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]

Joel Robinson

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

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

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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Many start-ups launch out of a garage or a living room before moving to a co-working space or sub-letting a desk or two from a more established business (usually under a license agreement).  
If your business is successful and grows, there will come a time when you’ve got to look for a business space from which to run your start-up. This article sets out a number of key points to consider in the process.  
1. Leverage  
The first issue to wrap your head around concerns leverage. First time tenants are often under the misapprehension that they have little leverage when negotiating a lease with a landlord.  
You need to get out of this mindset before you even start looking for a commercial property to lease.  
Over the last couple of years, a significant amount of commercial space has opened up in all of Australia’s major cities. Landlords are competing for good tenants. Use this to your advantage.  
2. Representation  
It’s important that you obtain representation, especially when renting your first commercial property. Many entrepreneurs will work with a real estate agent to secure appropriate premises.  
When you’ve found the premises you want to lease, you should engage a commercial lawyer to review the lease documentation and enter any lease negotiations with the landlord and/or their representative on your behalf.  
If possible, try and find a commercial leasing lawyer; a specialist in the leasing sector. A specialist will have a detailed knowledge of all the legislative requirements of a lease and will be able to quickly identify any onerous or unfair provisions in it.  
3. What to expect from your lawyer  
Make sure you get value for money from your lawyer. During the lease review process, a good commercial lawyer should give you guidance and advice in relation to what your rent covers (i.e. whether outgoings (utilities), cleaning services and parking are included as part of the lease arrangement).  
Many leases hide this sort of information in the fine print, which is where your lawyer can assist. Your lawyer will also be able to advise as to what property taxes you may be liable for, what insurances need be obtained and how to structure the provision of security (if any) to the landlord.  
 
<hr class="system-pagebreak">
4. Landlord concessions  
During the negotiation process, your lawyer should be pushing for landlord concessions. Obviously negotiating the rent down will be the first priority, but there are other areas your lawyer can focus on.  
With increasing commercial space opening up, landlords have become more amenable to providing new tenants with incentives to lease their premises. During the negotiation process, a lawyer can “feel out” the lessor in relation to what they may be willing to concede.
These concessions can include a free rent period at the beginning of the term (which can be really valuable if you need to conduct a fit out of the premises – and can enable you to only pay rent when your business is up and running after any such necessary works at the premises).  
5. Duration of lease and rent amount  
If you’re happy with your chosen premises it’s important to ensure that you have the option to stay there longer term if you so choose. Your lawyer should negotiation option periods that allow you to choose whether to keep renting the premises after the term of the initial lease is up.  
Typically, a landlord providing an initial three-year term may be amenable to providing a further two to three-year option period. When negotiating this aspect of the lease it’s important to be familiar with how any increases in rent may be assessed. It is fairly typical that during an initial term annual increases in rent correlate with an annual calculation of any increase or decrease in the CPI.  
It is also fairly typical for the amount of rent to be paid to be reviewed on a market basis at the beginning of any option period. These are important aspects to consider and matters a commercial lawyer should provide advice on.  
6. Termination and assignment  
Another important issue to consider is ensuring that there is a termination agreement stipulated in the body of the lease. This gives you as a tenant the option to exit the arrangement, for instance if your business outgrows the premises or if you decide the location is not ideal for your business needs.  
Again, these are issues which a commercial lawyer can provide guidance and advice in relation to.  
The capacity to assign the lease agreement to a third party is also important. It is preferable that the landlord’s requirements of the tenant are not too overbearing. This ensures it is not difficult for the tenant to transfer the lease to a third party in circumstances where they want to sell their business or move on from the premises.  
To conclude  
If you’re considering moving premises it’s important to factor in ample time for search and negotiation process. Make sure you work with a specialist commercial leasing lawyer if possible. <a href="https://legalvision.com.au/need-a-commercial-leasing-lawyer/" rel="nofollow">Get in touch with LegalVision with any leasing questions</a>!
 
<hr>
 Tom O’Brien is the principal lawyer at O’Brien Leasing (part of the<a href="https://legalvision.com.au/" rel="nofollow">LegalVision Network</a>).
The specialist online lawyers in the <a href="https://www.legalvision.com.au/" rel="nofollow">LegalVision network</a> provide businesses with access to high quality and speedy legal services.
This article originally appeared on <a target="_blank" href="https://www.startupsmart.com.au/">StartUpSmart</a>.
 
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tobrien-Fow4HVeX9D

Six important things to remember when negotiating and reviewing your first commercial lease: Tom O'Brien

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Unprecedented institutional investor demand has seen retail investment in Australia hit an all-time record high, according to new research from Colliers International.
In it latest Australian Retail Investment Review report, Colliers found that 142 major retail transactions took place in the 2013 financial year with a combined value of $7.62 billions.
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td nowrap width="192">
Retail Transactions
</td>
<td nowrap width="145">
2011/12
</td>
<td nowrap width="145">
2012/13
</td>
<td nowrap width="145">
% Change
</td>
</tr>
<tr>
<td nowrap width="192">
Number
</td>
<td nowrap width="145">
83
</td>
<td nowrap width="145">
142
</td>
<td nowrap width="145">
+71%
</td>
</tr>
<tr>
<td nowrap width="192">
Total Value
</td>
<td nowrap width="145">
$4.244 billion
</td>
<td nowrap width="145">
$7.627 billion
</td>
<td nowrap width="145">
+80%
</td>
</tr>
<tr>
<td nowrap width="192">
Average Value
</td>
<td nowrap width="145">
$51.1 million
</td>
<td nowrap width="145">
$53.7 million
</td>
<td nowrap width="145">
+5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="192">
Source: Colliers International
</td>
<td valign="bottom" nowrap width="145">
 
</td>
<td valign="bottom" nowrap width="145">
 
</td>
<td valign="bottom" nowrap width="145">
 
</td>
</tr>
</tbody></table>
The total value of transactions soared by 80% on the $4.244 billion recorded in 2011/12, while the volume of transactions jumped just as strongly, up by 71 per cent compared to the 83 recorded in the previous financial year.
Colliers research director Nora Farren told Property Observer driving that high transaction activity was offshore investors entering the Australian market either directly or through partnering arrangements.
Among some of those marquee offshore investments were US private equity group Blackstone buying a 50% of the Erina Shopping Centre for $397 million in May, along with Challenger, acting on behalf of a middle-east investor, which acquired a portfolio of six centres from Federation Centre for $602 million.
The lion's share of transactions occured in the regional and sub-regional markets.
<img src="/images/stories/2013/08/chart_of_the_week_aug_27_one.png" width="470" height="295" alt="chart_of_the_week_aug_27_one">
“In the regional space we had seven years’ worth of supply come to the market, with 14 interests in regional centres transacting worth in excess of $4 billion, which is significantly greater than the average of two centres per year over the past three years, and was more than half the total investment in retail assets over the 2012/13 financial year",  said Colliers national director of retail investment services, Lachlan MacGillivray.
“Meanwhile there were 20 sales of sub-regional centres worth more than $1 billion, which was a 25 per cent increase on the previous financial year".
Equally strong was the demand for neighbourhood shopping centres, with 60 sales worth a total of $1.287 billion recorded. The bulky good sector registered 30 transactions - double the previous year.
Mr MacGillivary said regional shopping centre activity should return to more normalised historical levels over the coming 12 months, but that sub-regional centres were expected to "continue to trade strongly and surpass this year’s total.”
Going forward, he said, a number of institutional and listed investors had a strategy to acquire non-discretionary anchored neighbourhood and sub-regional centres, but while demand for regional centres was likely to continue to be robust, supply of investment product would be limited, hence there would be fewer transactions going forward.
He pointed to competitive interest in assets with strong lease profiles displaying robust income growth or expansion or development potential.
<img src="/images/stories/2013/08/chart_of_the_week_aug_27_two.png" width="470" height="291" alt="chart_of_the_week_aug_27_two">
Institutional  investors, superannuation funds and offshore investors are expected to be the most active over the remainder of 2013.
The Colliers International Australian Retail Investment Review 2013, which covers transaction activity of greater than $10 million across Australia, found that NSW had the largest share of retail investment activity over the past year, with 35 sales, including half of all regional centre transactions. But the largest increase in activity was in Victoria, which saw investment in the state nearly double to 27 sales,” said Ms Farren.
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Retail investment in Australia at an all-time high: Colliers International

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Building activity in the apartment market is up on the back of what was, until recently, a healthy set of numbers, according to Herron Todd White.
And the feeling is good.
‘’More tradesmen released from fly-in fly-out duties returning to work in the Perth market has helped pull down construction prices and make some projects viable,’’ the valuer says.
‘’Developers are rushing to meet the demand for apartments, especially in the sub-$750,000 space, and developments from central Perth to far flung southern suburbs are on the market.’’
The valuer says that, when comparing apples with apples, valuers often can’t see what all the fuss is about with apartments.
‘’We see far more value in something with some physical land attached to it, rather than something that is all about air rights. In fact, we see it day in day out and it doesn’t make sense.
‘’Take, for instance, a new three-bedroom, two-bathroom detached brick and tile house on a cottage lot of circa 350 metres squared selling for the same price as a two-bedroom, two-bathroom unit in the same outer suburban area ...
‘’Unless, of course, the apartment is on top of vibrant retail shopping, bars, restaurants and a train station - which, more often than not, it isn’t.’’
The valuer says that, with more developer activity comes more stock – an increase in supply - right about the time when everyone is beginning to react to a cyclical fall in demand.
‘’So, expect to see some pain in the residential apartment market in about 12 to 18 months time.’’
Is it all bad? ‘’No’’, says the valuer. ‘’Western Australia is still the best state in Australia in which to live and, because we haven’t gone too hell for leather with development projects, we should fare better than most. Again.’’
There will always be pockets and properties which outperform market expectations - whether in a flat market or a good one. So, keep an eye on suburbs such as Bibra Lake, Kardinya, Willetton, Padbury, Duncraig, Woodlands and Fremantle, the report said.
Herron Todd White says buyers should focus on lot sizes, proximity to schools, transport linkages to the CBD or other places of work and recreation.
‘’If the house is a mess, buy a paint brush and invest some time and effort. Turn that little ugly duckling into a swan. Who knows, one day you might make some money on your property. Sometime... Down the track...
‘’Just relax Australia. Western Australia has got your back. We may be a bit tired, but we’ll take a short break and be back on top again soon,’’ the HTW reported concluded.
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Bibra Lake, Kardinya, Willetton, Padbury, Duncraig, Woodlands and Fremantle apartments ought outperform the Perth market: HTW

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Six to nine months of upside in the Perth residential property market has seen multiple offers on homes, properties staying on the market for only two or three days, and a low number of listings.
Well, that can’t - and it shouldn’t - last forever, according to Herron Todd White's latest residential update.
‘’That’s because property isn’t a frequently traded commodity. It’s not a share. It’s a place where families are sheltered and business is conducted and things are produced.
‘’Yet some people treat property with the same expectation as a Wesfarmers or Telstra share. They expect it to always go up and to provide a dividend along the way.
‘’They get very disappointed if there is talk that it will lose value. Some people get panicky about property and try to grab it and take control. Not letting reality sink in. These people are called investors.
‘’Others just see property for what it is, accept it and are not too worried or fussed about talk of market slowdowns or dips. They are called owner-occupiers or tenants.
‘’At the end of the day, property is not a share. It’s not an aeroplane either. It’s a thing that sits on a piece of dirt and has walls and a roof on it. As long as the piece of dirt is relatively clean and the roof doesn’t leak, all sorts of magic can happen from property.
‘’Sometimes babies are produced in them; at other times nice widgets are made in them and sold to other people.
‘’The residential sector in Western Australia is seeing a rate of take up unprecedented for many years which is now beginning to show signs of hitting turbulent air.’’
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Perth residential hitting turbulent air: HTW

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1. Offering vendor financing
It is possible to sell to buyers with poor credit ratings by selling the property under contract to settle at a higher price at a predetermined future time. In the meantime the buyer lives and pays a sort of rent which works out to the loan repayment plus a bit more. Then when they settle the buyer purchases it at a price which is hopefully below the market value ensuring it’s easier to get a loan. Be careful with this though, people interested in buying this way have been determined by banks as being a liability for a reason, there are few reasons to ignore that assessment.
2. Running a self managed super fund
Running a self-managed super fund is a great idea if you’re absolutely ready to commit a lot of time and research into investment. A lot of people have lost their valuable nest egg through poor strategies and poorly executed ideas. Plus you can't live in a property owned by your super fund and you can't rent one from it either.
3. Taking bridging loans
It might seem like a no-brainer, taking a temporary interest-only loan on a new property before you’ve sold your old one but you risk defaulting on your loan if you can’t sell your old property.
4. Being a guarantor for a family member
Agreeing to guarantee a loan for a family member could mean the bank chasing you if they default. This might mean losing your house. It’s hard to say no, but a better option might be to pony up some cash so they can afford a bigger deposit or buying the property yourself and transferring it when the payments are more manageable.
5. Cross collateralising
Using multiple properties as collateral for one loan might be tempting but lenders can then reduce your borrowing capacity if they apply their own credit criteria to your income position to assess serviceability.  They could force you to sell your properties to reduce your debts if your property falls in value. You might be better off buying in a joint venture.
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Five investment finance strategies fraught with risk

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It’s just over 12 months since the results of the 2011 census were released and at the time it was impossible to escape news about how old the population was becoming, what areas were popular, what incomes and education levels were making the grade, plus much more. We were all very excited to be reading so much information about, well how can I put this, about ourselves.
Thanks to the ABS, the industry has always had access to a large amount of demographics data, but I think it is great to always stop and ask what’s the consumer’s perspective?
What expectations do consumers have when they consider buying a home regardless of the prevailing economic or social environment? Are we delivering what they are looking for? Is the market excited about our products or is it simply being driven by a desire not to miss out on this or that new development?
There is one subject that I always find myself thinking about is and that point asks: is there enough attention paid to what consumers think, or are the raw numbers and hard facts just given too much importance?
While price, place and time are the three big factors that influence almost all consumers in the housing market, there are endless, more personal, more local and possibly less predictable options to ponder.
Price and value for money, while possibly the most obvious and easy to observe influences, are still open to varied interpretation. From a buyers view there may well be more flexibility than we give credit for, and if we look at many other consumer markets, then we do see that design trends are very fluid very responsive.
Emotion is also a key element and even at the high end of a market an emotional connection with a property can relegate price down the scale of importance. Or is the role of emotion simply over-stated and should the idea of a willing but not over anxious buyer, dealing with a willing but not anxious seller always be the rule?
In most circumstances price is frequently the central concern of most buyers. While we are now well beyond the GFC, I think that in some parts of the market the GFC acted to make buyers much more price focused, much more sensitive to debt and price is now related to being comfortable with how much buyers can afford to borrow. Not having to worry about finance is not common.
 
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Historical data is important and over time almost all real estate improves in price, but at any point in time it needs to be affordable in the context of the economic environment.
If the market is in pain, if prices are seen as falling then buyers will know that. But in either a tough or healthy market it appears that emotion is a factor and buyers will post GFC still be found paying unexpected prices to get a particular property or to be part of a popular new development.
Incomes, interest rates, employment and an entire range of settings all act to influences prices. This applies to any market and like the one we now see in mid-2013, a lack of supply and very low interest rates are a power influences.
Also currently improved incomes from the share market are important, while a general recovery in superannuation returns always makes us all feel a little better, more secure.
However it is true that after price there are many other influences. Today more then ever transport and access to essential facilities make buyers much more selective and as we have been discussing with pocket infill land estates.
Employment is clearly another a big issue, not only the potential access to employment, but the security of employment. Lenders and buyers are both job sensitive and this is fact that may well become more central over the next 12 months and is set to be a driving factor in the NSW market with jobs associated with construction expected to grow at a pace not seen for some years.
But it can also be a combination of issues that are much less complex, much more day-today issues, that influence buyer behaviors and how they experience the marketing benefits of particular developments. Some markets simply take off and others do well but sell at a much slower pace.
Research is always of value and an understanding of demographics a good starting point for a successful development and marketing campaign. But a first hand view of what buyers want and what they are currently looking for is essential; this is a fast paced environment so we need to be up-to-date.
What makes one area more appealing than another can sometime come down to some very simple factors. While some major issues like access to employment, transport, shopping and schools will always be important, at times other less complex factors can provide an incentive for particular buyers to consider one area or development over another.

<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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Look beyond the demographics to find what buyers really want: Peter Chittenden

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A report into the Sydney CBD unit market – focusing on Dawes Point, Haymarket, Millers Point, Sydney and The Rocks – has found that demand for new apartments was strong in the first half of 2013.
Investors and owner occupiers in the postcode 2000 suburbs are opting for one and two bedroom units, leaving sales of existing units subdued.
The Sydney CBD unit sales cycle graph points to steady activity over the 18 months to April 2013 with 385 transactions in the most recent period. This compares with highs of 985 transactions in October 2007 and 1002 transactions in October 2003. New apartments lifted the median price to $692,000 over the six months from October to April.
New apartments selling off-the-plan not included in the data are expected to boost the April 2013 six-month result, with five new projects at various stages adding 383 units to the existing stock.
<img height="379" width="470" src="/images/stories/2013/08/sydney-aug-26-one.gif" alt="sydney-aug-26-one">
The market overview, by researchers PRDnationwide, found the current market is attractive to a mix of local and overseas buyers, with those from overseas often using a 20%-30% deposit and finance of the balance from local financiers.
It found anecdotal evidence of strong demand for one or two-bedroom apartments, allowing buyers to alternate between an investment and owner occupation. Similarly, overseas investors who bought a residential unit for children attending university use it as a conduit to further investment in residential and commercial properties.
The study found residential construction in the 2000 postcode is mainly south of Druitt Street, with the exception of Eliza, a 19-apartment development on Elizabeth Street near Hyde Park. Haymarket has the highest number of units being built, with the Quay, a 240 mixed use development on Quay Street, and the Hing Loong Apartments, a 47 apartment project on the corner of Dixon and Little Hay Streets.
A positive outlook for Sydney is backed by an ‘’accommodative mortgage rate environment’’ – the report says - and improved investment in real estate as other asset classes show low returns or volatility.
March rental data points to little change in rents for the 2000 postcode. The median rent for a one-bedroom apartment of $600 per week represents a 12 month growth of 1.3%. Over the same period the median rent for a two-bedroom unit remains at $800 per week.
The gross rental yield for one-bedroom apartments ranged from 4.5%-6.6% for properties under $1 million, with similar returns for two bedroom apartments. Today’s lending rates allow investors putting down large deposits to recover most of their annual expense from their tenants.
<img height="355" width="470" src="/images/stories/2013/08/sydney-aug-26-two.gif" alt="sydney-aug-26-two">
While rental return is important, investors are usually searching for long-term capital growth. PRDnationwide Research’s resale analysis ascertains the average annual growth achieved by vendors who sold in the April 2013 half year period. It reveals an average appreciation of 3.1% per annum, with an average holding period of 6.5 years. PRDnationwide says moderate capital growth and higher rental yield compared to inner city suburbs outside the city centre is consistent with the traits of CBD investment.
The changes in mortgage demand chart shows a 13% increase in the 12 months to April 2013 in NSW.
The unit price point chart shows the April 2013 price strength with properties selling for at least $1.1 million accounting for 25% of sales, those less than $500,000 at 20% of sales, $500,000-$600,000 at 16% and $600,000-$700,000 at 14%. The upper figure of 25% compares with 22% in 2012.
The Sydney precinct recorded the highest number of units available for sale in the first half of 2013. The Sydney CBD unit days on market table highlights the 30 days or less bracket as the largest for the precinct, suggesting a good turnover of stock. Only 23% of the stock was advertised for a period of 120 days or more, compared with 33% for Haymarket and 50% for units in The Rocks.
The June quarter recorded the highest 12-month increase in the volume of mortgage inquiries since June 2010, with the Veda Consumer Credit Demand Index pointing to a 12 months growth of 13% for New South Wales. The figure reaffirms the market’s strength.
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Strong demand for Sydney CBD apartments: PRDnationwide

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The businesswomen Roxy Jacenko didn't get to sell her investment cottage, and former home, at 12 Nelson Street, Woollahra following its weekend auction listing.
She wanted $3.5 million, but like so many other prestige auction vendors faced buyer hestitancy.
She decided to list her investment property as she's been looking to purchase a commercial property to house her business, Sweaty Betty PR.
The 329 square metre property – with the two-bedroom, two-bathrooms was bought in 2006 for $2.8 million.
Interior designer Blainey North fitted out the double fronted, one story, residential home which was previously for sale in 2011 with a $3 million price tag.
According to Australian Property Monitors, there were just three sales over $1.9 million at Sydney weekend auction. They included $1.933 million in Willoughby for a renovated property last sold $590,000 in 1998. There was a $2 million sale in Mosman and a $2.3 million sale in Paddington. 
APM recently carried out a study of $2 million plus sales and found the highest proportion of $2 million plus sales were in:
<h3>Strathfield</h3>
<h3>Balmain East</h3>
<h3>Glebe</h3>
<h3>Darlinghurst</h3>
<h3>Birchgrove</h3>
<h3>Cronulla</h3>
<h3>Sylvania Waters</h3>
<h3>Randwick</h3>
<h3>St Ives</h3>
<h3>Wahroonga</h3>
 The APM report released in July found Strathfield's 37 sales reported of more than $2 million was more than the combined tally of Point Piper, Double Bay and Vaucluse.
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jchancellor-FAypfDUnLy

Roxy Jacenko stills seeks buyer for Woollahra investment cottage, as prestige buyers baulk

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By all accounts when one reads the news our property markets are apparently booming.
As they say if you want to make a mountain out of a mole – hill just keep adding dirt. It’s very easy to use the boom word just as its very easy to use the word bust. What the vast majority forgets is that real estate is not an exacting science, if it’s such a great time to buy now then why did the markets fail to react from 2008 to 2010 when prices dropped by 30%?
<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/sydney-s-property-bubble-hysteria-is-unfounded-terry-ryder/2013081964362" title="Sydney’s property bubble hysteria is unfounded ">Sydney’s property bubble hysteria is unfounded </a>where it was correctly pointed out by Terry Ryder that “three years ago BIS Shrapnel, which makes part of its living from mis – forecasting property markets, declared in 2010 that capital city prices would continue to rise strongly. By 2013 Perth would be up 22% and both Sydney and Adelaide would have added 20%. Nothing of the sort happened, of course. Three years on, Perth is up about 7% and Sydney a meagre 4%. Adelaide is still down 3%. These are not statistics that support bubble theories.”
The capital growth rates (average annual growth in median prices over the past ten years) have Mosman at 2.4%, Cremorne at 2.8% and Neutral Bay at 3.5%. Our demographic property markets are performing currently at their highest level in six years albeit with the tightest stock levels not seen before in decades. If you are, for example, looking to buy a house presently in Mosman, Cremorne or Neutral Bay you have a choice of 110 homes, for apartments your choice is 112.
<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/sydney-property-market-is-a-bit-like-the-porridges-of-the-three-bears-in-goldilocks-too-hot-or-too-cold-and-some-just-right/2013081264127" title="Sydney’s property market is a bit like the porridges of the three bears in Goldilocks – too hot or too cold and, for some, just right">Sydney’s property market is a bit like the porridges of the three bears in Goldilocks – too hot or too cold and, for some, just right</a> – I would put our market in the just right category; “Data from Australian Property Monitors shows 40% fewer homes selling in the $4 million to $6 million price range in the first half of this year compared with the same period in 2010 when the market was enjoying a fillip.”
The top four suburbs with the highest number of $4 million to $6 million sales in the six months to June 30, 2013:
1. Mosman (19 sales) 22 sales in the 2010 fillip
2. Vaucluse (9 sales) 14 sales in the 2010 fillip
3. Bellevue Hill (6 sales) 15 sales in the 2010 fillip
4. Woollahra (5 sales) 5 sales in the 2010 fillip
All up sales of $4 million to $6 million sales in Sydney, in six months to June 30, 2010: 187 compared to in six months to July 30, 2013: 111.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #be002d; text-decoration: none;" href="https://www.rwm.com.au/files/2013/08/20-08-2013-9-26-03-AM.jpg"><img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="331" width="470" src="https://www.rwm.com.au/files/2013/08/20-08-2013-9-26-03-AM.jpg" alt="20-08-2013 9-26-03 AM" class="aligncenter size-full wp-image-8156"></a>
 
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The last time the Reserve Bank of Australia (RBA) moved the cash rate up was back on November 3, 2010 to 4.75%, so it’s little wonder that we are seeing engagement in the property markets given today it sits at 2.50%. 
<a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/interest-rate-increase-a-risk-for-borrowers-fitch-warning/2013081664269" title="Interest rates increase an eventual risk for borrowers: Fitch warning">Interest rates increase an eventual risk for borrowers: Fitch warning</a> – monthly home repayments will rise 40% if interest rates return to 2008 highs and banks might not be taking this into account when lending. Since October 2011 the RBA has now delivered eight cuts so it’s inevitable that they will start increasing the cash rate – <a href="https://www.propertyobserver.com.au/news/rba-tells-banks-dwelling-price-boom-was-its-greatest-fear-robert-gottliebsen/2013082164435" target="_blank">the warning signs already are starting to appear</a>. 
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #be002d; text-decoration: none;" href="https://www.rwm.com.au/files/2013/08/20-08-2013-2-32-21-PM.jpg"><img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="306" width="470" src="https://www.rwm.com.au/files/2013/08/20-08-2013-2-32-21-PM.jpg" alt="20-08-2013 2-32-21 PM" class="aligncenter size-full wp-image-8157"></a>
When I want an accurate gut – feel for our property market I look no further than the available stock levels which still remain in decline. For houses Mosman is averaging a twenty% decline on previous years and to be honest I can’t really see this changing anytime soon.
MOSMAN – 2088
• Number of houses on the market this time 2012 – 99
• Number of houses on the market last week – 85
.Number of houses on the market this week – 84
• Number of apartments on the market this time 2012 – 99
• Number of apartments on the market last week – 59
.Number of apartments on the market this week – 63
CREMORNE – 2090
• Number of houses on the market this time 2012 – 15
• Number of houses on the market last week – 3
.Number of houses on the market this week – 7
• Number of apartments on the market this time 2012 – 18
• Number of apartments on the market last week – 17
.Number of apartments on the market this week – 13
NEUTRAL BAY – 2089
• Number of houses on the market this time 2012 – 17
• Number of houses on the market last week – 11
.Number of houses on the market this week – 13
• Number of apartments on the market this time 2012 – 45
• Number of apartments on the market last week – 30
• Number of apartments on the market this week – 36
Source: Australian Property Monitors
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Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a style="font-size: 14px;" title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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robertsimeon-hRNTwJyXkQ

Forget talk of a boom, Sydney's property market is just about right: Robert Simeon

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Recently, I looked at what happens to the housing market in the 12 months leading up to a federal election, this week I take a look at what happens in the 12 months after a federal election.  Once again, we have looked at movement in capital city home values and national house and unit sales over the 12 months following an election.

The housing market is seasonal so the time of year of the election is likely to play some part in the results however, the <a target="_blank" href="/news">12 months worth of data does show the trend in the lead-up to an election.</a>  As you will see later, the position in the market phase and changes to monetary policy may also have a significant impact on the market performance.
The five most recent federal elections have been: 3 October 1998 (Coalition win), 10 November 2001 (Coalition win), 9 October 2004 (Coalition win), 24 November 2007 (Labor win) and 21 August 2010 (hung parliament but Labor take power).
Looking specifically at the change in home values over the 12 months following a federal election you can see that in 1998, 2001 and 2004 home values rose however, following the most recent two elections home values have fallen.  Over the 12 months to July 2013, capital city home values have risen by 4.9% so the market currently has momentum going into the election, but can it be maintained for the 12 months following the election?
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" href="https://blog.rpdata.com/wp-content/uploads/2013/08/home-values-small1.jpg" rel="wp-prettyPhoto[g2266]"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" class="aligncenter size-full wp-image-2267" alt="home values small" src="https://blog.rpdata.com/wp-content/uploads/2013/08/home-values-small1.jpg" width="470" height="169"></a>
The strongest annual increase in home values following an election was 2001, with values increasing by 16.4% followed by the 1998 election where values rose by 10.7% over the following year.  Over the 12 months following the 2001 election, interest rates increased by 50 basis points whereas following the 1998 election they fell by 25 basis points.  It is also important to remember that between 2001 and 2004 there was a national boom in Australian home values.
In 2004, capital city home values rose by just 1.8% over the following year.  This was the tail-end of the national housing boom and over this time, interest rates rose by 25 basis points.  Following the 2007 election, home values fell by 1.2% over the next year and home values fell by 3.0% over the 12 months following the 2010 election. 
Following the 2007 election, the financial crisis hit, economic growth slowed and interest rates were cut by 150 basis points from 6.75% to 5.25%.  Following the 2010 election in August, interest rates were lifted by 25 basis points over the next year as values fell.
If we look at the change over the year in national home sales, the results are reasonably similar, with volumes falling following three of the past five elections.  The most up-to-date sales information indicates that sales to May 2013 were 19.0% higher and with interest rates moving lower more recently; sales appear likely to pick-up further over the year in the lead-up to the September election, but once again will the momentum carry through the next 12 months?
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; vertical-align: baseline; background-color: transparent; color: #bf0000; text-decoration: none;" href="https://blog.rpdata.com/wp-content/uploads/2013/08/home-sales-small1.jpg" rel="wp-prettyPhoto[g2266]"><img style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" class="aligncenter size-full wp-image-2268" alt="home sales small" src="https://blog.rpdata.com/wp-content/uploads/2013/08/home-sales-small1.jpg" width="470" height="169"></a>
 
<hr class="system-pagebreak">
The number of home sales was higher in the year following the federal election in 1998 (13.9%) and 2004 (1.7%).  In 2001, sales volumes fell by 4.6% in the year following the election, in 2007 they fell by 27.0% and in 2010 they fell by 5.7% over the year. 
It makes sense given broader economic conditions, that volumes and values fell following the past two elections however, it is a little surprising to see that in the midst of a large real estate market boom in 2001 and 2002 although values rose 16.4% over the 12 months post-election sales activity actually fell.
Over the past five elections, home values and sales increased in 1998 when the Coalition held office for their second term and in 2004 when they took office for their fourth term.  When Labor took office in 2007, values fell by 1.2% over the next year and volumes fell by 27% of course, they also had the financial crisis to deal with at that time.  In 2010 following a hung parliament, values fell 3.0% over the next 12 months and sales volumes declined 5.7%.
How much the trends outlined above can be attributed to an election is debateable however, federal elections and the subsequent following budgets no doubt have an impact on consumer and business confidence. 
It does seem from the past five elections that when there is no change of leadership that the housing market tends to respond better post-election than when there is a change in leadership or hung parliament, notwithstanding the impact of the financial crisis following the 2007 election.
Following the upcoming election it will be interesting to see the housing market’s response. 
Housing affordability, low levels of growth in housing credit and high levels of household saving are no doubt likely to be barriers to a breakout in value growth and a surge in sales volumes.  Not to mention the forecast that the national unemployment rate will reach 6.25% by mid next year which would be its highest level since September 2002.
Despite all these constraints, home values have increased by 4.9% over the past 12 months on the back of the lowest mortgage rates in more than 50 years and rising levels of consumer, but not business confidence.
If Labor holds office do we see a continuation of rising home values and increasing sales? 
If the Coalition takes office do we see even better conditions in the housing market or do we see deterioration in market conditions? 
We simply don’t really know but it will be interesting to see in the wash-up of the election what impact it does have on the housing market.
<hr>
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
Photo courtesy of <a href="https://www.flickr.com/photos/gusveitch/" id="yui_3_7_3_3_1377476609468_888">Angus Veitch</a>/flickr.
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