<p>Gold Coast-based developer <a href="https://www.apartments.com.au/developers/ignite-projects">Ignite Projects</a> has lodged a Development Application for a landmark $120 million precinct set to transform the southern gateway of the much-loved Spit.</p>

<p>Positioned at the most prominent entry point to the iconic peninsula, the project has been designed with a strong focus on architecture, public space, heritage and connectivity, delivering a revitalised parkland setting that invites locals and visitors to engage with the Broadwater.</p>

<p>Central to The Isles proposal is a significantly upgraded public realm, including landscaped open space, a new waterfront café, and a family-friendly park featuring a naval-themed playground, open lawns and improved pedestrian connections.</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="de83a270-6091-4b26-bed0-86f9248e7f9e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%201.jpg?VersionId=vt79HlCOwV9F7eLQe9.Z3bv9JGLMaSP2" /></p>

<p>The design retains and celebrates key elements of the site’s history. The training mast from the vacant and degraded naval cadet building, which forms part of a former Navy minesweeper, will be preserved. The existing Navy Memorial will be relocated and upgraded in collaboration with the RSL, allowing it to be publicly accessible for the first time in years.<br />
&nbsp;<br />
Heritage-listed Humphreys Boat Shed remnants will remain and be incorporated into the landscape, while the site’s established Norfolk Pines will be retained, reinforcing the area’s character and sense of place. The enhanced parkland will ultimately create a long-term community asset at the entry to The Spit.<br />
&nbsp;<br />
The Development Application (DA) lodged with Gold Coast City Council includes 28 waterfront apartments across three levels, ranging in size from 145sqm to 383sqm, designed as a feature landmark within the precinct and complement the public domain.</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="bbf94e00-b56a-47fb-a15d-3d17b0b1ec76" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%203.jpg?VersionId=A0vmBNE_KohYJo1EoZcmF5IVW4tT5aDo" /><br />
&nbsp;<br />
Ignite Projects Director Josh Foote said the project as a whole had been carefully shaped to deliver a meaningful outcome for the wider community, not just future residents.<br />
&nbsp;<br />
“This is about more than delivering opulent apartments – it’s about creating a welcoming and memorable gateway to The Spit that people can enjoy every day,” Mr Foote said.<br />
&nbsp;<br />
“We’ve worked hard to ensure the public realm is a central part of the project, from the landscaped parklands and family-friendly spaces through to the preservation and celebration of important local heritage.”</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="443bbde5-8221-45f8-a549-dad2623df20c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%204.jpg?VersionId=iUl6nc.sHkjMdo_1RigwbwUz_celHJ3H" /><br />
&nbsp;<br />
Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, The Isles adopts a considered subtropical approach, with the building form shaped to maximise natural light, cross ventilation and views to the Broadwater and surrounding parklands.<br />
&nbsp;<br />
Architect Rafael Contreras said the design responded directly to its unique coastal setting.<br />
&nbsp;<br />
“Rather than a typical built form, the architecture has been shaped by performance and experience – from optimising outlook and privacy to creating a strong connection to landscape and climate,” Mr Contreras said.<br />
&nbsp;<br />
“A central landscaped courtyard allows light, air and greenery to permeate the building, while the articulated façade introduces movement and rhythm inspired by the Broadwater.</p>

<p>“The Isles will create a place where people can gather, relax and connect with the water, while also delivering a refined residential product that responds to its unique setting.”</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="1089570d-1120-4302-9900-fb9f75c75c26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%205.jpg?VersionId=pl9qmKZNbaL3A7XjmD7sjhLwmXaqzzLZ" /><br />
&nbsp;<br />
The DA relates to the residential and public realm components, with a proposed boutique marina to be progressed as part of a future stage, subject to separate approvals.<br />
&nbsp;<br />
The Isles is being delivered under The Spit Master Plan, a collaborative vision to create a new residential, tourism, leisure, natural environment and cultural heritage hub on the iconic and much-loved peninsula.&nbsp;<br />
&nbsp;<br />
Ignite Projects has an established track record delivering premium residential projects across the Gold Coast, including The Monaco at Main Beach and Cabana at Palm Beach.<br />
&nbsp;<br />
Sales for The Isles are expected to commence in coming months from an on-site display suite, with construction targeted to begin later this year, subject to approvals.</p>


Joel Robinson

Ignite Projects unveils exciting details of landmark gateway precinct for the Spit

<p data-end="252" data-start="53">The Federal Government’s sweeping changes to negative gearing and capital gains tax could trigger an unintended consequence: a surge of investor demand into the new and off the plan apartment sector.</p>

<p data-end="558" data-start="254">While Treasurer Jim Chalmers has framed the reforms as a way to improve housing affordability and rebalance the tax system, the carve-outs for newly built housing are already positioning off the plan apartments as one of the few remaining tax-effective property investment plays.</p>

<p data-end="966" data-start="560">Under the changes handed down in the Federal Budget, investors purchasing established properties after budget night will no longer be able to access negative gearing benefits. The Government will also replace the long-standing 50 per cent capital gains tax discount with a new inflation-indexation model and introduce a minimum 30 per cent tax on gains from July 2027.</p>

<p data-end="1004" data-start="968">However, there is a major exemption.</p>

<p data-end="1268" data-start="1006">Investors buying new builds, including off the plan apartments, will still be eligible for negative gearing and will be able to choose between retaining the current 50 per cent CGT discount or adopting the new indexed model.</p>

<p data-end="1348" data-start="1270">That distinction is expected to reshape investor behaviour almost immediately.</p>

<p data-end="1625" data-start="1350">For years, established housing has dominated investor purchases because of its perceived lower risk, immediate rental returns and stronger historical capital growth. But with the tax advantages now heavily skewed toward new housing supply, the economics are changing rapidly.</p>

<p data-end="1685" data-start="1627">The Federal Government has been explicit about its intent.</p>

<p data-end="1926" data-start="1687">“The housing market and tax system are broken,” Chalmers said ahead of the Budget, arguing that existing concessions were disproportionately rewarding speculation rather than supporting housing supply.</p>

<p data-end="2115" data-start="1928">The Government says the reforms are designed to encourage investment into new housing rather than established stock, a move aimed at increasing supply during a prolonged housing shortage.</p>

<p data-end="2319" data-start="2117">According to the official Budget papers, limiting negative gearing to newly built homes is intended to “better align tax incentives with housing supply objectives.”</p>

<p data-end="2471" data-start="2321">For the apartment development sector, particularly the off the plan market, the changes could become one of the strongest investor tailwinds in years.</p>

<p data-end="2790" data-start="2473">Developers across Sydney, Melbourne and Brisbane have spent the past two years battling elevated construction costs, higher interest rates and subdued investor confidence. Many projects have struggled to secure sufficient pre-sales to commence construction, particularly in markets heavily reliant on investor demand.</p>

<p data-end="2839" data-start="2792">The Budget changes may now alter that equation.</p>

<p data-end="3036" data-start="2841">Investors seeking tax-effective property exposure will increasingly find themselves funnelled toward newly built apartments simply because established dwellings no longer offer the same benefits.</p>

<p data-end="3362" data-start="3038">Commonwealth Bank described the reforms as one of the most significant shifts to residential property investment settings in decades, noting that the package is centred around “limiting negative gearing for residential property to new builds” while replacing the existing CGT framework.</p>

<p data-end="3427" data-start="3364">That could have profound implications for the apartment sector.</p>

<p data-end="3813" data-start="3429">Off the plan apartments already hold several advantages for investors. Purchasers typically secure a property at today’s price while settlement occurs years later, allowing time for capital growth and reducing the upfront capital burden. Brand-new apartments also generally attract depreciation benefits, lower maintenance costs, and stronger appeal to renters seeking modern amenity.</p>

<p data-end="3943" data-start="3815">Now, they may also become one of the only residential property types still offering the full suite of historical tax advantages.</p>

<p data-end="4133" data-start="3945">Industry analysts expect investor demand to increasingly migrate toward projects that can clearly demonstrate strong rental demand, transport connectivity and long-term supply constraints.</p>

<p data-end="4429" data-start="4135">The shift is likely to be particularly pronounced in apartment markets already underpinned by structural undersupply, including inner Brisbane, the Gold Coast, parts of Sydney’s Lower North Shore and select Melbourne precincts where new apartment commencements have collapsed over recent years.</p>

<p data-end="4529" data-start="4431">The reforms also arrive at a time when apartment supply nationally remains critically constrained.</p>

<p data-end="4844" data-start="4531">Australia is already struggling to meet the Federal Government’s target of delivering 1.2 million new homes over five years. Construction feasibility pressures have delayed or shelved thousands of apartments across the country, particularly as building costs remain elevated and financing conditions remain tight.</p>

<p data-end="5045" data-start="4846">Critics of the Budget changes argue the reforms could reduce overall investor participation in the housing market and place upward pressure on rents by discouraging investment in established housing.</p>

<p data-end="5209" data-start="5047">Some economists estimate the measures could reduce housing supply over the longer term if overall investor appetite weakens.</p>

<p data-end="5331" data-start="5211">However, the Government is betting that redirecting investor capital into new housing supply will offset those concerns.</p>

<p data-end="5584" data-start="5333">“To continue to incentivise construction of new housing, investors building new residential properties will be able to choose either the 50 per cent CGT discount or the new arrangements,” the Budget papers stated.</p>

<p data-end="5762" data-start="5586">That wording has been closely watched by the development industry because it effectively positions new apartments as the preferred investment class within residential property.</p>

<p data-end="5840" data-start="5764">For off the plan developers, the reforms could become a powerful sales tool.</p>

<p data-end="6035" data-start="5842">Projects that have increasingly relied on owner-occupier demand may once again attract investors seeking to preserve the tax advantages still attached to newly built housing before the July 2027 changes take effect.</p>

<p data-end="6133" data-start="6037">The reforms are also expected to sharpen the divide between established and new housing markets.</p>

<p data-end="6303" data-start="6135">Rather than a broad investor retreat from property altogether, many analysts expect a redistribution of capital toward sectors still supported by Government incentives.</p>

<p data-end="6495" data-start="6305">That could create stronger demand for apartment projects in key urban growth corridors and transit-oriented precincts where population growth, migration and rental shortages remain elevated.</p>

<p data-end="6626" data-start="6497">The policy direction also aligns with the Government’s broader push toward increasing housing density in established urban areas.</p>

<p data-end="6941" data-start="6628">Across Sydney, Brisbane and Melbourne, planning reforms are increasingly encouraging higher-density apartment development around transport infrastructure and activity centres. By maintaining tax incentives for new housing, the Federal Government is effectively reinforcing that agenda from a taxation perspective.</p>

<p data-end="7126" data-start="6943">For apartment developers who have spent years navigating subdued investor confidence, the changes may ultimately become the catalyst that reactivates parts of the off the plan market.</p>

<p data-end="7259" data-start="7128">While the broader property sector is still digesting the long-term implications of the Budget, one thing is already becoming clear.</p>

<p data-end="7366" data-start="7261">The era of investors buying established apartments and houses primarily for tax advantages may be ending.</p>

<p data-end="7444" data-start="7368">But for off the plan apartments, the investment story may just be beginning.</p>

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<p><button disabled="disabled" type="button">You have not enough Humanizer words left. Upgrade your Surfer plan.</button></p>


Investors to flood off the plan apartment market?

<p>Adding to Chatswood’s growing skyline, <a href="https://www.apartments.com.au/new-apartments/the-anderson-chatswood-54-56-anderson-street-chatswood-nsw-2067">The Anderson</a> is grounded in a simple principle: apartment living in a major centre does not have to come at the expense of space and outlook.</p>

<p>Set on Anderson Street in the heart of <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a>, the new residential tower, a collaboration between developers <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a> and <a href="https://www.apartments.com.au/developers/huirong-group">Huirong Group</a> with architecture and interiors by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, will introduce 122 apartments that prioritise generous proportions, considered orientation, and a strong connection to the surrounding heritage precinct.</p>

<p>The design originated from a Design Excellence Competition, where AJC proposed a building that combines suburban-style apartment scale with the density expected in a transport-rich centre. The development will include more than 1,800 square metres of retail and commercial space at street level, landscaped communal roof terraces, and a ground-floor pocket park framed by canopy trees. Together these elements aim to create a building that integrates with Chatswood’s evolving streetscape while maintaining a strong residential focus.</p>

<p>[smartcode_project:default project_id=151353 project_image_fid=353250]</p>

<p>A key driver behind the architecture was the desire to deliver family-sized apartments rarely seen in the Chatswood market. The Anderson includes a mix of one to four-bedroom apartments, with around 35 per cent of the residences configured as three or four-bedroom homes. At the top of the building, two double-storey penthouses span approximately 200 square metres each, reinforcing the project’s emphasis on scale and long-term liveability for both downsizers and intergenerational households.</p>

<p>Orientation and outlook were central to the planning of the building. The apartments are positioned to maximise views to the north and east across Chatswood’s heritage precinct, with upper levels capturing glimpses of the Pacific Ocean. South-facing apartments gain distant views toward the Sydney CBD and Harbour Bridge, while the building’s configuration intentionally reduces western exposure at lower levels to minimise overlooking toward the nearby railway corridor.</p>

<p>The external design references the character of the surrounding conservation area without replicating it directly. A brick podium anchors the building to the street and introduces a series of architectural portals that draw inspiration from the nearby Chatswood Presbyterian Church. Above this base, the tower shifts to a lighter, more open expression defined by horizontal lines and carefully detailed balconies that balance privacy with outward views.</p>

<p>[smartcode_project:default project_id=151353 project_image_fid=353254]</p>

<p>Toward the top of the tower, AJC introduces a distinctive lantern-like element formed by sliding screens. These screens provide both solar shading and privacy while also creating a visual marker for the building within the Chatswood skyline. The feature reinforces the architectural intent of the project, a structure that is visually refined while still responding to the practical requirements of apartment living.</p>

<p>Inside the residences, interior architecture focuses on clear spatial flow and practical everyday use. Open-plan living areas connect directly to large balconies, extending the internal living spaces outward and allowing natural light to move deeper into the apartments. Kitchens are designed as central working spaces with premium appliances and carefully selected materials, positioned to serve both daily living and entertaining.</p>

<p>[smartcode_project:default project_id=151353 project_image_fid=353256]</p>

<p>Bathrooms follow a similarly restrained design language, using refined fixtures and materials to create calm, functional spaces, while wardrobe areas adopt a gallery-style layout with integrated lighting and generous storage. These elements reflect a broader design approach that prioritises clarity, functionality, and durability over decorative gestures.</p>

<p>Positioned just a short walk from Chatswood Interchange, residents will have direct access to rail, metro, retail, and dining. The Metro extension allows travel from Chatswood to Martin Place in approximately 11 minutes, placing the CBD within easy reach for residents while maintaining the convenience of a walkable North Shore neighbourhood.</p>

<p>One-bedroom apartments at The Anderson start from $1,022,000.</p>

<p>[smartcode_project_cta:default project_id=151353]</p>


How AJC designed The Anderson to bring oversized apartment living to Chatswood

<p><a href="https://www.apartments.com.au/developers/bridgewell-development">Bridgewell Capital</a> has lodged plans for a major mixed-use apartment development in the heart of Maroubra, seeking a significant uplift in height and density controls to deliver 120 apartments and a 120-place childcare centre near Maroubra Junction.</p>

<p>The State Significant Development application, filed through the NSW Government’s Housing Delivery Authority pathway, covers a 3,270 sqm amalgamated site at 251-257 Maroubra Road and 133-135 Garden Street. The proposal includes a concurrent rezoning that would increase the maximum building height from 12 metres to 35.6 metres and lift the floor space ratio to 4.02:1.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the project would replace a mechanic’s workshop and several detached homes with a 10-storey residential building above four basement levels.</p>

<p>The scheme comprises 120 apartments, including 27 affordable housing units to be managed by a community housing provider for 15 years, alongside 203 basement car spaces and 92 bicycle spaces. A childcare centre occupying nearly 900 sqm of floor area would sit at ground level and be capable of accommodating 120 children and 22 staff.</p>

<p><img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="038a0639-f9e4-4303-8fcc-d43e73fa480f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20pers.png?VersionId=eGBElxmNqJW.YF3JFYgHTnPgAstdyXR3" /></p>

<p>According to the Design Report, the project has been conceived as a “gateway proposal” that responds to Maroubra’s evolving urban character and its proximity to the town centre.</p>

<p>“Designed to complement the character of Maroubra’s town centre, this gateway proposal features a building scale that matches its surroundings,” the report stated.</p>

<p>“It integrates residential units above a ground-level childcare centre, fulfilling the strategic objectives of the Randwick City Council Masterplan.”</p>

<p>The apartment mix is weighted toward larger residences aimed at families and downsizers, reflecting changing demographics in the Randwick LGA and increasing demand for medium-density housing close to transport and amenity.</p>

<p>BKA Architecture said the proposal seeks to reinforce Maroubra Road as a civic spine while improving the pedestrian experience around the site through landscaping and upgraded public interfaces.</p>

<p>“The design capitalises on the following site opportunities: reinforcement of Maroubra Road as a civic spine, enhancement of pedestrian pathways and the public interface via new landscaping, and strong market demand for two and three-bedroom apartments to support families and down-sizers,” the Design Report noted.</p>

<p><img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="ee509779-3c7e-4918-b03d-761c785459d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20site.png?VersionId=eZC4Ruyn.C7O.Qwfr1SVeP5.ds1c5.66" /></p>

<p>The building has been designed with setbacks and articulation intended to transition between the commercial intensity of Maroubra Junction and the surrounding lower-scale residential neighbourhoods. Communal open space is proposed on level one, while upper-level apartments would secure views towards Port Botany, Maroubra Beach and Sydney’s eastern suburbs.</p>

<p>The development sits around 200 metres east of the Maroubra Junction intersection of Anzac Parade and Maroubra Road, within one of Randwick’s identified strategic centres. The site is close to Pacific Square Shopping Centre, major bus routes, schools, parks and future cycling infrastructure proposed under the Maroubra Junction Masterplan.</p>

<p>The Maroubra proposal aligns with broader NSW Government initiatives encouraging higher-density housing near established centres and transport corridors, particularly where affordable housing is incorporated.</p>

<p>Bridgewell is also working on a <a href="https://www.apartments.com.au/news/qld/goldfields-sets-the-stage-as-quartet-milton-launches">new 55-unit project in Killara</a>.</p>


First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre

<p>National diversified developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has launched its latest Brisbane apartment project, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet Milton</a>, marking its entry into the sought-after inner-city suburb just two kilometres from the CBD.</p>

<p>The circa $100 million development will rise 18 storeys and deliver 131 apartments, offering a mix of one, two-, and three-bedroom residences.</p>

<p>Ideally located on Manning Street, Quartet residents will be within 300 metres of Milton Station, 500 metres from the Milton Ferry Wharf, and a short walk to Milton Markets, the iconic Park Road, as well as a range of breweries and cafés.</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367993]</p>

<p>Designed by architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, the building features a simple, gridded façade paired with generous glazing to enhance views, maximise aspect, and capture both sunrises and sunsets from within the apartments and their generously sized balconies.</p>

<p>Residents will have access to a 1,000 sqm rooftop, curated to balance wellness and entertaining, in response to increasing demand for wellness-focused shared spaces.</p>

<p>"We've approached Quartet Milton as a complete lifestyle offering, not just apartments, but a place where the design, amenities, and location all work together in a meaningful way," says Goldfields Managing Director Lachlan Thompson.</p>

<p>"Buyers are looking for that sense of confidence, knowing the vision has been carefully thought through not just by us as developers, but by all our consultants appointed to bring this together, and that it will be delivered to the standard they expect."</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=368000]</p>

<p>Cera Stribley Co-Founder and Managing Principal Domenic Cerantonio said the rooftop is designed to feel like a place "you'd genuinely use every day."</p>

<p>"A 25-metre pool framed by city and mountain views, wellness areas, and private dining spaces for evenings with friends create a setting designed for year-round comfort and effortless Brisbane living."</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367999]</p>

<p>In addition to the 25-metre pool, the rooftop will include a sauna, cold plunge, fully equipped gym, and zen gardens, all complemented by panoramic views of the city and river.</p>

<p>While the building is expected to appeal predominantly to owner-occupiers, Goldfields anticipates interest from investors seeking strong rental returns, driven by the project's design, location, and the city's projected capital growth in the lead-up to the 2032 Brisbane Olympics.</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367991]</p>

<p><a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>, widely regarded as one of Brisbane's most desirable inner-ring suburbs due to its lifestyle offering and proximity to the CBD, has experienced a shortage of new apartment supply in recent years.</p>

<p>Goldfields is already active in the Brisbane residential market through its Ripley Valley masterplanned community, Hayfield. The 109-hectare neighbourhood is already home to more than 300 families and features a large community park.</p>

<p>Plans for the precinct include a 4 km running track, future schools, and retail and commercial amenities, all within a 35-minute drive of the Brisbane CBD.</p>

<p>Goldfields also plans to deliver a new mixed-use tower at 88 Robertson Street in Fortitude Valley, within the James Street precinct. The project will include 16,000 sqm of boutique commercial space, a level of wellness facilities, and a rooftop restaurant and event space, akin to Goldfields House in South Yarra, its flagship mixed-use development on Chapel Street, which is crowned by the Beverly Rooftop bar, one of Melbourne’s best-known venues.</p>

<p>[smartcode_project_cta:default project_id=108736]</p>


Goldfields sets the stage as Quartet Milton launches

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

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<p>Earlier this week the Australian Bureau of Statistics (ABS) released their Residential Property Price Indexes for the June 2017 quarter.  </p>
<p>The data confirmed what the CoreLogic Home Value Index has already told us, the rate of growth in the housing market is slowing, particularly so in Sydney.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage1.png" alt=""></p>
<p> <br>Over the June 2017 quarter, the ABS Index shows combined capital city dwelling prices increased by 1.9% while the CoreLogic Home Value Index showed an increase of a lower 1.6%.  </p>
<p>As the above graph shows, the results of both indices are closely aligned.  The CoreLogic data is already available to August and shows a further cooling in the rate of growth over the three months.  </p>
<p>Given this we can expect the trend towards slower growth to hold over the September 2017 quarter.  In fact, the daily movements in the CoreLogic series is suggesting Sydney values trended slightly lower over the first 20 days of September.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage2.png" alt=""></p>
<p> <br>On an annual change basis both indices also indicate a slowing of the rate of growth.  Over the 12 months to June 2017, the ABS reports combined capital city dwelling prices rose by 10.2% while CoreLogic data shows capital city dwelling values increasing by 11.1%.  Over the 12 months to August 2017, CoreLogic data shows that dwelling value growth has slowed to 9.7% and it is expected that the ABS data once available will also show a similar slowing.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage3.png" alt=""></p>
<p> <br>Sydney is showing clearer signs of a slowdown than other capital cities and that is evident in the above chart.  Over the June quarter, the ABS showed a change of 2.3% compared to the CoreLogic series which showed a lower 1.6% change.  The CoreLogic data to August shows increasing evidence of the Sydney market cooling with values having increased by a much lower 0.3%.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage4.png" alt=""></p>
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<p><br>The annual series also show signs of softer growth in Sydney with ABS data recording a change of 13.8%, over the 12 months to June down from 14.4% in March.  While the CoreLogic series recorded an annual change to June of 16.4% compared to 15.5% in March. Meanwhile, the latest data for August shows that annual growth in Sydney dwelling values has slowed to 13.0%.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage5.png" alt=""></p>
<p> <br>The above chart shows the annual change in values across each index over the 12 months to June 2017.  Despite being two different methodologies you can see that the rates of change across both metrics are quite similar.  They show strong growth in Sydney, Melbourne and Hobart, reasonably strong growth in Canberra, moderate growth in Brisbane and Adelaide and ongoing declines in Perth and Darwin.</p>
<p>Click to enlarge </p>
<p><img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage6.png" alt=""></p>
<p><br>The CoreLogic Hedonic Index provides a much more timely and granular view of housing market conditions (both geographically and across product types) and the trends are interesting.  It shows a substantial slowdown in growth in Sydney and a more moderate slowing in Melbourne.  It indicates that growth has accelerated in Hobart and has accelerated marginally in Canberra and Brisbane.  </p>
<p>Adelaide values are increasing at pretty much the same rate as they were in June while the declines in Perth and Darwin are greater, quite significantly so in Darwin.</p>
<p>Overall the data highlights the value of having a selection of indices with which to analyse the market.  </p>
<p>It also shows how valuable more timely measures are.  </p>
<p>When you are analysing Australia’s single largest asset class, timely insights are extremely important to allow those participants in the housing market to be able to make accurate decisions in as close to real time as possible.</p>
<p>It’s also a timely reminder that there is no single ‘Australian’ housing market.  </p>
<p>While headline growth rates provide a macro-view on the market, each capital city and region of the country is showing its own unique housing market dynamic which is influenced by local demographic and economic trends as well as supply factors.</p>
<p><em>Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank"><span class="s2">here</span></a>.</em></p>
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ckusher-ujnxiKuFQs

Rate of growth in the housing market is slowing

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<div>The latest population growth figures put an altogether different slant on Australia's assumed apartment gluts. </div>
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<div>In Melbourne, the risks have receded dramatically, at least for now.</div>
<div> </div>
<div>In fact, with the state's estimated populated growth apparently tracking at the highest level in six decades, it would be all but impossible for the market to become 'oversupplied' until this rate of growth in the headcount slows down. </div>
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<div>Now Queensland <strong><span style="text-decoration: underline;">really</span></strong> went on an apartment construction mission from 2014 forth, to the extent that there is a now a clear oversupply of units in some locations, particularly inner city Brisbane, with more supply still to come online. </div>
<div> </div>
<div>The latest figures show that although the glut will have an impact for some time to come, the market will right itself eventually.</div>
<div> </div>
<div>Indeed, the reacceleration of population growth to +75,400 per annum is exactly what Queensland's housing markets needed to help absorb the stock, while new apartment starts are now understandably and visibly slowing to a crawl. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/29/B1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/29/B1.jpg" alt=""></div>
<p> </p>
<div>In Hobart, commencements have yet to pick up dramatically, despite electric growth in house prices and rents.</div>
<div> </div>
<div>Because the Hobart market demands houses and not apartments, in theory the supply response should come much more quickly (apartment projects can take ages to build, comparatively speaking).<br><br>And we know from previous cycles that the market has the potential to deliver much greater supply - but to date it hasn't happened.<br><br>Developers from the mainland are not that keen to get involved, perhaps, given the logistical challenges.<br><br>I haven't been down to Tassie for a while - and I got seasick when I last went - so I have no feel whatsoever for activity on the ground. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">First homebuyer demand</span></strong></div>
<div> </div>
<div>I noted here previously that the 2016 Census confirmed an enormous surge in 25-34 year olds.</div>
<div> </div>
<div>Due in part to housing affordability challenges, many are not yet forming households, though they might begin to do so if capital city apartment prices do ever slide in any meaningful way.<br><br>
</div>
<div>ANZ research this week suggested that there is significant latent first homebuyer demand, and ANZ believes that this could potentially keep an effective floor under prices, which is what I concluded from the Census figures back in June too.</div>
<p> </p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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j.ballantyne1990-6AQqhLzZaK

Australia's assumed apartment gluts

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<div>The 2016 Census showed that Australia still has an ageing population, and the number of deaths continues to rise to record highs, in turn meaning that the natural increase in the population has been slowing. </div>
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<div>The ageing of the population has been combated through the immigration programme, which is largely - if not exclusively - tilted towards younger migrants into Australia.<br><br>While new government figures show that 457 visa issuance is falling, student visas are recording double digit rates of growth, and now sit at the highest level on record.<br><br>The rising tide of international students will largely impact the inner suburbs of Melbourne and Sydney. </div>
<div> </div>
<div>And annual net overseas migration has really picked up the pace over the past six quarters, up by +30 per cent to +231,890 in the March 2017 quarter. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/28/2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/28/2.jpg" alt=""></p>
<div>This surge in net overseas migration has pushed the annual national rate of growth in the estimated resident population back up to +1.6 per cent or +389,072. </div>
<div> </div>
<div>Population growth in the seasonally strong March quarter was particularly stark in 2017 at +126,138. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/28/3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/28/3.jpg" alt=""></p>
<div>Headcount growth remains a bit below the rate of growth seen during the headiest of the mining boom migration years, but is nevertheless very strong.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Apartment glut picked off</span></strong></div>
<div> </div>
<div>Moreover, there's a concentration issue afoot, with immigrants overwhelmingly heading to three main regions: Sydney, Melbourne, and south-east Queensland. </div>
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<div>Internally, migration continues to take folks away from Sydney (nothing new there, it's been happening for decades).<br><br>Some Sydneysiders are taking their boosted equity out to regional New South Wales - especially to the South Coast and to the Hunter - and others are heading north to Queensland.<br><br>Western Australia, Northern Territory, and South Australia continue to lose residents at a concerning rate, with internal migrants largely headed to Melbourne (for jobs) or south-east Queensland (for climate, lifestyle...and, well, hopefully a job).<br><br>A smattering of interstate migrants are also bound for Hobart and Canberra. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/28/5.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/28/5.jpg" alt=""></p>
<div>The net result has been to send Victoria's annual population growth steaming up to a gold-rush-like +149,374 or +2.43 per cent, which is a staggering rate of growth, and renders predictions of a Melbourne dwelling oversupply meaningless, at least until population growth slows. </div>
<div> </div>
<div>From a year earlier, growth in the estimated resident population has also accelerated very strongly in New South Wales (+123,296) and Queensland (+75,372).<br><br>The capital cities account for the great bulk of the population growth in the two most populous states, and somewhat less so in Queensland's case. </div>
<div> </div>
<div>Annual population growth appears to have steadied in Western Australia, after some downward revisions to previous estimates. </div>
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<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div><strong><span style="text-decoration: underline;">Build, and they may come</span></strong></div>
<div> </div>
<div>With the ageing of the population and an accelerating 'death bust', if that's not too dramatic a term, growth in headcount has become much more focused on net immigration than natural increase. </div>
<div> </div>
<div>It's interesting to note that the sharp increase in the estimated resident population over the past 18 months has largely impacted the apartment construction hotspots of Sydney, Melbourne, and Brisbane. </div>
<div> </div>
<div>A high number of apartment completions are expected in 2017, yet with the estimated resident population increasing by more than 126,000 in the first three months of the calendar year alone, the assumed apartment glut may not deliver the jolt previously anticipated. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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pwargent-M4siyDbqQY

Build and they may come: Pete Wargent on the headcount and apartment glut speculation

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<p>The northern NSW coastal city Port Macquarie is the busiest location for auctions for the upcoming weekend according to CoreLogic.</p>
<p><a href="https://www.realestate.com.au/buy/in-port+macquarie,+nsw+2444/auction-times-1" target="_blank">Port Macquarie</a> beats Manly (NSW), Wahroonga (NSW), Paddington (Qld) and Surfers Paradise (Qld).</p>
<p>According to CoreLogic auction activity across the combined capital cities is set to be quite subdued this week due to the NRL and AFL grand finals being held and the public holiday long weekend.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/28/Screen%20Shot%202017-09-28%20at%2010.32.39%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/09/28/Screen%20Shot%202017-09-28%20at%2010.32.39%20AM.png" alt=""></p>
<p>"There are 805 auctions currently being tracked by CoreLogic, down from the 2,759 held last week and only slightly lower than final results recorded over the equivalent week last year (872)," CoreLogic said.</p>
<p>"The most notable decrease in activity will be in Melbourne, where only 86 auctions are scheduled this week, while Sydney is set to host the highest volume of auctions this week, with 515 homes scheduled to go under the hammer, albeit volumes are well down on last week.</p>
<p>"Brisbane is expected to be the second busiest capital city this week, with volumes remaining relatively steady week-on-week, while the remaining capital cities are all expected to see a lower volume of auctions."</p>
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<p><img src="https://www.urban.com.au/images/2017/09/28/Screen%20Shot%202017-09-28%20at%2011.04.25%20AM.png" alt=""></p>
<p>In Port Macquarie, a three bedroom house one block from the beach at <a href="https://www.realestate.com.au/property-house-nsw-port+macquarie-126337178" target="_blank">16 Arncliffe Avenue</a> (above) is set for Saturday auction.</p>
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jonathanchancellor-7SQnKwU6yx

Port Macquarie leads grand final weekend auction listings

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<p>The strong capital gains evident across the Sydney and Melbourne housing markets have created a significant boost in wealth for home owners who were fortunate enough to own a property through the latest growth cycles.</p>
<p>However, the rate of capital gain has been remarkably lower across other markets with home owners outside of Sydney and Melbourne now seeing far less accrued equity from their housing assets.</p>
<p>On the flipside, there are also those housing markets where dwelling values have fallen, particularly in areas associated with the mining sector where a larger proportion of properties in these regions are now worth less than their original purchase price.</p>
<p>The wealth effect analysis measures two aspects of wealth accumulation via the housing sector: what proportion of dwellings are now worth double their purchase price and what proportion are worth at least 10% less than their purchase price.</p>
<p>Proportion of properties worth at least double their purchase price</p>
<p>Nationally, the proportion of dwellings where the value of the property is at least double the purchase price has slipped over the past decade falling from 45.4% of dwellings in 2007 to 39.1% in 2017.</p>
<p>The slippage is evident across regions outside of Sydney and Melbourne where capital gain conditions have been much softer over the past decade.</p>
<p>The proportion is highest in Sydney, where 48.1% of dwellings are now worth at least double what their owners paid for them; ten years ago the proportion was much lower at 37.2% Melbourne follows close behind with 47.3% of dwellings worth at least twice what their owners paid (up from 38.1% ten years ago).</p>
<p>The remaining capital cities show a much lower proportion of dwellings that are worth at least double their purchase price, ranging from 25.9% of dwellings in Darwin to 37.4% in Hobart.</p>
<p>Across the broad ‘rest of state’ markets outside of the capitals, regional Victoria stands out as showing the highest proportion of properties worth at least double the purchase price at 40.8%, followed by regional Western Australia at 34.8%.</p>
<p>The high proportion of properties worth at least double their purchase price across regional WA may come as a surprise, given the weak performance of the housing market across this region over the past five years, however a decade ago the proportion was substantially higher at 60.8%.</p>
<p>Proportion of properties worth at least 10% less than their purchase price</p>
<p>Over the past decade, the proportion of properties valued at less than 10% of their purchase price has risen slightly from 3.2% to 3.4% between 2007 and 2017.</p>
<p>The national figures hide a significant difference between the major regions of the country. The highest proportion of dwellings worth at least 10% less than their purchase price can be found in regional Western Australia, at 17.8%. Darwin (15.1%), Perth (11.1%) and regional Queensland (11.0%) have also recorded a significant proportion of dwellings where values have slipped more than 10% below the purchase price.</p>
<p>Ten years ago only, while the mining boom was in its early stages, regional Western Australia and Perth were recording the lowest proportion of dwellings where the value was more than 10% lower than the purchase price. In 2007 only 1.1% of Perth properties and 2.3% of regional Western Australian properties fit this profile.</p>
<p>The lowest proportion of dwellings with a valuation more than 10% lower than the purchase price can be found in Sydney (0.7%) and Melbourne (2.1%). Ten years ago, 7.1% of Sydney dwellings recorded a valuation that was more than 10% less than the purchase price, highlighting the effect of strong capital gains post GFC.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/Screen%20Shot%202017-09-28%20at%2010.09.26%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/09/Screen%20Shot%202017-09-28%20at%2010.09.26%20AM.png" alt=""></p>
<p>Drilling down to the suburb level, it is clear how hard mining towns have been hit. The Bowen Basin town of Dysart tops the list with 65.7% of dwellings showing a valuation that is at least 10% lower than the purchase price. Queensland’s Gladstone Central is close behind at 64.2% followed by South Hedland in the Pilbara region of Western Australia at 64.0%.</p>
<p>The good news for many mining regions is that housing market conditions seem to be moving through the bottom of their cycle.</p>
<p>Transaction numbers are generally rising and advertised stock levels are reducing which should help to promote some value recovery in these regions.</p>
<p>As growth eases across Sydney and, to a lesser extent Melbourne, we may start to see a slow reversal of these trends.</p>
<p>It will be harder to double the value of a property in Sydney and Melbourne after such a sustained period of high capital gains, however markets such as Hobart and Canberra, which have gathered some momentum, are likely to see home owners benefit from improved capital gains that is likely to boost their overall wealth profile.</p>
<p>Similarly, the worst appears to have past across the mining sector, although it is likely to take many years before property values recover to their previous highs in many of these regions.</p>
<p class="p1"><span class="s1">TIM LAWLESS<em> heads up the CoreLogic RP Data research and analytics team and can be contacted</em><a href="https://blog.corelogic.com.au/author/timlawless/"><span class="s2"><em> here.</em></span></a></span></p>
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tlawless-5VLUrbAk9s

The wealth effect of housing

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<p>Townsville investors are more attracted towards housing products than units, according to a recent Herron Todd White report.</p>
<p>The property data firm says that the rental market continues to see an oversupply.</p>
<p>“Over the past few years, local and out of town investors have typically been more attracted to housing product over unit stock as the rental market, particularly for units, remains in oversupply along with ongoing buyer aversion due to high body corporate expenses.</p>
<p>“Local investors appear to be typically attracted to entry level stock in the sub $300,000 price bracket, whilst out of town investors are generally in the $300,000 plus price bracket.</p>
<p>“The rental market is continuing to indicate an excess of supply with the vacancy rate for houses as at June 2017 standing at 4.75% and units at 6.50%.</p>
<p>“This excess supply of property available in the rental market relative to demand over the past three to four years has been filtering through to on-going trend reductions in the level of median rents,” the report stated.</p>
<p>A three bedroom house at <a href="https://www.realestate.com.au/property-house-qld-douglas-126259270" target="_blank">20 Curtin Place</a>, Douglas (above) has been listed for $349,000.</p>
<p>Built in 2000 it last sold in 2003 for $363,000.</p>
<p>Another three bedroom house at <a href="https://www.realestate.com.au/property-house-qld-condon-126248602" target="_blank">13 Rosella Court</a>, Condon (below) was listed for $279,000. It is under contract now.</p>
<p>Built in 1980, it last sold for $20,000 in 1988.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/25/13%20Rosella%20Court.jpg" alt=""></p>
<p>Median rents have fallen by 11% compared to levels in 2012, Herron Todd White warns.</p>
<p>“In trend terms median rents in March 2017 for both houses and units are 11.7% below their corresponding levels in March 2012.</p>
<p>“Investors in the current market appear to be seeking capital gains.</p>
<p>“With both the median house price and median rents at soft levels, this puts investors in a good position to capitalise on the upswing in market conditions.</p>
<p>“The latest federal budget has tinkered with property market settings to address housing affordability including the implementation of changes to residential investment property depreciation.</p>
<p>“These changes along with tighter financial controls for investors appear to be one size fits all adjustments applied to correct Sydney and Melbourne markets, however they have the potential to negatively affect regional markets such as Townsville, where the primary concern is consolidating a recovery process, not affordability,” the report said.</p>
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Townsville investors more attracted to houses than units: HTW

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<p style="text-align: left;" align="center">Centuria Property Funds has sold the Swire House in Sydney CBD for $270.05 million, nearly triple the amount it paid for the office asset in 2013.</p>
<p style="text-align: left;" align="center">The <a href="https://www.realcommercial.com.au/property-offices-nsw-sydney-502505282" target="_blank">10 Spring Street</a> building was purchased in 2013 for $91.64 million.</p>
<p class="p1">The office building was bought by Lendlease's Australian Prime Property Fund Commercial, Fairfax Media reported. Lendlease owns 8 Spring Street and its APPF trust and Abu Dhabi Investment Authority, the nearby 1 O'Connell Street.</p>
<p>The 10 Spring Street purchase would allow Lendlease to consolidate that block for a larger development over time.</p>
<p>The final sale price is an outstanding outcome for investors, reflecting a capital value rate per square metre of $19,477, Centuria said in a media release.</p>
<p>The record breaking price for the B-grade office sale in Sydney means Centuria’s investors’ equity investment tripled over the four years, it said.</p>
<p>The sale was handled by Simon Fenn, Graeme Russell and Ben Azar of Savills along with Josh Cullen and Rick Butler of INC RE.</p>
<p>Jason Huljich, CEO Unlisted Property Funds for Centuria, said he was unsurprised by the strong level of buyer interest.</p>
<p>“High quality properties in such an excellent location don’t often come onto the market, and 10 Spring Street has the advantage of appealing to a range of buyers,” said Huljich.</p>
<p>“We believed it would be attractive for purchasers looking to buy and hold the property, with a strong passing net income and the upside of fixed annual rental increases of around 4%. In addition, the weighted average lease expiry (WALE) is relatively short at around three years, offering the chance to capitalise on the strong demand for B-grade office space in the Sydney CBD when leases come up for renewal.”</p>
<p>According to the Property Council of Australia, the Sydney CBD is currently experiencing its lowest vacancy rates in close to a decade, and net effective rents in B grade offices have increased by 60% in 2016 alone.</p>
<p>The 1,505 sqm site has dual street frontages and will benefit from the new infrastructure and transport initiatives currently under construction.</p>
<p>“Prior to the sale, we worked with our architects on the redevelopment potential of the site and we were able to show interested buyers two broad indicative schemes. One involves redevelopment of the existing property, and a second envisages amalgamation with surrounding sites to create a significant mixed-use development,” Huljich said.</p>
<p>When Centuria bought the building, it was 20% vacant, but the fund was attracted to the property because of its prime location, in what is now a Strategic Site as identified in the City of Sydney Draft Planning Strategy 2016, providing the potential to construct a tower of up to 290 metres in height.</p>
<p>In addition, Centuria’s active management of the property, including a program of upgrades and investment, has seen record B-grade rents achieved of up to $1,200 psqm and the building becoming fully leased.</p>
<p>“10 Spring Street has been a spectacular performer for our investors since we purchased it in 2013, but the time is right for us to sell and to redirect the funds to other investment opportunities where we believe we can add more value in the future,” Huljich said.</p>
<p>Simon Fenn of Savills said “10 Spring Street attracted aggressive local and offshore capital looking to secure an asset that has the potential to be part of a rare super site in the future whilst also offering the immediate opportunity to capitalise on the strength of Sydney’s B grade leasing market.”</p>
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Centuria sells Sydney CBD Spring Street building for $270 million

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<p>A converted warehouse at Cremorne (Richmond) has sold to an owner-occupier for $1.95 million at the land rate of $10,427 a square metre.</p>
<p>The property, 16 Dove Street, features a 312 square metre, two level, converted warehouse with secure undercover parking for nine vehicles, a private office, laundry, bathroom, and two staircases providing separate first floor access. </p>
<p>The first floor includes an open plan mezzanine and a private office, an open plan workshop/breakout area with fully equipped kitchen and a large courtyard.</p>
<p>The 187 square metre site has ten metres frontage to Dove Street. </p>
<p>According to selling agents, Teska Carson’s Tom Maule and Matthew Feld, they had 170 pre-auction enquiries for the property.</p>
<p>Mr Maule said the enquiry level reflected both the first rate conversion, providing multiple tenancy options, and the prime Richmond location, which appealed to investors and owner-occupiers.</p>
<p>"This is a funky converted warehouse/office property with a flexible layout providing multiple use options, and secure on-site parking, which is well suited to owner-occupation, especially those looking for a point of difference and a location close to everything, but it also appealed to investors sure of demand for the space,’’ he said.</p>
<p>The property was sold with vacant possession by a Melbourne based investor.</p>
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Seven bidders,170 enquiries for Cremorne warehouse

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<p class="p1">Leading retailer Solomon Lew has said landlords were offering cheaper rents to his rival international brands, while charging local brands unreasonable rents, as the company decided to exit from Melbourne's Bourke Street Mall because of what it said were high rents.</p>
<p class="p1">Retail groups say the decision highlights the pressing need for more retailers to speak out about the unreasonable request of retail landlords.</p>
<p class="p1">A few months back, fast-food chain SumoSalad too accused landlord Westfield of high rents and put two of its 20 companies into voluntary administration.</p>
<p class="p1">Earlier in the week, Lew and Premier Investments’ chief executive Mark McInnes spoke out about the tough rental conditions for local incumbents in shopping strips like the mall during its results presentation.</p>
<p class="p1">McInnes said the decision to close the Portmans and Just Jeans flagships in the Melbourne shopping strip came down to “unrealistic rent”, the SmartCompany quoted him as saying.</p>
<p class="p1">McInnes said the company would be closing the two flagship retail sites next month because retail landlords have not come to the table to discuss better deals. This is despite the fact it would cost landlords more in the long run to replace them as tenants in the spaces that they have leased for decades.</p>
<p class="p1">The lifestyle and fashion retailer, which operates Portmans, Just Jeans, Peter Alexander and Smiggle, clocked sales of $1.09 billion with net profit after tax of $105 million.</p>
<p class="p1">The company pointed to the incentives offered by landlords to international retailers to take up space in strips like the mall, suggesting that Premier Investments could exit more retail sites if things aren’t adjusted.</p>
<p class="p1">“Today, we announced that unless landlords cut us the same rental, and incentive deals they’re offering international competitors in the young fashion market, we may need to close many more Dotti stores. The cost to landlords of replacing us is far higher than if they solve for us,” McInnes said.</p>
<p class="p1">Separately, Lew and McInnes also spoke against unreasonable landlords on Ross Greenwood's show on 2GB.</p>
<p class="p1">“If they’re raising the rent to a level where it’s no longer viable, we are going to move on,” said Lew.</p>
<p class="p1">When Greenwood said if this meant that if "the landlords can’t come to the party with some sort of a deal… if there’s no deal, they’re gone,” Lew referred to landlords' unfair rental practices.</p>
<p class="p1">"You’d be offended if your competitors were offered rents that were two-thirds lower than your rent and you would be offended if they received a capital contribution for refurbishment and for building a new store,” he said.</p>
<p class="p1">“And that’s exactly what’s going on in the industry and so we’re taking a stance and unless it’s in the interests of our shareholders and the brand, we’re going to move on.”</p>
<p class="p1">But he said that it didn’t mean that the retailing giant will not open stores at other places.</p>
<p class="p1">McInnes echoed Lew on the show, saying the decision to close the Bourke St stores means that the company isn’t going to stand for that (landlords wooing international brands with lower rents).</p>
<p class="p1">“We’re walking away from $5 million of sales, but ultimately they’d be unprofitable sales because the landlord would not charge us a realistic rent,” he said.</p>
<p class="p1">McInnes pointed to the strength of the company's brands and said that some landlords did understand that “with a portfolio of 1,100 stores, we are one of the largest rent payers, if not the largest rent payer in Australia and they don’t want mass vacancies in their centres”.</p>
<p class="p1">He said some landlords were not being honest with their rents and turnover and Lew and Premier Investments was targeting these landlords.</p>
<p class="p1">McInnes went further, saying the company did not want to close stores but were forced to because landlords were unrealistic about rents.</p>
<p class="p1">“I guarantee that that landlord in Bourke Street, it will cost them millions of dollars in capital incentives to remake those stores and they will get far less rent than what we were paying.”</p>
<p class="p1">Meanwhile, he added that online sales had picked up in the past few months and “the customer is choosing that channel as a place to shop... and landlords have to accept that this is a change in their sales structure based on what customers want.”</p>
<p class="p1">Lew said that several retail businesses were running behind on their rents and landlords were not raising the rents for these.</p>
<p class="p1">On Myer’s performance, the former deputy chairman of Coles Myer said that in spite of the public float and two rounds of capital raising since 2015, the company’s value had eroded by almost $2 billion and it was now worth $600 million, so clearly its strategy was not working.</p>
<p class="p1">In terms of the business itself, he said Myer's moving to a concession model mean margins were down and it was also having problems with their own purchases.</p>
<p class="p1">"They look very poor… they look like opportunity shops and not like a Myer department store," said Lew. </p>
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Unreasonable landlords offering global retailers better deal, says Solomon Lew

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<p>JLL has been named Property Service Provider under the Whole of Australian Government (WoAG) property procurement tender.</p>
<p>JLL will provide integrated facilities management services to 34 government agencies, spanning more than 3.6 million square metres across more than 3200 leased and owned properties.</p>
<p>Steve Mackintosh, JLL’s Head of Government Business, said JLL has been providing property services to Australian Federal Government Departments for over twenty years.</p>
<p>“JLL was selected for this latest significant Government property portfolio following a competitive tender and this appointment reinforces our strong position in the government sector in Australia," he said.</p>
<p>“The appointment will also showcase the specialised skills of JLL in a comprehensive range of property management services, including contractor management, lease acquisition and administration, facility management services, procurement, help desk, environmental management, financial services and reporting.”</p>
<p>Chris Hunt, JLL’s Managing Director, Integrated Facilities Management, Australasia, said these major new Federal Government contracts build on the firm’s strong platform of Government clients.</p>
<p>“The Whole of Australian Government property procurement tender has allowed us to aggregate work and put much more efficient teams together to work across major departments.”</p>
<p>Evolve FM—a joint venture with PSG Holdings where JLL is the minority stakeholder —has also been appointed as a provider.</p>
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