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>
Median house values lifted almost 1% over February with Perth and its accompanying WA country market the strongest performers, according to the latest housing data from Residex.
The February figures suggest the housing market is gathering steady momentum with Residex recording a 0.96% gain in February following a 0.61% quarterly gain.
“Things in the financial world and the Australian housing market are looking fine and I am pleased to be delivering a positive newsletter,” writes Residex chief executive John Edwards.
Edwards pointed to the recent gains in the <a target="_blank" href="/companies/westpac">Westpac</a> Melbourne Institute Index in the March reading, following a 7.7% jump in February, the fifth consecutive month that it has registered above 100.
“Much of the population is feeling positive about the current situation.
“The housing market is presenting growth on an Australia-wide basis and the trend is moving in an upward direction,” he says.
Over the past 12 months Perth house values are up 3% to a median of $493,000.
The Perth unit market has been particularly strong, up by 11.3% over the past 12 months to a median value of $425,500.
WA country house values also lifted, up 2.24% over February and 3% over the past year to a median of $344,500.
The Perth housing market also delivered a boost to property investors with an 8% rise in weekly house rents to $470 per week and a 11.4% gain in unit rents to $440 per week.
Rents are rising on the back of declining listings and a very tight vacancy rate.
The Real Estate Institute of Western Australia (REIWA) recorded a Perth metropolitan vacancy rate of 1.9% for the January 2013 quarter with an even tighter 1.3% vacancy rate for the unit market.
The REIWA noted the diminishing level of listings in metropolitan Perth in the wake of strong population growth and improving consumer confidence, which is putting “upward price pressure and increased demand for homes”.
 
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REIWA president David Airey noted that properties listed for sale slipped to just 8,429 in March, down from 14,092 at the same time last year.
“Agents are reporting an increasing shortage of properties in popular price ranges especially around the median of $500,000," said Airey.
“REIWA data suggests that listing stock is trending downwards on the back of strong sales turnover and these properties are not being replaced with enough new listings to meet demand.
“Now that the market appears to have turned in favour of sellers, many may be holding back with the expectation of a better price in the months ahead. Until more sellers list their properties and until we get more new homes onto the market from builders, then competition from buyers will put pressure on prices,” Airey said.
The Residex figures show that Adelaide was the next strongest capital city performer after Perth in February with a 0.98% gain in its median value of its houses to $392.000.
Sydney recorded a modest 0.66% rise in its median house value to $682,500 with values up 3.88% over the past month
Melbourne recorded a modest 0.28% gain with a median house value of $556,500 with house values almost unchanged on a year ago.
Brisbane house values retreated 1.42% over February to a median of $433,000 but are up 1.41% for the quarter and 2.57% over the past 12 months.
Year-on-year Darwin stands head and shoulders as the top performing market with a 9.43% rise in its median house values to $525,000 – though there was a small 0.84% correction in February.
Darwin house rents are up 11.5% to a median of $580 per week and offers capital city investors the highest rental yield of 5.78%.
Darwin units offer a yield of 6.09% also the highest across capital cities.
Spurred on by the wealth of mining and LNG projects, the wider Northern Territory housing market continues to rise with house values up 7.9% over the past 12 months and a median value of $489,000.
Overall, the unit market tread water over February as it has over the past quarter with unit values up just 1.1% over the past 12 months with a national median unit value of $398,000.
Brisbane, Melbourne and Sydney all recorded small gains in unit prices in February with Perth the standout market over the past 12 months.
Hobart unit price are down nearly 10% over the past 12 months.
<a target="_blank" href="https://blog.residex.com.au/wp-content/uploads/2013/03/Capital-City-Property-Market-Statistics-February-2013.jpg">Click here for the full Residex breakdown for capital city and country markets over February.</a>
Photo courtesy of Flickr.
 
 
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lschlesinger-FZcF9M3vE6

Perth leads modest house value gains in February: Residex

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Hong Kong-headquartered private equity firm Barings Private Equity Asia is being mooted as a possible bidder for all or part of the Australand business.
The firm has $5 billion under management with offices in Shanghai, Singapore, Beijing and Mumbai and was once part of Dutch banking giant ING.
It is understood to be considering acquiring just the residential business of Australand or putting in a bid for the entire company, including its industrial, retail and office businesses and assets.
Barings Private Equity Asia describes its activities as running “a pan-Asian investment program, specialising in mid-market companies requiring capital for expansion, recapitalisation or acquisitions”.
The firm is said to be more interested in Australand’s residential unit, which could generate returns in excess of 15% with premium Australand commercial and industrial assets expected to generate a smaller return, according to a report in the Australian Financial Review quoting “senior sources”.
Australand’s main shareholder, Singapore-based CapitaLand, which controls 59% of Australand, <a target="_blank" href="https://www.propertyobserver.com.au/news/majority-shareholder-capitaland-to-review-its-investment-in-takeover-target-australand/2013011058723">said in January</a> it was reviewing its investment in the Australian developer as it focuses its efforts on its China and Singapore businesses.
However, it is believed to strongly favour selling the entire business rather than selling it piecemeal.
<a target="_blank" href="https://www.propertyobserver.com.au/industry-news/several-parties-seek-australand-property-group-stake/2013030559720">In March</a> Australand said in an ASX statement that “several parties have expressed an interest in either the whole or parts of the Australand business.”
A $7 billion approach <a target="_blank" href="/news">by Mirvac</a> for Australand’s residential business has also been mooted, but no formal bid has yet been acknowledged by Australand.
A $3 billion bid by the GPT Group for Australand’s commercial and industrial businesses at a $140 million premium to their book value was rejected in December.
If a suitable bidder for Australand cannot be found, CapitaLand may also consider selling its shareholding via a block trade, an off-market trade allowed for share holdings of significant size in specified contracts.
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Asian private equity firm emerges as possible Australand buyer: reports

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It was the year when online retailing grew up. Though the industry has had the same debate for years, the last year has seen a huge resurgence in the way companies both large and small are dealing with digital.
A decade after shutting down its original digital strategy, David Jones has come back with a vengeance. The retailer, along with department store rival Myer, has spent tens of millions of dollars in buffing up its online presence.
But it isn’t just the department stores getting their digital chops dirty. <a href="companies/woolworths" target="_blank">Woolworths</a> and Wesfarmers have started giving regular updates on online sales in their financial updates. Chains like Speciality Retail and Country Road are reporting sales increases, or actual revenue figures from digital sources.
Even though Gerry Harvey may still decry the use of the internet, <a href="https://www.propertyobserver.com.au/retail/how-gerry-harvey-plans-to-turn-harvey-norman-into-australia-s-biggest-retailer/2013020659202" target="_blank">Harvey Norman</a> is turning over several million dollars.
That’s not forgetting pure play online retailers like Kogan, Shoes of Prey, or Appliances Online. These companies, like StyleTread, are not only making a huge stamp on the retail consumer space, but they’re demonstrating retail is able to attract serious venture capital money.
As Telsyte senior research manager Sam Yip says, it’s been a “very big year of change”.
“There have been players early in the space that have dropped out, and a lot of bricks-and-mortar retailers are doing more.”
“We’re not hearing any more Gerry Harvey stories; everyone acknowledges that this is the channel to be operating in.”
The debate over the GST threshold has largely disappeared, although the industry at large is still hopeful of some government relief. At the very least, most have accepted a 10% change in price isn’t going to help much of anyone. The smarter retailers are simply getting on with the job.
If there’s any evidence the online retail revolution is taking hold, look no further than Australia Post’s reaction. It is investing more money in parcel lockers and out-of-hours delivery services to cater for the huge amount of parcels being delivered.
So much so, the majority of its revenue is now being made from these types of parcel deliveries.
Experts believe online retail in Australia has tipped over the top of the hill, so to speak. The hard work is being done already. Now, Yip argues, the next challenge is to transition that success to platforms like mobile.
“The other big challenge here is around delivery. In the past year we’ve seen horror stories of where logistics have gone wrong, with people getting wrong orders all the time.”
“There’s a need to really refine that back-end logistics functionality.”
As in previous years, we’ve created a list based on a mixture of different metrics, including traffic data from Experian, revenue, and any sort of noteworthy achievement. Local divisions of global companies, such as Apple and Amazon, are excluded, along with auction sites such as eBay and Gumtree.
The list is not presented in any particular order.
The top 20 online retailers of 2013:
<h3>1. Kogan</h3>
If not the most popular, Kogan is one of the best-known homegrown online retailers in Australia. Mostly thanks to founder and CEO Ruslan Kogan’s insistence on putting himself and his business in the news through quirky – and sometimes weird – comments and campaigns. More recently the <a target="_blank" href="https://www.smartcompany.com.au/retail/050178-kogan-slugs-customers-who-use-antiquated-internet-explorer-7-browser-with-a-6-8-tax">Internet Explorer tax</a> got a mention in several international news outlets.
It’s difficult not to be impressed by Kogan’s reach. After shipping a single container of televisions five years ago, Kogan has transformed into a $250 million business with more on the way.
Spars with Gerry Harvey aside, Kogan has maintained a solid footing with Ruslan saying he’s “happy to be everybody’s first choice for a second television”. With a view to growing into a billion-dollar business, and expansion into services like mobile, Kogan will be around for a while yet.
<h3>2. Milan Direct</h3>
The other half of Ruslan Kogan’s online empire, Milan Direct was initially an odd proposition. Selling furniture online back in 2007 wasn’t done very much in Australia, if at all. But Dean Ramler and Kogan have managed to turn the business into a $12 million powerhouse.
The company’s success has spawned some eager competitors. But with growth of 100% last year, and international expansion ahead, Milan Direct  seems set to hold on to its strong market position for a while.
<h3>3. Catch of the Day</h3>
Perhaps the largest online retail success story in Australia, Catch of the Day continues to grow from strength to strength. After starting as an eBay business, Gabby and Hezi Leibovich have managed to transform the company into a $350 million powerhouse, complete with funding from one James Packer.
Part of the success of the Catch Group can be attributed to its savvy expansion plans. Rather than start a business for every category, the team has been able to pick up start-ups and nurture success from there. After expanding into grocery and wine, it seems natural the business could continue to thrive – and all signs are pointing to an eventual float.
<h3>4. Booktopia</h3>
Given books are one of the cheapest things to buy from offshore retailers, it’s surprising any local online store has managed to create a thriving business. But Tony Nash at Booktopia has been able to do just that, on track to turn over $28 million in 2012-13.
There isn’t much complicated strategy here. A focus on clean design, good customer service management and an ever-present need to reduce shipping times has kept Booktopia at the top.
<h3>5. JB Hi-Fi</h3>
One of the larger businesses in Australia to actually understand how online retailing works; JB Hi-Fi is making a good name for itself online. With more than $37 million in digital revenue in the first half of the year alone, at 2% of total sales, the company is proving itself as a good example for dedicated bricks-and-mortar stores heading online.
In fact, JB Hi-Fi perhaps encapsulates what retailers need to be doing online. With the ability to check stock, “click and collect” and some pretty fast customer service, chief executive Terry Smart seems to be doing a good job in transforming the iconic business into a powerhouse online.
 
<hr class="system-pagebreak">
<h3>6. Officeworks</h3>
Office supplies are a boring topic, but Officeworks has at least managed to make the buying process as easy as it can. After all, office supplies are something you should be able to buy online instead of heading to a store.
The company won’t confirm how much revenue the business makes online, although reports indicate it could be anywhere up to $150 million, equivalent to 13-14% of revenue. That’s an astonishing figure for an office supplies store, but it does make sense – the company understands how people shop online.
Just like JB Hi-Fi, Officeworks shows it understands how to not only get people browsing on a site, but makes sure it knows how to capture their money.
<h3>7. Specialty Fashion</h3>
While the retail and fashion industries obviously haven’t been having the best time, Speciality Fashion has been working on its digital presence – and it’s doing very well.
The company, which operates the Millers, Katies and Crossroads brands, recorded $11.3 million in online revenue during the first half of the year, representing 3.6% of total value.
While it isn’t the biggest online retailer around, the fact the company has been so successful with its digital push – and is willing to disclose just how much money it makes online – is a good step in the right direction.
<h3>8. Big W</h3>
While the company doesn’t divulge how much of its revenue is made online, the popularity of Big W’s site indicates it could be making quite a lot of cash. In any case, Woolworths is giving DealsDirect a run for its money with the Big W online store, which doesn’t have many frills but is focused on simplicity of use and cheaper prices.
<h3>9. BrandsExclusive</h3>
BrandsExclusive has been at the forefront of the private shopping club scene in Australia. The business, which has mostly focused on fashion, quickly found a loyal user base and has been growing ever since.
Perhaps the company’s biggest success has been its ability to leverage demand for private shopping networks into cash. Even last year APN News &amp; Media announced a massive $36 million stake.
The business was aiming to turn over $70 million last year.
<h3>10. The Iconic</h3>
Although The Iconic isn’t one of the most established businesses around, and while it certainly isn’t divulging much with regard to revenue, it seems outrageous to leave the company off a list detailing the most important online retailers in Australia.
The business has made a huge splash in Australia with its bright marketing tactics, but it’s also gained a reputation for securing not only one $25 million funding round, but a second earlier this year.
The Iconic certainly has enough money to make a dent on the online retail market. It remains to be seen whether that success will continue.
<h3>11. Shoes of Prey</h3>
The customisable shoe retailer has made quite a name for itself. With plenty of attention from television shows, and some inadvertent celebrity endorsements, Shoes of Prey has ended up as one of the hottest brands in Australian retail.
Some funding hasn’t hurt, either. The company has taken money not only from Atlassian co-founder Mike Cannon-Brookes, but TechCrunch founder Mike Arrington. A partnership with David Jones is sure to increase the company’s reputation among the bricks-and-mortar elite.
Although revenue isn’t the highest in the online space, the company has definitely made an impression. It won’t be going away soon.
<h3>12. DealsDirect</h3>
The largest online department store, DealsDirect started as an eBay business. (Curiously, so did the other major retailer on the list – Catch of the Day).
The business has been expanding in recent years, buying a series of smaller retail-based businesses. Founder Paul Greenberg has a keen eye for businesses, and the people who run them. Although DealsDirect has been a success due its size, he’s been careful not to pack the operation with too much fat.
Greenberg is cagey on revenue, but the business is doing well over $100 million.
<h3>13. Get Wines Direct</h3>
The internet has triggered a boom for liquor sales, with plenty of retailers such as Woolworths, with its Dan Murphy’s brand. Get Wines Direct is topping the competition, making a name for itself as the country’s biggest online wine dealer.
Founder and chief executive Tony Sells has been busily promoting the company lately with partnerships and other deals. And it’s working – the company is turning over more than $50 million.
<h3>14. Groupon</h3>
While the group buying market has certainly fallen from its height, Groupon has kept a stronghold on the local industry. It’s the biggest player, (although Catch of the Day’s Scoopon follows closely behind), and has managed to maintain a foothold in an otherwise tumultuous market.
There’s no denying the pressure facing its parent company, but for now, at least, Groupon has shown group buying is truly well and alive in Australia.
<h3>15. Ozsale</h3>
The other half of Australia’s private shopping scene, Ozsale has been just as successful in establishing a dominant presence in the local retail sector.
Founded by Jamie Jackson, the company has succeeded in building a solid reputation. It’s been a busy year for the company, too, as it snapped up competitor BuyInvite back in June 2012.
The company isn’t slowing down plans, announcing earlier this year it’s gearing up for an IPO.
 
<hr class="system-pagebreak">
<h3>16. StyleTread</h3>
Another online shoe business, StyleTread is all about shipping. When the company first launched, SmartCompany spoke to the founders – who said shipping was their number one priority. The business raised $4 million back in 2011 from Nine Entertainment, and <a target="_blank" href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;ved=0CDEQFjAA&amp;url=http%3A%2F%2Fwww.smartcompany.com.au%2Fretail%2F048963-online-retailer-styletread-raises-12m-in-funding-round&amp;ei=9-9HUc3uOOSoiAfHjoCIBg&amp;usg=AFQjCNFOjJp47frVXS5A5HDj49Mv4YUoTA&amp;sig2=HZ_rkfrJS391matxRkQ1zw&amp;bvm=bv.43828540,d.dGY" rel="nofollow">then won $12 million</a> from more investors last year.
It’s a good strategy, given how frustrated Australian shoppers have been for some decent delivery times. As a result, StyleTread has continued to grow.
<h3>17. Dick Smith</h3>
Placing Dick Smith on a list of the country’s top retailers may be a controversial move given what’s happened to the company. But despite Dick Smith’s downfall, it still maintains an extremely popular online presence.
Why? Because it has the basics down pat. The ability to reserve products, and check individual stores for stock levels is a must. It’s simply a well-designed website, the importance of which can never be overstated.
<h3>18. Appliances Online</h3>
It was only a few years ago the retail industry felt confident in saying people would never buy large, bulky goods over the internet. The arrogance with which that statement was made has all but washed away, and John Winning’s Appliances Online is enjoying the fallout.
At $20 million a year, Appliances Online is on the smaller side but no less important. The company’s success shows Australians are willing to buy anything over the internet, as long as they’re given enough detail and enough confidence in the seller.
While it might be a while before the practice becomes mainstream, Winning and his Appliances Online team have achieved what many thought would be impossible – and have made money at the same time.
<h3>19. EB Games</h3>
Although plenty of consumers are heading offshore to source cheaper video games, EB Games has managed to maintain a strong foothold in the local sector. A solid website, a savvy social media team, and a thinning market thanks to the collapse of GAME, have all ensured the online division of EB Games is doing just fine.
<h3>20. Westfield</h3>
It’s been a couple of years now since the shopping giant announced it would create its own online hub for shopping digitally. Now, it’s one of the most popular online retail destinations in the country.
It was a smart idea. The site combines deals from various stores located in Westfield shopping centres. A savvy website, along with the ability for free delivery and returns in-store or online, has kept Westfield in a strong position online.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
 
 
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pmcstafford-pr9eMARWoN

Australia's top 20 online retailers for 2013

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Private investors were the most active buyers of retail property in 2012, acquiring more than a third (36%) of the $3.7 billion of retail property that changed hands in Australia over the calendar year.
Institutions represented by funds, trusts and syndicates accounted for a combined 32% of purchasing activity while foreign investors were also active acquiring 24% of retail property.
<img alt="chartoftheweekmarch27one" height="838" width="400" src="/images/stories/2013/03/chartoftheweekmarch27one.gif">
“Private investors had been sidelined from purchasing retail property for a number of years due to strong demand from institutional investors. Also of particular note is the emergence of foreign investors purchasing 23% of retail property sold,” says Savills national head of research Tony Crabb.
“Evidently, the global credit crisis created a window of opportunity for private and foreign investors to re-enter the market.
“As conditions for Australian institutions continue to improve, private and foreign investors may well find themselves unable to compete again.
“Purchasers have become more confident the commercial property market has passed the bottom of the cycle,” he says.
Property trusts (26%), syndicates (21%) and private investors (21%) were the biggest sellers of property over 2012 with private trusts and syndicates also active.
Of note, 12% of retail property sales last year were mortgagee in possession sales.
<img alt="chartoftheweekmarch27two" height="816" width="400" src="/images/stories/2013/03/chartoftheweekmarch27two.gif">
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Private investors return to retail property market as trusts sell out: Chart of the week

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In February, Westfield founders the Lowy family announced the sale of its entire 7.1% stake in the Westfield Retail Trust for $664 million.
The motivation was to diversify its investments internationally. The Lowy family retains its 8% interest in Westfield Retail Trust’s stable mate Westfield Group worth approximately $1.8 billion. 
The action highlights the potential performance differential of passive asset-owning A-REITs compared to those with a higher earnings growth prognosis. 
Westfield Retail Trust is a passive property-owning A-REIT.
Earnings growth is largely generated by rental increases from assets held in the portfolio.
While rent reviews on retail property held in A-REIT portfolios continue to generate rental increases of up to 3%, renewals and new leases have seen rental reductions of up to 7% with some increases in lease incentives acting as a further drag on earnings.
The difference in the change in rental between renewal of existing leases and new leases is the re-leasing spread. Westfield Retail Trust reported the weakest releasing spread in the retail A-REIT sub-sector at -2.6%. 
Westfield Retail Trust’s forecast earnings growth is 3.0% and its estimated dividend yield for the 2013 financial year is 6.3%.
This compares to the forecast earnings growth for Westfield Group at 4.9% with an estimated dividend yield of 4.5%. The yield differential reflects the difference in anticipated earnings growth. 
Westfield Group also owns property. However, its earnings growth is boosted by profit from property development; revenue generated by higher fees from increased funds under management and increased asset management fees.
Westfield Group reported an 18% increase in net profit over the 2012 year driven largely by profit earned from development of its own shopping centres.
Development profit and fee revenue are more volatile than rental income.
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markwist-Vaq6S8Xoby

What motivated the Lowys to sell out of the Westfield Retail Trust?

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The Australian housing market has entered a period of subdued stability with little prospect of "large price swings" a new report by the Housing Industry Association (HIA) argues.
The HIA bases this assertion on the ratio of mortgage repayments to earnings, which it views as having strong correlations with house price growth.
"The ratio bottomed out during the late 1990s, with brisk growth in house prices following," says the <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/new-home-sales-on-the-rise-hia/2013013159051">HIA</a> in the report.
Now, it says the ratio is slightly above its long term average.
"This suggests that the relationship between earnings, interest rates and house prices is balanced and consistent with stability in the market. Accordingly, any large price swings are probably unlikely in the near future.
Click to enlarge
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The HIA says its analysis indicates that the Australian housing market is "relatively weak by historical standards in terms of transaction volumes and anaemic price growth over recent months".
"This state of affairs underlines one of the key features of housing markets generally, whereby low levels of transaction and turnover tend to accompany periods of subdued prices.
"Consequently, the return of sustainable price growth to the market would add welcome fuel to activity in the residential construction sector," it says.
Click to enlarge
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Significant house price swings unlikely: HIA

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An Asian investor has paid $1.45 million at auction for the premises of a jewellery store on the ground floor of the Fender Katsalidis-designed Hero building on Little Collins Street.
The sale price equated to a yield of 6.2% for the 50-square-metre retail shop at 144 Little Collins Street, leased to Pilkington Jeweller on a monthly lease.
The property was marketed for auction by Josh Rutman, Ed Wright and Mark Wizel of <a href="https://www.propertyobserver.com.au/trends/cbre-embraces-flexible-working-space-in-sydney-office/2013031259832" target="_blank">CBRE</a> City Sales on Friday March 22.
The Hero apartment building is the former 1948-built Russell Street Telephone and Exchange Post Office building, which was transformed into inner-city apartments above retail by Fender Katsalidis with the addition of six floors, added in 2001.
It is considered one of the best examples of the transformation of a former public building into inner-city apartments.
Rutman tells Property Observer the auction drew over 150 spectators, with five genuine bidders pushing the property from an opening bid of $1,000,000 all the way to the final sale price of $1,450,000.
"This reflected a yield of 6.2% and an exceptionally strong rate of $29,000 per square metre over building area, a record for the building," Rutman says.
"This is the second sale of a retail investment property by CBRE City Sales this week and highlights the continued investor demand for well-located ground floor CBD retail properties.
"Despite negative commentary about the state of the retail climate these properties continue to achieve premium prices when marketed strategically by an agent to the marketplace," says Rutman.
CBRE City Sales also sold the 75-square-metre premises of Trend Cafe at 377 King Street for $900,000 at a yield of 6.5%.
"Investor demand for well-located retail continues to remain strong which is being mainly driven by the low interest rate environment and improved sentiment levels due to the improved residential property and share markets," says Rutman.
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Asian investor pays $1.45m for retail premises in Fender Katsalidis-designed Hero building on Little Collins Street

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Hearty congratulations to Melbourne real estate agency PhilipWebb for deciding to stop advertising client properties in newspapers. The agency has generated publicity for deciding that newspaper print advertising is “Jurassic” in nature and that online promotion is the only way to go. It had abandoned metropolitian dailies, but stuck with regional press ads until recently.
Late is better than never, but what took you so long to have this blinding flash of the bleeding obvious?
Enlightened agencies came to this conclusion a decade ago. Jenman-approved agencies have been finding buyers for homes without newspaper advertising for at least the past 10 years.  
I have published four books on the real estate industry, the first of them in 1998, and they have all warned sellers to avoid agency pressure to spend thousands on unnecessary newspaper advertising.  
Here’s what I wrote in Property Smart in 2002: “One of the unsung scandals of real estate is the many different ways agents abuse their clients’ advertising money … Agents use this money to further their own ends rather than their clients’.  
“Agents use their clients’ marketing budget to promote themselves … Often the largest words in a real estate ad describe the agency name. One way of another the agency’s name will be prominent when in reality there’s no need for it to appear at all.”  
Evidently PhilipWebb agrees. <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/melbourne-estate-agents-philipwebb-ditch-jurassic-newspaper-advertising/2013032059992">It told </a><a target="_blank" href="https://www.propertyobserver.com.au/industry-news/melbourne-estate-agents-philipwebb-ditch-jurassic-newspaper-advertising/2013032059992">Property Observer last week</a> that print advertising was just a way for agents to get their brand noticed – at the expense of their clients.  
Property Smart also described how agencies have earned commissions or rebates from newspapers for directing their clients’ ads to those newspapers. This still happens today and is one of the great outrages in real estate. Why should agencies receive financial rewards for spending their clients’ money? If anyone should receive a reward, it should be the home seller who pays for the advertisements.  
Currently there is a court case in Victoria over an agent allegedly receiving secret commissions from a newspaper for directing vendor-paid advertising their way. The case is ongoing.
What is surprising is that there are not more such cases. Newspaper kickbacks to agencies for vendor-paid advertising have been standard in real estate for decades.
What is even more surprising is that Saturday’s newspapers are still crammed with real estate ads. This is worse than “Jurassic” – it’s a terrible waste of money by the home sellers.
Home sellers appoint real estate agents to sell their properties and pay them with a handsome commission if they’re successful. It’s scandalous for agents to ask their clients to also spend thousands on advertising. 
As consumer advocate Neil Jenman says: if the ads sell the property, why do you need an agent? Just place the ads yourself and save yourself the agents’ selling commission.
The bottom line is that no advertising should be necessary at all. Agencies are supposed to have buyers available.  
But if sellers feel that advertising is necessary to assist the sales process, the last place they should put it is in a newspaper.  
Online marketing is far more effective and less costly. It’s so much more-user friendly than the great mass of newspaper advertisements, grouped under agency banners and designed primarily to promote the agency – at their clients’ expense.
How does a Melbourne buyer interested in a four-bedroom house in, say, <a href="/news">Brighton</a>, find such properties amid the great jumbled mass of property ads in a newspaper? It's nigh on impossible.  
Compare the ease with which you can isolate properties that meet your location, type and price criteria in an online service.  
If you’re selling your home and your agent tells you that you need to budget thousands for newspaper advertising, you have appointed the wrong agent. Sack them and find an alternative that has buyers looking for property in your area and therefore doesn’t need to waste your money on advertising.  
Why blow a big chunk of your capital gain on a wasteful agent?
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>
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terryryder-YECXbqmri2

It's ancient for agents to ask vendors to spend thousands on print advertising: Terry Ryder

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Westfield  Group  has sold half of its interest in six Westfield regional malls in Florida to O’Connor Capital  Partners for US$1.283  billion. 
O’Connor’s investment will represent a 49.9% interest in this portfolio, which has a gross value of US$1.283  billion.  
Westfield will remain as property, leasing and development manager on terms consistent with the Group’s other joint ventures. 
“This agreement carries on the Group’s strategy of introducing joint venture partners into our assets globally as well as disposing of non-core assets,” says Westfield Group co- chief executive officer Peter Lowy. 
Westfield will realize approximately US$700 million in net proceeds from the transactions. 
The transactions are subject to financing and other customary closing conditions and are expected to close in the second quarter 2013. 
Founded in 1983, O’Connor Capital Partners is a privately held, independent manager, owner, operator and developer of real estate.
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Westfield sells half interest in six Florida malls for US$1.28 billion

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There seems to be a perceptible sigh of relief across Australia now that spending has started once again. As RBA deputy governor Philip Lowe pointed out in a speech last week:
“Nationwide measures of house prices have increased by around 4% since mid last year, after having declined for around 18 months. Home lending approvals and auction clearance rates have both risen. Equity prices are up over 20% since the middle of last year. And the level of consumer confidence is now well above its long-run average level. Despite what one often hears, households do appear to be feeling better about both their finances as well as Australia’s medium-term prospects.”
Mr Lowe is correct in his assessment of the housing market: conditions have improved and people are once again out and about leveraging against existing assets, and pooling their savings into bricks and mortar.
In Melbourne, according to the REIV, the overall value of residential sales at auction has increased substantially compared to this time last year. Transactions sold at auction over the first few months of 2013 currently total $1.8 billion, compared to $1.5 billion in March 2012 - and the value of private sales has also risen from $3.9 billion to $4.5 billion. It’s a remarkable improvement considering overall turnover last year was back at levels not seen since 1996 as we limped through 12 months of no perceptible growth, aside from a slight ‘uplift’ in the numbers attending both auctions and ‘open for inspections’ in December.
So is it back to business as usual? Well, for the time being maybe – except of course for first home buyers who are struggling to join the party in any significant proportion – a segment that seems to be discounted amongst those calling ‘recovery.’  Albeit, it’s clear from the Governors speech that the post GFC period, during which we’ve been encouraged to save and pay down debt, is drawing nigh.
I suspect, outside of the daily grind most endure to keep their mortgage repayments under control whilst squirreling away funds for retirement, scant thought is given to the broad concept of ‘money’ – or indeed where money essentially comes from.
Whenever we hear a speech on the housing market from the RBA, it’s accompanied by a short history lesson on the major influences that have lead to our fortuitous years of ‘boom’ appreciation, during which we’ve seen median house prices balloon some 200% – outpacing both wage growth and inflation over the same period.
For example, in one of their most recent publications cautioning on a lower growth atmosphere, we were educated thus:
“Over the past 20 years or so, upturns in the housing market have been accompanied by an increase in the growth rate of credit. But those years were also a period of structural change as the economy moved to a higher level of household indebtedness. Generations of households yet to buy their first home, or still wanting to trade up, were taking advantage of easier access to credit, which among other things had been facilitated by the shift to lower inflation and lower interest rates in the early 1990s.”
It’s a seemingly fitting non-emotional explanation to explain away the dramatic increase in prices – albeit it doesn’t quite paint the full picture of where this supply of money actually originated from.
The economist JK Galbraith coined what is perhaps the best explanation of our monetary system when he said "the process by which banks create money is so simple that the mind is repelled. When something so important is involved, a deeper mystery seems only decent."
I’m sure some reading this that will be well educated in the dynamics of debt creation – it’s no hidden secret, just rarely discussed.
However, there will be a good proportion who have yet to be initiated into the remarkable system of monetary supply that has allowed the majority of our currency – some 95% of it – to be created out of thin air through the process of bank lending.
In fact the story behind this great supply of money would make a fitting accompaniment to the unfolding plot in the film Oz The Great and Powerful. As long as we ‘believe’ it doesn’t really matter what’s occurring behind the scenes – processes which in arguably ‘less responsible’ hands ultimately lead the world to the brink of economic collapse.
And as countries around us wake up to the devastating repercussions of what can happen when ‘things go awry’ – <a href="https://www.positivemoney.org/" target="_blank">organisations</a> campaigning for a better way are slowly gaining traction.
If you have an innocent understanding of economics, you may still be under the illusion that banks make their profits by leveraging against depositors funds and thus, charging interest on the loans they advance through a process called ‘reserve ratio’ or ‘the money multiplier’ – keeping a proportion of the balance safely aside whilst extending the rest to a borrower as credit.
However, whilst no one would disagree that economics is a complex subject in its own right – this myth was debunked a long time ago – although perhaps more publicly so since the on-set of the GFC.
Importantly, the central bank doesn’t control the amount of money circulation – commercial banks do – based on their own models of risk assessment, which are arguably developed and manipulated behind closed doors.
You see, when a bank extends a loan, the figures typed into your loan account are just that – simply numbers put there on the premise that the bank has assessed you a credit-worthy individual who will honour the terms of their contract.
In the simplest sense, this loan (the figures typed into your bank account created from ‘nothing’) are counted as a ‘deposit’ – money you owe to the bank, and therefore instant ‘wealth’ upon which the bank can extend further credit into the economy.
Banks don’t have to limit themselves to lending out this somewhat fictional money based on any ratio set by the RBA – or the funds they receive from depositors. In other words, it’s commercial banks that control the level of ‘money’ (debt) which circulates in the system.
Consequently, almost all the currency out there is money which has been created and expanded through an increasing variety of financial models. Money ‘loaned’ into existence with interest attached – for which additional funds are required to service the extra repayments. As the money supply increases, so does inflation, but principally on the goods that it ‘funds’: real estate.
 
<hr class="system-pagebreak">
Let me briefly recap. In almost all modern countries operating under the same system, only 3-5% of ‘real’ money originates from the government-owned mints, the rest is conjured up with the words ‘I believe’ when a bank makes a loan.
As Adair Turner, Chairman of the FSA, eloquently put it in a speech ‘Credit Creation and Social Optimality’ following the GFC in Sept 2011:
“The banking system can thus create credit and create spending power – a reality not well captured by many apparently common sense descriptions of the functions which banks perform.  Banks it is often said take deposits from savers (for instance households) and lend it to borrowers (for instance businesses) with the quality of this credit allocation process a key driver of allocative efficiency within the economy.  But in fact they don’t just allocate pre-existing savings, collectively they create both credit and the deposit money which appears to finance that credit.”
Considering banks favour lending against existing collateral over and above the support of say small business and enterprise, it should come as no surprise that the vast majority of bank lending has been towards the purchase of ‘bricks and mortar’ – and whilst the only constraint on the amount of money ‘created’ is people’s ability to service the debt – we should not be under any illusion that the RBA wouldn’t welcome a return to ‘business as usual’ in our revolving system of finance.
According to RP Data, Australia’s property market is worth an estimated $4.86 trillion, which is three-and-a-half times the value of Australia’s stock market and combined superannuation funds. Therefore, it’s no surprise that the health of our property market dominates the conversations of both those in and out of the real estate industry – an asset class towards which banks are highly exposed.
Without going into further detail, the one problem with our economic model is the requirement for boundless growth – more debt requiring more activity just to maintain the amount of money we have in circulation. Without it, we lose our jobs and our ability to service this growing supply of credit.
Collectively, we’re all in debt – and for those who aren’t, the remainder pick up the slack.  And although its broadly recognised that the initial boom in borrowing which occurred in the decades leading up to the GFC is unlikely to continue at such a rapid pace, you would be foolish not to recognise the risks associated with an economy which has its foundations pinned on a future which has to forever ‘be bigger’ in order to stay afloat.
I came across a cartoon the other day with the wording:
“Oh, The World is $40 Trillion in Debt?”
“Please, tell me who the world is in debt to?”
The answer of course, is the banks. Albeit, whilst we’re rocking along under the protection of the mother of all mining booms, underpinned with increasing demand from China, and in the throes of relatively rapid population growth, the party can seemingly continue ad infinitum.
Albeit, make no mistake - the rocky foundations are there - a younger generation slowly ‘priced out’ – for which the government can only assist through the extension of a further allowance of ‘cheap’ credit, which thus far has not produced any lasting effect.
Not to mention an ageing population who will eventually outnumber the workers, leading the ‘big Australia’ advocates yelling ‘populate or perish!’
The game of checkmate won’t change until the system changes, and the system won’t change until its hand is forced.
With these thoughts in mind, perhaps it’s time to remind ourselves what Citi's Global Head of Credit Strategy, <a target="_blank" href="https://www.businessinsider.com/matt-kings-most-depressing-slide-ever-2012-12">Matt King</a>, cited late last year as “'The Most Depressing slide” he had ever created.
“In almost every country you look at, the peak in real estate prices has coincided – give or take literally a couple of years – with the peak in the inverse dependency ratio (the proportion of population of working age relative to old and young).
In the past, we all levered up, bought a big house, enjoyed capital gains tax-free, lived in the thing, and then, when the kids grew up and left home, we sold it to someone in our children's generation. Unfortunately, that doesn't work so well when there start to be more pensioners than workers.”
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/03/cashmoremarch25.gif"><img src="/images/stories/2013/03/cashmoremarch25thumb.gif"></a>
Food for thought is it not?
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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