Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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

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It's no secret that I have a preference for obtaining a positive cash flow (or as close to it) from my property purchases.  I've written a lot about it over the years and have successfully added many such properties to my portfolio.
However, I can't help but notice that, somewhere along the line my message has been taken in a shortened form – leading investors to consider only cash flow when choosing their next property. This, in turn, results in the acquisition of property which might have good rent returns, but is in danger of not growing due to an absence of important growth drivers.
In choosing property for cash flow alone, many investors are inevitably led toward towns with a single industry.  Such towns tend to get a higher than usual rental yield for many reasons, including:
<ul>
<li>They are often well outside of major urban areas, and so the property values are low, creating a higher relative yield. 
</li>
<li>Where the industry in question is experiencing a robust period and demand for its product, extra workers are usually employed.  
</li>
<li>These workers often cannot be sourced from within town and so they are recruited from elsewhere, and move to the area, and as many of these workers are itinerant, at least until it can be confirmed that their continued employment is assured, they do not usually buy.  So, although the industry is doing well, the expanding population are not property buyers, and pressure is not brought to bear on values.  They are, however, renters and this is why rental yields often soar.</li>
</ul>
Property in such areas then becomes an attractive proposition, because, initially, the cash flows look fabulous.  This in turn attracts more investors and property prices do begin to move.  Pretty soon we see an artificial property boom, brought on purely by the existence of the single industry and the resulting hoards of hungry investors seeking, at first, good cash flows, and then the spin-off gain.
And while many experts may say that, where property in concerned 'time in market' is the key, in fact these towns require precise 'market timing' if the strategy is going to work.  You need to get in at the right time (before values move), and you need to exit the investment just before the fall that is often seen in such areas when the single industry falters, or the economy changes.  And if an investment requires precise market timing to pay off, then it also requires the investor to have a higher appetite for risk.
There is no question that, particularly while we are experiencing strong economic times and low interest rates, a property in a single industry town can provide a great return.  However, these properties must be considered to be a higher risk investment. 
As with any investment, the higher the potential return, the higher the risk, and property in single industry towns have more than their fair share of risks.
These include:
<ul>
<li>The lack of diversity of industry means the entire workforce's reliance on a single industry places the security of the whole town at risk, should something adverse happen to that one industry; 
</li>
<li>The prevalence of itinerant workers results in a weak underlying economy. Workers often take their earnings out of town and, if that industry's vibrancy is reduced, respond to economic changes, leave town altogether. This creates high vacancy rates, rapidly reversing the upward climb that property values were enjoying; 
</li>
<li>That same economic weakness means most councils lack the financial resources to provide infrastructure to the community, meaning that the towns are often severely under-resourced; 
</li>
<li>The entire town is highly exposed to 'hidden risk' – the risk that an unforeseen event, government decision or world economic turmoil impacts directly back on the only industry supporting the area.  This is a risk which cannot be mitigated as it most often cannot be foreseen, and in some cases has never actually happened before; 
</li>
<li>Even if that single industry continues on, the lack of diversity in industry usually means that the population grows very slowly – the town can only expand at the rate that the industry expands.  This can mean that, even though cash flow might be good, growth to the underlying asset (the property) is well below par. A sound property strategy requires both cash flow and growth.</li>
</ul>
If an your risk profile is such that you have plenty of capital and loss would not cripple you, or you have ample time available as an income earner within which you could replace lost capital, then the potential for good yields and possible capital gains may well make these risks worth taking.
However, if you are buying in order to create a retirement income, and each purchase must perform well, you may be gambling with what may become one of your only income sources, one which needs to last a significant length of time and will not be easily replaced if you are already close to retirement.  The surety of a house in an area with a growing population, diversity of industry and abundant infrastructure development is more likely to be the appropriate investment.  You may not have quite as much cash flow, but the chances of you having both the capital and a reasonable amount of yield and growth available to use for all of your retirement years are usually greater than these higher risk, single industry town investments.
</body></html>

mlomas-KC9MUPZ6Ca

Buying in a single-industry town - how to negotiate the risks: Margaret Lomas

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At 6.00 pm on Saturday, on our first auction day of the year for Inner East and Bayside we have been to 13 auctions – all had bidders and all sold.
No emphasis on stats today as there were very few $1 million plus auctions , Inner Melbourne’s big auction games start next week.
I’ve really only had this week to get a “face to face street feel” on what’s happening in 2015. It appears to have started strongly and the vibe from the agents at the 20 homes which I inspected and rated was positive and “maaaate, the market continues to fire”. Heaps of people through opens.
Our company enquiry levels are up solidly on last year and we concur with what the selling agents are whispering under their breaths. We have already started with an auction win and a miss ($1 - $2 million) and the market hasn’t really got going in auctions yet. Off markets and other types of buying has also started for us.
Auction-wise, next week is different, a strong weekend with around 140 auctions over $1 million scheduled for Inner East and Bayside and the following week is a Super, Super Saturday with nearly 250. Hold onto your hats.
No we mean it – buyers should be holding onto their hats and only put their hand up if it makes sense. Every February we expect a strong start and this year is not unusual. After a six week Christmas hiatus there are a number of nervous nellies out there pushing hard on prices – it happens every year. It appears it will happen again this year.
So demand is coming from four types of buyers:
<ol>
<li>New local buyers (average price thoughts)</li>
<li>New overseas buyers (higher than average price thoughts)</li>
<li>An array of nervous nellies (higher than average price thoughts)</li>
<li>Last year’s wounded underbidders (higher than average price thoughts)</li>
</ol>
All these buyers are pushing through the February OFI doors like a Boxing Day David Jones Doorbuster Sale.
Every year around this time, we urge caution, 2015 will be the same. If it’s good, go for it; but once the bidding get’s past very strong, consider your competitors, consider your alternatives, consider stopping and trying on another home, another day.
Case in point (1): Last weekend on the one we missed at 14 Parliament Street, Brighton (Julian Augustini) – agent quoting around $950,000 to $1,050,000. We opened at $1,100,000 and then a guy bid $1,150,000 and then bid against himself up another $50,000 to $1,200,000. We competed against him and another bidder, until we were beaten at $1,325,000. Please, this was a good home for what it was and congratulations to the buyer – bought a good property, but the agents will tell you they couldn’t get it sold late last year around the opening bid (nearly $200,000 south of today’s price).
Case in point (2): We could have bought 8 Johnson Street, Hawthorn (James Tostevin) quietly last year circa $1,600,000. We didn’t. Today four bidders competed to just over $1,800,000.
Case in point (3): We couldn’t buy a property pre-Christmas off market, but bought it this year before auction – Glen Iris (Cameron Edgoose).
So has the market started with a bang or is this the usual February ”Berocca” effect where you wake up desperate, take a Berocca and go out there and take the world on?
Big numbers through opens in February is about as Melburnian as big numbers through the gates at the first round of the footy season.
While the market mood appears just as strong as last year, maybe even more so, any longer term market shift won’t be evident until Super Saturday 28 March and confirmed mid May.
Mal writes weekly auction reports, advice and in-depth market analysis on <a href="https://www.jamesbuyeradvocates.com.au/" target="_blank">James' website</a>.
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Caution - nervous bidders are pushing hard on auction prices: Mal James

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House prices are soaring in comparison to incomes, making life difficult for many and threatening to undermine national economic performance. Western Australia has devised an innovative policy solution.
Using a shared equity model, the Shared Home Ownership scheme allows low-earning prospective homeowners who meet certain criteria to purchase a property by sharing up to 30% of the capital cost with the Department of Housing and borrow the rest with a SharedStart loan through state mortgage lender KeyStart Home Loans.
The loan is directly linked to a major construction expressions of interest project that means the department is able to procure newly built, affordable dwellings in bulk from the market at discounted rates. The discount to market prices gained by the department become its equity share in the portfolio of properties.
In recognition of its achievements, the Department of Housing won the overall award at the 2014 WA Premier’s Awards for Public Sector Excellence and the “Developing the Economy” award for the scheme.
Perhaps unsurprisingly given Australians’ obsession with home ownership, <a href="https://www.ahuri.edu.au/publications/projects/p70394" target="_blank">previous research conducted</a> with potential purchasers of shared equity homes showed focus group participants had two primary motivations that would impact on their interest in such schemes: wanting the security of having a place of their own on the one hand, and desiring asset accumulation on the other.
So unlike other shared ownership models where the government retains a permanent interest in the property, stunting the resident’s opportunities for wealth formation but ensuring long-term affordability is maintained, WA’s Shared Home Ownership scheme encourages the resident to eventually buy out the department’s share, offering a path to full home ownership.
Interest rates are set higher than the lowest variable market rate so that, while repayments will be lower for the period that the homebuyer owns only 70-80% of the property, they will be incentivised to refinance with a private institution once they buy out the department’s share.
So far the program has helped deliver home ownership to over 700 low-income households, many of whom would not have been able to do so otherwise. Though such a program cannot be targeted at the lowest socio-economic groups, as it still relies on a regular income to pay off a mortgage, it lowers barriers to entry for those making below-median incomes.
The program was developed “in response to an increased demand for affordable housing as rents became unaffordable in Western Australia”, says Adrian Warner, acting director of strategy and policy at the Department of Housing.
“In the March quarter of 2014, the median rent reached $460 in Perth, while the median house price increased to $540,000, up from $525,000 in the previous quarter,” he said.
<img class="aligncenter size-full wp-image-22441" src="https://www.themandarin.com.au/wp-content/uploads/2015/02/graph.png" alt="graph" width="504" height="405">
The program has been praised for its benefits to prospective purchasers, government and the wider community, he said:
<ul>
<li>Purchasers only need to borrow 70-80% of the property value;</li>
<li>The equity component is not dependent on a government grant or debt;</li>
<li>The supply of entry-level housing is increased;</li>
<li>It supports local industry and creates value for the economy — over $650 million in economic activity to date;</li>
<li>First home buyers require only a 2% or $2000 deposit;</li>
<li>No lender’s mortgage insurance or monthly account keeping fees.</li>
</ul>
According to figures provided by the Department of Housing, to date, SharedStart has delivered:
<ul>
<li>$149 million of direct construction activity;</li>
<li>$112 million of induced activity by suppliers;</li>
<li>1491 jobs supported;</li>
<li>722 households into home ownership;</li>
<li>Total economic benefit to the state of $465 million.</li>
</ul>
{qtube vid:=9w3-JRBmeis}
Return for households and government
A <a href="https://www.ahuri.edu.au/publications/projects/syn91" target="_blank">report by the Australian Housing and Urban Research Institute</a> in partnership with PricewaterhouseCoopers found the program was not only achieving its intended outcomes, but had generated significant returns for households, government and industry. AHURI found that the department’s practice of acquiring new homes had helped increase housing supply:
“The shared equity EOI initiative increased the overall supply of low-cost dwellings through its EOI procurement process. This distinguishes the EOI initiative from shared equity schemes that are linked to existing dwellings and therefore do not achieve an increase in the overall supply of dwellings …
“There was agreement amongst all stakeholders interviewed that the shared equity EOI initiative has been highly effective in increasing the supply of lower-cost housing. For example, a peak body representative described the effectiveness in relation to increasing lower-cost housing supply as ‘outstanding’ and a senior Keystart representative commented that the scheme has been highly effective in terms of providing low-cost properties, which were under $300,000 in several circumstances.
Resident satisfaction with housing affordability was very high:
“… the majority of respondents (87.4%) agreed or strongly agreed that their mortgage payments were affordable; and the majority of respondents (74.9%) agreed or strongly agreed that their home was affordable to run (e.g. in terms of utility bills).”
And the program has done well helping lower income people move into their own housing:
“The scheme was successful in providing home ownership opportunities to members of the targeted client groups. This included: eight public housing tenants who moved into home ownership via the shared equity EOI scheme; 188 survey respondents who were first home owners and 198 survey respondents who reported that they would never have been able to buy a home from the private market without the shared equity EOI scheme; six survey respondents who reported having a disability; and nine respondents who reported living with a person with a disability; 58 survey respondents who were single home owners with one child or more; and 42 survey respondents who were key workers [nurse, teacher, police etc].”
The program has encouraged more interest among developers for building one- and two-bedroom housing, something traditionally seen as more risky.
The report found that the typical expectation of housing assistance is that it is a form of subsidy to households that generates significant costs to government. “Instead,” said Warner, “this form of assistance makes a sustained, substantial difference to the financial wellbeing of lower-income households whilst also delivering a positive rate of return for government. Through this process, value has been created for government in the form of embedded equity stock.
“These initial equity shares had an estimated value of $58 million by September 2013 for 722 properties ($80,729 per property). These equity shares were created without capital expenditure by the department.
“Due to the nature of the SharedStart scheme, as house prices increase so will the value of equity shares held by the department. Additionally, the scheme ensures that the portfolio maintains a strong asset base as government sells down other state assets.”
The scheme is part of the government’s Affordable Housing Strategy 2010-2020, which sets a target of at least 20,000 new affordable homes by 2020.
“The government passed the halfway mark on its target just three years into the strategy,” said Warner. “Over 17,000 new affordable housing opportunities have been created since January 2010, on schedule to exceed the target of 20,000 by 2020.”
<a href="https://www.ahuri.edu.au/publications/projects/p80088">Research from 2003 showed</a> shared equity to be a more effective policy option than the First Home Owners Grant at assisting low-income earners into housing. According to modelling, shared equity would have a greater impact on home ownership rates, is more likely to be taken up by lower income households, and is less likely to simply bring forward home purchase decisions.
This article first appeared on <a href="https://www.themandarin.com.au/" target="_blank">The Mandarin</a>.
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How WA is tackling the housing affordability crisis

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Cbus Property has sold 81-125 Princes Highway, Dandenong – formerly the General Motors Holden manufacturing site – to the Western Australia property syndicator fund manager Warrington Property Group.
The 33.7 hectare property comprises 8 hectares, with three buildings totalling 27,919 square metre leased to GPI, CEVA and Australia Meat Holdings.
<img src="/images/2015/02/18/etstqae-feb-18-one.jpg" alt="">
Fully leased the total estate income is $6.7 million.
It is located 32 kilometres south-east of the Melbourne CBD.
Warrington Property, which has around $250 million of assets under management, was founded by British-born valuer Chris Weaver.
The Dandenong deal was brokered by Savills Australia agents Chris Jones and Ben Hegerty.
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Warrington Property Group buys 33 hectare Dandenong property

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The industrial premises at 72-76 Cherry Lane, Laverton North have been sold for $29 million on a 7.5% yield through Savills.
Toll Holding sold the 9.8 hectare holding to Stockland in an off market sale and leaseback.
The facility comprises a 20,500 square metre warehouse and 4.5 hectares of container-rated hardstand.
Laverton North is one of Melbourne’s premier industrial locations, with the Cherry Lane facility located 12 kilometres west of the Port of Melbourne and 16 kilometres from the Melbourne CBD.
It is located very close to the Princes Highway, Westgate Freeway and Western Ring Road.
Stockland chief Mark Steinert said high-quality acquisitions supported their strategy to profitably increase the size and scale of its Logistics and Business Parks portfolio.
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Toll Holdings sells Laverton industrial property

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NAME:  Rod Chadwick<img src="/images/2015/02/18/chadwick-feb-18-one.jpg" alt="" style="float: right;"> 
POSITION:  State general manager, Queensland
COMPANY:  AVJennings
OFFICE LOCATION: Milton, Brisbane
<ul>
<li>How long have you been in the industry?</li>
</ul>
15 years. I joined AVJennings in 2004 as NSW business development manager before relocating to Auckland, New Zealand in April 2008 to take up the role of project director with AVJennings’ Hobsonville Point Development. In July 2014, I relocated to Brisbane to join the Queensland team as AVJennings Queensland general manager.
<ul>
<li>What’s happening in the area you specialise in?</li>
</ul>
Affordability continues to be a significant factor that consumers consider when purchasing a new or existing property. Interest rates are at a record low and as such we are seeing increased activity in the first home buyer market across our Queensland portfolio.
To ensure our products represent good value, AVJennings is continuously looking to innovate, whether this is in the urban design of new communities, the architectural design of new homes or in the materials and construction techniques we use when building new homes.
Our ability to provide innovative and consumer focussed products ensure that our products appeal to a broad range of customers from first and second home buyers and young families through to empty nesters looking to settle into a low maintenance home in established communities.
<ul>
<li>Describe the most interesting property you have worked on? </li>
</ul>
Creekwood at Meridan Plains on the Sunshine Coast because of the diverse range of properties offered to the community. The entire Creekwood community spans 50 hectares and on completion will feature a total of 370 townhomes, terrace and loft homes and 470 homesites.
There is so much activity in the area, with the new Sunshine Coast Public University Hospital  at the Kawana Health Precinct set to employ 3,500 people - it's an exciting project in a beautiful part of Queensland.
<ul>
<li>What are the ingredients to being successful in your job? </li>
</ul>
Being consumer orientated is key.  Strong communication skills, unwavering commitment and patience are just as important as being inquisitive, numerate and strategic.
<ul>
<li>What aspects of your role do you enjoy the most? </li>
</ul>
Creating communities and homes that people love to live in. At AVJennings, we are committed to our philosophy of creating fresh residential addresses that meet the individual needs of local communities and modern lifestyles.
Choosing a place to live is part of the great Australian dream. Our investment in innovative design, excellent land management practices, delivering outstanding community facilities and great living environments are our way of staying true to our goal of creating high-quality communities. It is great to be part of a dedicated team with values that align with the AVJennings brand.
<ul>
<li>Where would you invest a spare $750,000?</li>
</ul>
AVJennings’ Elysium Noosa community at Noosa Heads, Queensland.  The Noosa Heads property market is in the recovery cycle with sales prices and volume increasing. There are opportunities to purchase land and new homes in the Noosa Market for a fraction of the prices of being paid prior to the GFC. This represents the opportunity for capital gain as the market continues to improve and more buyers return to enjoy the lifestyle benefits of the Noosa region.
Elysium Noosa is one of the limited addresses where you can buy new land and homes with a Noosa Heads address. Elysium appeals to owner occupiers and investors alike as residents have access to their very own Rec Club with pool, tennis courts and residents lounge, plus its only 10mins to the restaurants of Hastings Street and Noosaville.
<ul>
<li>Which football team do you support?</li>
</ul>
Wallabies.  Queensland Reds, Socceroos, Central Coast Mariners.
<ul>
<li>What’s your favourite app or techno gadget? </li>
</ul>
iPhone.  Now extension of the arm. Nearmap software allows me to access aerial images changing over time.
<ul>
<li>How do you use social media? </li>
</ul>
Limited to be honest. I am on LinkedIn but I rely on my social media savvy team in the social media arena.
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In profile: AVJennings' state general manager, Queensland, Rod Chadwick

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Australand has been selected as the preferred developer to transform 50 hectares of vacant council land in Sunbury following an agreement with Hume City Council.
The 390 new home residential development, Sunbury Fields, located on Racecourse Road just 2 kilometres north of the historic Sunbury Town Centre, will have around 30% dedicated to open space.
Given the presence of the Eastern Grey Kangaroo, Sunbury Fields will feature 9.7 hectares of Grassy Woodlands Conservation Reserve.
There will also be 3.5 hectares of local village parks and gardens along with 1.6 hectares of wetlands.
Australand advised the development would cater for more than 1,000 residents on completion with land blocks ranging from compact 263 square metres to large country-style blocks of more than 1,540 square metres.
The Sunbury Fields site had a history dating back to the late 1800s where it was home to the annual Easter military encampments by the Rupertswood Battery and then as Sunbury’s Racecourse in the 1900s.
Following rezoning of the site late last year, Hume City Council has issued planning permits for the Sunbury Fields development with onsite works scheduled to commence in April 2015 and an estimated completion by 2018.
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Australand wins Sunbury Fields development rights

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Investors who are looking for the highest returns will continue to look for development opportunities, and Savills particularly favour outer London and the key regional cities as development opportunities in 2015. Speculative development activity will remain sparse, due to investor and lender caution, but those who are brave enough to undertake it will do well, it said.
Overall Savills expect that 2015 will be another strong year for UK real estate, but investors are going to have to work harder to identify markets and sectors that will deliver high returns.
"The commercial markets in 2015 will still offer opportunities for both risk-averse and risk-embracing investors, though the stronger than expected bounce in capital values in 2014 will diminish," the report said.
In London offices, the low level of availability will continue to deliver strong rental growth.
"We expect to see continuing strong demand from risk-averse international investors," said the report.
"Strong capital value growth was undoubtedly the key theme of 2014, with growth across all sectors stronger than we were forecasting at the beginning of the year.
"We expect to see continuing capital value growth across all prime sectors in 2015, albeit at a slower rate.
"The general election in spring 2015 will definitely have some effect on sentiment, though in the agricultural and commercial sectors we expect the effects to be relatively muted."
In the residential markets the threat of mansion tax, combined with the Mortgage Market Review could lead to a more sustained hiatus in capital value growth in 2015.
Generally Savills expect that the macro- economic story for the UK will remain benign, with base rates remaining unchanged until early 2016, and the combination of low oil prices and recovering incomes giving a boost to the UK consumer.
Savills expect that UK real estate will continue to deliver high returns in comparison to other asset classes.
"This will mean that domestic and international demand for prime and good secondary assets will be strong, though we expect to see more focus on supply and demand fundamentals in 2015, rather than just the potential for yield shift."
Savills top picks across all sectors are for markets with structural or impending undersupply.
Click to open in new window:
<a href="/images/2015/02/18/save%20feb%2018%20one.jpg" target="_blank"><img src="/images/2015/02/18/save%20feb%2018%20one.jpg" alt=""></a>
Source: Savills
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Savills suggest UK commercial investment strategies for 2015

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Building and landscaping industry operative Andrew Smith, from nearby Holgate, has emerged as the director of the purchasing company of the Patonga Beach Hotel on NSW’s Central Coast.
It was sold, five months after being listed with $10 million sale hopes. The land sale component totalled $7.35 million on its recent settlement.
Listed by the Osborne family, the Patonga Beach Hotel and the adjoining fish shop is set in the gully on the shores of Broken Bay at the mouth of the Hawkesbury River.
It is the only hotel in a 12-kilometre radius.
It is opposite the Patonga Beach ferry wharf, popular with day-trippers and visitors from the Central Coast.
<a href="https://rca.joneslanglasalle.com.au/property-hotel+leisure-nsw-patonga-501053471" target="_blank">Jones Lang LaSalle Hotel and Hospitality Group agent John Musca</a> had the 1,546 square metre hotel offering.
Since 2000 Andrew Smith has headed Scape Constructions that undertakes civil construction, commercial landscaping and building.
Photo source: Facebook.
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Patonga Beach Hotel buyer emerges as Central Coast builder

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As a commercial property investor it's important for you to keep tabs on all the separate markets around Australia.
To help with that, a recent market update by Credit Suisse places Sydney and Melbourne CBD offices as the best performers over the next three years.
However, Brisbane and Perth are expected to deteriorate further from where they are at present.
The report anticipates a 3.5% per annum improvement in the effective rental for both Sydney and Melbourne — with vacancy rates to remain under 10% for the next three years.
And this is supported by improved tenant demand over the past 12 months.
Whereas, rentals for Brisbane and Perth are expected to fall by 1.2% and 7.2% respectively over the same period.
And their vacancy rates are likely to blow out to 22% and 19% respectively.
Unfortunately, demand for space in both these mining States has been rather weak; and the Office markets continue to suffer from an oversupply of new space.
Historically, you find the surrounding suburban areas tend to follow closely what occurs within the various CBD office markets.
That means, any increase (or decrease) in demand for space tends to create a "ripple effect" out into the suburbs — with a time-lag of a around six months.
Bottom line, for the foreseeable future Sydney and Melbourne are expected to have strong tenant and buyer demand for office property. In turn, this should provide investors with solid predictable income and capital growth over the next three to four years.
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