Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

We’ve rebranded Urban to <a href="http://apartments.com.au">Apartments.com.au</a>.

This marks the start of a new chapter—one focused on improving the way Australia’s off-the-plan apartment market works for both buyers and developers.

The core problem we’re solving hasn’t changed: it’s still too hard for buyers to access reliable, easy-to-understand information about new developments. Our platform is the only one in Australia that includes every off-the-plan apartment project, not just the ones that pay to be listed.

But we realised the brand “Urban” didn’t clearly reflect what we do or the impact we want to make.

“Apartments.com.au” is easier to remember, and it says exactly what we’re about: helping Australians find and buy new apartments.

The rebrand is also about scale. We want to make a bigger impact—unlocking more housing supply by making the process more transparent, and by helping quality developers connect with serious buyers.

This change doesn’t affect your experience as a subscriber. In fact, it’s part of our ongoing investment in better technology, smarter content, and more powerful tools to support your property journey.

We’re just getting started.

Michael Bird

Why we rebranded Urban to Apartments.com.au

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Before we start, <a href="/guides/how-to-navigate-australias-first-home-buyer-grants">Government grants</a> in themselves do not make houses more affordable. They can have the opposite impact – by sustaining prices above market clearing rates and reducing overall consumer welfare at a given level of production. The trick to making a grant effective lies in delivering more houses which may lead to an orderly market price correction.

I’m sure that this was at the forefront of the minds of the Federal Government when it announced the <a href="/news/everything-you-need-to-know-about-australias-25-000-homebuilder-grant-how-much-off-the-plan-homebuyers-could-save">Homebuilder Package</a> in early June 2020. The Homebuilder Package was a response to dire predictions from industry groups that showed a cliff fall in construction activity in the latter part of 2020. 

Since the announcement there have been issues raised regarding the practical eligibility of the package in the two largest markets – <a href="/developments/melbourne-vic">Melbourne </a>and <a href="/developments/sydney-nsw">Sydney</a>. What the critics fail to acknowledge is that the package is the single biggest stimulus provided to the industry. Not only that, the Government is involved in a very tricky balancing act where it doesn’t want to artificially prop up prices in markets that are arguably already overpriced (and will be even more so when household income falls). When taking these two important points into consideration there may be justification for the eligibility criteria. 

The key to success of the program has little to do with the grants themselves. It has more to do with housing delivery. If more housing is delivered the grant will not exert undue influence on house prices and this is where it gets even more complicated. The Federal Government has little direct control over housing delivery. This is the domain of State and Local Governments – through the planning system. Failure by State and Local Government to deliver real and immediate change in planning approvals will seriously undermine the effectiveness of the Homebuilder Package.

It must be acknowledged that efforts are being made to improve the planning system by accelerating the process. On a whole it is working reasonably well but not without problems. The acceleration program in <a href="/developments/nsw">New South Wales</a> has overwhelmingly approved State Government projects to date. There are still specific Councils in Sydney stuck in a pre- COVID folly.  After reading media comments from my former colleague Danni Hunter from UDIA Victoria, the situation in Melbourne is probably similar.

Things aren’t always perfect and what is important is the intentions of our policy makers. You must give them all credit for trying in these difficult times. The key to success will be the collective efforts of all levels of government with the Federal Government working on demand stimulus and the State and Local Governments working on the (far cheaper) supply responses together. Get this out of sync and there could be issues.

Now homes aren't built by Governments. The industry has a role in this as well.  They have a responsibility to avert the cliff fall in activity by sustaining it (and not holding onto approvals without delivering homes). Banks have a responsibility to keep lending to homebuyers and revisiting presales requirements that simply aren't realistic in the present circumstances. We are seeing efforts on all these fronts.

Good things can come out of challenging times. The past few months have been traumatic for many businesses and individuals. The amazing thing is how Governments, businesses and individuals have responded to the challenges. While not perfect we are navigating uncharted waters and the efforts of all involved have been indefatigable.

The final equation will be the homebuyer. We have heard a lot about the impact of lower immigration on demand for homes. Immigration recently accounted for 60% of population growth – it hasn’t always been at that level and the impact of reduced entrants to Australia on home purchases are probably a little overstated. It is all about the price and the availability of credit. It is likely that there will be low growth in the short to medium term as we see an orderly market correction there will be a recovery and the homebuyers will benefit in the longer term.

There are many actors in this script and not everything will play out as anticipated or forecast. There will be different responses to changing circumstances that may materially change outcomes. But at the moment, it has been handled prudently and responsibly and there is a chance the doomsayers can be kept at bay for a little longer.
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antoniourban

Good Things Can Come from Challenging Times 

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<a href="/">Apartments.com.au</a> caught up with Katie Rea from Thirdi Group for a Q&amp;A session to discuss how developers are navigating the current crisis.

1. How are you going about things at Thirdi in 2020? 

Thirdi finished 2019 in an incredibly strong position having bolstered the development pipeline for years to come. To date, the first half of 2020 hasn’t come without its challenges though as we navigate and pivot into new ways of working, my honest belief is that from these challenges growth and opportunities start to arise. For Thirdi it has been a firm belief that it is “business as usual’ albeit with a twist. Friday drinks are morphed into zoom cocktail hours, coffee catchups are done virtually, and sales inspections have unfortunately been carried out without a friendly handshake. Whilst we are all facing adversity our commitment to ‘innovative brilliance’, embracing change, adopting new technologies and assuming the Australian spirit of ‘having a crack’ are the traits in which will ensure Thirdi can and will deliver on its value proposition for years to come. 

In <a href="/guides/how-to-navigate-buying-property-during-the-covid-19-crisis">2020</a> we are seeing digital take over even more so than the previous 3-5 years. Video calls have allowed us to sell our high-end stock to clients who are currently overseas without them having to physically turn up. We are seeing clients spend more time on our App, looking at views, studying floor plans and watching video content to familiarise themselves with the product before they purchase. With some good luck and good management over the past 6 months, Thirdi is sitting in a good position to slingshot out of this on the other side. 

2. How has COVID 19 changed the landscape of marketing for higher-priced stock? 

COVID with all its surprises and unpleasantries has come with its silver linings. As financial markets around the world retreated, pandemonium set in and governments gathered to formulate strategies, savvy investors/owners looked to park capital in high quality, safe haven, asset classes. Over the past 12 weeks Thirdi has exchanged on large volumes of stock in high-quality areas across <a href="/developments/sydney-nsw">Sydney and Newcastle</a>. I honestly believe that over this period of time people who knew what they wanted and were in a position to purchase still put their hat in the ring. 

Marketing in general over the past 12 weeks has been difficult and has given everyone the opportunity to think outside the box. We were lucky at Thirdi that in the lead up to the shutdown we had some great momentum on our live projects. With completion dates nearing closer it pushed us through the challenging new world that we found ourselves in. Additional learning from COVID is that everyone has had to find more innovative ways to serve their clients and this has opened up a lot of communication between all teams involved throughout the development process. 

<a href="/expert-insights/buying/covid-19-a-little-bit-of-positivity-goes-a-long-way">COVID-19</a> has provided the industry with an opportunity to pivot, embrace new technologies, scrutinise internal practices, self-analyse, peer review and over-service clients. No industry has been immune to COVID 19 though I firmly believe, post-crisis these best practises will evolve and be implemented. Whether in person or not our lessons learnt have paved the way to give our clients the best experience in purchasing property. Video content is going to be essential in all marketing campaigns and that needs to be supported with digital access to views, digital floor plans, 3D floor plans. 

Tech is evolving so fast, it’s going to be amazing to see what comes out of COVID. At Thirdi, we have now rationalised a Chatbot on website and listings so that clients can get an immediate answer while they’re at home. This is active to take clients on the journey start to finish and then be contacted within business hours. 

At Thirdi our approach has been to control what we can control. Our best in class marketing practices help to celebrate the extraordinary enlightened developments that we have brought to cities around <a href="/developments">Australia</a>. 

3. Do you see a difference in the lead to sale ratio in the higher-priced stock? 

What I have seen over the past 6-12 weeks is that people who are enquiring are more qualified. Leads have dropped over this period however the leads that we are receiving, and I speak for Thirdi, are purchasing and this is resulting in a shorter time to exchange on a property.
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jieyee_46282

Q&A with Katie Rea from Property Developer: Thirdi Group

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Urban Interviews Liam Wallis about Ferrars &amp; York, carbon neutrality, the property market, and sustainability.

URBAN [U]: With price slumps and consumer confidence at an all-time low, what do you think makes Ferrars &amp; York so attractive to prospective buyers (especially during times like this)?

Liam Wallis: Ferrars &amp; York is the first project of its kind on the market south of the Yarra in Melbourne. Located 100m from the South Melbourne Market, powered by 100% renewable energy and targeting an 8 out of 10-star energy rating, Ferrars &amp; York presents an unrivaled opportunity to live a conscious, connected and sustainable lifestyle. Featuring three-bedroom, two-bathroom, two-level terraces style apartments, Ferrars &amp; York provides an unmatched combination of highly sustainable homes, in a well-connected inner-city area at an accessible price point relative to surrounding established housing.  

Ferrars &amp; York is also a rare example of an iterative approach to design. HIP V. HYPE and Six Degrees Architects have built upon the award-winning collaboration that delivered 20 apartments and 3 retail spaces in <a href="/news/urban-goes-onsite-with-lucent-at-lt-miller-nightingale">Fairfield’s Nightingale 2.0</a> to enhance the design and construction process, apply collective learnings and deliver the best in durable, sustainable and connected homes at Ferrars &amp; York. 

We’re excited to take our learning from our recently completed project in Fairfield to deliver even better quality and higher sustainability outcomes for our future residents in Ferrars &amp; York. 

URBAN [U]: Ferrars &amp; York’s carbon-neutral design will be the first of its kind in South Melbourne. Can you go into detail about how the apartments will offset its carbon emissions without having others in the supply chain bear its costs? 

Liam Wallis: <a href="/news/735-australian-architects-agree-to-become-entirely-carbon-neutral-by-december-2020">Carbon emissions</a> are measured in both embodied and operational carbon. Going carbon neutral is about minimising carbon where possible and purchasing carbon credits to offset the balance. Similar to offsetting plane travel. We work with local suppliers and manufacturers and select local materials where possible to ensure that production and transport emissions are kept to a minimum. We undertake a comprehensive assessment of the embodied carbon emissions of the construction of the building and purchase carbon credits to achieve a neutral outcome for embodied carbon emissions. 

In terms of operational carbon, Ferrars &amp; York is 100% electric, with no gas, the building maximises passive design principles and will be thoroughly insulated. This ensures that the apartments require less energy to heat in winter and cool in summer and are comfortable spaces to occupy all year around. For the energy that is required to operate the building, Ferrars &amp; York will have a 20kW solar panel system on the roof for the shared use of the apartments and commercial tenancy. Any shortfall of energy between what is generated onsite and what is required can be purchased from renewable energy off the grid through the embedded network. The result of these systems is that Ferrars &amp; York can be run on 100% renewable energy and is therefore operationally carbon neutral. 

URBAN [U]: Is the sustainable design of Ferrars &amp; York in response to what consumers are demanding at present or vice versa?

Liam Wallis: Ferrars &amp; York is designed for people who value design and a connected lifestyle and who have a strong sense of responsibility to help be part of the solution for a more sustainable future. Sustainable homes are warm in winter and cool in summer, they maximise natural light and cross ventilation and create enjoyable, comfortable spaces to live, entertain, and work in. They are connected to fresh food, green spaces, community amenities such as schools and employment by foot, bicycle, or public transport. They provide accessible facilities to reduce water waste and to recycle. We have found that some of our buyers are very aware of their impact on the natural environment and are seeking to align their values with their social and consumer behaviour. Others have simply been drawn to the quality and have responded really well to the idea that buying into this project is helping to support the kinds of projects that so many of us want to see in our cities. 

One thing is for sure about Ferrars &amp; York is that its location next to the South Melbourne Market will make it very convenient to live sustainably and enjoy the benefits of fresh, high quality, locally sourced produce.  

URBAN [U]: Do you think that COVID-19 has influenced buyers’ preferences when it comes to purchasing more eco-friendly homes? How so?

Liam Wallis: Following this summer’s bushfires and COVID-19, we have seen that a 'business as usual' approach holds very little relevance. Ferrars &amp; York has seen strong enquiries and we were thrilled that we have achieved 50% of sales within 2 weeks of launching, in the midst of the COVID-19 lockdown. We were hopefully prior to launch that quality would shine through at a time of uncertainty and that seems to have been the case. The idea of <a href="/news/assembles-kris-daff-discusses-rent-with-the-option-to-buy-and-the-future-of-housing-in-australia">well-designed</a>, energy-efficient homes that provide comfortable spaces to dwell has resonated with our market.  

URBAN [U]: Do you see more developers in the industry going down the carbon-neutral route? How likely do you think that the government will introduce incentives to encourage developers/suppliers/buyers/sellers in the industry to be carbon neutral?

Liam Wallis: Emissions reduction commitments made in the <a href="/news/a-greener-future-green-building-council-australia-discuss-climate-change">Paris Climate Agreement</a> will strengthen the Carbon market and is already providing incentives in different forms for businesses to be seriously assessing their carbon footprints. Ultimately, all new residential dwellings in Australia will be carbon-neutral. In our opinion, this should be sooner rather than later. Arguments that the short-term costs of achieving zero carbon impact the feasibility of projects are fast losing credibility. 

At the core of Ferrars &amp; York and HIP V. HYPE is a strong belief that the buildings we choose to build and live in can drive the positive impact our cities deserve. We see our role as both delivering buildings which can help shape a positive, more resilient future for our cities and also as advocates for sustainable development. We invest in researching and testing sustainable processes and systems in our buildings to serve as case studies for what sustainable density can and should be. 

We have made a number of submissions to the Victorian State government in support of more progressive sustainability targets across the energy, transport and built environment sectors and would welcome further incentives to lift the quality of housing delivered by the broader industry.   URBAN [U]: For prospective buyers who are yet to make up their minds, what has the team behind Ferrars &amp; York done to go beyond eco-friendly amenities (e.g. fossil-fuel-free electric systems and solar panels)?

Liam Wallis: We’re investing heavily in quality design and are actively seeking to build long-term relationships with our suppliers and our customers.

Each residence at Ferrars &amp; York will include Binq’s high-performance sustainable doors and windows for enhanced thermal and acoustic insulation and appliances by premium Swiss manufacturer V-ZUG provide for the latest in technology and reliable performance. Melbourne kitchen manufacturer, Cantilever Interiors will be continuing their collaboration with HIP V. HYPE to deliver high-quality, locally made kitchens to enable residents to make the most of the market’s fresh produce.  
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Q&A with Liam Wallis, Ferrars & York

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A while ago, Urban had the opportunity to sit down with Andrew Bell from Ray White Surfers Paradise to chat about the property market and COVID-19’s positive and negative impact on real estate.

Urban [U]: Queensland was the first state that eased COVID-19 lockdown restrictions. Do you think this would contribute to an influx of interstate buyers? How would this impact the property market in Queensland and the state of Queensland as a whole? Andrew Bell [AB]: I do not believe the fact that <a href="/developments/qld">Queensland</a> was the first to ease COVID-19 lockdown restrictions has had any effect on an influx of interstate buyers, but rather our early surveys of both buyer and tenant enquiries is that many people reassessed their life during the isolation period as a result of some having lost their jobs and others simply deciding that life is not quite as they wished it to be going forward and they just took the bold decision to either immediate migrate or put the wheels in motion to migrate. The impact initially was seen in the <a href="/expert-insights/buying/why-now-is-the-best-time-to-be-a-rentvestor">rental market</a> which makes the most sense as people who made the decision to move immediately want to rent for a period of time to decide where they might want to permanently live before buying. Interstate buyers have been a strong supporter of Queensland now for the last twelve months and we expect them to continue to do so, but perhaps in greater numbers making up for an easing back of investor buyers and international buyers in the short-term.

U: In your 45 years of experience in real estate, how does COVID-19’s impact on the property market differ from previous property market crises e.g. ‘87 Global Financial Crisis, ‘08 Global Financial Crisis? AB: COVID-19 differs from <a href="/guides/how-australia-s-interest-rate-cuts-could-impact-first-home-buyers">previous substantial economic downturns</a> largely because of the size of the impact. It has been described on an international basis as 30x worse than the GFC. It is also affecting a much broader width of people and that has been reflected in forecasts of 15% unemployment, the largest contraction of the economy since the Great Depression etc. etc. The impact has many similarities to previous downturns but simply much more severe and most probably for much longer.

U: What is the most challenging part so far about the COVID-19 crisis? And what has the Ray White Group been doing to boost consumer confidence? AB: The most challenging part so far in terms of real estate is purely the impact in the rental market with around 20% of people asking for rent relief in the residential market and over 50% in the commercial market. A great deal of our time has been devoted to wading through those cases, but it has stabilized and we are now seeing less than 6% of our residential rent roll requiring some rental assistance and around 40% of the commercial rent roll. At the moment, in the sales arena, there remains a shortage of stock for sale and a reasonable number of buyers in the marketplace, but I am sure that the scenario will change within 60 days. 
Ray White has lent on its 120-year history through many shocks to the system including two World Wars, the Great Depression, and all the way through until the GFC, and so we have been able to calm many of our clients with good advice about the journey we are on and whilst there will be pain there will also be solutions for most. We have had very high levels of communication not only with our own clientele but providing the same information broadly through the media nationally. 

U: White was <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">one of the first real estate companies</a> to go online and conduct virtual property tours, auctions and online training sessions. Do you think these online auctions and training sessions are here to stay? AB: Online auctions, private auctions, remote auctions, and in general all auctions that are not held in the public arena are actually nothing new. For more than 20 years at our in-room auctions it has been common to have our seller on the phone in Melbourne and our buyer on the phone in Sydney, and so we adapted very quickly. I think the future will be a marriage of both in-room auctions, on-site auctions, and a variety of electronic forms of engagement for auctions. At the end of the day, it is what is best for our clients and we now just have an added tool to a highly successful method of selling goods that has been around for well over 2,000 years. U: What opportunities do you see in the near future for property developers and home buyers in Surfers Paradise/Queensland? AB: Whilst every part of <a href="/developments">Australia</a>’s, and indeed around the world, real estate markets will be affected by the economic effects of COVID-19, real estate remains a fundamental necessity in everyone's lives. Everyone has to have a roof over their head whether they rent it or buy it, and so whilst demand for purchasing may ease back because of economic conditions, those people will have to rent, and so we will see stronger demand for rentals. What we will be looking for here on the Gold Coast is people who see value in our real estate compared to the rest of Australia and who are particularly keen on a new and more affordable lifestyle. Just last Saturday I spoke to someone who moved from Sydney and they talked about what a great move it was, how their whole family loves it, how the people are more friendly, the climate is better, how it is better value for money, and how it is the best lifestyle by comparison. I am suspecting we are also going to see an increase in overseas buyers who have eyed off <a href="/news/how-to-ride-the-covid-19-wave-the-ultimate-developer-survival-kit">how well Australia handled COVID-19</a>, how wonderful our health system is, who appreciate we are actually underpopulated, and who will see how the Australian dollar softened and that there is great value in buying our real estate. I think we are going to see a lot more higher wealth and mid wealth people looking to migrate to Australia as a country that has stood out to the world for all the right reasons in 2020.
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Q&A with Andrew Bell of Ray White Surfers Paradise

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While many of its impacts may be short-lived, the COVID-19 pandemic will undoubtedly trigger more permanent shifts not only in the way we live, but also in the way we work, think, shop and behave as consumers and businesspeople.

Some trends will emerge fresh, but many changes will come in the form of a rapid acceleration of those already materialising in their early stages - a faster uptake of online retailing, an accelerated move towards flexible workplaces and re-structured supply chain modelling and etc. These changes, while revolutionary, will have significant implications on demand for property across the various commercial sectors, with some segments poised to benefit more than others. 

Supply chain remodelling a potential catalyst for the logistics industry  

With border closures, social distancing restrictions and stock shortages that have accompanied the global pandemic, COVID-19 has highlighted a number of underlying weaknesses in existing supply chains, forcing many businesses to reassess how they can adapt their processes to minimise the impact of future events – notably, how they source, distribute and store inventory. 

As companies strive to improve supply chain reliability, we will no doubt see a lot of businesses move away from dependence on a single country or company as a source of supply, to a focus on greater diversification and a move towards greater domestic supply chain independence. If some of these manufacturing processes return to Australia, these changes will serve to further enhance demand for the logistics and industrial sector, already a beneficiary of the rise of online retailing.

From a stock perspective, we may even see businesses store more inventory rather than rely on high stock turnover/low inventory models, especially when it comes to critical items such as medical equipment and essential parts. This could see an increasing number of businesses looking to establish alternative distribution locations, again furthering demand for facilities with the right location, layout and stacking capabilities to facilitate storage and ease of distribution. If we follow in the footsteps of our international counterparts, we may see industrial storage reaching heights of as much as 40 metres in the post-pandemic landscape.   

 Flexible working changing office space considerations 

There have been a number of questions over how COVID-19 will impact the future of the office market. In the short-term, demand will remain weaker as businesses re-evaluate their financial position and re-consider their workplace structures. However, in the longer-term, it’s unlikely that we will see demand for physical office environments disappear, with workplaces still valuing the need for teams to collaborate and innovate in a shared space. Rather, we will see an adjustment as businesses move towards smaller footprints and <a href="/expert-insights/buying/what-should-happen-after-the-great-work-from-home-experiment-concludes">flexible working environments</a>.

In the near term, businesses with leases nearing expiry in high priced markets like Sydney and Melbourne’s CBD are likely to be the first to reduce space. However, the impacts will be more subdued in cities such as Perth where market conditions have been softer and rents are low. While businesses in these areas may still look to reduce space, the urgency is not as acute given the low occupancy costs, placing these markets in a relatively stable position in comparison to other office markets across Australia. 

Problematic models exposed, but non-discretionary retail far from dead 

Arguably no sector is going to feel the pace of change (and the causalities that come with it) as much as the retail industry, but not all are going to emerge from this as losers. In fact, we have already seen a number of innovations and good news stories from various retailers, particularly in the food and beverage space, who have successfully adapted their models to emerge triumphant in the COVID-19 environment. 

What we are likely to see, however, is an acceleration of the decline of those product retail channels already facing problems prior to the COVID-19 outbreak – in particular, those that have failed to adapt in the face of growing competition from online retail, and large-scale centres failing to move away from unsustainable rent models. 

One sub-sector that will remain relatively insulated from the inevitable acceleration towards online retailing is neighbourhood shopping centres. The nature of distribution in Australia means home delivery models aren’t economically viable for major supermarkets in sprawling suburbs, which will see many of these retailers continue to thrive in brick and mortar form (either through omni-channel models such as click-and-collect or physically through in-store sales). While these assets are well-positioned to continue leveraging consumer demand for convenience, it’s the larger centres with a high proportion of discretionary category retailers that will be under greater pressure to adapt, or else risk not surviving. 

As to the broader question of what investors should look for in <a href="/news/is-now-a-good-time-to-invest-in-commercial-property">commercial</a> assets moving forwards, these trends should evidently be front-of-mind in selecting properties, assets and sub-sectors poised to weather and emerge even stronger from this era of change.

Now more than ever, we are going to see the reinforced importance of fundamentals - the strength and longevity of tenants, an asset’s location, and the quality of individual properties and their resiliency to emerging trends. No doubt many investors will also be focusing on the benefits of diversifying their portfolio to mitigate risk and avoid over-exposure to a single market sector or location, with diversified commercial funds offering a strong value proposition over direct investment.
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The changing face of commercial property in the post-COVID environment

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In March 2020 a <a href="http://www.cmo.com.au/article/672072/report-most-australian-employees-work-from-home/">survey</a> by Gartner HR showed that 88% of people are currently working from home due to COVID-19. Similarly, the results from a <a href="http://www.businessinsider.com.au/54-percent-adults-want-mainly-work-remote-after-pandemic-study-2020-5?utm_medium=social&amp;utm_source=linkedin.com&amp;utm_campaign=sf-bi&amp;r=US&amp;IR=T">poll</a> published by IBM in April 2020 also suggested that 54% of people would prefer to continue to primarily work from home once restrictions are lifted, while 75% said they would prefer to work from home at least in some capacity. 

In a 2019 <a href="http://assets.businessinsider.com/study-says-remote-workers-are-happier-stay-in-jobs-longer-2019-9">study</a> by Owl Labs it was found that employees working from home enjoyed their jobs 22% more than their office dwelling counterparts, while other studies have indicated that employees' work-life balance has improved by working from home. An <a href="http://www.afr.com/work-and-careers/careers/it-s-more-productive-to-work-from-home-20200401-p54fwc">article</a> published by the Financial Review in April also reported that one in three Australians said not having to commute had resulted in less stress during the workday while 70% said their productivity at home was the same if not higher than in the office. Additionally, forecasters have predicted that Melbourne’s infrastructure works could cause delays of over one hour in the daily commute of Melbournians. 

With mounting pressure from employees, a reported boost in productivity and an expected reduction of office accommodation, businesses are being presented a strong case to allow staff to continue to work remotely. While businesses and commercial landlords begin to rethink and redesign office layouts to adjust to a new world, it is expected that medium to high-density residential developers will now turn their attention away from the minimal, compact spaces of the past, to the more adaptable, spacious design layouts of the future.

<blockquote>
 “As certain changes are established and working from home becomes more normalised then we expect that we will need to consider and research the best design solutions for these times... it seems there will certainly be a stronger emphasis on dedicated study/work zones in apartments and creating flexibility will further enhance these spaces”.
</blockquote>

CHRIS MANDERSON | Director | JCB Architects 

In Brunswick, new developments have been quick to jump on the trend. At the Sarah Sands on the corner of Sydney and Brunswick Roads, Peregrine Projects are offering generously sized apartments with dedicated home office space. Known as the Flexi apartments, they aim to cater for those who work from home. 

Meanwhile, around the corner, developers Milieu released their new Live/Work range, which are multi-use spaces that are to be built without internal walls, designed to be easily convertible from a studio apartment to a small office. The spaces aim to give purchasers the option to either live or work in the area.

<blockquote>
“The oversized apartments at Sarah Sands have been innovatively designed for purchasers to curate their space to adapt into a home office area, suited to their individual working style and evolving way of life. We can now see the importance of this as more and more people opt to work from home, and these apartments are perfectly designed to cater to that increasing demand.” 
</blockquote>

MICHAEL DOBSON | Peregrine Projects | Development Manager

With innovative apartment designs becoming available this early in the changing market landscape, it is a sure sign that the working from home movement will have a significant impact on how Australian developers address the need to combine home and office spaces.
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The Working from Home Movement and the Future of Medium-High Density Residential Development

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Urban: Sourcecorp is the distributor of Fibo panels in Australia. Fibo is founded in Norway and supplies interlocking Waterproof Wall Panels throughout Northern Europe, Great Britain and North America. When bringing Fibo into Australia, what were some of the issues of concern (e.g. climate) when considering Fibo’s suitability for Australian consumers?

Martin: Our assessment of Fibo was managed in the same way as every other product we import.  Prior to launching Fibo in Australia, Sourcecorp had imported wall lining products from China and the United Kingdom.  In particular, Sourcecorp had acted as the representative of another waterproof wall panel product sourced from Scotland.  After visiting the Fibo facility in Lyngdal, Southern Norway, and reviewing the extensive body of testing the company had undertaken we quickly decided to change suppliers.  Not that the previous waterproof product was of poor quality, it is simply our belief that Fibo is a superior manufacturer with a greater commitment to quality assurance processes.  This was not only shown by the array of tests completed but also the accreditations that Fibo had received.  To top this off, we have had Fibo tested against <a href="/news/oliver-steele-of-steele-associates-discusses-australian-building-codes-apartment-design">Australian Standards</a> as required under the <a href="/news/australia-called-we-want-our-building-codes-updated-and-regulated">Building Code of Australia</a> and ultimately the Fibo System has been CodeMark Australia certified by Bureau Veritas.  This proves that Fibo is suitable as a waterproof system under Australian conditions.  The CodeMark certification also indicates any limitations to the product’s use.  The significantly cheaper supply price was the cream on the cake.

It can be challenging to find products that are suitable across Australia due to the varying building code requirements and diverse climates.  While Sourcecorp has not as yet installed Fibo in northern Australian regions, there have been many cases of the product being used in a broad range of climates from the freezing Arctic to the balmy Southern USA.  The one area that we know we must always pay great attention is to installation.  Sourcecorp is growing its base of experienced Fibo installers with hands-on support.  With any building material, we know that a product or system is only as good as its last installation.

Urban: Ever since introducing Fibo to Australian households, has there been any significant changes in terms of consumers’ preferences? What has been the response?

Martin: Most bathrooms do not receive much in the way of natural light, so in these spaces designers predominantly employ lighter decors, particularly white to create a sense of volume and a clean crisp look.  This is most important in laundries, ensuites and bathrooms.  Often when wishing to add a personal touch many customers add a feature wall, which adds a dramatic designer feel to any room.  While Sourcecorp does stock Fibo in Australia, it is not currently practical to hold the entire range of over 500 different product lines.  Unstocked lines are ordered with Sourcecorp’s regular shipments and take between 10 – 15 weeks to arrive - subject to volume and décor type. In most cases we first start talking to clients while they are planning their works which gives us time to import any line the client wants from the Fibo range.  This is generally the case for commercial projects. 

We find the response to Fibo improves dramatically once a potential customer or architect has seen an installation and touched the product.  We encourage interested parties to visit our Collingwood (Victoria) showroom for this purpose.  Having said that, if a potential sale warrants it, we are prepared to travel.  

Without doubt many customers are attracted to Fibo because it is a grout-free system.  The benefits are obvious.  This is particularly important within commercial buildings that are subject to rigorous, frequent cleaning.  Fibo cuts cleaning costs and also reduces the impact of harmful cleaning agents on their cleaning staff and the environment.

Urban: Homebuyers today are more inclined to go for <a href="/guides/20-simple-changes-around-the-home-to-reduce-your-environmental-impact">eco-friendly</a> and sustainable materials because they see it as a long term investment. How does the design and function of Fibo suit this demand?

Martin: Fibo is made of plywood sandwiched between the backing and decorative facing layers of high pressure laminate.  Fibo is a wholly sustainable product that both stores carbon and has very low embodied energy caused by its production and transportation.  To illustrate this credential, when compared to ceramic wall tiles an equivalent Fibo installation weighs about 25% per sq metre.  That represents significant reductions in transportation emissions at the beginning and end of life of the product. 

Fibo sources all of its raw materials responsibly and is certified under the PEFC (Programme for the Endorsement of Forest Certification), which is known as ‘<a href="/news/6-of-australia-s-top-sustainable-architectural-design-trends">Responsible Wood’ in Australia</a>.  Further Fibo has subjected its products to independent audits in preparing an Environmental Product Declaration (EPD), which is an objective scientific assessment of the environmental impact of the product from sourcing raw materials to end of life management. Finally, because the panels are easily cleaned there is less need for chemical cleaning agents, which reduces downstream damage to our water treatment systems.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/8056_stn_lentini_dark_restuarant_washup.jpg" rel="gallery-all" title="Image supplied."><img alt="" class="image-article-full-width-580px" height="387" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/8056_stn_lentini_dark_restuarant_washup.jpg?itok=fuBxsZfr" title="Image supplied." width="580"></a>

<figcaption>Image supplied.</figcaption></figure>Urban: What are some of the measures that Sourcecorp has taken to ensure that its products (e.g. wall panels, aluminium windows etc.) meet the preference of its customers in terms of sustainable design?

Martin: We have always subjected our products to independent scrutiny so we are clear about the performance of the materials we supply.  The key for Sourcecorp is to thoroughly understand a client’s requirements and match product that is certifiably fit for the intended purpose.

Urban: <a href="/expert-insights/buying/covid-19-a-little-bit-of-positivity-goes-a-long-way">Has COVID-19</a> affected the condition of building materials that Sourcecop has? How do you think this will shape your industry?

Martin: In 2020 we expect to see a greater percentage of Government works as part of economic stimulus initiatives.  Private works that have already commenced will continue to completion, however we do expect there to be a general contraction in private work as banks and property developers reassess property valuations.  This will almost certainly lead to less private enquiries as projects are postponed.  The emergence of the off-site (Modular) construction industry may benefit from covid-19, whereby the shutdown and need for social distancing may be a catalyst for works to move to a system that reduces congestion on building sites.

More regular cleaning and sanitising routines may result in commercial building managers looking for products that have lower maintenance costs.  We expect that industries such as tourism and hospitality to be heavily affected for at least another two years.
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Nick Dante

Urban's Q&A with Martin Vana from Source Corp Victoria

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We are now over 8 weeks into the “new normal'' and agents across the country have pivoted using online platforms for auctions, virtual platforms for routine inspections, virtual tours for vacant properties, balancing working from home and home schooling.

We are now back out conducting opens and on-site auctions with restricted numbers adhering to social distancing rules and the ever-present hand sanitizer.

We have dealt with the first wave of rent reductions and in most cases come to a commercially sustainable agreement between the parties.

Agents have communicated to clients – investors and tenants all the legislation changes, what it means for them, and for any new investors or anyone taking up landlord insurance for the first time what the exclusions look like.

We are now starting to look at what will impact our <a href="/news/how-to-ride-the-covid-19-wave-the-ultimate-developer-survival-kit">rental market moving forward</a>, here are some of what is on my wall the moment:

<ul>
<li>Job keeper is to come to a close at the end of September, unless the Government changes their mind, when this occurs, tenants and investors are going to be impacted. Your property manager should be connecting now with tenants and investors to start discussing their current situation, will they be impacted by any changes to Job keeper and what options are available to ensure rent continues to be paid. </li>
	<li>It is likely that we will have higher vacancy rates which means that rental rates will be pushed down, do your numbers now and if your property is vacant during this time work out what is the minimum amount of rent you need to cover your costs.</li>
	<li>If your tenant's lease is ending over the next few months, renew the lease and don’t increase the rent, you are better off having a tenant in your property at the current rent rate than a vacant property which you may have to lease out for less than the rent you are getting now</li>
	<li>Be aggressive with your rent reductions if your property is vacant, get feedback from your property manager on what a competitive rate would be, sign on your tenants for longer than 12 months and build in a rent increase into the lease</li>
	<li>Invest in <a href="/expert-insights/buying/the-future-of-the-australian-property-market-post-covid-19-according-to-icd-propertys-sal-quah">virtual tours on vacant properties</a>, our data tells us that on all of our properties people are spending longer on virtual tours before they attend openings.</li>
	<li>Find out from your agent if they have invested in the latest technology, have they provided you and the tenant with an app to track your tenancy, to pay rent, to report maintenance. Moving forward people want to connect technology that enables them to report issues and have them dealt with quickly</li>
</ul>
This is a time for agents, tenants and owners to work together to get the best commercially viable outcome for all parties.
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The new normal in real estate, the impacts moving forward.

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<h2>Common mistakes developers make</h2>

Often the environment is one of those distant factors you don’t think of first when <a href="/guides">purchasing a property</a>. In some cases, an after-thought. This could be a hugely costly mistake and one that isn’t considered until you’re in the thick of it.

The location is spot on, the market is ideal and the timing is perfect. Sounds too good to be true. Maybe it is.

Consider your due diligence of the site and make sure you know what you’re buying and what you’ll be up for.

Contaminated sites can be some of the most lucrative assets when managed correctly. It is important to understand your environmental exposure before and during acquisitions, transactions and construction.

Types of potentially contaminated sites include the following:

<ul>
<li>Service stations</li>
	<li>Market gardens</li>
	<li>Drycleaners</li>
	<li>Automotive and engine workshops</li>
	<li>Manufacturing workshops</li>
	<li>Landfills</li>
	<li>Quarries</li>
	<li>Gasworks</li>
	<li>Timber preservation and tanneries</li>
	<li>Rifle ranges</li>
	<li>Abattoirs</li>
	<li>Airports</li>
	<li>Railway yards</li>
	<li>Cattle dips</li>
</ul>
Before you purchase a site

It’s good practice to engage an environmental consultant to conduct an environmental due diligence (desktop study) to assess for potential risk of soil or groundwater contamination prior to purchasing a site. This is also known as a Preliminary Site Investigation or a Phase 1.

This is a relatively cheap way to find out potential risks at the site and will help you make an informed decision.  A Phase 1 covers such things as:

<ul>
<li>What was the site historically used for? </li>
	<li>Is there an environmental audit overlay or a planning condition? </li>
	<li>What is the potential environmental liability and potential engagement with the EPA? </li>
	<li>What are the potential cost requirements? </li>
	<li>What are the clean-up, damages and business risks?</li>
</ul>
Moving ahead with your purchase

If purchasing a suspected contaminated site, you need to understand the extent of contamination issues and factor this into your budget for assessment (Detailed Site Investigation), potential remediation and auditing.

We recommend you choose a consultant that is a Certified Environmental Practitioner (CEnvP) for the assessment/testing and remediation to give comfort that the scope of work proposed is appropriate and will survive scrutiny.

Most developers factor in an environmental consultant, but many are surprised to find out they will likely also need to consider an environmental auditor.

What’s the difference between a Consultant and an Auditor?

The consultant undertakes the physical sampling, assessment, remediation and management plans to then provide to the auditor for verification. 

Environmental auditors are appointed by a regulating state government body (such as EPA) and are highly qualified and skilled individuals who have met strict criteria and guidelines. 
  
An auditor is independent and accountable to the EPA for verifying that the consultant’s findings are in accordance with the guidelines, and ultimately assists in “lifting” planning restrictions and deciding if the intended use of the site is suitable.

The environmental consultant cannot be the auditor at the same site as this would be seen as a conflict of interest – like marking your own homework.

What would trigger an Environmental Audit?

An Environmental Audit may be required when:

<ul>
<li>you are redeveloping a potentially contaminated site to a more sensitive use (e.g. from a former petrol station to residential or a childcare centre);</li>
	<li>you are developing land that is covered by an Environmental Audit Overlay;</li>
	<li>there is a planning permit requirement relating to a site located in a landfill buffer zone;</li>
	<li>it is requested by local council as a condition in your development application;</li>
	<li>you are wanting to assist in reducing future risk and understand potential contamination management measures (due diligence);</li>
	<li>EPA requests to understand the risk of harm caused by an activity; or</li>
	<li>compliance is to be demonstrated with a regulatory licence.</li>
</ul>
Can an auditor add value?

Experienced auditors can add value by providing advice prior to purchasing a site to point out any environmental liabilities and potentially avoid or minimise ongoing financial costs.

When you engage an auditor early in the process you can save on time and costs associated with investigations, avoiding unnecessary re-work. The auditor can help guide you from the start.

Auditors can also offer creative ways to manage issues that pose a potential threat to human health and the environment. For example, methods of vapour intrusion ventilation in a basement carpark of a multi-storey residential apartment.

Additionally, auditors interact with the many stakeholders and understand the processes and legislation to help move things along quickly and effectively.

What do I need to consider when appointing an Auditor?

Auditors are a key part of the development approval process and careful consideration should be exercised in appointing the right auditor. 

Each auditor is different as they come with varying experiences and areas of expertise. Whilst they all try to enforce and uphold the same rules, regulations and practices, matching an auditor’s experience and/or area of expertise with the project is typically beneficial.

Experience, communication, outcome-focused, integrity, quality; these are qualities that form a good, reliable auditor.

Don’t get caught out

<ul>
<li>Choosing the right consultant and auditor can “make or break” your project. </li>
	<li>If you get an audit quote for as little as $10k, expect variations. This can blow-out, so make sure you carefully evaluate the scope of the audit that has been costed.</li>
	<li>Audit the auditor. If an audit has been triggered, ask for similar case studies from the auditor and examples of where they have assisted the client and provided timely pragmatic advice.</li>
	<li>Be prepared if your design plans have to change to suit environmental requirements.</li>
	<li>Site investigations and results may take a while; the sooner you start testing the more the likelihood to meet your project timeline.</li>
	<li>Engage the auditor before you start site assessments to avoid unnecessary re-testing. </li>
	<li>Choose an auditor who has a good working relationship with the consultant as this will reduce time and interaction issues between them.</li>
	<li>Factor in a contingency cost for unforeseen environmental issues. A “just in case” fund.</li>
	<li>Don’t get stuck in the “it won’t affect me” bubble. We have seen this many times. It’s smart to conduct due diligence before purchasing the site, no matter what.</li>
</ul>
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Melvie

Don’t make the same mistakes as your competitors

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In this week's webinar, Urban CEO Mike Bird caught up with Australian property industry leaders, John Meagher (CEO, 360º Property) and Paul Lowe (Lendlease Sales Manager).

If you missed the webinar, here are some of the topics that were discussed:

<h2 class="rtecenter">Introduction to guest speakers</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/VkmE3YF5Yqw" width="660"></iframe>

<h2 class="rtecenter">How are you finding prospects are responding to the current market conditions and media noise around house prices potentially falling over the next 12 months?</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/18XzxVJm5yA" width="660"></iframe>

<h2 class="rtecenter">Have you started seeing conversion rates increase compared to the middle of the pandemic?</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/_2FRuAiOczk" width="660"></iframe>

<h2 class="rtecenter">What are the differences in strategy for a first time launch compared to a relaunch – particularly given the current circumstances?</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/Tv36xodUyxw" width="660"></iframe>

<h2 class="rtecenter">Which offshore markets are furthest along the path to recovery?</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/q2RDaw9CwL8" width="660"></iframe>

<h2 class="rtecenter">What differences will you have in your strategy this spring, compared to last spring?</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/zlVPu2NLRVs" width="660"></iframe>

<h2 class="rtecenter">Are you using certain channels more or less than you usually would during this time?</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/6_6AHlYUGr4" width="660"></iframe>

<h2 class="rtecenter">Have you found out that some buyer segments are outperforming others, e.g. First Home Buyers (due to not being able to spend their money on smashed avocado?)</h2>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/p9JBdcNLaRM" width="660"></iframe>

If you'd like to be informed of Urban's next industry webinar, sign up to Urban's industry portal <a href="https://next-portal.urban.com.au/login">here</a>.
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