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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The Queensland government has raised the possibility of ‘calling in’ the application of a $30 million Masters Home Improvement store in Bundaberg. If the call in goes ahead, appeals against the development will effectively be ceased.
Deputy Premier and State Development, Infrastructure and Planning minister Jeff Seeney has issued a ministerial call in notice for the retail development, which has undergone a series of setbacks and is the subject of community concern.
As per the 2009 Sustainable Development Act, if the development is called in Seeney will become the assessment manager for the development application, allowing him to assess the merits of the application against state interests. 
According to Seeney, the Masters store development is of interest due to its significant investment potential for the region. 
 “Bundaberg Regional Council has informed me this proposed development could benefit the eastern growth corridor of Bundaberg,” said Seeney. The government’s proposed call in notice for the development notes that the council believes that the project represents a $13 million investment in Bundaberg’s eastern growth corridor.
“The development proposal for 128 FE Walker Street, Kepnock, has the potential to create 186 jobs during construction and 130-150 ongoing operational jobs,” Seeney said.
He noted that proposed retailer could have flow on effects for investment in the area. 
“The development could also spur on other business investment in the Kalkie/Ashfield growth corridor, areas identified in council’s draft planning scheme and the Wide Bay Burnett Regional Plan 2009,” said Seeney.
A 2011 Economic Impact Assessment report by advisory firm Duane Location states that upon completion the Masters Home Improvements store will achieve total sales of about $34 million (approximately $2,500 per square metre) this year. 
The development received council approval on January 24 earlier this year despite a number of submissions from local residents and businesses opposing the development which will take place on formerly residential land. However, three appeals have since been lodged against the approval. One was lodged by the Kepnock Residents Action Group, another by Mirvac and the third by AMP Capital. 
Mirvac, which owns the local Hinkler Central shopping centre, cited the site’s Residential A zoning as grounds for its objection to the development, as well as the potential detrimental impact the Masters store would have on existing retailers. AMP Capital raised inconsistencies in the council’s planning and development practices.
If Seeney does call in the development, his subsequent decisions cannot be appealed in the Planning and Environment Court. 
Affected parties will have until 12 May to make a submission regarding the development and ministerial call in. Seeney must decide on whether or not to call in the application by June 6.
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jrichardson-uRX5hFdKfN

Queensland government considers call in for Bundaberg Masters store

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Though negative gearing has short term benefits, many investors are looking for properties that can bring them high returns for a low price.
Using statistics from RP Data, Property Observer has put together the top five suburbs for unit rental yields by state.
Rental yield, the proportion of rental income to a property’s purchase price, is one of the key indicators of value for an investment property.
Predictably, New South Wales and Queensland currently offer the best yields for units. The price pressure in the Sydney rental market is well known, and Queensland has flagged by many of our observers as the next market to watch.
However, a property’s rental yield is only one factor in its worth to you as an investor. A property may have a high yield because property prices are depressed in that area and a local economic downturn has lowered the population’s buying capacity, giving it little potential for capital growth.
Another suburb may have a low rental yield because it consistently attracts blue-chip buyers and there isn’t much of a rental market. So while searching for an apartment, remember to consider median values, location, population and the economy.
New South Wales
While Broulee has the highest rental yield for units of any suburb in Australia, it may not be the investment you’re looking for – the seaside resort town on the south coast had a population of just 2,897 in 2011.
<ol>
<li>
<a href="/news">Broulee</a>  Rental yield: 12.36% Median price: $305,000 
</li>
<li>
<a href="/news">Ultimo </a> Rental yield: 11.42% Median price: $255,000 
</li>
<li>
<a href="/news">North Albury </a> Rental yield: 8.52% Median price: $116,000 
</li>
<li>
<a href="/news">Nambucca Heads </a> Rental yield: 8.32% Median price: $200,000 
</li>
<li>
<a href="/news">Bella Vista </a> Rental yield: 8.13% Median price: $381,000</li>
</ol>
Other high yielding NSW suburbs for units: <a href="/news">Huskisson </a>(7.49%), <a href="/news">Lavington </a>(7.44%), <a href="/news">Taree </a>(7.44%), <a href="/news">Kooringal </a>(7.38%), <a href="/news">Raymond Terrace</a> (7.21%).
<hr class="system-pagebreak">
 Australian Capital Territory
<ol>
<li>
<a href="/news">Bonner</a> Rental yield: 6.78% Median price: $345,000 
</li>
<li>
<a href="/news">City </a> Rental yield: 6.3% Median price: $425,000 
</li>
<li>
<a href="/news">Franklin</a> Rental yield: 6.29% Median price: $310,000 
</li>
<li>
<a href="/news">Downer </a> Rental yield: 6.26% Median price: $299,000 
</li>
<li>
<a href="/news">Lyons </a> Rental yield: 6.12% Median price: $289,000</li>
</ol>
<hr class="system-pagebreak">
South Australia
<ol>
<li>
<a href="/news">Risdon Park South</a> Rental yield: 9.83% Median price: $86,000 
</li>
<li>
<a href="/news">Whyalla</a> Rental yield: 8.67% Median price: $168,000 
</li>
<li>
<a href="/news">Risdon Park</a> Rental yield: 8.4% Median price: $99,000 
</li>
<li>
<a href="/news">Berri</a> Rental yield: 8.2% Median price: $111,000 
</li>
<li>
<a href="/news">Davoren Park</a> Rental yield: 7.89% Median price: $129,000</li>
</ol>
<hr class="system-pagebreak">
 Tasmania
Tasmania had the lowest rental yield for units of any state or territory. Despite offering some of the <a href="/expert-insights/investing/the-top-10-most-affordable-capital-city-suburbs-for-units-rp-data">cheapest units in Australia</a>, there isn't the rental market for units to sustain high yields.
<ol>
<li>
<a href="/news">Brighton </a> Rental yield: 6.22% Median price: $218,000 
</li>
<li>
<a href="/news">Claremont </a> Rental yield: 6.02% Median price: $186,000 
</li>
<li>
<a href="/news">Glenorchy</a>  Rental yield: 6.65% Median price: $192,000 
</li>
<li>
<a href="/news">Hadspen </a> Rental yield: 6% Median price: $130,000 
</li>
<li>
<a href="/news">Lutana </a> Rental yield: 5.99% Median price: $215,000</li>
</ol>
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 Northern Territory
<ol>
<li>
<a href="/news">Braitling </a> Rental yield: 7.23% Median price: $302,000 
</li>
<li>
<a href="/news">Katherine </a> Rental yield: 7% Median price: $260,000 
</li>
<li>
<a href="/news">Gillen </a> Rental yield: 6.93% Median price: $315,000 
</li>
<li>
<a href="/news">Larrakeya </a> Rental yield: 6.82% Median price: $465,000 
</li>
<li>
<a href="/news">Desert Springs </a> Rental yield: 6.54% Median price: $370,000</li>
</ol>
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Queensland
Queensland's rental yields outperformed most units in the rest of the country. But as we saw in New South Wales, if it looks too good to be true, it usually is. Middlemount, with a median unit rental yield of 11.97%, has a population of just 1,914 according to the 2011 census.
<ol>
<li>
<a href="/news">Middlemount</a> Rental yield: 11.97% Median price: $315,000 
</li>
<li>
<a href="/news">Andergrove </a> Rental yield: 11.43% Median price: $178,000 
</li>
<li>
<a href="/news">Woree</a> Rental yield: 9.75% Median price: $120,000 
</li>
<li>
<a href="/news">Bungalow </a> Rental yield: 8.8% Median price: $130,000 
</li>
<li>
<a href="/news">Garbutt</a> Rental yield: 8.76% Median price: $190,000</li>
</ol>
Other high yielding suburbs for units: Holloways Beach (8.5%), Manunda (8.4%), Logan Central (8.19%), Beenleigh (7.95%), Manoora (7.87%), Slacks Creek (7.87%).
<hr class="system-pagebreak">
 Victoria
Unit yields in Melbourne have been low for some time, due to high prices in the inner city and increasing supply with new unit developments. Victoria's highest yielding suburbs are all outside of the capital city, save the northern suburb of Macleod. 
<ol>
<li>
<a href="/news">Hamilton</a> Rental yield: 8.9% Median price: $129,000 
</li>
<li>
<a href="/news">Macleod </a> Rental yield: 7.31% Median price: $198,000 
</li>
<li>
<a href="/news">Alfredton</a> Rental yield: 6.87% Median price: $191,000 
</li>
<li>
<a href="/news">Redan </a> Rental yield: 6.83% Median price: $168,000 
</li>
<li>
<a href="/news">Horsham </a> Rental yield: 6.68% Median price: $179,000</li>
</ol>
<hr class="system-pagebreak">
 Western Australia:
<ol>
<li>
<a href="/news">Newman </a> Rental yield: 9.95% Median price: $575,000 
</li>
<li>
<a href="/news">Boulder </a> Rental yield: 8.9% Median price: $175,000 
</li>
<li>
<a href="/news">South Hedland </a> Rental yield: 8.39% Median price: $558,000 
</li>
<li>
<a href="/news">Piccadilly</a> Rental yield: 7.83% Median price: $236,000 
</li>
<li>
<a href="/news">Kalgoorlie </a> Rental yield: 7.74% Median price: $235,000</li>
</ol>
Remember, while performance indicators can give you a superficial understanding of a suburb's investment value, most offer the greatest value as comparative measures.
If you're considering a property investment, look back at the yields historically found in that area to get an understanding of which way the trend is heading, compare your figures with other areas, and consider other valuation tools.
This article article has been amended to include South Australian figures.
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The top suburbs for unit rental yield around the country, Ultimo shines

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GUEST OBSERVATION
Despite the global financial crisis now in the rearview mirror, investor risk aversion continues drive the flight to quality - prime office, retail and industrial assets in major markets.
Australia, with its yields offering a premium to markets such as New York, London and Paris, continues to be a magnet for large global pension funds and sovereign wealth funds hunting for yield. With their big cheque books they are aggressively competing with domestic investors for a limited supply of prime assets.
As a result, cap rates have been pushed lower and prices higher – the so-called “weight of money effect”. Investors are being forced to pay up for the perceived safety of these prime assets – and in some cases they are really taking on more risk as their assets are being “priced for perfection”. This has caused a disconnect between real estate capital and real estate space markets.
The underlying real estate fundamentals continue struggle post the GFC. Across our major CBD office markets, vacancy rates and tenant incentives remain elevated. The Brisbane CBD office market hit a record high vacancy rate in January and tenant demand across Australia’s office markets was the lowest on record in 2013. Retail sales have been subdued albeit it is now showing signs of picking up. Industrial demand spurred on by changes in logistics and distribution has been the one bright spot.
Part of the justification I continually hear is that the yield spread – the difference between real estate yields and real bond yields - is at historical highs. Prime Sydney CBD office yields are around 6.75% offering a spread of some 470 basis points which is 50 basis points higher than the long-term average. However, a spread this wide is unlikely to last. Bond yields are starting to tick up at the same time as cap rates are firming. Hopefully, any fallout from rising bond yields on real estate values will be offset by improving real estate fundamentals and income growth.
We aren’t at the heady days of the late 90s or 2007/2008 when Sydney CBD prime office yields hit a record low of 5.5% in both periods. So we can draw some comfort. But at the same time we should not get complacent. The “weight of money effect” if it continues could push yields well below today’s level. I don’t think they will get that low in this cycle but one can never rule it out – when the money’s flowing it’s hard to stop.
So what should investors be looking for in the coming year?
I have always taken the view that you make money in real estate by buying well. Overpaying now for an asset in a low growth, low inflation environment doesn’t give you many get out of jail free cards. Sure the underlying real estate fundamentals should improve as economic growth picks up but paying too much now for that future growth may cause some investors pain down the track. Discipline buying is critical.
Investors could look beyond prime markets and seek out quality assets in non-prime locations which are trading at a yield premium to the prime locations. Suburban office markets are definitely worth looking at.
Investors prepared to move up the risk curve could purse value-add strategies – repositioning assets, re-leasing etc to create core product for the more risk averse investors. Timing the entry and exit, and active asset management, are critical to successfully executing on this strategy.
Finally, one strategy that I believe has real merit is to expand the definition of core assets beyond office, retail and industrial to real estate related social infrastructure such as child care, student accommodation, seniors housing and medical/health to name a few. The yields are typically higher, the leases longer, the demographics are on your side and they often have government backed cashflows. And the competition for assets is less intense. Well at least for now!
Greg Paramor is managing director of <a href="https://www.folkestone.com.au/" target="_blank">Folkestone</a>.
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What should investors be looking for in the coming year?

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Australand Property Group revealed this morning that it had received a takeover proposal from Stockland Group, but that it was dismissed by the board as an "incomplete" bid.
Last month, the diversified property group snapped up a 19.9% stake in Australand, in <a href="/expert-insights/investing/stockland-swoops-on-australand-stake-in-possible-takeover-precursor">what was seen as a prelude to a full takeover bid</a>.
In a strongly worded statement, Australand said it had received an "unsolicited, indicative, non-binding and incomplete proposal" from Stockland to acquire the remaining shares it did not own.
The offer was an all-scrip offer of 1.111 Stockland securities for each Australand security. Based on Stockland’s closing price of $3.78 on 22 April 2014, Australand said it implied an offer price of $4.20 per Australand stapled security.
Australand said the board reviewed the proposal, in conjunction with its advisers, Fort Street Advisers, Macquarie Capital (Australia) Limited and King &amp; Wood Mallesons, but rejected it on the grounds that it "did not consider that the terms and conditions of the proposal are compelling, nor does it provide sufficient consideration to Australand security holders in the context of a change of control."
As part of its review process, the board took into account the outlook for the group, and noted that the offer also represented "a 1.9% discount to the Australand closing price of $4.28 on 22 April".
But Stockland defended its offer, saying it believed the current Australand trading price already reflected a "significant takeover premium to the price at which Australand would trade, absent Stockland's interest".
Stockland also said it believed there was "compelling strategic merit" in a combination of the two groups, with benefits for all stakeholders".
Stockland chief executive Mark Steinert warned Australand "if investor price expectations are too high, we will sell and realise a profit on out 19.9% holding."
"In this regard, we believe the 18% offer premium to ALZ's stated NTA is highly compelling.
"Given the terms outlined in the Proposal, the Board has determined not to provide Stockland with access to due diligence material and remains focussed on maximising security holder value," the company said. 
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Australand dismiss Stockland's takeover attempt as "incomplete"

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Australian bulky goods property transactions are set to reach a decade high, with sales in the last two calendar years totalling nearly $1.6 billion.
Savills research showed that more than $800 million in assets changed hands last year from 23 properties and a further 27 sales were recorded in 2012, totalling $790 million. Both figures were well above the ten year annual average of $546 million for an average 24 properties sold.
"Investors are looking at up to 10 per cent for large bulky goods centres with short and medium term lease expiries, but they are also looking at smaller, well located, properties that may deliver well below that, perhaps around 7.5%", said Savills Australia’s national head of research, Tony Crabb.
"So in short there is interest across the board at the moment for bulky goods properties and the reason for that is that, generally speaking, investors are getting very good value for their money ."
A key driver for the bulky goods sector is considered to be dwelling commencements.
New dwelling commencements have been trending up over the last two years - coming in at 165,000 in 2013.
"It's not inconceivable to expect a peak of 170,000 to 180,000 during 2014 ", said Crabb.
"The RBA has put average dwelling commencements at 155,550 a year over the last 20 years and so we are looking at a very positive trend that will undoubtedly flow through to the bulky goods sector as householders begin to furnish those dwellings."
A keen buyer of bulky goods property has been BB Retail Capital (BBRC), headed by Bras N Things founder and Melbourne retail king Brett Blundy. Mr Blundy is said to own 12 bulky goods centres nationally.
Savills Victorian industrial executive of bulky goods, Keith Kooloos, said "let’s make no mistake-Brett Blundy likes 10 % yields, and who wouldn’t want that sort of cash flow and capital growth, but it’s also his ability to add value that sets him apart."
Mr Kooloos said he expected investors to continue to be attracted to bulky goods purchases based on current market fundamentals especially in key growth corridors where an established population would see significant new residential growth.
"It’s areas such as Melbourne’s south-east, northern and western growth corridors that can immediately sustain a bulky goods centre while the area undergoes substantial population growth, that we are going to see the most interest," he added. 
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Bulky goods transactions set to reach decade high

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Just three days after the close of an expression of interest campaign, a Malaysian investor has swooped in on a whole top floor stratum titled office in Melbourne's South Yarra.
At $4.28 million, the sale is seen as one of the most significant Melbourne strata office transactions in recent years, equating a rate of $7,781 per square metre.
More than 60 enquiries were received through a marketing campaign steered by CBRE's Ed Wright, Tom Tuxworth and Mark Wizel.
The property has a total building area of 645 square metres, of which 366 square metres is available for immediate occupation. The balance - 279 square metres- is leased to the Bridge Consulting Group, generating a net income of $156,000 per annum.
The property at 9 Yarra st, South Yarra was sold with "value-add potential" with plans and permits to add an additional 16th level incorporating 591 square metres of building area.
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Malaysian investor buys South Yarra strata office for $4.28 million

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National Storage REIT has entered into contract arrangements to buy a landmark self-storage asset at Townsville, Queensland's north-east for $17 million.
The company said the deal represented its first stand-alone acquisition and would be the largest asset by net lettable area in the portfolio. 
It comprises 1,467 storage units over 16,500 square metres of net lettable area. The purchase was made on an initial passing income yield of about 7%, said the company  based on the current occupancy of around 50% and excluding transaction costs. 
The acquisition will be funded from National Storage REIT's (NSR) debt facility. 
The 399 Woolcock Street centre was built in 2005 and features two, two-level buildings. 
NSR managing director Andrew Catsoulis said: “This acquisition presents a significant opportunity for National Storage to add value and capitalise on the synergies of our centre management platform, particularly around organic growth. We are of the view this provides a good opportunity for future growth in terms of occupancy and rates per square metre." 
Management said it continued to actively pursue acquisition opportunities in line with its asset management strategy.
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National Storage REIT buys Townsville self-storage property for $17 million

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National transport and logistics firm Northline has today announced plans for a $21 million transport and logistics facility at Redbank in Brisbane’s South.
The new 25,000 square metre Brisbane distribution facility will replace the current Northline facility at Pinkenba and will be located within the Goodman Group’s $350 million Redbank Motorway Estate.
The Monash Road facility will provide more than 12,500 square metres of warehousing and undercover freight operations space and will be home to the company’s Queensland state office.
Northline chief executive Craige Whitton said the new Brisbane facility represents the second multi-million dollar investment by the company in just over a year in enhancing its national distribution network. It undertook a $24 million investment in a new custom built Sydney facility at Smithfield which became fully operational in January.
“The improved efficiencies of the site will broaden access to our supply chain partners and reduce turnaround times of freight coming into and departing the facility", he added.
The facility is due to open mid-September 2014.
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Northline announces plans for Redbank, Brisbane facility

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A local buyer has picked up a fully leased building at Noosaville on the Sunshine Coast  for $590,000.
The sale of the 29 Rene Street property reflected a yield of 9.9%.
Tracey Ryan and Paul Forrest of Ray White Commercial Noosa negotiated the sale on behalf of the overseas-based owner.
The property, which sits on a site area of 1,012 square metres in the heart of Noosaville, had been listed for sale for some time but Mr Ryan said the owner was in no hurry to sell because of the rental returns.
For the buyer, the purchase ends a two year search for an investment property in the area. 
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Fully leased Noosaville building snapped up by local investor

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A Port Melbourne retail property has fetched just under $1.2 million at auction. The property sold on a 5% yield and reflected a building rate per square metre of about $18,000 per square metres.
It is leased to hairdresser Strands by the Bay on a new 3+3+3+3 year lease, returning $60,000 per annum plus outgoings and GST.
Selling agent Andrew Hewett noted that there was strong demand from local and national buyers along Bay Street, Port Melbourne.
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