<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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

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

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

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

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

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

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

<html><body>
The Australian Bureau of Statistics has recently released demographic data at a capital city level to June 2013. 
We have <a href="/expert-insights/investing/abs-stats-reveal-population-growth-is-escalating-in-nsw-and-victoria">previously covered the population data</a> however, when the data is paired with dwelling approvals data over the same period there are some very interesting findings.
Over the 12 months to June 2013, the population of the combined capital cities increased by a total of 313,387 persons.  At the same time, there were 114,825 capital city dwelling approvals over the period.  Based purely on the ratio of population growth to dwelling approvals, there was one dwelling approved for construction for every 2.73 residents added to the capital cities.
At a national level, the 2011 Census reported that average people per household at that time was 2.6 persons.  Based on that figure you can see that population growth has exceeded dwelling approvals over the past year.  Of course measuring demand for housing is not quite so simple.  Although it is a bit old now, the former Deputy Governor of the Reserve Bank (RBA) gave a speech entitled ‘Housing and the Economy’ to the National Housing Conference in November 2009, which is available <a href="https://www.rba.gov.au/publications/bulletin/2009/dec/pdf/bu-1209-5.pdf" target="_blank">here</a>.  In the speech he posed the question, ‘Are we building enough dwellings?’  Two of the most interesting revelations from the speech were:
<ol>
<li>A higher proportion of the new dwellings built are simply replacing existing homes that have been demolished.  The RBA estimated that between 2001 and 2006, around 15% of new dwellings built replaced those that had been demolished; 10-15 years earlier that figure was less than 10%. 
</li>
<li>A significant proportion of dwelling investment appears to have gone into holiday homes or second homes.  Census data (2006 Census) shows that the number of dwellings built has exceeded the increase in the number of households by a large margin.  As a result, the ratio of the number of dwellings to the number of households has been rising over time; as at 2006, there were 8% more dwellings in Australia than there were households.  Presumably, most of this surplus reflects holiday houses and second houses.</li>
</ol>
So at a national level, the former Deputy Governor’s speech suggested that in order to cater to dwelling replacements and secondary homes we need to construct 23% more dwellings than the previous simplistic analysis of measuring the rate of population growth compared to approvals.  Also keep in mind here that we are looking at approvals, they won’t necessarily all go on to become commencements and ultimately completions.
An assumption we could make here is that, holiday and second homes are generally more likely to be situated outside rather than inside a capital city.  As a result, the second revelation detailed above is probably not going to have as much of an impact at a capital city level.  Nevertheless we still have to allow for the 15% of homes which have been demolished when looking at the approvals data.
<blockquote>
Maybe it is time to look at ways that we can incentivise developers to bring vacant land to the market quicker rather than banking land and drip-feeding it to the market.
</blockquote>
Across individual capital cities, the 2011 Census reported that on average; Sydney, Brisbane and Darwin had 2.7 persons per household, Melbourne, Perth and the Australian Capital Territory had 2.6 persons per household and Adelaide and Hobart had 2.4 persons per household. 
Returning to the original findings, over the year to June 2013, the capital city population increased by 313,387 persons and 114,825 dwellings were approved for construction.  If we adjust for average household sizes as per the 2011 Census, to match population growth there would have ideally been a slightly higher 119,135 approvals over the year.  If we then further adjust for the assumption that we should approve 15% more homes to replace demolitions, there should have been 137,005 dwellings approved for construction last year, a shortfall of 22,180 capital city approvals.
<img class="aligncenter size-full wp-image-3122" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-11.jpg" alt="Chart 1" width="500" height="181">
As the above chart shows, the supply of new dwelling approvals was generally quite sufficient through the 1990s however, throughout the 2000’s new dwelling approvals have been insufficient in relation to the level of population growth.  We are now seeing rising dwelling approvals on the back of escalating housing demand and rising home values which is encouraging however, it will have to continue for many years to make up for the insufficient supply response over the past decade or so. 
In Sydney and Melbourne, there was one home approved for every 2.72 and 2.48 new residents respectively indicating a level of supply closer to equilibrium with demand over the most recent year.  New supply remains very much insufficient in Brisbane and Perth where one new home was approved for every 3.26 new residents in Brisbane and 3.45 new residents in Perth.
The following charts track the annual population growth and the annual number of dwelling approvals across each capital city.
<img class="aligncenter size-full wp-image-3114" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Syd-chart.jpg" alt="Syd chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3115" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Mel-chart.jpg" alt="Mel chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3116" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Bne-chart.jpg" alt="Bne chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3117" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Adl-chart.jpg" alt="Adl chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3118" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Per-chart.jpg" alt="Per chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3119" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Hob-chart.jpg" alt="Hob chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3120" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Dar-chart.jpg" alt="Dar chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3121" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Can-chart.jpg" alt="Can chart" width="500" height="179">
As the above charts show, the disconnect between the level of population growth and dwelling approvals over the past decade have been greatest within our largest capital cities.  It is no coincidence that these cities are also the regions that have been recording the greatest increase in population over this period.
A further important consideration when looking at the relationship between population growth and dwelling approvals is the type of product that is being developed for the market.  While the city-wide analysis is valuable new housing typically comes in the form of new houses on the outskirts of the city or medium to high density product within the inner city areas. Over time, we are seeing a shift away from greenfield housing development in most capital cities towards infill higher density development.
<img class="aligncenter size-full wp-image-3123" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-21.jpg" alt="Chart 2" width="500" height="182">
Over the year to June 1991, 29.9% of all new dwelling approvals across the combined capital cities were for units as opposed to houses.  In June 2013, 49.7% of all dwelling approvals over the year were for units.  Over the year, there were more units than houses approved for construction in Sydney (66.1%), Melbourne (52.7%), Brisbane (50.1%), Darwin (64.5%) and Canberra (54.9%).  The unit category type includes townhouses and semi-detached homes as well as units. 
The 2011 Census reported that across the separate house category, the most prevalent number of bedrooms is three bedrooms (49.6%) and four bedrooms (32.4%).  When you combine the results for semi-detached and units the most prevalent number of bedrooms is two bedrooms (50.1%) and three bedrooms (28.6%). 
To look at it another way, 88.8% of detached houses have three bedrooms or more compared to 66.9% of units having two bedrooms or fewer.  The point here is that if you are going to deliver more units to the market, they typically have fewer bedrooms and therefore are likely to have a smaller average household size than a detached house would.  As a result, it is likely that as the delivery of units increases there actually needs to be a greater number of units constructed in order to cater for population growth than there would have been if houses were exclusively built.
It is clear for the analysis that particularly within the four largest capital cities there has been a growing deficiency of dwellings approved for construction over recent years when compared to population growth.  Over the past 12 to 18 months there has been a noticeable rise in dwelling approvals however they will have to continue to rise over coming years to make up for the deficiency over recent years.  Particularly in Sydney, Melbourne and Brisbane we are seeing a push to greater density in the inner city areas. 
So how do we fix the supply side problems? 
There are many solutions but I think in the main we need to approve new developments faster, increase developable land both in the inner city and within greenfield areas and reduce the costs of new development to the developer because these costs are ultimately passed on to consumers.  Remember that developers are commercial entities looking to make the best possible returns for shareholders. 
Maybe it is time to look at ways that we can incentivise developers to bring vacant land to the market quicker rather than banking land and drip-feeding it to the market.  Whether that be an additional tax on undeveloped land or some sort of financial incentive to bring stock to the market, I am not sure, but it is clear that particularly within the major capital cities the current conditions are not working and finding a way to increase the supply of new dwellings is imperative.
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ckusher-ujnxiKuFQs

Our capital city population is booming but housing supply failing to keep up

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GUEST OBSERVATION
The National Rental Affordability Scheme (NRAS) looks set for a major shakeup by the government, following suggestions it has been <a href="https://www.theaustralian.com.au/national-affairs/rudds-housing-gift-to-students/story-fn59niix-1226843122005" target="_blank">hijacked by universities</a> to develop subsidised studio apartments for wealthy international students, and that foreign investors, brokers and small time investors are <a href="https://www.theaustralian.com.au/higher-education/top-end-of-town-rorted-nras-scheme/story-e6frgcjx-1226855021305" target="_blank">exploiting</a> NRAS tax breaks.
It is true that about 20% of dwellings approved for NRAS subsidies are student accommodation. About 25% of these (5% of all the housing produced, or around 1000 dwellings) are apparently let to foreign students. Whether they are indeed wealthy is another question, though it’s clear some fine tuning of NRAS eligibility might be warranted.
At the same time, it could equally be argued that the increased supply of subsidised units in high rent areas around universities will create some downward pressure on rents to the benefit of all tenants in the area.
Indeed, even if some units are rented to people outside the initial target group, by far the more important concern should be the failure of the scheme to achieve anything like its supply target.
Failing to meet targets
To make a real difference for low income renters in major cities, NRAS needs to impact market rents by providing a genuine alternative at the local level. But against an initial target of 50,000 dwellings, more than six years in NRAS has stimulated construction of only about 20,000 new rental properties nationally. At this scale the supply effect of the scheme is minimal. So we are effectively left with another form of welfare housing – albeit for working households – which also means an emphasis on eligibility and targeting, and thus the worry about overseas students.
For more than 20 years governments in Australia have tried to attract private investors in ways that are sometimes creative, and sometimes crude. Examples include public-private toll roads, or the sell-off of once public assets like Qantas. Reducing public debt, increasing efficiency, improved choice for consumers and increased accountability are among the reasons given.
But there are two sides to this ledger, and recruiting market operators to deliver policy objectives carries inevitable costs. This might be in the form and distribution of services, the final cost to consumers, and the ethical behaviour of self-interested investors and providers.
Australia’s skewed housing market
NRAS was designed to induce private investors into providing affordable rental housing. The cost of housing is not just a problem for lower income households unable to afford decent and secure accommodation. Unavailability of affordable housing, especially in Sydney, Melbourne, Brisbane and Perth, has much wider social, economic and environmental consequences.
Many lower paid workers are forced to choose between spending more than half their income on rent, or commuting long distances – if they are able to access work at all – and bearing the cost in time, money and family life. When unemployment or family breakdowns happen, the next step is often homelessness, which can so easily begin a cycle of social exclusion.
When the population is growing and there is undersupply of housing, rents rise to meet the repayment commitments of mortgage holders. These in turn are driven upwards by speculation. The same process adds to insecurity for tenants as landlords turn property over to realise their capital gains.
Of course negative gearing already allows investors to reduce the cost of housing investments. By offsetting interest payments, maintenance and other costs, investors reduce their taxable income. Despite plenty of opponents, governments have retained it for fear that investors will desert the rental property sector. But as its critics point out, negative gearing directs the biggest benefits to the most expensive properties and provides an incentive to upgrade property and charge more rent.
NRAS is also a tax benefit, but it provides a fixed rebate of around A$10,000 a year for ten years. Investors can claim the rebate so long as a property is rented through an approved non-profit housing manager at 20% below the market rate. Potential tenants are means tested. In this way NRAS sought to keep investors in the affordable sector for the longer term. If they sell early in order to realise capital gains then the benefit is lost. It also means that low income tenants are less exposed to unexpected rent rises and unscrupulous landlords.
Beware xenophobia
Concerns about international and small investors exploiting NRAS tax benefits appear to be misplaced if not simply mischievous. The main purpose of NRAS is to make affordable housing at least as attractive to investors as short term capital gains. It was intended to stimulate exactly the kind of activity that its critics describe. Indeed if it was really a “cash cow for canny investors” then a lot more new housing might have been built.
Pointing to international investors and students as somehow ripping off Australian taxpayers through NRAS plays directly into xenophobic fears about Asian interest in Australian property. The question must be asked: is a locally based speculator with an interest in short term capital gains preferable to an international investor committed to providing affordable rental housing in Australia for at least ten years?
In his review Housing Minister Kevin Andrews should carefully consider whether NRAS should be allowed to fulfil its aim of creating a viable long term investment option in affordable rental housing.
Should it be expanded so that it puts downward pressure on rents in our major cities, or should it be reduced to another welfare housing program?
If the government prefers closely targeted housing then a market/private sector driven scheme is surely not the way to go, while if private investment is to power the housing system then we have to accept that the property investment market is now a global one.
Michael Darcy is director of Urban Research Centre at University of Western Sydney.
Michael Darcy receives funding from Pacific Link Housing; and the Australian Research Council. He is a former Board member of NSW Shelter and has had a research partnership with the Tenants Union of NSW. He is a member of the ALP.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. 
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jake-cSmGT7VXVf

NRAS fears are misplaced

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GUEST OBSERVATION
When I speak to someone looking to buy an off the plan property, one of my first questions is usually “investor or first-time buyer?”
Recently it was claimed that there is currently a ‘property war’ between first time home buyers and investors, each one vying for in-demand properties throughout Australia. If there is a property war, then the investors are winning. They have more experience, better credit, and in most cases, the confidence to act quickly.
Last year saw a lot of first time buyers forced out of the market due to high property prices and excessive demand. The proportion of first home buyers of all owner-occupied loans financed in January increased .5% from December. Although this is a good development for buyers and the market, this stat is still five times less than investment loans financed. But for those intimidated by the investor presence, first time buyers can easily move into top quality properties.
One of the priority issues for first time buyers is location. Most buyers are looking for something close to the city and close to work, which is where the investors begin driving competition. Smart investors will recognise these areas as the key hotspots and are also looking in these areas. But there are brand new developments in Surry Hills, Rosebery and Alexandria that pose fantastic opportunities for those looking to take a step into the market.
Most inexperienced buyers don’t realise how cost effective off the plan purchases are. Many assume that because it is a new development it is going to cost them more. But seeing as many off the plan purchases occur months ahead of moving in, they afford you the time to save a larger deposit and allow you to qualify for the First Home Owners Grant if applicable.
Off the plan purchases represent some of the best opportunities for first time buyers to not only move out of home, but to move into the market as investors. Now more than ever, buyers are taking the opportunity to buy a new apartment and rent it out to pay off their mortgage faster. With the large number of young professionals looking for homes and willing to pay higher prices for better locations, the potential for return off a purchase can be significant.  
Sam Elbanna is managing director of <a href="https://www.cpmrealty.com.au/" target="_blank">CPM Realty</a>.
 
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Not according to ‘the plan’: First home buyers missing out on off the plan opportunities

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From a first home buyer perspective, there is something very wrong with the housing market in Victoria.
In February, the most recent data available from the Australian Bureau of Statistics (ABS) showed that the total number of dwellings financed for first home buyers had sunk to a 23 year low.
In February there were 1,402 dwellings financed for first home buyers which  represented a mere 11.76% of the entire number financed. This was lower than in January when first home buyers represented 12.7% of the market and the lowest in raw terms since July 1991 when the population of Victoria was 31% less than it is today.
The reasons behind  this result are debatable. Some will say that the causes are high property prices, but this alone is not borne out by the data. When home values last peaked, in October of 2010, the proportion of first home buyers was 18.2%. In real terms, prices are not significantly different at this point which suggests that the problem is not entirely the price.
Others point to the fact that rents are not rising and suggest that intending first home buyers are preferring to rent.
Another perspective is that the change to financial assistance for first home buyers has caused many to not enter the market. At the same time as the large step down in the proportion of first home buyers occurred in the middle of last year, the $7,000 First Home Buyer Grant for established homes came to an end.  This alone cannot be the only issue as at the same time stamp duty was being progressively lowered for first home buyers.
The reasoning for this change in the market is probably a combination of all  issues mentioned and if the market  remains this way, it will represent a significant structural change in the local housing market.
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rlarocca-zWhvjay44N

First home buyers in Victoria lowest in 23 years

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According to the latest RP Data-Rismark Home Value Index Results, Melbourne dwellings sold for a median price of $515,000 for 2014’s March quarter.
Melbourne's median dwelling price has increased 11.6% increase year on year, the second biggest yearly increase after 15.6% growth in Sydney median dwelling price.
Property Observer looks at five Melbourne homes that recently sold around the median $515,000 mark.
<a href="https://www.realestate.com.au/property-apartment-vic-fitzroy+north-107254529" target="_blank">41/9-19 Miller Street, Fitzroy North</a>
<img src="/images/2014/04/17/image3.jpg" width="456" height="342">
An apartment (pictured above) in Fitzroy North’s Miller Park complex sold for $510,000 on 9 April. The two bedroom first floor unit opens onto secure communal gardens and is situated just off Nicholson Street. This property sold below March’s median unit price for <a href="/news">Fitzroy</a>, which was $671,000 according to RPData.
<ul>
<li>Price: $510,000</li>
<li>Rooms: Two</li>
<li>Drive to CBD: 10 minutes</li>
</ul>
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20three.jpg" alt="">
 <a href="https://www.realestate.com.au/property-house-vic-reservoir-116400331" target="_blank">170 Spring Street, Reservoir</a>
<img src="/images/2014/04/17/image2%201.jpg" width="460" height="345">
This three bedroom home in Melbourne’s northern suburbs sold at $510,000 earlier this week. Another one sold on the back of its development potential, the weatherboard sits on a 585 square metre plot within walking distance of <a href="/news">Reservoir</a> train station and the Preston market. It was purchased by the vendors in 2006 for $258,000, almost doubling in value over eight years.
<ul>
<li>Price: $510,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 18 minutes</li>
</ul>
<img src="/images/2014/04/17/reservoir%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/reservoir%20april%2017%20two.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-apartment-vic-southbank-116430995" target="_blank">6/100 Dodds Street, Southbank</a>
<img src="/images/2014/04/17/image2.jpg" width="460" height="345">
This two bedroom unit (pictured above) sold for $511,000 this past weekend. The apartment in a low-rise complex has an open plan living area and is located near Melbourne’s Botanical Gardens. Though selling below <a href="/news">Southbank</a>’s March median price of $566,000, the property’s value almost doubled over the past 11 years. The vendors purchased the Dodd Street apartment for $265,000 in 2003.
<ul>
<li>Price: $511,000</li>
<li>Rooms: Two</li>
<li>Drive to CBD: Six minutes</li>
</ul>
<img src="/images/2014/04/17/southbank%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/southbank%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/southbank%20april%2017%20three.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-house-vic-altona+north-116006059" target="_blank" style="line-height: 1.3em;">26 First Avenue, Altona North</a>
<img src="/images/2014/04/17/main%203.jpg" width="460" height="345">
A new build in Melbourne’s south west, this three bedroom, two bathroom home (pictured above) sold for $525,000 on Monday. Bedrooms are carpeted while living areas feature hardwood flooring. The brick house with a courtyard and garage sold above the March median for houses in <a href="/news">Altona North</a>, which sat at $507,000.
<ul>
<li>Price: $525,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 17 minutes</li>
</ul>
<img src="/images/2014/04/17/altona%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/altona%20north%20april%2017%20three.jpg" alt="">
<img src="/images/2014/04/17/altona%20north%20april%2017%20four.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-house-vic-watsonia+north-116392011" target="_blank">12 Busst Drive, Watsonia North</a>
<img src="/images/2014/04/17/main%204.jpg" width="460" height="345">
Situated 17 kilometres north-east of the Melbourne CBD, this <a href="/news">Watsonia North</a> home (pictured above) sold for $515,500 this past weekend. The three bedroom house with front and backyards is situated on a corner plot, with the selling agent suggesting the possibility of further development subject to council approval. The home was last advertised to tenants at $380 per week in February, putting rental yield at 3.84%.
<ul>
<li>Price: $515,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 27 minutes</li>
</ul>
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20three.jpg" alt="">
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20four.jpg" alt="">
Photo of Melbourne courtesy of Vincent Q/flickr.
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jrichardson-uRX5hFdKfN

What Melbourne's median house price really gets you

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Living in compact housing is becoming more popular across Australia due to our changing demographic makeup and lifestyle expectations.
Demography
Every second household in Australia currently supports either one or two people.  Let me repeat, 51% of households, according to the 2011 Census, held just one or two people.
It is forecast that this proportion of one and two person households will rise.  Some estimates are that two-thirds of Australia’s homes will support singles or couples within a generation.
We are not just talking about the Gen Y rental markets here, but owner-resident households too.  This trend is even more pronounced for aging baby boomers and their first generation parents.
Lifestyle
Our time-short lifestyle is making the increased commuter time from ‘home’ to ‘work’ to ‘play’ (whether by car or public transport) less acceptable.
The increasing cost of long private commutes (petrol, car maintenance and insurance etc.) and the need for several cars is making the idea of a ‘go-card’ and public commutes/walking/cycling more appealing.
<blockquote>
The most important consideration in any new investment property purchase is who is likely to be the next owner after you.
</blockquote>
The lag in infrastructure provision to outlying new suburbs is adding additional strain on a public which increasingly wants more now.  Waiting for things (like neighbourhood services and amenity) is no longer part of our creed.
We, as a nation, by and large, seem happy to trade ‘space’ for ‘place’.
Creating place
I often repeat this simple phrase – “density needs to be offset”.
If we are going to live in a more compact dwelling space, then that space itself, and what surrounds it, needs to better than if our home and private yard was much more voluminous.
I am not staying that detached homes are potential dumps or that living on acreage is akin to being in a pigsty*, it’s just that the room for error is far greater in tight confines.
If I have learnt anything from watching those property shows on Foxtel, it is that space is often working against you when it comes to small builds.
Better buying
Compact housing design, like for apartments, must be clever in its use of space; finishes; building amenities and services.
One of the keys to better housing investment is to match the aspirations of the resident now and into the future.  The most important consideration in any new investment property purchase is who is likely to be the next owner after you.  It’s the next buyer who determines your capital growth potential and in most cases it is best if that next buyer is an owner-resident.
So what are some rules to buying a better compact dwelling?
<ol>
<li>
Space  Now this may sound like an oxymoron, but one should always buy as much space as one can afford.  There are basic human dimensions that can only be compromised so far.  For example, living areas must allow for residents and guests to easily move around.  One needs to be able to walk around a queen sized bed.   You do need to do the three S’s (shower, shave and s… well you get the picture) in a bathroom.  Kitchens aren’t just places for Clooney coffee machines, they need workable bench space, multiple storage options; good lighting and a full suite of appliances. 
</li>
<li>
Natural light and ventilation  Think energy efficiency.  The best way to do that is via natural light and ventilation.  All glass should be full floor to ceiling, designed to ensure privacy. 
</li>
<li>
Ceiling height  Space should not only be judged on floor area, but also by ceiling height.  It’s the perception of space that is important, not just the overall metereage. Buy apartments with a minimum ceiling height of 2.6 metres, over 2.7 metres is better still.  
</li>
<li>
Lighting and ceiling type  Down lights recessed into a plasterboard ceiling.   The plasterboard ceiling creates an air gap between the concrete slab structure and room itself.  This creates an important acoustic barrier that lessens noise from the apartment above.    Make sure there is enough lighting in the kitchen; bathrooms and laundry area. 
</li>
<li>
Hard floor finish  Carpet is out and tiles or timber is in when it comes to living areas.  Carpet in bedrooms is still strongly favored. 
</li>
<li>
Great kitchens  The kitchen is usually the ‘centerpiece’ of one’s home.  But when it comes to compact living, the kitchen’s status has lifted to ‘showpiece’. Let’s get a bit specific here, kitchens should incorporate:  Stone bench tops and high quality splash backs;  Designer cupboards and drawers – in fact the more drawers the better;  High quality appliance package with cooktop, oven, range hood, dishwasher, convection microwave and refrigerator – yes a microwave and fridge;  Good task lighting is vital  
</li>
<li>
Functional bathrooms  When it comes to local moves, one of the most cited reasons why is that the bathrooms weren’t practical.  Bathrooms need to have:  Sizable showers with detachable shower rose;  Mandatory WC;  Vanity with sufficient storage and shelves; Floor to ceiling tiled walls;  Natural light and direct ventilation if possible – i.e. operable windows;  Several towel rails;  Include stand-alone bath if space permits  
</li>
<li>
Separate laundry  A dedicated laundry area that is well ventilated and capable of linen and appliance storage - in fact the more storage the better.  
</li>
<li>
Storage Think about those designer closet advertisements you see in the weekend papers or on TV.  Storage is king when it comes to compact living.  The better the storage space the better your tenant and owner-resident resale appeal.  And this is the one area that most developers – like nearly all of them – don’t do well.  Sadly, most aren’t even interested in addressing this issue.  
</li>
<li>
MPR  One bedroom apartments – for example - can sometimes be a room short.  A small multiple purpose room or study has a variety of uses for a one or two person household.  It should be large enough to have a single bed, study desk and some robe space. 
</li>
<li>
Good sized balconies  A well-proportioned balcony not only allows for outside private entertaining, but allows the ‘outside in’.  The balcony should be able to accommodate a six seat table setting and room for a small BBQ.  A glass up stand is much better than a solid balustrade. 
</li>
<li>
Aspect and view  The most preferred aspect is north, but there are occasions where south, east and west can have a more appealing outlook and view.  An inviting view is a strong lifestyle and resale benefit. 
</li>
<li>
ASC  All living areas and all bedrooms these days should have individual air-conditioning.  Key card or intercom security to building and apartment floor is also mandatory.  Any new compact home should be capable of access to the NBN or broadband wireless. 
</li>
<li>
Car parking  One car per apartment is the minimum required to have future owner-resident appeal.  When it comes to the provision of visitor car spaces, one per four apartments is ideal. 
</li>
<li>
Lifts  Lifts and their operation are vital when it comes to apartment living.  A good lift service with access to basement carpark is one lift per 50 apartments. 
</li>
<li>
Recreational facilities  Residents and guests always appreciate a common area incorporating a swimming pool and deck.  Other meeting areas are also highly regarded.  A great foyer works wonders but gyms are better done offsite these days. These rules apply always.  But become vital when looking at buying in a crowded market.  Our property pick <a href="https://matusik.com.au/files/2013/03/Matusik-Property-Picks-March-2014.pdf" target="_blank" style="line-height: 1.3em;">rules</a> also apply.
</li>
</ol>
Good investing.
*I live on acreage in Brisbane’s west and let me tell you space allows one to hide a multitude of property sins.
Our thanks go to John Egan, <a href="https://www.eganprop.com.au/" target="_blank">Egan Property Solutions</a>, for his collaborative contribution to this article.
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

The rules for buying better compact housing investments 

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GUEST OBSERVATION
Value-add property includes a range of investment strategies, including buying assets at a discount to replacement costs; undertaking a releasing strategy; renovation and refurbishment of assets; redevelopment; strata subdivision of a property; land subdivision and rezoning of an industrial site.
Returns are delivered through the capture of market valuation enhancement as a consequence of insightful property management and capital expenditure, by improving property utilisation and improving occupancy. Upon completion the upgraded property asset may generate a higher and more reliable income.
Return and Factor Characteristics
Commercial factors associated with value-add property imply a periodic absence of income reflecting the time engaged in negotiating and concluding leasing or sale outcomes or implementing other value add strategies. The prospective return characteristics of value-add property and core property across the property spectrum are shown in Figure 1.
Figure 1: Effect of Increasing Commercial Factors
<img src="/images/2014/04/15/ming%20apirl%2015%20one.png" alt=""> Source: Atchison Consultants
Investment strategies illustrated in Figure 1, being core and value-add, exhibit different property factors and reflect increasing risk for which investors seek a higher return. Value-add property investment sits at the higher end of the spectrum, indicating an expected internal rate of return range of 12-20% per annum. Figure 1 also illustrates that as commercial risks are increased, the downside potential also increases.
Current Environment
Core property has the least risk for property investment. Given the prevailing prudent investing sentiment after the global financial crisis, these assets appealed to risk-averse investors. Investment opportunities providing enhanced returns above core property returns, may be generated by value-add property assets.
Investment in value-add property can be implemented through value-add property funds, or single asset syndicates. Participation tends to be limited to wholesale or sophisticated investors.
The conversion of secondary quality office space into residential apartments is a continuing trend. Lack of sites for residential use across capital city CBD markets, combined with softer investor demand for older office stock, has led to innovative managers offering funds which will participate in such projects.
A recent example of a value-add syndicate involved commercial office property in Sydney CBD which was 80% leased to two international corporate tenants. The building was purchased well below replacement cost reflecting a relatively poor lease structure. Value enhancement of the property is planned through upgrading the ground floor lobby entrance and external presentation of the building. This will result in the renewal of the lease with an existing tenant. In addition, the manager has identified a prospective tenant which will take the occupancy rate from 80% to 89%.
Ming Niu is an analyst at <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
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mniu-gkBe4pvnDQ

The merits of a value-add property strategy

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The Emporium Melbourne - billed as Melbourne's new shopping mecca - has officially opened its doors.
Formerly the home of the Myer Lonsdale Street store, the fully leased Emporium Melbourne will offer more than 220 international and local retailers over seven levels of what the owner CFS Retail Property Trust Group is describing as "world class retailing".
CFS Retail Property Trust Group chief executive Angus McNaughton, said: “We have delivered today a spectacular new retail destination for the Melbourne CBD which brings together a high quality mix of fashion and food, supported by some of the best retail brands in the world.”
Among some of the first-to-Australia brands include iconic Japanese brand Uniqlo in a four-level flagship store, youth brand Zoo York, The Waiting Room by Dr Denim, Calvin Klein Watches and Jewellery, and UCLA Store.
When complete the centre will also house more than 20 Melbourne flagships stores including a three-level Topshop, a two-level Super Glue, Nespresso, Muji, Oroton and Guess.
The centre will also feature a 1,100 seat cafe court and more than 20 popular Melbourne food names. Among them will be celebrity chef George Calombaris's new concept souvlaki bar, South Melbourne Dim Sims, Charlie and Co, Becasse Bakery and I Love Pho. 
This comes after it was delayed, originally <a href="/expert-insights/investing/emporium-melbournes-opening-delayed-until-2014">planned for a December 2013 opening</a>. It was originally <a href="/expert-insights/investing/emporium-melbourne-likely-to-open-with-85-occupancy-rate-in-2013-goldman-sachs">suggested to open with 85% occupancy</a>.
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The Emporium Melbourne officially opens its doors

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Expectations that Melbourne's CBD office market is in recovery mode have been declared premature by as much as 18 months.
The cautious assessment was revealed in BIS Shrapnel’s latest Melbourne Commercial Property Prospects 2014 to 2024 report which disputes claims that the mid-year fall in the city's CBD office vacancy rate from 9.8% to 8.7% as at December 2013 was a sign of a turnaround.
Instead, BIS Shrapnel senior project manager and report author, Maria Lee, attributed the reduction in vacancy rate in December 2013 to an unusually high level of withdrawals from stock.
"Had it not been for those withdrawals, the vacancy rate would have increased because net absorption was very weak", said Lee.
BIS Shrapnel doesn't expect such high levels of withdrawals to continue.
"The market will have trouble absorbing the quantum of floor space due for completion this year and next", she said.
"That said, due to the lumpy nature of completions it’s quite possible that the vacancy rate will fall temporarily in June 2014, but essentially we are bumping around the bottom in terms of the leasing market, vacancies and rents.”
BIS Shrapnel expects net absorption to remain fairly moderate in the near term, albeit it should pick up from the 10 year low recorded in calendar 2013.
Driving that view is the sustained soft patch in the Victorian economy. Specifically, Lee points to residential building activity falling, non-residential building being subdued and cuts in government investment a drag on growth.
She added that the high Australian dollar over the past few years had hit Victoria’s key trade-exposed industries, namely agriculture, manufacturing, finance and business services, international student education, and tourism.
Those factors "will not turn around immediately", said Lee.
BIS Shrapnel’s report sets out several reasons why the weakness in the Victorian economy is likely to continue for at least the next year before stronger fundamentals begin to reassert themselves:
<ul>
<li>Total building activity is likely to be soft for some time, dragged down by the residential sector despite the inner city apartment boom underway. </li>
<li>New public investment is expected to continue to trend downwards over the near-term as the state government attempts to consolidate the budget. </li>
<li>Engineering construction work done has further to fall due to the lack of major projects (apart from East West Link). </li>
<li>The Australian dollar is not yet weak enough to significantly boost the competitiveness of the state’s trade exposed sectors. Meanwhile, the closures of Ford, Holden and Toyota are a particular blow.</li>
</ul>
BIS Shrapnel anticipates that Victoria’s pace of economic growth will underperform against the national average for a "few more years".
For landlords and tenants, the report said, that meant that leasing incentives were likely to remain high for some time yet, continuing to affect owners but affording tenants a great opportunity to lock in low rents and/or upgrade to better quality accommodation.
Despite those headwinds, Lee made a point of saying that the economy was fundamentally strong and that the key drivers that underpinned the strength of the Victorian economy last decade were still in place.
"Consequently, the report forecasts a strong rebound in Melbourne’s office market in the second half of this decade," she said.  
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Forecasts of a Melbourne office recovery premature: BIS Shrapnel

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Former Wallabies player Matt Dunning has joined CBRE as a senior negotiator in its South Sydney industrial team.
Dunning, who had a distinguished career playing for the Australian rugby union team between 2003 and 2010, previously worked as business development manager at Workarena Pty Ltd. 
CBRE said that his appointment would bolster the agency's presence in region.
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