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 absence of first-home buyers in NSW is becoming a major political and housing issue.
But it presents a bonus for investors, given the likely lack of competition in securing some properties at the moment.
Much of the finger pointing has been at the NSW state government following the axing of its first-home owner concessions for the purchase of existing homes. 
The Daily Telegraph has estimated there might be 40,000 fewer buyers this year after Treasurer Mike Baird's tightening of eligibility for the first-home owner grants.
The decison is estimated to boost government coffers by $1 billion a year – more than twice the figure originally budgeted.
The ABS statistics for December last year revealed yesterday just 988 NSW first home owner loans compared to about 4200 in December 2011, when the full array of government grants were available.
But its not just NSW where first- home buyers are pulling back.
The ABS first-time buyer numbers showed nationally they accounted for 14.9% all loans taken out in December – the smallest proportion since 2004 and well below the recent 20% average.
The state govenments that have initiated the shift to new home subsidy rather than continue with the established home subsidy always suggested it would take a while for first-home buyers to adjust to the new incentives.
But while Westpac had expected first-home buyer (FHB) loans to remain soft in December due to the demand shifts associated with changes in state government incentives/stamp duty arrangements, it found actual state mix puzzling.
"We had expected December to show particular weakness in Victoria where stamp duty concessions for FHBs were set to increase substantially in January.
"Meanwhile NSW was expected to stabilise as the unwind from a previous pull forward in demand ended," Westpac notes.
"Instead FHB approvals posted another steep fall in NSW to extremely low levels (lowest since early 1990s), with a sharp fall in Queensland as well but a more modest decline in Victoria.
"WA is the only state showing consistent gains in FHB approvals," Westpac notes.
The decline in first-home buyer finance approvals was mostly offset by an estimated 5% rise in the number of loans to 'upgraders',  with solid gains coming across the big eastern states in particular.
Investor activity softened, with the value of investor approvals falling 2.4% in December after strong gains in previous months.
December’s housing finance figures showed some encouraging signs for the residential building industry, but do not herald a recovery, according to Peter Jones, Master Builders Australia’s chief economist, who added that while there were positives in the figures for builders, the industry was not yet out of the woods.
“Looked at in isolation, today’s figure suggests interest rate cuts from the Reserve Bank may be beginning to gain traction, but any broad based recovery appears a way off.
“In the broader real estate market, the decline in first home buyers that continued in December is a concern given the various incentives across several states to entice them into the market.
“With consumers still reluctant to commit to large investments, the Reserve Bank should give urgent consideration to a rate cut at its March board meeting,” Jones said.
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First-home buyer absence a blessing for investors

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With Chinese New Year lunar festivals well underway, the early economic winners from the festivities include the Australian tourism industry, hotel and luxury retail sectors.
Eighty thousand Asian tourists were expected to fly in for the festival, mainly from China and Hong Kong, an increase of 50% on the monthly average – and they’re spending more money than ever before.
Tourism Australia spokesman Leo Seaton told SmartCompany foreign visitors are spending more every year.
“Total trip spend by visitors from China surpassed the $4 billion mark on a 12-month ending basis, up 16% for year ending September 2012.”
“This is at the back of a strong 33% growth in holiday spending,” he says.
Chief executive of the Retail Doctor Group, Brian Walker, told SmartCompany Australian retailers need to be more aware of the growing market.
“There’s no doubt the capital markets of Sydney and Australia are increasingly prime destination for Asian consumers, we see areas of Sydney and Melbourne that are predominantly Asiatic.
“Retailers should be aware of products for this target market and consider training staff in second languages,” he says.
According to Tourism Australia, the <a href="https://www.smartcompany.com.au/business-travel/053687-record-tourist-numbers-arrive-as-australia-aims-for-rivers-of-visitors-from-asia">number of tourists</a> arriving each year for the festival has increased steadily over the past few years in line with overall increases from Chinese visitors.
The Australian Bureau of Statistics reported the number of Chinese visitors to Australia grew by 16% in 2012 to 626,000 people.
Seaton says it’s too early to predict the precise impact the festival will have on the tourism industry, but it is expected to give a “significant boost”.
“The Chinese love Australia. The Chinese New Year Lunar Festival is acknowledged to be a big boost to tourism and a number of airlines have added additional flights for the period,” he says.
China Southern Airlines has been running extra flights from China to Cairns this year to meet the demand and in the past flights have also been increased to Adelaide and Uluru.
A spokesperson for the City of Sydney, Keeley Irvin, told SmartCompany luxury retailers are also benefiting from the boom.
“Based on anecdotal feedback at this stage, luxury retailers are doing well. These tourists have a fair bit of money to burn and as part of tradition, people buy new clothes as part of the celebrations,” she said. 
President of the Haymarket Chamber of Commerce, Brad Chan, says the weekend saw more visitors of both Australian and Chinese descent to the popular Sydney CBD precinct.
“Generally speaking the weekend just past has been busy for the Haymarket area. Australians like to venture into town to celebrate with their families and enjoy the festivities and the Asian tourists, even though they’re on holiday, like the familiarity.
“Most of the restaurants have stayed quite full, but retail in general is also doing quite well,” he says.
Chan says he expects the area will remain busy for the next few weeks and there has been steady growth in attendance at the celebrations over the past decade.
“Over the past five to 10 years we’ve seen a steady improvement in the Chinese New Year celebrations in Sydney and this has been partly driven by the City of Sydney who have invested a lot of time and money in these celebrations,” he says.
Hotel company Accor – which owns hotels such as the Novotel, Quay West, Ibis and the Sofitel – has seen significant growth of nearly 20% in the number of Chinese guests staying at their hotel in the past year.
Accor expected significant numbers of Chinese visitors to continue to stay with them over the festival period. The company has been developing a strategy to better cater to Australia’s growing number of Asian tourists.
Accor now has welcome kits in Mandarin, as well as Chinese newspapers, television channels and electrical adaptors. They also train their staff in cultural differences.
The number of <a target="_blank" href="https://www.propertyobserver.com.au/trends/chinese-signal-property-buying-intentions-in-australia-as-permanent-arrivals-numbers-rise-and-visitor-numbers-jump-dramatically/2013020659187?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" rel="nofollow">Chinese visitors to Australia</a> has tripled in the past decade. China is now the fastest growing tourism market of visitors in Australia and the second largest overall.
 
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/index.php"> SmartCompany.</a>
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Australian hotel and retail sectors benefit from Chinese New Year celebrations 

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Chocolate café chain Chocolateria San Churro will open its first store in the Adelaide CBD after leasing space on Rundle Street.
The Spanish themed chocolate chain has leased a 203 square metre café space at shop 5, 300 Rundle Street over seven years in a deal negotiated by CBRE’s Julia Pottenger.
While the price per square metre being paid by Chocolateria San Churro has not been disclosed, Property Observer understands that it will be around the going rate for rental space on the prime retail strip.
Annual rents on Rundle Street range from $400 to $1,200 per square metre.
Savills reported a <a href="https://www.propertyobserver.com.au/retail/darrell-lea-among-store-closures-as-adelaides-rundle-mall-vacancy-rate-hits-double-figures-savills/2012110557560/Page-2" target="_blank">vacancy rate of just 2.88% on Rundle Street </a>in November last year.
Rundle Street is the non-pedestrianised portion of the retail strip extending east from Rundle Mall.
They are far dearer in Rundle Mall, the super-premium retail location in Adelaide, with CBRE reporting rents remained stable in the final quarter of 2012 and ranged from $2,400 per square metres to $4,000 per square metre.
Originating in Melbourne in 2006, the chain is known for its range of decadent chocolate products including its famous Spanish churros.
Pottenger says demand for Rundle Street remains strong with Yvonne’s Yiros Café recently opening next door to the new San Churro café. The street has also seen the return of Mimco who have taken the former Mary Martin Book Shop tenancy.
“San Churro will be a great addition to Rundle Street and will thrive especially as they are due to open before the ‘Mad March’ season,” she says.
In contrast, CBRE reports that demand for space on Rundle Mall has been reasonably subdued in the December quarter.
“Property along Rundle Mall is traditionally tightly held by private investors and therefore rarely come to the market.
“There have therefore been no sales recorded in Rundle Mall during 2012 and no properties listed for sale in the precinct.
“Yields have remained stable in the December quarter and ranged from 6.75% to 7.25% for super prime and 7.25% to 7.75% for prime space,” says CBRE.
A new mall – Rundle Place - is currently under construction due to be completed in March 2013. It has been reported that the centre is 95% leased with three international retailers to open stores in the development to be anchored by Harris Scarfe.
CBRE warns of an increase in the retail vacancy rate the Adelaide CBD during the first half of 2013.
“There are two reasons for this. Firstly that there are currently several sites which are being marketed for lease, but are still occupied by the current tenant and they are likely to vacate in the first half of 2013.
“Secondly there are several tenants which currently occupy space on Rundle Mall which will move to the new accommodation in the Rundle Place development when it is completed in March 2013.
“This is likely to result in very limited growth in rentals in the CBD and depending on how much vacancy eventuates and there will be a increase in the incentives landlords will need to offer to attract a tenant,” says CBRE
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Spanish-themed Chocolateria San Churro to open first Adelaide CBD store on Rundle Street.

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With personal finances left looking fragile after the annual Christmas spending splurge, I thought it best to offer a list of simple strategies that can help Australians improve their financial fitness in 2013. 
If done properly, this includes assessing all aspects of personal finances, including strategies to boost retirement investments, such as including property and super, savings, a review of insurance policies, staying ahead of tax obligations and making an effort to improve financial literacy as more and more Australians take more control of planning their financial future.
1. Maximise the potential of any investment properties. Renovations to an existing property can reap huge rewards in the long run, with even the addition of air-conditioning dramatically increasing a property’s yield in terms of the amount you are able to receive in rent. Also, holding an investment property within a self-managed super fund trust is one of the most tax-efficient ways of managing these types of assets.
2. Ensure your property agents cover all property investment expenses (excluding interest). After all, you are paying them. This will greatly reduce your accountant’s costs and reduce your administration, as the agent will give you monthly and annual statements showing all income and expenses and will attach relevant invoices to each statement for your compliance needs.
3. Ensure loans are properly structured. Interest rates are near all-time lows, so while this is not great for savers, it is terrific for borrowers, who should ensure that their loans are properly structured and rates are in line with the competitive market rate. Many borrowers have not been given access to what is called the professional discount, although most are eligible. This potential  0.7% rate decrease applied to pay down a loan reduces the average loan by over $2,300 per year which equates to an overall saving of over $104,000 and reduces the term by nearly 6.5 years. The use of honeymoon credit card rates can also be very beneficial to enhance the faster payment of credit card debt while not increasing actual cash requirements.
4. Be aware of tax deductions. The use of a specialist property accountant will be able to show you all the legal tax deductions available to you, including the proper set-up of loans and the use of trusts for the astute property investor. Many investors forget to claim depreciation, which is a non-cash expense relating to the wear and tear of the building and fixtures and fittings. When doing a renovation, you should also prepare a scrapping schedule, which puts a value on everything you rip out and throw away. The taxman will pay you for your junk via an expense in the year of renovation and then allow depreciation on the new work. Remember depreciation and scrapping schedules must be prepared by a qualified quantity surveyor.
5. Ensure your will and enduring power of attorney are up to date. We have all heard of the horror stories of the wrong people getting your assets or, even worse, the government. Wills are a way to protect family wealth, and the common will, where assets are bequeathed to your children or surviving spouse, can have dire consequences if the receiver becomes bankrupt, has a family dispute, or has other medical issues. For many, a better alternative is required and therefore a different type of will is needed. This is normally referred to as a testamentary will. In this scenario, your will makes provision for your assets (such as property) to go to a trust set up after your death and you have your loved ones in control of the trust. This protects the assets from divorce, bankruptcy and taxes minors at adult tax rates and not the dreaded 66% on income generated from a normal death distribution. An enduring power of attorney (EPOA) is also recommended as the will does not take effect until death. If in a coma, access to bank accounts or the ability to sell assets for your medical treatment may be delayed or stopped without the EPOA. Remember your will only looks after what you own in your name and does not cover your superannuation or trust assets. Other documentation is required for these.
6. Consolidate super. Many of us have held a number of super funds over our working lives. These various superannuation balances can be quickly identified by visiting <a href="https://www.findmysuper.com.au/">www.findmysuper.com.au</a>, then consolidating these funds within one appropriate fund will ensure that you have the maximum amount of capital working, while cutting out multiple administrative fees, reducing costs and increasing retirement benefits.
7. Have your life insurance in your superannuation. Life insurance in this day and age is a necessity. However, it must be purchased with after-tax dollars when held in your name, yet if life insurance is held in super, payment is tax-deductible, resulting in large savings. Payments can be funded either out of your super guarantee (9%), improving your weekly cashflow, or as an additional salary sacrifice, which is tax deductible.
8. Consider moving your super into pension stage. The trigger for this is your age, not whether you are working. It is understandable that for any number of reasons many of us are happy or need to continue working slightly longer than traditionally we would have in previous times. Many super trusts allow the option to trigger retirement in super while you are still working (a simple deed amendment will allow this if not currently available). The benefit of this strategy is that your super fund will no longer be taxed on income or capital gains from your pension balances. You will need to draw an annual pension, but this can be re-contributed if not needed. In your hands, the pension will not be taxed if you are over 60 and taxed at your marginal tax rates less 15% if you are between 55 and 60, greatly increasing cashflow.
9. Ensure tax returns are up to date. The ATO is increasingly clamping down on late tax returns, but tax office penalties should not be the only incentive to avoiding tardiness. Delaying your income tax returns can add additional costs and deprive you of funds if a refund is expected. Even if you are required to pay additional tax, it is recommended to start early and withhold lodgment until your due date. Working through a registered tax agent can allow you up until May 15 in the next year for lodgment.
10. Savings can be made by reviewing and consolidating existing insurance policies. Many Australians do not consider changing their existing insurance policies for a better deal, normally because they are concerned that they will need to undergo a new medical examination, which may impact costs or benefits of that policy. However, if you have undergone a medical in the past five years, in most cases there is no requirement to undergo another if there is no loading applicable and the same amounts are carried to a new insurer who in turn may be able to offer you a more competitive deal. There could also be benefits in having different policies with the one provider so as to source discounts.
11. Invest in your own financial education and literacy. There is an increasing amount of scrutiny on the financial services industry and the big super funds in terms of the value of their advice and returns in recent years. Many Australians are now opting for a more independent route in order to maximise their future financial wellbeing. A self-managed super fund may be the right option for you. Talk to a specialist SMSF adviser, who can not only discuss the normal areas such as insurance and investment plans but also understands the law and tax applicable to these funds. Many people are now using their SMSFs to purchase property with debt, but if poorly executed, this brings unintended penalties so work with a specialist to maximise your returns. Other useful sources of information include joining specialist associations such as the Australian SMSF Members Association, which is a voice for members and not driven for the benefit of the profession.
There is a lot of value in investing in improving financial literacy. Not knowing is like throwing money down the drain; as many of these steps show, simply altering the way existing finances are structured can dramatically increase your cashflow, giving you that added flexibility to generate more wealth, whether that be through property or other investments.
Ken Raiss is a certified accountant and director of <a title="Chan &amp; Naylor " href="https://www.chan-naylor.com.au/" target="_self">Chan &amp; Naylor</a> national accounting firm. Ken’s experience lies in working with large publically listed multi-national companies, which gives Ken excellent insight into international market trends. Ken specialises in educating “mum and dad” property investors and small business owners with advice on wealth creation, asset protection, taxation, superannuation and compliance.
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Maximise your investment properties and 10 other ways to improve your financial fitness in 2013: Ken Raiss

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The translation from English to Chinese is almost becoming a pre-requistite for significant property marketing campaigns.
And a simple flag that represents the nationality of the reader is the catchy way property sellers are presenting their offerings to an international audience.
The <a target="_blank" href="https://www.discoverypoint.com.au/summit.php?utm_source=Private%20Media%20AU&amp;utm_medium=300x600&amp;utm_term=6204922&amp;utm_content=12767542&amp;utm_campaign=Australand%20-%20Discovery%20Point_SCHAUS026_BRBLUE">latest Summit Discovery Point marketing campaign from Australand</a> has the easy translation available after pressing the Chinese flag located in the digital advertisement's lower right hand corner.
<img alt="discoverypoint" src="/images/stories/2013/02/discoverypoint.jpg" height="334" width="470">
Meriton has been a market leader in the arena.
Local estate agencies are also making the switch.
Fletchers, the Melbourne agency, has been an industry leader. Fletchers' site has 16 flagged buttons for its language translation.
In addition to the principal Chinese button, there is French, Japanese, Russian, Hebrew and Greek (pictured below).
<img alt="fletchers" src="/images/stories/2013/02/fletchers.jpg" height="617" width="470">
Last week the switch was done by Richardson &amp; Wrench Mosman.
"We did it due to the sudden influx of sale to mainland Chinese buyers," says Robert Simeon from the R&amp;W office.
The translation is via Google, which might not be the best translation tool.
For more on the allure of Australian property to Asian buyers, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook. </a>Property Observer is also part of this trend, as the eBook is also available for<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> free download in Chinese. </a>
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Pressing the right Chinese button for Australian real estate sales

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When I first arrived in Australia from a relatively small town in the UK, the high-rise developments that were starting to dominate the inner-CBD skyline provoked a sense of excitement. The thought of residing in one evoked pictures of sweeping views, a kind of modern-day luxury “hotel” with a concierge and rooftop gym. I was still coming to terms with the local real estate landscape, and my concept of what created an ideal ‘home’ for an Australian buyer was biased in the extreme.
I had numerous preconceived ideas formed by my experience of the UK housing market – one of which was the difficulty in adapting to the thought of living in a weatherboard house. To my UK “cold climate” brain, living in a house made of wood was a concept that should have died out with the war. I now deal with a proportion of property buyers who will only consider a weatherboard dwelling – no doubt tying it in with their own concept of what makes a “home” – usually envisioning an attractive Californian bungalow or single-fronted Victorian.
My first ‘real’ experience of high-rise accommodation didn’t disappoint. It was the Royal Domain development in Melbourne – one of the upmarket dwellings close to the top floor, and I was granted a private inspection. The apartment itself was fairly ordinary – had I walked through at ground level and been given the asking price, I’d have baulked at the offer. The fittings and fixtures were lacking in quality for the buying demographic it aimed to attract – not that you would have noticed, the main attraction was the view. I joked to the agent at the time that should I live there, I wouldn’t bother with a TV – I’d buy a good pair of binoculars instead. It promised to be far better entertainment.
The million-dollar-plus price tag was one thing, the owners’ corporation fees another. Some $18,000 a year – clearly to be expected, considering the block size and additional onsite features – but despite the agent spruiking the development’s “investment potential” it didn’t require real estate experience to assess it was about as good an “investment” as a retirement home.
The apartment above sat vacant – it had been purchased by an offshore businessman from China who only occupied it for events such as the grand final or Melbourne’s spring racing carinval. The market for this particular type of property was discretionary at best, and anything but consistent.
I’ve written numerous columns addressing the inadequacies of our high-rise culture in addressing the need for affordable accommodation. The reason I do so today is in response to a debate I had with the ACTU’s <a target="_blank" href="https://mattcowgill.wordpress.com/2013/02/06/housing-policy-its-all-connected/">Matt Cowgill</a>, who took up the challenge to express the broadly shared logic that increasing supply per se is the answer to a growing demand for affordable, well-located, accommodation.
Matt used different priced potatoes to demonstrate his well established economic theory of ‘supply vs demand”.
“There are three types of potatoes: kipfler, desiree and regular. Kipflers are expensive and not that common, whereas regular potatoes are cheap and plentiful. Desirees are somewhere in the middle.
“What would happen if some kind of bug struck the supply of kipflers, halving it overnight?”
Matt pondered, and in doing so, demonstrated that potato lovers would turn their demand to the closest equivalent – whether it be settling for a ‘regular’ type or moving from a ‘kipfler’ potato consumer to a ‘desiree’ potato consumer.
Needless to say, Matt’s theory is that property markets are connected and therefore fulfilling the needs of the “affluent” will reduce competition at the lower end of our market arena, making sure supply is readily available for the intended price demographic. In this particular discussion, we were using the abundance of new tower blocks in Melbourne as the proposed property type.
The theory when used with potatoes is sound – if I were shopping in my local supermarket and a certain brand of vegetable I needed for my evening meal were unavailable, I would settle for the next best thing – whether higher or lower priced – and make do. If a good supply were available I might choose a more expensive brand, thereby leaving a greater supply of the ‘regular’ type for those shopping with a lower budget. My choices, if consistent enough and mirrored for a long enough period of time by a large enough demographic of consumers, would evidently bear an effect on the price – the assumption is more supply equates to lower demand and a lower price.
Why doesn’t the theory hold with our current CBD high-rise supply of property? And more importantly, why are a large proportion of our towers sitting empty, with vacancy rates in the region of 8% to 10 % (SQM) and rents that hardly offer “affordable” value when compared with the established terrain?
Let me offer my own analogy: If a devastating tornado hit my local neighbourhood and I found myself without a roof over head I would also ‘make do’ – however, that’s not the reality of our buying market. Most home buyers work devilishly hard to save an initial deposit and therefore expect to see their somewhat pre-conceived idea of value represented in their purchase.
Whether you think a property buyer’s demands are unrealistic or not is irrelevant – we’re talking about a consumer market, not desperate homeless individuals who are prepared to bid on any old thing just because it fits into their budget. Therefore, if additional property is going to fulfil the needs of home buyers (or, for that matter, renters – assuming renters are also looking for a ‘home’), it needs to be done with that intention initially.
I’ve since inspected numerous high-rise/high-density developments, both in the CBD and the inner-and middle-ring suburbs where new apartment blocks are commonly five stories or more. Some are impressive in design – however, the majority are a huge disappointment. The quality of construction often shows “cracks”, and has clearly been developed to a strict “squeeze as many in as possible” budget.
 
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The reason I’ve walked through so many is because I deal with clients from all ranges of the property buying spectrum – covering budgets of $300,000 to more than $3 million and spanning a broad range of individual buyer types. The overwhelming conclusion remains that this type of property was not built with the home buyer in mind, and due to the lack of diversity in supply, fails to attract many local investors, either – a point I’ll expand upon below.
A proportion of buyers come to me with high rise (and a view) solidly envisioned, however even if they have a discretionary budget to allow a purchase in one of the better-quality developments, once presented with the alternatives their finance will allow – such as a period terrace or townhouse – along with an assessment of the fees and drawbacks high-density apartment living necessitates, their initial preference pales in comparison.
Obviously, most local home buyers prefer houses to apartments – and for the high-rise price tag of a two-bedroom apartment, there’s far more bang for buck in established accommodation that doesn’t come with the additional risks of the view being built out, a queue to get out the car park during peak-hour traffic, the extortionate owners’ corporation fees and 150 immediate neighbours, the majority of whom are renters.
For lower-budget buyers, our older established apartments seem to have been built with the home buyer in mind and are therefore more attractive – usually offering larger floor plans in smaller block sizes. Therefore when home buyer apartment shopping does occur, this is the type of accommodation that’s generally preferenced. Home buyers can get better bang for their buck.
As for first-home buyers shopping with a budget in the $300,000s – let me quote from one such buyer who had a vision of her first home being in an inner-city high-rise or high-density development due to her desire to situate in the CBD.
“The latest trend in Melbourne is to build tiny New York-style apartments and then charge amazingly high prices for them. Most of the places advertised in or near the city for $350,000 or less are in student housing buildings and boast two small cupboards that might just accommodate a single bed each, and a slim hallway which doubles as a kitchen and living area... In this sub-$400,000 price range, a L-A-R-G-E two-bedroom apartment is considered to be 44.5 square metres, which would make an excellent studio apartment or a reasonable one-bedroom apartment.”
The author is now fully aware that $350,000 for the “new” (or even 10 year old) supply on offer is not value for money – yet a few suburbs out, in a different market all together, she can afford an established comparatively larger apartment with good proximity to shops and train station, with the substantial cash advantage of avoiding the high owner corporation fees that fund a swimming pool she’d have probably have been too busy to use. It just required a little guidance to open her eyes to established alternatives she is prepared to settle for.
If by chance she had found a high density ‘L-A-R-G-E’ apartment suited to her lifestyle, she may have come down with a bump when trying to acquire finance – it’s well known banks have strict lending criteria for first-home buyers trying to purchase small apartments in high-density accommodation. Each lender has its own restrictions relating to internal floor space, and most require a larger deposit to offset the risk.  Clearly the banks recognise high-density accommodation is not always easy to offload in a default situation.
Well, as I pointed out last week – individuals who can afford to invest in property are hardly leaving lower priced stock for the home buyers on a compromised budget. Because of our current negative gearing tax benefits – the best established property in our inner suburban market that does appeal to the first-home buyer demographic is a hotbed of investor demand, with over 90% opting to place their dollars in this sector. Investors understand, if they purchase properties home buyers also desire, the value of their property is likely to attract interest throughout all stages of the “property cycle” and therefore speculation is rife. First-home buyers are caught out at every inner-city hurdle – they face restrictions for new, and somewhat unequal ‘deepest pockets wins’ competition for established.
So who is benefiting from the abundance of new and proposed high-density developments? Well, the typical investor of new accommodation is the foreign demographic who face no restrictions when purchasing off the plan. In China – unlike Australia – older developments are poorly constructed and undesirable for home buyers; however the newer developments are highly.
Investors of these developments are seeking a good yield – however, a percentage of foreign investors also allow their property to sit vacant – once again it’s a cultural bias with the mindset of keeping the interior in ‘as-new’ condition for a future sale.
If someone can explain to me how building apartment blocks which are nether affordable or desirable for a large proportion of home buyers – and despite our tight rental market, contain a large proportion of units left to sit vacant – can bring down the cost of accommodation. I’d be the first marching the streets in favour of the plan.
As it is, it seems they were never built for home buyers in the first place. A couple of years ago when the boom of Melbourne’s’ high-rise construction kicked in, the City of Melbourne’s website described the new developments as being “relatively small one- and two-bedroom apartments largely targeted at the student market and owned by investors.” So has high-rise combated affordability for a diverse property shopping demographic? No – because it was never built with the intention of doing so.  Our property market is no longer about home buyers – it’s a money-making wheel, with every Tom Dick and Harry hoping to make a buck in the process.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
 
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Why high-rise accommodation will not solve our housing shortage

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Since the GFC, money has been flowing to bank deposits. That is, low-risk, low return options where the saver has an element of "government guarantee" and money is either on hand or has a fixed return for a fixed term.
The move to cash has been at the expense of investment in shares. The market capitalisation of Australian equities in June 2007 was $1.59 trillion, and by June 2012 it had fallen to $1.18 trillion.
Correspondingly, total term deposits with Australian banks equaled $196.2 billion in June 2007, rising to $533.5 billion in June 2012.
There are signs that the market is warming again to the share markets. Should you join this trend?
There are three considerations: your goals, your timeframe and your risk tolerance.
A goal – for instance, to save for retirement – will tell you how much you need to save and how much your savings must earn. Large goals need the compounding effect of high yields over the long term, whereas small goals don’t need so much planning.
Your timeframe also dictates where you put your money. Bank deposits are useful for short-term goals because they allow ready access and they are government guaranteed.
Shares favour the long term. They are a good investment for young savers or those in mid-life cycle because the performance of shares is best measured over a decade.
This is where appetite for risk comes in. Over the past decade, Australian shares returned 9.1%, compared with the performance of cash at 5.4%.
However, in any year – or any week – of the 10-year performance of shares, the value of what you own can fluctuate, sometimes wildly. So you need to weather the ups and downs over a long cycle in order to get your 9%.
If your retirement falls in a month where the share market takes a significant downturn, and you rely on shares, you’ll have to wait for a market correction.
This is not an either/or argument. Strong investment portfolios are diversified, and operate as a matrix in how they deal with goals, timeframes and risk appetite. This usually means they have a mix of cash, shares, property and bonds.
Younger people aiming for a large retirement nest egg should weight their investments towards equities and property, and those approaching retirement should favour having a paid-out property and a weighting to cash investments because they don’t have the time to reverse any losses on shares.
One of the warnings I would give to those who want to shut out all risk, is that economies change and so do opportunities. My team at YBR is currently concerned about the chance that long-term interest rates will rise over the next two years, caused by economic growth and a return to consumer confidence.
If this happens, how many conservative investors will have money locked away in fixed-rate bonds? They’ll be losing out while owners of shares, bank deposits and floating rate bonds enjoy higher interest rates as economies expand.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Why you should have property, shares and cash in your investment portfolio: Mark Bouris

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In its first significant deal under the new name of Federation Centres, the former Centro business, has agreed to sell half-shares in four malls and a convenience centre to the Industry Superannuation Property Trust (ISPT), one of Australia’s biggest unlisted property trusts.
The four sub-regional shopping centres are Mandurah in WA, Cranbourne and Karingal in Victoria and Warriewood in NSW. The convenience centre is Halls Head also located in Mandurah, WA.
The transaction with ISPT represents a 2.9% premium to the June 30 2012 book value (pre-transaction costs) and average yield of 7.49%.
The signing of the co-ownership agreement with ISPT, follows the deal in May last year for the privately-owned Perron Group to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.
The three shopping centres in this deal were the Colonnades in South Australia, The Glen in Victoria and the Galleria in Western Australia in a deal brokered by Simon Rooney, Australian head of retail investments at Jones Lang Lasalle.
Commenting on the latest deal, Federation Centres managing director and CEO, Steven Sewell said the transaction with ISPT is part of the transformation of the business under the new name.
“When combined with the previous Perron Group strategic alliance, on completion of this transaction with ISPT, Federation Centres will have undertaken co-ownership in eight centres with a gross value of $2.1 billion.
“With more than $1 billion in capital raised from these co-ownership arrangements, we will be well positioned to grow our business through redevelopment projects across our portfolio of quality Australian shopping centres and further acquisitions of syndicate properties.
Federation Centres will continue to manage the shopping centres to be held with ISPT.
ISPT has over $8 billion of property assets.
Subject to the satisfaction of conditions, the transaction is expected to be completed on or before 31 July 2013. Proceeds from the sale, net of transaction costs, will initially be applied to reducing debt facilities.
Daryl Browning, CEO of ISPT said he was looking forward to working with Federation Centres to “explore future development opportunities for the co-owned shopping centres to enhance returns for our investors”.
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Federation Centres sells half-shares in four malls to ISPT for $371.4 million

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The housing market is responding to cash rate cuts which began in November 20011 says the RBA in its February statement on monetary policy released today.
While warning that near-term prospects for business investment outside the mining sector continue to be subdued, the RBA said there are “signs that the housing market is responding to the series of interest rate cuts over the past 15 months”.
“Since the middle of 2012, residential building approvals have increased, rental yields have moved higher and prices in the established housing market have picked up,” added the RBA.
The RBA notes other positive developments in the housing market.
“Overall, improving conditions in the housing market are expected to continue to provide support to dwelling investment, while non-mining business investment is forecast to pick up gradually over time.”
And it provides commentary on the improvement in capital city house and unit prices.
“Australian capital city dwelling prices have risen by 4% since their trough in mid-2012.
“Recent price rises have been relatively broad based, with all state capitals recording higher prices over the three months to January.
“Some other indicators also point to a strengthening in the established housing market. Auction clearance rates in Sydney and Melbourne have continued to rise from their lows in late 2011 and early 2012.
“Private sector surveys indicate that, on balance, households expect house prices to rise further over the year ahead. Housing loan approvals increased moderately over the second half of 2012, underpinned by loans to investors and repeat buyers, although they were little changed relative to the outstanding stock of housing credit," says the RBA.
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Housing market is responding to rate cuts with many other positive signs: RBA

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Andrew Hay, the London-based Knight Frank head of its global residential division, says his clientele base was typically cautious, but cashed-up and well researched.
He says they are looking investing where their money is safe and where they can get to enjoy.
'There is a lot of money sitting on the wall waiting.
"Buyers are very savvy. They are very price sensitive. And they quickly understand what's quality.
"However, they deliberate longer than they use to," he told Property Observer during a trip to Australia this week.
'The safe haven aspect is the overriding concern," he added. And educational needs drives a lot of initial inquiry.
<img alt="andrewhay" src="/images/stories/2013/02/andrewhay.jpg" width="470" height="311">
He suggests as price points come down globally, these buyers are waiting for when they perceive the market is bottoming out particularly the Asian market.
He's noticing a trend of families making multiple purchases in the same location.
Asked the necessary requirements to be in place to instill confidence for buyers, Hay suggests there are "so many confusing messages coming out of the media."
He suggests buyers are needing a bit of certainty.
"There is huge wealth in Asia from emerging economies. China is only beginning to scratch the surface. There is a vast market still to come from China.
"And the whole of the Arab world is in turmoil so huge funds are flowing into Dubai which is being directed towards Malaysia, Indonesia and beginning to look towards Australia."
He said his clientele are looking for legal systems they can trust and a currency they regard as stable.
Since 2007 Knight Frank has produced an authoritative <a href="https://www.knightfrank.com/wealthreport/" target="_blank">Wealth Report </a>that tracks 4000 people with a wealth collectively totalling more than €40 billion.
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