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 increasing expenditure associated with Australia’s ageing population will necessitate reforms to the country’s taxation system, according to the latest Economics Group Research Note from the Housing Industry Association of Australia (HIA).
With the number of Australians aged 85 and over projected to grow from 455,000 to 1 million in the next 25 years, the country’s working population is expected to decline in relation to the number of senior financial dependents. The country's shifting age demographics are likely to intensify public expenditure pressures, with HIA claiming that the residential construction sector will play a direct role in Australia’s response to the ageing population.
Currently, the Public Budget Office estimates that the structural budget balance will remain in deficit in 2016/17. As such, in its report HIA advocates a series of structural taxation reforms extending to the housing construction sector to help manage Australia’s shrinking taxation base.
The report states that new housing is Australia’s “most heavily and inefficiently taxed sector”, contributing about $40 billion 11% of total taxation revenue per year across all levels of government.
“Taxes on new housing are not only excessive, but are disproportionate relative to the rate of taxation on other sectors of the economy – the average tax burden on the residential building sector is estimated at around 31% of the value of output, which compares to an economy-wide average of 24.4%,” writes HIA in the report, titled Housing: Paving the Road to Recovery?
Citing the 2010 Ken Henry Tax Review, HIA also criticises stamp duties as inefficient and providing a disincentive for older Australians to move to more appropriate dwellings. In the final recommendations of Australia’s Future Tax System, Henry advises that “ideally, there would be no role for any stamp duties, including conveyancing stamp duties, in a modern Australian tax system”. Instead, the review recommends a broad land tax.
HIA’s report also raises the issue of providing adequate housing stock to meet growing demand. Pointing to legislative barriers to housing supply, the industry body claims there is a shortage of housing stock and inflating home ownership and rental prices.
Although housing supply is largely regulated by state and local governments, HIA claims that the federal government can take action to increase new housing stock, such as tying funding to public and social housing delivery benchmarks.
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jrichardson-uRX5hFdKfN

Housing taxation reform required to deal with ageing population: HIA

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The receivership sale of Heritage Golf and Country Club in the Yarra Valley’s Chirnside Park, north-east of Melbourne, has secured $17.8 million, just over half its over-inflated $30 million book value.
The two golf course, 230 hectare property has been bought by HGC Properties, a company directed by Melbourne accountant Sam Cimino, with its only shareholder being, Fly Group Limited, an entity without any directorial paperwork which is understood to have origins in China.
Scott Callow and Mark Wizel of CBRE Hotels negotiated the sale on behalf of the receivers PKF Lawler in conjunction with Michael Hede of Knight Frank. 
"We are certainly in a different cycle of commercial property when golf courses are quickly selling," Mark Wizel told Property Observer.
"Banks have an increased preparedness to lend on non-core assets.
"There is Chinese buying appetite for leisure property, not just the residential projects that have been the dominant desire to date," Mark Wizel said.
The Jack Nicklaus-designed St John golf course ranks among the best golf courses in Australia. The property is located on the Yarra River near Chirnside Park and has two 18 hole golf courses (the St John Course, south side designed by Jack Nicklaus in 1996) along with the Henley Course, on its north side designed by Tony Cashmore in 2002.
The property included townhouse development land and residential lots (STCA). 
Heritage Golf &amp; Country Club has a strong established membership base with 1,394 members. It hosted the Victorian PGA Tournament in February this year. 
There were about 47,500 golf rounds by played annually.
<a href="https://cbre.realcommercial.com.au/property-land+development-vic-chirnside+park-501095227" target="_blank">Heritage Golf and Country Club</a> was under the control of the Melbourne businessman and property developer Guo Zhao “Sunny” Sun.
Mr Sun acquired the golf estate around 2011 at just short of $15 million. But he subsequently became embroiled in a Victorian Supreme Court dispute with business partner Wang Hua, China’s 790th richest person, over control of the country club, as reported by Fairfax Media.
A court ordered followed that Heritage Golf and Country Club Pty Ltd be wound-up with the creditors owed $13.8 million, according to a News Ltd report which suggested one creditor, the Alter family, through its Austpac Funds Management, unsuccessfully proposed a deed of company arrangement.
Sun had purchased the property from receivers to the Letten Schemes, a series of property investment funds established by Mark Letten that fell apart during the global financial crisis.
Wang Hua and Mr Sun founded residential development company Kingsland Group, which has built small-scale townhouse and apartment developments in Melbourne since around 2003.
Wang Hua, from the Jeshing Group, was <a href="/news/offshore-buyer-secures-16-st-georges-road-toorak-from-peter-devitt-in-circa-20-million-sale">the mystery buyer who spent $18.58 million last year</a> on the Toorak estate of the director of construction company L.U. Simon Peter Devitt through Kay &amp; Burton agent Ross Savas (pictured below), in the name of his wife, Xiao "Kylie" Yan Bao, who received an Australian visa in 2001. She had bought a mansion on Irving Road, Toorak for $3,399,000 in 2003.
<img src="/images/stories/flexicontent/l_toorak-sept-23-breakout.jpg" alt="Offshore buyer secures 16 St Georges Road, Toorak from Peter Devitt in circa $20 million sale">
Private homes overlooking the course have been sold over the years, with Fletchers currently having a three bedroom townhouse offering on Turnberry Lane (pictured below). <a href="https://www.1turnberrylanechirnsidepark.com" target="_blank">It had $1.3 million hopes</a>, after being passed in at $1.05 million at auction last month. Its vendor is not connected to the golf course ownership.
<img src="/images/2014/04/23/chirnside%20april%2023%20one.jpg" alt="">
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jchancellor-FAypfDUnLy

Jack Nicklaus-designed St John course at Heritage Golf and Country Club, Chirnside Park sold

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Investors in all states except South Australia and the Northern Territory plan to increase their exposure to property over the June quarter, a sentiment survey has found.
High income earners, those working in professional jobs and people living in larger households were most likely to say they intended to boost their property investment portfolios over the next three months, the latest MLC Quarterly Australian Wealth Sentiment Survey revealed.
More than 2000 people responded to the national survey, which was released in mid-April.
Investors were asked about their existing financial situation and whether they were more or less likely to invest in certain asset classes over the next three months.
Investment property was the only growth asset to which respondents planned to increase their portfolio allocations, although appetite for investment property was down slightly from the previous survey for the December quarter.
All groups said they would cut their holdings of shares and diversified balanced funds over the June quarter.
 <img src="/images/2014/04/17/zoe-april-17-three.jpg" alt="">
Source: MLC Quarterly Australian Wealth Sentiment Survey Q1, 2014
The results are in line with an improvement in broader consumer sentiment towards residential property, as recorded by the NAB Residential Property Index, which rose one point to a high of 37 in the March quarter.
The outlook for house prices improved across all states except Victoria, with further increases expected in the next six, 12 and 24 months. Rental growth, however, was subdued indicating investment property yields could fall.
<img src="/images/2014/04/17/zoe-april-17-two.jpg" alt=""> 
Source: NAB Quarterly Australian Residential Property Survey: Q1 2014 
Around 30% of respondents to the MLC sentiment survey who earned more than $100,000 already had property investments. Some 10% of people in that wages bracket said they planned to invest more in property over the next three months.
Property was a more popular investment choice with younger people than with those aged over 50. Around 10% of people aged 49 and under said they were looking to buy property during the June quarter. On a net investment basis, over-50s intended to slightly reduce their property exposure.
Debt reduction was the top priority for the majority of people surveyed with around one in three saying that would be their goal for the three months to the end of June.
A large group also said they would invest more in cash and term deposits, as well as superannuation in the coming months.
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Investors intend to boost property portfolios over next three months: MLC survey

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The longest standing prerequisite for being a politician in Australia is to turn a question into a rhetorical question – cue Sydney’s political self-preservation argument for a second airport.
This particular debate goes way back to the 1970s where nearly five decades after the initial announcement reality has now come to the fore. The only reason for this five decade delay was the concern of politicians losing office should they back such a controversial recommendation.
The Sydney to Melbourne route in 2011 was declared as the fifth busiest in the world. Sydney airport is by far the busiest in Australia with approximately 36 million passenger movements and 320,000 aircraft movements annually. By 2035, projections have passenger movements at 80 million and aircraft movements at nearly 430,000.
For too long Sydney has fictitiously survived under the falsehood that everything happens within just a 15 kilometre radius of the Sydney CBD. This myth was exposed further in 2014 when the state government moved that 24 hour a day, seven day a week clearways would come into force. Sydney was suffocating and the only solution was to move west – the embarrassing part of this entire debate is why has it taken so long?
<blockquote>
For too long Sydney has fictitiously survived under the falsehood that everything happens within just a 15 kilometre radius of the Sydney CBD.
</blockquote>
Look no further than the fact that Sydney does not have a plan to cope with the fastest growing population in Australia – which has resulted in residents moving elsewhere for a better lifestyle.
Kudos to Parramatta which has fast-tracked itself as Australia’s boomtown over the next five years with a record $8 billion designated with 33 major projects on the drawing board – when completed this will make it Australia’s fifth biggest CBD. An extra 838,000 square metres of commercial space and more than 3,700 apartments and townhouses have been approved.
This week’s announcement for a second Sydney airport at Badgerys Creek will add the largest construction growth spurt that NSW has ever seen – not surprisingly this will have a flow on effect to north and south coastal areas which will be watching the Sydney expansion with enormous interest – cue Newcastle and Wollongong.
Three graphs that will be of great interest not only to NSW but for every capital city in Australia will be:
<img class="aligncenter size-full wp-image-8505" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-17-08-AM.jpg" alt="17-04-2014 11-17-08 AM" width="599" height="401">
<img class="aligncenter size-full wp-image-8506" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-12-09-AM.jpg" alt="17-04-2014 11-12-09 AM" width="518" height="465">
<img class="aligncenter size-full wp-image-8507" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-15-26-AM.jpg" alt="17-04-2014 11-15-26 AM" width="525" height="453">
NSW has been stymied by a lack of direction which has been highlighted by elected politicians preferring their own vote protection over making crucial decisions that will guarantee growth, jobs and prosperity for NSW. Comparing the Olympic Games in Sydney in 2000 to the second airport announcement is like comparing a skateboard to a train. It is interesting to note that over the last 40 years Melbourne has increased its population by two thirds while Sydney has managed just a little over half.
So what will these announcements do to property prices? Well that’s pretty easy to answer as property prices are determined by supply v demand. For too long properties within a 15 kilometre radius of the Sydney CBD have attracted all the interest – this will now change significantly with the move by businesses in a westerly direction given that is where the workforces are (or will be). <a href="/news">Parramatta</a> and surrounding areas will flourish given that such infrastructure spending is unprecedented in an area outside the Sydney CBD region. Another bonus is that this construction boom will (in time) significantly bring down rents.
Australia is right in the middle of a housing affordability crisis which also has been conveniently ignored by politicians given this too is placed in the too hard basket. So it was interesting to note this week that New Zealand’s Housing Minister (yes, they have one and Australia does not) Nick Smith announced that he set an ambitious target to reduce housing affordability in NZ back to the long-run average of four times. Australia and NZ both share a median market of around 5.5%. Although this grand scheme lacks detail at least it has been tabled which is not the case in Australia given it’s not spoken about, and we don’t even have a designated minister.
Premier Barry O’Farrell fell on his sword last week and there is no denying he had to go. Brace yourself for plenty more revelations from ICAC and the Royal Commission into unions where I predict a record number of by-elections across Australia.
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robertsimeon-hRNTwJyXkQ

The announcement that finally had Sydney smiling

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Most first-time investors – and indeed established portfolio owners alike – will have apartments and units as part of their core investment property acquisition strategy.
From a public/tenant liability perspective, apartments are often thought of as a safer property type in this regard, in comparison to detached houses. However, this is not to say apartments and units aren’t without their own risks.
Here’s a short list of safety risks you need to know about, as a landlord, that might come back to hurt you, if left unchecked.
<ol>
<li>
Curtains and vertical blinds  Recent compliance changes in several states pertaining to curtain/blinds are very important. For most curtains and blinds; a rope-style pulley system is the commonplace curtain raising/lowering/opening mechanism. However, many older-style pulleys (say blinds older than four or five years), are a child safety hazard, and children can be at risk of choking if caught in the connected pulley strings. This risk is an easy and cheap fix; just Google ways to replace or cut and repair the pulley strings to make sure they are compliant. 
</li>
<li>
Safely opening windows  On to windows as opposed to blinds now, and the requirements per-state/territory change, so be sure to research the compliance rules specific to the state your property is in. In some states, the rules on the gap a window is able to open (for units where the windows are above a certain height from the ground – so, some ground floor units may be exempt) is undergoing change currently.  The safest thing to do is ensure your apartment’s windows are fully compliant with your state’s rules. This is again a child safety issue, and rules were introduced to prevent children falling out of high windows. For instance, in some states there are rules that require windows to open to no more than just 12 centremetres width. 
</li>
<li>
Fire alarms need to be tested regularly  This sounds like one of the most obvious unit and apartment safety issues, but I am constantly surprised by the number of investors I speak to who do not regularly check the working function of Smoke and fire alarms in their properties. The simplest way to regulate this is to ensure your managing property agent checks them for you (and signs off on the inspection report, having indicated they are in working order). However, this isn’t already an iron-clad guarantee that the devices are functional or have even been checked. From a legal standpoint, should any fires break out, the managing agent may not be held accountable to this either. Smoke alarms vary in price, from as low as a $9 K-Mart job, all the way to premium products that include regular servicing options to ensure compliance and safety is checked and maintained. These are the safest and most legally-liable solutions, though the cost is much higher for this piece of mind. 
</li>
<li>
Balcony balustrade heights  Balcony balustrade height requirements vary from state to state, however it is something to check in on for both newer and older apartments alike. If a balcony balustrade on a property you are considering purchasing as an investment appears to be quite low, it is work querying this with the selling agent. Also, investigate compliance issues that may result from a child (or adult!) balcony fall or accident as a result of a low-built balustrade. Again, ground floor apartments and units are often exempt from this requirement. 
</li>
<li>
Internal and external stairwell balustrade heights  Similarly to item number four above; be conscious of balustrades on stairwells both inside the unit and outside too. The exceptions of course are any ‘common property’ stairwells. Any accidents or deaths pertaining to incidents on these common-property stairwells are handled by the strata plan liability insurances, and not individual unit or apartment owners.  I was actually caught out on this in my most recent property purchase. The property featured a modern ‘floating’ internal stairwell that simply had a raised, open-air hand rail, with no connection to the steps below it. This meant that a child or infant could potentially make it half way up the stairwell, then fall off the steps over the side balustrade, and injure themselves. 
</li>
<li>
Get a building and pest inspections report and read it carefully The above stairwell discovery was only found when I had the building and pest inspection report completed, prior to cooling off period ending. I’d identified the issue and investigated a plan to resolve it, prior to the cooling off period ending, and I make the same recommendation to would-be investors out there reading this, to do just the same. A building and pest inspection is so valuable for this reason. Sure, it is a few hundred dollars extra expenditure on the property, however it can save thousands later on. Most investors and property buyers assume this report just reveals any structural faults and rodent/insect problems, however the real value lies in the ability to foresee liability issues early on, before you complete your cooling off (aka ‘back out of the deal!’) period.
</li>
</ol>
You can visit Cameron's blog at <a href="https://www.propertycorrespondent.com.au/" target="_blank" rel="nofollow">Property Correspondent.</a>
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cmcevoy-Go82SmsJA9

Six apartment safety risks every investor must know about

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With Sydney and Melbourne’s rising dwelling prices across much of last year, Australia’s property commentators are again looking at the possibility that our price growth is due to a bubble.
The economic phase is largely characterised by prices that have inflated beyond fundamental property values.
Those who have diagnosed a bubble in our housing market are either realists or fear mongers, depending on who you ask. Property Observer took the issue to a panel of economists and industry analysts, asking:
<ul>
<li>What are the warning signs of a growing bubble in the housing market? 
</li>
<li>Is Australia experiencing a property bubble?</li>
</ul>
Arek Drozda – Independent property market analyst
Firstly, let’s define a bubble in more precise terms since there are many different approaches to describe this phenomenon.  I prefer the simple definition that a bubble is “trade in high volumes at prices that are considerably at variance with intrinsic values”.
By this measure, the Australian residential property market is far from bubble territory. In particular:
<ol>
<li>The last time we experienced really high volumes of residential property transactions was in late 2006 and 2007. Despite reports of the biggest ever number of weekend auctions, the total volume of property transactions in 2014 is still subdued in comparison. </li>
<li>This period (up to March 2008) also coincided with high prices and, most importantly, purchase affordability was at its lowest since early 1990’s.</li>
</ol>
The reason for low affordability was that the cost of buying (comprising of mortgage payments, council and water rates as well as other expenses associated with owning a property) ballooned to proportions far exceeding the pace of rises in personal incomes, making property prices at that time “considerably at variance with intrinsic values”. Simply, housing market was in a bubble then.
<blockquote>
"Australia's residential property market is far from bubble territory" - Arek Drozda
</blockquote>
Despite the recent gains in property prices, purchase affordability in 2014 remains at historically high level (not far from 2009 level when Australia and the world were in the depths of the global financial crisis). 
Therefore, there should not be any concern about the bubble until the volume of property transactions reaches 2007 levels and until there is a significant drop in affordability. Prices and interest rates still have a lot of room to move before this will happen.
<img src="/images/2014/04/22/shane-oliver-profile.jpg" alt="" style="float: right;">
Shane Oliver – Head of investment strategy and chief economist, AMP Capital 
The characteristics of a bubble in the housing market are a combination of overvaluation in terms of the prices relative to fundamentals, excessive credit growth, with signs that investors are piling in using borrowed money and finally self-perpetuated exuberance, where past price gains are feeding current price growth.
We saw that in the major capital cities in Australia going into 2000, 2003 and 2004. We had many years of strong price gain. Housing related credit growth was above 20%, and property spruikers like Henry Kay were out in force. The market had become well and truly overvalued.
Some of those indicators are in place now. Housing prices are overvalued in comparison to wages and rental income, both in comparison to Australia’s history and on an international basis.
But we’re not seeing the debt driven frenzy that we saw ten years ago. Credit growth is in single digits, and we’re not seeing the degree of exuberance we saw a decade ago. Cooking shows still out-rate the home development shows.
In Australia, two cities are in double digits but the other capital cities are seeing growth under 5%.
Sydney was perhaps the most bubbly of all the property markets a decade ago, and it’s the one that had the weakest experience in the last decade, starting with the western suburbs in 2004 and 2005. So there’s a degree of catch up going on in Sydney, which partly reflects a return to confidence.
Average capital city growth is above 10%, but that growth is dominated by Sydney, which is up around 15% or 16%.
There are several things investors need to be worried about with Sydney. Firstly, there are probably better opportunities in the states than in Sydney right now.
Secondly, we have seen a strong recovery triggered by a reduction in interest rates, and they’re likely to be raised again, probably later this year.
<blockquote>
"We’re not seeing the debt driven frenzy that we saw 10 years ago" - Shane Oliver
</blockquote>
Thirdly, rental yields are quite low, so investors getting into property need to accept that they are a lot more dependent on capital growth to get double digit returns, if that’s what they’re expecting.
The term ‘bubble’ conjures up images of some sort of crash, a la some parts of the US, Europe and Japan in recent times, particularly around the GFC. But I don’t think we’re at that point yet. Rates will go up, and capital growth will soften but prices probably won’t crash. The important thing is for investors to have realistic capital growth expectations.
<img src="/images/2014/04/22/soos-profile.jpg" alt="" style="float: right;">
Philip Soos – Property market economist and housing bubble researcher 
The first thing you’ve got to do is define what a bubble is. And with all property analysis it’s such a vacuous term.
I take the definition of economist Hyman Minsky. He defined an asset bubble as when the rent from an asset, or income from an investment, cannot pay down principal, interest and the running expenses. That means they’re making an income loss. The only way for an investor to make a profit is through capital gain.
That occurred in 2001 onwards when investors on aggregate became negatively geared in Australia. But it’s been worthwhile for most, because the capital gains have been enormous, especially in Melbourne.
There are three requirements of a housing bubble. Firstly, an increase in real housing prices. Secondly, an increase in the debt used to purchase houses, the mortgage debt to GDP [gross domestic product] ratio. That’s something that Steve Keen has popularised. And thirdly, net rental income losses.
<blockquote>
"Right now, we’re seeing the largest bubble on record" - Philip Soos
</blockquote>
You can also see a bubble through other indicators such as price to income, price to rent, total land values to GDP, the value of housing stock to GDP. There’s also the Kavanagh-Putland index – the total value of property sales on an annual basis relative to GDP – and the debt to cashflow ratio, which compares housing debt to income flows, or net rental income.
Right now, we’re seeing the largest bubble on record. In the post-war period we had two major bubbles. First was coming out of the war in 1974. That was a small housing bubble. It collapsed and gave us a severe recession.
In the late 80s, there was a massive commercial real estate bubble which gave us the early 90s recession. With those two bubbles, real prices and private debt moved up. The same trends are present today, but the trends are much greater now.
Housing prices began to lift off in 1996 and peaked in real terms in 2010 – we’ve never had such a sustained growth in housing prices.
If and when it the bubble bursts, it’s going to induce a pretty severe economic downturn. We’ve never had anything quite like a bubble of this size. The biggest one we’ve seen prior was in the 1880s, when there was a bubble in Melbourne and Sydney. When it burst in the 1890s, it destroyed the economy and produced a depression worse than the one seen in the 1930s.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
 
<img src="/images/2014/04/22/cashmore-proifle.jpg" alt="" style="float: right;">
Catherine Cashmore - Independent market analyst
People buy property based on expectations of future growth. 
The prices buyers are paying in some areas of Melbourne indicate a sense of exuberance – a bullish expectation that the good times will continue. 
This is not just evident in the residential sector, but the commercial sector also. Time on market has reduced, reserves are being surpassed, auction clearance rates are holding up despite the increased number of listings, lending data is still indicating we're on an upward trajectory – the list goes on.
As is the case in any cycle, the tide is quick to change if purchasers feel growth prospects will not be realised for the period of time they intend to hold the investment – and we do face significant headwinds in the local economy. 
This could be the result of a number of economic forces which usually act in combination – i.e., not one rate change alone but rather a series of projected rate hikes, job insecurity, fluctuations in the stock market, a report indicating a change to housing policy, restrictions on lending, lower wage growth, and so forth.  
<blockquote>
"Inevitably, the tide will turn" - Catherine Cashmore
</blockquote>
Buyers will move in sentiment faster than vendors.  Vendors have typically gone through a period of conditioning prior to placing their dwelling on the market. Therefore they are 'set' on achieving a price. Hence the market often stagnates at the turn of a cycle, and housing data can often miss the true drop in prices should vendors be forced to sell. 
This growth phase has a number of forces behind it.  In Sydney and Melbourne (not so much other states), wealth coming into the country from Asia (by way of migrants and off shore lending) is significant and should not be overlooked. I go into further detail <a href="/expert-insights/investing/we-need-to-direct-foreign-investment-in-real-estate-effectively-not-stop-it">here</a>. Our loan data doesn’t pick this up. 
However, money being poured into infrastructure by the current administration, and the boom in building activity, will also bear an upward influence on land prices, although not necessarily on individual unit prices, which are subject to oversupply in city areas.
Inevitably the tide will turn. However, if you're asking me for a 'crash' prediction, while I have no doubt we will experience one, we are, in my opinion, a way from it yet. 
As for why prices are as high as they are, and the impacts this has on society as those on the fringes are increasingly forced out (as I point out <a href="/expert-insights/buying/the-widening-inequality-and-economic-growth-gap-what-does-this-mean-for-housing">here</a>),  I would advise reading <a href="/expert-insights/investing/looking-at-our-housing-market-through-foreign-eyes">my latest article</a>, which addresses the matter in detail.  
Harley Dale – Chief economist, Housing Industry Association <img src="/images/2014/04/22/harley-dale-profile.jpg" alt="" style="float: right;">
Price increases for residential property are being driven by Sydney and Melbourne. There is evidence that the price recovery is broadening, but overall growth outside our two largest capitals is modest. We don’t have a classic bubble scenario in Australia where a frenzy of speculative activity is rife and widespread.
Price increases in Sydney reflect the response to what was a severely supply-constrained market for nearly a decade, although we wouldn’t want to see current rates of growth sustained for a long period. The rate of growth in Melbourne should ease.
<blockquote>
"We exaggerate price weakness when it occurs, but then lament a reversal to price growth" - Harley Dale
</blockquote>
In general our population is increasing and our economy is growing, albeit not at the trend pace we would prefer.
We will see some broadening of dwelling price growth relative to that which is currently evident.
We don’t want to see the situation get out of control, but it isn’t.
We exaggerate price weakness when it occurs, but then lament a reversal to price growth. Let’s just carefully assess how prices behave over the course of this year and stop sensationalising the issue.
<img src="/images/2014/04/22/wilson-profile.jpg" alt="" style="float: right;">
Andrew Wilson – Senior economist, Australian Property Monitors 
A bubble is certainly a nebulous concept because it is something that’s not really defined – other than the fact it ranks with other nightmare bedtime stories as a frightening concept for investors.
The reality is a lot different from the fear. The perception is that unsustainable growth leads to a collapse in housing prices.
That’s not the experience of the Australian housing market. In Australia, our market has been characterised by strong periods of growth, followed by moderate price corrections.
We’ve rarely seen any period of annualised price decline, and when we do it’s at very minor levels, with decline rarely over 5% in any year, while we see double figure growth at times.
We about the housing market in cycles, like the business market. And of course they’re very closely related in terms of their underlying drivers.
<blockquote>
"As Mr Clinton once said, 'It’s the economy, stupid'.” - Andrew Wilson
</blockquote>
If we look at the bottom of a cycle, in Australia the trough is always higher than the previous trough point. So the underlying trend is always upwards.
If the trough point is lower than the previous one, we should be concerned, because we’d be seeing a more exaggerated bubble shape.
So we actually have moderation in the correction phase - we have more of a “wave” shape rather than a bubble shape, and the thing that drives that is the underlying upward trend in our economic cycles.
We have income growth, with competition for labour putting upward pressure on income, which gives us the capacity to pay for houses, and we’ll continue to have that with a healthy economy.
That pattern will continue unless there is some catastrophic economic event. But we’ve had very strong downturns in economic activity before and we didn’t see that any bubbles burst.  
We have a rigid financial environment, which reflects risk aversion from banks. We don’t have a market for lending like the U.S. had, with a lot of speculative lending, which can give us that bubble shape.
As long as our economy continues to grow and as long as we have a rigid and risk adverse financial system, we won’t see a housing bubble.
We also have an underlying shortage of property in most centres. Those that have the biggest property shortages tend to have the more modest corrections, and don’t have the same peaks and troughs of those markets that have a more abundant supply line.
As Mr Clinton once said, “It’s the economy, stupid”.
And as long as the economy continues to be a strong performer in terms of economic growth, we’ll avoid any steep declines in housing prices.
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Exclusive: How can we spot a housing bubble?

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Longitude 131°, overlooking Uluru, is at Australia’s spiritual heart.
The Philip Cox -designed <a href="https://longitude131.com.au" target="_blank">Longitude 131° luxury wilderness camp at Uluru</a> has won acclaim for its eco-friendly intention, with tent-like suites dotted across the red dirt in the Northern Territory.
Its ownership sits within the indigenous-owned Ayers Rock Resort, that comprises five hotels bought by the Indigenous Land Corp from the listed GPT Group in late 2010 for $300 million.
It wasn't a straight sale but rather by instalments:
<ul>
<li>$81 million payment on settlement; 
</li>
<li>$81 million 12 months after settlement; and 
</li>
<li>$138 million five years after settlement.</li>
</ul>
The additional terms of the sale included GPT contributing $25 million towards capital expenditure to assist in the achievement of a higher value in which GPT may share. GPT will share in 46% of the increase in capital value of Ayers Rock Resort over $300 million.
GPT had opened it in 2002, with 12 of the 15 tents at the $9.4 million safari-style camp, then lost in a bushfire just 15 months after its launch.
Longitude 131°, on the edge of the Uluru-Kata Tjuta National Park (UKTNP), 10 kilometres from Uluru, had just been named by US magazine The Robb Report as among the world's top 10 new hotels.
It is now on a long-term management lease deal with Baillie Lodges, owned by entrepreneur Dick Smith’s daughter Hayley and her husband, James Baillie.
Prices have been at $2,200 per couple for a two-night food, drinks and accommodation package
Last year the Indigenous Land Corp’s tourism management arm managing director, Voyages' Koos Klein, the former Hilton executive, told the AFR that the Baillies "can do it better than we can do it. This gives us the opportunity to concentrate on our main resort where we employ 700 to 800 people, and where our focus is on indigenous employment and training."
After a downturn in tourism into the Northern Territory, the value of the resort was cut by $62 million last year, prompting the head of the Indigenous Land Corporation Dawn Casey to question the purchase of the Ayers Rock Resort telling Fairfax Media it was ''perhaps the largest single evaporation of public money in the indigenous policy domain, ever''.
Statistics from Parks Australia show visitors to Uluru declined by about nine per cent in 2011 to about 273,000 people. 
<div title="Page 1">
<div>
<div>
The majority of visitors to UKTNP surveyed were domestic visitors, while 31% of visitors were from overseas. 
<div title="Page 4">
<div>
<div>
International visitors were predominately from Germany; USA; other European markets including the United Kingdom, Netherlands and Switzerland; and New Zealand. 
</div>
</div>
</div>
</div>
</div>
</div>
Before the Windsors visit, Longitude has hosted celebrities, including Oprah Winfrey. 
<div title="Page 1">
<div>Tourism to Ayers Rock began as an informal activity around the mid 1950s , when a series of unofficial camps evolved at the base, followed by a rough airstrip and eventually some low quality hotels and hostels. By the early 1970's visitor numbers were estimated to be close to 50,000 a year.</div>
<div> </div>
<div>Visitor numbers hits over 75,000 per annum around the early 1980s when construction of Ayers Rock Resort commenced under the direction of the Conservation Commission of the Northern Territory.</div>
<div>
The existing hotels were compulsorily acquired by the Commonwealth Government, replaced on the new site by the new hotel.
The estimated costs of development were $600 million.
By 1984, visitor numbers had reached in excess of 130,000 a year.
Despite being operated by Sheraton and Four Seasons, the properties traded poorly.
In late 1997, General Property Trust purchased Ayers Rock Resort for $220 million. 
</div>
</div>
The Baillie Lodges collection of luxury lodges in wilderness destinations includes Capella Lodge on Lord Howe Island which launched the portfolio.
SA's Southern Ocean Lodge is also in the Baillie stable.
Last month James and Hayley Baillie abandoned plans to <a href="/expert-insights/investing/baillie-lodges-reveal-ribbed-modernist-addition-to-proposed-boutique-hotel-in-victorian-era-the-rocks-in-sydney">develop a $1400-a-night hotel in The Rocks in Sydney</a>, citing a threefold increase in construction costs.
Construction costs had an initial quote of $8 million but we tipped to blow out to up $23 million, making it impossible to make the nine-suite hotel stack up financially.
“The hard, sad reality is we have become such an expensive country, where the cost of construction has gone through the roof, especially at the quality end of the market,” he told The Australian.
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Longitude 131° at Uluru - glamping boost to follow Prince William and Kate visit

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Mike Baird's election as Premier of New South Wales has the Urban Taskforce suggesting that this may be a boost for the state’s economy, but that it may also have a significant effect on planning.
CEO of Urban Taskforce, Chris Johnson, said that as Treasurer, Baird did well with the state’s economy and this is a good platform to build from.
“The NSW government had become too bogged down in reviews and committees,” said Johnson.
He said that Baird needs to demonstrate leadership and a “can do” approach.
“Barry O’Farrell gave sound leadership to NSW over the last three years but his term was marked by a cautious approach with many potential reforms being slowed down.”
He also pointed to Gladys Berejiklian’s election as Deputy Leader as a potential positive, pointing to a required focus.
“Clearly issues like the sale of the poles and wires can now be rethought and hopefully a new look at the unresolved planning reforms can occur,” he said.
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jduke-EHk3XBmHkn

Will Baird and Berejiklian do good things for NSW planning?

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Seven years ago a real estate professional in Tasmania sent me a bottle of whiskey because he liked what I wrote about his area.
I don’t particularly like whiskey and I don’t want gifts for writing positive things about a location, because it carries a whiff of corruption. But it was an expensive brand of liquor and I do remember receiving it, the name of the person who sent it, who he worked for and the fact that I sent him a thank-you note – although it was seven years ago.
I’m certain that if someone sent me a $3,000 bottle of wine and I sent that someone a hand-written thank you note, I would remember it.
So I’m incredulous that some sections of the media are painting NSW Premier Barry O’Farrell as a noble statesman who sacrificed himself at the altar of ethics in politics after a memory lapse. Give me a break; he is merely the latest politician to be mired in the cesspool that is the Australian Water Holdings, which is shaping up as Australia’s Watergate. More big names will fall before this one has played out.
Favours to businesses and property developers, in return for gifts or party donations, are all too common in Australian politics. It’s the single most likely explanation for the unnatural enthusiasm of the Victoria state government for approving more and more apartment towers in a vastly oversupplied market, often over the top of local councillors who said ‘no’ to the project.
If you want to understand how the politics of property development work in Melbourne, read the novels of Peter Temple, which have been turned into a series of television movies starring Guy Pearce and currently running on ABC TV.
But back to New South Wales, which now has a new Premier. Whatever the reality of the Barry O’Farrell situation, there’s no doubt that the state economy and the Sydney property market have benefited from his governance.
For almost 10 years, most of it under an ALP government that gets my vote as the worst in my lifetime, the Sydney market went nowhere and was the chronic under-achiever of capital city Australia. Then last year it sparked to life and showed the first meaningful growth since 2003.
<blockquote>
Suburbs will rise not so much because they’re near the airport, but because they have rail or motorway links that previously did not exist.
</blockquote>
The single biggest difference is that money is being spent on infrastructure. As I have often remarked, infrastructure spending is the number one game-changer in residential real estate.
Until recently Adelaide, a city a quarter the size of Sydney, had more new infrastructure happening than did the nation’s biggest city. But now Sydney is receiving belated impetus from long-overdue spending on infrastructure, included rail links, motorway upgrades and hospital expansions.
Many investors are asking whether they’ve missed the boat in Sydney. The short answer is that they should have been buying in 2012, when prices were down and competition was scarce. The 2013 upturn was highly predictable – and now many areas have had double-digit annual growth. I would be focusing on regional areas of NSW with strong growth prospects and a much higher degree of affordability, including <a href="/news">Wollongong</a> and <a href="/news">Dubbo</a>.
The longer answer is that there is still more growth to come to Sydney and the key to finding it is to follow the infrastructure trail.
There will a considerable boost to locations out towards <a href="/news">Rouse Hill</a> as completion of the North West Rail Link draws closer. Plans to build the missing link motorway in the north of Sydney will impact suburbs in that area. And now a whole new series of impacts have been introduced with the possibility that the Badgerys Creek Airport may actually happen.
Don’t be in too much of a rush to exploit the airport plan, because the best clues about where to buy are yet to be revealed. The most influential aspect about that facility will be the transport infrastructure to be built around it – the road and rail links feeding into it.
Suburbs will rise not so much because they’re near the airport, but because they have rail or motorway links that previously did not exist.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
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Follow the infrastructure trail to find future growth suburbs

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After 20 years of ownership, The Block Arcade in Melbourne has been sold for an undisclosed amount.
The sale, negotiated by Colliers International and Allard Shelton, is expected to have achieved around $100 million, with an expressions of interest campaign operating until 3 April.
Both local and offshore investor interest was strong for the property, which had been held by the Kearney family. It’s being sold to Melbourne family the Cohens, who are said to have a long backstory with the Block Arcade and the surrounding retail precinct. The family owns adjoining property.
<img src="/images/2014/04/22/melbourne-april-22-three.jpg" alt="">
The sellers, including property investor and barrister, John Kearny, and wife Alison, are both members of the National Trust and restored the Block Arcade after their 1993 purchase.
The arcade itself was built in 1892, and includes retail and upper level commercial spaces.
Retail tenants include Telstra, Hopetoun Tea Rooms, Haighs Chocolates, Crabtree &amp; Evelyn and Wittner.
The sale achieved 200 enquiries and 10 formal expressions of interest that spanned to Shangain and Moscow, according to Colliers International managing director of capital marks and investment services, John Marasco.
“The Block Arcade is a blue chip Melbourne CBD investment.  It also offers a number of exciting value-add opportunities including repositioning the asset to attract luxury retail brands to the precinct,” said Marasco.
Luxury brand retail tenants may be the next target of the Cohens.
<img src="/images/2014/04/22/melbourne-april-22-two.jpg" alt="">
Property manager of the arcade for the Keameys, Allard Shelton’s director Patrick Barnes, said that Collins Street is clearly where luxury retail brands want to position themselves.
“The Block Arcade is well positioned to capitalise on demand from luxury retailers trying to secure tenancies along Collins Street,” he said.
During 2013, the building attracted more than 3.5 million visitors.
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