<html><body>
The NSW government has fast-tracked the release of revised strata laws after agreeing in February to delay the process to allow more time for the sweeping changes proposed to be considered. 
NSW Fair Trading Minister Stuart Ayres said the government had managed to draft the bills more quickly than expected and would next week release them for limited consultation for a period of four weeks.
“The timelines are tight but we are aiming to be in a position to introduce these bills into Parliament this financial year,” Ayres said. 
In February, stakeholders demanded a delay to the process of at least six months to give the state government more time to get new legislation right.
More than 70 reforms have been put forward as part of the proposed changes, which Owners Corporation Network chair Stephen Goddard previously described as “the most significant social reforms in strata since 1961”. 
The proposed reforms aim to ensure defects in new strata buildings are quickly identified and fixed, and provide a way to terminate strata plans to make it easier to redevelop existing strata buildings.
They are also intended to improve decision making and dispute resolution in strata communities; protect individuals from unfair practices; and improve transparency and accountability in strata management, including the use of proxies and disclosing potential conflicts of interest. 
Subject to the passage of the bills, regulations will now be drafted over the second half of 2014.
“It is important the legislation is presented to Parliament as soon as possible, to provide industry and community stakeholders with sufficient time to prepare for its commencement,” Ayres said. 
“Although the date for introducing the bills to Parliament has been brought forward, the consultation period provided to stakeholders remains unchanged.”
Discussions with stakeholders have been under way for several months. NSW Fair Trading released a <a href="https://www.fairtrading.nsw.gov.au/biz_res/ftweb/pdfs/About_us/Have_your_say/Strata_title_law_reform_position_paper.pdf" target="_blank">position paper</a> on strata title law reform<a href="https://www.propertyobserver.com.au/trends/strata-law-changes-will-have-a-big-impact-on-the-residential-market-in-2014/2013121666961" target="_blank"> in November 2013</a>. 
There are more than 72,000 strata schemes in NSW and more than one quarter of the NSW population lives in a strata scheme. There are more than 1,500 licensed strata managing agents.
“Within 20 years, 50% of the State’s population will be living or working in strata.  It is therefore critical we modernise the legislation to make NSW number one again,” Ayres said.
</body></html>

zfielding-GvX3Uq9KTa

NSW government fast-track revised strata laws

<html><body>
There have been few Google searches for the term “first home buyer” over the past few years with that segment of buyers increasingly dropping out of the market.
<img width="470" height="196" src="/images/stories/2014/02/28/fhb-analysis-chart-feb-28.gif" alt="fhb-analysis-chart-feb-28"> 
Plotting Google searches on the term “first home buyer” compared with Australian Bureau of Statistics data on the proportion of home mortgages taken out by first-time buyers shows a fall in interest in the search term corresponding to the drop in buyers. Related phrases such as first home owner grant yield similar results.
The peak in first home buyer activity in 2009 was preceded by a clear spike in internet searches on the subject.
There was a minor lift in the number of searches on first home buyers around mid-2012, in line with a slight lift in buyer numbers, but aside from that blip, the term has been as absent from Google searches as the buyers have been from the market.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
                                     
</body></html>

Amount of first home buyers searches dropping in more ways than one

<html><body>
South African-listed Investec Australia Property Fund has bought an A-grade office building at Eight Mile Plains south of Brisbane in an off-market transaction.
The fully tenanted property was purchased on an 8.25 per cent yield for $20.9 million from Office Park Developers.
IAPF chief executive Graeme Katz told Property Observer the building fit within the original mandate set for the fund when it listed on the Johannesburg Stock Exchange late last year.
“We were looking for assets with good lease tenure, new or near new assets, in good areas without necessarily buying in Eagle Street. This ticks all of those boxes. It’s well-built, with good quality tenants, near the motorways and with plenty of parking,” Katz said.
Tenants in the 3,568 square metre property at Garden City Office Park include health care provider Healthscope and Uniting Church-funded health and community service provider Bluecare. The leases have medium- to long-terms with contracted rental growth of about 3%.
The fund also includes six high quality logistics properties and two A-grade office buildings in the metropolitan areas of Melbourne, Canberra, Brisbane and Adelaide.
Katz said the fund was not looking for trophy assets and did not want to compete for prime CBD properties with major Australian institutional investors. The fund managers preferred to use their relationships to source transactions.
There was strong demand from South African investors in Australia’s commercial property market and the fund, which is currently ungeared, had capacity to expand, Katz said.
“We’re not bulking up for the sake of bulking up. We’re not chasing fees. We are going to maintain our discipline but there’s appetite for investment and our first target is to invest our capital to reach targeted gearing levels of 30-35% gearing,” he said.
There was no set date for the target to be met and further acquisitions would be made opportunistically, he added.
The purchase comes as foreign investors continue to eye the Australian office market.
A recently released Colliers International report into CBD office markets found that offshore investors were the second most active group of buyers of Australian CBD office property, although their involvement in the market has fallen markedly since 2012. Colliers put the drop in offshore buying down to increased competition from Australian institutions.
In total, $8.1 billion worth of Australian CBD office buildings transacted in 2013, up 16% on the previous year. Australian institutional investors bought $4.2 billion of prime office stock compared with $1.6 billion purchased by foreign investors.  Offshore buyers were more active in the secondary property market.
The Colliers report forecast rental rates in Brisbane CBD offices would fall by around 3% in 2013-2014, following a contraction of around 13% in 2012-2013, due to higher levels of supply and a shrinking public sector workforce.
However, the report noted that leasing fundamentals indicated the Brisbane CBD office market was approaching the bottom of the cycle and vacancy rates were not expected to rise substantially in 2014.
The research backs an <a href="https://www.propertyobserver.com.au/queensland/brisbane-office-market-caught-in-a-perfect-storm/2013101565717" target="_blank">earlier report into the sector, published in late September by Knight Frank</a>, which found that the Brisbane market was suffering from softening tenant demand, a shrinking state government workforce and private sector contraction.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
</body></html>

Off-market A-grade office building purchased by South African-listed fund

<html><body>
Listed residential property developers have delivered solid results in the latest reporting season with improving housing markets and low interest rates benefiting the sector.
Peet Limited, AV Jennings, Finbar Group and Cedar Woods Properties last week reported substantial lifts in profit for the first half of the 2014 financial year.
Australand Property Group, Stockland Property Group and Villa World, which reported earlier in the month, also achieved higher profits and more residential sales for the first half of 2014, while Mirvac Group’s residential division had a record $1.5 billion in pre-sales at December 31.
“They’re all in a purple patch as it stands,” Morningstar head of property research Tony Sherlock told Property Observer. “They’re getting volume growth, getting price growth, and at the same time their carrying costs for land, with low interest rates, are low.”
Sherlock said he expected conditions to remain strong for the residential developers throughout 2014 and into 2015.
“What I’m most concerned about is those [developers] that are buying to add to their land banks now. I think prices have run a bit harder than they should and when interest rates have normalised the holding costs will go up and returns will go down,” Sherlock said.
The official cash rate is at a record low of 2.5%, while the Reserve Bank’s mortgage indicator rate for a standard variable home loan is 5.95%.
“When [interest rates] return to more normal settings – which from my perspective is 7 to 7.5% - the sector will struggle to hold the gains that have occurred in the last six to 12 months,” Sherlock said.
The residential developers are upbeat but cautious about the outlook for their businesses.
Peet, whose main developments are in Perth and Melbourne, reported statutory profit of $13.2 million for the first half, up from just $1 million in the previous corresponding period. The company’s managing director Brendan Gore said the group’s performance reflected a broadening market improvement after challenging conditions in the first half of FY13.
He said the foundations of the residential sector looked sound, although he expected market conditions to be mixed through FY14.
“Conditions across the Perth market are anticipated to remain robust with the price growth anticipated to moderate. Victorian sales volumes are expected to remain steady but price sensitive while activity in the Queensland market is improving,” Gore said in a statement to the Australian Securities Exchange.
“However, affordability, softening labour market conditions and consumer caution is likely to make for a subdued lift.”
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
 
</body></html>

Listed residential developers report strong growth 

<html><body>
The Reserve Bank’s official cash rate is expected to remain at, or near, record lows for most of the year. That’s great news for mortgage holders but investors may be wondering what it means for capital values.
Interest rates are a key determinant of Australian property prices as the cash rate affects funding costs, with most people taking out a mortgage to buy, says ANZ chief economist Warren Hogan.
“When interest rates go down it will clearly support property prices and typically result in rising prices. When interest rates go up it will act as a headwind to property prices and will relate to property prices coming down,” Hogan says.
But it’s not a simple relationship, he says. “It depends on the situation in the market and the economy ... If you are cutting rates because the economy is in a hole you will not see prices rise.”
A range of other factors also drives property prices, diluting the effect of interest rate movements, says BIS Shrapnel senior manager – residential property, Angie Zigomanis.
“One of them is the general demand-supply situation in the city; affordability and economic conditions within the market as well,” Zigomanis says.
Population expansion and employment growth also influence prices, says Atchison Consulting managing director Ken Atchison.
“In Australia, migration has been a huge driver of demand due to the strong growth in the working population,” he says.
Atchison Consulting’s analysis shows only a weak relationship between changes in the RBA cash rate and changes in residential property prices in Australia.
<img width="470" height="318" src="/images/stories/2014/03/03/zoe-march-3-four.gif" alt="zoe-march-3-four">
Source: Atchison Consultants
From mid-1995 to mid-1996, cash rates were falling as property prices rose. The same occurred between 2000 and 2001. But at other times, such as around 1991, 2008 and 2011-2012, property prices fell as cash rates were cut.
Atchison’s analysis shows that US interest rates set by the Federal Reserve and the US dollar-Australian dollar exchange rate have as much of an impact on Australian residential property prices as local exchange rates.
<img alt="zoe-march-4" height="322" width="470" src="/images/stories/2014/03/04/zoe-march-4.gif">
<img width="470" height="335" src="/images/stories/2014/03/03/zoe-march-3-three.gif" alt="zoe-march-3-three">
Source: Atchison Consultants
Atchison says that’s because foreign investors are attracted to Australian property when interest rates elsewhere are low and the exchange rate is in their favour.
Additionally, Atchison says when interest rates overseas are lower, Australian banks find it easier to raise capital offshore for lending to Australian borrowers. With the banks more willing to lend, Australians find it easier to buy.
Local interest rate changes come into play in driving property prices indirectly through their impact on the broader economy, Atchison says.
The RBA lifts rates to reduce spending in the economy and control inflation. Higher interest rates force people and businesses to spend more on loan repayments, reducing their disposable incomes.
Conversely, cutting rates reduces mortgage holders’ interest costs, giving them more money to spend on goods and services.
Lower interest rates also make it more viable for businesses to invest and property developers to commence housing construction, which creates jobs and drives the economy.
Zigomanis says low cash rates improve the affordability of housing loans, which provides a trigger for price growth to occur. “Interest rates keep falling until the housing market stabilises and in a rising market, interest rates rise to stop the growth,” he says.
Despite the recent surge in property prices, most commentators expect the official cash rate to stay low for most of 2014. RBA governor Glenn Stevens noted in February, when rates were left on hold at 2.5%, that: “On present indications, the most prudent course is likely to be a period of stability in interest rates.”
Zigomanis says that with interest rates as low as they are, incremental changes will have less of an effect on the residential property market than they would have at times when rates were higher.
“People factor in a certain level of interest rates when they purchase. People look at what their interest repayments are now and where they could be,” Zigomanis says.
Less than six years ago the official cash rate was 7%. Less than two-and-a-half years ago it was 4.75%. “That’s probably in the back of minds for a lot of purchasers now potentially it could go back up to that level,” he says.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
</body></html>

What the cash rate means for capital home values

<html><body>
There has been a lot of talk of a property bubble over the past few weeks with US economist and commentator Harry Dent in Australia speaking at conferences and promoting his latest book, predicting a crash in housing markets around the country.
If Google searches are anything to go by, the media that Dent’s visit generated has fuelled concerns about the idea.
There has been a fivefold increase in searches on the phrase “property bubble” in Australia since the start of the year, according to Google Trends data. So far in February, there have been 35% more searches on that term than there were in November 2010, the previous peak in interest in that search from Australia.
Most of the searches conducted related to NSW, Victoria and Western Australia. Queenslanders also did some internet investigations the topic.
Before November 2009, Google recorded no searches on the term “property bubble” in Australia.
<a target="_blank" href="https://www.google.com.au/trends/explore#q=property+bubble&amp;cmpt=q&amp;geo=AU"><img alt="bubble-searched-march-3" height="170" width="470" src="/images/stories/2014/03/03/bubble-searched-march-3.jpg"></a>
Source: Google Trends
Similar terms, “real estate bubble” and “housing bubble” have also been attracting more attention in Australia since late 2009 and early 2010. People in Victoria and NSW searched for real estate bubble with interest in that term growing since early 2013, although searches on that term peaked in April 2010.
Those living in Western Australia searched for “housing bubble” the most, with people in Victoria, NSW, Queensland and South Australia also searching on that term.
Even by global comparisons, Australians have been conducting a lot of housing bubble-related Google searches.
Since 2004, Singaporeans searched Google for news of a property bubble the most, conducting more than double the searches than people in the second most concerned country, Malaysia. Australia ranked third, slightly ahead of Ireland.
Since the start of the year, searches on the term property bubble world-wide have more than doubled to their highest level, according to the Google trends data.
Canadians and people in the United States searched most for real estate bubble and housing bubble. Again, Australians ranked third in using those terms over the past decade.
But if those search results show there’s widespread concern in Australia about a property bubble, other common property-related searches tell a different story.
On average over the past five years, there have been 73 searches on the term “investment property” for every three search on the term “property bubble”.
Even over the past 12 months there have been 82 searches for investment property for every five searches for property bubble.
The term “property for sale” has also been searched in Australia over forty times more often than the term property bubble.
Other indicators such as recent auction clearance rates and housing finance figures also suggest that any concerns are yet to translate into action.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
                
 
</body></html>

Analysis - Property bubble chatter has gone through the roof since the start of 2014

<html><body>
Self-managed superannuation funds allocated almost twice as much of their assets to residential property in 2013 compared with the year before, a report into the funds has found.
The fourth annual Intimate with Self-Managed Superannuation report found that 9.9% of SMSF assets were held in residential property last year, up from 5.6% in 2012. The increase came as fund members reduced their cash allocations to 31% of total assets, down from 33.9% of assets held in cash in 2012.
The report, released at the SMSF Professionals’ Association of Australia (SPAA) conference in Brisbane recently, revealed that one third of SMSF trustees plan to consider investing in residential property through their super fund.
More than two thirds of SMSF trustees who invest in property are self-directed in their decision to do so, however many people do seek advice from financial planners or accountants, particularly regarding the loan structures that super funds can use to borrow for investing, known as limited recourse borrowing arrangements.
However the report, which was commissioned by fund manager Russell Investments and SPAA, and produced by research house CoreData, found that fewer financial advisers intend to offer assistance in on limited recourse borrowing arrangements in future.
While almost half of financial advisers surveyed had previously advised SMSF trustees on the rules on borrowing through SMSFs, only 7.7% planned to provide advice in that area in future. Almost 30% of advisers surveyed had never given advice on limited recourse borrowing arrangements.
The report’s findings on property investment were at odds with the latest Australian Taxation Office statistics, which showed that in September 2013, only $18.6 billion or 3.5% of the total $531.5 billion held in SMSF assets were held in residential property.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
           
</body></html>

SMSF residential property allocation nearly doubles over 2013

<html><body>
Property spruikers have been warned they must be licensed to offer financial advice if they are targeting people with self-managed superannuation funds or suggesting people should establish their own funds to buy real estate.
People who advise on direct property do not need to have an Australian Financial Services Licence, but people who make recommendations that involve SMSFs do need a licence as superannuation funds are considered financial products, Australian Securities and Investments Commission commissioner Greg Tanzer said.
“We regard [recommendations to buy property through SMSFs] as investment advice and you need to be licensed and if you are not licensed we will come after you,” Tanzer said.
Tanzer warned investors to be wary of property spruikers and ensure any advice they took was right for their circumstances.
“Our message for investors is superannuation is a far too important investment in the future to be taken in by a glitzy promotion,” he said.
The Australian Taxation Office, which regulates SMSFs, was also monitoring property transactions through the funds.
Acting second commissioner Alison Lendon said the ATO was checking that the investment decisions SMSF trustees were making were aligned with their fund’s trust deeds and investment strategies.
The ATO was also checking that property purchases met the sole purpose test, which requires superannuation assets to be acquired by the funds for the single intention of providing an income in retirement. It was also monitoring whether transactions were conducted at arms’ length to ensure properties were not being purchased from parties that were related to the trustees.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
</body></html>

SMSF property spruikers receive ASIC warning

<html><body>
The federal government is keeping a close watch on property acquisitions through self-managed superannuation, although a separate review of limited recourse borrowing arrangements that the financial services industry had expected will not go ahead.
Assistant Treasurer Arthur Sinodinos told delegates at the Self-Managed Superannuation Professionals’ Association of Australia conference this week in Brisbane, that there would be no specific review into the limited recourse borrowing arrangements which SMSFs use when taking out a loan to buy property.
Instead, these arrangements will be considered as part of a broader review into the financial services sector.
Sinodinos said the government was monitoring issues such as property spruikers promoting real estate through SMSFs to investors but did not want to introduce “heavy-handed regulation” to deal with any problems.
“We want to make sure that everybody understands that with people who provide you with advice, including on property, they have to be appropriately licensed and appropriately accredited so that the client is getting the best possible advice in their interest,” he said.
“Where possible, it’s about light-touch regulation and we like that sort of regime.”
He added that the government expected investors with SMSFs to take responsibility for their own investments and not expect to receive compensation if investments they made went bad.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
 
  
</body></html>

Property in SMSFs watched closely, but no review of limited recourse borrowing

<html><body>
Radical changes proposed to strata schemes in NSW have been delayed by at least six months after stakeholders demanded the state government take more time to get new legislation right.
NSW Fair Trading released a <a href="https://www.fairtrading.nsw.gov.au/biz_res/ftweb/pdfs/About_us/Have_your_say/Strata_title_law_reform_position_paper.pdf" target="_blank">position paper</a> on strata title law reform<a href="https://www.propertyobserver.com.au/trends/strata-law-changes-will-have-a-big-impact-on-the-residential-market-in-2014/2013121666961" target="_blank"> in November 2013</a>. A final bill was expected to be introduced to Parliament in early 2014 but that has been extended until August following a recent meeting between NSW Minister for Fair Trading Stuart Ayres and key stakeholders.
“There was concern among the stakeholders that the most significant social reforms in strata since 1961 could be placed in jeopardy by legislation that was prepared as part of an unrealistic timeframe,” Owners Corporation Network chair Stephen Goddard told Property Observer.
More than 70 reforms have been put forward. Goddard said four separate pieces of legislation would need to be amended to enact the planned reforms and each fell into a different area of state government.
“The policy changes that are coming into play are therefore in need of a whole of government solution, not just one ministry,” he said.
One of the reforms’ aims is to ensure defects in new strata buildings are identified and fixed sooner.
Goddard said around 85% of new strata residential buildings have defects, with owners’ corporations often having to fight for problems to be rectified.
The proposed reforms will also provide a way to terminate strata plans to make it easier to redevelop existing strata buildings.
They aim to facilitate decision making and dispute resolution in strata communities; protect individuals from unfair practices; and improve transparency and accountability in strata management, the use of proxies and disclosing potential conflicts of interest. The proposed changes are also intended to reduce red tape.
“This legislation will be ground-breaking. It will roll out into all the other jurisdictions I’m confident about that because the issues recur in Victoria, Queensland and Western Australia,” Goddard said.
Former NSW Fair Trading minister Anthony Roberts started an extensive consultation process on the reforms in September 2012, leading up to the release of the position paper in November 2013. The consultation received submissions from more than 70 organisations including the Housing Industry Association, the Master Builders Association, the Property Council of Australia, the Real Estate Institute of NSW, Owners Corporation Network and local councils, as well as from hundreds of individuals.
Ayres took over from Roberts as NSW Fair Trading Minister on December 9, 2013 and has continued with the reforms. A spokeswoman for the Minister confirmed the timetable had been delayed until August.
“It’s really significant legislative reform and we did not want to rush it,” the spokeswoman said.
Industry sources suggested legislative changes could be pushed out again to October.
There are more than 72,000 strata schemes in NSW with $350 billion in assets.
One in four Australians now live in strata accommodation and according to government 20 years, half of the NSW population is expected to be living or working in a strata or community scheme.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a> 
</body></html>

Changes to NSW strata laws delayed after stakeholders demand more time

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