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

<html><body>
Estimating the number of properties that need to be built in any city to cater for a forecasted population change can be a tricky job.
Particularly when forecasts are prone to change.
Urban Taskforce CEO Chris Johnson notes that the projections over 20 years have changed – from 1.3 million people from the 2013 Metropolitan Strategy for Sydney to 1.575 million in the 2014 projections.
“If the robust population growth continues over 50 years we will need to double the number of houses or apartments in Sydney from the current 1,673,800. Clearly this is a big task and this will require a pro-growth attitude from community groups and councils and strong leadership from the state government. The stalled planning reforms will need to be reactivated to help drive housing supply.” This works out to around 90 dwellings a day.
Property Observer has made the supply situation, from the Urban Taskforce statistics, a little more digestible below (click to open in new window):
<a href="/images/2014/06/12/infographic%20june%2012%20one.png" target="_blank"><img src="/images/2014/06/12/infographic%20june%2012%20one.png" alt=""></a>
Sydney’s future will be one of density, Johnson more recently noted.
“Sydney will become more dense through the trend towards apartment living in urban areas and this will need an efficient rapid transit rail service with an under harbour crossing. By aligning the areas of future growth with new infrastructure Sydney can move from being a provincial city to a real global city rivalling the economic centres of London, New York and Shanghai. We must aspire to a bold future for Sydney but this needs good infrastructure,” he said.
Urban Taskforce predicts that the majority of these new dwellings will be in urban centres and along transport nodes.
Stand out LGA Population Predictions for 2031 (figure stated is total people in LGA for 2031)
<ol>
<li>Penrith: 261,450 Due to: Overseas migration (some internal migration loss noted) 
</li>
<li>Blacktown: 473,300 Due to: Overseas migration and fertility rate 
</li>
<li>Auburn: 130,600 Due to: Overseas migration and fertility rate (some internal migration loss noted) 
</li>
<li>Parramatta: 253,900 Due to: Overseas migration (some internal migration loss noted) 
</li>
<li>The Hills: 280,900 Due to: Overseas migration 
</li>
<li>Liverpool: 288,950 Due to: Overseas migration and fertility rate 
</li>
<li>Camden: 162,350 Due to: Internal migration gain and fertility rate</li>
</ol>
Source: NSW government 'Your Future NSW'
Click here to see the <a href="https://www.planning.nsw.gov.au/en-au/deliveringhomes/populationandhouseholdprojections/yourarea.aspx" target="_blank">projections for your LGA</a>.
Photo courtesy of Duncan Hill/Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
</body></html>

jduke-EHk3XBmHkn

Sydney's population density increasing, here are the top growth areas: Urban Taskforce

<html><body>
My usual property outlook presentation these days covers two main themes – cycle and structure.
The interplay between these two elements makes up the property market’s DNA.
I have written about the property cycle several times over the last 12 months and have also covered four of the main five ingredients that make-up the most important structural foundations supporting the Australia residential market. These four pillars include employment, wages, income and the cost/availability of money.
This will cover the most vital ingredient for mine, demographics.
Now I am not talking about population growth per se, but a deeper cut of the available statistics.
Also, I am not that interested in the past, but much more interested in the future.  I am talking about age forecasts.
We are lucky in Australia that the ABS, after each Census, recalibrates their age-related forecasts.  They did so late last year, with their estimates reaching out as far as 2100.  Now we won’t get that ahead of ourselves but we will have a look at what’s likely to happen over the next decade or so.
Housing demographics
I don’t really like generational segregation i.e. baby boomers; generation X and the like – I think they are too broad and don’t necessarily translate well when it comes to real estate action.
We instead break the market into seven segments:
<ul>
<li>
Children – aged up to 17 years.  Living mostly – one hopes – at home; and whilst not a direct influence on underlying demand, they are captured in the larger household sizes of first home buyers (3.3 people on average per dwelling) and the upgrading market (2.99 people per home).</li>
</ul>
<ul>
<li>
Young renters – 18 to 29 years.  Statistically, 77% of them rent, many rent apartments in our inner cities.</li>
</ul>
<ul>
<li>
First home buyers -30 to 44 years.  Yes, up to 44 years!  HECS, partnering later; parents as friends; travel; options galore – so yes, for many, it is not until their mid to even late 30s that they buy a home.  
</li>
</ul>
<ul>
<li>
Upgraders – 45 to 59 years.  Having children later means that many, even well into their 50s, still have teenage children at home.  With teenagers you want space – demand is highest for houses, with lots of bedrooms, a pool etc. 
</li>
</ul>
<ul>
<li>
Downsizers – 60 to 74 years.  Many want to move into something with a nexus to the ground; in a small project and if possible in their existing neighbourhood.  Living close to the grandchildren is also a strong locational consideration.</li>
</ul>
<ul>
<li>
Age-related care - over 85 years.  At this age – and it is mostly women who live this long – some form of assistance is often required.  But many who live to 85 years, the statistics show, can expect another ten years of life, so nursing homes (for the sake of labelling them) aren’t necessarily God’s waiting room these days.</li>
</ul>
Spending on housing peaks when people upgrade, and the money spent on housing, and the number of moves made, drops sharply once we are in our mid-to-late 50s.  See the chart below.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/housing-demo1.jpg"><img class="alignnone size-full wp-image-7294" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/housing-demo1.jpg" alt="housing demo#1"></a>
Market outlook
Our second chart outlines underlying demand – the number of new properties needed per annum – by each housing segment over time.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/housing-demo-2.jpg"><img class="alignnone size-full wp-image-7296" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/housing-demo-2.jpg" alt="housing demo #2"></a>
This chart suggests:
<ul>
<li>
Young renters – drop in market demand over the next 10 years.  My experience is that town planning is a decade behind the actual market and the willingness to approve downtown high-rise apartments in big blocks should have been done ten years ago, not now.  The demand for product is much smaller than many realise.  Well, that’s what the statistics are telling us.  And it is for that reason we aren’t advising on or advocating large scale downtown apartment projects these days.</li>
</ul>
<ul>
<li>
First home buyers – significant increase in demand.  Affordable housing is increasingly important, especially given the casualization of the Australian workforce.  Many may also remain renters out of choice or force.  But the potential demand is here.  More affordable product is the answer, not grants or handouts. 
</li>
</ul>
<ul>
<li>
Upgraders – a drop in demand.  This will slow down the momentum of the housing market in coming years, especially so once interest rates rise.  This is one of the reasons, we believe, why Australia’s housing market will contract post 2016.  
</li>
</ul>
<ul>
<li>
Downsizers – strong lift in underlying demand.  Many will opt to age in place, as the upgrading market that usually buys their property will not be large enough to consume this supply.  Also, many would sell if they could find smaller and affordable local digs.  The irony here is that this is the demographic that mostly protested against local infill development in the past.  However, some are reassessing this non-development stance.  First home buyers are another potential buyer group, but these larger houses will need to be retrofitted to allow shared accommodation to help first timers pay the mortgage.  This is the space in which town planners and urban decision makers need to spend more time, and not in ten years’ time! 
</li>
</ul>
<ul>
<li>
Retirement – a big shift too and more so in the 2020s.  Living in more compact housing suits this demographic – more travel; little maintenance and convenience.  Importantly, they like a limited number of neighbours; and they like their pets too.  Pet friendly developments are a must. 
</li>
</ul>
<ul>
<li>
Age-related care – little change, but post 2020 a massive shift upwards.  The ABS statistics suggest that during the 2030s, the largest single housing market is Australia – with the need to build close to 40,000 new dwellings per year – will be for those aged 85 or older.  It is little wonder that the likes of FKP and Eureka Group Holdings Limited are focusing on existing and future sites to cater for this pending demand.</li>
</ul>
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
</body></html>

michaelmatusik-49YzLvdmNv

The demographics shaping Australia's housing future

<html><body>
Good Negotiators see lies as actions
What is it we are trying to do? Reach an agreement.
Why is the agent lying to us? To reach an agreement – hopefully with us!
Lies can be very positive things
<ul>
<li>They can be an attempt by the other side to get a connection which they hope will lead to an agreement – they show a willingness to treat.</li>
<li>They are often a way to the truth if that is what you seek</li>
</ul>
Lies are actions designed to get a connection that otherwise (in the opinion of the liar) may not have happened.
Good Negotiators are looking for connections, even with liars
Connection – is the first and last step of any deal. Without connection you have no deal. Connection is the key ingredient of an agreement, more so than price.
Price is a figurative expression, the end product, of a connection of minds that have formed an agreement based on perceived facts and the actions of the parties.
A well-executed lie can get a connection – how many people don’t bid until there is another “offer”, but then bid under threat of one and a deal is struck.
A poorly executed lie can destroy a connection – the buyer will pay the asking price and probably more, but just doesn’t. Why because they don’t trust the agent, based on previous perceived lies and so moves onto another home.
But we’ve found its not always the lie that breaks or prevent the connection – it’s the reaction to it that does.
Good Negotiators and the blunt instrument
If you cannot get connection in a negotiation then you are forced to use a blunt instrument until you get a connection.
And that blunt instrument is?
No, it’s not a club or a fist – its cash.
That’s expensive to you or your client.
Buyers most affected by liars.
<ul>
<li>Out of the market for a long time</li>
<li>Interstate and overseas and different cultures</li>
<li>Not business orientated or</li>
<li>Buyers with egos not suited to best dealing with agents</li>
</ul>
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
Good Negotiator and the moral high ground
Creating that connection isn’t best served by creating an emotional response and putting yourself on the moral high ground above those ‘lowly” agent liars. You might feel better able to defend yourself against the lies, but it also lessens your chances of connection.
Have you never said something or changed your mind, in an attempt to influence, that you think might be or you know to be different from what you have said. Are you really all alone on that moral high ground?
In Melbourne home buying you are a further away from the action when you are on the moral high ground and that means less chance of connection.
And remember the lesser the connection, the greater the use of the blunt instrument (cash) or you miss out.
Don’t let lies drive you to the moral high ground without due consideration.
Good Negotiators have very few attachments
Yes all buying and selling agents have heard the line “I’m not attached to this home”.  Most times when this is said a neon sign miraculously appears above the speaker’s head and its flashes: Liar, liar pants on fire – I am actually really attached to this home.
The better negotiators, whether liars or not, are good connectors; but they have little emotional attachment to a number of the things they say and you say.
In professional negotiation we have found if you limit the attachment, you limit the emotion and then you minimise the hurdles to connection between the parties.
Non-attachment is not a concept determined by the spoken word. It’s determined by an emotional feeling and only the very skilled can disguise their attachments from professional negotiators.
Paradox: Non-attachment is a characteristic of a good negotiator but also a characteristic of a good liar.
Good Negotiator and reading the play
A lie is good when you are the other side’s intended target of the deal and you read it correctly.
A lie is bad when you misread the lie and/or you are not the other side’s intended target of the deal.
Good negotiators can for the most part read the differences between a lie and a truth.
We (James Buyer Advocates) don’t get every nuance, every subtle ploy exactly right when dealing with liars and we don’t need to – because to do so means the experienced negotiator is focussing on the minutiae. Good Professional Negotiators always have an eye on the big picture – the client’s desired outcomes.
Good Negotiators carry a big stick (if they can find one)
Good negotiators carry a big stick in dealing with liars – please don’t read into this article that we are saying good negotiators should acquiesce to liars and accept lies.
Good negotiators don’t condone lies – after all its not an efficient way for a market to operate.
The big picture – good negotiators hit back in a timely manner (where appropriate) where a lie can be used against the liar. Many, many times a lie designed to increase the price actually lowers it – when used well against the liar by a professional negotiator.
But good negotiators don’t focus on hitting back at the expense of the client’s desired outcomes.
If we are lied to and it’s appropriate (to our clients benefit) we will return a lie with interest, but we don’t do so in a highly charged emotional state.
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
Good Negotiators &amp; TRUST – lying is not the only way to deal
A number of the better agents, be they buyer or seller agents, do not “materially” lie to their clients – they really don’t.
I’m not on the moral high ground here – its purely business. It’s never a good battle strategy to have mistrust within your own ranks. We don’t buy around 85% of the homes we go after at auction and over 90% of the homes at EOI because we are perceived as liars to our buying clients.
And we didn’t buy over 100 homes in 2013 around the $2 million to $4 million mark because we lied to those above same very experienced selling agents or they lied to us on a regular basis. A number of professional deals between experienced and competent negotiators are based on a healthy amount of trust and to be trusted you cannot lie (to your advantage) on a regular basis to those you represent or deal with (and get away with it).
You may have noticed that we have deliberately avoided a specific definition of what constitutes a lie – we have circled around it. Why? In our opinion, a unilaterally agreed definition of a lie is not the main game in Melbourne home buying. Is it a lie or is it bullshit and is their a difference? It is not important whether or not you and I think that a particular statement is a lie. If you perceive it is a lie, then for all intents and purposes it is a lie to you.
Healthy trust – is not blind trust – scepticism and independent, competent due diligence must always be part of the armoury of a good professional negotiator – after all the other side’s desired maximum outcomes are rarely the same as yours.
So for every liar and deal done on a lie there are many more we do with truth tellers and deals done on truths.
Good Negotiators and culture
In our early days of multi-cultural and international dealings we would get upset if things didn’t go the way for our clients we wanted them to go. And as you know, being upset means getting emotional, which leads to body changes and this was not in our future clients best interests. So we changed. 
As previously stated, successful negotiators often look on a negotiation as a battle situation – they might follow Sun Tzu’s teachings – he would consider as positive, a deceitful move on the enemy if it resulted in a victory.
Different cultures have different ways of looking at what happens within a negotiation.
<ul>
<li>When I’m dealing with Indian sellers, agents or clients, for instance, I perceive it to be a moving goalposts culture.</li>
<li>When I’m dealing with Chinese people the goalposts seem to be very firm – but sometimes it takes me a long time to find where those goalposts are.</li>
<li>Both of those cultures operate in a different way to my Anglo-Christian upbringing – which lets face it has a far from perfect historical past in negotiations.</li>
</ul>
To say everybody who thinks differently to you is wrong and a liar will really only hurt one person in Melbourne home buying – you; or in our professional case, our buying client.
The same goes for the agents' culture. Each real estate agency in Melbourne has its own particular culture and there are huge cultural ‘moral’ rule differences between those companies.
RT Edgar is very different from Kay and Burton and Jellis Craig is different from Marshall White – they all have their own way of operating with people on the other side of their fence (you the buyers).
And as buyers you really need to understand that many agents do not perceive what they do to you as morally wrong and who’s to say which actions are and which aren’t?
Lies or perceived lies are endemic within the Melbourne property market.
Some may say all agents are liars.
Some may say all humans are liars.
The recognition of a lie can affect your body and mind chemically and make you react in ways detrimental to your best interests.
If you want to maximise your options and ultimately your longer term outcomes when buying in $1 million plus Inner Melbourne in 2014 then we feel you need to have an understanding of lies when dealing with agents and multicultural negotiations.
If you cannot deal with lies then your alternatives may well be limited to offering more cash or to missing out.
So don’t get mad or get even, get what you really want!
Stay focused on your longer term emotional, financial and physical outcomes above all else.
At times lies us affect us all – but its the circumstances that surrounds the lie and our reactions to it, rather than the initial lie itself which ultimately determines the damage it does to us.
Mal writes weekly auction reports, advice and in-depth market analysis on <a href="https://www.jamesbuyeradvocates.com.au/" target="_blank">James' website</a>. 
</body></html>

maljames-vHwm28JUAa

How good negotiators deal with liars: Home buying in the Melbourne property market

<html><body>
In the June 2014 Productivity Commission interim report the Relative Costs of Doing Business in Australia: Retail Trade it notes that one of the major costs for retailers is, of course, occupancy.
However, it also suggests that the high costs may be partly due to restrictive planning.
“Occupancy costs, including rent, also account for a substantial share of many retailers’ costs of doing business in Australia. In this context, a number of submissions have pointed to what they view as unnecessarily restrictive approaches to planning and zoning by state and local governments as contributing to higher costs for retailers —both in terms of rents and compliance,” the <a href="/news">findings note</a>.
“The Commission previously estimated that reforming development assessment processes that apply to commercial and industrial sector applications (which includes applications for retail space) could generate net cost savings of around $240 million per year.”
With rents and other costs rising at a faster rate than capital prices and final retail prices (as can be seen in the graph), clearly this is an issue for all retailers and landlords providing their accommodation.
<img src="/images/2014/06/11/chart%20june%2011%20one.png" alt="">
Source: Relative Costs of Doing Business in Australia: Retail Trade Productivity Commission Interim Report June 2014
You can see how rental costs compare to overseas below.
<img src="/images/2014/06/11/chart%20june%2011%20two.png" alt="">
Source: Relative Costs of Doing Business in Australia: Retail Trade Productivity Commission Interim Report June 2014
Occupancy costs are without a shadow of a doubt highly related to location.
Those who are not in prime real estate and higher rent situations do not often consider it a major issue, while those that are and that pay significantly little rent as a percentage of sales also do not.
The Commission notes it seeks further information on the costs of doing business, including rent, across different categories of retailers in Australia.
This includes the extent to which these costs have changed in recent years, the impact of business size on cost structures and the extent to which e-commerce is affecting cost structures.
The Commission also seeks further information on the impact of planning and zoning laws on occupancy costs, as well as asking: "To what extent are occupancy costs also influenced by the behaviour of retail property owners?"
<img src="/images/2014/06/11/chart%20june%2011%20three.png" alt="">
Source: Relative Costs of Doing Business in Australia: Retail Trade Productivity Commission Interim Report June 2014
The final report is expected in October 2014.
</body></html>

Costs of doing retail business sees Productivity Commission set to look closer at rents

<html><body>
A freestanding IGA supermarket has secured a seven figure sum after it was purchased by a Chinese investor.
The buyer put their faith in the numbers, paying $3,398,888 for the Boondall supermarket. The number eight is associated with prosperity in Chinese culture. The transaction reflected a yield of 8.1%.
Set on a 3,434 square metre site at 2138 Sandgate Road, the 790 square metre supermarket was developed by Hardev Property two years ago. It was sold by in an off-market transaction by Michael Harcourt and Jon Tyson of Savills Retail Sales.
Luck aside, Harcourt said the high profile main road location was a key factor for the buyer.
“IGA Boondall is underpinned by a 10-year lease with a further three five-year options and also features convenient on grade parking for approximately 51 vehicles,” said Harcourt.
According to Tyson, the property combined a number of highly sought after characteristics in the convenience retail market.
“It boasts a prominent left-hand location to capture outbound traffic out of Brisbane and a core non-discretionary offering of grocery and fresh food items,” said Tyson.
“Having opened its doors just two years ago, the Boondall IGA Supermarket is now well established and supported in the local community. As Savills originally secured IGA as the tenant, it is rewarding to have now closed the loop on the property with a strong sales result for both vendor and buyer,” he said.
 
</body></html>

jrichardson-uRX5hFdKfN

Chinese investor pays lucky sum for Brisbane IGA

<html><body>
Leighton Holdings’ chief executive Marcelino Fernandez Verdes has become executive chairman.
The outgoing chairman Bob Humphris, who announced his retirement at the contracting group’s annual general meeting last month, will leave the company on Wednesday.
Fernandez Verdes became CEO of Leighton in March replacing the former CEO Hamish Tyrwhitt.
Russell Chenu, a former chief financial officer of James Hardie, and Trevor Gerber, a former group treasurer of Westfield Holdings, have joined Leighton’s board as non-executive directors.
</body></html>

jchancellor-FAypfDUnLy

Fernandez Verdes becomes Leighton Holding's executive chairman

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
National Storage REIT (NSR) intends on expanding its Perth, Western Australia property portfolio.
The portfolio will be expanded following the purchase of a self-storage facility at Wangara featuring 579 units across 5,300 square metres of net lettable area. The purchase price for Wangara is $10.9 million at a projected year one passing income yield of 9% (excluding transaction costs).
There will also be a development site at Kardinya, 7 kilometres east of Fremantle, covering 5,700 square metres with planned construction for 417 units over approximately 4,400 square metres of net lettable area. 
Kardinya will be purchased for $8 million and is forecast to generate a passing income yield of over 10% once occupancy stabilises.
The group also announced a development expansion of an existing NSR operated leasehold site at Cockburn. 
The development cost for Cockburn will be borne by the vendor with additional rent to be incurred by NSR, as its existing lease is expanded to cover the new building.
National Storage is one of the largest self-storage providers in Australia, with 65 centres providing tailored storage solutions to over 23,000 residential and commercial customers.
NSR is the first independent, internally managed and fully integrated owner and operator of self-storage centres to be listed on the Australian Securities Exchange (ASX). 
In April, NSR <a href="/expert-insights/investing/national-storage-reit-buys-townsville-self-storage-property-for-17-million">bought a Townsville self-storage facility for $17 million</a>.
</div>
</div>
</div></body></html>

National Storage expands portfolio with Perth purchases and developments

<html><body>
Propertylink announced it has acquired 10 industrial properties in NSW and Victoria from Abacus Property Group and Abacus Diversified Income Fund II for $106.75 million.
Led by former Valad chief Stephen Day, it takes the total value of the Propertylink Australian Industrial Partnership (PAIP) assets to $203 million.
Day says that the acquisitions demonstrate their intention to increase their industrial property holdings Australia wide.
“PAIP portfolio assets now range from some solid long lease assets with excellent tenant covenants blended with traditional multi-let estates and single tenant distribution centres with shorter [Weighted Average Leases to Expiry] which present an opportunity for Propertylink to add value or to achieve higher yields and total returns with hands on asset management,” said Day.
“The PAIP industrial strategy is offering great “risk adjusted” returns in the current climate due to the light capital expenditure requirements, relatively low incentives required to secure tenants and, most importantly, strong capacity to achieve a high proportion of targeted total returns to investors coming from cash distributions from rental income.”
According to Peter McDonald, head of property at Propertylink, there are potential plans to subdivide the assets.
“The portfolio will benefit from strong asset management and we’ll create significant upside by knuckling down and really working the assets,” says McDonald.
“The 9.4% property yield is very attractive, however our team is looking forward to working on the various value-add initiatives that include potential land sub-division, strata sub-division, and bulky goods development. We have just added former JLL director Casey Greenberg to the Propertylink Asset Management team and his appointment has come at an opportune time with this acquisition”, he says.
The Abacus portfolio is the largest acquisition since PAIP was established in March 2014. A separate Propertylink fund acquired two long lease industrial assets for $63 million in October last year.
PAIP now comprises 17 assets Australia-wide, with backing from Goldman Sachs and London-based Grosvenor Group. 
Four of the properties were held on the Abacus balance sheet and six were in an unlisted retail fund it managed.
The sales were above the aggregate book value, Abacus managing director Dr Frank Wolf said.
The entire portfolio has a 97% occupancy.
The Abacus deal was brokered by CBRE agent Matt Haddon and Colliers agent Tony Iuliano.
</body></html>

Propertylink adds 10 industrial properties to portfolio

<html><body>
Publican Fraser Short is planning a 270-seat restaurant at Liner House in Bridge Street, Sydney.
Liner House is owned by the Moran health care family, tucked beside the older Burns Philp building between George and Pitt streets.
Liner House was built between 1959 and 1961, designed by the architects Bunning and Madden, whose best-known work is the National Library in Canberra.
It is known for its striking post-war international architecture, and ­distinctive mural screen by Australian artist Douglas Annand. 
Liner House is also located within a busy restaurant strip emerging on Bridge Street that includes Neil Perry’s Rockpool, Ryans Hotels’ Republic Hotel, Fratelli Fresh and Cafe Sopra, and newcomer Bridge Street Garage. The restaurant will take up the ground floor and mezzanine levels of the Sulman Award-winning Liner House.
The $1 million interiors are set to be installed by Alexander and Co.
The Moran Group bought the site for its headquarters for around $6.25 million in 1997.
The building had been in the ownership of an investment consortium, including Jack Diamond of Rose Bay, which paid $5.8 million for it in 1986.
In the late 1980s there was a heritage inquiry into the treatment of a spiral staircase and bronze mural that was at the time only 28 years old.
The six-storey building designed as a shipping line office had been initially covered by an interim conservation order in 1985.
The "Modern Movement" building won a Sulman Medal for architecture in 1962 for Walter Bunning.
Photo courtesy of Sydney Architecture. 
</body></html>

Moran family's Liner House set for Fraser Short restaurant

<html><body>
Peter Bond, the chief executive of gas company Linc Energy, has listed the Redfern post office premises.
The Business Review Weekly rich lister <a href="/news/nsw/redfern-proving-magnetic-for-coal-executives">bought it in mid-2011</a> when the former post office commercial premises at <a href="https://www.propertyobserver.com.au/new-south-wales/redfern-proving-magnetic-for-coal-execs/2011062250564" target="_blank" style="line-height: 1.3em;">113-119 Redfern Street were sold by spruiker Max Markson</a> for $2,125,000.
The building, which has a clock tower and bell, last sold through agents Paul Ephron and Ben Forsyth. Markson had bought it from Sorin Dascalu &amp; Associates in 2006 for $1.9 million.
The former Redfern Post Office, in Redfern, NSW, was built in 1882. It has a two-storey Victorian Italianate building plus a dominant four-and-half-storey corner clock tower. The post office included a telegraph office, parlour, drawing room, three bedrooms, kitchen, a servant’s room, bathroom, scullery, washhouse, fuel shed and two stall stables. 
In 1880, £3000 was provided for the erection of the Redfern post office, and then the Public Works added a clock tower for an estimated extra £700.
The building has 480 square metres of internal space on its 330-square-metre Redfern Street block. 
<a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-redfern-nsw-2016/227755" target="_blank">It has been listed for June 26 auction</a> through McGrath agents James Dack and Chris Chung who don't give any leasing details in the marketing.
One of the largest property sales since was an 1891 heritage building, the Redfern Electric Light Station with 1042 square metres of space.
The grand neoclassical Renwick Street building, the former home of Rolling Stone magazine was briefly converted into the chic showrooms of antiques dealer Martyn Cook and the interior designer Thomas Hamel.
They sold in mid-2013 to publicist Sue Cato of Cato Counsel for $4.5 million having bought it unrenovated for $2.865 million in 2010.
 
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News