High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

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

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

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

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

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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Vacancy rates in Perth’s CBD office market are expected to remain above 10% for the next four years at a minimum, according to BIS Shrapnel.
The  Perth Commercial Property Prospects 2014 to 2024 report found that even when an optimistic scenario was tested for Perth, modelling the impact of high levels of minerals production on office demand, the vacancy rate will increase to around 15% by June 2015. It was then expected to decline to 12% by 2018.
Currently, the vacancy rate sits at 10% to 13%.
BIS Shrapnel’s senior project manager and report author Lee Walker said that the forecasts suggest that engineering construction is to fall by a third over the next four years, and the drop in resources investment – a key driver for office space – will leave the absorption of this commercial stock very weak.
“The real problem on the demand side is that the downturn in resources investment has only just begun. It is the investment phase of the cycle, and particularly growth in investment, that underpins employment within office buildings and which drove the record levels of net absorption of office space in Perth in recent years” said Walker.
There are also a significant number of new completions in the pipeline, with 164,000 square metres of new completions currently under construction set to enter the market by December 2015.
“Even though around 65% of this new office space is pre-committed, we are worried about the volume of un-committed space, as well as the back-fill space that will be created as tenants relocate. All this space will need to be absorbed and we don’t believe there will be enough demand,” Walker said.
If this situation was to be turned around, an “exceptionally strong growth stimulus from export growth” would be needed to generate enough office demand to complete the additional space built in the next 18 months. Walker warned that he does not foresee this occurring.
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Perth office market needs “exceptionally strong growth stimulus”: BIS Shrapnel

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One of St Kilda Road’s prominent office towers, the St Kilda Road police complex has been listed for sale.
It is situated on a corner site at 412 St Kilda Road.
The 21 level office building has the potential for a residential conversion with St Kilda Road having been one of Melbourne’s sought after apartment locations.
The planned residential conversions are tipped to put St Kilda Road’s office vacancy rate in single figures by 2017 with an average of 13,267 square metre of office stock expected to be removed annually over the next five years.
With Victorian Police not extending its lease over the property beyond mid-2016, the <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-501203687" target="_blank">sales campaign is </a><a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-501203687" target="_blank">underway through </a><a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-501203687" target="_blank">CBRE’s Mark Coster, Mark Wizel and Josh Rutman</a> in conjunction with Dawkins Occhiuto’s Walter Occhiuto and Andrew Dawkins .
Offers close 31 July for the building located at the city-end of St Kilda Road.
The property’s Commercial Zone 1 zoning under the Port Phillip Planning Scheme aims to create vibrant mixed use commercial centres for retail, office, business, entertainment, residential and community uses. 
However current residents complain there is a lack of suitable supermarket retail along the strip.
The property’s corner location, with three street frontages allows good natural light and views of the Royal Botanic Gardens, the Shrine of Remembrance and the CBD, as well as Albert Park Lake and Port Phillip Bay.
Another offering comes from the boutique fund manager Calibre Capital 
The nine-level tower at 509 St Kilda Road has almost 19,700 square metres space, with tenants including Transfield and Australia Post
It is near the Commercial Road junction backing onto Fawkner Park. 
Abacus sold the 18-storey building at 484 St Kilda Road for $94 million which was bought three years ago for about $68 million.
Two years ago, Newmark Property acquired the 20,500-square-metre tower at 417 St Kilda Road from Challenger for $81.3 million.
Singapore’s International Healthway Corporation acquired 553 St Kilda Road for $45 million.
IHC purchased 541 St Kilda Road for $35.75 million.
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jchancellor-FAypfDUnLy

Residential conversion mooted for St Kilda Road police centre

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Property investor MarksHenderson has spent $28 million on offices at Sydney’s Walsh Bay.
The Melbourne-based group’s first buy into the Sydney market is the 8 Windmill Street building next to the new Headland Park at Millers Point.
The sale price translates to a passing yield of 7.5% through CBRE senior director, capital markets, Steven Kearney.
The Windmill Street building has a net letttable area of 3,820 square metres with an on-site cafe with outdoor seating.
In 2003 it was developed by Tuscan Corp, David Berry's Sydney property group, after its design by PTW and HPA architects.
David Berry was formerly general manager of Kajima Corporation's Australian operations, responsible for managing the Sydney hotel now known as the Sheraton on the Park Hotel for Kajima Corporation from shortly after opening until its sale to ITT Sheraton Corporation. 
Other nearby sales include Piers 8 &amp; 9, 23 Hickson Road and 36 Hickson Road for a combined $64.5 million and last month’s $26 million sale of 88 Cumberland, The Rocks.
 
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MarksHenderson splashes $28 million on Walsh Bay office

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Foreign investors are paying inflated prices for commercial property in Australia as yields are still better than the low interest rates available offshore, a local fund manager says.
Australian Unity head of property, mortgages and capital markets Mark Pratt said foreign buyers were ignoring softness in Australia’s economy, weak business and consumer sentiment and high vacancy rates in commercial property to snap up buildings.
“We have an extraordinary level of cash looking to invest in Australia, domestically and offshore, driven by Australia being seen as a safe haven destination for capital but also, whilst we have historically low interest rates, they are, in a relative sense, higher than most jurisdictions,” Pratt said.
Commercial property in Australia is offering cap rates of 7% to 7.5%, which is considerably higher than the local cash rate of 2.5%, Pratt said. In Asia, where cash rates are even lower, the difference between the returns available and the risk-free rate is even greater, driving demand from offshore.
Some buyers were paying 20% more for buildings that Pratt judged their value to be.
“Private capital is coming in from overseas, it’s here as a holding purpose rather than any underlying fundamentals and that introduces some interesting dynamics into the buying market,” he said.
Pratt said the increased demand from overseas buyers made it difficult for fund managers that had a mandate to invest through varying property cycles to identify assets that offered good value. There were still opportunities in secondary office space and healthcare properties, he added.
It was also making owners who had not been planning to sell their assets consider the possibility.
“If we get a good offer we have to consider whether it’s worth selling even if it’s not in our plan,” Pratt said. “We have to balance [a sale] against the risk in the future. With demand coming in that’s happening more frequently.”
Pratt said AUI was always working to improve the income generated by the properties it owned in its funds but weak tenant demand was limiting the opportunities. 
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zfielding-GvX3Uq9KTa

Foreign investors paying inflated prices for commercial property: Fund manager

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Agent: Andrew Palmer<img src="/images/2014/07/16/andrew-palmer-profile.jpg" alt="" style="float: right;">
Company: Knight Frank
Position: Retail investment sales executive
Office location: Sydney
How long have you been in the industry?
I’ve been in the property industry for five years. I firstly worked at a valuation firm before moving into commercial sales in the Sydney CBD and then moved into retail investment sales.
What’s happening in the area you specialise in?
The retail sales sector is extremely busy at the moment. Firstly, there has been increased activity in bulky goods and warehouse style retailing such as COSCO, IKEA, Masters and Bunnings. There has also been a large emphasis on investment into non-discretionary, retail anchored centres due to the strong long-term performance of this asset class.
There has also been significant capital investment from offshore groups, who continue to see Australia as a safe haven. Grocery retailing is also becoming increasingly competitive with new store concepts rapidly developing.
Describe the most interesting property you have sold?
80-82 Pitt Street, owned by QBE Insurance, was the most interesting property I have sold.
Originally constructed in 1940, the landmark 15 level art deco building has been the Sydney headquarters of QBE (or its predecessors) since 1946, and maintenance had  been undertaken on an, “as needs basis”. Situated in the heart of the Sydney CBD, we sold to the property to a private Hong Kong investor for $46.5 million.
What are the ingredients to being successful in your job?
I believe to be successful you need to have the drive to achieve results, persistence and passion. Being approachable and genuine is also key in an industry where trust is paramount – I’m very focused on building this trust with all my clients.
What aspects of your role do you enjoy the most?
There are two main aspects of my role which I really enjoy.
Firstly, I enjoy meeting the challenges and hurdles to achieve a successful sale through thinking outside the box to solve problems.
Also, property is my passion so being able to work on different properties all over NSW allows me to constantly learn and develop my knowledge of retail property.
Where would you invest a spare $750,000?
A small scale retail development such a child care centre.
Which football team do you support?
West Tigers in the NRL and the Waratahs in the Super Rugby
What’s your favourite app or techno gadget?
My iPhone – there’s an app for just about everything and it certainly keeps me organised!
How do you use social media?
I use <a href="https://au.linkedin.com/pub/andrew-palmer/31/655/8aa" target="_blank">LinkedIn</a> mainly to stay in touch with industry associates and clients.
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jrichardson-uRX5hFdKfN

In profile: Knight Frank's retail investment sales executive, Andrew Palmer

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GUEST OBSERVATION
The government has grabbed an unlikely victory to preserve its changes to Labor’s Future of Financial Advice legislation, after a last minute deal with Clive Palmer.
Just over a week after Palmer insisted his party would not be swayed by government lobbying and “<a href="https://www.smh.com.au/comment/fofa-your-financial-planner-is-about-to-send-you-a-letter-but-its-not-enough-20140714-zt6gi" target="_blank">they can stick it up their arse</a>”, PUP senators and their ally, Motoring Enthusiast Ricky Muir voted against disallowance of the regulations.
Finance Minister Mathias Cormann, desperate to preserve his changes – which are widely condemned by consumer and seniors' groups as watering down FoFA – secured PUP by agreeing to make further regulations spelling out protections.
For Cormann, regarded as one of the most ideological in the government, it was a significant personal victory.
Palmer’s U-turn will give the government greater hope for cutting deals with PUP on other issues. Hours before the Senate vote, Deputy Prime Minister Warren Truss told the Coalition parties the government was still “learning to deal with the crossbenchers” to achieve its agenda.
The government now knows that even the most unequivocal statements by Palmer are not necessarily immutable – that, whatever he’s said, he may be willing to play. This presumably increases the incentive for it to humour him when it can – provided he doesn’t set the price too high. It will be a game of wits.
On FoFA, Palmer has ended up centre stage, rather than just being part of a political consortium (with Labor and Greens) saying no. He was able to claim ownership of the outcome. “I was negotiating as hard as I could for the people of Australia,” he told reporters.
He negotiated into the early hours of Tuesday. The terms of the deal were read into the Hansard by Cormann (presumably Palmer thought one couldn’t be too careful).
Publicly, the issue was surrounded by confusion. At one stage on Tuesday morning Labor seemed confident it had the PUPs in its camp.
The government will be delighted to have got its way, but it risks alienating older voters, an important Liberal constituency. Its actions continue to carry significant dangers for the Coalition; Labor can campaign on bringing back stronger consumer protections.
Chief executive of National Seniors Australia Michael O'Neill, who previously had exchanges of text messages in which Palmer indicated he was on side with their concerns, accused the PUP leader of stringing him along.
“Changes as important as this should not have been developed in a deal that excluded all the key interests,” O'Neill said.
Palmer indicated it wasn’t just the consumer groups who’d not been consulted – he said he hadn’t spoken with the financial advice industry either in developing his proposals. “I thought it out. I drew on my own experience,” he said, but then quickly mentioned the “team” of senators.
In his letter to Palmer, Cormann pledged the government would make further regulations within 90 days to ensure certain requirements “are explicitly listed in the Statement of Advice provided by financial advisers to their client and signed off by both”. (In fact they’re already in law or in practice covered by professional standards.)
The requirements are that the adviser has to act in the best interests of the client and prioritise the client’s interests ahead of their own; fees are to be disclosed and the adviser will provide an annual fee disclosure statement for post 1 July 2013 arrangements; a client can return financial products under a 14-day cooling off period; and the client has the right to change instructions to the adviser, if for example they experience a change in their circumstances.
The government also agreed to work in consultation with stakeholders to “establish an enhanced public register of financial advisers”, including advisers who were employees. It would have on it their credentials and status in the industry. The initiative for this, a proposal supported by various inquiries and submissions, came from Motoring Enthusiast Ricky Muir.
The vote was lost 31-34, with the minority comprising Labor, the Greens and independent Nick Xenophon. The DLP’s John Madigan abstained.
Critics condemn the Palmer deal as adding red tape without significantly increasing protections.
Cormann won over Palmer on the day when the interim report of the inquiry into Australia’s financial system, chaired by the former CEO of the Commonwealth Bank David Murray, said it “considers the principle of consumers being able to access advice that helps them meet their financial needs is undermined by the existence of conflicted remuneration structures in financial advice”.
While the government insists it has retained the ban on commissions and conflicted advice its changes allow incentive payments for general advice in certain situations.
The government’s regulations have survived despite the background of the Commonwealth Bank of Australia scandal in which many people lost their savings due to bad or fraudulent advice. In the Coalition parties room on Tuesday National party minister Luke Hartsuyker revealed that his parents had been victims of the CBA affair and said there should be a new Senate inquiry. Treasurer Joe Hockey, whose mother-in-law also lost money (although was later compensated) lashed out at the regulator, the Australian Securities and Investments Commission, saying it is “failed miserably and I am very, very unhappy with this”.
In the Senate, Labor’s Sam Dastyari used the line that’s becoming the opposition’s mantra: the PUP was “wagging the tail wagging the dog”. To the Palmerites, he said: “You have been sold a pup”.
There’s another way of looking at it. At the end of the day, Palmer wanted PUP to have the last bark.
Michelle Grattan is one of Australia's most respected and awarded political journalists. Michelle currently has a dual role with an academic position at the University of Canberra and as associate editor (politics) and chief political correspondent at The Conversation.
This article was originally published on <a href="https://theconversation.com/" target="_blank">The Conversation</a>. 
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po-LsXgBTHBmX

FoFA deal encourages government to humour Palmer

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Property managers are not always seen as important as they are when it comes to your investment properties.
While some recognise the strength of a savvy PM, others will settle for the cheapest option.
There are certain skills that make truly excellent property managers stand out. Here are five of these qualities and skills that Property Observer considers non-negotiable in the individual. However, it’s worth bearing in mind that often multiple property managers will be assisting with your property and each company has a different set up. Be aware of who is truly looking out for your interest in the first place.
Picking a property manager is very important (you can read <a href="/news/how-to-choose-the-best-property-manager">our how to on selecting the best one here</a>).
Here are the four skills and qualities that we suggest you look for:
<ol>
<li>
Negotiation skills The ability to negotiate is second to none for a property manager. Your desires are not always going to line up with those of your tenant, and they are going to need to encourage the tenant to compromise and work with them on your behalf. If the tenant wants you to replace an item, and you’re suggesting a repair, then a good negotiator can seamlessly work this one through with a tenant when the circumstances are reasonable. Negotiators will also give you plenty of assistance to solve problems before they hit tribunal, so you’ll find yourself saving time and money. How to test this: Ask the property manager about a situation when they have had to get a tenant to compromise, or talk them round. They should be able to describe a successful outcome and explain how they did it. 
</li>
<li>
Friendly/Personable Whether it’s managing a rent increase, or letting a tenant know they are in arrears, a personable property manager has more of a chance of keeping everyone onside. While keeping you, as the landlord, happy is one thing, tenants are also human and it’s important that your property manager is friendly enough that they are respected, but firm enough that you get what you want. Property managers who truly care about their tenants and landlords as well help in the long run – they will ensure the tenant is kept in a well-maintained property, which will assist you from larger repair bills and potential future lawsuits. They should be friendly, but confident, and able to speak plainly. You should get a sense of how personable the property manager is in the way they speak to you, and treat you, and the manner in which they discuss their tenants. Respectful and courteous is key here. 
</li>
<li>
Thorough The best property managers are thorough. Often this has much to do with the paperwork and systems set up for the job to be done – checklists, forms that must be filled out and processes that they go through can ensure that everything is ticked off seamlessly. Rushed and careless people, as in any business, are likely to cut corners or miss important items they should have checked. For instance, if they don’t check every aspect of the property before returning the bond then you’ll find yourself in strife. Ask about the processes they have in place, and how they ensure that they don’t miss anything they need to. If you’re still not convinced, get them to describe to you how they undertake a part of the process – such as an annual inspection or an end of tenancy inspection. 
</li>
<li>
Knowledge of legislation This can be a little trickier to test, but it’s crucial your property manager knows the rules and regulations surrounding their profession. You don’t want to find yourself or your property manager fined for charging the incorrect bond, or giving incorrect notice periods. You also want to ensure that the finer points of the legislation they’re up to date with. Read through the basic legislation yourself and ask them some simple questions that have straightforward answers. For instance, what is the process for if I find a tenant has subletted the property without my knowledge? Or, when a tenant is in arrears, what steps do we take?
</li>
</ol>
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The four non-negotiable qualities you want from a property manager

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The takeover of department store David Jones looks set to proceed, with the $2.2 billion takeover bid from Woolworths South Africa given the green light from the company’s shareholders yesterday.
<a href="https://www.businessspectator.com.au/news/2014/7/14/dataroom/shareholders-back-djs-22bn-takeover" target="_blank">According to Business Spectator</a>, 89.6% of David Jones shareholders voted in favour of the deal, with 10.4% registering their vote against. David Jones previously said 96.48% of proxy votes were cast in support of the takeover.
The results from today’s vote mean Woolworths has satisfied the two hurdles needed for the deal to go ahead: majority support from the David Jones shareholders present and voting, and at least 75% of the total number of votes by David Jones shareholders present and voting either in person or by proxy.
Yesterday’s vote had been delayed after it was revealed retail giant Solomon Lew had <a href="https://www.smartcompany.com.au/growth/economy/42444-stakes-increased-in-retail-battle-for-djs-as-solomon-lew-grabs-shares-disclosure-breach-to-cost-newcrest-1-2m-midday-roundup" target="_blank">bought up just short of 10% of David Jones’ shares</a>.
The approval of Woolworths’ bid for David Jones by shareholders also paves the way for <a href="https://www.smartcompany.com.au/growth/economy/42526-greens-won-t-support-fuel-tax-hike-woolworths-wants-lew-s-share-of-country-road-midday-roundup" target="_blank">Woolworths to acquire Lew’s 12% share in fashion brand Country Road</a>, of which it already owns 88%.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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ekeating-PWvazjYE25

David Jones shareholders support Woolworths takeover bid

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The mining boom, and the resulting increase in fly-in fly-out (FIFO) workers, has led to housing shortages across Australia. It’s a problem an innovative new website hopes to solve – by turning spare rooms into cash.
Founded by brothers Daniel and Chris Del Borrello, <a href="https://www.fifohousemate.com.au/" target="_blank">fifohousemate</a> is a new website that aims to connect FIFO workers with spare rooms for hire.
Meanwhile, because FIFO workers are looking for places to stay away from their mining or job sites, fifohousemate is open for property listings across Australia.
Co-founder and director Daniel Del Borrello told StartupSmart the service was inspired by his brother’s experiences in trying to rent out a spare room.
“My brother was looking for a housemate – he has a small two-by-one apartment. It’s a small space, and he doesn’t want to have someone living there permanently and cramping his style,” Del Borrello says.
“He came up with the idea of splitting the rent by having a FIFO worker rent a room. But there’s nowhere specifically where you can find a FIFO worker, so he came to me with the idea for the site.”
Del Borrello says fifohousemate can help alleviate the housing shortage by unlocking new properties that can be rented out.
“It connects rentals with FIFO workers, effectively creating new rooms for them to rent,” he says.
“So, for example, a young family with a spare room is probably not going to look for a full-time housemate. But they might be open to having someone use the room one week out of four.”
While the website has been online for just three weeks, Del Borrello says it has already attracted 10,000 visitors and 350 listings.
Around 80% of its visitors currently come from the traditional mining state of WA, although interest is growing rapidly in the other states.
Victoria has already overtaken Queensland as the state with the second-most visitors. Del Borrello predicts the number of listings will only increase as awareness grows across Australia.
This article first appeared on <a href="https://www.startupsmart.com.au">StartupSmart</a>.
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asadauskas-o9wSWMRiAW

The new website turning spare bedrooms into FIFO rental gold

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GUEST OBSERVATION
If NSW and Sydney are representative of the market dynamics on the national scale then there is a straightforward answer to question “Where to buy?”
Centrally located properties in the capital city offer the best return long-term for passive property investors, whether owner occupiers or those buying to let.
A Common Dilemma
Property buyers face a choice between more affordable properties which offer attractive rental yields but are further away from the city centre or in regional locations, or more expensive properties in central locations but with possibly much lower rental yields.
Many property advisors would recommend the first option, as it offers better cash flow from day one with reduced capital commitment, all things being equal.
However, for passive investors the second option is a much more sensible choice. This also holds true for those who buy and hold properties over a long period and are not into more adventurous activities like buying to renovate or redevelop, looking for a quick flip, or to access an exceptionally high yield over a short period of time.
Let’s examine historical information that leads to this conclusion.
The Evidence
Housing NSW <a href="https://www.housing.nsw.gov.au/About+Us/Reports+Plans+and+Papers/Rent+and+Sales+Reports/" target="_blank">publishes quarterly sales statistics</a> for Local Government Areas (LGA) and the records date back to 1991 for many locations, totalling just over 22 years of data.
The information is grouped into inner, middle and outer rings for Sydney, as well as into regional centres (i.e. “Rest of Greater Metropolitan Region”) and the rest of NSW.
Simple analysis of changes in median prices over the past 22 years (from July 1991 to December 2013) reveals quite an interesting picture, as summarised in the table below:
<img src="/images/2014/07/15/Table1_change_in_median_prices_NSW.png" alt="">
The increase in median prices in LGAs located in the inner ring outstrips the rate of growth in any other region in NSW.
This is particularly the case with non-strata dwellings which increased over five times in the last 22 years (that is, December 2013 median price is now six times 1991 median price), comparing to 2.4 times rise for the “Rest of NSW”. The difference over the 10 year period is not as dramatic, with the exception of strata dwellings, but still the pattern is obvious.
The following map presents a 20-year perspective on median sale price growth of non-strata dwellings to highlight the key point [click image to launch interactive map]:
<a href="https://www.propertyobserver.com.au/https://mapdeck.com/256" target="_blank"><img src="/images/2014/07/15/SydneyGMR_20yr_price_change_by_region_.png" alt=""></a>
Let’s chart the relative change in median prices over time for additional insights.
<img src="/images/2014/07/15/Chart1_change_in_median_prices_NSW.png" alt="">
The picture is quite clear – over the long term, median prices grew faster in the metropolitan area than in the rest of NSW.
<img src="/images/2014/07/15/Chart2_Inner_Sydney_median_prices_Dec13.png" alt="">
 <img src="/images/2014/07/15/Chart3_Inner_Sydney_change_in_median_prices_Dec13.png" alt="">
Again, over the long-term median prices in the inner ring LGAs grew faster than for the rest of Sydney (with exception of a short period between 2000 and 2003).
Article continues on next page. Please click below. 
<hr class="system-pagebreak">
What It All Means
There are important clues in the above charts for property buyers. In particular:
<ul>
<li>The inner ring properties show higher volatility in median price movements at the time of economic uncertainty – which means, timing of purchase decisions is crucial and there are bargains to be found for those with contrarian views (or well informed!).</li>
</ul>
For example, median price for the inner ring increased from $515,000 in March 2009 to $822,000 in December 2013 – a jump of over $300,000 or 60% in just four and a half years, comparing to a $98,000 or 28% increase for the regional part of GMR. The bargain buys can deliver even more substantial returns than indicated by changes in median prices.
<ul>
<li>Between 2003 and the end of 2007, which is generally perceived as a period of no price growth in Sydney, the inner ring still recorded material gains in median prices.</li>
</ul>
This illustrates that attractive and desirable locations tend to maintain the momentum when the rest of the market stagnates.
<ul>
<li>Unless you buy two properties in the outer areas for the price of one in the Inner Ring, the math favours buying in the more expensive area.</li>
</ul>
That is, if you opt for a cheaper property instead of buying in the Inner Ring, even if that location experiences comparative price growth to the inner ring, the higher priced location would have delivered better overall profit.
For example, based on the above chart, a $100,000 property purchased in 1991 in regional part of Greater Metropolitan Region would quadruple in value to $400,000 by December 2013 (i.e. $300,000 rise). Not bad. However, a property purchased for a median price in the inner ring, which also quadrupled in value, would increase from $200,000 to over $800,000, delivering $600,000- a whopping $300,000 more- in capital gains.
“But the yield!” you may say. Well, in this case 1% or even 2% better rental yield on the cheaper property would not make up the difference.
<ul>
<li>Outer regions can outpace price growth of the inner ring properties over a short period and price growth in those regions generally lag the metropolitan region – which presents an opportunity for late comers who missed out on the “city boom”, including first home buyers.</li>
</ul>
However, since timing of the purchase plays a crucial role in catching the maximum price movement, investment in regional properties should be viewed as rather opportunistic (not to say speculative) and therefore as suitable for only more adventurous investors or buyers who are prepared to stick to their decision for a long time.
Zooming In For More Details
We know now that the inner ring offers the best opportunity for price growth but it has to be acknowledged that not all locations within the region perform equally well over time.
The following table summarises change in median prices in the last 10 and 20 years for LGAs located in the inner ring.
 <img src="/images/2014/07/15/Table2_change_in_median_prices_Inner_Sydney.png" alt="" style="line-height: 1.3em;">
Some locations are better for non-strata dwellings – <a href="/news">Marrickville</a> for example did quite well with median price increase of almost 4.5 times over 20 years, while other are more favourable for strata properties, like <a href="/news">Waverley </a>which increased by a similar proportion.
The map below highlights where the largest change in median prices was for strata dwellings over 20 year period [Click image to launch interactive map]:
<a href="https://www.propertyobserver.com.au/https://mapdeck.com/250" target="_blank"><img src="/images/2014/07/15/Sydney_LGA_20yr_price_change_strata.png" alt=""></a>
View all maps, <a href="https://mapdeck.com/?deck_id=22" target="_blank">click here</a>.
This illustrates that choice of location and compatible property type are very important considerations in making purchase decisions.
Another observation worth mentioning is that even the worst performing locations in the inner ring did better for strata and non-strata dwellings than the worst regional locations. This should give confidence to the first time buyers or novice investors that buying in the inner ring can compensate to some degree for less than optimal choice of specific location.
End Note
As a prospective buyer – whether investor, upgrader or first home buyer – you are facing three fundamental questions: What to buy?  Where to buy?  When to buy?
Each of these questions can have quite a complex answer, which I will continue to explore on Property Observer with detailed analysis as well as via regular features, like my monthly <a href="/expert-insights/buying/growth-slowing-but-no-sign-that-cycle-has-peaked-june-state-of-the-market-analysis">State of the Market reports</a>.
However, in the end, it all boils down to a simple, frankly quite boring but well proven formula – location, location, location! One cannot go wrong following this simple advice.
Arek Drozda is an independent property market analyst.
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