Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Joel Robinson

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

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

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

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

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

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
The Perth CBD is expected to be the top performing capital city office market this year despite mining companies reducing their costs and office space requirements, says BIS Shrapnel chief economist Frank Gelber.
However, Sydney is the best bet over the next five years with very little new CBD office space coming onto the market over this time period.
“As demand recovers, vacancy rates will tighten, leasing incentives will reduce, rents and property values will rise,” he says.
Gelber expects Sydney to be the top performing office market from 2014 onwards, despite projects like Barangaroo South adding over 120,000 square metres in new office space and due for completion in 2015.
He says the impact of Barangaroo has been built into BIS Shrapnel’s forecasts and he rejects “crazy comments” about the project pushing the Sydney vacancy rate to as high as 9%.
However, he says the other capital city office markets including Melbourne are “way behind”.
BIS Shrapnel is forecasting the Melbourne vacancy rate to reach 10% over the next few years from a current vacancy rate of 6.9%.
New projects and a lack of demand for fringe office space will also keep the vacancy rate elevated in Brisbane.
“This year, we think Perth will again top the pops – despite a recent setback in demand.
“While strong in the first half, net absorption turned negative in the second half of the year,” Gelber writes in The Australian.
Negative net absorption means that more office space was vacated than leased over the second half of 2012  - as mining companies downsized their space requirements.
Gelber highlights though that while mining investment is no longer growing at the “extraordinary rate that drove growth in mining services and hence office demand over the past decade, “it is [still] growing”.
Furthermore supply will dry up once the current spate of office projects are completed.
According to the most recent Property Council of Australia office report for the second half of 2012, the Perth CBD vacancy rate eased from 4.2% to 5.7% in December, but still remains the tightest capital city CBD office market.
“The Perth office market was affected by cost-cutting in resources companies, particularly the iron ore sector, last year. This resulted in less demand for office space by firms providing professional services to the sector”, said Property Council executive director, Joe Lenzo.
Lenzo says demand for Perth office space was at its weakest since 2009, with premium office space experiencing the largest increase in vacancy rates from 1.3% to 4.5% with a negative net absorption of just over 10,000 square metres.
However, mirroring Gelber’s sentiments, he says the new office pipeline will “tighten significantly in 2013” with only 12,249 square metres of new office space coming online in the Perth CBD over the year – a fraction of 180,000 square metres in new office space added in 2012.
From 2014 onwards the new office pipeline will gradually increase again”, he says.
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Perth to be the top office performer in 2013 but Sydney to step up from 2014: Frank Gelber

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A property recovery is underway. The recovery will be modest and still below long-term growth averages for the nation, however, there is little doubt that property will be more expensive in 2013.
Signs point to growth potential for a number of residential sectors as a result of a positive shift in market sentiment in late 2012, the likes of which were evident in 2010 when Melbourne prices demonstrated solid growth. 2012 saw a steady increase in clearance rates and a small return to the market due to growth in median averages. The increase in the clearance rate from this time last year until the present is over 20%.
Property investors were among the most active buyers in 2012, but while this buyer segment is expected to remain active this year they will face rising competition from increasingly active owner-occupiers looking to upgrade or downsize following improved market conditions.
However, despite improved conditions buyers should exercise caution when engaging in a purchase. Property has become an increasingly complex investment vehicle and is no longer a simple prospect for the novice investor.
It’s important to recognise that no two properties perform the same because no two properties are exactly the same. Size, suburb, street and lot location, orientation, condition and broader economic conditions underpin property performance on an individual level, and exercise significant influence on capital growth.
In general terms, in 2013 the most active segment of the market is expected to be the middle tier established housing market, particularly family homes in the range of $600,000 to $2 million. This assessment is based on historical market performance, which is typically a sound indicator of future potential performance.
When purchasing property, investing time in analysing a property’s individual historical performance trend is a worthwhile exercise to provide peace of mind and some degree of certainty regarding future investment performance.
Property is far more complex today than it was in the past and no longer is it an investment vehicle for uneducated investors. Not all property will perform in the same in 2013 and buyers need to be informed and aware of this when buying to ensure they understand the capital growth drivers that make a good investment property.”
There are signs of a positive shift for property values, the likes of which we haven’t seen since 2010 including:
<ul>
<li>More bidders at auctions and more interest at open for inspections.</li>
<li>Anecdotal evidence of much better results being obtained at private sales.</li>
<li>Second-ring areas and outer suburbs reporting strong selling results.</li>
<li>The market had a strong spring and experience tells me that a good result in spring leads to a strong summer/autumn.</li>
</ul>
It should be noted that banks and lending institutions are doing everything they can to present attractive lending options. When the banks are lending at low interest rates the buyers will return to the market.”
Overarching tips for 2012
Remember, use the rule 'location, location, location' in all property transactions - buy in the right suburb, on the right street and in the right position on the street or block.
By making smart well-informed property decision you will watch your investment grow.
If you don't have the time (up to 20 hours per property) or the confidence to buy a flawless investment then seek advice from a certified property advisor. Don’t risk a guess on such a large investment.
Greville Pabst is CEO of <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;ved=0CEAQFjAA&amp;url=http%3A%2F%2Fwww.wbpproperty.com%2F&amp;ei=Jb4hUevODOyamQX6mIGYDQ&amp;usg=AFQjCNH0u8Ji9ymluq8AKARfB-KjHZ-aFA&amp;sig2=DNsIKQR7tQj4PtYuiJOHPA&amp;bvm=bv.42553238,d.dGY">WBP Property Group.</a>
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A modest property recovery is underway led by “middle tier” family homes: Greville Pabst 

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It’s true that every deal will be different. But that does not mean you can't use a series of simple measures to help you sift the "wheat from the chaff”.
How to quickly shortlist your properties
Basically, there are three simple tests you can apply to filter out potential properties that are not worth spending any further time on.
1. The net yield
This is the figure that quickly tells you what the net operating income (NOI) represents as a percentage of the actual purchase price you may ultimately pay [where NOI = gross income - operating expenses].
Naturally, the appropriate net yield will vary with the type, age and location of the property, as well as the actual marketplace over time. However, with a little research (or help from your consulting team) you'll quickly be able to establish what that figure ought to be for potential properties in your area.
2. Cash-on-cash return
You should also establish what your annual cashflow is as a percentage of the equity you invest [where annual cashflow = NOI - interest payments].
However, when calculating your equity contribution, an LVR of 70% requires you to provide 30% of the purchase price, plus acquisition costs (like stamp duty, legals, etc.) — for which you should allow a further 7.5% to 8% of the purchase price.
By way of a guide,  your cash-on-cash return ought calculate to be no less than 10% in order to make a deal worthy of further consideration.
3. Debt coverage ratio
Your next test is a favourite with financiers. And you calculate it by simply dividing your NOI by the interest payment.
Generally, financiers like to see this figure is at least 1.2 times your debt servicing costs. Otherwise, you will need to provide proof of additional income or pledge further assets as additional collateral.
Remember: You can have a positive cashflow and still have a negative taxable income by fully claiming your appreciation entitlements.
Armed with a viable shortlist, you are now in a position to determine which property (or properties) should undergo a more thorough financial analysis.
To further trim this shortlist, clients use my <a target="_blank" href="https://investor-lab.biz/your-tool-box">high-speed filter</a> to help ensure a quick and consistent selection.
This also serves to match up your investment objectives with your buying criteria — and thereby, impartially rate each potential property for you.
Bottom line: The secret in all of this is to confirm you are working with real numbers.
Always ensure your NOI calculation is based on what the property actually returns instead of relying upon a vendor's rosy projections of what the property might potentially generate.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a target="_blank" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
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How you can find the best deal when buying a commercial investment property: Chris Lang

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In its Global Powers of Retailing 2013 report, Deloitte highlights that Australia has seen a significant influx of overseas retailers over the past two or three years and this trend “looks set to continue”.

According to White, Australia’s advanced economy and stable political and legislative structures makes it an attractive destination for global retailers and also acts as a springboard into the potentially highly lucrative growth economies in Asia.

For more on this trend read David White’s column: <a target="_blank" href="https://www.propertyobserver.com.au/retail/why-global-retailers-are-setting-up-shop-in-australia/2013021959438?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observers/" title="Why global retailers are setting up shop in Australia"> Why global retailers are setting up shop in Australia </a>

Watch David White discuss the Global Powers of Retailing 2013 report

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The future of global retailing and Australia’s appeal: David White of Deloitte

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Melbourne shopaholics, get your credit cards out and brace yourselves.
Shoppping centre developer GPT will score a retailing first when it opens both a Zara and Topshop in the new wing of its $300 million redevelopment of the Highpoint Shopping Centre in Maribynong,  in less than a month.
It will be the first time in Australia that a shopping centre offers both global fashion brands under one roof.
The arrival of the two global retail brands to Melbourne's inner west comes as Colliers International forecast overseas brands to open around <a target="_blank" href="https://www.propertyobserver.com.au/retail/zara-topshop-and-uniqlo-lead-retail-property-push-into-australia/2013021859421">300 new stores in Australia's capital cities</a> over the next few years, with fashion heavyweights Uniqlo, Zara and Topshop leading the charge.
The new Zara Highpoint store wil act as a cornerstone to connect the new Highpoint wing with the existing centre.
“We’re very pleased to be welcoming Zara to Highpoint and delighted to be the first Australian shopping centre owner to offer customers convenient access to international fashion giants Zara and Topshop under the one roof,” says GPT’s head of asset management Matthew Faddy
Zara forms part of Spanish retail company INDITEX and has over 1,700 stores across 85 markets.
It currently operates a store on the Bourke Street mall in Melbourne.
The first Topshop store in Melbourne opened in the Jam Factory on Chapel Street in the space that was previously occupied by Borders books.
Topshop is UK-based and was started by retailing billionaire Sir Philip Green.
A third Topshop store is due to open in the Myer Emporium currently under construction in the Melbourne CBD.
The new wing will officially open on 14 March with Topshop opening on the same day and Zara opening either on the same day or shortly after
“The second stage of the development will deliver a 14,000 square metre, two-level David Jones store, the first to Melbourne’s West, and approximately 80 new speciality retailers including Australian and international designer fashion, homewares and lifestyle stores. Zara will make an exciting addition to this mix,”   says GPT’s head of development Anthony McNulty.
“Once completed Highpoint will be home to more than 520 retailers, feature new community spaces and accommodate 7,000 car spaces.”
The new Highpoint Fashion Mall, the final stage of the centre’s development, will complement the Fresh Food Market and Eco Mall which opened last year. The Fresh Food Market and Eco Mall opened in October last year and features a Woolworths supermarket plus a range of speciality fresh food, children’s wear, services and general merchandise retailers
Highpoint Shopping Centre is co-owned by Highpoint Property Group, GPT Wholesale Shopping Centre Fund and The GPT Group. 
It is valued at $845 million as of December 31.
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Highpoint scheduled March opening for Zara and Topshop double-act

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The Sydney CBD market has maintained its ninth-placed ranking among the list of the most expensive locations in the world to rent office space.
Sydney has an occupancy cost of €992 per square metre, according to Cushman &amp; Wakefield’s Office Space Across the World 2013 report


Occupancy costs include base rent, turnover rent and other outgoings and expenses.
The  top ten list is headed by London’s West End (€2,137 per square metre), which regained its crown from Hong Kong’s Central Business District (€1,505 per square metre),
The biggest upward move was made by Rio de Janeiro’s Zona Sul which went from eighth most expensive office market to third most expensive.
Managing director of Cushman &amp; Wakefield Australia David Woolford says Sydney’s ninth place ranking in terms of global office occupancy costs confirms its position as a world class financial centre.
“This ranking reflects the premium standard of office stock available in Sydney and we expect Barangaroo will raise the bar even higher.
“It is interesting to note there is only a 6-10% differential between the destinations ranked 6 to 10 in this research and Sydney is consistently ranked in the top ten in terms of occupancy costs in the world,” he says.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="491" colspan="6" valign="top">
Top 10 most expensive office locations by country
</td>
<td width="109" valign="top">
 
</td>
</tr>
<tr>
<td width="75" valign="top">
2012 rank
</td>
<td width="76" valign="top">
2013 rank
</td>
<td width="83" valign="top">
country
</td>
<td width="75" valign="top">
city
</td>
<td width="85" valign="top">
location
</td>
<td width="97" valign="top">
occupancy cost (€/sq.m/year)
</td>
<td width="109" valign="top">
Occupancy Cost (US$/sq.ft/year)
</td>
</tr>
<tr>
<td width="75" valign="top">
2
</td>
<td width="76" valign="top">
1
</td>
<td width="83" valign="top">
UK
</td>
<td width="75" valign="top">
London
</td>
<td width="85" valign="top">
West End
</td>
<td width="97" valign="top">
2,137
</td>
<td width="109" valign="top">
262
</td>
</tr>
<tr>
<td width="75" valign="top">
1
</td>
<td width="76" valign="top">
2
</td>
<td width="83" valign="top">
Hong Kong
</td>
<td width="75" valign="top">
Hong Kong
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
1,505
</td>
<td width="109" valign="top">
184
</td>
</tr>
<tr>
<td width="75" valign="top">
8
</td>
<td width="76" valign="top">
3
</td>
<td width="83" valign="top">
Brazil
</td>
<td width="75" valign="top">
Rio de Janeiro
</td>
<td width="85" valign="top">
Zona Sul
</td>
<td width="97" valign="top">
1,343
</td>
<td width="109" valign="top">
165
</td>
</tr>
<tr>
<td width="75" valign="top">
5
</td>
<td width="76" valign="top">
4
</td>
<td width="83" valign="top">
India
</td>
<td width="75" valign="top">
New Delhi
</td>
<td width="85" valign="top">
Connaught Place
</td>
<td width="97" valign="top">
1,324
</td>
<td width="109" valign="top">
162
</td>
</tr>
<tr>
<td width="75" valign="top">
3
</td>
<td width="76" valign="top">
5
</td>
<td width="83" valign="top">
Japan
</td>
<td width="75" valign="top">
Tokyo
</td>
<td width="85" valign="top">
CBD (5 Central Wards)
</td>
<td width="97" valign="top">
1,274
</td>
<td width="109" valign="top">
156
</td>
</tr>
<tr>
<td width="75" valign="top">
4
</td>
<td width="76" valign="top">
6
</td>
<td width="83" valign="top">
Russia
</td>
<td width="75" valign="top">
Moscow
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
1,141
</td>
<td width="109" valign="top">
140
</td>
</tr>
<tr>
<td width="75" valign="top">
6
</td>
<td width="76" valign="top">
7
</td>
<td width="83" valign="top">
China
</td>
<td width="75" valign="top">
Beijing
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
1,074
</td>
<td width="109" valign="top">
132
</td>
</tr>
<tr>
<td width="75" valign="top">
7
</td>
<td width="76" valign="top">
8
</td>
<td width="83" valign="top">
USA
</td>
<td width="75" valign="top">
New York
</td>
<td width="85" valign="top">
Midtown (Madison/5th Avenue)
</td>
<td width="97" valign="top">
1,052
</td>
<td width="109" valign="top">
129
</td>
</tr>
<tr>
<td width="75" valign="top">
9
</td>
<td width="76" valign="top">
9
</td>
<td width="83" valign="top">
Australia
</td>
<td width="75" valign="top">
Sydney
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
992
</td>
<td width="109" valign="top">
122
</td>
</tr>
<tr>
<td width="75" valign="top">
10
</td>
<td width="76" valign="top">
10
</td>
<td width="83" valign="top">
France
</td>
<td width="75" valign="top">
Paris
</td>
<td width="85" valign="top">
CBD
</td>
<td width="97" valign="top">
915
</td>
<td width="109" valign="top">
112
</td>
</tr>
</tbody></table>
 Source: Cushman &amp; Wakefield
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Sydney remains ninth most expensive office rental market in the world: Cushman & Wakefield

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Expressions of interest close today for a development site in the east Melbourne suburb of Blackburn that was once a fruit orchard and forms part of the estate of  the late Alan Herbert ‘Bert’ Cock, who played VFL in the early 1900s.
He died in April last year.
Cock played just two games for Collingwood in 1909 scoring one goal.
His brother, Eric was a more successful VFL player and a member of the Collingwood team which contested the 1922 VFL Grand Final playing 36 games and scoring 40 goals.
Another brother, Arthur, played two games for St Kilda in 1924.
The 10,360 square metre property stands at 59-67 Surrey Road, Blackburn North with three street frontages, 12 title allotments and is a 20-minute drive to the Melbourne CBD.
The portion up for sale is the remnant of the original 8.9 hectare estate, which was originally a large orchard operated by Bob Slater through the first half of the 1900s, and which is now the children’s playground known as Slater Reserve.
Since 1919 it has been owned by Herbert and Eva Cock or their immediate descendants.
The property harks back to the days when Blackburn was a country suburb, with the investment report noting that “all five family members loved the property and spent much of their lives on it watching its evolution from quiet countryside to busy suburbia”.
Eva Phillips, one of 14 siblings in a large orcharding family in Tunstall (now Nunawading) married Bert, a VFL footballer from Clifton Hill in 1914.
When they purchased the land in 1919, Bert and Eva, built a two room cottage close to Koonung Creek (now lot 11 Kent Close) and some 20 acres of orchard was painstakingly established.
Produce was initially taken by horse and wagon to Victoria Market however, with the development of reliable trucks and refrigerated transport, produce was trucked to the Blue Moon Co-operative (rail siding to the east of Blackburn Station) then shipped from Station Pier to Europe.
By the mid-1950s and to support their retirement, around 7.7 hectares of the property was sub-divided for urban housing. All five family members loved the property and spent much of their lives on it watching its evolution from quiet countryside to busy suburbia.
<a target="_blank" href="https://www.woodards.com.au/index.cfm?pagecall=property&amp;propertyid=2234678">It is being sold by Julian Badenach and Cameron Way of Woodwards with expectations of a price in excess of $4 million</a>.
“We are expecting interest from a number of investment bodies. Aged care services,  property developers interested in land subdivision for the creation of small house blocks as well as medium and high density units, townhouses and apartments are all showing interest,” Badenach tells Property Observer.
The land is zoned Residential 1 Zone and is close to Westfield Doncaster, Centro Box Hill and Blackburn North Village retail strip.
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Blackburn orchard owned by former VFL player Bert Cock seeks $4 million from developers

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For many global retailers, Australia represents a relatively untapped market. Its geographical location, opposing seasons to North America and Europe, smaller critical mass and more attractive growth opportunities in domestic markets in Europe and the U.S. have meant that Australia has remained somewhat sheltered from many international competitors.
However, with many economies in Europe and North America experiencing significantly declines in growth, Australia has become of more interest to many global retailers. Whilst forecast retail growth rates in Australia of 2.9% for 2012-13 are relatively modest, they are still higher than many growth rates in North America and Europe.
Similarly, with an advanced economy and stable political and legislative structures, setting up operations in Australia is a relatively easier prospect doing so in other less developed countries. It also allows global retailers to use this expansion into Australia as a springboard into the potentially highly lucrative growth economies in Asia.
With the strengthening of the Australian dollar and the increasing use of online as a medium for shopping, many Australians have taken to purchasing products from overseas. This has awakened global retailers to demand for their products from Australian consumers. It has also given them vital information on what Australian consumers want which is a significant benefit when setting up business in Australia.
Global retailers also have a number of potential competitive advantages over local Australian retailers. With operations globally, there are naturally potential economies of scale which can be used to bring products to Australian shores at cheaper prices. Many global retailers, particularly in the fashion retail space, have invested significantly in building their brand equity. Such brands are highly attractive to many consumers, as we have seen with the new store openings of Zara and Topshop in Australia which have proven to be highly successful.
Many such retailers are more advanced in terms of vertical integration, which allows new products to be brought to consumers quicker, more conveniently and at a lower price. Customer experience and customer service are also areas where typically many global retailers are more developed.
What does this mean for Australian retailers?
Undoubtedly, the influx of global retailers to the Australian market has and will continue to increase competition. However, we shouldn’t forget that Australian retailers still have a number of advantages including a greater knowledge of the local market, customers and seasons; an established customer base; and prime store locations.
For Australian retailers to be successful it’s vital that their response to global competition is positive and developed around a well thought out long term strategy. Being price competitive will always be an important part of a retailer’s strategy, but it can only have limited success against a retailer with a global presence and potential greater economies of scale. Therefore it will be vital to differentiate and adapt, be it through product or customer innovation, branding, sales channels, speed to market or customer experience.
With some of the largest global retailers entering the market it’s an opportunity for Australian retailers to step up to the challenge. Australian retailers need to have a long term strategy which addresses globalisation and which ensures they have a point of difference. In doing so, many more Australian retailers will be competing and potentially succeeding against some of the biggest retailers in the world.
David White is <a target="_blank" href="https://www.deloitte.com/view/en_AU/au/index.htm">Deloitte's</a> national leader  for retail, wholesale &amp; distribution and author of the report: Global Powers of Retailing 2013.
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Why global retailers are setting up shop in Australia

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With the release of the RP Data-Rismark Home Value Index results earlier this month, we also received the updated information on median selling prices of homes over the three months to January 2013.  This data revealed that the gap between selling prices of houses and units reached a record high over the first month of year.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/kusher1.gif"><img src="/images/stories/2013/02/kusher1thumb.gif"></a>
At a national level, median selling prices of houses were 11.4% higher than median selling price of units and across the combined capital cities, the differential was a much larger 19.4%. Five years ago, the differential was 15.6% and 8.3% respectively and a decade ago capital city houses were 1.1% more affordable than units and nationally houses were 5.6% more affordable.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/kusher2.gif"><img src="/images/stories/2013/02/kusher2thumb.gif"></a>
Across most individual capital cities the difference between selling prices of houses and units is at a record high.  In fact, Adelaide and Hobart are the only cities where the difference is not currently at record highs and they are only 2.6% and 5.0% off the records respectively.  The above chart highlights the differential across the major capital cities over time.  The graph also shows that since the start of the 2000’s the gap between the median price of a house and that of a unit has increased significantly.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/kusher3.gif"><img src="/images/stories/2013/02/kusher3thumb.gif"></a>
The difference between median selling prices of houses and units is currently quite significant across individual capital cities. In particular, some of the most expensive housing markets nationally such as Sydney, Melbourne, Darwin and Canberra all have a price differential in excess of $100,000. Across the individual capital cities the current differences are:
<ul>
<li>Sydney $171,000</li>
<li>Melbourne $103,250</li>
<li>Brisbane $99,500</li>
<li>Adelaide $78,000</li>
<li>Perth $96,000</li>
<li>Hobart $85,750</li>
<li>Darwin $164,000</li>
<li>Canberra $165,000</li>
</ul>
The significant price difference is highlighted by the fact that houses remain a much more popular choice across the nation than units.  The 2011 Census showed that 75.6% of all occupied dwellings were houses.  Although houses remain more popular, for price sensitive purchasers, particularly in major capital cities, units may be the only option for these buyers to enter the market.  With the gap widening between house and unit prices you would expect that unit sales activity would be increasing but this has not been the case over recent years.
Click to enlarge
<a href="/images/stories/2013/02/kusherfeb19.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/02/kusherfeb19thumb.gif"></a>
Of those properties sold over the 12 months to November 2012, units accounted for just 29.2% of sales across the combined capital cities and 25.6% at a national level.  As the graph above shows, there has been a strong trend toward fewer unit sales since late 2009.  This trend was probably influenced to some extent by the boos t to the First Home Owners Grant and the subsequent surge in first time buyers, many of whom were looking to purchase detached homes.  It is important to note that this trend may be slightly overstated due to the fact that off-the-plan unit sales are not provided until the property is titled however, there remains a trend toward fewer unit sales over recent years.  This seems to contrast dwelling approvals data which was released earlier this week.
Click to enlarge
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The annual dwelling approvals data shows that the proportion of units approved for construction has reached an historic high with 40.4% of all approvals over 2012 for units.  Of course the data still shows that the majority of approvals are for houses but it is noteworthy that more than half of all New South Wales approvals and almost half of all Victorian approvals were for units.  Given that in Sydney and Melbourne there is such a large gap between median house and unit prices this may be indicative of developers offering the market a cheaper housing alternative in the form of units. However, given that the number of unit transactions has been falling since 2009, are more units what the marketplace wants?
I believe that most Australian’s still aspire to own their detached home however; the high cost of vacant land coupled with limited new land supply and the concentration of employment opportunities within a few major centres has made owning a detached home out of reach for some.  For others, the only locations in which they can afford to own a detached home is either in a regional market, where there are fewer job opportunities, or on the outskirts of the city where amenity and infrastructure is less abundant than in those areas closer to the city centre.
Higher density units within inner city areas remain popular with investors because of their strong rental demand and subsequent attractive rental returns.  As a result of the more affordable price point of units as opposed to houses and their appeal to investors, I believe we will continue to see more and more units being developed, in particular within inner city areas.  Whether or not it is necessarily the product type that the market aspires to own, is unlikely to matter, given the reality is that for a proportion of the population, units are the only product type that they can afford in the location that they desire (unless they choose to locate within the more affordable detached housing areas on the outskirts of the major cities).
What do you think, are more units what the market wants and are units a viable alternative to the high cost of detached houses?
Cameron Kusher is senior research analyst at <a target="_blank" href="https://blog.rpdata.com/">RP Data</a>.
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Record gap between median house and unit prices may not mean demand for units is rising: Cameron Kusher

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The Channel 9 television executive David Gyngell has spent $5.25 million to buy a half share of John "Strop" Cornell's Hotel Brunswick at Brunswick Heads.
The Brunswick pub is a northern NSW tourist stop-over location known for its traditional pub food, a shady beergarden, and the vintage ambience of classic Austalian 1940s architecture.
The "Bruns" has courtyard space shaded by giant poinciana trees.
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It ranked highly in the 2011 Best Of Summer Top 10 Beer Gardens by the Daily Telegraph being placed in number two position behind the Opera Bar @ Circular Quay.
The small coastal village pub was built in 1940 by Jim Cavill overlooking the Brunswick River and Simpsons Creek.
It was almost two decades earlier that Jim Cavill had built the 16-room Surfers Paradise Hotel in what was then Elston and then campaigned to have it renamed Surfers Paradise which occured in 1934.
<a href="https://www.hotelbrunswick.com.au/history/" target="_blank">The first hotel in Brunswick Heads was Bob Marshall’s Ocean View Hotel, which opened in 1884</a>.
The freehold of the pub was bought by the Cornell-directed Hizan Holdings in 1990 from Austotel for $2.1 million.
Hizan has recently touted getting development permission for the site but had a dispute with the local council about the definition of “floor area”.
Property Observer gathers the dispute was concluded without the need for contested litigation.
Gyngell, who has a newly completed retreat in the Byron Bay hinterland, has been a family friend of John Cornell and Delvene Delaney.
Gyngell’s gather, Bruce, helped found the Nine network in 1956. Another father figure was Kerry Packer who died on Boxing Day 2005.
The fellow Byron hotel owner John Cornell, who was the legendary producer who managed Paul Hogan and helped Kerry Packer set up World Series Cricket in 1977, is like a father figure to him.
The purchase had been mooted, but the official paperwork was only available last week at the land titles office.
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