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>
Peninsula Riverside, a 15-storey apartment tower is slated for construction in Kangaroo Point as Tom Dooley Developments (TDD) has emerged as an $11 million Thorn Street development site project buyer.
It's one of the sites that Property Observer reported in <a target="_blank" href="https://www.propertyobserver.com.au/news/shafston-house-listed-by-keith-lloyd/2013013158998">February</a> has having been listed by Brisbane businessman Keith Lloyd.
The tower will replace a 31-unit apartment complex currently operated as student accommodation.
"There are 31 old flats we are knocking down for the new building," TDD managing director Tom Dooley told Property Observer.
The site’s original development approval allowed for a 20-level mixed use building, which will be amended by Dooley. 
TDD plans to build a 168-apartment block on the site, overlooking the landmark Shafston House, with north-easterly views of the river.
The <a target="_blank" href="https://www.tdd.com.au/">TDD development group </a>has previously completed three other projects in Kangaroo Point. These include 19 Thorn, a 28-unit apartment block on 19 Thorn Street; Story, an apartment complex located at 89 Lambert Street, and luxury development Mon Rêve, at 98 Thorn Street.
Story comprised 72 apartments and six two-storey townhouses when completed in January 2007. It was awarded the 2007 regional commendation from the Royal Australian Institute of Architects.
Mon Rêve is an award-winning luxury development of 43 apartments spread across two towers on the north-eastern reach of the Brisbane River. It was completed in 2004.
“There has been a lack of new apartments in Kangaroo Point due to the shortage of development sites and the fact that the Kangaroo Point Peninsula is landlocked by the river,” Mr Dooley said.
The new development will be priced from $370,000, offering one and two-bedroom apartments.
Mr Dooley told Property Observer that marketing for the new development began last Friday with its first release.
Work is expected to start on the development, to be named Peninsula Riverside, in August.
Property Observer reported in <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/australand-profits-up-5-in-interesting-times-with-strong-demand-for-melbourne-apartments/2013020659199">February</a> that property developer Australand’s Kangaroo Point developments The Promontory, The Linc, and The Residences were showing strong sales.
The apartments at Kangaroo Point Peninsula are currently <a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-kangaroo+point-113431615">listed for sale</a>. <a target="_blank" href="/news">RP Data gives the suburb's median unit price as $470,000</a>.
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dleow-BGaNPbHWyK

Tom Dooley returns to Kangaroo Point with fourth residential project

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I often get asked by my investor clients about whether they should furnish their investment properties.
The answer to this really depends on your market and current demand.
For example, over the past few years in inner city Sydney, I have seen a growth in the number of investors who choose to furnish their apartments not just for a higher financial return but also for practical reasons – with many choosing to live in the property between tenancies.
Overall, there is much more interest in unfurnished properties in this market; around 75% of my clients who are looking for a lease property will ask for an unfurnished place that can be fitted out to suit their taste and style. Generally, unfurnished tenancies are longer-term leases with minimal vacancy and wear and tear.
However, good quality unfurnished apartments available for lease in the inner city are getting harder to come by with close to 85% of apartments sold in this market over the past year have been to owner-occupiers.
If you do decide to furnish your property to lease, there are a few key things you will need to consider:
<ul>
<li>
Furnished properties generally have a shorter lease term – usually between 3-12 months – so you need to factor in a higher turnover of tenancies, which means increased possibility of vacancy and more frequent leasing fees.
</li>
<li>
If you are going to do it, it needs to be done well! Your apartment needs to be beautifully styled and warm and inviting. It also needs to be fully equipped; it’s easy to forget the smaller details like kitchen utensils, vacuum cleaners, linen, and so on.
</li>
<li>
Monitor all your furnishings and ensure that your entire inventory is well maintained. Items should be replaced promptly if they are not working. Most properties need an update of furnishings or restyling every 3–5 years
</li>
</ul>
When furnishing an investment, you need to be aware that although you may receive a premium of between $100-$250 a week for the furniture; once you have factored in the probable vacancy due to the shorter-term leases, the maintenance of inventory items and extra agency fees – you’re likely to achieve a better return on an unfurnished property.
In saying this, if your investment is more of a lifestyle choice and you’re able to use your city pad in between tenancies, then enjoy!
Carlie Ziri is the director of <a target="_blank" href="https://www.lifestylepropertyagency.com/" rel="nofollow">Lifestyle Property Agency.</a>
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cziri-avMho78xfG

The pros and cons of furnishing your investment property

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Well, where to start today?
Firstly we have got the China data. GDP growth of 7.7% y/y may sound very strong, but the market was expecting better, and the quarterly result of 1.6% growth implies that perhaps future growth may be lower.
This was a bit of a kick in the guts for the market, and Australian stocks got a reality check, falling sharply by 1.6% before recovering a little, and the dollar fell sharply too to 104.3 cents.
As margin calls are activated gold prices continued to get hammered by a further 3%. The share price of gold miner Newcrest (NCM) got crucified falling by more than 8% today to below $17.92 from its high of recent years of above $40.
All looking a bit shaky, which will renew calls for a further <a href="?option=com_googlesearch_cse&amp;q=interest%20rate%20cut" target="_blank">interest rate cut</a>.
<img src="/images/stories/2013/04/wargentapril16onethumb.gif" width="470" height="324" alt="wargentapril16onethumb">
Source: ASX
On the positive side, Australian housing finance data beat expectations with investor demand increasing by 15% y/y and reaching its highest level in more than half a decade as the property market recovery continues. The total value of dwelling commitments continues to grow:
<img src="/images/stories/2013/04/wargentapril16twothumb.gif" width="400" height="502" alt="wargentapril16twothumb">
Source: ABS
In my book <a target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Get-a-Financial-Grip/968/productview.aspx">Get a Financial Grip</a>, I discussed the trend towards apartment dwelling, and how investors - having been spooked by the brutal stock market crash through 2008 and early 2009 - increasingly look to real estate as a tangible store of wealth which they feel they can better understand.
Capital city property markets were once seen as places to live. Today they are largely investment markets.
RP Data's Weekly Report yesterday showed that the highest auction clearance rates were once again in Sydney, and the fastest selling property type continues to be units in that city. This has been reflected in increasing prices in that sector.
<img src="/images/stories/2013/04/wargentapril16threethumb.gif" width="400" height="244" alt="wargentapril16threethumb">
Meanwhile, the property cycle moves on in Britain with prices up to a five-year high. As noted here before, the south-east of England is where the bulk of the housing shortage is forecast to be, and it is no surprise to see the gains led by London prices (reportedly now 17% higher than their  previous peak).
However, when adjusted for inflation, median UK house prices are below where they were at their peak, so the 'Help to Buy' scheme may well see prices move higher. Foreign investors are particularly attracted to London - especially <a target="_blank" href="https://www.worldpropertychannel.com/asia-pacific-commercial-news/malaysia-funds-investment-london-property-6714.php">Malaysians</a> it seems!
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/" rel="nofollow">Get a Financial Grip – a simple plan for financial fr</a><a target="_blank" href="https://petewargent.blogspot.com.au/" rel="nofollow">eedom.</a>
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pwargent-M4siyDbqQY

Strong housing finance data and Sydney auctions performance shows market recovery is continuing

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The latest rental report from Australian Property Monitors highlights how much apartments are challenging standalone houses for the hearts and minds of property consumers.  
One of real estate’s dominant paradigms has been that houses out-value apartments because of the greater land content. The land appreciates and the dwelling depreciates, so they say.  
But as more and more buyers and renters opt for apartments, the old dynamic is shifting.  
In Melbourne, the median rent for apartments is the same as that for houses, at $360 per week. In Sydney, there is a narrowing gap: the median house rent is $500 and the median unit rent is $470. There’s also a small difference in Brisbane: $390 for houses and $375 for units.
The popularity of apartments as a lifestyle choice has been rising readily for years. This is seen in the figures for new dwelling construction across Australia: the market share of units and townhouses has risen sharply in the past five years.  
In 2008-09, 30% of new dwellings were units. It rose to 33% in 2009-10 and further to 38% in 2011-12. In the current financial year it will be close to 40% of new dwellings constructed.  
Part of this may be attributed to over-building in places like the Gold Coast and inner Melbourne, but it does tend to confirm the steady rise of attached dwellings as a force in the market.  
This has gathered pace through the preferences of younger buyers, opting to buy or rent closer to the inner-city action, rather than secure a house on land further out, and preferring also the low-maintenance lifestyle offered by units and townhouses.  
Affordability is another part of the choice. While the rental gap between houses and units has narrowed, there is still a considerable difference in price for those opting to buy.  
The <a target="_blank" href="https://www.propertyobserver.com.au/residential/rp-data-rismark-march-1-daily-index/2012030153640">RP Data-Rismark Home Value Indexes</a> indicate that the typical Sydney house costs $620,000 but the standard unit is $488,000. So while houses cost only 6% more than units to rent, they cost 27% more to buy.  
In Melbourne the average house costs 20% more than the typical unit, but there no difference in the rent. In Brisbane, houses cost 33% more than units but the rental differential is only 4%.  
That’s an equation that should make investors sit up straight and pay attention. Units are much cheaper and the rental returns, on average, are much better.  
It’s clear from the planning decisions coming out of state governments around Australia that our political leaders want more of their population growth to be absorbed through infill development, in preference to growing the city footprint through house-and-land urban sprawl.  
We’re seeing councils in our major cities allowing greater densities to be developed in suburbs currently dominated by standalone houses.  
There’s no doubt that the near future holds a vision of more residents living in units and townhouses, preferably close to public transport nodes.  
And, increasingly, this will change the parameters for investing in our major cities.
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au">hotspotting.com.au</a>
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terryryder-YECXbqmri2

Times are changing and apartments are on the rise

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Population growth is an important determinant of housing demand – to put it simply, more people generally equates to a larger requirement for new homes.
I'd like to look at the broad national population growth figures, which were recently released by the Australian Bureau of Statistics, and at the September quarter population change data in more detail, focusing on the state-by-state results.

At a national level, population growth is fuelled by two factors: the rate of natural increase (births minus deaths) and overseas migration.  At a state level interstate migration is also a factor in population growth.

On a state-by-state basis <a href="?option=com_googlesearch_cse&amp;q=population" target="_blank">population</a> growth has been strongest in absolute terms within Victoria (94,837), Queensland (91,389), New South Wales (86,033) and Western Australia (81,694).
These four states have accounted for 92.5% of total population growth over the 12 months to September 2012.
 Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/kusherapril16one.gif"><img src="/images/stories/2013/04/kusherapril16onethumb.gif"></a>

Across the individual states, only Queensland (12,104), Western Australia (11,091), Victoria (1,296) and the Australian Capital Territory (755) have seen a net gain in population from interstate migrants (i.e. more residents arrived over the state/territory border than left for other states/territories).
Over the year to September 2012, the net number of interstate migrants arriving in Queensland was at its highest level since the 12 months to December 2009 and Western Australia’s net interstate migration figure was its highest level on record since the time series began in June 1982.
On the other hand, 18,448 more residents left New South Wales than arrived over the year followed by 2,748 net residents leaving Tasmania, 2,541 net residents left South Australia and 1,509 net residents left the Northern Territory.
 Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/kusherapril16two.gif"><img src="/images/stories/2013/04/kusherapril16twothumb.gif"></a>

As the above chart shows, the resource states are currently the largest beneficiaries of interstate migrants from other states.
 
<hr class="system-pagebreak">
Queensland has always been a significant beneficiary of population growth from other states, particularly New South Wales and Victoria, however, the rise in prominence of Western Australia is a relatively new feature.
This is likely to be a result of the resources sector boom which has occurred in that state over recent years.
 Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/kusherapril16three.gif"><img src="/images/stories/2013/04/kusherapril16threethumb.gif"></a>

The other side of the equation of course is overseas migration and which states reap the benefits of these new arrivals.
Over the past 12 months, 91.8% of all overseas migrants or 209,403 persons have settled in one of New South Wales (59,432), Victoria (53,996), Western Australia (50,613) and Queensland (45,362).
 Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/kusherapril16four.gif"><img src="/images/stories/2013/04/kusherapril16fourthumb.gif"></a>

As the above graph shows, most overseas migrants to Australia have initially settled in either New South Wales or Victoria and based on this you can assume they tend to settle in Sydney or Melbourne.
Given this, the benefits (and costs) of overseas migration are not being felt right across the country but are mainly concentrated in the major population centres of New South Wales, Victoria , Queensland and Western Australia.

Based on all these figures, outside of New South Wales, those states which tend to lose residents to other states (or see a low inflow) also fail to attract a significant proportion of new arrivals to the country.
This has repercussions for the overall economic performance of these states as they lose many of their young and educated to the larger states which arguably have more abundant education and job opportunities.
On the other hand, a number of these states and territories are also failing to attract overseas migrants.
The reason being that these migrants also tend to be more attracted to the areas with better educational facilities and job prospects.
Perhaps some of the smaller states should be looking at ways that they can better attract new migrants to their state, surely factors such as cheaper housing in states like South Australia and Tasmania could be an attractive lure but there must also be the jobs and wages available to both attract and then keep these new settlers.
It may also help to stem the flow of residents that leave these smaller states.
Cameron Kusher is senior research analyst at <a href="https://www.rpdata.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
 
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ckusher-ujnxiKuFQs

QLD and WA attracting New South Welshmen in droves: RP Data

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Melbourne continues to be the tearaway city when it comes to new listings, although there's been a flurry of new vendors test the Darwin market. Melbourne's new listings total 7918 while 290 represents a similiar boost in the top end. The only other city with an annual increase in total listings over the past year is Adelaide's mild increase, according to<a href="https://www.propertyvalue.com.au/" target="_blank"> RP Data</a>.
<img alt="rpdatacapitalsapril15one" src="/images/stories/2013/04/rpdatacapitalsapril15one.gif" width="470" height="271">
Click to enlarge
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These results are calculated across properties that have been advertised for sale over the past 28 days.
A new listing is one which has not been advertised for sale over the past six months, total listings include new listings and properties which have been previously advertised.
*Please note that rpdata is currently updating the ACT listings database, as a result the ACT figures have been withheld. 
 
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po-LsXgBTHBmX

No stopping Melbourne's new listings: RP Data 

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Election years are always fascinating given it's fair to say that we live in a society based on excuses so let’s wait and see what happens on September 14.
What has become more than obvious post-GFC is that buyers’ profiling has changed dramatically given we have fewer buyers in the top-end markets.
This then becomes indicative when you do a comparative analysis of the market (which we do weekly) where houses in Mosman are thus far in 2013 on average 25% down on last year.
We were doing a session with our <a target="_blank" href="https://www.activategrowth.com.au/index">real estate coach Daniel Spencer</a> this week where we were profiling the Mosman buyers who were placed in four categories – strongest to weakest.
Out of Area – (Passive) – (the strongest). This category is represented by overseas buyers and out of area that have made the decision to buy now and are not persuaded by negative property press.
Local Buyers – (Passive) – not actively looking however prepared to engage immediately should the right property become available. They have specific requirements namely style and location.
Out of Area – (Active) – have been monitoring the market for some time inspecting all properties that meet their buying criteria – have looked at multiple properties.
Local Buyers – (Active) – prior to the GFC our strongest buyer profile however they have experienced first-hand declining markets which has resonated in their overall market confidence – to the extent that they are buyers today only at a price. Previously the number one buyers in this demographic were merchant bankers – which explains why this category has moved from first to last.
The GFC has brought about serious lifestyle and household changes – mainly due to significant changes in the business environment where today the vast majority are working more for less.
For example, in NSW it was reported late last year that the richest suburbs (based on incomes) are <a target="_blank" href="/news">Double Bay</a> – <a target="_blank" href="/news">Bellevue Hill</a> recording an average income of $129,116. <a target="_blank" href="/news">Mosman</a> was next with $126,956, <a target="_blank" href="/news">Hunters Hill</a> – <a target="_blank" href="/news">Woolwich</a> on $123,956 and <a target="_blank" href="/news">Woollahra</a> on $123,869.
The number of bankruptcies in the March quarter of 2013 was the lowest recorded in a quarter since 1996. It is interesting to note that the <a href="/news">Fairfield</a> – <a href="/news">Liverpool</a> suburbs are the worst performing in NSW with a 30-day plus delinquency rate of 2.44% which equates to 16 out of 1,000 borrowers in arrears. Mosman has one of the lowest delinquency rates in Australia which will surprise many.
Australian Property Monitors released last week its Housing Market Report – Australian Capital Cities and Gold Coast residential property market.
 
<hr class="system-pagebreak">
Sydney
The Sydney market has commenced 2013 with increased buyer and seller activity.
Weekend auction clearance rates have been impressive, tracking nearly 20% higher than those recorded over the same period last year.
Early season clearance rates have been similar to those recorded during the boom period of autumn 2010 and are a positive indication of rising market confidence. Signs are also emerging of a more generalised lift in Sydney buyer activity, with increased sales in the prestige market.
<img src="/images/stories/2013/04/simeonapril15one.jpg" width="470" height="444" alt="simeonapril15one">
<img src="/images/stories/2013/04/simeonapril15two.jpg" width="470" height="458" alt="simeonapril15two">
Whilst RWM did post the two highest top-end sales for 2013 in the Mosman market last week the market still has a long way to go to returning to the halcyon days of yesteryear.
 
<hr class="system-pagebreak">
What is interesting for property markets is actually profiling the buyers – the two top-end sales this week went to Passive Local Buyers.
We are the only Mosman real estate agency profiling buyers. What many are asking (without knowledge) is ‘will the Local–Active buyers make a return?’
Greatly assisting real estate markets is anecdotal evidence that clearly shows declining listings with many vendors opting to delay entering the market until after the federal election on September 14.
The only problem with that strategy is the uncertainty of stock-rush given this strategy could fail due to a surging oversupply.
Despite conflicting opinions consumer confidence still remains the elephant in the room – evidenced with this week’s announcement <a title="jobless rate jumps as economy sheds jobs. " href="https://www.smh.com.au/business/the-economy/jobless-rate-jumps-as-economy-sheds-jobs-20130411-2hmxa" target="_blank">jobless rate jumps as economy sheds jobs.</a>
Australia’s manufacturing industry will continue to decline then disappear as we are no longer competitive. The federal government will stop propping it up as it is a lost cause given we can’t get close to competing with Asian markets.
I would suggest we pay absolutely no attention to property speculation that property markets are rising, simply because it’s a lazy analogy using mammoth markets not individual niche markets. Whilst <a title="caught short: housing sceptics proved wrong" href="https://www.afr.com/p/blogs/christopher_joye/caught_short_housing_sceptics_proved_9N9nULnQzqQtqDVjLjABJJ" target="_blank">caught short: housing sceptics proved wrong</a> promoting a façade of good times ahead is in my view premature and irresponsible.
What's happening in Perth markets has absolutely no relevance to individual Sydney markets.
When markets boom it starts at the top-end and that is not about to start anytime soon.
This time around it is the lower end that is booming. Last week, I wrote that last year Australian companies were involved in 1,037 deals worth $US65.46 billion, a marked decline from 2007, in the peak of the equities boom.
In that year, companies locked in $214.7 billion in mergers and acquisitions in 2,267 deals. In 2013 all reports are that this figure will decline further so top – end markets won’t be booming.
Simply put: they will remain in a holding pattern for quite some time, which explains why we spend so much time profiling the buyers.
Robert Simeon is a director of <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News" style="font-size: 14px;">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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robertsimeon-hRNTwJyXkQ

Big changes in buyer profiles

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The idea that demographically we’re becoming a nation of downsizers is somewhat debatable.
Certainly, affordability constraints are having an effect on the property choice for young home-buying couples, but it doesn’t stop the flow of regular articles suggesting “families are increasingly flocking to high-rise apartments” which was all but stated as fact in a recent ‘ibisword’ newsletter – not to mention mainstream columns regularly delivered through the national press assuring readers we’re all becoming a nation of ‘happy strata dwellers.’
Whilst there’s no doubt we’ll see a future shift into apartment living as density in the capital cities continues to increase, the demographic most are concentrated on are our elderly downsizers. This is the great 'tsunami' many expect will tip not only the Australian property market over the edge with a flood of supply, but also that of the UK and USA – marring any recovery they’ve had to date.
We’re told our baby boomer retirees will all be downsizing en masse - so it’s worth investigating if this is correct, and if so, asking if the relative boom of inner city apartment stock currently being constructed in our inner suburban localities – the majority of which consist of four stories or more and are principally located in both Melbourne and Sydney – is going to suit their needs?
Proportionally we’re growing older as a nation – census data tells us the number of 20 to 44-year-olds has expanded on average by 4.6% per year in the five-year period leading up to the census – however by 2020 it’s expected to slow to 1.2% per annum (a trend clearly demonstrated by the United Nations World Population pyramid which extrapolates the data out to 2050.)
<img alt="cashmoreapril15one" height="238" width="470" src="/images/stories/2013/04/cashmoreapril15one.jpg">
By the time we get to 2051 the elderly population over 65 will have doubled from the figures recorded in 2004, and over 85 year olds will have quadrupled. These are the ‘baby boomers’ who hold roughly half of Australia’s housing stock – a mix of owner-occupied dwellings and investments.
The first group of 65-year-old “baby boomers” started their retirement in 2011 and over the next 20 years, the others will follow suit.  It’s broadly assumed by property commentators and urban policy makers that most will be looking to downsize. With unit and apartment approvals running at an all time high it’s taken for granted that our elderly downsizers will increasingly migrate towards these inner city developments becoming part of the ‘happy strata dwellers’ I cite above.
It’s perhaps worthwhile looking at the definition of downsizing before investigating where the bulk of the next decade’s retirees will head. Whilst moving to a smaller dwelling is what most assume as the definition of downsizing, it can equally encapsulate the demographic that simply locate into cheaper accommodation - perhaps not negotiating on interior space, but moving to an area where they can purchase a similar sized home for less expense.
The only commonality between the two seems to be ‘land size’ – few are able to maintain lavish gardens and therefore opt for ‘low maintenance.’
Late last year the <a href="https://www.ahuri.edu.au/" target="_blank">Australian Housing and Urban Research Institute</a> produced a paper entitled ‘Downsizing amongst older Australians’ – which attempted to address preliminary questions that hang over the accommodation needs of older Australians through an number of surveys, lengthy interviews, community meetings and ‘clues’ contained in ABS data.
Whilst they were able to recognise some broad trends contained in the census results, the research noted a severe lack of ABS information from which to assess the lifestyle needs of downsizers - therefore, despite the growing urgency on urban policy makers to provide adequate accommodation to meet ‘expected’ demand, we have scant details regarding preference of property type, price, and location an elderly retiree would require to successfully navigate the process. Hence why there are now calls for the census questionnaire to address the topic in detail.
Albeit, it was unsurprisingly noted from the ABS data available, that increasing numbers are leaning towards lower density dwellings as they move into their twilight years, and there is also evidence to suggest most retirees who moved in the five-year census interim stayed in the same SD area.  However, without deeper analysis there’s little to suggest apartment living is the preferable option.
The preliminary results from the AHURI survey were presented by Bruce Judd, Catherine Bridge, Hazel Easthope and Edgar Liu at the Australian Housing Researchers Conference in Fremantle earlier this year – the full power point is available <a href="https://www.be.unsw.edu.au/sites/default/files/upload/pdf/cityfutures/publications/presentations/Judd_AHRC_Perth.pdf" target="_blank">here</a> – however I’ll outline the results below.
 
<hr class="system-pagebreak">
From the 2815 ‘older people’ surveyed, only 43% had ‘downsized’ and although it’s generally assumed the predominant reason for downsizing would be monetary their survey revealed the biggest motivation for a move later in life is a ‘life event’ such as illness or the children leaving home. Financial gain as a motivator lagged behind ‘death of a partner,’ and this falls in line with previous literature which notes a ‘reluctance to release capital unless ‘non housing wealth’ was close to being exhausted.’  (Faulkner, 2007).
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<a href="/images/stories/2013/04/cashmoreapril15two.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/04/cashmoreapril15twothumb.gif"></a>
With this in mind, it’s no surprise that their preliminary research paper also outlines a common trend for older residents to ‘stay put’ indicating many don’t want to move if they can avoid it.
Downsizing from a four-bedroom house to a two-bedroom unit, for example, would not just compromise living space, but also force the mover to ‘downsize’ their possessions – some items of which no doubt have sentimental attachment and a lifetime’s worth of memories attached.
Furthermore, in a three-bedroom home, children and visitors can come to stay – in a unit, it’s harder to entertain – not to mention negative financial and psychological stress that dissuades older families from upping sticks – such as stamp duty costs and selling fees and the general physical effort.  For these reasons (and others,) it’s well recognised that the majority of older people continue to live in suburban dwellings with three or more bedrooms.
In line with the issues of unexpected expense, one of the participants surveyed commented:
“There are other expenses in selling houses – (Stamp) Duty, Agent’s fees and so on – and then removal fees. ... I paid a monthly fee while the furniture was in storage. So, than was another cost..I wasn’t really prepared for.” (Male, 60-64, single, owner, regional, NSW)
From those who had downsized, there was certainly evidence of a proportional move into apartments – albeit, the larger proportion continue to reside in a separate house.
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<hr class="system-pagebreak">
From those who did downsize, the predominant difficulty seemed to be sourcing appropriate accommodation – with comments such as:
“We're not alone in saying, well where's this suitable smaller place? …That type of dwelling…that's being built within retirement villages where they're two or three bedrooms; they're really quite well set up and…well designed. But their problem is, that's where they are, in a retirement village often on edges of suburbs.” (Female, 60-64, couple, owner, urban, VIC)
And:
“…We'd been looking for about 10 years… for…a block about this size, a dwelling rather like this that we could buy on our own. We couldn't find such a thing. Doesn't exist. We looked as far up the central coast. So…what this retirement village offers was the next best thing.” 
The above data falls in line with my own experience working with elderly downsizers. Most are understandably fussy in their accommodation needs – affordability is a factor – modern apartment owner corporation fees are not modest by any means, and most I deal with, would prefer a small villa unit or town residence to an apartment.
Evidently, in our ‘squeeze as many on the block as possible’ culture, properties fitting the description above are not readily available.  Inner city suburbs lack the space, and outer suburban localities where more appropriate accommodation exists, often lack public transport and adequate infrastructure to meet demand.
Therefore, although it’s assumed there’ll be a downsizer tsunami into the apartment market – there is little evidence to suggest as such – and for those who do downsize, finding suitable stock can present significant difficulties. It’s probably for this reason that high-rise apartments continue to experience inflated vacancy rates coupled with a large proportion of student renters, whilst elderly ‘empty nesters’ choose to stay put.
The AHURI research outlined that between the five-year census interim period, only “one quarter of older Australians 65+ moved,” only 43% of the survey respondents who had moved since turning 50 had downsized, most moved to detached dwellings, with only 24% moving into flat’s or apartments.
Meanwhile, the home  buyer duel income property shoppers, who make up Australia’s largest buyer demographic would no doubt appreciate an extra supply of inner and middle suburban three and four-bedroom houses which are held by the downsizing population – just as first-home buyers would benefit from an increased supply of ‘starter’ one and two-bedroom low-rise established apartments, which unlike high-rise dwellings give a first-home buyer an increased ability to obtain financial approval with lower owners corporation fees, but which have been largely ‘soaked up’ by investors taking advantage of negative gearing tax benefits or purchasing as part of a diversified SMSF portfolio.
It’s clear the property needs of home buyers must be addressed by urban planners if we’re to free up the market stagnation which will increasingly affect city dwellers as the population expands.
Adequately funding infrastructure for our fringe suburbs to boost the construction sector as well as reducing hefty development overlays which are passed onto the buyer, addressing policies to constrain investor and foreign acquisition into the established sector which does little to increase supply, not to mention the recent trend of land banking vacant blocks which could be subdivided into homes ideally suited to both the downsizer, and young family buying demographic.
All of the above have played their part in disproportionally inflating inner and middle ring house prices, stagnating the market and reducing the options for first home buyers who are told to migrate some 30km from the CBD into a ‘nether nether land’ in order to purchase a house in which they can settle for a period of time and adequately raise a family.
Until such a time, we can expect more pain ahead in a property market that fails to cater for home buyers and largely benefits investors.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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There's little evidence to suggest a downsizing rush

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Landlords can expect rents to rise at the same pace as house prices over the next two years, but with wide variance across state markets with WA the strongest and Victoria the weakest rental market.
Overall the expectations are for slightly stronger rental growth over the next two years than forecast three months ago.
Rents are forecast to rise 3.6% over the next two years <a target="_blank" href="https://www.propertyobserver.com.au/residential/house-prices-to-rise-36-over-next-two-years-as-sentiment-rebounds-broadly-nab-index/2013041160305?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">matching house price growth expectations,</a> according to the March quarter NAB residential property survey.
Rental expectations for the next 12 months have risen slightly since the December quarter survey.
Survey respondents – a pool of 300 mainly estate agents, property owners and investors – now anticipate rents to rise 2.6% to March 2014 compared with previous expectations of a 2% year-on-year rise.
As with house price expectations, rental growth is likely to be strongest in WA with a rise of 4.2% forecast.
In South Australia/Northern Territory, expectations were revised up sharply to 3.9% (compared with a small decline of 0.5% previously).
However, report author and NAB chief economist Alan Oster, notes that “this series is generally more volatile because of a smaller sample size.
“Upward revisions were also apparent in all other states, led by Queensland (2.4% from 0.6% previously) and NSW (2.4% from 1% previously).
“Rental expectations for the next year were weakest in Victoria at 1.6%, but marginally higher than 1.4% forecast in the December quarter,” Oster says.
Over the next two years, national rents are forecast to grow 3.6%, up slightly from an earlier forecast of a 3.3% rise, “reflecting more bullish results from SA/NT (5.2% from 1.1% previously) and NSW (3.4% from 3% previously).
Expectations were broadly unchanged in WA (5.3%) and Victoria (2.6%), but were downgraded slightly in Queensland (3.3% from 3.6% previously).
The survey found that rental markets are still “generally tight across the country” with national rents growing 1% in the first quarter of 2013.
The rental market was strongest in WA, where rents grew 2.4% in the March quarter compared with 1.9% in the December 2012 quarter “as the resource led surge in population growth supports strong tenant demand”.
Rental growth was slowest in Victoria at 0.3% where the residential vacancy rate was also the highest in the country in February according to SQM Research data, but this was also the first positive result since the December 2011 quarter.
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Rental growth to keep pace with house price growth over next two years led by WA: NAB survey

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Many Australians dream of owning a business, and I am approached often for my opinions on the matter. Here’s a few questions to ask yourself before becoming a business owner:
What is the demand?
A business can only succeed if it meets a demand. So your first job is to ascertain the aggregate demand for your goods and services. You can get information from business intelligence services, government agencies and industry bodies. You must understand demand before opening your doors.
What do I bring?
Can you do the same as your competition, cheaper or faster or better? Will you work for less, do you have better technology, better employees, newer systems, greater innovation etc? Are you meeting excess demand with a me-too idea? All successful business people know what they bring to the market and they capitalise on it. So, you should know exactly why the market will deal with you and not your competitors. Know what makes you different and what it’s worth.
Do I have the money?
There are well defined cash flow dynamics in business – they operate around the average billing cycles and payment cycles. You should be able to chart the peaks and troughs of your cash flow so you can match outgoings to payment cycles and not run out of money. Having charted these dynamics, you can work out when and why you will need outside capital, in the form of a bank loan or other facility. Credit should always be planned in advance and you can get an accountant to do this as part of your planning if you don’t fully understand it. The worst position is to reach a critical point where you drop prices to push sales, thus reducing your profit margin. Advanced planning for capital avoids this disastrous spiral.
Can I build a team?
The idea of the business owner being a lone genius, doing all the thinking, is a dangerous fantasy. All successful business owners have a team of people who can add to their business goals. And these people must be rewarded and given incentives to keep them going. In general, a business owner first needs excellent people to cover the finance, operations and sales roles. That leaves you as the leader.
Am I a business owner?
Ask yourself: can I rise early, work myself to a stand still, spend all night doing paperwork and never take a holiday? Can I carry every decision on my own shoulders? Can I live a life when I’m never off the clock? If you prefer life to be predictable and you like a 40-hour week, perhaps proprietorship is not for you.
The business life is a wonderful challenge and a great way to contribute to society. However, I would advise anyone wanting to go into business to start with one simple rule: know your purpose. Business can be a hard, lonely, exhausting road and you’ll need to know why you’re doing this before you start the journey.
Good luck.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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