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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RP Data compares the number of new residential listings and total listings on a weekly basis as they help to provide a rounded view of the market. From the perspective of many, the volume of sales can be more important than the price of those sales.
The past two years saw a very low volume of residential sales in Melbourne which is a reflection of conservative decision-making by consumers who, as the saying goes, ‘preferred to save rather than spend.’
There is no doubt that this year, the market has picked up but there is a long way to go. The most recent data shows that there are 16.7% fewer overall homes for sale in Melbourne than 12 months ago. Given that the volume of new listings is up by 1%, this is a sign that older stock is being cleared and the property market is improving, but only moderately.
Victoria-wide, the picture is not as strong with overall listings only being lower by 10% and new listings down by 1.7%. It is often the case that the regional market moves more slowly and is less volatile that the metropolitan and that is the current case.
In stark contrast, the residential market in Sydney is moving homes very rapidly with total listings down 26.3% and new listings up only 4%. Demand is clearly very strong in the Sydney market right now.
 
<hr>
 Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
 
 
 
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rlarocca-zWhvjay44N

No doubt Melbourne market has picked up, but nothing like Sydney

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Property Observer recently spoke to Feng shui master Yu Gui Feng for tips on making your home feng shui-friendly. He told us that the feng shui elements for commercial properties are quite different.
There are certain elements associated with feng shui – wood, fire, earth metal, and water. Each of them carries a different energy that could be beneficial or harmful, depending on the surrounding energy of the property and its owners.
“For residential properties, you want to built it on flat ground or on the higher side of the road. But for commercial property, we don’t like it to be on top of a hill. We like it to be somewhere on the lower side of the road, or near the bottom of the landscape, because that’s where it can accumulate a lot of money energy,” he said.
He went on to explain that feng shui, literally translated, means “wind” and “water” in Mandarin. Water symbolises prosperity.
“Human bodies are made up of 70% water. A commercial property needs customers. Water energy flows downhill. That’s why a shop or a commercial building should be on the lower side of a road,” he said.
For shops, he advises that there is no “ideal” orientation. However, certain elements need to be closely aligned with the product.
“For example, if you are in the food industry, the prime energy is earth energy. A good colour for earth energy is a yellowish colour. Look at the world’s largest restaurant chain, McDonald’s. Its dominant colour is yellow, and resonate’s with the industry’s energy,” he said.
“For a commercial property, we also need to look at the logo, the business name, how many letters, the logo’s colours, and signage. Of course the internal layout and design matters too,” he added. 
Good layouts for shops include rectangular and square shapes. Ideally, the front entrance should be narrower than the back, like a bottle. 
“This is to accumulate money energy. Money energy goes in every busy shop, in one way or another,” he said.
He also noted that commercial property owners should avoid purchasing properties where the front and back doors directly face each other.
“It is very hard to make a sound investment with this type of property,” Master Feng said.
Additionally, a commercial building’s surroundings is very important. If there are any buildings in its vicinity that have sharp corners and reflect light, that could cause problems for your business.
Similar to a residential property, the front entrance of a commercial building is important.
“It can influence the entire building’s money return. You need to look at the landscape and surrounding buildings to create an appropriate entrance. Once you walk into the entrance of a commercial property, the entrance or lobby area needs to have two conditions: One is light. One is space,” he said.
He added that buildings with a reception area should place the reception as close to the front entrance as possible.
As for colour schemes, he suggests avoiding the colour black. Exceptions to the rule include nightclubs, bottle shops, and adult shops.
Lastly, Master Feng said that feng shui is only one-third of the overall plan to turn a business around.
“It’s about the right time, right person, right place,” he said. “These include opportunities, your personal effort, the product and the services. The energy of the place, that has got to do with feng shui.”
<a href="mailto:dleow@propertyobserver.com.au" target="_blank">dleow@propertyobserver.com.au</a>
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dleow-BGaNPbHWyK

Feng shui tips for your commercial property

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North, south, east, west and all the variations in between. Real estate advertisements regularly highlight a property’s aspect and light-filled interiors in order to attract buyers. In Australia, properties facing north are considered highly desirable due to the amount of direct sunlight received throughout the day. But how should properties with other aspects be considered? 

“In some respects, the ‘north-facing garden’ has become shorthand for an ideally sunlit property,” says Monique Wakelin, director of Wakelin Property Advisory in an article published recently in the AFR.

But Wakelin noted “what really matters is how the design of a property is affected by the direction it faces”.

“When considering aspect it’s not just a matter of north, south, east or west, but what this means for a property given its design, and how this plays out it terms of light,” she said adding that shying away from anything other than north-facing could mean missing out on a better investment opportunity.

[smartcode_project:default project_id=2929]

Our property commentators Jonathan Chancellor and Margie Blok discuss concerns about aspect and light which vendors and buyers should heed when buying and selling properties no matter which direction they face.

HE SAID:<img alt="jc-silhouette-5" height="225" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" style="float: right;" width="150">

Keys factors vendors should consider:

* High capital growth is just as important as a perfect north aspect. Well located properties, and those with water views, usually increase in value even if the aspect is east, west or south.

* A well-designed house or beautifully presented apartment should reap financial rewards because buyers often pay a premium for quality renovations and good design.

* Installing skylights is a practical solution for hallways and rooms lacking sunlight  - funneling sunshine into gloomy spaces can totally transform the ambience of a house.

* Installing mirror panels or hanging mirrors to reflect light into dark corners is a clever (and inexpensive) solution often used by interior designers.

* Natural light is attractive to buyers, but designer interior lighting is too - it allows you to alter the mood of a room. Before listing your property consider seeking professional advice about installing decorative and ambient lighting.

*Don’t overlook outdoor and garden lighting which can enhance the beauty of your property at night.

* If your house has windows looking directly into a neighbour’s home consider replacing clear glass panes with opaque glass to provide privacy but also let in the same amount of light.

* Little or no sunlight can be grounds for rejecting a property by home buyers as well as investors, and can considerably reduce a property’s value, especially in high rise apartment blocks in increasingly crowded CBDs.

<img alt="mb-silhouette-4" height="225" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" style="float: left;" width="150">SHE SAID:

Key factors buyers should heed:

* Check for brightness and sunlight by turning off electric lights to gauge how much natural light fills the rooms of a house or apartment.

* Too much sunshine can be a problem – you don’t want to have curtains drawn and air-conditioning running for hours on end in a west or north-west facing property that cops vast amounts of direct sunlight for most of the day.

* Apartments facing south or west should not be ruled out if these properties have water views or are set in a premium location. These apartments could hold better capital growth potential (and/or higher rental yield) than a north-facing apartment without a view or situated in a less desirable area.

* Be sure to check out a property at different times of the day – estate agents often schedule inspection times for the 30 to 45 minutes when a house or apartment is filled with maximum natural light.

* Check the estate agent’s spiel about a property’s aspect – sometimes their advertisements will emphasise a north-facing aspect but not make it clear which part of the house faces north. It could be the front bedrooms have a north aspect and the living areas at the back of the house, as well as the garden, are facing south. It’s important to check for yourself how a house is sited on the block, so take the iphone compass.

* Bedrooms are for sleeping, so it’s not important for these to be sunny – in fact, some people prefer bedrooms without a north aspect. But best check for mould and dampness problems in places where no light reaches.

[smartcode_project:default project_id=29048]

* Don’t get carried away with beautiful interior décor and then fall in love with a property because of what it looks like – you need to assess its relationship with sunshine and natural light.

* Both home buyers and investors should check the floor plan and consider orientation of various rooms in houses and apartments – these can be just as important as aspect.
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jchancellor-FAypfDUnLy

North, south, east or west: How can investors make the most of house aspect?

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Australia’s baby boomers and retirees will have a little less to worry about this Christmas, as Australia’s superannuation funds are on track to achieve their highest returns since the global financial crisis.
According to research released yesterday from independent agency SuperRatings, superannuation funds had solid returns in October. The agency predicts when the November and December results are added in, the average Australian superannuation balance will have grown 14.1% over the calendar year.
Balanced funds gained, on average, 1.8% in October. Since July, superannuation funds have risen on average 6.9%, and since October 2012 have risen 16.9%.
The big driver of this is shares, with both Australian and international share markets enjoying a bull run in recent months.
But returns across all asset classes were positive in October – even cash options returned 0.2%.
Last year, superannuation returns on balanced funds rose an average of 11.7%. That was an <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/30460-what-the-big-mac-index-says-about-the-aussie-dollar-five-things-you-need-to-know-about-the-economy">unusually good year</a>. Superannuation balances declined 1.9% in 2011, rose 4.6% in 2010, and 12.9% in 2009 after falling 19.7% in 2008.
Over the past 10 years, superannuation funds have returned 7% per annum on average – just less than half of this year’s expected figure.
The past few years have been a rollercoaster ride for investors, with the bull market of the early 2000s spectacularly crashing in 2008. But SuperRatings founder Jeff Bresnahan says superannuation investors still ended up ahead.
“Australian superannuation funds have continued to deliver returns of 7% per annum, some 4% above prevailing inflation,” he says. “For members who have some time until retirement, this history of longer term performance should provide comfort that fund’s continue to meet their long term objectives.
“For members nearing retirement, however … the actual risk achieved in the lead up to retirement takes on greater significance. The most important planning decision for older members is to ensure that their strategy reflects both their goals and capacity to bear risk.”
A hypothetical $100,000 balance invested in a balanced fund in 2003 would now be worth $195,265, a 95% gain over 10 years. It would have risen rapidly until 2007, before starkly declining to just $124,627 in 2009 before making up the lost ground and then some in the years to 2013.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
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mrobin-TVRYiru7si

For second year running super funds will break post-GFC record: SuperRatings

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Last week was the first real hiccup we’ve seen in the top end inner Melbourne auction market this year. With clearance rates in the 60s, and at a very low 1.3 bidders per auction, the market sat up and took notice.
What did this mean?
Was last week the start of a big slump like the Pies had at the end of the season, or was it just an off week like Hawthorn had on the way to another premiership?
In our opinion, last week was the start of something, but of neither of the above. In our opinion it was the start of a more splintered market. Almost half the auctions we covered last week had no bidders and this week again there were a significant number of the top end properties with no bidders. 
Two reasons for this splintering market:
<ol>
<li>
The incredible amount of choice out there at the moment means that unless a home is an A-grader or a well-priced B-grader, it is no longer an automatic sell. This is creating an easing of demand per property. Why? Right now in late spring this easing of demand per property is due mainly to the sheer volume of what’s on offer. This weekend was a big Saturday (100+ auctions) and there’ll be another big Saturday next weekend  (100+ auctions), and then we’re up for a super Saturday (150+ auctions) on November 30.
</li>
<li>
Price – Some vendors are getting ahead of themselves. Nothing wrong with that. Except that in this market they may well be punished by no sale, whereas in early spring that was not happening as often.
</li>
</ol>
Right now, just as a buyer stretching to buy a property has to ask themselves: Am I buying a price or am I buying the property, the market is asking sellers the same sort of question: are you selling a property or are you selling a price? That’s a big difference in strategies!
But, and it’s a very big but: When the property has the right 'three Ps' – price, property and position – how sweet the market is for sellers. That’s the splintering effect.
Let’s look at two sales in Toorak to prove a point.
Both were land sales. We had tentative interest in both at around the quote level, but, as we told our clients, we knew we were never going to be serious contenders. While the homes may have been quoted with an eye on the reserves, they were not quoted with an eye on the expected final result.
So while both went miles over the reserve, they didn’t go miles above the professional estimated buying range.
<a href="https://www.kayburton.com.au/property/11-tashinny-road-toorak" target="_blank">11 Tashinny Road, Toorak</a> (pictured below) – This was 511 square metres of north-facing rear land with two period apartments that needed serious renovation.  The quote was around $1.7 million, but the agents (Scott Patterson and Michael Armstrong) expected more and said so. We put the range at $2.1 million to $2.5 million, expecting it to go in the low $2 million region. It was declared ‘on the market’ fairly at $1.85 million, and with six bidders it pushed through to $2,395,000. This price put land at $4,700 per square metre, strong for that little pocket but normal for other land nearby, such as the nearby Dunraven precinct.
{yoogallery src=[images/stories/2013/11/21/too1]}
 
<a href="https://www.williamsbatters.com.au/?pageCall=property&amp;propertyID=2494642&amp;realestate=6_Verdant_Avenue_TOORAK_VIC_3142&amp;propertyStatus=SoldRented" target="_blank">6 Verdant Avenue, Toorak</a> (Philippe Batters) – On 836 square metres, this was one of the best mid-sized Toorak blocks offered in a long time (pictured below). The $3 million plus quote was courageous – with two street frontages and wide and Verdant Avenue. We thought it might go for perhaps around $4 million, or maybe more, so the final result of $4,445,000 after four bidders had fought it out was not a complete shock but it was still very strong. This says great land down near the Royal South Yarra Tennis courts is worth $5,300 per square metre.
{yoogallery src=[images/stories/2013/11/21/too2]}
In two places not that far apart you had 10 bidders (plus those that didn’t speak up) putting the price of land – no house – at circa $5,000 square metre. So, yes, there is still a very strong market for properties with the right 'Ps'.
All the 'Ps' above were good – position, property and price. The smart agents got these A-graders on the market quickly and then let nature take its course. It’s a very different story from a number of pass-ins where the agents and sellers wanted a price that the market did not support.
This is what is happening out there since Melbourne Cup – buyers are more discerning and if it’s not right they are moving on. This is a change from a month ago.
That is the splintering effect we are talking about.
Now is this smart for buyers? Let’s wait and see. Our thoughts as buyer agents is that if you as a buyer see the right one, you should consider going for it (within reason).  Because there is no guarantee  that we’ll still see this amount of choice next year – even if many of today’s underbidders are assuming that will be the case.
 
<hr>
 Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

maljames-vHwm28JUAa

Melbourne top end market splintering under weight of stock

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The automotive, manufacturing, printing and retail sectors are being impacted most severely by tough economic conditions, according to some of Australia’s leading lenders.
A Grant Thornton survey of business finance lenders from 22 financial institutions Australia-wide revealed prolonged slow growth in Australia, outside of mining, was the primary difficulty impacting businesses.
Some 84% of respondents identified slow growth as having the most impact on businesses, while 77% also reported the slowdown in China’s growth as a key factor and 69% said businesses were being hurt by the Australian dollar exchange rate.
Grant Thornton national head of recovery and reorganisation Matt Byrnes said manufacturing and automotive businesses are under pressure from high cost bases and the challenge of tapping into export markets.
“We always encourage businesses in these sectors to have an export arm, as well as a local market, but the high Australian dollar has made exporting difficult,” he says.
“We’re also going to see a continuing of tough times for printing. I think the volume of printing is falling in a real sense and the cost to compete in that industry is also becoming higher.”
Byrnes says in retail it’s the top-end retailers which are doing it tough, as well as the single stores on high streets.
“We’re seeing a lot of stress thanks to high property values,” he says.
Retailers such as <a href="https://www.smartcompany.com.au/growth/32260-lisa-ho-folds--as-administrators-are-unable-to-find-a-buyer-for-the-iconic-brand">Lisa Ho</a> and <a href="https://www.smartcompany.com.au/growth/economy/32958-family-owned-menswear-business-founded-in-1936-collapses-with--6-million-turnover">Blowes Menswear</a> have collapsed this year.
Of the respondents, 30% expected default levels to increase in the next 12 months, and 23% expected corporate failures to increase. Sixty-three per cent of lenders expected the number of insolvencies to remain the same.
As a whole, the report revealed banks are more likely to work with businesses to try and overcome financial difficulties, than initiate formal insolvency.
The respondents said the key to success in difficult trading conditions is good management.
Ninety-one per cent of respondents said the highest contribution to financial distress was poor management decisions and 86% found poor financial controls also contributed to the failure of a business.
Byrnes says a strong management team ensures the right structures are in place within a business, employees are in the right roles and makes sure financial reports are given to management in a timely, regular manner.
“In many businesses which are struggling, they do not have these characteristics. Poor management and poor systems leads to poor decisions,” he says.
Other major reasons for businesses encountering financial distress included issues managing working capital, decline in revenues, an inappropriate business model and rising costs.
More than 50% of respondents’ borrowers had attempted to solve their business’s financial woes by implementing cost cutting programmes and reducing staff costs. But Byrnes says this isn’t necessarily the best strategy.
“The default position is to look internally and cut costs, and we’re not saying they shouldn’t, but there are opportunities out there for businesses. If they’re too internally focused they may miss out on these opportunities,” he says.
“For example in manufacturing, there are lots of opportunities for businesses to consolidate. The market is under pressure, but there are good businesses still operating, while others won’t survive.”
Other strategies which weren’t often considered included making more wholesales changes such as realignment of strategy, focusing on sales and marketing and implementing diversification or outsourcing strategies.
For businesses needing to source new debt or refinance existing debt, don’t expect it to be any easier in 2014.
The report revealed 63% of lenders thought the availability of debt would not change in the next year.
“In respect to access to equity finance there was an expectation in parts of the market that this will free up,” Byrnes says.
“But the view of the lender group is there will be no real change and it’s been tough to access finance over the past 12 months.”

<hr>
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
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yredrup-o4Anfe78KF

Automotive, manufacturing, printing and retail sectors burdened by debt: Grant Thornton report

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Fashion brand Cotton On Mega has continued its national expansion, this time securing a lease for a three level retail premises on the Gold Coast for its new flagship store.
The new store is located in the heart of Surfers Paradise, at 29 Cavill Avenue, and is about 1,692 square metres in size.  
Savills Australia retail director Michael Di Carlo brokered the deal with colleague, Avian Weber, associate director at Savills Gold Coast, 
The lease is for 10 year lease and the rent is believed to be $700 a square metre over the whole building. 
Cotton On Mega is due to open the new flagship store in early to mid-2014.
Mr Di Carlo said Savills Retail had advised the lessor, a Melbourne-based investor, on the purchase of the property with vacant possession in 2012 and that the new lease would deliver the landlord in excess of a 10% return and an increase in value of over 25% of the initial purchase price.
Mr Weber added that the Cotton On Mega deal represented the largest retail lease negotiated along Cavill Avenue in the last decade.
<a href="mailto:news@propertyobserver.com.au" target="_blank"> </a><a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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kjiminez-eaYKfU7qd2

Cotton On Mega continues expansion with Gold Coast flagship site lease

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Strengthening investor sentiment, increasing tenant demand and more favourable fiscal conditions are expected to position Sydney's industrial market for a rebound in the year ahead after 12 months of slow growth. 
According to CBRE’s Australian Industrial MarketView report for the third quarter, despite a contraction in industrial employment over the past year, total imports - measured in 20 foot equivalent unit (TEU)-  that came through the Port of Botany increased in July and August and over the 12 months to September rose  5.5%.
And while sentiment strengthened across the metropolitan industrial sector during the quarter, Sydney remained "one of the most in-demand" markets nationally. 
CBRE Senior Director of NSW Industrial Jason Edge said “while investors remain attracted to long term lease covenants and lower risk adjusted returns, they are becoming more accepting of shorter lease terms assuming the core property fundamentals exist".
“As a result of this, the market is tightly held, with owners holding onto assets in hope that yields will tighten further.” 
B-Grade warehouse yields remained steady at between 8.50% and 11.00%, while A-Grade warehouse yields tightened by 25 basis points to 7.50% and 10.50%, said the report.
Sydney industrial land values remained relatively steady over the quarter, with fully serviced 0.25ha lots averaging $580 per square metre and 1.6ha lots hovering at $448 per square metre. 
CBRE is not expecting land values to experience any significant growth until a market shift occurs. 
Specifically, CBRE senior research manager of industrial markets Luke Dixon said “capital value growth is unlikely until the availability of land declines or market demand changes".
Meanwhile, stronger construction levels over the quarter helped boost the industrial supply pipeline, with a total of 513,603 square metres due to for completion by the end of 2013, gaining pace in 2014 and 2015, the CBRE report said.
Rental growth remained flat over the quarter for prime and secondary grade stock.
<a href="mailto:news@propertyobserver.com.au" target="_blank"> </a><a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Sydney industrial market set to rebound in next 12 months: CBRE

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A battle royale has erupted over the $4 billion Commonwealth Property Office Fund after GPT surprised the market yesterday with $3 billion rival takeover offer.
The offer gazumps the Dexus consortium takeover offer by about $160 million, which is valued at about $2.84 billion.
GPT is offering $O.75325 in cash and 0.141 GPT security for every Commonwealth Property Office Fund (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. 
However, Credit Suisse analysts pointed out today that excluding CPA's 1H2014 dividend of 3.32c, the adjusted price is actually $1.24. 
The analysts also believe that it will be difficult for the Dexus consortium to match the GPT offer.  One reason was based on its estimates 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".
"We also believe the increased offer from GPT potentially provides DXS with additional incentive to walk away as it would allow DXS to crystalise a 12.4% return on its entry price of $1.13 for its 14.9% stake in CPA.”  
<a href="mailto:news@propertyobserver.com.au" target="_blank"> </a><a href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Battle royale erupts as GPT launch surprise $3 billion takeover bid for Commonwealth Property Office Fund

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Building codes and the property industry have changed over the years to create safer and more comfortable living standards. The introduction of new and improved materials, and having to deal with population growth, has impacted the building codes and regulations.
The question that needs to be asked is: Are new changes in legislation with respect to material and methods of building enough to maintain a safe living environment?
Even with all the changes over the last two decades, there is one area which has been overlooked by many of the policy makers and policies. This being the area of safety.  I refer to safety issues in and around buildings that were constructed before new regulations were implemented, and changes made to the building standards from the Building Code of Australia (BCA). These standards still fall short, even in and around newly built apartment blocks.
An important issue is the required balcony wall/balustrade height. Years ago it may have been OK to make the minimum height 850mm to ensure safety and protection. Now the current standard is 1000mm.
{qtube vid:=LkFdiuxfqHI&amp;feature=youtu.be}
So what of the older styled buildings that would not comply with the new BCA standards? The law does not require older buildings that follow past standards to comply with current legislation. Another question that must be asked is: Does the new height requirement do enough to prevent injury and fatalities? Many industry experts would say no, the height is still too low.
We find that there is a shift in the demographics of unit occupants. Current trends show that more and more small families are living in units, as houses are just not affordable for some. Houses are beyond the reach of many tenants, as well as owner occupiers. As a result, we have more young children playing and spending time on these balconies.
To cope with these shifts and the common sense that old standards were too low, we now have the railings at 1000mm high but again, what is being done with older unit blocks? We have grave concerns about children falling out windows and changes are being adopted to make unit-living safer in this regard.
Now it’s time we looked deeper into the issues around balconies. Children can easily climb on a chair, a box or other objects to lean over the balcony out of curiosity. Not much assistance is needed in some of the older units as the balcony wall heights don’t require much more than standing on tip toes for a child to lean over the edge.
As the push toward affordable living for young and small families is directed to unit accommodation, local and state governments need to begin to take proactive measures and encourage owners’ corporations to look carefully into adopting measures to ensure more care is taken. I am not asking for a retrospective change to the building code, but rather a proactive adoption of a common sense approach toward safer living standards.
It is frightening to see and inspect older units where there is so much that can go wrong, and in particular around safety issues that involve balconies. All because when the buildings were erected, they complied with the then standards.
Don’t wait for a catastrophe to occur in your unit complex before implementing change. Although you and the strata manager may believe you are not responsible now, make the change, as injury of a tenant will impact your bottom line. A unit owner is impacted by what happens in the entire block. Encourage your strata manager to address these issues before your complex becomes the interest of the nation due to unsatisfactory safety issues. An extension of the balcony height can be both affordable and aesthetically pleasing, all while keeping with the nature of the building.

<hr>
Edwin Almeida is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
 
 
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