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.

Joel Robinson

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

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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>
With only 15% of Australians feeling confident about the property purchase process last year, Mortgage Choice has released a list of six manageable steps to successful property ownership.
The first step is to start saving early.
Belinda Williamson of Mortgage Choice says most lenders require a deposit of at least 5% of the property’s value, but bigger is better as is may help you avoid costly lender’s mortgage insurance.
“The discipline of budgeting and saving regularly is also great preparation for managing the ongoing costs of property ownership,” says Williamson.
Secondly, it is important to know your home loan options to set realistic savings targets and timeframes.
Williamson says it is crucial to set aside time with a professional mortgage broker to explore the loan types available to you, including how much you can borrow and the deposit size needed.
Thirdly, you can get ahead by having your finance pre-approved.
Those who have their finance pre-approved may be more attractive to sellers.
“Loan pre-approval lets you head into the purchase process knowing the maximum amount you have to spend on the property,” says Williamson.
Williamson says this gives you confidence to buy at auction or negotiate on price to save you time looking at places that aren’t in your price range.
“Keep in mind pre-approved finance is typically a limited time offer and it does not lock you into a loan,” says Williamson.
It is important to look carefully at the sale contract and to make sure there is enough time for pest and building inspections.
Williamson says to look if the contract includes a cooling off period or is subject to a finance clause.
Williamson says in order to finalise your finance you need to have all of your up-to-date financial details on hand.
This includes verifying your current income, savings and assets as well as liabilities – including any outstanding debts or loans.
“In preparation for unconditional loan approval, your mortgage broker will provide a list of all the documentation you will need to have ready so that the application proceeds as quickly as possibly,” says Williamson.
Lastly, Williamson says to gather useful information about the property before settlement, such as electricity and gas suppliers.
Williamson says to know when the strata and/or council rates are due, if there are any priority repairs or maintenance or any other associated costs.
“There will always be eventualities that can’t be planned for but if property buyers start with the aspects of the property purchase process that are within their control then the sale will typically run smoothly,” says Williamson.
</body></html>

ntrotman-Et3xWpamVh

Six manageable steps to successful property ownership: Mortgage Choice

<html><body>
The absence of complimentary stamp duty concessions is likely to be a stumbling block for Wayne Swan's budget initiative of assisting age pensioners to downsize their homes.
The new pilot scheme follows the Panel for Positive Ageing having identified housing as one of the major challenges of an ageing population.
The age pension assets test doesn't measure the value of a family home, but after it is sold the cash proceeds can trigger a reduced pension eligibility.
"We will trial a new measure at $112.4 million in funding to assist senior Australians to downsize to a home more suitable to their needs without reducing their age pension," Mr Swan said.
From 1 July 2014, senior Australian homeowners who have owned their family home for at least 25 years and who decide to downsize will have the option to invest surplus funds (up to $200,000) in an account.
Its been suggested there will be 30,000 seniors able to sell up and have their home proceeds protected from the age pension means test if they place the bulk of their sale proceeds into a special bank account.
The three year trial will commence on July 1, 2014 where senior Australian homeowners who downsize when buying another home will have <big>an option to invest</big> at least 80 per cent of surplus funds remaining (up to a cap of $200,000) <big>in a special account</big>. The funds invested in the account would be exempt from the age pension means test for up to 10 years. The scheme would only be available to Australians over age pension age who have owned their home for at least 25 years.
Only the ACT provides expressed incentives when it comes to downsizing.
Pensioners living in the ACT could act as a litmus test in the trial, because the ACT exempts older people from paying stamp duty, pensioner groups have noted.
NSW flirted with a scheme for seniors, but was underwhelmed by the result, so that it didn't get extended beyond July 2012.
The funds invested in the account and earned interest, will be exempt from the age pension means test for up to 10 years.
<div title="Page 1" class="page">
<div class="layoutArea">
<div class="column">
The age pension is the largest item of expenditure in the Federal Budget each year.
The means-tested pension commencing at age 65 for males and (currently) 64 for females but is set to be adjusted to age 67 over the next decade.
As at March 2012, the full age pension was $695.30 a fortnight for a single person and $1,048.20 a fortnight for a married couple. There was also a pension supplement for singles of $60.20 a fortnight ($90.80 for couples). The assets test is updated several times annually.
<div title="Page 8" class="page">
<div class="layoutArea">
<div class="column">
The means testing that is applied to the pension consists of an income test and an asset test. The payment received is the lower amount determined by the two tests. The family home is exempt from the assets test.
<div title="Page 8" class="page">
<div class="layoutArea">
<div class="column">
Currently a single homeowner with assessable income less than $152 per fortnight, and assets outside the family home of less than $192,500, is entitled to receive the full pension of $695 per fortnight plus a pension supplement of $60.20 per fortnight.
Every dollar of income above the income test threshold reduces the pension entitled by 50 cents per fortnight, and every $1000 of assets above the asset test threshold reduces the amount of pension by $1.50 per fortnight.
</div>
</div>
</div>
A recent Rice Warner actuaries reports noted a partial pension was payable for home owning couples with earnings up to close to $2,500 per fortnight and with over $1,000,000 in non-housing assets.
<div title="Page 9" class="page">
<div class="layoutArea">
<div class="column">
"For example, a couple who are homeowners with non-housing assessable assets of $750,000 and assessable income of $45,000, are eligible for a considerable part age pension payment of over $10,000 per annum, and those with even higher income and $1 million in non-housing assets are still eligible for a partial pension," it noted.
<div title="Page 9" class="page">
<div class="layoutArea">
<div class="column">
"Apart from the overly generous exemptions for home ownership, the means testing provisions generally ensure that those who are relatively well off do not receive a full age pension.
"However, means-testing has become a complex and inconsistent system,' it added.
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

jchancellor-FAypfDUnLy

ACT public servant mandarins most likely to benefit from federal budget downsizers scheme as stamp duty the major hurdle for seniors in other states

<html><body>
The decision to allow Perth shops to trade on Sundays helped push up the performance of Federation Centres' WA portfolio of shopping centres, the group has revealed in its March quarter update.
The new laws were introduced on August 26 last year allowing all general retail shops in the <a target="_self" href="https://www.commerce.wa.gov.au/consumerprotection/PDF/Misc/Metropolita_area_map.pdf">Perth metropolitan area</a>, including major supermarkets and department stores, the right to open their doors on Sunday between 11am and 5pm.
“Following the introduction of Sunday trading in August 2012, the performance of our WesternAustralian portfolio was particularly strong, recording moving average turnover growth of 4.9% at the end of the period," said Federation Centres chief operating officer Mark Wilson.
The performance of the WA portfolio was substantially better than annual retail sales growth of 2.4% and the performance of Federation Centres shopping malls in other states.
"Our NSW portfolio also showed encouraging signs, with moving average turnover growth of 2.5%.
"The portfolio located in NSW and Western Australia represents approximately 50% of the total by value.
"Trading conditions in Victoria and Queensland however remained more subdued, with moving average turnover growth of only 0.3% and 1.2% respectively over the period," he said.
Overall Federation Centres reported a "solid" first quarter of the year with occupancy at a rate of 99.4%.
Overall annual sales growth increased to 2.4% at 31 March 2013 from 2.0% at 31 December 2012, with specialty retailers continuing a positive trend to show annual sales growth of 2.5%.
Federation Centres, formely called Centro Retail Australia, has a portfolio of 46 shopping centres worth $4.4 billion.
It has recently sold over $200 million worth of non-core shopping centre assets held in Centro syndicates, while also acquiring the <a href="/news">Centro at Gympie for %63.8 million</a>.
</body></html>

lschlesinger-FZcF9M3vE6

Perth Sunday trading delivers boost to Federation Centres WA malls

<html><body>
In the current economic climate tenants in the commercial property market – rather than landlords – have the upper hand.
Tenants are increasingly looking at the bottom line and with landlords keen to retain tenants, there are opportunities for tenants to negotiate a better deal.  
Tenants are continuing to examine their entire business to identify where cost savings can be generated and given that one of the major costs to all businesses is the premises they operate from, this is a good place to start. The current economic conditions have created a tenants’ market, so now is the time for tenants to examine every space their organisation occupies and explore the strategies available to reduce risk, maximise operating efficiency and drive down costs.  
This market provides the perfect opportunity for tenants to reposition and enhance their businesses and this can be done primarily through workplace improvement and upgrades.  
There are several ways in which office tenants can benefit in the current market, and the best way to capitalise on the opportunities is to outsource property requirements to experts. Tenants need to be aware of what is on offer so they do not simply exercise an option or sign another long-term lease without looking at the options available.  
In this type of market landlords are keen to retain or secure tenants on long-term leases to guarantee income and extend their Weighted Average Lease Expiry (WALE), so any tenant with two years or less remaining on their lease should look to engage with a tenant representative now to ensure the best outcome. There are opportunities, for instance, for tenants to renegotiate or restructure their lease and receive a significant cash incentive from their landlord for extending. There are numerous examples recently where 100 % of a tenant’s new fitout was covered by well negotiated incentives.  
In addition, there are often additional incentives left over from the fitout to be contributed towards rent reductions or rent free periods. Many tenants whose fitout, building and location meets their needs may elect to allocate the entire incentive towards rent to drive down operational costs.  
The best opportunities for tenants at the moment are in the Sydney and Melbourne CBDs, as this is where incentives for office space were proving to be the highest. Incentives in the Sydney CBD range from 22% to 30%, with B-grade space in the southern precinct having the highest incentives of 28% to 30%. There are instances in particular buildings with large vacancy where incentives are pushing above 30%.  
The Melbourne and Brisbane CBDs are not far behind, with incentives ranging from 20% to 30%. Meanwhile, incentives in the Adelaide CBD range from 5% to 20%, in the Perth CBD they range from 5% to 10% and in Canberra they range from 8% to 20%.  
While tenants clearly secure a benefit from incentive arrangements, it is not only the tenant who benefits. It is a win-win for the tenant and the landlord, as the landlord retains or secures a tenant on a long-term lease, locking in their cash flow with no let-up time. The opportunity cost of a tenant vacating is significant, with let up time for larger space between six to 18 months in addition to building upgrades required to attract new tenants.  
As well as securing incentives, office tenants also have the opportunity to negotiate on clauses in their lease agreements that are more difficult in an environment that favours landlords, such as rent reviews, expansion/contraction clauses and ‘make good’ provisions. This type of flexibility is essential for tenants in the current economic climate to enable growth and contraction to meet an organisation’s changing needs. The office environment will need to be able to adapt to the changes in the business over the entire lease term, which includes being able to expand or contract the head count in the same amount of space.  
Tenants have a further opportunity to approach landlords to make upgrades to their buildings – for instance bathroom, air conditioning, lighting, carpet or lobby upgrades. Landlords are likely to cooperate when it comes to these requests, given their desire to retain tenants and ensure their asset remains competitive in the market.  
One of the other major benefits of the current market for tenants is the opportunity to snare a newly refurbished space for great commercial terms. Due to an increase in new supply in most markets over the next two years, a major trend will be an increase in backfill space due to large tenants consolidating their operations and moving into new developments providing superior quality accommodation. We will see this for instance with Westpac, and KPMG moving in to the Barangaroo development. As large tenants move to new spaces, landlords will be forced to upgrade their buildings through refurbishment to attract new tenants and they will also be forced to offer high incentives for the backfill space to attract tenants.  
Over the past six months we have already been witnessing a significant increase in activity in the sublease market - better sublease space is being made available in the wake of major companies reducing headcount and seeking operational cost savings. Consequently this space is competing with new space that is available at greatly reduced rentals, often with high quality fitouts included in the offering.  
In addition to negotiating with their landlords to get a better deal, tenants looking to save money should also look at reconditioning the workplace to potentially create greater efficiency and reduce the space required to operate. Lease expiries give tenants the opportunity to reconsider their accommodation needs and explore ways to reduce their footprint to save costs.  
Tenants looking to consolidate their operations should look at how their existing workplace supports their business strategy and consider whether their work settings actually support the ways their teams work. For instance, it might be worth evaluating whether every employee actually needs a designated desk. We find that typically, just over half the available desks are in use at any one time in an office. It is rare for staff numbers to break an 85% occupancy rate, which means many businesses may have more space than they actually need.  
Workplace technology is another area where businesses can make savings. For instance, most organisations will only update their telephony systems and update their network infrastructure when they are relocating. This means long-term occupiers could be losing their competitive edge by failing to provide technologies that enable workplace mobility. Technological mobility is a major consideration for businesses looking to consolidate as it allows greater density within an existing footprint.  
Simon Crouch is national director of tenant representation at <a href="https://www.colliers.com.au/" target="_blank">Colliers International</a>.
</body></html>

scrouch-jEaruuK9Wi

Tenants have the upper hand in the current commercial property market: Simon Crouch

<html><body>
We are driving less. Our per capita travel by private vehicle has been dropping over the last ten years.  
For mine, the cost of petrol is an obvious reason, though I think technology has something to do with it too, what with the dramatic impact it has on our ability to stay put while connecting (well, if you want to call it that) with just about anyone, anywhere, anytime – without even having to sit upright.  
But what’s on the mind of many of us actually driving is traffic congestion.  
Alleviating congestion has become a focus of city planners, but how congested, really, are our cities? Some science behind the whinge might help matters.  It usually does.  
And to the rescue comes the Dutch manufacturer of automotive navigation systems, TomTom (without the Lone Ranger), which has undertaken extensive studies on congestion levels in urban areas around the globe and has come up with the TomTom Congestion Index on traffic movement by location, time and day.  
Here are a few pertinent stats for Australia and New Zealand (yes they do have traffic there too!) and if you want to download the complete study, you can <a target="_blank" href="https://www.tomtom.com/congestionindex">go here</a>.  
Most congested cities – Sydney and Perth.  
Least congested cities – Brisbane (hard to believe hey!) and Canberra.  
Congestion levels – Sydney’s overall score is 33%, the same as Los Angeles – the most congested city in the United States – and far less than the most congested city in Europe – Moscow 66%.  
Perth gets 30%; Melbourne and Adelaide 28%; Brisbane 25% and Canberra 18%.  This compares to Auckland and Christchurch 28% and Wellington 24%.  
Congestion here is measured 24/7 and not just during peak hours.  
Morning peak hour – Sydney wins most congested and rises to 70% which even exceeds LA’s 56% (we feel your pain, Sydney); Melbourne moves into second place (56%); followed by Perth (55%); Adelaide (50%); Brisbane (45%; and Canberra (41%).  
Top three increasing in congestion – Perth, Melbourne, Sydney.  
Top three decreasing in congestion – Auckland, Christchurch and Brisbane (It still doesn’t help when stuck in traffic on Moggill Road!)  
Likely delay per hour driven in peak periods – Brisbane 28 minutes; Canberra 22m; Adelaide 28m; Melbourne 33m; Perth 33m; Sydney 40m.  Across the ditch: Auckland 40m; Christchurch 30m; Wellington 36m.  
So I assume from this that Brisbane’s traffic congestion is kinda okay, until shite hits the fan somewhere, and it gridlocks up, causing, on average, 28 minute delays, during peak periods.  
Best peak periods of the week – For Brisbane, Adelaide, Melbourne, Perth and Sydney, the best peak periods occur Mondays pm and Fridays am.  For Canberra, best peak periods are Fridays am and pm – in other words, they only work a four-day week in the nation’s capital.  
Worst peak periods of the week – Tuesdays am for all cities except Canberra (Wednesdays am); and Thursdays pm for all cities except Perth (Wednesdays pm) and Sydney (Fridays pm).  
My comments  
The market is placing much higher value on convenience.  Travel times are part of this.  But I think living downtown or closer to an urban centre, has more to do with amenity and being able to walk to things, rather than the time saved when it comes to driving to work, shopping, schools etc.  
We are seeing this when it comes to new subdivisions.  Those developments that spruik easy access to surrounding facilities, are not as attractive as those projects which offer the amenity within the development itself or within a pleasurable walking distance.  
We will not give up our cars.  We might not drive them as much, but far too many things can only be accessed by private vehicle.  Urban consolidation doesn’t equate to fewer actual cars, just fewer and shorter driving trips.  
The market (both buyers and renters) still places a premium on cars.  It is very difficult to sell a new one-bedroom apartment in inner Brisbane without a car parking space for over $350,000.  But buyers pay well over $400,000 for a one-bedroom apartment with a car space.  The premium for the car space within a new inner Brisbane development ranges depending on location, but averages close to $75,000.  The apartments with car spaces – being one space for a one-bedroom apartment and on those rare occasions these days, two spaces for a two-bedroom apartment – mostly sell first.  
Don’t believe me?  Well you ask a downsizing baby boomer couple - who are looking to leave suburbia and live a more urban lifestyle and who can only afford to buy a two-bedroom/one car space apartment – who is going to forego their car? Icy silence.  And wave bye-bye to that sale.  
Where are the Lone Ranger and Tonto when you need them?  
“Hey Kemosabe, maybe a townhouse might do the trick!”
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/" rel="nofollow" style="font-size: 14px;">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

Despite traffic congestion, we will not give up our cars: Michael Matusik

<html><body>
Sydney remains the preferred location of choice for Australia's biggest companies with around 36% of the companies listed on the S&amp;P ASX 300 headquartered in the city.
And it is set to grow in prominence in the coming years with the S&amp;P ASX All Ordinaries Index up 23% from May 2012 to mid-February 2013.
"Historically, there is a lag of between one and three years from movements in the All Ordinaries to net absorption in the Sydney CBD," according to a new Sydney office report by Andrew Ballantyne and Tim O’Connor of Jones Lang LaSalle.
<img alt="ASX_300_headquarters" height="311" width="470" src="/images/stories/april23maitland/ASX_300_headquarters.jpg">
Perth, with its mining boom attracting resource companies to lease in the city, is not far behind Sydney with about 80 of the S&amp;P 300 based in the WA capital city.
Melbourne is third and Brisbane fourth, according to Knight Frank.
"Sydney is the headquarters of corporate Australia.
"As such, Sydney is the finance and administrative heart of Australia. 
"The market capitalisation of the Australian Stock Exchange is $1,400 billion, making it the ninth largest stock exchange in the world.
</body></html>

Sydney CBD remains the capital for big business headquarters: Chart of the week

<html><body>
The decision by Fivex Commercial Property to convert office space on Flinders Street into retail space for <a href="/news">Japanese gift and homewares retailer Daiso</a> is likely to herald a trend across Melbourne as large ground floor retail space becomes scarcer. 
The first floor in Fivex's 'Riverview House” across the road from Flinders Station, and previously tenanted by the Commonwealth Bank, is currently being converted into a Daiso store, accessed via escalators. 
The move is in line with Fivex’s plans to reposition the use of the building with another floor in the building being converted into a gym and another is being transformed into a child-care centre. 
A digital advertising board  was recently wrapped around the first floor of the building on the corner of Flinders Street and Elizabeth Street to generate a seperate source of income. 
The Daiso deal has an upside for both tenant and landlord: the landlord receives a higher rent for the retail space then he would if it were office space while the tenant pays a lower rent then they would if they had leased a ground floor space, though without the passing foot traffic. 
The lease was negotiated by Ben Tremellen, Colliers International retail leasing manager, who tells Property Observer that international retailers are struggling to find large ground floor spaces in the Melbourne CBD. 
He says new international retailers all require at least 500 square metres of space and they all want to be on Collins Street between Elizabeth and Swanston Street or on the Bourke Street Mall. 
“It’s near impossible to find this sort of foot print,” he says. 
“There are definitely a lot of office landlords seeking to activate the ground floor and level one and provide space for those retailers that can’t get a footprint on the ground floor,” he says. 
Converting from office to retail could also become an option for some office landlords who can’t secure tenants in the lower floors of some of their buildings. 
The Melbourne office market is expected to soften further over 2014 and move increasingly in favour of tenants over landlords. 
BIS Shrapnel forecasting the vacancy rate to hit 10% by the end of the year. 
The Property Council of Australia recorded the highest CBD office vacancy rates in Flagstaff (13.9%), the Western Core (8.2%), Eastern Core (7.1%) and Spencer Street (6.9%) in its most recent office market report.
Retailers seeking prime Melbourne CBD space may also not have the appetite for the high rents charged on Bourke Street. 
According to Knight Frank, "super-prime" rents on Bourke Street Mall range from $7,500 per square metre to $10,000 per square metre.
</body></html>

Office-to-retail conversion a growing CBD trend as ground floor space dries up: Colliers International

<html><body>
The 2013 Federal Budget has a $112 million pilot to assist age pensioners to downsize their homes.
It will provide a means test exemption of up to $200,000 for ten years.
The new pilot sceheme follows the Panel for Positive Ageing having identified housing as one of the major challenges of an ageing population.
The age pension assets test doesn't measure the value of a family home, but after it is sold the cash proceeds can trigger a reduced pension eligibility.
"We will trial a new measure at $112.4 million in funding to assist senior Australians to downsize to a home more suitable to their needs without reducing their age pension," Mr Swan said.
From 1 July 2014, senior Australian homeowners who have owned their family home for at least 25 years and who decide to downsize will have the option to invest surplus funds (up to $200,000) in an account.
News Ltd papers indicated the Families Minister Jenny Macklin suggested there will be 30,000 seniors able to sell up and have their home proceeds protected from the age pension means test if they place the bulk of their sale proceeds into a special bank account.
Property Observer understands that those moving into residential aged care will not be eligible.
The funds invested in the account and earned interest, will be exempt from the age pension means test for up to 10 years.
The three year trial will commence on July 1, 2014 where senior Australian homeowners who downsize when buying another home will have <big>an option to invest</big> at least 80 per cent of surplus funds remaining (up to a cap of $200,000) <big>in a special account</big>. The funds invested in the account would be exempt from the age pension means test for up to 10 years. The scheme would only be available to Australians over age pension age who have owned their home for at least 25 years.
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
The age pension is the largest item of expenditure in the Federal Budget each year.
The means-tested pension commencing at age 65 for males and (currently) 64 for females but is set to be adjusted to age 67 over the next decade.
As at March 2012, the full age pension was $695.30 a fortnight for a single person and $1,048.20 a fortnight for a married couple. There was also a pension supplement for singles of $60.20 a fortnight ($90.80 for couples). The assets test is updated several times annually.
<div title="Page 8" class="page">
<div class="layoutArea">
<div class="column">
The means testing that is applied to the pension consists of an income test and an asset test. The payment received is the lower amount determined by the two tests. The family home is exempt from the assets test.
<div title="Page 8" class="page">
<div class="layoutArea">
<div class="column">
Currently a single homeowner with assessable income less than $152 per fortnight, and assets outside the family home of less than $192,500, is entitled to receive the full pension of $695 per fortnight plus a pension supplement of $60.20 per fortnight.
Every dollar of income above the income test threshold reduces the pension entitled by 50 cents per fortnight, and every $1000 of assets above the asset test threshold reduces the amount of pension by $1.50 per fortnight.
</div>
</div>
</div>
A recent Rice Warner actuaries reports noted a partial pension was payable for home owning couples with earnings up to close to $2,500 per fortnight and with over $1,000,000 in non-housing assets.
<div class="page" title="Page 9">
<div class="layoutArea">
<div class="column">
"For example, a couple who are homeowners with non-housing assessable assets of $750,000 and assessable income of $45,000, are eligible for a considerable part age pension payment of over $10,000 per annum, and those with even higher income and $1 million in non-housing assets are still eligible for a partial pension," it noted.
<div title="Page 9" class="page">
<div class="layoutArea">
<div class="column">
"Apart from the overly generous exemptions for home ownership, the means testing provisions generally ensure that those who are relatively well off do not receive a full age pension.
"However, means-testing has become a complex and inconsistent system,' it added.
</div>
</div>
</div>
 
</div>
</div>
</div>
</div>
</div>
</div>
 
 
</div>
</div>
</div>
</body></html>

Federal Budget's trial program encourages downsizing to smaller homes without affecting aged pensions

<html><body>
The value of commercial finance commitments rose 1.5% in March to $29.64 billion, following a rise of 0.9% in February, according to the latest seasonally-adjusted data from the ABS.
The rise in March and February followed a 9% fall in January with commercial lending continuing to trend downwards.
In trend terms, loans for commercial purposes were down 1.1% over March.
Revolving credit commitments rose 4.7%, after a fall of 6.3% in the previous month.
Fixed lending commitments rose 0.4%, following a rise of 3.4% in the previous month.
The value of commercial mortgage commitments for the purchase of housing for rent or re-sale trended up 1.4% in March 2013 and the seasonally adjusted series rose 4.6%.
The value of total personal finance commitments (credit cards, personal loans) rose 0.6% in seasonally adjusted terms.
Fixed lending commitments rose 10.1%, while revolving credit commitments fell 11.8%.
The value of total lease finance commitments trended down 0.6% in March 2013. The seasonally adjusted series fell 4.1%, after a rise of 1.6% in February 2013.
Yesterday, the ABS revealed that the number of housing finance commitments <a target="_blank" href="https://www.propertyobserver.com.au/residential/mortgage-lending-surges-up-52-in-march-abs/2013051361314?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">lifted 5.2% in March</a> and 5.8% in value, led by strong gains in NSW and Victoria.
</body></html>

Commercial mortgage commitments up 1.5% in March: ABS

<html><body>
Westfield speciality tenants signing new leases in Australian malls have scored an average 5.1% rent reduction than the expired rents, according to the group’s March quarter update.
The shopping centre group completed 380 leasing deals over the first three months of the year across its portfolio of 38 malls in Australia.
Excluding new projects, the leases represented 2.2% of specialty retail space across the Australian portfolio.
The rent reductions were offered against a subdued retail backdrop with comparable specialty sales up just 0.3% for the quarter.
Westfield reported that retail sales in the quarter were negatively impacted by the timing of Easter as well as 2012 being a leap year.
“Whilst retail conditions remain subdued the productivity of the portfolio remains high at $9,863 per square metre (psm) with continuing demand for space from both domestic and international retailers,” said Westfield in its quarterly update.
"Average specialty rent for the Australian / New Zealand portfolio grew by 2.4% from March 2012 with average rent in Australia now at $1,522 psm and New Zealand at NZ$1,127 psm.
"In Australia, for the 3 months over 380 leasing deals were completed. Excluding projects, this represented 2.2% of specialty area, which were completed at rents 5.1% lower than expiring rents," 
Overall, Westfield said performance across the group's global operations over the three months to March 31 was in line with expectations.
It previously reported that <a target="_blank" href="https://www.propertyobserver.com.au/retail/westfield-top-10-malls-westfield-sydney-shines-but-bondi-junction-disappoints/2013040260098">Westfield Sydney and Westfield Liverpool</a> were the top performing mall in its Australia and New Zealand portfolio.
During the quarter, Westfield commenced $700m of new projects including the $400m redevelopment of the Mt Gravatt mall in Brisbane, the US$150m redevelopment at Garden State Plaza in New Jersey and the US$90m redevelopment at Montgomery in Maryland.
It also entered into an agreement with O'Connor Capital Partners to form a US$1.28bn joint venture comprising a portfolio of six Westfield regional malls in Florida while disposing of its joint venture interest in Brazil.
Westfield's global portfolio comprises 100 shopping centres in 4 countries with around 22,000 retail shops, 1.1bn annual customer visits and over $40bn in annual retail sales. 
The global portfolio at 31 March 2013 was 97.4% leased, up 20 basis points compared to the same period last year.
</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