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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A $10,200 penalty has been paid by SMSF Property Capital Pty Ltd, to comply with an infringement notice from ASIC, after the company presented potentially misleading statements referring to 'ASIC approved' financial products.
The payment of the notice is not taken as an admission of liability.
Deputy chairman for ASIC, Peter Kell, said that this should be taken as a warning to anyone advertising financial products.
"It is crucial that consumers are not misled about the level of risk associated with any investment," Kell said.
"ASIC takes the misuse of language such as 'ASIC endorsed' or 'ASIC approved' very seriously, especially in the area of SMSFs. Creating a false impression of the level of regulatory approval for investments can lead to consumers making poor decisions," he said.
Queensland-based SMSF Property Capital had acted quickly to remove the statements from its website after ASIC approached them.
The representations included in the infringment notice were said to include the following on webpage smsfproperty.net.au around August 2013.
"SMSF Property Advisers has a pipeline of management property investments through Australian Securities and Investments Commission approved schemes."
"By partnering with many other SMSF investors in an ASIC approved managed fund our clients receive the significant benefits of a development project achieved without carrying any bank debt."
"Using an Australian Securities and Investments Commission (ASIC) approved structure, we give our clients access to developer profit margins, relatively short turn-around investment returns, and developments without debt."
If SMSF Property Capital did not comply with <a target="_blank" href="https://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/B661581.pdf/%24file/B661581.pdf">the ASIC infringement notice</a>, they may have had to pay up to $1.7 million maximum for the alleged contravention.
Online advertising has been a focus of ASIC lately, with <a href="https://www.propertyobserver.com.au/finance/asic-penalises-mortgage-choice-for-claims-of-saving-customers-%2410k-over-five-years/2013112766653" target="_blank">Mortgage Choice</a><a target="_blank" href="https://www.propertyobserver.com.au/finance/asic-penalises-mortgage-choice-for-claims-of-saving-customers-%2410k-over-five-years/2013112766653"> recently being fined</a> and <a target="_blank" href="https://www.propertyobserver.com.au/finance/myrate-makes-changes-in-response-to-asic-concerns/2013120966843">MyRate similarly responding to ASIC concerns</a>.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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jduke-EHk3XBmHkn

SMSF Property Capital pays penalty over 'ASIC approved' statements

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Amid the gloom announced in yesterday’s Mid-Year Economic and Fiscal Outlook is the faint hope Treasurer Joe Hockey is broadcasting a worst case scenario to avoid economic surprises.
But on the face of it, the MYEFO forecasts hold bad news for the nation’s finances, with untrimmed deficits blowing out to $123 billion over four years.
Just last month the deficit was set to disappear by 2016-17, according to the Pre-Election Economic and Fiscal Outlook.
The MYEFO forecasts get worse to the tune of a $667 billion deficit by 2023-24.
Crikey federal politics correspondent Bernard Keane suggested one “interpretation” of the tighter MYEFO figures is that “[Treasurer Joe] Hockey has demanded Treasury slash its forecasts and give him the worst-case scenario for revenue” to avoid troubles that plagued the previous government as Treasury continually revised down revenue projections.
“The key reason is that forecasts for nominal GDP growth have been revised down, and revised down a lot,” <a target="_blank" href="https://www.crikey.com.au/2013/12/17/myefo-hockeys-budget-blows-out/">he wrote yesterday</a>.
Growth in nominal GDP as stated in PEFO was 4.5% in 2014-15, but MYEFO has revised that figure down to 3.5%, and in the following years nominal GDP is half a per cent lower than the PEFO forecasts.
“They are the lowest nominal GDP forecasts since the global financial crisis,” says Keane.
Rivkin investment firm chief executive Scott Schuberg has offered a similar sentiment to Keane’s, stating “while Labor played politics coming into the election by consistently downplaying the softening figures behind our economy, this outlook is designed to get the bad news out early so that expectations remain low before we next go to the polls”.
Schuberg said MYEFO was “more of an articulation of reality than a revelation”.
The Australian Chamber of Commerce and Industry has used the deficit number to call on Parliament to, literally, think of the children.
“Unless the budget is brought back into repair inside this budget cycle, our nation faces the unpalatable prospect that children born in 2007 will not see a government living within its means until they hit secondary school,” said ACCI chief executive Peter Anderson.
The challenge for Hockey’s team is to find a way to slice away the $123 billion forecast deficit.
But Anderson has a way, pare back the Coalition’s “excessive” paid parental leave scheme, and unwind expenditure related to carbon pricing and “expensive renewable energy schemes”.
The Australian National Retailers Association was not worried by the MYEFO news. Chief executive Margy Osmond was “slightly concerned” it would scare buyers out of shops and curtail the claw-back in Christmas retail spending.
The Institute of Chartered Accountants Australia reacted with a call to look at widening the GST tax base to address the variability in projected revenues seen over 2013.
Hockey spoke as the MYEFO figures were released yesterday when he said “taxpayers can no longer afford old government spending priorities,” as quoted in The Australian Financial Review.
“Australians will now have to adjust their expectations of what government can sustainably provide,” he said.
Expectations are that Hockey will cut from education, welfare and social spending, Phillip Coorey in the AFR states.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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dmoss-2Ltwr5j89M

Analysts hoping for worst case outlook after Joe Hockey reveals Mid-Year Economic and Fiscal Outlook

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It is not sunny in Surfers Paradise when it comes to mortgage delinquencies, with the beachside Queensland city proving the worst for mortgage delinquencies across the country.
A report by Fitch Ratings found that in the six months to September this year, Surfers Paradise became the worst-performing postcode when it comes to arrears on mortgages.
The area had a 30-plus day delinquency rate of 4%, <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/32456-mortgage-delinquencies-rise-in-first-quarter-the-nation-s-worst-performing-postcodes-revealed">replacing Nelson Bay in New South Wales</a>, which was the highest delinquency area in the first half of this year.
Regional Western Australia proved to be a deteriorating area, with delinquencies up to 1.76%.
The report said this area has experienced an increase in unemployment and declining house prices over the six months to September 2013, which contrasts with the rest of the western state.
It also found that other regional areas in New South Wales and Queensland have not improved as much as the rest of Australia.
Across the country overall, mortgage delinquencies were down to 1.25% for the period, from 1.45% at the end of March this year.
The figure is below the six-year average of 1.52%, but still above the 1.2% compared to the end of September 2012.
Tasmania was found to be the overall worst performing state, with 30-plus day arrears in Tasmania improved by only three basis points to 1.51% at start of September 2013.
The worst-performing region nationally was Hume City in Victoria, with a 30+ day delinquency rate of 2.10% at end-September 2013.
This replaced Fairfield-Liverpool in NSW, which Fitch Ratings reported has been the worst-performing region over the past seven and half years.
Fitch Rating’s James Zanesi told SmartCompany this morning that the rise of Surfer’s Paradise for mortgage delinquencies was not a surprise.
He says it took over Nelson Bay, which had held the post for seven years, as some coastal properties that had been very slow to sell in Nelson Bay were finally sold.
Zanesi says some properties took nine or ten months to get picked up by a buyer, which severely impacted the ability to repay mortgages in certain areas. He explains that a delinquency is measured at either one month of late repayments, or up to three months of late repayments, which suggests that the mortgage cannot be paid.
In regional Western Australia, Zanesi says mortgage delinquencies could be related to the mining boom, with people investing heavily in property, but as the boom dropped so did the ability to repay.
Zanesi expects the next six months of results to show the impact of the Christmas spending season, which can cause people to get behind on repayments.
Not surprisingly, the most affluent regions had the lowest mortgage delinquency rates, with lower northern Sydney, south east inner Brisbane, northern middle Melbourne and central Perth the best regions.
The delinquency rates in these regions were in the 0.45 to 0.74% range.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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moliver-7qYWqnHmyR

Surfers Paradise the worst postcode for mortgage delinquencies

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Looking back at the year in property, our property commentators Jonathan Chancellor and Margie Blok select their important takeouts from 2013.
<img width="150" height="225" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" style="float: right;">HE SAID:
1) The strength in the spring and early summer sales success means there's not going to be as many listing leftovers languishing on the early 2014 market. And many of the recently listed forthcoming February auction stock will unquestionably get sold well ahead of their scheduled auction.
It bodes well for a quick clean start to the year, but you never know sometimes just how the market psychology can change over the summer break given particularly any arising economic factors.
I sense Sydney will record a slight moderation in price growth during early 2014. I note John McGrath expects, at some point next year, people will take their foot off the pedal and there will be less of the frenzied activity of 2013  – but he forecasts that’s not going to happen until after the Autumn selling season. He says people are really excited to see property prices moving after four sluggish years adding there's a now a new market cycle where the run on prices will continue for a few years now.
But while in broad agreement with John I warn there will be dips and peaks along the way, so timing will ensure the difference between over paying and buying well.
2) Yes the Chinese surge continued, but only in select metropolitian suburbs. They are cherry picking the trophy opportunities - especially those close to secondary and tertiary campuses - in the likes of Brighton, Toorak, Balwyn, Box Hill, Clayton and Glen Waverley, in Melbourne and Mosman, Vaucluse, Haymarket, Eastwood and Hurstville in Sydney. Mainland China buyer have snapped up $50 million worth of property transactions in Mosman including a $10 million Carrington Avenue sale this week through Belle Property. The vendors wanted $13 million on its initial 2010 listing.
If the Chinese/Australian buying interest hasn't shown up in your suburb, then your suburb will at best enjoy the ripple effect of outbid locals forced to buy in adjacent suburbs. 
3) Normally price rise momentum begins at either the top end or the cheapest buying suburbs, but this current fillip arose in the professional middle class suburbs. The middle end of the market has been the strongest while the prices in the upper brackets have barely started to improve, despite what is being often gushingly reported.
One or two prestige sales, including <a target="_blank" href="https://www.propertyobserver.com.au/trophy-homes/altona-point-piper-sells-for-possible-%2450-million/2013050160931">Altona</a>, of which Margie broke the news in May, and the <a href="/news">Bang &amp; Olufsen House</a>, in Point Piper were worthy of excitement, but most top end sales were ordinary, with many more are still languishing unsold. Upgrading to the top end therefore makes sense in 2014.
Investors are snapping up the cheapest offerings given the absence of the first home buyer brigade. Sometimes at prices below their last sale price especially in Sydney's south west and the NSW Central Coast. This will be the most interesting trend to follow in 2014.
 
<img width="150" height="225" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" style="float: left;">SHE SAID:
1) There was a degree of sensationalism about the market “booming” in the mainstream weekend press reportage.
Certainly, the market was robust for properties in the low to medium price brackets of capital cities, largely due to heightened investor demand and lower interest rates.
Sydney showed a year of meaningful growth which resulted in many real estate agencies reaping rewards with increased sales turnover compared with the previous year. But the rate of growth this year was less than the real booms I've seen. Residex's John Edwards has Sydney house prices up 10% over the past year and it's worth remembering that for the year ending June 2010, Sydney house price growth was 17%; growth for the year ending July 2002 was 23% and growth in 1989 was 38%. A little research helps puts the latest scenario in context.
Also it’s most important to note suburbs vary greatly when it comes to the state of the market, and within those suburbs some properties perform better than others. In our capital cities, there are thousands of local markets moving in in various directions and at different speeds.
 A handful of strong sale prices within a suburb does not translate to a booming market. It was wrong to conclude that the high auction clearance rates were necessarily accompanied by an across the board price surge.
 I agree with Hotspotting’s Terry Ryder who sagely reported in Property Observer last week that there is no such entity as “the Australian property market”.
From my observant point of view - both anecdotally and data driven - 2013 shaped up short of the "boom" speciously reported by much of the metropolitan newspaper industry.
2) Buyers were price sensitive about properties in the top price brackets.
During the year, and particularly for the past four months, real estate agents have been stressing in their weekly newsletters that this top section of the market is not experiencing the same strength as the lower end.
I agree with the opinion of Double Bay agent Bob Guth, a principal of Bradfield Cleary, who late last month shared his insightful view about the market saying the lower to middle sector of the market in the Eastern Suburbs, up to $3,000,000, was strong with the possibility of the upward swing of 2013 continuing next year.  However he noted the top end was "very much confidence driven and any sustainable improvement will depend on the overall economy – which may be problematical.”
3) Lifestyle property sales continue to drag the chain. Whether it be the Southern Highlands, Port Douglas or Mornington Peninsula, these discretionary purchase properties have lingered on the market for months due to a dearth of buyers.
Perhaps the occasional spurt in activity but the appetite for expensive lifestyle properties (which also are expensive to maintain) remains diminished following the global financial crisis with the professional classes worried about job security. Merchant bankers, who no longer reap big bonuses, are not splurging on luxury weekenders.
Also, people find that they cannot spare the time to constantly visit lifestyle properties which are a nice dream, but can become an albatross.
It seems travel is the easier lifestyle option being cheaper and more convenient.
One suburb which bucked the trend in terms of activity this year was Palm Beach on Sydney’s northern beaches peninsula where 72 properties traded during 2013, according to RP Data. The suburb’s top 2013 price was the Nankervis family’s Sunrise Road property which traded for $10.6 million in August. Listed in January, the trophy residence stands on an 1891 square metre block with uninterrupted and never-to-be-built-out northerly views - a Susan Rothwell house in Will Dangar gardens. The price recovery wasn't there as this one came on initial listing with $14 million hopes.
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jchancellor-FAypfDUnLy

Looking back at the property year - three important takeouts from 2013: He said/She said

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It is that time of year again when Australians pack their bags and head off to their favourite holiday spot for the summer. As you do this, chances are you’ll flirt with the idea of going one step further and buying your own slice of paradise.  
A holiday home can either be a great getaway for your family and friends, or a constant drain on your finances. It all comes down to the type of asset you buy and whether you can truly afford it.  
Many people buy a holiday home when they’re feeling flush, only to run into trouble when things get tight. Often, they already have a substantial mortgage on the family home and take out a second mortgage to buy the holiday home. They tell themselves that the holiday home is an investment because they can rent it out when they’re not using it, and put the rental income towards paying the mortgage.  
Don’t be fooled. To be a true investment, a property must produce a consistent level of income.  
Holiday homes can produce considerable income at peak periods such as school holidays, Christmas and Easter when demand is strong, but far less at other times.  
This inconsistency can make it hard to plan your finances, meaning you’ll probably have to pay most of the mortgage from your own pocket. You’ll also have to find money to furnish the property and fund ongoing costs like council rates, property management fees, insurance and maintenance.  
What’s more, being reliant on peak rental periods to help pay the mortgage will limit your own use of the property to non-holiday periods when the weather is less than ideal and you’re less inclined to go there.  
If you borrow to buy a holiday home while you’re still paying off your family home, you’ll be more vulnerable to the effects of changes in your finances. For example, if your household income drops because of a job loss or unpaid parental leave, you may be unable to meet the costs of holding two properties and be forced to sell the holiday home.  
If the change is one that affects the wider property market, like an interest rate rise, it may be difficult to sell your holiday home because potential buyers will be feeling the squeeze too. You may have to sell it for a substantially reduced price, or worse still, be unable to sell it at all.  
In short, it’s sensible to treat a holiday home like a second home, not an investment. If you’re going to buy one, it’s probably best not to do it until you’ve paid off your family home so that you only have one mortgage at a time.  
If you can genuinely afford to buy a holiday home, it’s vital to choose the right kind of asset. When economic times tighten, your property stands a better chance of holding its value if it is located somewhere that’s readily accessible from a major CBD. Try to buy something within two hours’ drive of the city and easily accessible via major highways.  
Select a location with a distinctive natural attraction such as a lake or beach; something that gives people a specific reason to go there. The property should also be close to amenities such as shops, cafes, pub or golf course.  
And yes, views really do count. A good view of a natural attraction can add considerably to your property’s value because potential buyers feel that they’re buying a slice of exclusivity.  

<hr>
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
       
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marmstrong-sd3emVLPPb

'Tis the season to be jolly, and smart about buying a holiday home

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There has been a whole lot of negative talk recently about the detrimental impact of the car industry leaving Australia.
And clearly, our hearts go out to all the affected workers and their families in car manufacturing and those related component suppliers.
Most of us cannot even begin to imagine the shock and surprise they are now feeling — particularly right on Christmas.
And yet, if you just focus upon the likely impact on the Australian economy, much of the commentary can be seen as misguided.
Certainly, Holden's departure will have a short-term impact. But let's look at the facts: It appears to be emotionally charged, and politically motivated — with the talk of a recession quite wrong, and bordering on mischievous.
<ol>
<li>
As Saul Eslake (chief economist at Bank of America Merrill Lynch) points out, car and components manufacturing represents about 0.4% of total employment. An adds only a similar amount to Australia's gross domestic product (GDP). As you would probably realise, this is no more than what we already experience now as quarterly GDP fluctuations.
</li>
<li>
A study by Flinders University found most workers, who were made redundant by Mitsubishi's 2007 closure of its Lonsdale and Tonsley Park factories (in Adelaide), found alternative work within 18 months..
</li>
<li>
Unlike Mitsubishi, the actual closures for Ford and Holden are not happening immediately. Rather, they have been foreshadowed well in advance and will occur progressively through to 2017.
</li>
<li>
State and the federal governments (plus the companies involved) will be providing millions of dollars of support and retraining help, for every displaced worker.
</li>
<li>
Apart from those close to retirement, this means everyone who is serious about finding ongoing employment has a once-in-are-lifetime opportunity for a "financed transfer" across to a new employer — whose future is not dependent on government subsidy for survival.
</li>
</ol>
You only need to cast your mind back to the bushfire devastation Victoria went through in early 2009. As a result, the recovery process (funded by the state and federal governments and, in that case, the insurance companies) left the Victorian economy in a far stronger position.
Now it enjoys positive net migration, when compared with other states. And more importantly, that process has also resulted in Victoria's present solid budget position; as well as an escalating commercial property market.
Bottom line: You need to look past the knee-jerk, emotional reactions, plus the inevitable short-term adjustment. And instead, focus upon the long-term sustainable benefits, which these current events will deliver — both to the economy and the commercial property market.

<hr>
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
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chrislang-EQKojcgJPV

What does the car industry closure mean for commercial property?

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The executive chairman of Aussie, John Symond expects investors will continue to dominate property purchases into 2014.
He sees this as "a long term fundamental shift" in the property market.
It comes as first home buyers typically failed to compete against investors in what Symond called the many hot property pockets of many capital cities during the spring selling season.
First home buyers are absenting themselves from the market at a time when the conditions are actually rather favourable for them given interest rates are at historic 50 year lows and mortgage repayments as a proportion of average disposable incomes are lower than for much of the last two decades. John Symond reckons the current potential first home buyers are preferring to invest in shares and rent in apartments nearer their workplaces or CBDs.
Symond sees part of the solution for the Federal government to look at creating tax incentives for first home buyers to save for a deposit.
There is the existing first home buyer saving accounts scheme introduced by Prime Minister Kevin Rudd, which after plenty of patience offers a terrific honey pot, but just doesn't seem to have gathered much traction.
Yes the required home buying deposit has risen considerably as prices rose faster than incomes - from around 2.5 times the average disposable household income in 1985 to around 4.5 times now - but maybe there are other life priorities that has triggered this apparent baulking at the requisite deposit hurdle.
It's a little early to judge an entire generation on one overly-zealous selling season, but home ownership rates have been in decline since the mid-1990s with the most substantive drop being among households in the 25-44 age bracket.
Any such demographic shift will be a fillip to investors who not doubt have some anxiety over issues of supply and demand especially in the apartment rental market. they'd be watching the recent rather contradictory rental vacancy statistics with for instance SQM having Sydney rental vacancies increasing while the REINSW had them reducing.
It's also a little exaggerated to suggest as Robert Gottliebsen, the Business Spectator columnist did, that the home ownership dream was fading, at least in the inner city,  "increasingly replaced with a tenant relationship with Chinese landlords." Lastly John Symond warns that first home buyers, who now make up about 13% of all loans written, should avoid the temptation of going after very low deposit loans as they can lead to financial stress.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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A first home buyer generation with other priorities? 

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Last week’s announcement by Holden to shut down operations in Australia in 2017, although I suspect they will move on well before this date, should not come as a great surprise. Back in the 1960’s the manufacturing industry in Australia employed 26% of the workforce and today it sits at just 8% and getting smaller. Ford and Mitsubishi have already announced previously that they too would be leaving our shore which now leaves Toyota as the sole motor vehicle manufacturer in Australia. Over the years I have read many speeches where a common theme is that by 2020 Australia will cease to have a manufacturing industry.
When I look at the 2012 Australian Securities and Investment Commission’s Annual Report the number of businesses registered reached 1.9 million, which happens to be a new Australian record, but the number of businesses entering external administration is also at the highest level since the Global Financial Crisis. The federal government was never expected to provide financial assistance for these ailing companies so why annually prop up the ailing motor vehicle industry? It no longer makes sense – it’s time to move on. Hence: <a title="The failing auto industry gets a final reality check." href="https://www.businessspectator.com.au/article/2013/12/11/automotive/failing-auto-industry-gets-final-reality-check" target="_blank">The failing auto industry gets a final reality check.</a>
Putting all the politics aside history shows with Australian motor vehicle closures: 1992 – Nissan – Keating, 2008 – Mitsubishi – Rudd, 2013 – Ford – Gillard and 2013 – Holden – Abbott.
<a title="Labour pains add to the RBA’s challenges" href="https://www.businessspectator.com.au/article/2013/12/12/economy/labour-pains-add-rbas-challenges" target="_blank">Labour pains add to the RBA’s challenges</a> with the Australian Bureau of Statistics (ABS) announcing yesterday that the unemployment rate rose to 5.8% in November, from 5.7% in October. The man with the toughest assignment is none other than Glenn Stevens our head teller at the Reserve Bank of Australia (RBA) who warned <a title="Stevens warns against hubris " href="https://online.wsj.com/news/articles/SB10001424052702303330204579245372909974900" target="_blank">against hubris; </a>“We are building up this myth of 22 years uninterrupted growth. We shouldn’t do that – sooner or later we’ll have another downturn.”
What remains to be seen is exactly what lessons have been learnt from the GFC.
As 2013 comes to a close it’s always interesting to look back in reflection and let’s look at interest rates which I might add Macquarie Bank called it nearly right saying they would get to 2.00% at the beginning of the year. I predicted they would actually go up so I was completely wrong although Macquarie Bank did predict 2.00% so they were half right. In 2014, at some stage I predict the cash rate will fall to 2.00% as the RBA tries to get its monetary policy back firmly on the front foot.
<img class="aligncenter size-full wp-image-8372" alt="4-12-2013 12-58-17 PM" src="https://www.rwm.com.au/files/2013/12/4-12-2013-12-58-17-PM.jpg" width="470" height="345" style="margin-top: 0px; margin-bottom: 0px; padding: 0px; outline-width: 0px; font-weight: inherit; font-style: inherit; font-family: inherit; max-width: 100%;">
At RWM our December quarter turned out to be an all-time record which has us clearly of the opinion that the local real estate market will kick-off very strongly in February 2014. Again, the market is easily measured by the number of properties on the market which for the better part of 2013 saw record low numbers of properties on the market.
Interesting observation in 2013 was that we really started to see the Chinese buyers making serious inroads into the Mosman markets especially in the house sector. <a title="Chinese buyers tower over Australian real estate" href="https://www.businessspectator.com.au/article/2013/12/6/china/chinese-buyers-tower-over-australian-real-estate" target="_blank">Chinese buyers tower over Australian real estate</a> – Where China spends its vast US$3.7 trillion foreign reserves is going to dominate asset prices and developments around the world. Right now apartments in Sydney and Melbourne are in favour with the Chinese.
The number of houses keeps diminishing with just 88 houses for sale in Mosman, Cremorne and Neutral Bay which in itself would be another record.
Wishing you a Merry Christmas and a safe and prosperous New Year.
 
<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
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robertsimeon-hRNTwJyXkQ

The Sydney market will kick-off very strongly in early 2014

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The Coalition looks set to abandon its target to return the federal budget to surplus within four years, as it hits 100 days in power.
Tomorrow, the federal government will release its Mid-Year Economic and Fiscal Outlook, ahead of which Prime Minister Tony Abbott has suggested to media that achieving budget surplus by 2017 will be unrealistic.
Despite pre-election talk of returning the budget to surplus, Abbott appeared to back-pedal on timeframes, as reported in The Australian Financial Review.
“We said we would return the budget back to surplus at least as quickly as Labor had proposed. What we are discovering the more we dive deeply into the budget is the extent of Labor’s fiscal disaster,” he said.
The forecast deficit could hit more than $40 billion, The Age reported.
He told radio that tomorrow’s fiscal outlook would reflect the management of the previous Labor budget.
"Next year's budget will put us back on a path [towards] a sustainable surplus," Abbott said.
''We are purposefully, carefully and methodically putting in place policies to help families by reducing their cost-of-living pressures, improving job security, encouraging small business and delivering better services,'' Abbott said, as reported in The Age.
Council of Small Business of Australia chief executive Peter Strong told SmartCompany he was not concerned about a surplus delay as it was the “sensible and proper thing to do”.
“Internationally we don’t have the same debt as other countries, and we dealt well with the GFC, so we don’t want to achieve a surplus for the sake of it,” he says.
“It is important to keep the balance and to keep up the standard of government services.”
Strong was more disappointed about cuts to the <a target="_blank" href="https://www.smartcompany.com.au/legal/33371-coalition-to-scrap-instant-asset-tax-write-off-and-loss-carry-back-measures">loss carry-back tax</a> and the instant asset tax write off, which he says will have a greater impact on small business.
He says the government should find alternative ways to fill the financial hole, such as taxing digital purchases online including music and eBooks, and ensuring that major businesses do not dodge taxes.
A spokesperson for the Business Council of Australia said they would not speculate on tomorrow’s findings, but would comment after the official release.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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100 days in, Abbott’s about face on budget surplus stirs up industry groups

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Villa Igiea, best remembered as the long-time Vaucluse home of the late TNT transport tycoon Sir Peter Abeles and his late widow, Lady (Kitty) Abeles, was the surprise choice as the Sydney base of Hollywood star Angelina Jolie and her six children, with Brad Pitt also flying in to spend time with the family. Jolie is here in Australia to shoot the World War II drama Unbroken over three or so months.
Our commentators Jonathan Chancellor and Margie Blok differ on whether the Jolie-Pitts were correct in selecting Vaucluse's Villa Igiea as their Sydney base?
HE SAID: YES<img src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" width="150" height="225" style="float: right;">
Indeed Angelina was quite right, for she gets a magnificent European style villa with picture perfect postcard views gunbarreling across the harbour to the Harbour Bridge and Opera House. It is one of the most delightful family homes I've been inside.
Inspired by a grand 1908 villa in Palermo, Sicily, Villa Igiea dates back to the 1920s when it was built by the retailing Grace family to a design by Neville Hampson, the architect who designed Boomerang, the grand Spanish Mission style harbourfront mansion at Elizabeth Bay.
But Villa Igiea was built with its then Vaucluse Road, Vaucluse address in the Riviera Liberty style, featuring strong Italianate art nouveau influences before getting a quick refreshing update during the McWilliam family’s ownership during the early 2000s and then under the current Burt family ownership a total contemporary refurbishment worthy of a Vogue spread. (pictured below).
{yoogallery src=[images/stories/2013/12/17/vau]}
The imposing mansion was bought in 1970 by Sir Peter Abeles who paid $450,000 for the Queens Avenue property. It was known then as the Aegean Villa, sold by meat exporter and onetime Hellenic Club president, Steve Varvaressos, and described by my early 1980s SMH property editor predecessor John Rich as among the best houses in Sydney.
And during the next three decades, the five-bedroom, three storey white-washed sandstone residence, with its panoramic Harbour Bridge views, was often host to royalty and prime ministers.
After Sir Peter Abeles died in mid-1999, his widow, Lady (Kitty) Abeles, put a $20 million asking price on the property, which I recall briefly attracted potential buying interest from then Hollywood royalty, the actors Tom Cruise and Nicole Kidman, before their separation.
Rightly billed as one of Australia's most impressive properties, Villa Igiea stands in 2,160 square metre grounds high above Hermit Bay. There's also the additional adjacent 800 square metres holding.
All set behind remote-controlled gates on the Queens Avenue cul-de-sac, the house is surrounded by balustraded terraces and sprawling manicured gardens with pool, along with underground garaging installed during its recent works project.
It was Vaucluse’s priciest sale when in 2005 Villa Igiea sold to Wayne Burt, a London-based entrepreneurial expat, for close to $17.3 million. Burt, who spent $4.9 million on the neighbouring house in 2009, has extensive international experiences in investment banking in Sydney, London and Monaco including some years at Macquarie Bank, Deutsche Bank and Bain Capital.
The price well and truly beat the previous suburb record of a Coolong Road waterfront mansion sold by retired bookmaker Bob Bland for $14,725,000 in 2002 to the Walton clan who engaged Luigi Rosselli to design a new house which was briefly rented by Leonardo di Caprio when he was filming the Great Gastby in 2012.
People like Vaucluse for its harbourfront beaches and parklands at Nielsen Park and Parsley Bay. It also has easy access to the harbour and the walking tracks on The Hermitage or near Macquarie Lighthouse.
A prestigious suburb with large houses, many with striking harbour views, Vaucluse attracts families for its leafy environs, relaxed lifestyle and close proximity to private schools. Easy access to parks, playgrounds and beaches suited to small children are the motivating factors for families moving to the area – including the Jolie-Pitts.
Of course Point Piper's Altona ruled the rental roost until its $52 million sale earlier this year. With Villa Igiea new to the prestige executive rental pool, its rental price remains undisclosed, disallowing any price comparison.
 
<img src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" width="150" height="225" style="float: left;">SHE SAID: NO
I think Barford, the seven-bedroom Georgian style mansion at Bellevue Hill (pictured below) would have been a better choice for the Hollywood power couple for it is exceptionally private estate which could be especially handy for celebrity renters when pesky paparazzi are stalking.
As well as being hidden from street view, Barford has two entrances (one on Victoria Road and another on Rupertswood Avenue), so comings and goings in cars with dark-tinted windows would ensure a degree of privacy as well as safety.
In my view, celebrity renters are better off choosing Bellevue Hill over Vaucluse, for Bellevue Hill is just four kilometres from the city, as well as being very close to Double Bay, Bondi Junction and the harbour.
{yoogallery src=[images/stories/2013/12/11/bell]}
Sydneysiders would be aware that Vaucluse property tends to go in and out of fashion, although expats may not understand that Vaucluse’s travel distance puts the suburb out of favour with many locals.
One of Bellevue Hill’s most prestigious properties, the Barford estate, was promoted for lease only this week at a weekly rental of $25,000 through Run Property agent, Kyara Coakes for its Hawaiian-based owner, Ian Joye.
But Barford has long been a preferred rental property for celebrities seeking a luxury mansion with privacy.
In 2001 actor Will Smith led the march to lease Barford. He reportedly paid $4,000 a week during the time he was here to support his wife Jada Pinkett-Smith who was in Sydney to work on the movie, Matrix 2.
Altona was his harbourfront preference, but the pop star Bono has been among the more recent renters – in 2010 he reputedly paid the advertised price of $40,000 a week for the Bellevue Hill property.
Run Property’s internet advertisements claim Barford “as one of the country's most significant private holdings and one of the finest homes in Australia”.
The ads state Barford is "the best Sydney has to offer in location and timeless design. It offers sweeping views across Rose Bay, Sydney Harbour and beyond the Heads of Manly, yet affords total privacy. There is no opportunity for paparazzi to moor outside Barford.”
Named after a village beside the River Leam in Warwickshire, England, Barford was built in 1931 for media tycoon Sir Warwick Fairfax who resided there until the late 1960s when he sold it to former Melbourne car salesman, Emmanuel Margolin.
In 1980 Margolin sold Barford for around $1.5 million to property traders, Maurice Bernhardt (a former Double Bay estate agent) and Max Franks.
Not long after Bernhardt and Franks sold Barford to Barry and Wendy Loiterton who operated the tourist-marketing business, Leisuremark.
Of course, in 1985, Barford’s magnificent garden was the setting for a French champagne and lobster feast attended by a 500-strong glitterari set to celebrate the wedding of socialite Glen-Marie North to Liberal Party stalwart Bob Frost.
I recall Barford’s last sale in late 1986 for $9,875,000 to the entrepreneurial accountant Ian Joye. This deal was headline news for it was near enough Sydney’s first $10 million sale with Jonathan breaking the story in January 1987 in his much remembered back page Today's People, SMH column.
Ian Joye certainly knows select properties.
Properties on the northern side of Sydney rarely attract celebrity renters or command high prices – with the exception of Palm Beach’s Kalua, a 5,500 square metre landmark beachfront estate which Ian Joye sold for $22 million in 2012.
Only popular during the summer season, Kalua was rented over the years by the likes of Elle Macpherson, Nicole Kidman, John Cleese and Rupert Murdoch reputedly at $25,000 or so a week, although Palm Beach rentals tend to ebb like high and low tides.
Elsewhere across Sydney I recall then record rentals including $16,000 a week for Musgrave House in Mosman rented by Diana Ross during her 1989 tour and $25,000 a week paid by singer Paul McCartney in 1993 for a Mosman, waterfront on Wyargine Point.
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