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 near-zero office vacancy rates enjoyed by the mining cities of Brisbane and Perth pre-GFC  now seem to have come back into line with the other capital cities.
The latest survey released by the Property Council of Australia (PCA) displays a much more even spread for cffces vacancies around the country.
The cooling of the mining sector, coupled with the Queensland floods, has caused a number of key players to rethink their office space requirements.
<img alt="langfeb13" height="323" width="470" src="/images/stories/2013/02/langfeb13.png">
<h3>So, what's happening around Australia?</h3>
In the past six months, Perth's vacancy rate has increased by nearly a quarter — to where it now sits at around 5.7%. This has followed some major staff and space reductions by mining companies and their related consulting firms.
Over the past five years, developers in Melbourne have had the chance to secure pre-commitments from major tenants wishing to move into brand-new buildings within Docklands. And only recently has it become viable to tackle any new projects within the CBD proper.
Therefore, most of Melbourne's increased vacancy (currently at a respectable 6.9%) has resulted from the need to refurbish and back-fill the space being vacated.
In the past six months Sydney's vacancy rate has fallen to 7.2%. However, the leasing market remains cautious because much of the available space was withdrawn as landlords looked to refurbish buildings before reoffering them to the market.
As such, around 165,000 square metres of space is due to come onto the market over the next 12 months, representing about three years of supply.
Mining companies led the office boom in Brisbane, but that demand has sadly fallen away. And now that impact is being felt, as the current vacancy rate of 9.1% needs to be mopped up by traditional businesses. And like in Sydney, there are also a number of major projects due for completion over the next three years.
With a vacancy rate of 9.5%, Adelaide currently sits as the highest for any mainland capital city. But unfortunately, things are likely to get worse.
With the completion of several major projects, the PCA estimates the past six months has produced Adelaide's fourth highest supply increase on record — three times its historical average.
As such, the current vacancy rate will no doubt rise before returning to a more reasonable level, of around 7% to 8%.
<img alt="langfeb132" height="311" width="232" src="/images/stories/2013/02/langfeb132.png">
Bottom line: The commercial property playing field around Australia now seems considerably more level.
While access to CBD offices may not be readily available for the small to medium investor, this sector does provide a good guide to the health of the overall office market.
Clearly, interest rates and consumer confidence (i.e. spending levels) dramatically affect retail property. And to a lesser extent, industrial property — which (in Australia) caters mainly to warehousing for retailers.
However, according to an 80-year study by Macquarie Bank, there is apparently no correlation with rising interest rates having a detrimental affect upon office property.
And so, given we are currently at the bottom of the interest rate cycle, that ought to give you considerable added confidence for investing in the office sector going forward.
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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Why you should be confident about the office market, even as vacancy rates rise

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Italian-based pizza operator Konopizza will open its first Australian outlet in the newly revamped Jam Factory in Melbourne.
The pizza chain, famous for its cone shaped pizzas, will rent a 60 square metre shop in the iconic entertainment centre on Chappell Street in South Yarra.
The rent Konopizza will pay was not disclosed.
Average passing rents in the centre are $553 per square metre.
The Jam Factory is the retail jewel in the crown of Challenger Diversified Property Trust.
Last week the trust reported a 10.6% lift in interim net profits to $20.8 million on the back of the strong performance of the recently refurbished cinema and retail complex.
Challenger spent $20 million refurbishing the Jam Factory and secured a new 12 year lease with Village cinemas, with the centre returning an income yield on refurbishment costs of 8.8%.
The other noteworthy tenant is UK fashion retailer TopShop, which has a 10 year lease over 1,600 square metres in the complex and occupies the prominent corner site once leased by Borders bookstore.
The trust fund manager Trevor Hardie said higher rents at the Jam Factory had boosted the first-half results.
The lease to Konopizza was negotiated by the CBRE Retail Services team of Max Cookes and Zelman Ainsworth.
CBRE is the exclusive retail leasing agent for the centre.
“Topshop selecting the Jam Factory to be their first retail location certainly illustrated the strength of the centre and the prime nature of this retail location within South Yarra,” says Cookes.
“Over the last 18 months our team has worked closely with the Challenger to achieve their desired results on the retail component of the asset which has been repositioned as a destination shopping precinct that has attracted not just Topshop but a number of other major international and national hospitality, entertainment and fashion retailers.”
Other food retailers in the centre include Nashi, Salsas, Nandos, Shuji Sushi, Boost Juice and Romanos café.
Village Cinemas has been the anchor tenant at the Jam Factory since 1995.
Challenger acquired its 60% interest in the Jam Factory in October 2006.
The Jam Factory was first established in 1858 as the Victoria Brewery.
In 1876 the Victoria Brewery closed down. The building and land were then sold for 5,350 pounds to Robert Wright and Robert Payne. No longer a Brewery, the new company was named the Victoria Preserving Company.
In 1895, Mr William Peacock bought the premises and turned it into the ‘OK’ Jam Co.
It is currently valued at $77.4 million.
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Challenger secures Italian pizza tenant Konopizza for refurbished Jam Factory 

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It was a much strong month for commercial lending than mortgage lending in December, according to ABS figures.
The value of total commercial finance commitments rose 8.6% in December 2012 after a fall of 7.7% in November 2012 to just under $32 billion worth of loans,  the ABS reported.
By comparison, the value of owner occupied housing commitments excluding alterations and additions fell 2.7% on a seasonally-adjusted basis over December.
The 2012 calendar year was still a weak one for commercial lending, with commitments down around 5% from $386 billion to $366 billion.
Fixed commercial lending commitments rose 8.6% in December, after a fall of 10.5% in the previous month. Revolving credit commitments rose 8.8%, after a fall of 0.2% in the previous month.
The value of  commercial finance commitments for the purchase of dwellings by individuals for rent or resale reached $6.25 billion in December 2012, a decline of 0.3% on a seasonally-adjusted basis.
The value of total lease finance commitments fell 15.3%, after a fall of 0.9% in November. 
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Commercial lending up 8.6% in December: ABS

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The global financial crisis has had a significant impact on the way Australians view American society. When I first visited the United States around 15 years ago they thought we wrestled crocodiles, called prawns shrimp and rode kangaroos to work. Their view of Australia was driven by the media they were consuming. 
We all laughed at the simple attitudes of the American public and how naive their view of Australia was, but we have to be careful not to fall into similar traps. 
If we were to believe the media, we would be under the impression that America is one massive foreclosure sign and every property has lost more than half its pre-GFC value. While there is no doubt many property markets in the States are in serious trouble, there are some markets that have held their ground. 
Take, for example, <a target="_blank" href="https://www.zillow.com/homedetails/15-W-11th-St-APT-3B-New-York-NY-10011/72513457_zpid/">this one-bedroom apartment</a> in New York City's Greenwich Village.
 <img alt="greenwich" src="/images/stories/2013/02/greenwich.jpg" height="174" width="300">
It was purchased in 2007 just before the GFC for $1.2 million. Five years later it came out with its head held high and sold for a respectable $1.15 million. 
Similar examples can be found on the west coast of America. In San Francisco <a href="https://www.zillow.com/homedetails/554-Valley-St-San-Francisco-CA-94131/15182872_zpid/" target="_blank">this four-bedroom family home</a> sold for $2,879,000 in 2007 and was sold again in Jan this year $2,725,000.
<img src="/images/stories/2013/02/sanfran.jpg" alt="sanfran" height="196" width="150">
Yes, they both slipped back by a small amount, but even during one of the worst economic environments ever seen these properties protected the majority of their owners’ capital. 
So why does this happen, and what can we learn from it?
Both these properties are located in major cities with strong employment centres, infrastructure and schools. Further, they are in areas where there is a shortage of land, and both are period-style homes that are almost impossible to replace today.
In short, these properties have consistent underlying demand from a large number of people and a limited supply. The laws of supply and demand indicate that regardless of the market conditions these properties are more likely to retain their value during down times and grow well when times are good.
These laws of supply and demand do not have a nationality and will apply to any property market all across the world. They were in full flight on Saturday when a massive crowd turned out for the auction of <a target="_blank" href="https://www.realestate.com.au/property-house-vic-thornbury-112730267">154 Hutton Street, Thornbury</a> (pictured below).
<img alt="huttonst" height="353" width="470" src="/images/stories/2013/02/huttonst.jpg">
During the campaign for this run down timber Edwardian more than 3,000 people viewed the listing online. This translated into more than 360 people turning up to the open for inspections. Impressive numbers in any market.
The property ticks the boxes of limited supply and strong demand. It lies within seven kilometres of Melbourne and sits on around 600 square metres of land. It was also well located to shops, transport, parks and schools. To top it off, the property was seen by many buyers as affordable, as the agent was expecting it to sell for around $800,000.
The scene was set for a big auction as multiple buyers viewed this property as "the one". With the exception of a few under-bidders, the auction did not disappoint anyone. It was declared on the market at $835,000 and when the hammer fell it had exceeded this point by almost $100,000, selling for $933,000.
In a strong market all property looks good, but it's not until the market turns south that the cream rises to the top. As the market heats up into 2013 buyers would be wise not to lose sight of the laws of supply and demand.
Mark Armstrong is a director of <a target="_blank" href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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What the American housing market crash can teach Australia

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Apartment living can be fabulous, but with over 70,000 residential strata developments in NSW alone, there are several things to consider before committing to purchase, the most obvious being budget, location and lifestyle.
It is also important that the size of the building be taken into account. For example, if you want modern facilities including a gymnasium, pool, and concierge service, you may want to consider a larger development – more people contribute to maintenance and management costs, making outgoings more reasonable in the long term.
And then there is the endless stream of other questions you need answered before proceeding with the investment. Is the building pet friendly? What is the split between owner-occupiers versus tenants? Are the outgoings (levies) sustainable over the long term? Is the development well managed by a reputable company and are there any pending issues? Are the common walls well insulated? Will your views ever be built out? What is the capital growth potential, rental return and demand? What are the by-laws of the building that you need to adhere to?
The good news is that you don’t have to figure it all out on your own. There is plenty of assistance and support at hand for apartment owners and investors that can provide answers while saving you time and money.
Firstly, you should have a good conveyancer who can give you the right advice about the contract, by-laws and all other terms relating to the purchase.
Unlike buying a house, the reality of communal living is that you are investing in an entire building development and essentially buying the air space, fixtures and fittings that are within the apartment. Common walls and common areas are the responsibility of the owners' corporation on or executive committees of each development, making it imperative that you thoroughly research the building and its history before purchasing.
The easiest way to investigate this is to find a good strata search company that can arrange a comprehensive strata report on the particular building you are looking at. This will cover all the necessary information on the development, including whether the sinking fund has a sufficient amount and the minutes from previous strata meetings. The report will also shed light on any short or long-term structural issues that could cost you in the future.
Another great source of assistance is The Owners Corporation Network (OCN), a not-for-profit organisation established in 2002 by representatives from 13 of Sydney’s largest buildings at the time.
Karen Stiles, OCN’s executive officer, says that by working closely with the government and industry bodies and hosting various forums, meetings and seminars, the OCN’s ultimate goal to improve strata living.
According to Stiles, over half the new dwellings to be built in our metropolitan areas over the next decade will be strata-titled. She says that it is essential that Australians transition as painlessly as possible from the idea of being the kings of their quarter-acre blocks to living in a well-managed ‘vertical village’.
Stiles added that the OCN is a support network that thrives because very few people have the knowledge or skill required to effectively manage their assets particularly when dealing with developers, builders and contractors in an increasingly complex area.
Carlie Ziri is the director of <a target="_blank" href="https://www.lifestylepropertyagency.com/">Lifestyle Property Agency.</a>
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How to decide what is most important when buying an apartment

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Charter Hall Group’s $1.7 billion Core Plus Office Fund has spent $172.5 million on the purchase of a Harry Seidler-designed Castlereagh Street, Sydney, office tower.
The 35-level, 1989-built Castlereagh Street office was sold by Stockland through Josh Cullen and Michael Andrews of CBRE.
<img alt="9castlereagh" height="600" width="401" src="/images/stories/2013/02/9castlereagh.jpg">
It's the one with the impressive hanging gardens.
On its completion, with tenants including Tricontinental, Credit Lyonnaise and merchant banking group Fay Rich White, the office tower had gardens on the ground level, landscaping on level nine, more gardens on level 13 and 15, palm trees on level 19 and a single tree on level 31.
It first sold in 1994 for $78.1 million when Capita Finance Group sold what was then known as the Capita Centre to Singaporean Straits Steamship Land.
It last sold in 1998 for $112 million.
<img alt="9castlereagh2" height="300" width="450" src="/images/stories/2013/02/9castlereagh2.jpg">
Stockland, the diversified property group, has been exiting its office and industrial holdings to focus on its retail, residential and retirement property portfolio.
<img alt="9castlereagh3" height="300" width="450" src="/images/stories/2013/02/9castlereagh3.jpg">
The 9 Castlereagh Street sale reflects a likely yield of around 8% as it is expected to generate a rental income of $15.1 million on a fully leased basis.
The purchase price includes $4 million in income support and the payment of all outstanding incentives.
<img alt="9castlereagh4" height="300" width="450" src="/images/stories/2013/02/9castlereagh4.jpg">
Its sale price was just above <a href="https://www.stockland.com.au/leasing-and-tenants/office/nsw/9-castlereagh-street-sydney_about-9-castlereagh-street.htm" target="_blank">Stockland’s June 2012 book value of $172.3 million</a>.
The building comprises 21,000 square metres of net lettable area, with tenants including Tokio Marine Management, van Eyk Research, PTW Architects and Talent 2.
The CPOF had been seeking to buy in Sydney for some time with the purchase increasing CPOF’s Sydney exposure from 19% to 27%.
“We believe the medium-term prospects for the Sydney office market remain positive and as such CPOF was attracted to this investment given the $8241 per square metre is below replacement cost and represents good value when compared to new building asset sales,” said Charter Hall joint managing director David Harrison.
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Charter Hall spends $172.5 million on Harry Seidler-designed Castlereagh Street office

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They may be unglamorous warehouses on the outskirts of Melbourne, but private investors are returning to the Melbourne south-east industrial market, accounting for more than a third of all transactions over $2 million in 2012, according to Savills.
The pie chart below shows that private investors were the biggest buying group of industrial properties in south east Melbourne  in 2012, accounting for 36% of all transactions.
According to Savills' Victorian head of research Glenn Lampard, investment yields for prime industrial property remained in a range of 7.5% to 8.75% while land values ranged from $115 to $200 a square metre for land between one and five hectares.
Lampard said private investors had been quicker out of the blocks to recognise an opportunity in the growing region.
The south-east Melbourne industrial market includes suburbs like Clayton, Moorabbin and Huntingdale.
<img alt="savillsfeb13" height="311" width="470" src="/images/stories/2013/02/savillsfeb13.gif">
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Private investors return to south-east Melbourne industrial market in droves

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The 21st century may be the “Asian century”, but Australia has enjoyed links with the region for over 150 years. The Australian gold rush, which began in 1852 and petered out in the late 1880s, was built on a massive wave of migration from all parts of the world.
The largest foreign contingent on the goldfields was the 40,000 Chinese. In 1861, Chinese immigrants made up 3.3% of the Australian population, the greatest share it has ever been. The 2011 Australian census recorded Chinese-born people at 1.5% of the population.
Most of the Chinese in Australia working on the goldfields were under contract to Chinese and foreign businessmen. In exchange for their passage money, they worked on the goldfields until their debt was paid off, and most returned to China.  About 10% stayed, and their hard work continued, putting down roots to create the Chinatown precincts in central Melbourne and Sydney. These areas continue as the vibrant epicentres of Chinese history, culture and business in Australia.
While the recent high level of Asian investment into the Australian apartment market attracts much publicity, much less is known about the impact offshore developers are having on the Australian residential market.
Many are surprised to know offshore developers are now proposing or building 20,000 apartments across Australia, with Chinese developers second only to Singaporeans in the ranking of offshore sources. This provides offshore developers with close to a 50% market share in this Australian property development sector.
But there is a link between the number of offshore developers and the high level of foreign purchases. Many Asian developers are marketing off-the-plan sales directly back into their home countries and cities through well-known and tried marketing avenues.
This high visibility through marketing and the familiarity offshore purchasers have with the product appears to be a winning formula and has helped push off-the-plan sales to a level that is ultimately supporting such a high foreign developer involvement in Australia. This is certainly the case for Chinese developers.
As at December 2012, Chinese developers have about 4,500 apartments in the development pipeline in Australia. This is a tiny number by Chinese standards, where some of the larger developers will complete about 100,000 apartments in a single year, and there are a number of developers doing that when market conditions allow.
In Australia, Chinese developers have invested at least $A350 million in sites nationally and are proposing projects so far of at least $1.6 billion. This activity is providing an important stimulus to a local property and building industry, which is at a very low point in the economic and financial cycle.
But Chinese developers are still very much in the emerging phase in Australia, behind the Singaporeans, who have been the pioneers of offshore developers here and successful ones at that. Singapore-based Frasers Property stands out as the single largest offshore developer to date, with large and high-profile projects such as Central Park in Sydney and the Frasers Landing/Queens Riverside projects in Perth making a bold mark on the local scene.
Of the 4,500 apartments in the Chinese developer pipeline, 72% are still classified in the broad “planning” phase, which could mean sites have only recently been purchased with plans still being developed (and often final apartment numbers still unknown), with others still going through the development approval process. Singaporean developers have just 39% of proposed stock in the “planning” phase and 44% (2,600 apartments) under construction.
Of the Chinese pipeline, 700 apartments are presently under construction and around 550 recently approved.
The Chinese component of the offshore developer trend in Australia comprises 17 projects of the 58 presently monitored in total. Interestingly, of these Chinese-backed projects, 74% by apartment numbers are in Melbourne, with the percentage of foreign-developed apartments in Melbourne at a still-strong 48%.
Access to sites, a lower general site cost per square metre, a more accessible planning system and the strong cultural/education connections appear to have driven this higher-than-average representation of Chinese-developed apartments in Melbourne. Strong growth in visitor arrivals from China to Melbourne though increased direct flights appears as evidence of the strengthening links.
The Gu family’s AXF Group is the most active of the Chinese developers in Melbourne, with at least 2,300 apartments in the pipeline, including the 3.3-hectare former Kinnears Ropes site in Ballarat Road, Footscray, which could yield as many as 2,000 apartments.
 
<hr class="system-pagebreak">
 
The other prominent location for Chinese developers is the Gold Coast, which represents 12% of the total Chinese-backed proposals. The massive three-tower Jewel project dominates this interest. The AU$1 billion project recently received state government approval and may kick off within the next 12 months. The project will include a six-star hotel and two residential towers.
Jewel's northern tower will have 215 luxury apartments over 41 levels; the central tower will be a six-star hotel with 300 suites and apartments over 45 levels; and the beachfront tower will have 108 premium residences over 35 levels. There will also be office and retail space and a host of resort facilities.
Jewel is being proposed by the Zhuhai Ridong Group and is likely to be completed by 2016, a time when the current oversupply of apartments on the Gold Coast is expected to be well and truly absorbed. Chinese developer Yan Jian is also active in the Gold Coast market.
Showing that Chinese developers are not just active in the larger Australian cities, the Datong Investment and Development Group is proposing two schemes in Adelaide, both in the CBD. The 123 Flinders Street scheme is particularly notable for its very bold design and is proposed to be the tallest building in the city at 39 storeys, a height only recently allowed under new planning controls. The same developers are also proposing the Aria on Gouger project on Gouger Street.
It’s perhaps surprising Chinese developers are not more active in Sydney, given the size of the city, its popularity with Asian visitors and the large number of Chinese apartment buyers in that market. Only 6% of Chinese-backed apartments are actually in Sydney, compared with 35% overall for offshore developers. There is further scope for Chinese developers to move into the Sydney market, but for now, the Singaporean-based groups have established the lead position among the offshore developers.
But why such a pronounced trend in Chinese and offshore developers, and why now? There are many drivers to this trend that have come together at this time, including:
<ol>
<li>The globalisation of property investment and development companies, looking to simultaneously grow business and spread risk by tapping into a number of different demand cycles and sized markets.</li>
<li>Coupled with point 1 is the significant growth of equity capital, particularly in China and the desire to invest part of this into “safe haven” destinations. Australia is considered a reliable investment location and place to do property business, with a secure land tenure system.</li>
<li>Like other property sectors, the price of residential development sites is generally low in Australia at present, coupled with reduced local appetite to acquire. Buying at this low point in the cycle will improve development feasibility and returns. Some previous site owners have been in a financially distressed state, particularly in suburban or country areas, with these sites being sold through receivers. Most site acquisitions by offshore groups have occurred since the global financial crisis, with this activity peaking in 2010-11.</li>
<li>Housing in most parts of Australia is undersupplied, particularly for reasonably priced products. This situation has been created by years of high interest rates and increasing developer charges being passed on to the end product.  The present low confidence caused by global economic uncertainty is further compounding generally low levels of buyer demand, particularly in greenfield housing markets.</li>
<li>The market popularity of inner-city apartment living close to transport, retail and education continues to be high, and this is where most apartments being developed by offshore groups are being proposed and built. This well-defined sector of the market is running counter to the general greenfield housing market at present.</li>
<li>Population growth in Australia remains high, and provided developers can meet the parts of the market where demand is highest there remains a good chance of achieving a successful project with high returns and low risk in a transparent, regulated industry.</li>
<li>Marketing of apartments directly into a developer’s home country has also opened sales to a purchaser group familiar with the developer’s product and has proved successful in reducing development risk by spreading the buyer catchment.</li>
<li>Various governments in Australia have and still provide incentives to purchase new dwellings (below a price point, which is typically in the middle market) and particularly for new apartments. These incentives can take various forms, such as a stamp duty concession or a first-home owners’ grant. These schemes appeared to have brought forward purchasing decisions and the termination of the schemes can lead to a spike in off-the-plan pre-sales and distortion in the cycle of transaction volume.</li>
</ol>
The risk around apartments developed by Chinese or offshore developers appears to be little different from the risk of those developed by local companies. Off-the-plan sales of individual apartments can remove part of the development risk, although risk is then transferred to settlement.
A number of the projects being developed by offshore groups have experienced a high proportion of sales to parties from the country of the developer or countries other than Australia. This does raise the prospect of the developer (or financier, if relevant) not being familiar with the buyers and reduces the ability to trace the ultimate source of funds for settlement.
Yet there appears to be no evidence through this cycle of this risk being realised to a point that has jeopardised the construction and completion of a residential project developed by an offshore company.
In some ways, offshore developers are in a fortunate position to be able to tap into large offshore buyers groups through existing contacts, opening up a source of equity capital not otherwise familiar to Australian developers.
The other obvious risk is oversupply in concentrated locations, leading to the potential for softening in achievable prices for off-the-plan sales. However, were this potential to be realised it should be revealed through difficulty or lack of pre-sales and a response by the developer to defer or alter a project.
Much has been written globally about Australian property prices being too high. Australian residential prices have grown over the longer term on the back of moderate but sustained levels of economic growth, coupled with population, employment and wages growth.
Add to this a general undersupply of dwellings nationwide and a conservative lending policy among domestic banks, and residential pricing appears to have been well supported to its current position. Unless all of these drivers unwind, it appears unlikely the median pricing levels of residential property will adjust downwards in the near term.
Provided offshore (and local) developers continue to carefully respond to the nature of demand for apartment product coming from the marketplace, in terms of product location, concentration, design, pricing, etc. then the supply-side risk appears to be manageable.
Although the connection of the Australian, Chinese and more generally, the Asian economies is a long and growing one, the relationship through the real estate sector still has a long way to develop.
 
Kevin Stanley is an independent real estate analyst with over 20 years' experience in property market research and urban planning.  He is located in Sydney, Australia, and can be <a href="mailto:kevinstanley3@bigpond.com">contacted via email</a>
For more on the allure of Australian property to Asian buyers, <a href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment" target="_blank">download our free eBook. </a> The eBook is also available for<a href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook" target="_blank"> free download in Chinese. </a>
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Eight reasons Chinese residential developers have emerged as a major force in the Australian market: Kevin Stanley

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Plummeting first-home buyer numbers have raised fresh questions about recently introduced first-home buyer grant schemes on offer in NSW as well as raise issues about current housing affordability. 
The number of loans to first-home buyers in December 2012 fell to 14.9% according to ABS figures, the fourth consecutive month that this segment of the market has declined.
This a 37% decline on figures from a year ago when first-home buyers accounted for more than one in five new home loans (21.1%).
This was the weakest proportion of first-home buyers in the housing market since June 2004 and just two percentage points off the record low of 12.8% in March 2004 for ABS figures going back to July 1991.
The decline suggests that the new first-home owner grants in Queensland and NSW, which provide generous handouts of $15,000 – but only for those who buy or build new homes – have missed the mark and are as claimed by the likes of Ray White chairman Brian White nothing more than a builder or developer incentive.
In addition they suggest housing remains unaffordable or undesirable for most prospective first-home buyers with low mortgage rates and a decline in capital city house prices over the last few years failing to spur this segment of the market in a meaningful way.
The fall was sharpest in NSW, where there was a 3.2% decline as well as a smaller 0.8% drop in Queensland and a 1.9% decline in WA. 
“The state detail was something of a surprise,” notes Westpac, who called the December figures “another weak reading” for first-home buyer activity. 
“We had expected unwinding first-home buyer demand in NSW (from an earlier bring-forward relating to state government changes) to have run its course by December with weakness to instead centre on Victoria where stamp duty concessions coming in from January 1 would have encouraged many FHBs to delay purchases. 
“Instead, the sharp slide in NSW continued (–3.2%) with Victoria posting a slight rise (+0.3% for the month). 
Westpac estimates that approvals in this segment were down another 5.7% in December on a seasonally- adjusted basis.  
First-home buyer numbers peaked in May 2009 following of the doubling of the first-home owners grant to $14,000 for those buying existing homes and trebling it to $21,000 for those buy newly built homes in October 2008. 
First home buyers as percentage of home lending dating back to 1991 (ABS)
 
<table border="0" cellpadding="0" cellspacing="0" width="415"><tbody>
<tr>
<td nowrap valign="bottom" width="104">
Month
</td>
<td nowrap valign="bottom" width="104">
Number of FHB loans
</td>
<td nowrap valign="bottom" width="104">
% of new loans
</td>
<td nowrap valign="bottom" width="104">
Size of loan ($)
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1991
</td>
<td nowrap valign="bottom" width="104">
5654
</td>
<td nowrap valign="bottom" width="104">
20.7
</td>
<td nowrap valign="bottom" width="104">
71.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1992
</td>
<td nowrap valign="bottom" width="104">
7733
</td>
<td nowrap valign="bottom" width="104">
22.2
</td>
<td nowrap valign="bottom" width="104">
76.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1993
</td>
<td nowrap valign="bottom" width="104">
10139
</td>
<td nowrap valign="bottom" width="104">
22.4
</td>
<td nowrap valign="bottom" width="104">
83.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1994
</td>
<td nowrap valign="bottom" width="104">
7789
</td>
<td nowrap valign="bottom" width="104">
21.5
</td>
<td nowrap valign="bottom" width="104">
90.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1995
</td>
<td nowrap valign="bottom" width="104">
7218
</td>
<td nowrap valign="bottom" width="104">
21.9
</td>
<td nowrap valign="bottom" width="104">
89.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1996
</td>
<td nowrap valign="bottom" width="104">
8427
</td>
<td nowrap valign="bottom" width="104">
23.0
</td>
<td nowrap valign="bottom" width="104">
99.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1997
</td>
<td nowrap valign="bottom" width="104">
8047
</td>
<td nowrap valign="bottom" width="104">
21.0
</td>
<td nowrap valign="bottom" width="104">
104.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1998
</td>
<td nowrap valign="bottom" width="104">
8651
</td>
<td nowrap valign="bottom" width="104">
22.6
</td>
<td nowrap valign="bottom" width="104">
120.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-1999
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
22.0
</td>
<td nowrap valign="bottom" width="104">
134.7
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2000
</td>
<td nowrap valign="bottom" width="104">
9654
</td>
<td nowrap valign="bottom" width="104">
22.3
</td>
<td nowrap valign="bottom" width="104">
123.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2001
</td>
<td nowrap valign="bottom" width="104">
12745
</td>
<td nowrap valign="bottom" width="104">
25.8
</td>
<td nowrap valign="bottom" width="104">
146.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2002
</td>
<td nowrap valign="bottom" width="104">
7998
</td>
<td nowrap valign="bottom" width="104">
15.9
</td>
<td nowrap valign="bottom" width="104">
160.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2003
</td>
<td nowrap valign="bottom" width="104">
7618
</td>
<td nowrap valign="bottom" width="104">
13.3
</td>
<td nowrap valign="bottom" width="104">
185.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2004*
</td>
<td nowrap valign="bottom" width="104">
7083
</td>
<td nowrap valign="bottom" width="104">
12.8
</td>
<td nowrap valign="bottom" width="104">
191.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2004**
</td>
<td nowrap valign="bottom" width="104">
7428
</td>
<td nowrap valign="bottom" width="104">
14.3
</td>
<td nowrap valign="bottom" width="104">
204.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2004
</td>
<td nowrap valign="bottom" width="104">
8845
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
210.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2005
</td>
<td nowrap valign="bottom" width="104">
10811
</td>
<td nowrap valign="bottom" width="104">
18.8
</td>
<td nowrap valign="bottom" width="104">
217.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2006
</td>
<td nowrap valign="bottom" width="104">
10241
</td>
<td nowrap valign="bottom" width="104">
18.0
</td>
<td nowrap valign="bottom" width="104">
228.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2007
</td>
<td nowrap valign="bottom" width="104">
11282
</td>
<td nowrap valign="bottom" width="104">
19.4
</td>
<td nowrap valign="bottom" width="104">
230.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2008
</td>
<td nowrap valign="bottom" width="104">
14142
</td>
<td nowrap valign="bottom" width="104">
27.2
</td>
<td nowrap valign="bottom" width="104">
271.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May 2009***
</td>
<td nowrap valign="bottom" width="104">
18744
</td>
<td nowrap valign="bottom" width="104">
31.4
</td>
<td nowrap valign="bottom" width="104">
279.4
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2009
</td>
<td nowrap valign="bottom" width="104">
11793
</td>
<td nowrap valign="bottom" width="104">
23.5
</td>
<td nowrap valign="bottom" width="104">
293.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2010
</td>
<td nowrap valign="bottom" width="104">
8199
</td>
<td nowrap valign="bottom" width="104">
17.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2011
</td>
<td nowrap valign="bottom" width="104">
10264
</td>
<td nowrap valign="bottom" width="104">
21.1
</td>
<td nowrap valign="bottom" width="104">
285.1
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jan-2012
</td>
<td nowrap valign="bottom" width="104">
8043
</td>
<td nowrap valign="bottom" width="104">
20.6
</td>
<td nowrap valign="bottom" width="104">
282.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Feb-2012
</td>
<td nowrap valign="bottom" width="104">
7360
</td>
<td nowrap valign="bottom" width="104">
17.4
</td>
<td nowrap valign="bottom" width="104">
279.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Mar-2012
</td>
<td nowrap valign="bottom" width="104">
7902
</td>
<td nowrap valign="bottom" width="104">
16.6
</td>
<td nowrap valign="bottom" width="104">
281.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Apr-2012
</td>
<td nowrap valign="bottom" width="104">
7077
</td>
<td nowrap valign="bottom" width="104">
17.0
</td>
<td nowrap valign="bottom" width="104">
282.5
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
May-2012
</td>
<td nowrap valign="bottom" width="104">
9110
</td>
<td nowrap valign="bottom" width="104">
18.1
</td>
<td nowrap valign="bottom" width="104">
288.3
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jun-2012
</td>
<td nowrap valign="bottom" width="104">
8415
</td>
<td nowrap valign="bottom" width="104">
18.5
</td>
<td nowrap valign="bottom" width="104">
292.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Jul-2012
</td>
<td nowrap valign="bottom" width="104">
8760
</td>
<td nowrap valign="bottom" width="104">
19.2
</td>
<td nowrap valign="bottom" width="104">
291.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Aug-2012
</td>
<td nowrap valign="bottom" width="104">
8921
</td>
<td nowrap valign="bottom" width="104">
18.6
</td>
<td nowrap valign="bottom" width="104">
288.9
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Sep-2012
</td>
<td nowrap valign="bottom" width="104">
8391
</td>
<td nowrap valign="bottom" width="104">
19.3
</td>
<td nowrap valign="bottom" width="104">
289.2
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Oct-2012
</td>
<td nowrap valign="bottom" width="104">
9215
</td>
<td nowrap valign="bottom" width="104">
18.7
</td>
<td nowrap valign="bottom" width="104">
288.0
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Nov-2012
</td>
<td nowrap valign="bottom" width="104">
7921
</td>
<td nowrap valign="bottom" width="104">
15.8
</td>
<td nowrap valign="bottom" width="104">
287.8
</td>
</tr>
<tr>
<td nowrap valign="bottom" width="104">
Dec-2012
</td>
<td nowrap valign="bottom" width="104">
6557
</td>
<td nowrap valign="bottom" width="104">
14.9
</td>
<td nowrap valign="bottom" width="104">
293.9
</td>
</tr>
</tbody></table>
Source: ABS
*Record lowest proportion of first-home buyers
**Previous lowest proportion of first homebuyers after December 2012
***Highest proportion of first-home buyers
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First-home buyers at lowest share of new home loans in more than eight years: historical data to 1991

<html><body>
As demand from Chinese and other Asian buyers rises for Australian real estate a number of Melbourne agents have signed up to a new translation service which transforms their listing into audio-visual presentations that can be heard in Mandarin, Cantonese and six other languages.
Around 45 offices belonging to the Barry Plant and Stockdale and Leggo franchise networks have signed up to the service, which is provided by US-based technology firm DMI (Digital Motorworks).
Other agencies signed up to use the technology include Noel Jones, LJ Hooker, PRDnationwide and Greg Hocking.
Currently used in the US by around 25,000 car dealers, the technology has been adapted for real estate listings with the project in Australia spearheaded by business development manager Peter Daicos.
The automated service takes the images and editorial provided by the agent and creates a virtual video presentation overlayed with audio in a choice of eight languages - Mandarin, Cantonese, Japanese, Italian, Greek, Korean, Turkish and English.
Stockdale &amp; Leggo are currently selling this <a target="_blank" href="https://www.stockdaleleggo.com.au/glenwaverley/details.asp?internetid=273328&amp;OFFICE_ID=62&amp;order=&amp;suburb=&amp;surround=&amp;price1=0&amp;price2=9999999&amp;category=&amp;bedrooms=&amp;bathrooms=&amp;garages=2&amp;propertyType=&amp;OFFICE_GROUP_ID=&amp;offset=10&amp;st=">three bedroom house in Wheelers Hill</a>, in Melbourne’s south east, with a virtual video and audio commentary offered in eight languages.
According to the 2011 census, more than one in 10 residents (12%) in Wheelers Hill were born in China, the third highest demographic group behind English-born and Australians. The suburb also has a high proportion of Greek and Italian-born residents.
Daicos says new languages to be added to the service will include Vietnamese and Sudanese while DMI is also developing a seperate portal to include listings accesible in the eight languages and due to launch in about a month.
The technology is charged at a flat fee of between $200 and $250 + GST per month, depending on how many listings are to be translated, and is available both for properties for sale and those listed for rent.
If there are 100 properties to be translated, this works out to around $2.50 per week – a fraction of the cost a conventional expensive full production video.
There are also no start-up costs for agent.
“It’s about enhancement and communication,” says Daicos.
“Agents do not have to do anything as we use the existing data feed and images that are used to display their properties statically,” he explains.
The technology is compatible with properties listed on real estate portals such as realestate.com.au, domain.com.au and other listings sites.
It also comes with full reporting to assist agents with understanding consumer trends/ behaviors based on the number and average time the video is played. 

Properties can also be syndicated to YouTube.
Readers can download free Property Observer eBook <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=f29409991c&amp;e=7a53fc6dd9">Australia’s allure for Asian residential property investment</a>, detailing key insights into Asian buying trends and their influence in the Australian market in the Year of the Snake.
Agents interested in the service can send an email to <a href="mailto:pdaicos@dmotorworks.com.au">Peter Daicos</a>. 
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