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

<html><body>
The capacity of international social media to enhance real estate agents’ property sales successes cannot be overestimated. It’s a resource of infinite reach and potential - and it carries details of their offerings right into willing buyers’ homes.
Coupled with this, there are almost unlimited numbers of potential buyers out there – often wealthy Chinese – who want to see and read about property of all descriptions and for almost any price.
And one country in which they are especially interested in buying is Australia.
To make social media work well, it helps to understand exactly how it fits into the online marketing process, which is where a new e-book: ‘7 Ways to Improve your International Social Media Marketing’, can help.
The author is Andrew Taylor, co-CEO of Juwai.com, who has 10 years experience in marketing and media in print, online, television and radio brands across Australasia and Pan-Asia. He was a company director and greater China country manager for REA Group, and led its acquisition and growth strategy for Asia.
As co-founder - with Sue Jong - and co-CEO sales and marketing at Juwai.com since 2010, Taylor devotes his time to market research and developing the business. He introduced world first research on Chinese property buying behaviour, the results of which went in the Juwai.com messaging and branding.
The depth of his China research, consumer market insight and property industry expertise, is now channelled into the valuable intelligence provided to customers looking to reach Chinese property buyers.
Jong is is Juwai.com’s international marketing manager, driving marketing and branding efforts and bringing relevant research and insights on Chinese buyers to customers worldwide.
Central to sales success is the “conversion process”, Taylor says.
“That’s because it’s how you ‘convert’ a random web surfer into a member of your mailing list or an out-and-out lead.
“Let’s start on the outside and work our way in. Let’s say a mainland Chinese woman named Chu Lam is considering buying an investment property. She wants something in the $5 to $10 million range, within an hour of an international airport and with oceanfront views.
“Lam hits Weibo, the Chinese version of Twitter, and searches for, ‘luxury beach property’. Because you have been active on Weibo, her search results include a couple of your recent waterfront listings. There is also a link to our e-book on your website entitled, ‘5 Tips for Choosing a Beachfront Property’. 
 
“As a good manager, you had juwai.com translate and localise both your website and your e-book into Chinese. Lam submits her email address to you on the registration form to receive the e-book. Now you have her email address. And, you know she is interested in beach-front property.
“You follow up with an email the next day. You offer to talk her through the recent beachfront sales in your area, so she can get  a better idea of the market. And, you continue to build the relationship from there – the same way you would with any lead.’’
That is how social media fits into the online ‘conversion’ process – or the process of converting inquiries to sales.
Language barriers are overcome by:
<ol>
<li>The agent or the buyer asking the Juwai.com multi-lingual call centre and account team for free help. The staff will translate communications, answer questions and, in other ways, help the agent build a relationship with the buyer. Staff can even make a phone call for the agent if he/she is having trouble reaching a number in China. Juwai.com claims to be the only real estate portal in the world with a call centre.</li>
<li>The company says many Chinese buyers will have the communications issue in mind when they start looking for property in Australia. They may have a colleague or a friend or family member who speaks English, and they often ask them to help. “For example, an agent in Mosman last year sold two plots of land to a Chinese buyer who didn’t speak English. The buyer sent a Sydney-based, English-speaking colleague to check it out before he flew into town to buy it,’’ Taylor said.</li>
</ol>
<ol start="1"></ol>
<ol></ol>
In the e-book the introductory content is for real estate marketers who are relatively new to the subject. This content includes step-by-step instructions on how to get started with this aspect of marketing and learn its fundamentals. “After reading it, they will be able to execute basic marketing tactics related to working with Chinese buyers,’’ Taylor says.
 
The intermediate content is for those familiar with the subject but who have only basic experience in executing strategies and tactics on the topic. This content covers the fundamentals and moves on to more complex advice and examples. After reading it, agents are expected to feel comfortable with this aspect of marketing to Chinese buyers.
 
The advanced content is for real estate marketers who are, or want to become, experts. “We walk you through advanced features and strategies so you can develop full mastery,’’ Taylor says.
“After reading it, you will feel ready not only to execute strategies and tactics for yourself, but also to teach others and even lead entire teams, businesses or networks to success with Chinese buyers.’’
Taylor says social media lets sellers connect with potential real estate buyers, wherever in the world they are located.
“Once you have a connection with these buyers, you can pull them forward into your marketing process, bringing them to your website, or getting them to contact you. Buyers who find and contact you directly via social media tend to be closer to a purchase than other prospects.’’
He says international buyers make up an increasingly important share of real estate transactions. And it’s not just in the traditional cities like New York, London and Sydney. “Wei Gu, of the Wall Street Journal, reports that Chinese and other international buyers are ‘increasingly snapping up properties in second-tier cities with better prices and growth potential’.
“They are going beyond the cities that have long attracted international buyers and landing in regional destinations.’’
In Australia, the cities and towns with the fast-growing Chinese buyer interest this year has included Perth, Darwin, Mandurah and Geelong — according to user data on Juwai.com. They aren’t the top areas for Chinese buyers, but they are the fastest growing, Taylor says.
“Chinese buyers don’t account for the majority of transactions. But, they account for a significant number, and they tend to be more profitable and spend more per transaction than other buyers. Chinese buyers tend to spend more than twice the median house price in a given market, according to data from the US.’’
So, you can limit yourself to the low-spending locals, or, you can use social media to attract the big-spending international buyers. If you choose the latter, follow Juwai.com’s seven-step process and you will be well on your way to international social media success.
Some tips:
Pick your target countries: 
Pick the obvious countries, either the places that are sending the most buyers to your market, or the ones where you have a cultural or linguistic advantage. If you live in Miami and speak Portuguese, it probably makes sense to include buyers from Brazil in your list of targets.
Pick your social networks: You might use Facebook to keep up with your friends, because most of them are on it. But to reach sales prospects, you have to go to the social networks they prefer.
You might be surprised how limited the international reach of networks like Facebook and Twitter are in other countries, Taylor says. While Facebook has 50% penetration in the United States, the world average for Facebook penetration is only 12.1%.
While the Middle East and Asia have a big share of wealthy potential buyers,  Facebook’s penetration is only 5% and 9%, respectively. In Russia, social network VK has 100 million active users — more than Facebook in that country. In China, QZone has 603 million users, according to China Internet Watch. 
 Set your goals:
Some local agents are content to use social media as nothing more than another customer service platform. That is, they use it as they would the phone or email, to communicate with prospects with whom they already have some sort of relationship. Others are more ambitious. They use social media to bring more traffic to their website or to give their brand more exposure, especially in new markets. 
Whatever your goals, having a coordinated, planned approach will make it easier to operate on multiple social networks, and even in multiple languages.
Decide ahead of time how you want to use social media, and choose your tactics accordingly.
Graphic: Chinese prefer their own social media networks
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/11/29/laptop-mediacomparison-AUS-big.jpg" title="Click to enlarge"><img src="/images/stories/2013/11/29/laptop-mediacomparison-AUS-small.jpg"></a>
Choose your languages.
Only about 1% of Chinese speak English, and nine out of 10 Europeans prefer to surf the web in their native tongue. Get the picture? When deciding which languages to operate in, focus on those used by the largest numbers of your prospects. 
 Decide how many accounts you really need. 
You might be tempted to set up a Facebook page for every language in which you’d like to work with buyers. That would be a mistake. You can achieve the same results with just a single page on Facebook using its post-targeting tool. 
Access it at the bottom of the compose box, just next to the ‘post’ button. 
Let’s say you put up an item in Russian. Use the targeting tool to select Russian speakers, or even residents of individual Russian cities. Other social networks have similar tools.
Once you have created your new post, click on the word ‘public’ in the blue box, at that bottom of the post. Select “Location / Language” and go on to target the post to your preferred populations.
Create a destination on your website for each language. 
If your goal is to acquire new customers via social media, ultimately you will want them to visit your website. Post all of your new content for each segment of buyers on your site first. Then link back to it from your social media posts.
Once they are on your website, you will have more opportunities to capture their contact information, show them listings and persuade them to work with you. This is an extra step compared to simply posting a link in your Twitter feed to a news article, without first posting that news article on your own website.
It’s worth it. You’ll generate more direct traffic to your site. If you do a good job of converting on your site, you will then generate more leads and – ultimately– commission revenue.
 
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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staylor-63KgDrKwoY

Securing a Chinese buyer for your property

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Any Australian property built prior to 1980 has an increased chance that some form of asbestos material has been used in its construction. This can be a major concern for any investment property owner, particularly when faced with the potential health risks, and if necessary, the cost of asbestos removal.
If left undamaged asbestos does not usually pose a health risk; however, when asbestos has been disturbed or damaged, the fibres within it become a health concern to anyone exposed.
Due to the serious health risks associated with asbestos, it is now law in most states and territories across Australia that every commercial building constructed prior to December 31, 2003 has an asbestos register and an asbestos management plan. It is the responsibility of the person with control or management of the property to ensure that this register and management plan is current.
An asbestos register lists all identified and assumed asbestos within a building. The asbestos management plan outlines the presence of asbestos as well as the safe work procedures, control measures and emergency procedures for a building containing any identified asbestos. This management plan must be kept up-to-date and reviewed at least once every five years.
In a situation where asbestos becomes hazardous, it may need to be removed. For a property owner, the cost of its removal can be a large burden. However, under Section 40-755 (Environmental Protection Act) of the Income Tax Assessment Act, a property owner is able to claim a deduction for the removal of asbestos from their income producing property if the asbestos poses a health risk.
The Australian Taxation Office allows the property owner to deduct the expenditure incurred for the main purpose of carrying out environmental protection activities. The removal of damaged asbestos from a residential investment property or commercial building is classified as an environmental protection activity as its sole purpose is to prevent contamination or pollution of a property.
When completing any improvement to an income producing property, including asbestos removal, make sure you contact a specialist quantity surveyor so that the remaining depreciable value of items being removed is captured. A post-work depreciation schedule should also be completed as any replaced items and structural improvements are eligible to be claimed and could mean a greater cash return from your investment property.

<hr>
Bradley Beer is the managing director of <a target="_blank" href="https://www.bmtqs.com.au/">BMT Tax Depreciation</a>, a leading quantity surveying firm specialising in the preparation of tax depreciation schedules for property investors. BMT also work with accountants, financial planners, developers and property managers to help to maximise the depreciation deductions available for property investors and commercial property owners.
 
 
 
  
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bbeer-RnXpp32fnV

Property investors can reduce the risks and costs of asbestos removal

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Declining commodity prices and high production costs are hampering investment in the mining industry, with new figures revealing big decreases in planned projects.
The value of projects in the “publicly announced” phase has fallen by between $12 billion and $19 billion since April, according to the <a target="_blank" href="https://www.bree.gov.au/documents/publications/remp/REMP-2013-10.pdf">Bureau of Resources and Energy Economics October update</a>. The number of projects at the “feasibility study” phase fell by 12 to 162, down $24 billion.
The only bright spot in the report was an increase in the number of projects completed. Wayne Calder, the deputy executive director of the Bureau, said this trend meant Australia was “seeing a transition from the investment phase of the resources boom to the production phase”.<img style="font-size: 0.8em;" width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/36312/width668/8wkkgq5g-1385546490.jpg">
Number and nominal value of projects that have been committed to. Bureau of Resources and Energy Economics
Five projects worth $1.7 billion received approval for construction between May and October this year, the lowest number in over a decade. The value of projects under construction or preparing for construction fell to $240 billion, down $23 billion from April.
But the falls aren’t a big surprise, according to Vlado Vivoda, a research fellow at the Griffith Asia Institute, Griffith University. “A lot has already been committed and there is a lot of competition internationally particularly in [liquified natural gas],” he said.
“I think committing any more would be very risky particularly given the costs in Australia of exploring and producing resources, which are higher than in other countries.”
The overall decline in projects was spread unevenly across different resources and across all phases.
Petroleum exploration expenditure, for instance, increased by 47% compared to the previous year, to $4.9 billion, the highest spend on record. But coal exploration declined by 36% to $557 million for the year.<a style="font-size: 0.8em;" href="https://c479107.ssl.cf2.rackcdn.com/files/36311/area14mp/3q3thprt-1385546273.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/36311/width668/3q3thprt-1385546273.jpg"></a>
<a style="font-size: 0.8em;" href="https://c479107.ssl.cf2.rackcdn.com/files/36311/area14mp/3q3thprt-1385546273.jpg"></a>Locations of projects at the “committed stage”, where construction has started or is about to commence. Bureau of Resources and Energy Economics
Dr Vivoda said cancellations of some large projects were responsible for a large part of the overall decline. He pointed to the <a target="_blank" href="https://www.perthnow.com.au/news/western-australia/woodside-will-not-go-ahead-with-an-lng-processing-plant-at-james-price-point/story-fnhocxo3-1226618536271">announcement that Woodside Petroleum would go back to the drawing board</a> for its $45 billion Browse Point LNG project in WA.
However “mega projects” continued to represent the largest proportion of investment in resource projects, increasing to 82% from 34% five years ago.
Richard Fulford, a senior lecturer at Edith Cowan School of Business, said falling commodity prices meant mining companies did not want to commit further than necessary.
“Commodity prices have either been constant or fallen over the previous five years,” he said. “The price of LNG in US dollars is now only 33% of what it was in June 2008. And thermal coal prices are similar to today to what they were five years ago.”
Dr Fulford blamed increased overseas investment in resources for lower commodity prices. “It’s mainly due to other nations, such as Brazil, Qatar, Indonesia and South Africa, investing heavily in the resource sector,” he said.
An increase in shale gas production in the US was also contributing to lower prices, according to Dr Vivoda.
“What have we’ve seen is essentially a lot of potential LNG coming into the Asian market in particular,” he said. “And we also have a drop in domestic demand for coal in America.”
A focus on productivity could be part of the answer to high costs, according to Jeff Bennett, a professor of environmental management at ANU’s Crawford School of Public Policy. “The labour force in mining is very productive because of course the sector is very capital intensive. One person controls a lot of machinery.”
“But of the pipelines of new projects coming through is thinning out, there will be less opportunity [for workers],” he said. “We saw the other day that Rio Tinto is restricting its <a target="_blank" href="https://www.smh.com.au/business/rio-tinto-shuts-off-gas-plans-for-its-gove-refinery-20131126-2y842">Gove operations</a> with impacts on indigenous employment.”
“Of course this is something we need to be very mindful of, particularly in regional areas where employment is often very hard to find,” Professor Bennett said.
 
<hr>
 
This article was originally published at <a target="_blank" href="https://theconversation.com">The Conversation</a>. Read the <a target="_blank" href="https://theconversation.com/mining-construction-takes-big-hit-as-sector-moves-to-production-20854">original article</a>.
 
 
<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/20854/count.gif" width="1">
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jake-cSmGT7VXVf

Mining boom moves to production stage as new project constructions fall

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The Australian Bureau of Statistics went to a lot of trouble this week to tell us what they think the population will be in 2075. If you’re bored enough to be interested, they think the national population will double by then.
And as I scanned all the breathless coverage from press-release-recycling journalists, I wondered: why did they bother?
What is the point is speculating about the population 62 years from now? Does anyone give a hoot? Many of us won’t even be around to check the accuracy of the forecasts.
What chance that the ABS boffins will be even remotely close to right about this? They’re unable to accurately estimate the population from one year to the next - and have to make adjustments to their guesstimates every five years when the Census reveals the true figures.
Given that a big portion of the projected growth is based on speculation about migrant numbers, do the ABS people really think they know the direction of federal government policy in 2020, or 2030 or 2050?
Do their crystal balls tell them about medical advances 40 years from now, which might impact on life expectancy? Have they considered that social attitudes about starting a family might undergo major shifts between now and 2075.
Western Australia media got quite excited because this pointless piece of daydreaming concluded that Perth will be bigger than Brisbane in 2028. Why would they bother reporting this fantasy? A lot can change in 15 years.
Anyone thinking of basing a business plan or an investment decision on this kind of thought-bubbling should be aware that you don’t get your money back if the forecast is wrong.
Consider this: in the early 1970s, it was projected by federal government bean-counters that the population of Albury-Wodonga would be 300,000 by now. It’s actually 86,000 today. Oops.
The politicians and public servants who made those brave predictions 40 years ago didn’t take into account that a future change of government would result in the scrapping of the social engineering plans of the Whitlam years.
Yet the ABS forecasters today are confident enough in their abilities to state that the Tasmanian population will start declining exactly 34 years from now.
The whole exercise is a waste of time and public money. We know from experience that economists and bureaucrats cannot accurately predict what will happen next year, much less half a century from now.
Population growth is, of course, an issue of consideration for property investors. I do believe, however, that it is over-rated in its importance.
Some “clubs” which claim to do lots of research to serve their investor members have a simplistic follow-the-population-growth philosophy. Buy real estate where high population growth means high demand for dwellings.
The flaw in this flimsy theory is that they have considered demand but forgotten supply.
Experience shows us that high population growth can be the worst thing to happen to a property market. Developers pile in and invariably build too much new supply. We’ve seen that happen repeatedly in Gold Coast City and also recently in the Wyndham City area of Melbourne, which has challenged the Gold Coast as the national population growth leader, and in Gladstone in Queensland, where dwelling demand created by massive gas plants has been suffocated by an excess of new supply.
Around 2005 and 2006, property investors flocked to buy in Mandurah south of Perth because that region was one of the nation’s population growth stars. Most of them would regret their purchases as too much supply and an evaporation of demand led to five to six years of price decline.
Steady growth in resident numbers is a good thing for property markets. Runaway growth can stifle prospects for increases in values.
 
<hr>
 Terry Ryder is the founder of <a style="font-size: 14px;" rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and you can contact him via <a target="_blank" href="https://mailto:%20ryder@hotspotting.com.au">email</a> or on <a style="font-size: 14px;" target="_blank" href="https://twitter.com/hotspotting">Twitter</a>.
 
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terryryder-YECXbqmri2

Shot in the dark: Predictions of future population numbers are a waste of time and money

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Tender prices and construction industry confidence are on the rise across the eastern seaboard and in Perth, according to national quantity surveying firm WT Partnership. And, it says, most markets are “showing significant improvement in sentiment and activity over the last three months.’’ 
The firm’s quarterly market report says the change in federal government in September appears to have renewed optimism in the construction sector in most states. “Although both federal and state government spending remains tight, private investment in both building and infrastructure looks set to take up capacity in these sectors,” it says. 
WT Partnership expects tendering nationally to remain tight for the next six-12 months as contractors look to fill their order books into 2014. “The construction market appears to have turned with consultants and contractors expecting improved activity in 2014.”
In most states, WT Partnership offices are finding that large residential projects, especially at the lower end in investment grade and first homebuyer products, are boosting the overall market. This renewed activity is not likely to impact upon residential construction costs overall, however, it is expected that in some trades, labour costs will increase as skill shortages kick in.
Subject to the strength or decline in value of the dollar, WT Partnership is expecting to see national average tender price escalation in 2014 trending below 2.0% with an increase to 2.5% for 2015 and 2016.  Individual state predictions vary widely.  
Highlights from the report include:
New South Wales
“Across NSW, the building industry shows signs of improvement, with housing construction increasing for the first time in three years. Sydney CBD rental markets and residential sales volumes have continued to increase in the quarter,” said Nick Deeks, WT Partnership’s national managing director. He says the planned $30 billion of infrastructure to be completed over the next seven years, supported by the state and federal governments, is buoying sentiment and supporting costs.  Tendering remains competitive.  
“We are projecting average cost escalation of 1.25% for 2013, 3.0% for 2014 and 4.0% for 2015 and 2016.”
Queensland
“Tender prices are on the move in south-east Queensland with the recent uplift in residential, commercial and retail construction activity. It is likely that the extremely competitive pricing by major builders over recent years will ease and we will see escalation rising from the current 2.0% to 4%-plus per annum in 2015-16,” said Jason Thornley, Queensland director, WT Partnership. 
Victoria
Confidence in the Victorian construction sector continues to improve as overseas investment in major residential projects continues to boost the market. “The state government’s commitment to a number of major infrastructure projects is improving confidence as engineers and contractors position themselves for demand,” said James Ford, Victorian director, WT Partnership.   
Adelaide
“In the past 24 months Adelaide has had one of the deepest and most rapid falls in construction pricing throughout the country. During last year, tender return prices fell by as much as 20%,” writes Sam Paddick, South Australia director, WT Partnership.  There are some signs that developers are starting to respond to these low levels of pricing, with retail the first to move forward with projects, he said. 
Western Australia
“The continued slowdown in the resources sector in Western Australia, coupled with the recent credit rating downgrade of the state’s finances by Standard and Poor’s, has eroded market confidence,” writes Scott Parrott, WA director, WT Partnership.  ‘’Despite this weakness we still expect strong activity in various sectors over the coming year. Retail investment appears to have gained momentum in WA, with a considerable amount of work being priced or in the pipeline.’’ 
Australian Capital Territory
“In the ACT, following the recent change of government, there is concern over economic conditions and confidence remains suppressed,” writes James Osenton, ACT director, WT Partnership. The contractor environment continues to be lacklustre. 
Tasmania
The Tasmanian economy continues to struggle in the face of dramatic cuts to GST revenue, high unemployment and low population growth, however, recent state and federal government funding announcements have buoyed sentiment in the construction sector.  Tender margins are still extremely tight.
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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Construction industry showing "significant improvement" in sentiment and activity since federal election

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The Australian Bureau of Statistics (ABS) released national population projections earlier this week.  The data looks at the projected growth in the national population from 2012 through to 2101 and the data provides a fascinating insight into the potential future of Australia over the coming years and decades.
The projections look at three different scenarios which can be read about <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/3222.0Main%20Features52012%20(base)%20to%202101?opendocument&amp;tabname=Summary&amp;prodno=3222.0&amp;issue=2012%20(base)%20to%202101&amp;num=&amp;view=" target="_blank">here</a>.  For the purposes of this post we are utilising ‘Series B’ or the medium level projections.  Based on this series, Australia’s population was estimated to be 22,721,995 persons in 2012, by 2101 the population is projected to be 136% higher at 53,564,333 persons.  Under this scenario we would see the national population from 2012 having doubled by 2071.  Keep in mind Australia was first settled by Europeans in 1788 so it took 224 years to get to the 2012 population and it projected to double in just 59 years.
Projections are also provided at a state and capital city level from 2012 through to 2061, at which time the national population is projected to be 41,513,375.
<img width="470" height="234" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/state-by-state.jpg" alt="state by state" class="aligncenter size-full wp-image-2741">
The above table details the estimated population as at June 2012 and the percentage of the national population across each state and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.  At a state level, the proportion of the national population is projected to fall in New South Wales, South Australia, Tasmania and Northern Territory.  The proportion is projected to remain static in Victoria and rise across Queensland, Western Australia and the Australian Capital Territory.  Western Australia (2.0%), Queensland (1.5%) and the Australian Capital Territory (1.4%) are projected to record the greatest average annual rate of population growth while Tasmania (0.2%), South Australia (0.7%) and New South Wales (0.9%) are projected to record the lowest growth rate.
Of course these are just population projections and are no way set in stone however, it does seem inevitable that the population of the country will expand substantially (even based on the low series of assumptions) over time.  The big question remains where and how will we house all of these additional citizens? Based on the data provided in the release it seems that a significant majority of the population will continue to live within our capital cities.
<img width="470" height="205" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/cap-city-by-cap-city-580x253.jpg" alt="cap city by cap city" class="aligncenter size-large wp-image-2742">
The above table details the estimated population as at June 2012 and the percentage of each state’s population across each capital city and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.
There are quite a few interesting points to take from these long-term projections.  Firstly, by 2061 Sydney will no longer be the nation’s most populous city and Brisbane will no longer be the nation’s third most populous city.  Melbourne will overtake Sydney as the most populous city in 2053 and Perth will overtake Brisbane as the third most populous city in 2028.
The proportion of Australian’s living within a capital city is already quite high at 66.1% however, this is projected to increase to 73.4% by 2061.  Think about that, out of a projected population of 41.5 million, almost three out of every four Australians will live in a capital city.  If we focus on the four most populous capital cities, 57.3% of Australians currently live in Sydney, Melbourne, Brisbane or Perth.  Based on the population projections, by 2061 65.8% of the total national population will live in Sydney, Melbourne, Brisbane and Perth.
Should this scenario actually come to fruition it will create significant challenges for each of these cities.  Obviously housing is a challenge which immediately comes to mind, how and where these people can be housed and what it would mean for property values.  Over time the capital city areas do expand however, for a city such as Sydney that is surrounded by water and national parks the scope to expand is quite limited. No wonder the inner city areas are undergoing such rapid densification.
Elsewhere you can continue to grow the urban sprawl but there must be a consideration around how people travel around the city and commute to their jobs.  Transport infrastructure is typically already insufficient, without appropriate investment levels how much worse would it be by 2061?  Of course, for some, purchasing a home in a capital city is already out of reach; how do governments ensure that a greater number and proportion of capital city residents doesn’t just lead to further escalation of property values?
Of course these figures are in no way set in stone however, it does appear that the country’s population will continue to grow which will pose myriad challenges.  In my opinion the greatest concern is the projection of a greater centralisation of the population to our capital cities and more pointedly the four most populous cities. 
As mentioned, in each of these cities there are already affordability barriers for certain home buyer cohorts and investment in transport infrastructure has not been sufficient.  In my opinion we should be looking to a decentralisation of the population rather than encouraging more and more people to the capital city.  Not only do regional markets tend to have lower house values, in many instances they offer a superior lifestyle than that which is available within our major capital cities. 
The biggest challenge of course is employment in regional areas however, with the advent of high speed internet and major infrastructure projects such as the National Broadband Network (NBN) we will hopefully see the nature of work change with more telecommuting taking place and less focus on physically being located within an office. 
Alternatively, many businesses do not necessarily need to be located within a major capital city.  Perhaps governments could incentivise major businesses to locate their headquarters or major offices outside of Sydney, Melbourne, Brisbane or Perth.

<hr>
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
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How will Australia cope with the housing demands of a doubled population?

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Not much to report on the share markets: the Fed taper keeps getting deferred and US stocks remain in a significant uptrend.
There has been a lot of talk about shorting the market over the last few years due to the world ending - and it still might yet. There are a lot of debt-related issues in the world (both public and private) where the full pain of a long-term resolution has never fully been taken.
But you'd have done very well indeed just to hold the index - the Dow Jones Industrial Average is +27% year on year...and the returns since the middle of 2009 have been staggering.
The share market recovery has been less dramatic in Australia, in part due to a historically strong Aussie dollar which may have made our stock market less appealing to foreign investors.
Nevertheless, excellent returns for holder over the past half decade, particularly for those holding strong dividend-paying stocks.
You could have done well from shorting the market if you timed your entry and exit well, but that's a tough gig to get right for most average traders/investors.  As a general rule, for most people, there is a far greater chance of long-term success through owning quality income-producing assets.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xjo&amp;pi=Index&amp;ct=3&amp;tf=M5&amp;ovs=&amp;si=Code%20not%20supplied&amp;tima1=0&amp;tima2=0&amp;bi=2&amp;bima=0&amp;comt=index&amp;ds=xjo&amp;dovs=0&amp;ex=ASX&amp;ex2=ASX&amp;val=1&amp;stmp=20131127092914225" height="275">
Source: ASX
I keep reading articles about how, for various reasons, property in Sydney is not a good investment. Well, you can keep telling yourself that if you like and if it makes you feel better, but unfortunately, that's nowhere near being the case.
SQM produces an excellent <a target="_blank" href="https://www.sqmresearch.com.au/graph_median_weeks.php?region=nsw%3A%3ASydney&amp;type=c&amp;t=1">'vendor sentiment index'</a> based upon asking prices by property type and by capital city. It's one of my favourite reporting tools. Here is their key:
<a style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://3.bp.blogspot.com/-3OLWG4aNmhc/UpUjPkJIiTI/AAAAAAAAK8g/tkxEZL4vgyM/s1600/key.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://3.bp.blogspot.com/-3OLWG4aNmhc/UpUjPkJIiTI/AAAAAAAAK8g/tkxEZL4vgyM/s400/key.jpg" height="137" border="0"></a>
And here has what has happened to Sydney dwelling prices since the financial crisis, which is to say, sentiment has been very, very strong across all property types. And sentiment is continuing to get stronger, with SQM forecasting a boom in prices of 15-20% in 2014.
Vendor expectations are getting higher, and as anyone who has actually bought in the established Sydney market of late will know, there are stacks of buyers out there ready to meet them.
<a style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://4.bp.blogspot.com/-BneE8m7x4Ck/UpUjXszvRrI/AAAAAAAAK8o/M7-pc-LKFC0/s1600/Sydney+SQM.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://4.bp.blogspot.com/-BneE8m7x4Ck/UpUjXszvRrI/AAAAAAAAK8o/M7-pc-LKFC0/s400/Sydney+SQM.jpg" height="167" border="0"></a>
Source: SQM
If you think back to my posts on population growth, <a target="_blank" href="https://petewargent.blogspot.com.au/2013/11/whats-going-to-happen-to-australias">here</a> and <a target="_blank" href="https://petewargent.blogspot.com.au/2013/11/more-on-population-growth">here</a>, combined with an inherent under-supply in the harbour city and low interest rates, it's not hard to see why.
Sure, population growth in itself does not cause property prices to move higher, but in the supply-constrained desirable suburbs that is precisely the impact it is having.
Wondering whether Adelaide will start to pick up a bit now? You'd think it would have to sooner or later after a very uninspiring and under-performing five years, but at this stage, according to SQM's vendor sentiment index...no dice.
<a style="color: #253fff; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://3.bp.blogspot.com/-AGHPjKupxTI/UpUoKQ5zvcI/AAAAAAAAK84/swYEKC12f50/s1600/adelaide+sqm.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://3.bp.blogspot.com/-AGHPjKupxTI/UpUoKQ5zvcI/AAAAAAAAK84/swYEKC12f50/s400/adelaide+sqm.jpg" height="163" border="0"></a>
Source: SQM

<hr>
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
 
 
 
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The good (and the not-so-good) investments since the GFC

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The Commonwealth Property Group has terminated its exclusive takeover talks with the Dexus consortium, in the wake of the $3 billion GPT rival bid last week.  
The decision to end the "process agreement" was specifically due to Dexus and its partner the Canadian Pension Fund not matching the competing proposal from GPT within the specified period of time spelt out in the agreement. The decision allows GPT to start talks with the Commonwealth Property Fund (CPA). 
However, CPA management did say that the Dexus consortium "may undertake further due diligence on CPA, on a non-exclusive basis until 9 December."   
Last week, Credit Suisse analyst said it that it may be difficult for the Dexus consortium to match the competing bid offer.
GPT is offering $O.75325 in cash and 0.141 GPT security for every CPA unit. Based on GPT's closing price on 18 November, the offer values CPA units at $1.272.
The Dexus and Canadian Pension Fund offer is valued at $1.219 per unit. 
One reason Credit Suisse gave was that "if DXS were to match GPT’s offer by increasing the cash offer by 2.7¢ to 73.7¢, implying a total bid price of $1.24, this would see EPS accretion (FY15) reduce to ~1.3–1.8% as compared to the guidance of 2–2.5%". 
On that basis, net tangible asset dilution would increase from 1.9% to 2.7%, they said.  "As a result, we see limited scope for DXS-CPPIB to justify any further premium".
However, with Dexus already holding a key blocking stake of 14.9% in CPA, a likely end scenario is a break up of CPA's $3.8 billion property portfolio. Dexus has already said it won't be supporting the rival offer and GPT needs to reach a compulsory acquisition target of 90% before it can offload any of the CPA assets.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>     
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CPA terminates exclusive takeover talks with Dexus consortium

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A pronounced shortage of stock and heightened competition for property assets is forcing offshore investors into capital partnerships with local players to secure a foothold in the Australian property market.
The findings were revealed in new research from Cushman &amp; Wakefield which showed that since the end of the GFC, the total value of transactions recorded in the Sydney, Melbourne and Brisbane office markets had topped $10 billion in the 12 months to June 2013.
But despite that significant spike, the report pointed out that there had only been a limited number of direct property purchases.
Cushman &amp; Wakefield associate director of research and consultancy Peter Ainge attributed that shift to the increasing practice of capital partnerships.
“The proportion of capital partnerships to total sales has grown rapidly since the end of the GFC, with 46.4% of transaction volumes recorded in the Australian retail market and the eastern seaboard office markets in 2012 involving a capital partnership,” he said.
This year, the proportion of capital partnerships to total sales slipped back to just below 40%.
Cushman &amp; Wakefield estimates the weight of money from offshore buyers aimed at Australian commercial assets to be US$16.5 billion (AU$18.5 billion) as at September. Combined with the shortage of prime available stock, Ainge said “it is clear that offshore investors need to get creative to penetrate the domestic market.”
Sydney was where capital partnerships had been the most prominent, the report said. One notable partnership was the $1.2 billion privatisation of the Charter Hall Office REIT, which saw the grouping of the Government of Singapore Investment Corporation (GIC), PSP Investments from Canada (PSPIB) and Charter Hall Group.
Stockland was another prominent name recognising this trend, it said, having made available a stake in its Piccadilly Centre in Sydney CBD, which should appeal to offshore money.
“As well as the shortage of prime stock making capital partnership a necessity for offshore investors intent on investing in Australia, the relatively higher barriers to investment when acquiring prime property investments is another important driver of this model,” said Mr Ainge.
The report cited a number of pros and cons in capital partnerships.
Among the advantages identified by Ainge were access to prime assets that would otherwise be unavailable, lower entrance costs, access to existing management expertise, reduced single building exposure and increased portfolio diversification. On the flipside, he said adopting a capital partnering relationship still required risk mitigation when it came to the potential for difficulties in exit strategy, pricing risk and the investor having limited control of the asset.
With investment appetite for core Australian investments continuing to grow, and alternative investment opportunities shrinking rapidly, “it is expected that the uptake of the capital partnership model will continue to grow in popularity,” it concluded.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Offshore investors forced into local capital partnerships by lack of stock, heightened competition: Cushman & Wakefield

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Tasmania recorded the nation's highest level of mortgage arrears for a second consecutive quarter, according to the latest report by Standard &amp; Poor's Ratings Services.
Six of the 10 worst-performing postcodes were in New South Wales, the standard mix of coastal areas and suburbs on the outskirts of Sydney.
Overall Australia's level of arrears for subprime loans in the June quarter was the lowest in 13 years, but loans greater than 30 days in arrears totalled 1.68% in Tasmania.
Next was New South Wales, at 1.48%, and Queensland, at 1.40%, according to the report, RMBS Performance Watch: Australia which compiles data from residential mortgage-backed securities which are a means for lenders to raise funds by selling bundles of loans to investors. It involves a high proportion of non-bank originators and financial institutions and subprime and low-doc lenders.
But there's also now the latest RP Data analysis that details the weakness of the Tasmanian property market saying Hobart has experienced the weakest performing market over the past year of all capital cities with home values falling by 0.7%. The median house sale sits at $325,000 and units at $236,000.
"The Hobart market weakness has been consistent over recent years with it also the weakest market over the past five years," RP Data's Tim Lawless noted.
"Unfortunately most other indicators remain weaker now than they were a year ago," he added.
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Hobart Property Values
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? 6.0% quarter
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? 0.7% year
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? 1.8%  per annum over last five years
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? 2.9% per annum over past 10 years
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? 7.3% per annum over past 15 years
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? 15.2% from peak
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<a target="_blank" href="https://www.propertyobserver.com.au/news/tasmania-s-unemployment-rate-holds-back-property-investment-but-watch-growing-overseas-student-numbers/2013110666223">I've recently written on Tasmania's high overseas student numbers</a>, but tourism activity on the island is expected to drive the brightest prospects for Tasmania's economic growth.
Earlier this month the Tasmanian motoring group RACT added the 60-room Freycinet Lodge, 60-room Cradle Mountain Chateau, and Strahan Village to its property portfolio.
It already includes the Grand Mercure Hobart Central Apartments, which it bought in partnership with the RACV for $25 million in June.
The motoring group will also take ownership of Gordon River Cruises.
The Farrell family’s Federal Group will maintain a small investment in the tourism assets with the deal done through Knight Frank Tasmania managing director Scott Newton. 
 The four assets are currently profitable but were operating at below preferred occupancy levels.
The RACT hopes its member base and seven million mainland affiliate automobile members will be willing tourists.
The deal comes as signs of an improvement emerge in Tasmanian tourism.
For the year ending June 2013, Tourism Tasmania reported that visitor numbers were up 12% to 961,600.
The total nights spent in Tasmanian hotels rose 7% with visitors spending $1.5 billion over the year which was 10% more than in 2012, the Tasmanian Minister for Tourism Scott Bacon said.
Federal still owns Hobart's Wrest Point casino and Launceston's Country Club casino along with the luxury resort Saffire on the state's east coast and the Henry Jones Art Hotel in Hobart.
The sale has likely freed up capital for Federal to develop a luxury hotel at Port Arthur.
The 4.5 Star Freycinet Lodge (pictured below) in coastal bushland on the shores of Great Oyster Bay. It includes 60 one and two-roomed cabins, restaurants and conference facilities. The property is leasehold with 41 years remaining, issued by Parks and Wildlife Service.
<img alt="freycinet-nov-27-one" height="317" width="470" src="/images/stories/2013/11/27/freycinet-nov-27-one.jpg">
Photo courtesy of Freycinet Lodge
The 4 Star Cradle Mountain Chateau includes 60 standard twin rooms, king spa rooms and deluxe split level suites, restaurants, bars and conference facilities.
Strahan Village, located on the bank of Macquarie Harbour on Tasmania's west coast. It features include two main areas of accommodation, four food and beverage areas including Hamers Hotel, View 42 Restaurant &amp; Lounge, Fish Café and Banjo’s Bakery and various tourism activities.
Gordon River Cruises is located on the Gordon River. 
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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