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

<html><body>
Here is a good question for you.
Which industry is Australia’s largest?
One might think it would be mining, given the amount of airplay it gets.  But with about 8,500 business operations you would be way, way off.
Have another go. Public administration? Wrong. Professional services? Incorrect. Retail? No.  
The answer is construction, with just under 350,000 businesses operating across the country.
One in every sixth business in Australia builds something.
Sadly, however, the building game must be on the nose because 5,575 construction-related businesses stopped trading over the last 12 months alone.
According to some great work by Craig James and his economic team at Commbank, we know that 1,840 residential property operators closed their doors last year. A further 680 home builders shut up shop. So did the same number of brick layers. Plasterers broke the trend with just 630 operations laying down their trowels.
Talk about the wheels falling off the ute.
Australia’s dwelling construction rate – measured as the number of new homes built per capita – is at record lows.
Since I was knee-high to a grasshopper, the average Aussie build rate has been eight new homes per 1,000 head of Australian population. This rate, like all things in the construction game, has peaked and troughed, but since the mid-1990s it has been on a steady trend down. Today it averages just six.
This might not sound like much.  So let me put it to you another way, we are now building 25% less homes than we used to.
New property has never been our first choice. This applies across the spectrum – whether you are buying for the first-time; upgrading or downsizing; or buying for investment.
The statistics suggest that just one in every five first homes purchased is new. It is even less for investors, with 85% buying a resale instead of a new dwelling. Second and subsequent owner-buyers, seem a little keener for something new, with one in four opting to buy new digs rather than something older.
The Commsec analysis also shows that there has been a major increase in the number of Australians starting their own superannuation funds.
Apparently there are now 75,000 superannuation funds in operation across Australia. This segment is growing by about 5,000 new businesses each year.
As a result of this growth – and in direct contrast to residential property operations – Australia’s non-residential property sector is increasing in size, up by 300 new businesses last year, to 57,000 operations Australia-wide.
Also, the bulk of Australian workers are employed by small or medium-sized businesses.  In fact, 61% don’t employ any staff at all. A further 24% employ just a few people. Just one in every 20 Australian businesses employs more than 20 people.
As one would expect, most businesses are located in NSW (33%); followed by Victoria (26%); Queensland (20%); Western Australia (10%) and South Australia (7%).
Business numbers grew the most in Victoria (up 8,000 new firms), then followed by NSW (up 4,000) last year. Business numbers fell last year in Queensland; South Australia; Western Australia and Tasmania.
Talking a longer view, there have been 70,000 new business start-ups across Australia over the past five years – 32,500 were in Victoria; 21,500 in NSW; 7,300 in WA and just 4,000 in Queensland.
For more information from the economics team at Commbank, go <a href="https://www.commbank.com.au/corporate/research/economics" style="box-sizing: border-box; border: 0px; margin: 0px; padding: 0px; color: #444444;">here</a>.
Job creation – and that means new business operations – is very important when it comes to the overall health of the property market. With new business market shares like this, it is little wonder that the Sydney, Perth and now Melbourne residential markets are doing so well.
There has been very little national conversation about getting more housing starts underway. Sadly, not a peep out of either side of federal politics. Precious little meaningful dialogue is coming from state or local government, too.
Interest rates need to continue falling in order to (hopefully) lift housing starts.
One thing to consider is allowing superannuation funds – with the right caveats – to invest more easily in new housing construction. It is starting to happen. It can be a great and secure investment. Unlocking this potential is one way forward.
Post the September 7th  election, it is small and medium-businesses that will make Australia work. Wind back the legislation. Make it easier for us to operate. 
It is a 24/7 world – no penalty rates, leave loading, mandatory sick leave or (within reason) minimum set hours. Cut the red tape. 
The vast majority (like 99%) of employers aren’t shitty bosses, they reward good staff. Allow us to employ more.
<hr>
Michael Matusik is the founder of <a style="font-size: 14px;" target="_blank" href="https://www.matusik.com.au/" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  
Read <a target="_blank" href="https://www.matusikmissive.com.au/" rel="nofollow" style="font-size: 14px;">Michael’s Blog</a> or follow him on <a target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts" rel="nofollow" style="font-size: 14px;">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow" style="font-size: 14px;">Twitter</a>  or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
</body></html>

michaelmatusik-49YzLvdmNv

The wheels have fallen off the construction industry: Michael Matusik

<html><body>
Financial commentator and breakfast television host David Kochie says rising house prices are indicative of a patchy recovery rather than a price bubble.
He says to be careful of short term statistics but says if there is to be a property boom then buyers should be prepared.
“In a nutshell, the residential property market is patchy, it is recovering on the back of low interest rates and specific regions (such as Sydney) are looking strong,” he wrote for News Limited.
“But if the key property indicators continue to turn up and a solid trend is established in your region, it's worth brushing up on the best strategies to profit from a property boom.
He gave News Limited his top four strategies for profiting from a boom:
Be ready to pounce
“As Christopher and Wilson point out, it's a patchy recovery right now. But history tells us that when a property hot spot is established, the trend ripples outward from the starting point.”
“So maybe position yourself as a buyer in the suburb adjacent to a hot spot but where values are more reasonable but likely to get dragged up as buyers look for better bargains nearby. It could also be worth looking at property in a price bracket just above the one making progress, so the upward pressure absorbs your bracket and drags it up as well.”
Sell the laggards
“One problem from the recent property slump has not only been the softening in values but also the extended length of time taken to make a sale.”
“If you've tried, and failed, to sell a property and you're determined to move on, then start readying yourself and the property for another attempt.
“But make sure you price the property accurately. While activity could be improving, buyers are savvy.”
Ride next door’s coat tails
“Keep an eye out for recent property sales in your street or home unit block.”
“We have friends who live in a block of apartments and the unit on the floor above seemed to sell quickly. So they rang the real estate agent, who told them he had five other contracts on the property with unhappy potential buyers missing out.
“The agent showed through those potential buyers, who made three separate offers, and the property was sold within two days without actually going on the market.”
Keep an eye on the economy
“Property is a prisoner to the business cycle, macro and micro, so ensure the area you buy in isn't over-dependent on one industry or project.”
“Form an opinion on whether the wider economy is expected to remain stable.”
</body></html>

po-LsXgBTHBmX

David Koch's top four tips for profiting from an imminent property boom

<html><body>
International health and fitness club Anytime Fitness has leased 557 square metres of retail space in Adelaide's suburb of Unley.
The property, at 14 Arthur Street, is adjacent to Unley Shopping Centre and has been leased for a term of 7 years, at an annual net rent of $130,000.
Jones Lang LaSalle agent Robert Parkinson's negotiated the lease.
</body></html>

kjiminez-eaYKfU7qd2

Anytime Fitness leases Unley retail space

<html><body>
Gym operator Snap Fitness has secured 350 square metres of retail space in Melbourne's leafy suburb of South Yarra.
The retail property, at 9/11 Clarendon St, is part of the 850-square-metre Dutton luxury car showroom, which is relocating to Richmond in 2014.
Under the leasing deal, Snap is taking a 10-year lease on the property. It is understood the owner was targeting a rent of $800 per square metre.
The lease was negotiated by CBRE's Zelman Ainsworth.
</body></html>

Snap fitness secures South Yarra retail leasing

<html><body>
A heritage listed retail property in Melbourne's Camberwell Junction has sold under the hammer for 30% above the reserve price.
The retail property, on the corner of Burke and Riversdale Road, was sold to local private investor for $3.6 million, on a tight yield of 4.56%.
The hotly contested auction drew more than 70 bids, with several serious bidders, said Savills selling agents Nick Peden and Clinton Baxter.
The 250 square metre property is leased to restaurant Meat &amp; Wine Co and is subject to a 10 year lease at a current net rental of $164,117 per annum. The lease has fixed annual increases of 4%.
Mr Peden said the sale price was a signal that the market was very strong, buoyed by the low interest rate environment.
While Mr Baxter added that both the record low yield of 4.5% and the building rate of $14,400 a square metre were signs that good quality retail investments were in high demand and buyers were confident of the market outlook.
The 1885-built church-like structure is the former English, Scottish and Australian Bank. <a target="_blank" href="https://www.realcommercial.com.au/property-retail-vic-camberwell-500820651">The brick building</a> is somewhat awkwardly wedged in to the<a target="_blank" href="https://www.propertyobserver.com.au/victoria/fkp-completes-construction-of-delayed-aerial-apartment-project-in-camberwell/2012110757688"> newly built Aerial residential development</a>, retained as a concession to the rich heritage of the area.
It was the subject of a $500,000 renewal in 2009 during the construction of Aerial.
In 2007 planning minister Justin Madden intervened in the VCAT case surrounding the $150 million development to push it through following strong community opposition <a target="_blank" href="https://www.propertyobserver.com.au/developments/completion-of-fkps-apartment-project-aerial-in-camberwell-junction-delayed/2012062255229">though it still suffered from construction delays</a>.
It was designed in the picturesque Gothic style by architects William Wardell and W L Vernon. Wardell was responsible for a number of buildings around Melbourne.
According to Heritage Victoria the branch was responsible for facilitating much of the suburban building boom in the area after the extension of the railway line from Hawthorn in 1882.
The sale includes nine secure car parks.
The Aerial development, by Queensland developer FKP, has 144 apartments and nine shops.
</body></html>

Heritage listed Camberwell Junction retail site sold for $3.6 million

<html><body>
In one of the clearest signs that a CBD office market recovery could be underway, Colliers International has produced new research which revealed a 33% surge in enquiry levels in the first half of 2013.
Its figures showed 310 more enquiries were registered for an additional 273,989 square metres of office space in the 12 months to June, while deal volumes remained steady.
Despite industry concerns around business sentiment, Colliers said that then higher enquiry figures showed activity in Australia's office markets was "strong" and supported its own prediction of a "market recovery by H2 2014".
"We have heard a lot of doom and gloom about the office leasing market this year, but the facts are that there is activity in the market," said Colliers office leasing managing director, Simon Hunt.
In the Sydney CBD, more than 215,000 square metres of enquiry was recorded during the first half, while in the Melbourne CBD, enquiries hit 158 for more than 132,000 square metres of space. That compared to 140 enquiries for just over 81,000 square metres over the same period in 2012.
"Small and medium sized tenants are in the market looking to secure a good deal, and are helping to drive current levels of activity," added Mr Hunt.
The largest proportion of deals occured in the 1-999 square metre range, with 279 leases equating to 82,810 square metres taking place in the first half of 2013, the Colliers research showed.
Data from the research also showed professional services were responsible for a large proportion of the activity, driven by new leases to businesses such as AGL, BHP, Corrs Chambers, Pacific Brands, Virgin Active and IBM. There was also strong spike in the number of Information Technology and Communication companies looking to relocate, with this sector making up 20% of the enquiries.
</body></html>

Office market recovery underway, with 33% surge in enquirers: Colliers International

<html><body>
Engineering company WorleyParsons is believed to have a leasing mandate out in the Perth CBD market for a requirement for up to 20,000 square metres of office space.
Industry sources told Property Observer that they believe the company had narrowed its leasing options to two sites - the Kings Square precinct, which is part of the $5.2 billion Perth City Link project initiated by the State Government. The other location is the nearby $130 million 396 Murray St site.
WorsleyParsons currently has its staff spread throughout several building in the Perth CBD, including the QV1 tower, 600 Murray,  Adelaide Terrace and 235 St Georges Terrace. 
WorleyParsons today released a statment saying that "it is a matter of public record that WorleyParsons  is seeking to consolidate its office space in Perth. A range of options are being considered and the company has not yet settled on a preferred option".
</body></html>

WorleyParsons on the lookout for Perth office space

<html><body>
The federal election campaign is in fulll swing but one issue that has not featured prominently is housing affordability.
The focus may be on budgetary holes, asylum seeker policy and parental leave yet several writers on Property Observer have argued it should be on the national agenda.
Ernest Healy and Bob Birrell wrote today that housing affordability is an important election issue and that "the high cost of housing in Australia’s cities is denying most aspiring first-home buyers the opportunity to purchase a home."
While last week, regular observer Peter Chittenden wrote that <a href="/news">housing policy is the elephant in the room this election period</a>.
And just as the election campaign was kicking off, another regular observer Catherine Cashmore wrote about <a href="https://www.propertyobserver.com.au/economy/the-failed-politics-of-housing-affordability-catherine-cashmore/2013072163429">the failed politics of housing affordability</a>.
<img alt="poll-results-aug-30" height="80" width="470" src="/images/stories/2013/08/poll-results-aug-30.jpg">
</body></html>

Do you think housing affordability should be an important issue in the federal election?

<html><body>
‘Industrial is the new black’ has been bandied around the property sector over the past 12 months, but the catch-phrase itself and the notion that all industrial assets will outperform over coming years may prove overly simplistic.  
The drivers behind the renewed push of the industry toward industrial assets are clearly apparent; with the near record spread between industrial yields and debt costs and returns on fixed interest assets, such as term deposits, making returns highly attractive. 
Add to this a market where investment demand is above trend and supply levels below long-run averages, and industrial is a standout in the current environment.  
Certainly, this is an opinion shared by Charter Hall, and our overall weighting to the sector has been actively increased over recent years with the launch of our $500m Core Logistics Partnership (CLP) and Core Plus Industrial Fund (CPIF) having capacity to grow to $900m when fully invested. 
On the direct side, we closed the $208m Direct Industrial Fund (DIF1) portfolio oversubscribed and are now well advanced on raising $120m of equity required for the Direct Industrial Fund No. 2 (DIF2).  
But despite these broad positives, the need to remain selective on asset purchases is paramount, with tenant quality, building design, and lease covenant the absolute priority. We are mandated to only acquire exceptionally secure assets with lease terms in excess of 10 years to investment-rated tenants.
 Secondary assets may provide yields that look compelling, but with shorter lease terms or inferior covenants, we must strongly consider the downside and be priced accordingly.  
Do we pay more for prime assets? Absolutely. But with debt costs now under 5% for such assets, the accretion on a yield of circa 7.5%-8% is extremely compelling, when returns on 3 year term deposits have fallen 220 basis points in the past three years and now yield approximately 4.3%.  
While initial yields for secondary stock are very attractive at upward of 8.5%, this often comes with substantially higher risk. A recent survey by Knight Frank of the east coast industrial market showed there is over 971,000 square metres of secondary industrial space vacant.
 This is around 37% more than the prime stock for lease.  When considering that the vast majority of major leasing activity is occurring in the prime grades, the challenging secondary market becomes evident.  
Development in the industrial sector is relatively low by historic standards. That said, we have seen a rise of 8.9% over the past year as tenants look to upgrade space and developers and financiers become increasingly confident in speculative development.  
Uncommitted new supply is particularly apparent in Sydney and Melbourne, with just under 250,000 square metres of stock being under construction without a precommitted tenant.  This may see secondary assets face increasing competition in years to come, and investors should make adequate assumptions for any potential periods without income – and how this may impact capital values.  
The latest IPD results showed the industrial sector provided a healthy unlevered total return of 9.3% over the year to June 30, but unlisted industrial syndicates (where Charter Hall’s DIF fund represents 54% of the index) outperformed all other classes returning a substantially stronger 12.5% as high occupancy and fixed income growth lead to strong performance.  
Overall in the current low interest rate / lower growth environment, the new black for property is secure assets with fixed growth, low capital expenditure requirements and strong covenants that carry minimal income risk.  While this style of asset may be more prevalent in industrial due to the leasing structures, investors should look beyond a simple allocation to the sector.
<hr>
Richard Stacker is head of <a target="_blank" href="https://www.charterhall.com.au/Charter-Hall-Direct-Property-Fund-CHDPF">Charter Hall Direct Property</a>.
</body></html>

rstacker-DUvgSj7xWa

Industrial the new black, but be mindful of the grey: Richard Stacker

<html><body>
If only we had the proverbial dollar for every time someone has asked us ‘which property should I buy?’  
The mistake most buyers make is that they ask this question first, when it should be the last in a long line of others. They choose a property and build their purchasing strategy around it, rather than developing a strategy and then finding a property to suit it.  
In doing so, they run a higher risk of choosing a property that won’t deliver the lifestyle or financial benefits they need. It may even put them behind the eight-ball, making it much harder to play catch-up down the track.  
To choose the property that really is right for you, you need to start with the most basic question first: Do you want a property to live in as your family home, or purely as an investment to rent out?  
If a home to live in is what you’re after, it’s important to choose one that will cater for the way you live—not just now, but for the medium to long term. Property is expensive to buy and expensive to sell, so why spend thousands on stamp duty and agents’ fees until you absolutely have to? By holding the property for seven to 10 years, you’ll also give capital growth a chance to do its work; an important consideration even when you’re buying primarily for lifestyle purposes.  
Take a close look at your lifestyle. How many people will be living in the property? Are you intending to start a family during the time you live in the property? Do you already have children? How old are they now, and how old will they be in seven to 10 years’ time? Will they need a lot of outdoor space to run around, or is their indoor space more important? If you buy a smaller property now, will you need to extend it as your family’s needs change?  
Do you want to live in a certain area to access your preferred schools or tertiary institutions? What about your working life? If you work in an office, can you commute by public transport, or do you prefer to drive? If you’re planning to work at home, what kind of floorplan might you need to separate your working life from your home environment?  
If you want to buy a property purely as an investment, your lifestyle requirements and personal preferences must take a back seat. Too many investors evaluate properties based on what they would like to live in. It doesn’t matter if you don’t like the property and wouldn’t live in it yourself. The important factor is whether it will deliver the right financial outcomes.  
This is where the next question comes in. What’s more important to you—capital growth or income flow?  
If you’re in your working years it’s generally best to focus on capital growth, because that’s what will build your equity, or wealth base. You can use your working salary to fund the purchase and pay the mortgage. As time goes by and your equity increases, you can borrow against the equity to buy further wealth building assets.  
As you approach retirement, however, and the prospect of 20 or 30 years without a salary looms large, it’s more important to focus on property that will deliver enough rental income for you to live on.  
As a rule, residential property is best for capital growth because its chief value lies in the land it sits on, not in the building. Look in areas with a limited supply of properties but considerable demand from buyers. This will drive land values and maximise capital growth.  
By contrast, commercial property is your best bet for income replacement, because the main value of the property lies in the building and the rental income commercial tenants can generate. Focus on fast growing population corridors with increasing demand for services like petrol stations and convenience stores. The more people who spend money on these services, the higher your tenant’s turnover and the more rent you can charge.  
Can’t afford to buy commercial property or want to diversify and spread risk? Consider a commercial property trust instead.  
By asking the right questions from the start, you’ll boost your chances of choosing the most appropriate property—maximising your financial position and lifestyle choices in the years ahead.  
 
<hr>
 Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and homebuyers.
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News