cycle itself may well have peaked.”
</body></html>

Sydney land sales could rapidly decline if prices not reduced warns researcher

<html><body>
Property and facilities management teams need to work collaboratively with information technology and human resources departments to create the most effective workplaces, according to a supplier of workplace technology.
Each department played a role in understanding how employees who work in a building use the space, in changing the environment to improve utilisation and in measuring responses to modifications, POMT director of strategy and development Jeremy Pollak said.
“It’s about finding what the right solution is for the different place-types in the organisation,” Pollak said.
He said there was no one-size-fits-all solution for every organisation as people with different jobs required different features in their workplace.
People who work as software engineers, for example, spend a lot of time at a desk, while business managers might spend most of their time in meetings.
Software development company Atlassian has been working with POMT on its designing and managing its offices.
Atlassian global head of real estate Brent Harman said the company had been reviewing its workplace design, taking cues from the way it develops software through iterative, regular, small updates.
“We are getting comfortable in our workplace and experience team that we are not going to be able to design an end state [for the offices]. We have to be comfortable in an environment of constant change,” Harman said.
Support from information technology departments was needed to ensure systems were implemented correctly, while human resources teams had to be involved in helping staff members adapt to change, Pollak said.
“In all projects we are trying to get people to feel comfortable with the technology. That starts with it being integrated within the design. It needs to be easy to use,” he said.
Demand is growing for room booking and management systems and space utilisation data as companies become increasingly interested in pursuing efficiency and reducing property costs.
Devices such as sensors that indicate when a desk is occupied are being installed in some corporate offices to monitor space usage.
Some companies were requiring staff to swipe a security card when they used a meeting room to indicate how many people attended meetings that had been booked into particular rooms.
These technologies supported new work methods such as activity based working and agile work practices, although they could also be used in more traditional work environments, Pollak said. 
</body></html>

Property and facilities management require collaboration for workplace efficiency

<html><body>
Mortgage rates below 5% are widely available given the cash rate has remained constant at a record low 2.5%.
Loans.com.au, for example, is offering a mortgage with a comparison rate of just 4.58%, according to RateCity.com.au. BankMecu is offering home loans at 4.7% and State Custodians has a mortgage with a comparison rate of 4.74%.
Such low interest rates, along with slowing property price appreciation, have made housing more affordable at a national level than it has been for more than a decade, according to the March 2014 quarter HIA-CBA Housing Affordability Index, released last week.
The index showed that across the country affordability was at its most favourable level since March 2002.
Affordability improved during the quarter in Sydney, Perth and the Australian Capital Territory, while it remained unchanged in Melbourne. Affordability also improved in regional markets in Western Australia, New South Wales and South Australia.
Properties in Adelaide, Hobart and Brisbane, as well as regional areas of Tasmania, Queensland and Victoria became less affordable, the index showed.
In its affordability calculations, the index uses the Reserve Bank of Australia’s indicator lending rate for the discounted variable rate of all bank loans available to homeowners.
The interest rate used in the March quarter was 5.1%. At that interest rate, monthly repayments on a $350,000 mortgage taken over 25 years are just $2,067, according to RateCity.com.au’s home loan calculator.
While most economists agree there’s little chance of an interest rate rise in the near term, many expect rates to be lifted at some point within the next 18 months.
Variable rate loans are still the most popular type, despite the increasing take up of fixed rate mortgages. This means most people who take out a home loan are fully exposed to fluctuations in lenders’ mortgage rates.
The probability that rates will rise means it is important for borrowers to consider higher interest rates in future when taking out a mortgage.
In the March quarter of 2013, the indicator lending rate was 5.67% and the year before that it was 6.67%.
The same $350,000 mortgage, over 25 years at a 5.67% interest rate would cost $2,185 a month – $118 more than the indicator rate in March 2014.
If rates go back up to 6.67%, as they were two years ago when the official cash rate was 4.25%, monthly repayments would rise to $2401 – $334 a month above current levels.
Over a 25 year period, interest rates will change dramatically. Between mid-1989 and early 1990, banks were charging an average of 17% on standard variable owner-occupied mortgages, according to the Australian Bureau of Statistics. Some commentators say there has been a structural shift in interest rate movements that would prevent rates from reaching those levels again, but higher rates than the existing levels are considered more normal.
As recently as mid-2008, the indicator lending rate for bank discounted variable rates was at 8.95%. Repayments on the $350,000 loan back then would have been $2,925 a month. That’s $858 a month more than the cost at current prevailing interest rates, which could cause significant affordability problems for borrowers who have not planned ahead.
Housing affordability index
<img src="/images/2014/06/02/zoe-june-2-one.jpg" alt="">
* Annualised
Source: HIA-Commonwealth Bank Housing Affordability Index* Annualised
</body></html>

Thanks to low interest rates, affordability at highest level for over a decade: HIA-CBA index

<html><body>
One quarter of Australian home owners either over or underestimate the value of their property by more than 20%, a study conducted recently by the Reserve Bank of Australia has found.
On average, home owners appeared to have a good idea of the value of their properties, with half of people estimating the price of their home to within 11% of the actual average market value for their area, the study, <a href="https://www.rba.gov.au/publications/rdp/2014/pdf/rdp2014-04.pdf" target="_blank">Home Price Beliefs in Australia</a>, conducted by Callan Windsor, Gianni La Cava and James Hansen in the RBA’s economic research department, found.
However, the study noted the average results were partly due to offsetting numbers of home owners who overvalued and undervalued their properties.
“At any point in time, some postcodes have self-assessed valuations that appear high relative to market-inferred prices while some postcodes have valuations that appear low relative to market-inferred prices, on average,” the report noted.
Home owners in Sydney and Brisbane tended to overvalue their properties on average, while Melbourne home owners on average undervalued their properties.
Factors such as the owners’ age, the length of time they had lived in their home, and local area characteristics such as regional unemployment rates had the potential to bias the owners’ views on the value of their property, the study showed.
In general, older home owners were more prone to overvaluing their property.
People who had lived in their home for longer were less likely to be overly optimistic about the value of their property, which the study put down to the owners’ knowledge of the market and experience.
People who lived in areas of high unemployment tended to undervalue their homes.
The study also found that home owners who overvalued their property spent more and were more highly leveraged than people who had a more realistic view of their home’s value. Home owners who undervalued their properties spent less and carried lower levels of debt.
The authors said the findings showed beliefs about home values affected household financial decisions.
</body></html>

Think you know how much your home is worth? Research suggests a lot of Aussies are well off the mark

<html><body>
The regulator that oversees Australian banks and other deposit-taking institutions has released for consultation a draft guide to sound risk management practices for residential mortgage lending.
The paper comes amid warnings that banks’ bad debts are at “unsustainably low levels” and are likely to rise when interest rates are lifted.
The Australian Prudential Regulation Authority’s (APRA) draft prudential practice guide notes that while Australian lenders have experienced low default and loss rates on home mortgages, the strong economy, low interest rates and rising house prices could lead to complacency among lenders.
Residential mortgages account for about half of the assets of the four major banks, the Reserve Bank of Australia estimated in its submission to the Financial Services Inquiry in March.
Each of the major banks reported low levels of bad debts during the recent reporting season.
Morningstar head of Australian banking research David Ellis said the big four banks had been performing strongly and could continue to do so through to the 2015-16 financial year. However, he warned the banks’ bad debts were at “unsustainably low levels”.
“I can’t see that bad debt level declining much further ... it can only go up from here,” he told Property Observer.
Rising interest rates would be the catalyst for increasing default levels in lenders’ mortgage books, Ellis said.
APRA’s draft guide suggests residential mortgage lenders should have policies in place that address their risk appetite and risk management strategies for loans.
It says they should ensure they can identify and control risks in their residential mortgage lending portfolios. It also sets out suggestions for managing loan origination, including assessing the borrower’s capacity to service the debt, verifying income, living expenses and other debt commitments.
The paper outlines good practices for remunerating mortgage brokers that would allow the lender to end or claw back commissions where there were high levels of delinquency. It also suggested lenders should set up systems to prevent brokers from pursuing loans with inadequate or false verification, marginal serviceability, excessive leverage or unsuitable terms for the borrower.
Ellis said that while rising mortgage rates would increase bad debts to banks, it was unlikely that their businesses would harmed overall.
“Higher interest rates mean a stronger economy and a stronger economy means more banking activity which means more profit [for the banks],” Ellis said. “While bad debts will increase, headline profits will also improve.”
Many borrowers are ahead on their mortgage repayments at present. Commonwealth Bank reported recently that 78% of its loan customers had paid in advance by an average of seven months, while Westpac reported around 70% of its loan customers were ahead of their required payment schedules.
APRA has called for comment on its draft guide by July 21, 2014. 
</body></html>

Banking regulator suggests mortgage lenders must address risk management strategies

<html><body>
Developers are putting little effort into building more sustainable residential properties due to a lack of consumer demand, industry leaders have said.
People buying houses in new residential developments typically planned to live in the property for only up to five years, which limited the payback period for environmentally friendly features, CSR managing director Rob Sindel said.
“They say ‘I’ll worry about the environmental stuff when I can afford it’,” he said at a Green Building Council of Australia breakfast meeting last week.
Consumers were more interested in features such as granite bench tops, high-end appliances and automatic garage doors than in energy or water saving measures. Marketing companies that sold newly developed residences promoted lifestyle benefits rather than sustainability, Sindel said.
Developers of multi-unit residences also faced challenges to building more sustainable dwellings, Leighton Properties managing director Mark Gray said.
Like buyers of freestanding homes, people who bought into multi-unit developments were attracted to the precinct’s amenities and community.
Gray said there were opportunities for precinct-based initiatives, where measures were installed to improve the sustainability of the entire multi-residential development, but these could be hampered by service authorities.
“Service authorities are sources of great frustration for developers as they [the service authorities] don’t like change whatsoever. They don’t like individual precincts, they want control over everything,” he said.
Gray said to overcome the barriers to increased adoption of sustainable principles in residential construction, there was a need for further awareness and education in the community to boost demand.
“Unless we get people a lot younger and educate people at a much earlier age, we won’t get the outcomes that we all desire,” Gray said.
Dexus Property Group executive general manager, property services and chief operating officer Tanya Cox said the frequency of changes to public policy surrounding green building initiatives was a challenge to all sustainable development.
“Property is a long-term investment and long term investment businesses need policy stability,” she said.
She added that the politics of the climate change debate had made it more difficult for green building to gain traction.
“The conversation has changed from reducing excesses and pollution – we know that pollution is bad for the environment. Whether climate change is man-made has made the conversation much more difficult for us,” Cox said.
In addition to their roles as business leaders, Sindel, Gray and Cox are board members of the Green Building Council of Australia. 
</body></html>

Lack of consumer demand for sustainable residential property

<html><body>
Many economists are tipping the official cash interest rate will stay on hold for several months to come.
Financial market indicators also suggest there are strong expectations of interest rate stability, with a small chance of further cuts.
As late as Thursday 1 May, just days before the latest RBA cash rate announcement, the ASX 30 Day Interbank Cash Rate Futures May 2014 contract (which shows market expectations of an RBA interest rate change) was trading at 97.505. That indicates financial market participants thought there was a 98% chance that interest rates would be left on hold and a 2% chance of a cut to 2.25% at today’s RBA Board meeting.
For mortgage holders, low interest rates are providing opportunities to save considerable sums on their home loans.
Several lenders have cut mortgage rates since the start of this year, while the RBA has left the cash rate untouched at 2.5% since August 2013.
At least seven lenders have cut mortgage rates on their variable loans, according to Finder.com.au. The comparison website found Yellow Brick Road, ANZ, Bank of Queensland, Citibank, Homeloans, HSBC and Westpac had all cut their variable rates since January 1. At the end of April, <a href="https://loans.com.au/">Loans.com.au</a> was advertising an ongoing variable rate of just 4.49% on its Dream Home Loan, Finder.com.au reported.
However, <a href="https://finder.com.au/" target="_blank">Finder.com.au</a> money expert Michelle Hutchison says three-year fixed rates are still lower on average than variable rate home loans.
The RBA’s indicator rate for a three-year fixed rate mortgage dropped to 5.2% in March from 5.25% in February, the latest RBA statistics show. The average three-year rate available to consumers is a little lower, at 5.11%, according to Finder.com.au.
History shows lenders typically pre-empt movements in the official cash rate with their fixed rate home loans, so by the time the RBA starts lifting rates, the fixed mortgage rates available to borrowers have already reached their bottom and started to trend higher (See chart).
<img src="/images/2014/05/02/zoe-may-2-one.jpg" alt=""> 
Source: RBA
“If you're worried about interest rates rising in the next few years it might be time to consider locking in a fixed rate,” Hutchison says.
Property Observer asked Finder.com.au to crunch the numbers on the cost over the next four years of taking out a fixed rate home loan now, compared with taking out a variable rate loan.
"The average three-year fixed rate is 5.11% while the average variable rate is 5.39%,” Hutchison says. “If variable interest rates increased back to normal levels of around 7% in four years, borrowers could be better off fixing.”
For this example, we assumed that the average variable interest rate available to consumers of 5.39% would remain in place for 12 months. After that time frame, we assumed interest rates would rise by 0.25 basis points every six months for remaining three years.
We compared that variable rate loan to a mortgage with the average three-year fixed rate of 5.11%. At the end of the three years, we assumed the interest rate for the fixed rate mortgage would revert to the same variable rate as the variable loan in the example: so 6.64% after three years, and then lifting to 6.89% for the last six months of the four year period.
Both sets of figures were calculated based on a loan with an initial size of $300,000.
Results
According to Finder.com.au’s sums, the total cost over four years of the variable loan above was $93,246.
The total cost for the three-year fixed loan, reverting to the average variable loan rate at the end of the fixed period, was $88,732.
In this example, the three-year fixed rate loan would cost $4,514 less than the variable rate loan.
Of course, the results will vary if these assumptions on interest rate movements are off the mark.
Plus, there are other considerations when deciding between a fixed and variable rate mortgage, such as the flexibility to make additional repayments with the view of paying off the loan more quickly, which is usually only possible with a variable rate loan.
We’ve also excluded the affect of fees, and have ignored any other features that might be available with one loan but not the other.
In general, if it’s cost alone that you’re looking at, fixing the rate might still make sense. 
</body></html>

Analysis: Is it worth fixing your home loan?

<html><body>
Australians earned more than $33.5 billion in rental income on investment properties and claimed more than $41.5 billion in tax deductions against those properties in the 2011-12 tax year, according to the latest Australian Taxation Office figures.
The total of $8 billion in net losses claimed in the 2011-12 financial year was a slight increase on the $7.9 billion claimed in 2010-11, ATO figures taken from rental property schedules show.
Investment property owners in NSW earned the largest total rental income, bringing in almost $11.6 billion in rent combined, followed by investors in Queensland property, who earned more than $7.9 billion in total rent.
After deductions, however, NSW investors claimed an average loss of just $1,484 on average, while Queensland investors claimed average investment losses of $4,860.
The data is based on rental property schedules so it does not reflect the total number of properties or individuals with a rental property as the same property can have more than one owners and an individual can own more than one rental property.
Interest on loans accounted for the biggest value of deductions by far, with a total of over $24.1 billion in interest expenses claimed in the 2011-12 tax year. That was up from $22.3 billion in the previous tax year.
Council rates were the next biggest ticket item for deductions, although the total claimed in 2011-12 was only $2.36 billion.
Capital works deductions, repairs and maintenance, plant depreciation, and property agent fees and commissions were other major categories of tax deduction.
The figures have fuelled further debate about the costs of negative gearing and the merits of allowing investors to claim sizeable deductions against their rental properties.
The National Commission of Audit report, released last week, did not recommend negative gearing be removed and the government is not expected to tamper with negative gearing in next week’s Federal Budget.
However, Federal Treasurer Joe Hockey has previously indicated that negative gearing would be addressed in a white paper on taxation, which would also consider changes to income tax and the GST.
</body></html>

Australians claimed $8 billion in net losses on investment properties in 2011-12 financial year

<html><body>
Confidence in the outlook for the construction industry has hit its highest level since March 2008, although it will take time for improving conditions to translate into new jobs in the sector, a national survey has revealed.
Confidence improved in the March quarter across all measures of business activity and expected profitability, the Master Builders National Survey of Building and Construction, released last week, found.
Builders surveyed reported improvements in sales contracts, display centre enquiries and work on books compared with the previous quarter.
The index for builders’ own business activity rose in March for the third consecutive quarter, reaching 62.8, well above the neutral 50 point mark. This indicated builders expected business activity to pick up over the next six months, Peter Jones Master Builders chief economist said.
“This is particularly reflective of the residential building sector’s response to low [interest] rates and is an encouraging trend,” Jones said.
The Master Builders Association expects improvements in the outlook for work to increase margins and profitability, allowing builders to consider hiring employees and sub-contractors.
However, the index for hiring intentions in the sector rose to only a neutral level of 50.2, indicating most employers surveyed would keep headcounts level in the next six months. Demand for apprentices increased slightly, with 22.2% saying they planned to hire new apprentices.
The survey showed the availability of labour in the sector has increased, with builders having little difficulty in finding staff across all categories of worker. There were particularly high levels of availability of electricians, painters and building consultants.
The Master Builders Association noted that as the business cycle turned and conditions improved, it was likely that builders would once again experience some difficulty in finding certain types of sub-contractors and employees.
A separate study by the Department of Employment, also released last week, showed the number of job advertisements for construction trade workers increased by 2% in March compared with the previous month.
Over the year to March 2014, job ads for construction workers were up by 33.7%, according to the Internet Vacancy Index, which counts online job ads newly lodged on SEEK, MyCareer, CareerOne and Australian JobSearch during the month, although the increase came from a low base.
National availability of labour (index)
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="154">
Role
</td>
<td valign="top" width="154">
Sep-13
</td>
<td valign="top" width="154">
Dec-13
</td>
<td valign="top" width="154">
Mar-14
</td>
</tr>
<tr>
<td valign="top" width="154">
Site Manager
</td>
<td valign="top" width="154">
23.7
</td>
<td valign="top" width="154">
34.8
</td>
<td valign="top" width="154">
29.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Project Manager
</td>
<td valign="top" width="154">
33.7
</td>
<td valign="top" width="154">
33.9
</td>
<td valign="top" width="154">
26.0
</td>
</tr>
<tr>
<td valign="top" width="154">
Foreman/Supervisor
</td>
<td valign="top" width="154">
32.7
</td>
<td valign="top" width="154">
34.1
</td>
<td valign="top" width="154">
23.9
</td>
</tr>
<tr>
<td valign="top" width="154">
Concretors
</td>
<td valign="top" width="154">
16.3
</td>
<td valign="top" width="154">
22.9
</td>
<td valign="top" width="154">
19.0
</td>
</tr>
<tr>
<td valign="top" width="154">
Bricklayers
</td>
<td valign="top" width="154">
18.3
</td>
<td valign="top" width="154">
31.6
</td>
<td valign="top" width="154">
18.5
</td>
</tr>
<tr>
<td valign="top" width="154">
Steel Fixers
</td>
<td valign="top" width="154">
17.4
</td>
<td valign="top" width="154">
26.8
</td>
<td valign="top" width="154">
15.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Office Staff
</td>
<td valign="top" width="154">
16.3
</td>
<td valign="top" width="154">
18.4
</td>
<td valign="top" width="154">
15.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Tilers – Wall and Floor
</td>
<td valign="top" width="154">
15.6
</td>
<td valign="top" width="154">
26.6
</td>
<td valign="top" width="154">
14.7
</td>
</tr>
<tr>
<td valign="top" width="154">
Plaster Fixers
</td>
<td valign="top" width="154">
14.8
</td>
<td valign="top" width="154">
17.1
</td>
<td valign="top" width="154">
13.8
</td>
</tr>
<tr>
<td valign="top" width="154">
Carpenters
</td>
<td valign="top" width="154">
20.3
</td>
<td valign="top" width="154">
22.2
</td>
<td valign="top" width="154">
13.7
</td>
</tr>
<tr>
<td valign="top" width="154">
Scaffolders
</td>
<td valign="top" width="154">
11.1
</td>
<td valign="top" width="154">
15.9
</td>
<td valign="top" width="154">
11.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Labourers
</td>
<td valign="top" width="154">
12.5
</td>
<td valign="top" width="154">
21.0
</td>
<td valign="top" width="154">
10.3
</td>
</tr>
<tr>
<td valign="top" width="154">
Tilers – Roof
</td>
<td valign="top" width="154">
12.3
</td>
<td valign="top" width="154">
14.1
</td>
<td valign="top" width="154">
9.8
</td>
</tr>
<tr>
<td valign="top" width="154">
Building Consultants
</td>
<td valign="top" width="154">
14.3
</td>
<td valign="top" width="154">
16.5
</td>
<td valign="top" width="154">
9.2
</td>
</tr>
<tr>
<td valign="top" width="154">
Painters
</td>
<td valign="top" width="154">
9.6
</td>
<td valign="top" width="154">
17.1
</td>
<td valign="top" width="154">
8.2
</td>
</tr>
<tr>
<td valign="top" width="154">
Electricians
</td>
<td valign="top" width="154">
15.1
</td>
<td valign="top" width="154">
15.3
</td>
<td valign="top" width="154">
7.1
</td>
</tr>
</tbody></table>
Note: Respondents are asked about the degree of difficulty in finding a range of subcontractors/employees. The higher the index, the more builders are experiencing large difficulty in finding employees or sub-contractors. A low index reading indicates slight or no difficulty in finding subcontractors/employees.
Source: Master Builders Association 'National Survey of Building and Construction' (March 2014).
</body></html>

Confidence in construction industry at highest point since GFC

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

Joel Robinson

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]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

Zoe Fielding

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News