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>
The further reduction in interest rates by the RBA boosts the prospects of the residential construction industry mounting a sustainable recovery.
As we enter mid-2013 there is still no evidence of a sustainable national recovery in residential construction, despite such evidence being crucial to a successful rebalancing of Australia's economic growth.
Today’s move is therefore welcome news for the industry and a prudent decision by the RBA.
Australia's banks now need to pass this 25 basis point cut on in full and in rapid time, to business as well as household customers.
Meanwhile, the federal government needs to act decisively to complement easier monetary policy by using next week’s budget to begin reforming the excessive tax and regulatory cost base which acts as a major constraint on new housing activity.
Policies to reduce inefficient taxation and excessive regulation on new home building will unlock billions of dollars of economic activity and generate much needed revenue for the government.
A 1% reduction in red tape would alone generate $1.15 billion worth of economic activity per annum while obviously improving the nation's productivity.
A week out from the federal budget it is disappointing that amidst the fiscal options available, the silence around reform measures that could boost the nation’s revenue base is deafening.
Harley Dale is chief economist at the <a target="_blank" href="https://hia.com.au/">Housing Industry Association</a>.
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RBA rate cut will help residential construction: HIA's Harley Dale

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Melbourne packaging magnate Raphael Geminder has put an industrial portfolio with a combined worth of $80 million on the market through his PACT Group Pty Ltd subsidiary company, Centralbridge.
The trans-Tasman portfolio comprised of four properties, described as a combination of passive investment properties and redevelopment opportunities, has locations in Moorabbin, (VIC) Condell (NSW), O’Connor (WA) and East Tamaki, (New Zealand).  
CBRE who have been appointed the campaign for the sale, say they expect to attract strong local interest given a relatively stable economy and appealing borrowing rates.  
Mr. Geminder, whose subsidiary companies also include Alto Packaging Australia, Viscount Plastics and VIP Packaging, said that the improved state of the industrial market indicated an ideal time to divest part of Centralbridge’s portfolio.  
With exception to the O’Connor property (which will be offered on a short term lease, or with vacant possession), all properties are to be sold subject to long term 12 year leases to subsidiaries of Geminder’s PACT Group.  
CBRE’s Chris O’Brien said; ““This long term secure income underpinned by the high land values will only enhance the potential performance of the assets over the investment horizon.”  
The portfolio is being offered for sale via an expressions of interest campaign closing 14 June 2013.  
CBRE’s Victorian Industrial Investments team of Chris O’Brien, Matt Haddon and Rory Hilton will be in charge of the campaign.
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Raphael Geminder's Centralbridge trans-Tasman industrial portfolio listing

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The number of companies operating in Australia at a loss <a target="_blank" href="https://www.smartcompany.com.au/tax/049437-number-of-smes-trading-at-a-loss-rises-ato-statistics-show-2">has decreased</a>, according to the latest figures from the Australian Taxation Office.
But those positive figures, which cover the 2010-11 financial year, also coincide with a rise in insolvency statistics from the same time. That trend has continued, with insolvency numbers recorded by ASIC now at record highs.
The ATO figures have also revealed a trove of data regarding corporate tax receipts. The number of non-taxable companies – those companies not making a profit – decreased from 61.2% to 59.3% during the year, while total income rose 8.2% to $2.44 trillion.
The number of companies trading at a loss decreased from 35.1%, or 273,690 businesses, to 34.1%, or 269,215 businesses.
Although the number may seem small, a change of 4475 businesses is significant enough for tax and accounting analysts to take note.
However, while the results indicate a better year for companies, the coinciding insolvency statistics show the year kicked off a string of corporate collapses.
The figures from 2010-11 show the number of companies entering some form of external administration rose from 9281 in the previous year to 9829.
That trend has continued. The figures from 2011-12 show 10,757 companies entered external administration, while 2013 is set to near that with as many as 7013 appointments recorded by February.
The figures appear to be at odds – despite the number of companies turning a profit increasing, along with fewer companies operating a loss, more apparently entered administration than the year before.
But Dissolve liquidator Cliff Sanderson says the figures aren't contradictory, especially as they tend to lag from when the pain first started.
Sanderson says for businesses in the 2010-11 year, they may have started feeling financial trouble as early as 2007 or 2008, when the global financial crisis first started.
"Insolvency numbers show a lag from when companies get into financial difficulty," he says. "There was a bad year in 2008, so there was clearly a delay there."
"The figures are driven by small companies, and when an economy hits significant amounts of trouble, the first cards to fall are usually the smaller businesses."
Micro-businesses, which the ATO states have incomes between $1 and $2 million, make up the vast majority of businesses. The number of micro businesses increased from 257,994 in 2009-10 to 274,022 in 2010-11 – representing 77.4% of all companies.
Sanderson says given the number of insolvency appointments still being recorded, the trend could continue.
"When a company gets into trouble, the last thing they want to do is put the business in liquidation. They fight until the bitter end, and that can take years."
The ATO statistics have revealed a treasure trove of information.
They show the mining industry had the highest proportion of non-taxable companies to total companies at 72.2%, while the number of companies which lodged returns actually increased by 1.2% to 788,983.
The statistics also <a target="_blank" href="https://www.propertyobserver.com.au/tax/landlords-tax-deductions-rise-to-%24386-billion-or-%2423000-per-tax-return-ato-figures/2013050160918" rel="nofollow">showed Australia has a total of 1.76 million landlords</a>, with each claiming an average $19,000.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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ATO stats show fewer businesses are trading at a loss

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Established house prices, including those in Sydney, stagnated over the first three months of the year with just a 0.1% gain across the eight capital cities, according to preliminary estimates of the latest ABS house price indexes. 
The results show that established capital city housing markets are operating at different speeds with the strongest performers over the March quarter being Perth (+1.2%) and Darwin (+1.9%). 
"Clusters with median prices below $800,000 contributed most to the rise in the March quarter 2013," says the ABS of the Perth increase with the Darwin increase attributed to clusters with median prices below $600,000.
Sydney recorded no change in its established house price index, with small gains in Melbourne (+0.2%) and Canberra (+0.2%) over the quarter and small corrections in Brisbane (-0.3%), Adelaide (-0.1%) and Hobart (-0.3%). 
The ABS said clusters with median prices between $680,000 and $1,100,000 contributed most to the small rise in Melbourne house prices.
While of a preliminary nature and subject to revisions, the quarterly results may be factored into the RBA's decision on the cash rate, due to be announced at 2.30pm today.
Annually, house prices rose in Darwin (+8.0%), Perth (+6.1%), Sydney (+3.6%), Canberra (+1.5%), Brisbane (+1.4%), Melbourne (+1.1%) and Adelaide (+0.9%) and fell in Hobart (-1.9%).
The stagnation in house prices in the first three months of the year follow the ABS recording a revised 2% gain in its established house price index over the December quarter having previously reported a 1.6% gain in preliminary figures.
The positive movement in the December quarter 2012 was the result of rises in Sydney (+2.3%, unchanged), Melbourne (+1.8%, revised from +0.7%), Perth (+3.1%, revised from +2.9%), Brisbane (+1.0%, revised from +0.7%), Adelaide (+1.1%, revised from +0.8%), Canberra (+2.8%, revised from +2.1%) and Darwin (+3.0%, revised from +2.6%). This was partially offset by a fall in Hobart (-0.5%, revised from -1.4%).
The ABS figures contrast sharply with RP Data-Rismark figures, which recorded a 2.9% rise in detached house values across the combined capital cities over the March quater with Hobart the best performing capital city with a 6% gain and Adelaide the worst, falling 0.8%. 
RP Data had a cumulative capital gain in dwelling values in the year to March at 2.4% and up 4.7% since the market bottomed out in May last year.
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Established house prices stagnate in March quarter, but with good gains in Perth and Darwin: ABS

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A property in artist Margaret Olley’s estate has been listed for sale in Newcastle.
Located on <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.walkom.com.au/buying/search/detail.aspx?id=WLS72501499&amp;wlid=01326ba9-f553-4719-aba3-17d1f1159885" target="_blank">Church Street</a>, the three-storey terrace is one of eight properties Olley owned in The Hill precinct in the 1960s.
It was the only one she held onto until her death in July 2011 aged 88.
Set on 120 square metres of land, the property has been divided into two self-contained flats.
The street level unit comprises of four bedrooms, one bathroom and a north facing enclosed balcony with harbour views and a courtyard.
The self-contained basement flat includes one-bedroom, one-bathroom and a private courtyard.
Estate agent Sonia Walkom of Walkom Real Estate says the property can easily be restored to one residence.
In terms of any traces of the renowned artist, Walkom says there aren't any.
"Margaret hasn't lived there since the 60s or 70s and has held the property as an investment," says Walkom.
Walkom says Olley once used the basement as her studio.
The property is due to go under the hammer on May 25 with $600,000 hopes and has a rental income of around $600 per week.
Olley’s Paddington home where she spent most of her time will be gutted and transported to create the $4.5 million Margaret Olley Arts Centre in <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="/news" target="_blank">Murwillumbah</a>.
The regional NSW centre is designed by architect Bud Brannigan and will include exhibition space, an education workshop facility, library, collection storage, multi-media areas and a standalone studio for artists.
It was also include recreations of Olley’s home and studio, including the Hat Factory and the Yellow room.
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Artist Margaret Olley's Newcastle terrace to go under the hammer

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While most other Australian states continue to experience a real estate lull, the WA market has bounced back strongly to the point where it is hard to argue the case for another interest rate cut.
I know there are many people who would argue with me on this point, but if real estate sales in the rest of the country were as strong as they are here in WA currently I’m sure the Reserve Bank board would not be considering dropping rates.
Of course, there are other sectors of our WA economy, especially retail, that do continue to need assistance to boost trade. However, the last thing we need in WA is for our real estate market to overheat.  
The sub-$600,000 segment of the WA market has been strengthening for some time fired up by latent first-home buyer demand and this activity is now beginning to feed through to the higher prices as people upgrade to second and third homes.  
Obviously, a strong property market is always a good thing, but a short term boom fertilised by “irresistible” interest rates can only result in another long period of stagnation such as the 2008 to 2012 down market.
History shows that when the property market is down, everything is down because when people see their home value affected they lose confidence and are much less enthusiastic about spending elsewhere so this is another reason to avoid a boom and bust environment here.  
It’s a big call but, because the states can be so different economically there is almost an argument for rates to be adjusted to suit each market rather than a one size fits all approach.
Geoff Baldwin is managing director at <a target="_blank" href="https://www.remaxwa.com.au/">RE/MAX WA</a>.
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Hard to support an interest rate cut in strong WA property market: Geoff Baldwin

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The latest ABS retail sales figures for March will disappoint retail property landlords, particularly those with a high proportion of fashion-related tenants.
Following a rise of 1.3% rise in February,  retail turnover fell by a seasonally-adjusted 0.4% in March 2013.
This was well below expectations of a modest 0.1% gain in March.
The largest contributor to the fall in March 2013 was clothing, footwear and personal accessory retailing (-4.2%) followed by household goods retailing (-1.5%), other retailing (-1.0%) and department stores (-0.1%).
These falls were partially offset by rises in food retailing (0.8%) and cafes, restaurants and takeaway food services (0.2%).
Over the longer term, the largest contributor to growth was food retailing (up 0.5% in trend terms). 
Through the year, Australian retail turnover rose 3.2% in March 2013, seasonally adjusted, compared to March 2012. 
The drop in retail sales come as inflation rose 0.3% in April after a 0.2% rise in March, according to the TD Securities–Melbourne Institute Monthly Inflation Gauge, leaving inflation 2.1% up for the year, well within the RBA's target inflation band of 2% to 3.%.
ANZ comments that the fall in March retail sales was likely impacted by the timing of Easter this year (and the associated seasonal adjustment difficulties), but that March retail sales were 2.2% higher than at the end of last year.
"Together with the improvements in house prices, these data suggest that some interest-rate sensitive parts of the economy are beginning to improve. However, despite better consumer confidence and spending, there has been no notable improvement in business conditions and the non-mining investment outlook remains soft," says ANZ.
The trend estimate for Australian retail turnover rose 0.4% in March 2013. This follows a rise of 0.4 per cent in February 2013. Through the year, the trend estimate rose 3.3% in March 2013 compared to March 2012.
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Food better than fashion as retail sales fall by an unexpected 0.4% in March: ABS

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Fears of being gazumped are on the rise in Sydney as buyers face increased competition for properties in the improving market.
Gazumping occurs when a buyer has a verbal agreement with an agent or seller to buy a property at an agreed price but the property is sold to someone else for a higher price.
The incidence occurs in private treaty sales or when offers are made prior to auction. Auctions are binding sales and therefore absent of gazumping.
Raine &amp; Horne CEO Angus Raine says rebounding values could result in greater incidences of gazumping.
“Already I have received my first telephone calls from consumers beaten to the punch for a property, and this is historically a sign the market is hotting up,” Raine advised last month.
“In NSW, a home is still for sale until a prospective buyer and a vendor have exchanged contracts, and a deposit, which is usually 10% of the purchase price, has been paid.”
To avoid missing out, Raine advises aspirant buyers to familiarise themselves with the steps involved in buying a property.
“I’d also urge committed buyers to be quick to exchange contracts and pay a deposit, once they hit upon a suitable, well-located home, for the right price,” he says.
REINSW CEO Tim McKibbin says gazumping occurs more in “hot markets” where there is a shortage of property and there is greater competition among buyers.
He told News Limited weekend papers that buyers could protect themselves from gazumping by should ensuring contracts were signed as quickly as possible by both parties or to buy at auction.
NSW Fair Trading stresses that a property sale is “generally only binding on the vendor and buyer when contracts are exchanged between the two parties”
“Exchange occurs when the vendor signs their copy of the sale contract; the purchaser signs their copy, and the two parties ‘exchange’ their signed contracts. It is usual at this time for the purchaser to pay a deposit, usually 10% of the purchase price,”
“If you are gazumped, neither the agent nor the vendor is obliged to compensate you for any money you may have spent on legal advice, inspection reports, finance application costs or inquiries. However, your ‘expression of interest’ payment (if you have paid one) must be refunded to you in full” says Fair Trading in a special page on the topic on its website.
Real estate consumer advocate Neil Jenman warns buyers not to get their hopes up until a contract has been signed
“Buyers can count on nothing being certain until the sellers sign a legally binding contract. Between the time the sellers verbally agree to sell and the time they sign the contract, lots of things can happen. The sellers may get a better offer, they may decide not to sell or they may decide to increase the price,” he writes.
Tips from Neil Jenman to prevent being gazumped:
<ol>
<li>Consider making their highest offer rather than lowest offer and be prepared to walk away if they lose out. “It is tragic to lose the home you love because you bluffed too hard,” he says.</li>
<li>Try to meet the sellers. “It is hard for sellers to gazump you if they know you and like you and if they believe you have been fair with them”.</li>
<li>Insist that the agent informs you if another buyer offers more. </li>
</ol>
Raine &amp; Horne tips to avoid being gazumped
<ol>
<li>Have your finances pre-approved before making an offer</li>
<li>Obtain a copy of the Contract of Sale promptly, and pass it to your solicitor or conveyancer</li>
<li>Research your market so that you can be confident of putting forward a winning offer – then be prepared to move quickly to exchange contracts</li>
<li>Put an offer in writing – the law requires real estate agents to present all offers to the vendor</li>
<li>Signing a cooling-off period gives buyers time to organise a building and pest inspection without being gazumped. However if you don’t proceed, you will forfeit 0.25% of the purchase price to the vendor.</li>
</ol>
NSW Fair Trading tips for buyers to avoid being gazumped
<ol>
<li>Always have your loan finance pre-arranged, and ensure you can pay the 10% deposit, by Bank Cheque or a deposit bond so there is no delay before attempting to exchange contracts on a property.</li>
<li>Obtain a copy of the sale contract as soon as possible and have it examined by either your licensed conveyancer or solicitor.</li>
<li>Seek to exchange contracts with the vendor as soon as possible. Anyone puchasing residential property has a five-day cooling off period commencing from the time of exchange of the contracts. Only the purchaser can waive the cooling off period and it can be extended by agreement. During this time, you can do a building and pest inspection and have the contract examined. However, if you rescind the contract during this period, you forfeit .25% of the purchase price to the vendor, as the property has been taken off the market for a period of time. The amount forfeited is recovered from the deposit you paid under the contract. If the amount of the deposit is insufficient, you will have to provide the necessary additional funds. You should find information relating to the cooling off period in your contract.</li>
<li>Negotiate firmly with the vendor or real estate agent. Insist on the agent passing your bona-fide offers to the vendor and obtain written proof of this occurring. The law requires agents to do this. Be ready to exchange with a signed copy of the contract and follow through on the exchange process yourself or with another trusted person to ensure exchange. If you are advised that other offers have been made, demand to see written evidence. If you are certain that you want the particular property, be ready to possibly increase your purchase offer to the vendor.</li>
<li>Be aware that the vendor is not generally compelled to sell to any specific person and can change their mind at any time prior to the exchange of contracts. Vendors may not necessarily sell to the highest offerer, but may accept a lower offer from a prospective purchaser.</li>
</ol>
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‘Gazumping’ fears arise in Sydney: 13 tips to protect unlucky buyers

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Most people wouldn’t have heard of Bruce Rock.  I asked my wife and she thought it might be the name of a rock singer (that’s Kid Rock…).  Bruce Rock is actually a council region located 254 km east of Perth.  According to the <a href="https://www.brucerock.wa.gov.au/" target="_blank">Bruce Rock council web site</a>, it’s quite a nice place to visit:

The Shire of Bruce Rock and its townsite are situated in the heart of the Wheatbelt, 254km east of Perth.  It has a population of approximately 700 people, with 1200 people in the shire.  Bruce Rock ‘leads the way’ to open spaces and an agricultural experience to be enjoyed by all.  We welcome visitors to enjoy the picturesque main street, gardens, amphitheatre and sculpture park, historic buildings, museums, federation style verandahs and great facilities.
Unfortunately, it’s also one of two council’s recording the fastest rate of population decline over the past year.  According to the recently released regional population statistics from the Australian Bureau of Statistics, the population of Bruce Rock fell by 2.7% over the year to June 2012.  In raw number terms that equated to a loss of only 27 people; but when you have a population of less than 1,000 people to begin with, I’m guessing you would want to retain as many people as possible.
The <a href="https://www.hay.nsw.gov.au/" target="_blank">council region of Hay</a>, located in the Riverina region of NSW, also recorded a decline of 2.7% in population over the year to June 2012.  Hay is quite a bit larger than Bruce Rock with an estimated residential population of 3,013 residents (that’s taking into account the 84 fewer people over the year).  Hay Shire is noted as being one of the flattest places on earth.  More importantly, the region is part of one of the most important agricultural centres in the country.
Click to enlarge
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Looking across the council regions that have recorded the most significant rate of population decline it shouldn’t come as a surprise that they are generally rural locations and more often than not, they have an economy centred around agriculture with tourism often cited as a secondary industry.
I suspect the challenge for these regional communities is retaining the younger cohorts of the population.  A quick look at the Census data for the top five council regions based on the largest percentage fall in population shows an average age which is considerably higher than the national average which supports this notion. There has been plenty of research done on the regional population drain across Australia which a Google search will uncover.
As an aside, I thought this <a href="https://www.computerworld.com.au/article/427437/nbn_stop_rural_brain_drain/" target="_blank">article from Computerworld titled ‘NBN to stop the rural brain drain</a>’ was quite an interesting perspective on one of the benefits of how high speed internet access may help to sustain populations across regional communities.
Looking at areas where population growth has been the fastest, the regions tend to be across the outskirts of the capital cities and to a lesser extent the inner city areas where densification is driving population growth.  The fastest growing council region in the country is the Shire of Serpentine-Jarrahdale located on the outer southern fringe of the Perth metro area.  In fact, thirteen of the top 20 fastest growing council regions are located in Western Australia.
 
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From a wider perspective, comparing the capital cities and regional areas across the country, the four largest capital cities (Melbourne, Perth, Sydney and Brisbane) are recording the vast majority of Australia’s population.  In fact, 69% of the national population growth over the year to June 2012 was centred within these four cities.
Click to enlarge
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In percentage terms, the Greater Perth region is punching well above its weight, recording population growth of 3.6% over the year to June 2012.  The other regions recording a rapid rate of population growth are the regional areas of Western Australia, Darwin and Brisbane where the growth rate is higher than 2%.
Just like a declining population poses challenges, so too does a rapidly growing one.  Delivering sufficient infrastructure is always the pain point for regions where population growth is strong.  Pressure for new roads, bridges, public transport, schools and hospitals are high on the agenda in any of these regions and state and local governments are constantly challenged to deliver what is required.
If you’re interested in what is happening with population growth trends, I’ve put together a series of thematic maps based on SA2 boundareis that highlight where population growth is occurring and where are the areas experiencing a population drain.
This key (pictured below) indicates the rate of population growth from 2011 to 2012:
<img alt="lawlesskeymay6one" height="266" width="400" src="/images/stories/2013/05/lawlesskeymay6one.jpg">
<img height="334" width="470" src="/images/stories/2013/05/lawlessmay3threethumb.gif" alt="lawlessmay3threethumb">
<img height="454" width="470" src="/images/stories/2013/05/lawlessmay3fourthumb.gif" alt="lawlessmay3fourthumb">
 
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<img height="469" width="470" src="/images/stories/2013/05/lawlessmay3fivethumb.gif" alt="lawlessmay3fivethumb">
<img height="416" width="470" src="/images/stories/2013/05/lawlessmay3sixthumb.gif" alt="lawlessmay3sixthumb">
<img height="437" width="470" src="/images/stories/2013/05/lawlessmay3seventhumb.gif" alt="lawlessmay3seventhumb">
 
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<img height="458" width="470" src="/images/stories/2013/05/lawlessmay3eightthumb.gif" alt="lawlessmay3eightthumb">
<img height="490" width="470" src="/images/stories/2013/05/lawlessmay3ninethumb.gif" alt="lawlessmay3ninethumb">
<img height="499" width="470" src="/images/stories/2013/05/lawlessmay3tenthumb.gif" alt="lawlessmay3tenthumb">
<img height="460" width="470" src="/images/stories/2013/05/lawlessmay3eleventhumb.gif" alt="lawlessmay3eleventhumb">
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/" rel="nofollow">RP Data.</a>
 
 
 
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Australia's four biggest capital cities are dominating national population growth: Tim Lawless

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Any regular reader of Property Observer will be well aware of the industry-wide aversion to first-home owner grants.
Steven Keen was one of the first to highlight their effect on the market when he aptly named them ‘vendor grants’, and last week Ray White chairman Brian White made a similar call when he termed the increased Victorian stimulus for first-home owners purchasing new accommodation, nothing more than a “builder’s incentive.”
Even the REIV, which has been broadly in favour of retaining first-home owner grants, has expressed frustration at the liberties state governments take when ‘manipulating’ the market through annual ‘tinkering’ with our most price sensitive demographic.
Treasurer Michael O'Brien has suggested “Victorian families (purchasing new accommodation) will be over $16,500 better off with the combination of the increased grant and stamp duty cuts” however; surely no one is under the false conception that this move has anything to do with easing affordability?
It's basic economics – if you channel an increased supply of money by way of ‘candy’ style incentives into any one sector, competition increases and so do prices. Any advantage the grant offers is quickly wiped away and buyers invariably end up paying ‘more’ rather than less.
As an example, in 2008/9 during which the first-home owners ‘boost’ was offering an extra $14,000 on top of State grant of $7,000 for anyone purchasing new accommodation. The rush of buyers to ‘get in quick’ before the grant was inevitably stripped away resulted in prices escalating in excess of 20 % in fringe suburbs such as Tarneit and Werribee South.
If you work out the dollar equivalent on the median house price in these localities, the ‘extra’ paid is in excess of $70,000 - so no saving there – and as with all smarty style incentives, as soon as they’re stripped away, first-home buyers who were encouraged to buy on a “whim” are left sitting on a nice pot of negative equity with no ‘rainbows’ on the horizon.
Of course, state governments are well aware of all these facts – so to openly mislead the public with affordability ‘sound bites’ is at worst, lying, and best insulting – they don’t deserve a seat.
Rather the policy takes advantage of the inexperienced property buyer luring them in with a seemingly ‘generous’ handout, in order to provide a much needed boost to the construction industry which, as indicated by the RBA – is expected to ‘buffer’ any void resulting from a slowdown in the mining sector, and in the near term, will assist in soaking up the oversupply of ‘new’ accommodation prospected to hinder growth in Victoria’s property market, as we traverse through the remainder of 2013.
All such grants which are primarily aimed at the new home market play their part in increasing demand – but they are temporary measures only.  Is it too much to ask for ‘real’ sustainable policies which address the hefty taxes, levies and fees currently making up what the HIA estimate to be 40% of the cost of a new home?
Or am I making the mistake once again of being brainwashed by “policy speak” - imagining our housing market is designed to provide the population with affordable shelter over and above a simple revenue raising tool?
 
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As every Joe on the street will tell you – if you really want to encourage the buying market to 'spread over the land', the simple answer is to raise the dollars needed to fund essential infrastructure – principally roads and public transport – at the start of the process not 20-plus years down the line.
In this regard, economist Leith Van Onselen is at the forefront of ‘good’ ideas when he suggests raising money through bond financing and recouping it from ratepayers over a period of 30 years.
Similar ideas can be found in Houston Texas in which a successful expansion of their city boarders is funded with policies such as ‘MUD’ – a ‘deductable’ Municipal Utility District tax – in which a panel of property owners sit on a government appointed board to oversee utility and infrastructure distribution in the area. The amenities are initially funded by a bond which the residents pay back proportionally over a lengthy period of time. It works as less of a disincentive to migrate outwards than an upfront fee which is piled onto the capital cost of their initial purchase, with residents openly active in allocating where and how the funds are distributed.
Buyers typically follow train lines – if they can commute to existing work places whilst living further afield, the increased population encourages small business and larger job centres away from the centre thus releasing cities from their ‘donut’ outlook.
However, currently, our outer suburbs are developing into what some term would term ‘ghettos’ – on the recently released ABS data which ranks geographic areas across Australia in terms of their relative socio-economic <a target="_blank" href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/2033.0.55.001~2011~Main%20Features~Main%20Page~1">advantage and disadvantage</a>.  A map can be constructed which highlights diversities such as incomes, education levels, occupations, rent and mortgage payments, family structure and unemployment.
<img height="327" width="470" src="/images/stories/2013/05/cashmoremay3one.jpg" alt="cashmoremay3one"> 
The ‘fringe’ suburbs are beetroot red and bright orange and sit well away from the affluent dark blue vicinities.  They are suburbs first-home buyers or families - supposedly ‘moaning’ about inner city house prices - are encouraged to “migrate” to and raise their children - areas without adequate schools, transport, and recreational facilities.
Throughout 2011-2012, the City of Wyndham in Victoria has experienced the biggest population growth of any municipality in Australia - attracting 12,822 people. Point Cook, a suburb of Wyndham which was expanded in line with Melbourne’s 2030 plan – was initially marketed as “A thriving neighbourhood … just 22 kilometres from Melbourne’s CBD” with “convenient access to established schools, shopping, recreational facilities and public transport.”
However, last year Bill Forrest – director of advocacy with the Wyndham City Council – painted the true picture when he was quoted saying "they [the state government] have not kept up with schools, they have not kept up with arterial roads, more than 50% of Point Cook is more than 400 metres from a bus stop."
In response to the long winded cries from residents situated in Melbourne’s outer west, $72 million is to be set aside in this week’s Victorian Budget to upgrade existing roads and infrastructure as the capital of Wyndham – Werribee - continues to expand into what is intended to be a major new ‘job hub’ - East Werribee.
Planning Minister Matthew Guy has stressed the “government is doing everything we can, within budget constraint, to invest in the west," however, whilst the funding is welcome, it’s quite honestly, too little too late. Notwithstanding, the blame sits as much on previous government’s shoulders as much as it does the current.
It’s all very well talking about further land releases – once again under the guise of ‘aiding’ affordability – however, without fixing the above issues we’re simply sitting on a merry-go-round of repeated mistakes. There’s little sense creating new suburbs of sprawling 'McMansions' where the trade-off of a bigger house is of little consequence once you step outside the front door.
 
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As for the inner suburban locations – our housing market is a private debt laden bubble riddled with a broad demographic of buyers and investors competing for the same golden nuggets of established real estate – typically in the lower to middle median price bracket.
Whilst Melbourne may be making headway in the lead to population supremacy, it’s not the growth that has inflated the cost of our established housing market – rather it’s policy that encourages credit expansion based on speculation. Sydney – which has made fewer inroads to effectively their increasing their housing stock in response to population growth sits in a worst position.
Reports released from the ATO show from the one in seven who own an investment property, whilst one in ten taxpayers’ are negatively geared.
It’s broadly assumed the policy of negative gearing subsidises renters. However, the offset of increased competition in the established market (which is further inflated through capital acquisitions in SMSFs) inflates the price of existing accommodation in a never ending game of musical chairs.
In this respect, negative gearing has done an excellent task of ensuring renters stay renters as lower and middle income individuals find themselves priced out all together – unable to save enough in the race to ‘keep apace.’
Considering the same report highlights a collective lost in excess of $13 billion over the 2010/11 financial year for those who employ the strategy, it’s no wonder the focus centres on the established market with the hope history will repeat itself and enable investors to compensate through the capital growth of their asset, without which there is little sense to the purchase.
Unfortunately, the latest media release from RP Data may disappoint those chasing an increase in the core value of their investment as it seems ‘real’ growth in the Australian property market is at a current or “similar level” to that recorded almost six years ago.
Or to quote RP Data’s research analyst, Cameron Kusher: “Although nominal values have risen over recent years, in real terms, capital city home values are currently at a similar level to what they were in September 2007.”
Once again, it emphasizes the need for investors to adopt a ‘low growth’ mindset as we move into an atmosphere which the RBA have termed in their “Housing and Mortgage market” outlook, to be the ‘new normal’ – principally, lower capital returns that typically track the rate of inflation.
All in all, we make nice puppets for our governing bodies. Bombarded with stats that suggest inflation is well contained, whilst in reality, the cost of living has rocketed with many still waiting for the wage rises for which ‘we’re told,’ have more than compensated.
If nothing else, let’s celebrate the freedom we have to make our distaste for current government policy evident. It’s a tad more satisfying than staring blankly at a ballot paper in September, knowing the next ruling party will no doubt provide more of the same.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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