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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Employment has become a key issue for the ACT office market, with continued public service staff cuts and efficiency pressures resulting in a stagnated leasing market.
Estimates are that 10,000 – 14,000 public service jobs may be cut over the coming years, regardless of which political party comes to power following the September 2013 federal election. Given the concentration of public servants in Canberra, this is likely to have a significant ongoing impact on the local office market.
There is likely to be a short-term, six to 18 months, decline in confidence should the Liberals get elected. However, nationally the property mood will improve given some certainty.
For the vast bulk of public servants nothing will change however, confidence will be eroded until the look and feel of the new Government is established and there is likely to be some churn in our office market next calendar year as departments are re shaped/ badged.
If history is anything to go by, many jobs that are spilled will be replaced with consultant positions that will be handed back to the government. This may take six to 12 months.
Over the past three years the Canberra office market has seen the emergence of a two tier market, with an increasing price gap between A-grade and secondary stock. This is expected to continue as building owners struggle to secure long term tenancies in light of the Commonwealth’s desire to cut spending. This will place downward pressure on WALE’s and impact investor confidence.
The Canberra office market will remain soft. However, some of the new, never occupied office space that was built on-spec at the end of the last supply cycle, in 2010, may be taken up as it complies with the government’s sustainability needs and is ready to occupy.
Demand for new A-grade stock which meets key sustainability indicator targets, such as NABERS ratings, is likely to remain more stable, with rental levels for these properties expected to maintain their current levels.
Incentives will remain a large part of the rental landscape while total vacancies trend above 10%.
We expect that A-grade incentives will remain relatively steady over the next year. However, some further tightening is possible if A-grade vacancy levels fall further. This will have an improved effect on A-grade gross effective rents thereafter. Face rents however, are unlikely to have large upward growth over the next three years.
With the growing importance of NABERS ratings, owners of secondary stock will be faced with a decision of whether to upgrade or try and lease an asset in an environment of high secondary vacancy.
A further setback for these owners is the government’s announcement not to honour the $1 billion tax break for green initiatives (retro fit and refurbish) which was due to commence on the 1st of July 2012. The improvement in the secondary market will strongly lag the A-grade market, and as such incentives will maintain their current high for the medium term. Hence the defined division of this two tier market.
Efficiency savings have become an increasing issue for property owners and developers as Government has increased the efficiency dividends to 1.5% in late 2011 to aid in reducing costs to meet surplus. Further cuts are likely in the lead up the federal election in September 2013 and particularly afterwards, regardless of which party takes office.
These factors have led to a lack of demand for new space by the public sector and an increased appetite for fitted out premises and cheaper accommodation alternatives.
A lack of supply over the next 12 to 24 months, combined with an environment which is unlikely to facilitate any speculated stock in the near future, are considered to see the vacancy rate trend above 10% for the short term, before contracting slightly.
The airport is an anomaly in the Canberra market as a significant amount of space has been built over recent years and has not yet been occupied.
In regards to A-grade and B+ stock, rents are expected to remain stable however secondary space will continue to be challenging.
The local government needs to reset policy settings to provide a better framework for the refurbishment of conversion of older stock address this issue.
Investment activity in the Canberra Office market is likely to be limited for better quality assets as Insto and REIT’s look elsewhere for the short to medium term however the recent sale $151.7 m which should put some confidence back into Canberra’s A-grade asset market.
 
<hr>
 Steven Flannery is valuations director for <a href="https://www.knightfrank.com.au/en" target="_blank">Knight Frank</a>, Canberra
 
 
 
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sflannery-VE7XWi9A2a

How will the upcoming election impact the Canberra office market? Steven Flannery

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A rare development site in Adelaide's Riverbank precinct is up for sale with an asking price of about $6.75 million.
The 62 Hindley Street site, known as LC House, is owned by a hotel developer who purchased the property for about $6.5 million in 2010.
Selling agent, Knight Frank director Mr Tony Ricketts, said the property was primed for redevelopment and would suit retail, commercial, student accommodation, apartments and car parking.
“Major public investment in the CBD is creating the potential for new apartments, commercial and retail space and tourist accommodation, but few development sites are in a prime position like 62 Hindley Street," he said.
The 62 Hindley Street site covers 1,785 square metres with dual frontage onto Hindley and Blyth Streets.
Offers close today.
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kjiminez-eaYKfU7qd2

Adelaide’s Riverbank precinct up for sale

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A local private investor has purchased an industrial property in Brisbane's Tingalpa at auction for $4.2 million.
The industrial property, at 40 Enterprise Place in Tingalpa, consists of 4,239 square metres of building, on a 6,610 square metre site.
Colliers International's Anthony White and Mathew Frazer-Ryan negotiated the sale on behalf of the vendor, Perpetual Trustee Company Limited.
Mr White said they received solid enquiry prior to the auction, with as many as 30 people attending and three serious parties bidding.
The new owner plans to undertake a small renovation of the Tingalpa property before putting it on the leasing market.
Built in 1995, the industrial facility has 3,946 square metres of industrial space and 293 square metres of office space.
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Private investor buys $4.2 million industrial property in Tingalpa, Brisbane at auction

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Advertising company The One Centre Group has taken a 275 square metre lease on the ground floor of the historic Company Director House building in Sydney's CBD.
The term of the ground floor lease, at 71 York Street, is for five years, with a gross rental of about $162,250 per annum.
Ray White Commercial office leasing directors John Skufris and Jeremy Piggin negotiated the lease.
Mr Skufris said the space was formerly a salon and day spa operation but was completely transformed "with the entire fit out removed, the ceilings exposed and the original timber floors sanded back to offer a strata-titled character space."
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The One Centre Group signs Sydney CBD office lease

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The Reject Shop will join a long line of blue-chip tenants that are moving into Adelaide's next major shopping mall - the Seaford Meadows shopping centre.
The discount retailer has taken 681 square metres of retail space in the yet-to-be built centre, which will be anchored by a Woolworths Supermarket and more than 14 speciality stores.
<img alt="seaford_meadows_sept_4_two" height="257" width="470" src="/images/stories/2013/09/04/seaford_meadows_sept_4_two.jpg">
Colliers International, in conjunction with Savills, has been appointed to manage the leasing of the centre.
“Chemist King and a liquor retailer have also been secured and negotiations are underway for the remaining tenancies," said co-leasing agent Ben Laycock of Colliers.
He said the centre's location, on the corner of Grant Boulevard and Bitts Road, was in the heart of the new Seaford Meadows neighbourhood development.
Construction of the new shopping centre is underway, with the mixed use development due for completion early 2014.
<img alt="seaford_meadows_sept_4_one" height="353" width="470" src="/images/stories/2013/09/04/seaford_meadows_sept_4_one.jpg">
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The Reject Shop taken in by Adelaide’s Seaford Meadows shopping centre

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Freight company Booth Transport has secured a six hectare site in Melbourne's Laverton North, in one of the biggest leasing deals in the city's west this year.
Booth will move into Kalari Transport’s former Laverton North headquarters on Fitzgerald Road, which comprises about 11,000 square metres of warehouse space.
Colliers International’s Nathan Bingham and Stephen Newsham negotiated the lease.
Year to date, it is estimated 110,000 square metres worth of industrial property above 3,000 square metres has been leased in Melbourne’s western precinct, which encompasses Laverton North, Derrimut, Truganina, Brooklyn, Altona and Sunshine.
“Colliers International’s Melbourne West office is currently handling a whopping 280,000 square metres of enquiry,” said Mr Newsham.
“Much of this leasing enquiry involves the awarding of third party logistics contracts whilst other deals are predominantly the result of companies restructuring their property requirements to lower costs and improve their overall efficiencies."
“Business expansion is also another common reason for relocation or the take-up of new space."
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Booth Transport secures six hectare lease in Melbourne’s west

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Some of Melbourne's most favourite retail high streets have experienced a significant jump in vacancies, most notably Bridge Road in Richmond.
The once popular discount fashion precinct, Bridge Road, recorded it's highest ever vacancy rate, according to the latest research from Knight Frank.
Vacancies along Bridge Road climbed to 16.5%, up from 11.5% a year earlier. And the research also showed that the strip had the highest churn rate at 11.9%, reflecting to the change of occupants.
Knight Frank Victorian research director, Richard Jenkins, said that Bridge Road’s loss of identity as a discount fashion destination as a result of the emergence of DFO centres had fuelled the rise in vacancy in recent years.
Other retail strips to record a spike in vacancy rates were Toorak Road in South Yarra, with vacancies nearly doubling to 12.8%; Glenferrie Road, Malvern rose from 3.6% to 6.2% while High Street, Armadale increased from 3% to 6.4%.
The emergence of online retailing was also partly blamed for fashion focused strips struggling.
But it wasn't all bad news for the high streets of Melbourne.
Burke Road in Camberwell; Puckle Street, Moonee Ponds; Acland Street, St Kilda; Clarendon Street, South Melbourne and Church Street, Brighton all experienced vacancy falls.
Mr Jenkins said the strips which recorded falls in vacancy rates all had a higher exposure to food and convenience based retailers, demonstrating the strength of the non-discretionary retail sector.
The Knight Frank research showed that Church Street in Brighton recorded a fall from 1.7% to 1.2%, as did Clarendon Street in south Melbourne, down from 6.2 % to 4.1%. Acland Street was stable at 2.8%.
Mr Jenkins said the outlook for many of those prime retail strips was "positive", pointing to new apartment developments coming on stream, "boosting the surrounding local population."
Rents in Chapel Street remain the highest, achieving rental levels of $1,000 per square metre per annum, whereas other strips such as Puckle Street, Moonee Ponds achieve rents of around $650 per square metre.
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Bridge Road, Richmond records highest ever retail vacancy rate: KnightFrank

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South African hotel baron Sol Kerzner has entered into an agreement with Malaysian-backed company Mulpha Australia to assume management of one of Australia's most prized luxury Island resorts - Hayman Island.  
Under the deal announced today between Mulpha and Mr Kerzner's international hotel group, Kerzner International, the iconic resort will undergo a multi-million dollar renovation and be re-launched as One&amp;Only Hayman Island in April 2014 - the first of its kind in Australia.
Mulpha will maintain full ownership of the island and the resort.
Mulpha executive chairman Seng Huang Lee described the partnership as the start of a "new era for the resort under their One&amp;Only brand”.  
Kerzner International’s One&amp;Only brand - located in the Bahamas, Mexico, Mauritius, the Maldives, South Africa and Dubai - is considered to be one of the finest luxury resort properties in the world and known for its "blow away the customer" experience.
Mr Kerzner was not available for immediate comment but sources told Property Observer he is due to arrive in Australia later this month for a three day visit.
Kerzner International chief executive Alan Leibman said Hayman was the perfect destination for the first One&amp;Only brand in Australia and “I know the resort will be well received by our many loyal One&amp;Only guests, as well as guests that have been enjoying Hayman for years."
“My personal commitment is to make One&amp;Only Hayman Island a must stay for the well-travelled to explore the wonders of this magnificent destination.”
DBI Design, in partnership with the Kerzner International Development Team, has been engaged for the interior design and landscape architecture for the resort’s rebirth.
In a glimpse of what is to come, the new Hayman rooms and Hayman suites, featuring ocean and lagoon views, will be introduced with reimagined interiors and amenities and the iconic pool will be renewed. A variety of world-class cuisines overseen by internationally acclaimed chefs will also be introduced, along with a One&amp;Only Health Spa.
As part of the ongoing development and investment programme, Mulpha will continue a staged rollout of the ultra- luxury Hayman Private Residences and Hayman Marina Residences offering private ownership opportunities for select clients and guests.
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Sol Kerzner finalises Hayman Island management agreement

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Current investor activity in Perth’s residential sector is relatively weak. Despite interest rates being very low and rental yields being around 5%, investors still find the entry costs to Perth property significant.
Particularly against the backdrop of a relaxed vacancy rate and its potential to <a href="https://www.propertyobserver.com.au/news/perth-landlords-lower-rents-to-dissuade-potential-buyers/2013090264735?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news&amp;utm_source=Property+Observer+List&amp;utm_campaign=ae09f508a4-June_21_1_29_2013&amp;utm_medium=email&amp;utm_term=0_a523fbfccb-ae09f508a4-" target="_blank">soften median rents in coming months</a>.
Investor activity in the market is important because around 80% of rental accommodation is provided by the private sector. Governments simply cannot provide rental accommodation for everyone who needs it, so incentives to investors flows through to more choice in accommodation for tenants.
Most investors purchase multi-residential stock such as flats, units, apartments and villas. Partly because these are more affordable than houses but also because, depending on location, they tend to be easier to rent and more sought after by tenants.
Around half of all multi-residential property is owned by investors.
Property investors can spend a lot of time researching a suitable purchase but this is only half the skill of successful real estate investment. The other important factor is keeping the property in good condition.
Understandably, there is a tendency to minimise ongoing expenditure and to maximize returns, but experienced investors know that spending money to keep a property in good condition results in better performance, including more conscientious tenants, above average rents and fewer vacancies.
Ultimately, a well maintained property is likely to attract a better resale price.
Unless you have plenty of spare time and are familiar with the legal processes involved in renting property, it pays to ensure your investment is looked after properly by appointing a licensed property manager. Around 60% of investment properties are professionally managed in WA.
Such properties are more likely to require less long term maintenance than those handled privately, simply because property managers conduct regular inspections and advise owners of any upkeep.
A good property manager will also advise owners of any up-coming major work identified during an inspection.
Having appointed a property manager you should conduct a thorough inspection of the property to determine any repair work.
If a rental property is in top condition when leased, it is much more likely that a tenant will keep it that way. It is important that owners set a high standard for the condition of their property at the start of the lease in order to maintain that standard from the tenants.
This is particularly relevant for investors who may have purchased older, possibly run-down properties.
For owners, it pays to spend money on quality locks, security screens, a fresh coat of paint, air-conditioning, floor coverings, window treatments, tap fittings, contemporary tiling and repairs to cupboards.
Better presented properties will attract more appreciative tenants and a better rental return.
 
<hr>
 David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank" rel="nofollow">Real Estate Institute of Western Australia.</a>This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx" rel="nofollow" target="_blank">reiwa.com</a>.
 
 
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Good property maintenance attracts better tenants and creates greater rental return: David Airey

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In my last post I covered a few big-picture topics that are important to all buyers.
But we also need to always <a href="https://www.propertyobserver.com.au/demographics/look-beyond-the-demographics-to-find-what-buyers-really-want-peter-chittenden/2013082664535" target="_blank">look beyond current market demographics and consider new emerging trends</a>.
Across a wide variety of projects here are some of the style leaders that buyers are currently looking for in new developments.
Smaller and better
First up there has been a long-term trend towards small. Apartments have been getting smaller, driven by varied factors including cost, but also because the feedback is that buyers are in fact happy with smaller apartments.
But they expect them to be well designed, with the clever use of interior space and in a handy location that offers great local facilities. Small appears to be a good match with today’s busy and highly connected lifestyles.  Like cars, big no longer means better. But as we have seen with cars, design does need to be first rate.
And while we are thinking smaller in terms of space and cost I have previously talked about the <a target="_blank" 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=0CC8QFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Fdevelopments%2Faustralian-apartments-won-t-be-getting-any-smaller-peter-chittenden%2F2013021159283&amp;ei=D2omUouyN-aXiQeb34CYBQ&amp;usg=AFQjCNG7u6YSD64hlzijcYk9XryB8aoEKg&amp;bvm=bv.51495398,d.aGc">emergence of micro apartments</a> that have recently been developed in New York and San Francisco.
While we are yet to see micro apartments here, the number of households with only one or two residents looking for the perfect place to live is on the increase and driving demand for smaller apartments.
These buyers are clearly seeking out apartments in key areas, often in or near CBD positions. For the ideal location this trend is already attracting prices beyond a million dollars and the spread of high-end, one-bedroom apartments with this price tag is set to be much more common.
I feel sure that we will soon be tracking $1 million plus one-bedroom apartments as we did with house prices some 20 years ago. It has already been suggested that Sydney’s median house price will likely reach above $1 million by 2020 and so is it reasonable to expect that apartments will not escape this trend.
Small appliances
Thinking small, we are also seeing the wider use of smaller appliances in apartments, but again matched by quality and convenience.
A great example is the draw dishwasher (first designed in NZ in 1987) and also induction cooktops, combination microwaves and flexible fridges where a freezer converts for wine storage. These are all good examples of popular ideas now turning up in new projects.
The two-bedroom suite
The two-bedroom suite layout is now a very popular design trend with apartment buyers. It’s a simple idea where there are two-master bedrooms, with full bathrooms and walk in robes, then there is a big central living area, this design is very popular with a whole range of buyers and investors.
They are great for shared renters or anyone wanting to have self-contained guest accommodation or for unattached joint buyers.
Social buildings
Buildings designed with a range of shared social spaces are also popular, be that space a well-equipped BBQ area, a library or cinema room.  These are fashionable and this trend neatly fits with the popularity of smaller apartments.
In a number of buildings I have seen recently, the idea is to have a mix of these facilities, with nothing too big so that residents have a variety of options. The shared facilities make it possible to entertain extended family or a small group of friends. Other options now include communal lounge areas, rooftop green spaces and outdoor dining pods.
Being connected
Another key trend is that buildings must have connectivity and that starts with mobile phone reception and wireless internet. Both are extremely important to apartment living and every room needs to be connected. The spread of more people working from home is a factor to keep in mind.
For many buyers, a sense of community is truly important with apartments being convenient for both work and leisure-time activities and the spread of mini-marts, 24-hour and micro fitness centres alongside local cafes and shops are all setting the pace.
Being Green
Energy-efficient living is a big plus, and many buyers are now concerned about a building’s green credentials and that extends well beyond garbage recycling.
Environmental friendliness is a key factor for many buyers when deciding where to live as they look for storm water feed gardens, easy access to bike paths, and evolving popularity of shared car facilities and soon the emergence of plug-in stations for electric cars.
Secure bike storage also gets a tick, but the storage needs to be close to individual apartments not a long walk to a dark corner of the main car park.
Pets
Pets are also important, and so this trend for pet friendly buildings are now almost the norm and not the exception.
Some other items on the short-list of design improvements include better lighting, more imagination in the use of colours including kitchen designs and the use of varied materials so that glossy or low-sheen are no longer the only options. Sound proofing feature walls are also an agenda item with big television screens very much a fixture.
It is exciting to think about these trends, because appreciating what buyers are looking for helps lead to better design and I know that developers are more than happy to deliver projects to match what buyers are craving.


<hr>
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
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