High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" 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/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Teams and leveraging off of the expertise of professionals is absolutely crucial, particularly when it comes to the complexities of property investing.
Having a team with a number of professionals, such as a mortgage broker and investment adviser, ultimately helps investors head for success. While we've previously discussed <a href="https://www.propertyobserver.com.au/residential/how-to-build-a-successful-property-investment-team-melissa-opie/2012071054297" target="_blank">how to put a team together</a>, it seems finding the best experts is still difficult for many.
Property Observer's most recent poll has found that the majority of respondents use recommendations and referrals to determine whether or not to trust an expert with 50% selecting this option.
References and testimonials came in second, with 17.2% selecting this item - closely followed by 12.1% who use forums and 10.3% who mainly rely on a general Google search. Just 6.9% pointed to ASIC/Fair Trading/other government site with 3.4% selecting news websites.
<img alt="poll-results-sept-10" height="325" width="470" src="/images/stories/2013/09/10/poll-results-sept-10.jpg">
The Property Investment Professionals of Australia (PIPA) chair, Ben Kingsley, provided Property Observer with their top three guidelines to ensure you are speaking to the most reputable expert for your team.
Their three guidelines:
1) Are they ‘formally Qualified’ to property investment advice?
2) Ask how are they being paid?  If it’s a fee for service the consumer know upfront, if they are being paid by the developer, builder or marketing company, then they must fully disclose all their fees, including any hidden fees, commission or kick backs between businesses.  Consumer must be fully informed before making their judgement as to whether they are working in their (the consumers) best interests or their own.
3) Are they promoting one set strategy or way to build so called wealth.  If so, the consumer must ask themselves is this best suited to my personal needs, meaning is it a tailored solution to their needs or are they being ‘sold’ a so called ‘only way to wealth’ set model.
Which experts are most crucial to you in your investing team?
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jduke-EHk3XBmHkn

Creating your investment team

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If the recent federal election is anything to go by – a pivotal role that has emerged has been the aggression expressed on social media – yes, our new digital economy. This in turn has led to the most combative and often under handed strategies ever seen before on the political arena. If this is what is now to be the new norm the next three years will be very interesting.
In the run-up to Saturday’s election the economy was rightfully front and centre, where it should be noted that the Australian economy is performing very well when compared to other western economies.
The <a href="/news">RBA has left interest rates on hold</a> which opens the question – has the cash rate bottomed? Certainly the job would be easier to scrutinise if economic and financial forecasting could suddenly turn out to be more accurate for Australia’s $1.6 trillion economy. One thing you can be assured of is that now the LNP have won the election, they won’t be sucker–punched into providing a date when the budget is likely to return to surplus.
A recent report noted that <a href="https://www.theage.com.au/business/the-economy/manufacturing-declines-for-26th-month-20130902-2szkd" target="_blank" title="Manufacturing declines for 26th month">manufacturing has declined for a 26th month</a> and one can only expect to see a slight improvement with this sector given the Australian dollar has depreciated around 15% from earlier this year.
The Australian economy continues to grow at a sluggish pace with the Bureau of Statistics revealing this week the economy grew 0.6% in the June quarter. The annual growth rate is now 2.6% with the trend growth sitting at 3% so we are growing at below trend growth. Whilst we remain at below trend one can rest assured that governments won’t be in a hurry to return the budget to surplus. Of particular interest when the GDP figures were announced was the household savings rate continues to remain high – economists predicted a savings ratio of 10.7% to see it come in at an increased 10.8%.
<img class="aligncenter size-full wp-image-8177" src="https://www.rwm.com.au/files/2013/09/31-08-2013-10-42-35-AM.jpg" alt="31-08-2013 10-42-35 AM" width="470" height="304" style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;">
I am not of the school of thought that <a href="https://www.businessspectator.com.au/article/2013/9/2/election/abbott-will-trigger-housing-boom" target="_blank" title="Abbott will trigger a housing boom ">Abbott will trigger a housing boom; </a>“the looming Coalition landslide win on Saturday is now virtually certain to trigger a series of housing booms in Australia. In some areas the boom is not waiting for September 7.”
I agree that some areas are certainly experiencing a mini–boom which we have seen plenty of times before. Presently within a 10 kilometre radius of the CBD we are seeing apartment markets posting very strong sales data although the same can’t be said for housing which remains slow and steady.
One of the problems is that Fairfax Media and News Limited online platforms and newspapers are talking it up in an attempt to get those advertising revenues up in their respective newspapers. Once again easily one of the biggest problems our real estate markets face is <a href="https://www.propertyobserver.com.au/news/australian-stamp-duties-the-fourth-highest-in-world-for-luxury-home-purchases/2013080563842" target="_blank" title="Australian stamp duties the fourth highest in the world for luxury purchases.">Australian stamp duties are the fourth highest in the world for luxury purchases.</a>
I read a report in this month’s REINSW Journal that “stamp duty costs Australian property market 40,000 sales”. Just goes to show how state governments are so economically illiterate when a new study, "<a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;ved=0CDEQFjAA&amp;url=http%3A%2F%2Fpeople.anu.edu.au%2Fandrew.leigh%2Fpdf%2FStampDuty.pdf&amp;ei=81otUv_gIYG4iQf4x4CYDQ&amp;usg=AFQjCNFrpFyDhTdWJgdyFtF9dy_k4oDT-g&amp;sig2=Uabno-1c72YyW-292Au5wQ&amp;bvm=bv.51773540,d.aGc" target="_blank">How do stamp duties affect the ousing market?</a>", authored by Ian Davidoff and Andrew Leigh – has found a correlation between stamp duty and the stagnation of housing sales in Australia.
According to the study’s findings, an increase in stamp duty rates from 1993 to 2005 led to approximately 39,000 forgone sales in Australia. The study revealed that the short – term impact of a 10% increase in stamp duty is to the lower house prices by 3%.
If the property market is supposed to be booming this theory is certainly not reflective in the property volumes we are currently seeing in Mosman, Cremorne and Neutral Bay, which where yet again down this week. All three demographic markets are significantly down on the same time last year. To put this into perspective the Mosman housing market peaked at 168 last spring/summer yet this week it hovered around the high 70’s to finish at 80. Mosman apartments peaked at 112 this time last year and this week they sit at 61.
I would offer this interesting observation; buyers aren’t seasonal – vendors are!
 
<hr>
 Robert Simeon is a director of<a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay</a>and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog<a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow" style="font-size: 14px;">Virtual Realty News</a>since 2000.  The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Buyers aren't seasonal, but vendors sure are: Robert Simeon

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The cool climate Lerida Estate winery overlooking Lake George near Canberra, with Glenn Murcutt-designed buildings, has been listed by Colliers International agent  Tim Altschwager.
<a target="_blank" href="https://rca.colliers.com.au/property-commercial+farming-nsw-lake+george-500860655">The expression of interest campaign closes October 10 </a>with strong interest expected from Chinese interests.
The Lerida brand and business operations are part of the sale. 
Renowned for its pinot noir and shiraz viognier wines, the 16 hectare winery is off the Federal Highway on the Cullerin Escarpment in the Canberra District wine region.
<a href="https://www.leridaestate.com.au" target="_blank">The escarpment estate</a> has eight hectares planted by vendors, Jim Lumbers and Anne Caine in the years since 1997.
Their inspiration was Dr Edgar Riek’s work over 20 years at Lake George Winery, the adjacent vineyard.
The name, Lerida was first given to the Lake George region by the Scottish-born explorer and surveyor of South East Australia, Major Thomas Mitchell. Mitchell served in Portugal, and during this period travelled in Spain, including around the area of Lerida.
In 1827, Mitchell took up the position of Surveyor-General of NSW, and in this position, he travelled to the Lake George region and named a creek a few miles north-west of Lake George Lerida Creek because it reminded him of Lerida in Spain.
Subsequently, Hamilton Hume called his property on the creek Lerida. Jim and Anne picked up this name for their vineyard.
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Lerida Estate winery at Lake George listed

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The latest housing finance figures released by the Australian Bureau of Statistics (ABS) show that total lending for housing continues to grow steadily in response to interest rate cuts and the positive housing outlook, but that first-home buyers are missing out.
Housing finance figures for July 2013 show, in trend terms, that the number of owner-occupied finance commitments rose by 1.6% – following increases of 2.1% in June and 2.4% in May.
If refinancing is excluded, the increase, in trend terms for July, is 1.5%. 
Increases were recorded in all states with the largest increases in the ACT and Queensland, up 2.0% and 1.9% respectively, in trend terms.
There are increases in the purchase of established dwellings (up 1.8% in trend terms), the purchase of new dwellings (up 1.4% in trend terms) and the number of commitments for the construction of new dwellings (up 0.2% in trend terms).
The proportion of first-home buyers in the number of owner-occupied housing finance commitments fell to 14.7% compared to the June figure of 15.1%. The figure remains persistently low compared to the long-run average proportion of 20.1% despite seven interest rate cuts since November 2011.
In large part, this drop can be attributed to state governments withdrawing previous levels of support for first-home owners buying established dwellings and it is established dwellings that 80% of first home buyers prefer.
The value of investment housing commitments rose by 0.8%, in trend terms, in July resulting in over a year of consecutive monthly increases.
With the proportion of first-home buyers remaining consistently below the long term average, this needs to be a high priority issue for the incoming government.
 
<hr>
 Peter Bushby is president of the <a target="_blank" rel="nofollow" href="https://www.reia.com.au/">Real Estate Institute of Australia.</a>
 
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First-home buyers missing out amid positive outlook for nation's housing market: Peter Bushby

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On the face of it there's no apparent logic as to why accepting a smaller yield would make sense.
Unless of course, you intend to occupy the property when the lease expires; or it may adjoin the one you already own. In which case, the initial low rental is really of north of paramount importance.
However, not every such sale will have a special value to the purchaser. More often, the reason for accepting an initial low yield will be that:
<ul>
<li>
There is a pending review, to bring the rental in line with market level;
</li>
<li>
You have a strong tenant and a long lease, and place some added value on having a secure cash flow; or
</li>
<li>
The property has redevelopment potential, and a short-term lease.
</li>
</ul>
When are you able to snare a higher yield?
Sometimes the remaining lease on a property may be short, with no certainty the tenant will continue on.
You're being compensated for the lack of security in cash flow.
Therefore, despite the rental being appropriate your passing yield may well end up higher than usual. And, in effect, you're being compensated for the lack of security in cash flow.
However, there are several other reasons why you may obtain a higher passing yield:
<ul>
<li>
The rental is above market, and likely to fall when the lease expires;
</li>
<li>
The property is purpose-built, and only suitable to a narrow range of alternate uses;
</li>
<li>
The building itself is obsolete, and would soon in need of upgrading or replacement;
</li>
<li>
The tenant could be considered financially weak; or perhaps …
</li>
<li>
The property is currently occupied under a non-conforming-use permit.
</li>
</ul>
And so, it's important to users seek advice from your consulting team — to properly interpret the evidence you have available.
The bottom line is you must not simply accept every passing yield as "reflecting the market", whenever you're looking for comparable sales.
Instead, make sure you look behind each and every sale. And you need to discover whether the rental was at market level; the tenant and lease period were secure; or if there may have been any hidden potential for further development.
 
<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
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Should you ever accept a lower yield? Chris Lang 

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Asking the right questions is an absolutely critical skill for property investors looking to get ahead with their investing, particularly if they're hoping to ensure the suburb or area they are looking at is going to stack up.
Positive Real Estate's Sam Saggers points to 10 easy questions that you should ask as a starting point. 
1) What is the availability of new land? Will it be effected by urban sprawl or infill development?
2) What major infrastructure projects are happening in the area? 
3) What major retailers are moving to the area?
4) What commercial office space is being expanded?  Are the more jobs being implemented in small businesses?
5) What transport plans are in the area? 
6) What is the major demographic of the area? Could it change over time positively 
7) What schools are in the area? Does that match the needs of the market? Would families fight to live in the area to benefit from the schools?
8) What ability does the market landscape have to change? Or be gentrified?
9) What are the rentals yields like?
10) What are major companies doing in the area? Are airlines flying more regularly to an area? Are major companies building in an area?
He admitted that hotspotting is not an exact science, and <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/stafford-blooms-but-four-out-of-five-sam-saggers-brisbane-hotspots-yet-to-show-promise-samsaggers/2013053061795">while not every suburb will grow as expected</a>, he said these 10 questions are crucial for investors to be asking.
To explain how he approaches these questions, Saggers pointed to Queensland's <a target="_blank" href="/news">Townsville</a> as one area widely regarded as diverse and offering a lot of demographic changes. While it has been on investors' radars for some time, he still said it has some good investment opportunities.
"[It's] Queensland’s strongest regional economy and de facto second state capital," Saggers said.
He pointed to major infrastructure of hospital redevelopments as being important for the area's future. For instance, the Townsville Hospital has recently completed the first stage of a $437 million redevelopment project.
"Townsville has become Queensland’s largest service center after Brisbane and currently has $54 billion of committed infrastructure projects across mining, construction and transport," he said.
He then looked at supply and demand, and found the picture to be favourable.
"Demand is improving, supply of mortgage in possession stock, that was a hangover from the GFC has dried up. There is large land estates that can aid the cities growth but the supply of new housing is limited to a few estates and the Honeycombs redevelopment of the urban city fringe," he said.
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Sam Saggers' 10 questions you should ask about every suburb

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As property investing is an unregulated industry, it comes as little surprise that you must undertake your due diligence on those you include in your investment team to avoid getting ripped off.
 
<img alt="poll-results-sept-10" height="325" width="470" src="/images/stories/2013/09/10/poll-results-sept-10.jpg">
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How do you find the best property investment expert?

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After another week of official interest rate decisions and rebounding house markets, it’s time to put property into perspective.
Most of what we read about property prices and values is of a short term nature – it allows us to track a market by sales.
In the latest release, RP Data-Rismark’s August home value index shows that Sydney house prices rebounded 5.4% in the three months to August, and in Melbourne they’d gained 4.8% over the same rolling quarter.
The average of the eight capital cities was 4.0% gain in house value over the quarter.
However, property is a long term investment so I look at property numbers that reflect deeper value and take in metrics other than price. For instance, RP Data’s total gross return. This is a number that shows property value not in averaged sale prices, but as rental income plus capital gain.
Total gross returns are crucial for landlords, investors and for self-managed super fund members, however it’s a measure that everyone should look at prior to entering the property market.
In the RP Data Index for August the best total gross return of residential property over the year to August was 14.5% in Perth followed by Sydney on 11.7%. Melbourne – in spite of some weak property results in the past two years – managed a yield of 8.3% on residential property in the year to August.
RP Data says the total gross return on residential property in the year to August, across the eight capital cities, was 9.9%. This is a solid result for property.
There are reasons to look at property yields.
Firstly, yields are a less volatile measure of a market than prices. When house values are low, rental income can reinforce the investment, and when the market is roaring – pushing housing supply into the market – lower rental income can be compensated by capital gain.
The second reason to look at gross yields is that it reflects a true measure of value. House prices show you what the market was prepared to pay in a given month. But capital gain plus income is a more sustainable measure of your expected returns over time.
RP Data’s Cameron Kusher has interesting figures in terms of house prices versus total gross return: in October 2010, Australia’s housing market peaked. But when it eased off, house values dropped until May 2012, and have not returned to peak levels.
But when total gross returns peaked in October 2010, they simply went flat until May 2012, and have been climbing ever since. Total gross return acknowledges a small hedging effect against price fluctuation – it shows deeper value.
And remember, even if you live in your house, it still has a rental value – it’s just a value you take in kind, not in cash.
So, when investigating a house market, start with prices but keep your eye on gross total returns.


<hr>
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Keep your eye on gross rental returns: Mark Bouris

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With the election figuratively just around the corner and still not a peep from the major parties on any housing policy, we thought it timely to provide a quick run-down on a few key housing metrics across the electorates. 
See below our top ten leagues tables by electorate:
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<hr>
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/" rel="nofollow">RP Data.</a>
 
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Housing stats across federal electorates: Tim Lawless

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It turns out the property election twitter feed is largely around the lack of attention to affordability and the general industry in the campaigns we've been seeing.
Do you think this should have been a focus?
<a target="_blank" href="https://twitter.com/IndustryWomenC/"><img alt="TWEETOFDAYELECTION" height="181" width="470" src="/images/stories/2013/09/06/TWEETOFDAYELECTION.png"></a>
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