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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An upcoming seminar from Archers Body Corporate Management, in conjunction with Attorney-General Jarrod Bleijie and Mayor Mark Jamieson, is set to discuss the future of the Sunshine Coast’s strata communities and developments. And there’s two areas that investors are being pointed to.
Archers’ Andrew Staehr points to two main 'hotspots' for residents and investors to watch in the coming years – <a href="/news">Kawana</a> and <a href="/news">Maroochydore</a>.
“We are seeing a lot of activity in the Kawana area as a result of the Oceanside Health Hub and Kawana Health Campus development – expected to be one of the single largest health projects in Australia,” said Staehr.
“There is a huge focus on community living on the Sunshine Coast at the moment and Archers is involved in nine new projects within a three kilometre radius of the Oceanside Kawana project totalling more than 600 lots.”
He said that as these sites become developed, an increasing number of off-the-plan sales are being recorded, with investors being a large proportion of the buyers. Staehr said that these are good opportunities to buy into the market early.
Meanwhile, Jamieson said that a larger amount of this high-density development would be impacting the region for the next two decades.
“In the short to medium term, we have the Kawana Health Hub and Birtinya, which will provide housing for the new $1.8 billion Sunshine Coast Public University Hospital, while the Maroochydore Priority Development Area will start to come on line in a few years,” he said.
“The longer term will see the beginnings of Caloundra South. With all developments earmarked for higher-density populations, strata title ­will feature strongly.”
Strata development is, however, expected to be impacted by the Queensland government’s much-discussed review of property law to be released this year.
“The government has demonstrated its commitment to cutting red tape and addressing strata title issues for unit owners and developers on the Sunshine Coast,” said Staehr.
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jduke-EHk3XBmHkn

Are these two Sunshine Coast suburbs the places to watch?

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GUEST OBSERVATION
Like cheese and wine, but not – unfortunately for me – brains or biceps, the Significant Investor Visa improves with age.  Now that it has celebrated its first birthday, Australia’s visa program for immigrants willing to invest $5 million in the lucky country can be judged a roaring success.  Back in June, 2013, some observers called the <a href="/expert-insights/investing/more-hype-than-reality-significant-investor-visa-queue-jumpers-yet-to-be-significant">Significant Investor Visa “more hype than reality”</a>. Well, bloggers for Property Observer seldom make mistakes, but that was a big one.
<blockquote>
It is not by accident that 90% of the applicants for the Visa come from mainland China.
</blockquote>
It turns out that the visa wasn’t over-hyped, it was just getting started. Even Usain Bolt had to learn to walk before he could run. Here are the latest figures for the program, as provided to me by the office of the Minister for Immigration and Border Protection, Scott Morrison: • Rich would-be immigrants have lodged more than 600 applications for the Significant Investor Visa. • 91% of these wealthy applicants are Chinese. • 88 visas have already been granted. • The investments the current batch of applicants have proposed add up to nearly half a billion dollars in new  activity in Australia.   Some lampooned the government of the time for giving the Significant Investor Visa the official name of "Subclass 888.”  Looking back, using these numbers seems inspired. Triple eight is the luckiest combination of digits in Chinese numerology – and a potent symbol of prosperity in Chinese culture. It is not by accident that 90% of the applicants for the Visa come from mainland China. The fall of the Australian dollar has also favoured the Subclass 888 visa. Over the past year, the amount of Aussie money it takes to buy 1 Chinese Yuan has steadily increased.  The reverse is also true, and Australian dollars have gotten cheaper for anyone holding Chinese money. From the perspective of Chinese investors, that means an investment of AU$5 million has gotten steadily smaller in their own currency, so that it starts to look like a bargain. Real estate agents are seeing the impact.  Georg Chmiel, CEO of the LJ Hooker network, told me this: "Our LJ Hooker offices are increasingly fielding calls from Asian nationals looking to buy a trophy home for when they are in Australia.”  He also said that, on an international stage, “Our real estate represents value for money. We have a transparent government and stable economy.” Another real estate leader I spoke to recently agrees. Michael Davoren, Managing Director of RE/MAX Australia, told me that his network is also getting many inquiries from Chinese buyers. “There is significant representation in these inquiries for premium properties that could serve as residences for beneficiaries of the Subclass 888 investor visa,” he recently emailed me. So, the next time a vendor asks you if the Significant Investor Visa is having an impact, tell them that – notwithstanding what they may have read – the answer is “Yes.”
Andrew Taylor is the Queensland-born co-CEO of <a href="https://juwai.com/" rel="nofollow">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world.
He has almost a decade and a half of experience in Australian and Chinese real estate and managing print, TV, radio and online media. He also has bachelor and graduate degrees in classical music, and plays the diyin gehu (Chinese bass).
 
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ataylor-LB7AWVFTs9

Why the Significant Investor Visa is the fine wine of visa programs

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Over 2013, local institutions, syndicates and private investors were the most active across Perth’s market, however this year the tide will turn towards offshore investment, according to Knight Frank.
Knight Frank noted that while Perth’s market will continue to perform well, it will be buyers offshore, specifically in Asia, who will become more aggressive in their purchasing habits.
Local buyers accounted for 87% of 2013’s $1.26 billion of major sales in Perth. This figure may just change dramatically, suggested Knight Frank managing director of Western Australia, John Corbett. 
Investors offshore secured more than $250 million of Perth property in January this year.
However, the lion’s share was $205 million in a single purchase of Harbour Town by Singaporean company Far East Group. He said there were some significant purchases from Malaysian, Singaporean and US investors outside of this also.
“The decrease in the value of the Australian dollar started to draw foreign attention back to Australia in the latter part of 2013, but it will really begin to gain momentum in 2014,” Corbett said.
“In addition to the favourable dollar, yields in Australia are mostly 8% plus, whereas in Asia they are below 3%,” he said.
He said that the strong economy is making the area attractive to offshore buyers. This was recently emphasized by CBRE in a research analysis that found Australia is the second most attractive country for cross-border investment, after China.
CBRE’s Asia Pacific Investor Intentions Survey 2014 showed that a significant majority, 64%, expected to commit more capital to the Asia Pacific real estate market this year than last.
There are, however, some concerns around investing this year. An economic slowdown or weakness was cited by 23% as the main concern, the perception of property being overpriced was noted by 21% of respondents and the effects of US tapering and rising interest rates were flagged by 17%.
Managing director, capital markets Asia, CBRE, Greg Penn, said that despite this the outlook remains positive for longer term prospects.
“Investors are not just planning to commit more capital to the region, they are looking to commit substantially more. The attractiveness of Asia Pacific as a region persists as a result of economic growth levels that remain higher than global averages, long-term demand for quality commercial property and rapid urbanization,” said Penn.
Their survey still found that, of the Australian cities, Sydney and Melbourne were ranked highest as the offshore investors’ places to buy.
There may, however, be a slowing in capital inflows as we compete on the global stage.
CBRE senior director, international investments, Michael Andrew, said that investor interest is also broadening past the main CBDs, and into our secondary markets.
“Australia is still witnessing very strong demand for core real estate across all sectors, however we have seen the emergence of an appetite for assets in what has often been seen as secondary “non-core” markets, where investors understand they can still get high quality assets, strong covenants and at better yields than in the CBD's,” Andrews said.
Industrial assets regionally have seen an uptick in popularity in the survey, with the industrial and logistics sector particular highlighted as attractive.
Overall, however, the office sector took out top spot in popularity with 32% of results, followed by industrial and logistics, 29%, and residential, 21%.
This survey has been recorded since 2005, was carried out online between January and February 2014 and included a number of different real estate investors including fund or asset managers, private property companies, REITs, banks, insurers and private equity firms.
However, not every overseas investor is set to do well. Those with some local knowledge are likely to outperform others, said Corbett.
He also said that where development sites were 2013’s focus, now it will be income generating assets.
“Canadian pension fund PSP bought a 33% share in Raine Square and Bankwest Place last year, while US investor Blackstone purchased 8 St Georges Terrace, showing strong trans-Pacific interest in our market,” he said.
“We expect that will be the beginning of increased interest in Australia from US and Canadian markets.”
He pointed to opportunities for offshore investors at primarily securely leased CBD office buildings, shopping centres and selected hospitality assets.
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Offshore investors eyeing Perth commercial market

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The Reserve Bank and “exciting” have never been seen in the same sentence. It’s a staid and stodgy institution and listening to a speech by an RBA Governor is a slow form of torture. Who can forget the Bernie Fraser monotone? Current Governor Glenn Stevens is a circus performer by comparison.
But thank god for the RBA for bringing some calmness and sanity to general media hype about housing “booms” and the risk of “bubbles”.
Minutes of the RBA’s March meeting show that housing market conditions “do not pose a near-term risk” and there is “no immediate cause for concern” in terms of debt levels and lending standards.
The RBA board says the situation warrants close observation but “agreed that present conditions in the household sector did not pose a near-term risk to the financial system”.
<blockquote>
Various claims about the price of Australian dwellings – that they are unaffordable, the highest in the world and indeed constitute of a bubble bound to burst – run contrary to the available research.
</blockquote>
It says something about mass media hysteria about “white hot” markets and bubbles collapsing that the RBA’s voice of reason on these issues is a voice in the wilderness – and that its comments on the household sector should receive such scant media attention.
Compare the coverage of the RBA’s calm and rational analysis with the media stampede towards an American spruiker who claimed our property values would drop 50% - the same claim he has made numerous times in the past (but only when he’s seeking to drum up publicity for a seminar tour or a book launch) and been proven wrong each time (he told us Australian real estate would crash in 2012).
Compare also coverage of the emotive and irresponsible claim by Credit Suisse in a “report” that a whole generation of Australians are being priced out of property by foreign investors and face a lifetime of renting. It’s surprising the lengths apparently credible organisations will go to in their pursuit of publicity.
Various claims about the price of Australian dwellings – that they are unaffordable, the highest in the world and indeed constitute of a bubble bound to burst – run contrary to the available research.
Let’s put the alleged “boom” into perspective, using RP Data figures. Dwelling values have risen about 9% in the past 12 months, as an average across the eight capital cities. Only Sydney has experienced double-digit growth. Five of the eight cities have grown just 3% or less.
If you compare current dwelling value levels with the previous market peak, only Sydney is substantially above it. Five of the eight cities have values that are still below the previous peak.
Looking at it another way, the growth over the past 10 years has been moderate in most cities. Sydney has averaged less than 3% per year in the past decade, despite the recent upturn (2013 was the first major growth year in a decade). It has barely kept pace with inflation and wages growth.
The average for the eight capital cities is about 4% per year over the past decade. That means negligible growth, if any, in real terms.
How can anyone construct a bubble fit to burst out of those numbers?
The media coverage that claims this goes beyond sensationalism. It’s dishonest, unethical and the worst kind of misinformation, which remains the blight of real estate consumers across the nation.
 
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RBA restores some sanity to "boom" and "bubble" debate

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Australian tourism operators have given a bullish assessment of the industry in the latest TTF-Mastercard Tourism Industry Sentiment Survey, with the sector’s performance in the December quarter at the highest level ever recorded for the survey.
Industry operators have cited the <a href="https://www.smartcompany.com.au/growth/economy/35937-rba-wants-a-lower-aussie-dollar-but-will-this-help-smes">easing value of the Aussie dollar</a> and the <a href="https://www.smartcompany.com.au/leadership/strategy/35935-tourism-industry-set-for-a-boost-as-international-students-granted-transport-concessions">continued increase in tourism numbers</a> from Asia, especially China, as key factors for the upbeat assessment.
The potential for tourism growth from the Indian market was also highlighted in the survey, with visa reforms, tourism marketing and air access identified as critical factors in cracking the emerging pool of Indian middle-class travellers.
Transport Tourism Fund chief executive Ken Morrison said the survey showed the industry was in good shape, with a lower Aussie dollar helping to boost overseas visitor numbers and making Australia a more affordable destination.
“Respondents rated the tourism industry’s performance in the December quarter at record levels, with the international performance index at 139 and domestic performance at 125, both well above the average for this time of year and the highest since the survey’s inception,” Morrison said in a statement.
“The TTF-MasterCard Tourism Industry Sentiment Survey backs up recent tourism data showing that international visitation continues to rise and that domestic overnight visitors are spending $1 billion a week around the country.”
Tourism operators are less worried by currency exchange rates than they were last year, with only 37% of respondents in the new survey saying it was an issue, compared to 53% for last year’s December quarter survey.
However, operators cited increased concerns about a shortage of skilled labour (up 8% from last year), inadequate room supply (also up 8%), and Australia’s reputation as a desirable tourist destination (up 6%).
Morrison said another key concern was the liberalisation of visa requirements for overseas tourists. He said this was especially important if Australia wanted to grow its share of visitors from emerging markets such as India, which was now seen as a huge and largely untapped market for Australian tourism operators.
“Visa reform is seen as the top priority to help grow visitation from India, with tourism marketing and air access the next most critical issues,” Morrison said.
“More broadly, visa reform is also seen as a key issue by the industry, especially moving to online processes in a range of languages, along with the cost of applications and the provision of multi-year visitor visas.”
Australia India Travel and Tourism Council chairman Sandip Hor told SmartCompany making the visa process easier for Indian tourists would bring Australia in line with the Indian government’s recent move to implement a streamlined visa-on-arrival program for Australian tourists.
“If the visa process is streamlined and made easier then it attracts more tourists; the tour operators love that. They say [to potential clients] that going to this country is very easy from getting a visa point of view,” Hor says.
He says Indian tourists often thought getting a tourist visa for travel to Australia was more difficult than for places like the USA, where Indian tourists had traditionally travelled in greater numbers.
“It is perceived in India that getting a visa to Australia is a difficult process – perceived.”
Hor says Australia had much to offer Indian tourists, especially beyond the two biggest cities, Sydney and Melbourne, but this was perhaps not being adequately communicated to potential tourists.
“The image of Australia that is seen overseas is often the Opera House, the Harbour Bridge and the Great Ocean Road, but Australia is a very big country and I think the entire nation has to be exposed. For example, Uluru, I hardly see it [in marketing material].”
Hor says a more evenly spread focus on attractions other than those in New South Wales and Victoria would help Australia appeal to tourists looking for different things from their travel experience, as well as relieve pressure on infrastructure and hotel room supply in Sydney and Melbourne.
This edition of the survey is being launched as Tourism &amp; Transport Forum members gather at Parliament House in Canberra for Leadership 2014, TTF’s dialogue with the federal government and opposition on key issues facing the tourism, transport and aviation sectors.
The top five business impediments cited by survey respondents are:
<ul>
<li>Exchange rate (37%)</li>
<li>Reputable as a desirable tourist destination (30%)</li>
<li>Inadequate room supply (30%)</li>
<li>Shortage of skilled labour (28%)</li>
<li>Taxes and charges on tourists (25%)</li>
</ul>
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Lower dollar has Australian tourism operators smiling: Tourism industry survey

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A Bunnings warehouse in Melbourne's Hastings is being offered for sale.
Constructed in 2011, the 1837 Frankston-Flinders Road warehouse is 9,204 square metres and is leased to Bunnings Group- a subsidiary of listed conglomerate Wesfarmers on a 12 year lease.
The property is described as having "significant depreciation tax benefits".
The net income is estimated at $985,000 per annum, with a favourable net lease structure and fixed annual increases of 3%.
A public tender campaign closes on 17 April through Mark Wizel, Justin Dowers and Rorey James of CBRE, in conjunction with GrossWaddell.
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Bunnings Warehouse in Hastings offered for sale

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Property Investment Group has leased about 234 square metres of office space in the Savoir Faire office complex in Brisbane's inner west suburb of Milton.
The 3 + 3 year lease was taken at 25/20 Park Road and the deal reflected a gross rental of about $60,000 a year. The lease was negotiated by Alex Smith of Ray White Industrial Milton.
This is the only office level in this building with an external balcony and walkway entrance adjoining nearby retailers and restaurants in the heart of Park Rd.
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Property Investment Group take out Milton, Brisbane lease

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Internet service company Rakuten Linkshare has leased 151.90 square metres of office space at 61 York Street in the Sydney CBD. The building is owned by Nick Manettas - the founder of Sydney waterfront dining venues including Nick's Seafood and Nick's Bar &amp; Grill.
The rent was struck at an initial rent of $625 per square metres per annum over a term of two years.
Ray White Commercial's John Skufris and Anthony Harris negotiated the lease. Mr Skufris noted that the building had been very popular among a wide range of tenants. "We have received good interest from serviced office, insurance, digital marketing and software groups seeking fitted and furnished space or refurbished premises,” he said.
Mr Harris added that four whole floor leasing transactions had been completed in the building.
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Rakuten Linkshare lease Sydney CBD office space

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Internationally renowned hair stylist Christiaan Georgio is opening his first hair salon in Melbourne.
The Melbourne born stylist has secured 71 square metres of retail space at 123 Collins Street, on a gross rent of $1,408 square metres. The lessor is the Grand Hotel Group and the lease is for eight years, effective from 1 March.
The lease was negotiated by Colliers International's Ben Tremellen.
“This deal is the result of a targeted approach to leasing by Colliers International, focusing on a high end retailer to complement the hotel driveway,” Mr Tremellen said.
The new signature salon is the latest addition to Mr Georgio's international portfolio, which includes a number of luxury hotel groups including The Portman Shangri-La, Grand Hyatt Mumbai, The Peninsula Manila, and the Island Shangri-La Hong Kong.
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Christiaan Georgio likes the cut of Collins Street store lease

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BMW Group Financial Services has secured nearly 3000 square metres of office space in Salta Properties’ Nexus Corporate estate in Melbourne’s south-east. Under the three year lease, BMW Finance will occupy 2,925 square metres of space, at 2-22McDonald's Lane, Mulgrave.
The lease is valued at $1.3 million. Couriers Please occupies the remainder of the 12,900 square metre site.
Located at the intersection of Monash Freeway and Springvale Roads, Salta’s Nexus Corporate is complementary to BMW Finance’s existing property on Springvale Road, Mulgrave.
Salta Properties Managing Director, Sam Tarascio said: “BMW Finance fills the final large tenancy in a portfolio occupied with top corporate players, joining Couriers Please, GS1, Adidas, ADP, Bristol-Myers-Squibb and Carlisle Homes."
The lease was negotiated by Rob Joyes of Colliers International.
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