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 first quarter of 10 of the past 17 years has seen the strongest property growth for that year.
The seasonal nature of the market suggests that the 2.8% value growth recorded over the first quarter of 2013 is unlikely to be maintained throughout the remainder of the year.
If the growth rate continues at this level for the remainder of the calendar year, it would represent a rise in capital city dwelling values of 11.2%.
However, if history is anything to go by, this rate is unlikely to continue.
Click to enlarge
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It’s important to remember that Australia’s national housing market is highly seasonal with values seeing a greater level of quarterly growth over the first and third quarters of the year and with growth typically lower over the second and final quarters.
Between 1996 and 2012, the first quarter recorded the strongest rate of capital appreciation in dwelling values across 10 of the 17 years.
In each instance, and where the first quarter of the year had not recorded the strongest value growth, it was the third quarter which recorded the greatest value growth.
The results highlight the significant impact of seasonality on the change in capital city home values.
Further analysis of the today’s results show that the second quarter of the year recorded the weakest capital growth conditions on four occasions over the period.
On all other occasions, the fourth quarter experienced the lowest growth in values (note over the past two years Q2 and Q4 have recorded identical levels of value growth).
Across the period for which the analysis has been undertaken, the second and fourth quarters never recorded a greater increase in value than that of the first quarter.
 
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The results underscore the high level of seasonality within the housing market and the fact that growth levels over the first quarter of the year won’t necessarily be reflected in performance over the remainder of the year.
Although seasonality does have an impact on the performance of home values, the housing market does not sit in isolation to the rest of the economy.
As we know, economic conditions can, and do change rapidly.
When these come into play, we often see a significant impact on the housing market despite conditions being typically stronger over the first and third quarters and weaker over the second and final quarters.
Mortgage rates, unemployment, housing finance commitments, retail trade and consumer sentiment also play a large part in determining the direction of home values and whether or not consumers are prepared to buy and sell their homes.
In conclusion, although results confirm that capital growth across the housing market experienced a strong start to 2013, we should not expect the same rate of growth to be carried throughout the remainder of the year.
Testament to this is the March 2013 RP Data-Rismark Daily Home Value Index which provides evidence that home values across the five major capital cities fell by -0.1 per cent over the first fifteen days of April despite the strong capital growth conditions experienced recently.
The housing market is likely to continue along a recovery path, however, we anticipate slower capital growth conditions throughout the remainder of 2013 than those which have been recorded over the first quarter of the year.
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Cameron Kusher is senior research analyst at <a rel="nofollow" target="_blank" href="https://www.myrp.com.au/">RP Data</a>.
 
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ckusher-ujnxiKuFQs

First quarter usually has the year's strongest residential property market: Cameron Kusher

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The franchised national hairdressing chain, Blow Dry Bar, has leased space at FKP Property Group’s $150 million Camberwell Junction Aerial apartment project.
Blow Dry Bar - which offers $40 blow drys - now has 23 salons nationally listed on its website. Its Melbourne salons include Port Melbourne, Malvern, Brighton, Richmond and Docklands. It was founded in 2008 with the first Salon in Market Street, Sydney by Nathan Cuneen, who although not a hairdresser saw a gap in the hairdressing industry.
<img src="/images/stories/2013/04/blowdryapril17one.jpg" width="470" height="353" alt="blowdryapril17one">
Blow Dry Bar has taken a three year lease over a 68 square metre space at a rental around $750 a square metre per annum through Savills Australia retail director, Michael Di Carlo, who brokered the deal with colleague Jeremy Marmur.
Its within the project's Riversdale Road pedestrian laneway where Jetts Fitness, B&amp;O, and Meat &amp; Wine Co have also taken space.
The Blow Dry Bar website says it's shortly expanding to North America.
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jchancellor-FAypfDUnLy

Blow Dry Bar takes Aerial, Camberwell Junction space through Savills as it sizes up its North American expansion

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A Montague precinct redevelopment holding is set to go under the hammer in the first auction since the area was zoned Capital City One (CCZ1).
<a target="_blank" href="https://www.lemonbaxter.com.au/">Lemon Baxter</a> has 125-133 Thistlethwaite Street (pictured below) scheduled for April 24 auction.
<img alt="montagueapril17one" height="315" width="470" src="/images/stories/2013/04/montagueapril17one.jpg">
It's a 1,211-square-metre site with 27.5 metres of street frontage.
“The site represents an unprecedented future high rise development in the heart of the Montague precent,” says Lemon Baxter’s Richard Hutton.
Victorian planning minister Matthew Guy rezoned 240 hectares in South Melbourne  and Port Melbourne last year into four CBD-style mini-suburbs – Montague, Lorimer, Sandridge and Wirraway – to be the future homes of 50,000 residents.
Since re-zoning, plans have been proposed for six sites in the Montague area, which is close to the CBD and transport links.
The Thistlethwaite Street offering provides purchasers a property with a short-term lease allowing the value add potential of a high-rise permit.
The site is two buildings – warehouse and office – over three titles.
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Melbourne mini-suburb Montague prepares for first commercial auction

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Sentiment within Australia’s property industry is at an 18 month high, according to research by Property Council of Australia and ANZ.
The gains are driven by increased confidence in the housing market and easing financing conditions, according to Property Council of Australia-ANZ Property Industry Confidence Survey.
Across the country overall sentiment is up from 107 last quarter to 124 on the index. A score of 100 is considered neutral.
NSW, VIC, WA and QLD recorded the largest increases in sentiment.
Western Australia leads at 149, followed by Northern Territory at 132, New South Wales at 131, Queensland at 121, Victoria at 117, South Australia at 108, ACT at 96 and Tasmania at 96.
State by state break down as follows:
Victoria
Victoria rose 18 points on the index – the third consecutive rise, but there are concerns about rising construction costs.
The report found rising Victorian sentiment is primarily being driven by the retirement living, industrial and residential sectors, with 58%, 40% and 39% of Victorian respondents expecting increases in construction activity levels over the next 12 months for these sectors respectively.
Property Council Victorian executive director, Jennifer Cunich, says the survey also found the rising cost of construction was a growing concern for the sector, with 46 per cent of Victorian respondents indicating they believe the cost of construction will rise over the next twelve months.
“Rising construction costs undermine project viability, interstate competitiveness and threaten our ability to attract investment,” Ms Cunich says. Unless Victoria gets its construction costs under control, we will continue to loose vital investment and labour to more competitive markets.
“The Property Council hopes next month’s State Budget tackles this challenge by placing downward pressure on construction costs. Reductions in planning delays, industrial disputation and bureaucratic red tape would make a big difference to the sector’s long term outlook and investment levels.”
ANZ Head of Property Research, Paul Braddick says, “the increase in property industry confidence was likely driven largely by an improved outlook for the residential property market, with solid housing sales and positive house price growth in recent months.”
“In addition, a more stable global economic outlook and expectations of increased availability of debt finance are likely to have boosted expectations for construction activity and property capital growth in Victoria,” Mr Braddick says.
“Nonetheless, we expect property industry confidence to be weaker in the coming quarters, weighed down by a soft outlook for the Victorian economy, further slowing in Victoria’s housing construction from the recent peak and a subdued outlook for retail spending and office employment.”
New South Wales
New South Wales rose 19 points on the index.
“Sentiment across the property industry has hit new heights and now sits well above the national average,” says Property Council NSW executive director, Glenn Byres.
“In fact, NSW enjoyed the biggest lift in sentiment of all jurisdictions across the country.
“Positive expectations for national economic growth, availability of debt finance and house price growth have largely fuelled the positive result.
“There are also strong expectations for an increase in staffing levels and forward work schedules across the industry.”
Paul Braddick says, “tight residential property market demand/supply fundamentals, low mortgage rates and solid housing market sales in recent months have driven property industry expectations for house price growth and housing construction higher.”
“However expectations remained varied across sectors with the strongest expectations for capital growth in aged care and commercial office property, while a subdued outlook for retail spending is expected to drive retail property values lower in the coming year,” Mr Braddick says.
 
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Queensland
Queensland jumped 17 points in the index.
“The industry returned to the market with renewed positivity after the new year break,” Queensland executive director of the Property Council of Australia, Kathy Mac Dermott says.
“Responses show that the industry in Queensland expects more positive capital growth in all sectors over the next 12 months.” “House price expectations saw its 3rd consecutive quarter of predicted growth and led the sentiment increase.”
Paul Braddick says, “while property industry confidence remains weighed down by a soft outlook for the coal mining sector and recent job cuts to the state government public service, solid growth in retail sales and house prices in Queensland appear to be partly driving a more optimistic outlook for Queensland’s economy and property sector.”
“The survey results show the net balance of Queensland respondents expect state economic growth to increase and commercial property prices to be higher across all segments in the coming year.”
Western Australia
WA rose 18 points on the index, pushing it well in the lead.
The survey found expectations are at their highest point since the survey’s inception consolidating gains made in the March-quarter survey.
Respondents were positive about expectations for state economic growth, with the index score rising strongly from the March quarter (110) to 132 for the June quarter.
Expectations for house price growth are up across Australia with the strongest survey reading in Western Australia. The WA index climbed from 129 in the March-quarter to finish at 164 for the June-quarter.
Property Council WA executive director, Joe Lenzo, says the standout in the survey numbers was that residential is now the new darling of the property sector in WA.
“After a sustained period of negative and stalled growth the survey numbers anticipate a steady pick-up in residential capital values over the next 12-months.
“We have rebounded from previous quarters when respondents were affected by negative sentiment about the resources sector and what impacts this might have on the housing market in WA.
“The June-quarter results have shown that these jitters have receded with a marked improvement in market confidence.”
Paul Braddick says results were driven largely by the most optimistic outlook for the state economy.
“Despite a softer outlook for WA mining infrastructure spending in the coming year, recent increases in Western Australian housing prices, particularly Perth unit prices, and solid state economic growth have driven high property industry expectations for property prices and construction activity,” Mr Braddick says.
“Respondents revealed a particularly optimistic view for residential property with 80% of respondents expecting residential property prices to be higher in the coming year and 84% expecting residential building activity to be higher over the same period.”
 
<hr class="system-pagebreak">
South Australia
Sentiment rose eight points in the index.
Property Council of Australia South Australia executive director Nathan Paine cautiously welcoms the results, saying that while the lift in sentiment was supported by an improvement in the availability of finance, concerns remained about overall demand levels in the economy.
“While we welcome the positive headline result, respondents’ views of wider economic fundamentals stayed stubbornly bleak, at both the state and federal level,” Mr Paine says.
Respondents’ expectations about the availability of debt finance presented one of the big surprises, with a ten-point turn-around from four points in the negative to six in the positive. This might reflect the growing awareness of patient capital across the globe looking for a secure home. Another notable turn-around was a jump in expectations for housing price growth, a result broadly reflected across the nation.
“While we welcome these “green shoots” of optimism, it is important to note that confidence is a subjective thing, and it is relative,” Paine says.
“These results clearly show that South Australia has room for improvement.”
Paul Braddick says, “the increase in property industry confidence was likely driven by an improved outlook for the residential property market in the June quarter, with the net balance of survey respondents expecting house prices to be higher in the coming year.”
“In addition, survey respondents reported positive expectations for capital growth and construction activity in aged care property, with 51 per cent of respondents expecting aged care property values to be higher in the coming year and 68 per cent expecting aged care construction activity to increase over the same period.”
Northern Territory
Northern Territory rose one point on the index to 132.
The NT’s score on government performance has dropped by 37 index points which is only second to Tasmania, the worst performing state.
Property Council NT executive director, Raquel Nicholls-Skene, says, “now that the NT political situation has settled down and with the implementation of the planning reforms coming into play we expect to see a more positive outlook on the NT Governments performance over the next 3 months.”
“NT still has strong growth however there needs to be some recognition that not all sectors are as buoyant as the industrial sector at the moment.”
Paul Braddick, says the NT’s positive outlook was underpinned by the economic benefits from major energy project investment to demand for labour, property market returns and household income.
“The property sector is already sharing in the Northern Territory economic boom, with Darwin house prices 9.7% higher in the year to February 2013,” Braddick says.
Australian Capital Territory
ACT rose six points in the index to 96, still below the middle ground of 100.
Property Council ACT executive director, Catherine Carter, says the latest survey shows ACT continues to have the lowest sentiment of any mainland state or territory, though this had improved marginally from the March 2013 quarter.
Paul Braddick says respondents in the ACT maintained a broadly negative view of the property sector reflecting a soft economic outlook for ACT.
“With the combination of an uncertain political outlook leading up to the September federal election and a continued unwinding of the 2011 dwelling construction boom likely to have weighed on ACT property industry confidence, 50% of respondents expect ACT economic growth to be lower in the next year,” Braddick says.
 
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awalsh-7Ub9EypybQ

Property sentiment at an 18 month high: Property Council of Australia

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The International Monetary Fund expects Australia will grow at a slightly lower pace in 2013 than it did in 2012, predicting total growth of 3%, followed by 3.3% in 2014. Last year, the Australian economy grew at 3.6%.
China is projected to grow at 8% this year, up from last year’s 7.8% growth, while India is also expected to accelerate, rising to 5.7% growth from 4% last year.
‘‘We are in a better place but ... we’re not out of the woods,’’ IMF chief economist Olivier Blanchard reportedly said at a media conference when releasing <a target="_blank" href="https://www.imf.org/external/pubs/ft/weo/2013/01/pdf/text.pdf" rel="nofollow">the IMF’s quarterly World Economic Outlook.</a>
Tom Taylor, the head of international economics at NAB, says the report is largely good news as it shows the IMF thinks the global economy has hit its low-point.
“Most of the world’s growth for the past few years has been occurring in places outside the developed, advanced economies,” he said.
“The IMF report envisages a gradual pickup in global economic growth, coming from an acceleration in the big advanced economies, like the United States and Japan, and an ending of the recession in the eurozone.”
“Across the big advanced economies, we can see growth is expected to accelerate… and that’s pretty consistent with [NAB’s] own views.”
The United States is expected to grow at 1.9% in 2013, down from 2.2% in 2012, before accelerating to 3% in 2014. Estimates for Japan have been dramatically revised upwards to 1.6% in 2013, after the government announced a large program of monetary easing earlier this month. January’s IMF outlook report had expected Japan to grow at just 0.4% in 2013.
The IMF expects world growth to grow at 3.3% this year and then 4% in 2014.
However, Taylor said, the report also highlights risks that hang over the global economy.
“The first of these is the eurozone, where we’ve been reminded recently of the dangers given the problems in Cyprus,” he said.
“The second one is the concerns over the US budget. So far this year, that’s turned out better than it might have, but are still concerns.”
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/" rel="nofollow">SmartCompany</a>.
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mrobin-TVRYiru7si

Australia's growth to slow slightly in 2013: IMF

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Cromwell Property Group has raised $66.5 million from investors for its unlisted Cromwell Box Hill Trust.
The single asset unlisted property trust managed by Cromwell Funds Management Limited was launched in December 2012 to help fund construction of an eco-friendly, 20-storey office building in Box Hill in Melbourne.
The building is 97% leased to the federal government for 15 years from completion and will house the Australian Taxation Office.
The building is currently under construction and due for completion in March 2015.
The building is expected to be valued at $116.8 million on completion.
Cromwell CEO Paul Weightman said the fund raising was strongly supported by a range of investors and financial advisers, including many retail investors and financial advisers investing in Cromwell for the first time.
“We continue to see strong demand for high-yielding investments that are underpinned by quality assets,” he says.
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lschlesinger-FZcF9M3vE6

Cromwell raises $66 million to build ATO building in Box Hill

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A 1950s three-bedroom Lalor Park house was the weekend's cheapest auction sale in New South Wales last weekend, selling for $350,000 according to Australian Property Monitors.
Located at 9 Corella Road, the brick house sits on a 620-square-metre corner block.
{yoogallery src=[images/stories/2013/04/april17lalor]}
The property, last sold in 1958 for £7,200, was auctioned as a deceased estate.
Its <a href="https://www.realestate.com.au/property-house-nsw-lalor+park-113328339" target="_blank">listing agent Matt Lucas of LJ Hooker Blacktown</a> told Property Observer there were 50 plus people present at the onsite auction with competitive interest.
“We had eleven registrations and five people going head-to-head,” he said.
Lucas said the house has the potential to be an “investment-style property,” but the current buyers were looking to renovate it first.
The property features the original kitchen.
Based on LJ Hooker's estimated $320 rental per week, the price reflected a likely rental yield of 4.75%, slightly lower than the average rental yield in <a target="_blank" href="/news">Lalor Park</a> which currently stands at 5.6%, according to RP Data.
However Lucas told Property Observer that the asking rent is likely to increase to $380 to $400 a week after the property has been renovated, bringing the estimated rental yield to 5.79%.
Lucas added that Lalor Park typically attracts first-time homebuyers and young families. In recent weeks investors have also been showing strong interests in the area.
“It’s a bit of a changing time mainly due to investors coming in. There’s not much available stock left,” he told Property Observer.
According to the <a target="_blank" href="/news">latest report by RP Data</a>, the median sale price for houses in Lalor Park is $350,000, down by 1.7%  on last year. The average discount required to sell a house is 5.4%, while private treaty sales average 54 days on market.
Other houses currently for sale in Lalor Park include: 46 Northcott Road, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-lalor+park-113407991">listed for $395,000</a> by Australian Real Estate Kings Langley and 16 Iwunda Road, <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-lalor+park-112687911">listed for $369,000</a> by Richardson and Wrench Baulkham Hills.
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dleow-BGaNPbHWyK

One owner Lalor Park house fetches $350,000 median after 55 years ownership

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The latest quarterly report from Savills Research shows little change in the average prices of luxury off-the-plan apartments in Sydney compared to the same time last year.
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The average price of a luxury three-bedroom apartment bought off-the-plan was $4.75 million for the March 2013 quarter and also in the March 2012 quarter. This pricing represented a significant shift on 2011 prices (see below).
Two-bedroom apartments were selling for an average of $2.63 million, while one-bedroom offerings were selling for an average of $860,000.
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po-LsXgBTHBmX

Little movement in Sydney luxury off-the-plan apartment prices: Savills

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March quarter statistics appear to confirm what we have been experiencing on the ground: house prices are on the rise.
According to the REIV, house prices rose by 5.1% to just over $560,000 and although a single quarter does not make a market it will certainly turn the spotlight onto property.
Investors always seem to want just a little bit more and as house prices move many investors will start to think of ways to maximise their returns.
One of the strategies that will raise its head is property flipping: buying a residential investment property, renovating it, then selling it to make a profit.
Property flipping is a common strategy, but unless you plan carefully, it may not bring the kind of return you were hoping for.
When you buy a residential property, the state government asks you to pay stamp duty worth around 5% of the purchase price.  
If you’ve borrowed to purchase the property and undertake the renovations, you are paying interest on the loan without receiving any rental income during the renovation period to offset the loan repayments.  
When you sell the property, you’ll lose 2-3% of the sale price in the commission you pay the real estate agent, plus another 1% in advertising costs.  
In short, not only are you paying interest on an investment loan out of your own pocket, but you are losing close to 10% of the property’s value merely by entering and leaving the market.  
And, when you actively add value to a property, you are taking a gamble that the sale price will equal the price of the renovations plus your profit margin. Most property grows in value over time, but not all sectors of the market grow at the same rate.  
If there isn’t sufficient demand for your style and location of property, you may not make enough money to cover the entry and exit costs, outstanding loan balance and renovation costs, let alone make a profit. If you do make money on the transaction and you sell the property, you will also be liable for capital gains tax. It’s like taking two steps forward and one back.  
I am not saying that buying to renovate and sell is a poor strategy in itself. It can be highly successful, but only if the capital growth outstrips the buying, holding and selling costs.
Even in locations where capital growth is strongest, this may take several years. And capital growth compounds, so the longer you hold the asset, the greater the amount of growth.
If you sell the property as soon as the renovations are complete, you may not have allowed enough time for capital growth to take full effect — substantially reducing your potential profit.  
In other words, the substantial entry, exit and holding costs mean residential property should not be traded like shares, but held for the long term (at least 7 to 10 years) to ensure the capital growth justifies all the expenses you’ve incurred along the way.  
If a real estate agent is advertising a property as perfect for adding value, ask yourself whose interests they are promoting — yours or theirs? Remember, they stand to make a commission on selling the property for the previous owner, followed quickly by another commission on selling the property for you after it has been renovated.  
If you still believe that buying to renovate and selling quickly is the right strategy for you, make sure you calculate all the likely holding and transaction costs.  
Then, research the local market to determine the property’s likely selling price. Look at other properties in the area that have been renovated to the same standards as yours and sold in the last three months.  
It’s also important to factor in the cost of your time. How much you would have earned from your normal job if you weren’t at the property supervising or undertaking the renovations? And what about your leisure time? How much time will you spend away from your family and friends?
For example, if the project is going to take up six months of your evenings and weekends when you would otherwise have spending time with loved ones, will the expected financial profit make that lost time worthwhile?
If the holding, transaction and time costs add up to more than the property’s likely sale price, you may need to reconsider whether it’s worthwhile undertaking the project.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and homebuyers.
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marmstrong-sd3emVLPPb

Property flipping is risky business

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There is currently two schools of thought with regard to the future of the retail property market.
The first believes that after much hibernation, retail property is set to surge again.
The second believes that with the high dollar, and growth in online shopping, retail has much catching up to do.
Despite Australia having been mostly sheltered from the GFC, retailers (especially in strip shopping centres) have been doing it rather tough.
Before the GFC, retail property yields had plummeted – in some cases, as low as 3.5% per annum – with investors clamouring for what they saw as "sexy property". And they believed values would always increase dramatically.
Then, everything changed
Consumers became nervous, and decided to save or pay off more of their mortgages rather than spend on anything other than necessities. And this continued for the ensuing five years.
That is, until February 2013, when retail sales surged 1.3% — the largest monthly increase for 12 years.
Moreover, according to the ABS, it appears to be broad-based with strong growth in household goods and department stores (both up by 1.6%) and eating out (up by 1.3%).
Therefore, on the face of it, things appear to be looking rosy for the retail sector once more.
Yet, all is not well
Perhaps a snapshot from a typical strip centre in <a href="/news">Fairfield</a> in Melbourne would suggest otherwise.
According to the Herald Sun, "In Fairfield's trendy Station Street, some stores have shut and others have shifted online but, as Elissa Doherty reports, at least the op shop's thriving..."
This strip centre is punctuated by vacant shops with one boutique saying it all with a sign: "Closing down sale, going online".
Overall, the fashion and specialty shops are still struggling. Although food seems to be holding its own — presumably because everyone still needs to eat.
And sadly, this scene will merely be a reflection of what's occurring in most capital cities around Australia.
Bottom line: you simply need to go back to basics. Gone are the days of retail property being considered the glamour sector.
To be a successful investor, what you require is:
<ul>
<li>
an established retailer;
</li>
<li>
running a profitable business;
</li>
<li>
secured on a long lease; and
</li>
<li>
paying proper market rental.
</li>
</ul>
In other words, the precise criteria office and industrial investors have been adopting for years.
However, with the ongoing structural changes still occurring in the retail sector, that may prove to be a rather difficult task.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
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