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.

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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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The Sydney CBD may boast one of the most expensive retail strips in the world - Pitt Street Mall - and attract some of the biggest international fashion brands but new research has found that they city has a severe shortage of retail space.
According to Colliers International, retail in the Sydney CBD is "grossly undersupplied”, with only just 18.5 square metres per resident - the lowest in the country.
<img src="/images/stories/2013/11/05/chart-of-the-week-nov-6.gif" width="470" height="302" alt="chart-of-the-week-nov-6">
Source:  id Consulting, Deloitte Access Economics, Colliers International
Adelaide had Australia’s highest retail floor space per resident with 47.2 square metres per resident, 255% higher than Sydney.
But that shortage of retail space in the Sydney CBD is expected to change. Colliers suggests that the growing demand from international retailers, increasing city residential developments, combined with the current shortage of retail space is expected to drive the need for retail development.
The head of retail at Colliers, Michael Bate said its research had shown that "around 65,000 square metres of new retail space was planned for the city’s heart".
He believes that revitalised CBD retail precincts will be the next revolution for retail in Australia, buoyed by what he sees as a "second wave" of international retailers heading to our shores.
"With the development of so much space in the Sydney CBD, don’t be surprised if you see another wave of international brands on our doorstep, particularly a whole new range of luxury brands who are finding Australia an increasingly attractive market, " said Mr Bate.
The report identified three main categories that were driving demand for retail space in the CBD.
One was the ongoing trend of residential development in cities across Australia.
Based on its estimates, the Sydney CBD is expected to grow by more than 10,000 people over the next decade.
The other driver, it cited was the number of workers populating the city during the day.
"Sydney’s 240,000 CBD workers are supported by around 1.9 square metres of retail space per person, which is a similar ratio to Melbourne," Colliers said. "Only Perth has a lower ratio at just 0.8 square metres of retail space per worker".
However, Sydney’s worker population was expected to increase by around 58,000 people over the coming decade, putting a further squeeze on retail space, it added.
Tourists made up the third category of CBD retail users.
"With international visitor numbers to Australia increasing by 5% in 2013, the retail needs of tourists will continue to grow in line with these visitor numbers," Colliers said. It highlighted that the number of Chinese visitors in the 2012/2013 financial year grew by 17.4%, “a market that will continue to drive retail demand in the country’s CBDs".
 
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kjiminez-eaYKfU7qd2

Sydney CBD retail space "grossly undersupplied"

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The spring property market is in full flight with a record number of properties changing hands. But Christmas is approaching fast and many buyers may start to feel the pressure to buy before the market goes into the summer recess.  
I have seen this happen to many buyers in the past. They get tired of looking for a property and they just want to get it over and done with. They end up taking short cuts and make decisions without getting all the facts.  
By finding out as much about the property as possible, you can make an informed decision about whether to bid or negotiate for the property.  
There are three stages of due diligence you should carry out (preferably assisted by a solicitor or conveyance who specialises in property transactions).  
The first concerns structural integrity. There’s little point in spending hundreds of thousands of dollars on a property, only to find after the purchase that you need to spend thousands more rectifying structural problems in the roof, walls, floor or sub-floor space.  
If you’re buying a house that isn’t brand new, obtain a building inspection from an architect or registered builder who can reveal any problems you aren’t aware of. If you’re buying a unit that’s part of a building with an owners corporation, it’s the owners corporation’s responsibility to maintain the building in good structural order. You can find out about the building’s structural integrity through the vendor’s statement (also known as a ‘section 32’ statement).  
This is where the next stage of due diligence comes in. Under Victoria’s property laws, the vendor is responsible for providing you with a statement providing important technical information about the property and its immediate surroundings. The vendor’s statement should have a copy of the title to the property including the main buildings and any ‘accessory units’ such as garages or car spaces. This will tell you exactly what you’re buying for your money.  
The statement should provide documents from the local council indicating whether any works are planned on adjoining properties which could affect your use and enjoyment of the land. For example, if you’re buying a single level house and the owner of the property next door has plans to put on a second story, knowing this in advance means you can consider how it may impact on your privacy and light levels.  
The vendor’s statement should include documents from utility providers such as electricity and water suppliers regarding the presence of any ‘easements’ over your land. An easement is a portion of land that you legally own but which must remain accessible to the utility provider if they have to undertake repairs to storm water drains or overhead power lines. This may affect your use of that portion of the land, including whether you can build on it.  
The last, but by no means least important stage of your due diligence is to make sure that, when you sign a contract to buy the property, you will have sufficient funds available to meet settlement on the agreed date. If you can’t meet your obligations under the contract, the vendor is legally entitled to keep your deposit. If they re-sell the property for a lesser amount than they sold it to you, they can sue you for the difference.  
Undertaking all this legwork may sound daunting, but it’s infinitely better than buying in haste and discovering major issues when it is too late.
 
<hr>
 Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.  
 
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marmstrong-sd3emVLPPb

The three stages of due diligence to conduct before buying an investment property

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The NSW Court of Appeal has opened the door for owners corporations for commercial buildings to bring claims of negligence for pure economic loss against builders - an action previously thought to be limited to subsequent purchasers of residential buildings.
Since the mid-1990s, the High Court has recognised the existence of a duty of care owed by a builder to a subsequent purchaser of residential premises for recovery of pure economic loss. It later refused, however, to extend this duty of care to a purchaser of a warehouse office building (Woolcock Street Investments Pty Ltd v CDG Pty Ltd (2004) 216 CLR 515).
Last month, the NSW Court of Appeal, in The Owners – Strata Plan No. 61288 v Brookfield Australia Investments Ltd [2013] NSWCA 317, found that the differences between the purchasers of residential and commercial properties are not as great as we might previously have thought. The key consideration for the court when establishing whether a builder owes a duty to a subsequent purchaser in respect of pure economic loss is the extent to which the purchaser is vulnerable.
The Owners - Strata Plan No. 61288 v Brookfield case concerned the construction of a mixed-use retail, restaurant, residential and serviced apartments building in Chatswood, NSW, in 1999.
The owners' corporation for the serviced apartments, which came into existence after completion of the building work on registration of the strata plan for the serviced apartments, discovered certain defects in the common property and, in November 2008, brought proceedings against the builder in negligence for pure economic loss.
The Court affirmed the importance of vulnerability of the plaintiff as a key factor in controlling the potentially expansive area of legal liability.  The vulnerability of the purchaser was a key factor in identifying the scope of the builder's duty of care to that purchaser.  Vulnerability refers to the purchaser's inability to protect itself from the consequences of the builder's failure to use reasonable care; whether than be in a physical sense (controlling the physical events that gave rise to the loss) or a legal sense (negotiating a contractual arrangement imposing liability on the builder).
The owners' corporation was found to be vulnerable in that the defects were latent and could not have been discovered by a purchaser exercising reasonable care; and there was no submission that the owners' corporation could in some way have protected itself by contract so as to impose liability on the builder.
While this case appears to expand the scope of a builder's liability to subsequent purchasers of buildings, the Court commented that this case does not in fact represent a radical change in the law, but is merely the application of existing principles to a novel set of facts.
 
<hr>
 Philip Dawson is a partner at <a href="https://www.claytonutz.com/?" target="_blank">Clayton Utz</a>.
 
 
 
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Court ruling allows commercial property owners corporations to bring negligence claims against builders

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Retail sales have lifted more than analysts’ expectations in September, as Australian Bureau of Statistics figures reveal turnover increased 0.8%, seasonally adjusted, for the quarter.
Turnover in department stores increased 2.8% and the clothing, footwear and personal accessory category rose 2.5%.
On a state-by-state basis, Victoria and New South Wales both recorded increases of 1%, while Western Australia declined by 0.5%.

<hr>
This article first appeared on <a href="https://www.smartcompany.com.au" target="_parent">SmartCompany</a>.
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Retail sales up in September

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As I have <a href="https://www.propertyobserver.com.au/residential/are-you-being-served-looking-at-how-we-can-better-take-care-of-buyers-needs-peter-chittenden/2013101465686" target="_blank">already suggested</a> the buyer’s experience in the real estate market clearly involves a good measure of emotion and it is the main reason that developers, builders and marketing agents place so much emphasis on the value of their brand. In fact brand sensitivity really extends way beyond those directly marketing projects, it runs across a wider group that can also include architects, interior designers, landscape architects and major suppliers.
In an environment where real estate has to compete just like any other product or service, a great deal of time and money is spent to build brands, and of course we should not over look the role of individual project brands. We now see some major developers doing regular online surveys to measure how their customers view their buying experience and the feedback is being taken to heart. This highlights that it is the buyer’s experience where brands are tested and how the sales path is built around good communications that should all combine to support the buyer’s experience.
Against this high-stakes background I would now like to look at some of the assets available to us helping to create great buyer experiences.
However before doing that I would just like to reflect upon a recent comment reported in one of the main Sunday newspapers.
The report was headlining the somewhat understandable frustration of a young couple looking for a home in one of Sydney’s most competitive and popular suburbs. In the article was a quote that in part said that these buyers felt that some real estate transactions involved less information, less service and less attention than a consumer looking to buy a new car would receive.
And so reflecting these comments against how much we all value our individual and company brands the remarks were very disappointing. It has also been suggested that poor service given to home buyers has in part encouraged the rapid growth of buyer’s agents. I think these are comments we need to be sensitive to and not just brush aside as a reflection of the current market.
The tools we use
Moving on to look in more details at how we manage and enhance the buyer’s experience I think we need to consider how best to use the key parts of the sales journey that every buyer will normally be familiar with.
We are all conscious of the basic tools and systems we use including public relations, digital marketing, data mining, events, VIP and preferred client programs, moving in and residents guides, after sales support, loyalty programs, sales support, display and sales centres and a detailed understanding of buyer demographics. These are all key among the direct communications strategy we can employ and that developers fund.
However there are other essential factors that influence the buyer’s experience and here I feel that a high priority needs to be given to supporting and training the sales team. In this area I would include team sales training, sales manuals and importantly a diverse and structured role for sales mentoring and most importantly how best to recruit the sales team and of course its leaders. 

<hr>
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
 
 
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Delivering a top buyers experience: Real estate has to compete like any other service

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Much was made of the September building approvals data yesterday <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0?OpenDocument" target="_blank">from the Australian Bureau of Statistics</a>, and with a 14.4% surge in approvals for new homes (seasonally adjusted), they certainly appear to remove any doubts that the home building sector has turned and has been accelerating (remembering this is historical data).
That’s critically important to the transition of the economy from the mining investment boom to a more traditional, housing-driven growth pattern sought by the RBA.
But there are a couple of points that need making. Much of the increase came from an 31.8% jump in new home units, townhouses and apartments, which is a very volatile part of the series. The same month in 2012 produced a big increase, with a 7.8% jump in total approvals, including an 18% rise in new home units and apartments. In July of this year, there was a 24.4% surge in new units, apartments and townhouse approvals and an overall rise of 10.8%. But in June there was a sharp fall of 12.6%, with approvals in home units, etc, down 37% for the year to June (the 2012-13 financial year).
This series depends heavily on approvals by local councils and tends to appear in the ABS data in bunches?—?as the above numbers indicate, it’s either feast or famine, and for that reason, the overall series is difficult to analyse. Even the trend series, which tends to smooth out the month-to-month changes, can be left behind by the big surges and falls in approvals in this area.
On trend, the September rise was 2.5% for all approvals (not 14.4%) and the year-to-date rise was 15.1%, not 18.6%. For the volatile apartments, etc, group, the trend increase in September was 5.6% for approvals against 31.8% for the seasonally adjusted figures. The year-to-date increase was 20.9% for the trend series against 31.9% for the seasonally adjusted.
The second point to be made is that the action is still in existing homes, not new home building, despite the latter hitting a three-year high in September, according to the Housing Industry Association. It’s the surging price of existing homes in Sydney that is catching the eye at the moment as competition between different groups of investors and private buyers are running into each other.
That’s why Reserve Bank governor Glenn Stevens specifically mentioned Sydney as the hotbed of investor competition in <a href="https://www.rba.gov.au/speeches/2013/sp-gov-291013" target="_blank">remarks made in Sydney on Tuesday</a>:
<blockquote>
“Investor participation in housing in Sydney, in particular, is becoming noticeably stronger. Over the past year, the rate of finance approvals for this purpose has increased by 40%.”
</blockquote>
When Stevens singles out one particular market, it’s a good idea to pay attention.
ABS figures show investors now account for 53.2% of all loans in New South Wales. In August, they borrowed more than $3.7 billion to invest in property. And the <a href="https://www.rba.gov.au/statistics/frequency/fin-agg/2013/fin-agg-0913" target="_blank">RBA’s credit data for September</a>, released yesterday, also confirmed the sharp growth in investor lending. According to the bank, investor lending for households grew 0.6% in September for a fourth successive month. That an annual rate of 7.2%, or twice the overall rate of growth in private lending and 50% faster than the 4.8% annual growth rate in all home lending the year to September. That helped total lending grow slightly faster than the 4.2% rate in loans to owner-occupiers in the year to September.
Data today from RP Data-Rismark showed a 1.3% rise in house prices last month in eight capital cities. Prices were up 7.9% for the year to October?—?but Sydney house prices jumped 2.4% in October, according to the survey. Prices rose 1.2% in Melbourne and 1.4% in Brisbane. But they fell 2.3% in Hobart reflecting some of the highest unemployment in the country in some areas). Prices in Perth dipped 0.2% in October and the annual growth rate fell to 9.4%. But in a separate survey yesterday, RP Data pointed out that adjusted for inflation, house prices still had a way to go. And compared to the stockmarket, property prices are still well behind. The ASX 200, the main index, was up 17% in the 20 months to October 31, and more than 20% in the past year.
And there are anecdotal stories of strong investor demand from offshore. <a target="_blank" href="https://www.crikey.com.au/2013/10/29/tips-and-rumours-996/">Crikey reported a tip</a> earlier in the week of a house that sold for $1.5 million above the reserve price (it went for $5 million) thanks to a bid from an offshore investor. It is easier for foreigners investing $5 million or more in Australia to secure an Australian visa. On top of this, there are also stories that Meriton, the country’s biggest apartment builder, is receiving strong demand from offshore (mostly China) for home units off the plan.
This is the sort of detail, by the way, that gets ignored in one of our favourite sub-genres in local financial reporting?—?the slavish reporting of views on<a href="https://www.afr.com/p/business/companies/central_banks_in_denial_about_asset_n251DLS54X6OedKno7G6wK" target="_blank">the Australian property market by foreign analysts</a> who assume that whatever applies in the UK or the US automatically applies here and therefore Australia?—?in its entirety?—?must have a property bubble.
In fact, the RBA is focused on how low interest rates are driving new home construction (its intended policy goal, along with hopefully driving the Aussie dollar down) versus driving higher prices for existing stock, and in Sydney in particular, which is the country’s biggest market but also one where the previous state Labor government oversaw a collapse in residential building. Talk about bubbles misses the point that the central bank is trying to engineer a transition from an investment boom back to Australia’s normal housing-led growth.
It’s a very different policy challenge to one facing banks in the UK, Europe and the US, where the problem is to create and sustain any growth at all.
 
<hr>
 This article first appeared on <a target="_blank" href="https://www.crikey.com.au">Crikey</a>.
 
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Keep property in context: Market is in transition, not in a bubble

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We’ve seen a year’s supply of ice cream, and a number of other food-related marketing techniques when it comes to new developments, however GPC has gone one step further.
Rounding up six of Melbourne’s popular food trucks, the opening of Mason Point Display Suite this month will allow potential buyers to try a range of different foods – something said to be important to the north Melbourne crowd.
The “Urbane” Release Two, released in October, features 48 two- and three-bedroom apartments ranging from $323,000 upwards. There are also 16 two-bedroom townhouses from $409,000.
Construction will begin in early-2014, with completion for 2015.
On 16 November, launching Mason Point Display Suite, the food trucks will be available for those attending. There will also be a fairy floss machine, a bubble machine, a face painter and a balloon artist.
Charles Gibson, director of GPC, said that the display will also include architectural plans and pricing, a full showcase of the kitchen, bathroom and timber flooring and a fully interactive touchscreen.
“Representatives from the award-winning Jackson Clements Burrows Architects – the design team behind Mason Point - will also be on hand to meet with buyers and discuss elements of the apartments and town homes’ functional yet stylish, modern design,” said Gibson.
Food Trucks there on the day are White Guy Cooks Thai, Dos Diablos, Sliders on Tyres, Dhaba, Smokin’ Barry’s and Yogurrdiction.
In the past, a <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/ice-cream-giveaway-with-camperdown-cottage-offering/2013030559428">Camperdown property listed in March</a> was offering 52 two-litre tubs of ice cream with the purchase. More recently, in October, a property was offered with a<a target="_blank" href="https://www.propertyobserver.com.au/news/an-icecream-auction-incentive-to-entice-prospective-buyers/2013101665733"> year's supply of ice cream in Albert Park</a>.
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Food trucks latest marketing technique for developers

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Every property has a different level of risk and potential profit, and this can be the make-or-break of many investors' renovation strategies, according to author of The Insider's Guide to Renovating for Profit, Patrick Bright.
Renovators must ensure they're purchasing the right type of property to match their risk profile, urged Bright.
“This is important because while renovators want to maximise the return on the money they invest, they also want to be able to sleep at night," he said.
“In general apartments are low-risk because they're cheaper to buy and there's less renovating to do, which means less room for error."
However, he said, the risk and potential profit increases if renovators choose to move internal walls.
“Freestanding houses, semi-detached houses and terraces have higher risk which increases if there are added complexities such as Development Applications," he said.
With this in mind, investors will want to undertake a personal risk analysis before embarking on a renovation.
Considering how comfortable you are with losing money or having an outcome that doesn't match your expectations will put you in good stead if something doesn't stack up in the long run.
Both risk-averse and risk-taking investors should:
- Undertake extensive research
- Liaise with successful investors
- Work through steps methodically
- Consider appointing experts, such as a project manager, to advise
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Renovation success largely about attitude to risk: Patrick Bright

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My observation on Sydney is this - what can we really expect from an industry in which standards have been diminishing for some time?
Recently, I was called out to inspect a property that our office was to gain as a new management. It had been previously managed by a prominent agent from the local  area. However, prominence does not always reflect quality, and the standard of service.
The property
{yoogallery src=[images/stories/2013/11/01/edw]}
 
The property was a home built approximately 50 years ago. It was fibro, with a garage, and partly renovated. It was clean and tidy for the most part, but perhaps this has been what was needed for the agent to become complacent.
The issues, outside of the tenant’s living standards, are:
<ul>
<li>
No safety switches to the main electrical board;
</li>
<li>
Accumulation of mould around the perimeter in two bedroom ceilings;
</li>
<li>
No balustrades to the landings around the porch area exposing a four foot drop to a concrete slab.
</li>
</ul>
I warn you, if a landlord has these issues, they are a potential liability. For an untrained property manager who isn't aware, or looking, for the issues, they may not see them as a problem and will leave them unaddressed.
However, these were not even the most concerning problems that I found with this property.
<ul></ul>
The alarming issues were the following findings:
<ul>
<li>
The garage was converted to living quarters without any local government approvals;
</li>
<li>
The garage was not fitted with smoke alarms, although it was obvious someone was using it as a bedroom;
</li>
<li>
The rear garage door opening to the swimming pool area was not secure;
</li>
<li>
The main house smoke alarm had not worked for the last 18 months.
</li>
</ul>
The blame
While it's not about who blames who, it's important to think about. Where would the blame lie should anything happen? This is the key legal question in a dispute should someone suffer a loss or injury as a result of the state of the property, so you want to be asking it before anything does happen. 
 
So, who is at fault?
We would be quick to blame the landlord, from the property manager's position. However, the landlord may be ignorant of the situation and regulations.
Is ignorance really an excuse? This question prompts the following argument: both the tenant and the landlord are relying on the professional, the real estate agent. Can you see how convoluted the argument will be once it reaches the courts? And at what price?
The industry
 
In my personal opinion, the industry standards have weakened and have dropped through the basement in some areas of our industry.
Property management, an area close to my heart and where greater attention needs to be placed as we deal with people, has had the misfortune to being the most affected. Low standards have been allowed to creep into the industry.
Then there is the added misfortune of low fees being charged by agencies due to pressure from landlords and the competition around. This is adding to the phenomenon of offices reducing costs and employing very young and unqualified people as property managers or property officers. But can you blame the real estate agencies when it only takes a weekend course to obtain a property management certificate and you can reduce wages by employing younger agents?
This just about says it all, doesn’t it?
Where did the seasoned property managers go, the managers that were able to identify possible issues and deal with these on a preventative mandate as opposed to a reactive process, and why did they leave?
Unfortunately, most have left the industry to work on property sales, a straight forward job in most eyes - once sold you can forget about it.
Sad but true, most property managers have left due to landlord’s unwillingness to rectify issues. These issues cause long term issues for the property managers, and then the tenants take it personally. Then there is the economic strain that most offices cannot afford to pay seasoned property managers due to fees being so competitive.
The solution
This is perhaps the sixty four thousand dollar question, what is the solution?
My first call is for a greater distinction in certificates between 'property management agents' and 'sales agents'.
The second call is for local and state governments to seriously look at the current conditions of rental dwellings and adopt 'spot property audits' not audits on property files in agents' offices but rather, inspections of the actual properties being rented out.
Yes, it may be a pipe dream but do we have to wait until someone is seriously injured or dies before something is done? 
 
<hr>
 Edwin Almeida is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>. 
 
 
 
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Property management: Is your tenant living in squalor?

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Over the past twelve months 4.25% of all houses in Melbourne have been sold. While this result is lower than the very strong years of sales over 2007 and 2010, it still represents almost one in twenty houses.
The suburbs featuring the highest number of sales in raw terms are those in the growth areas. <a target="_blank" href="/news">Pakenham </a>tops the list, followed by <a target="_parent" href="/news">Point Cook</a>, <a target="_parent" href="/news">Berwick</a>, <a target="_blank" href="/news">Frankston</a> and <a target="_blank" href="/news">Craigieburn</a>.
Frankston is the wild card in the list as it is not a growth suburb. This is reflected in the fact that less than 5% of Frankston houses sold over the year. The remaining suburbs recorded over 5%.
Accounting for suburb size some of the newer suburbs top the list. These include <a target="_blank" href="/news">Wollert</a> were over one in eight homes sold followed by <a target="_blank" href="/news">Sandhurst</a>, <a target="_blank" href="/news">Lyndhurst</a>, <a target="_blank" href="/news">Brookfield</a> and <a target="_blank" href="/news">Cranbourne East</a>.
A more in depth analysis of the list shows that a few suburbs would be considered as ‘established’ but whose high proportion of sales shows they are undergoing substantial change through infill development or significant new estates. The five most significant of these are <a target="_blank" href="/news">Mount Martha</a>, <a target="_blank" href="/news">Oak Park</a>, <a target="_blank" href="/news">Pascoe Vale</a>, <a target="_blank" href="/news">Port Melbourne</a> and <a target="_blank" href="/news">Aberfedlie</a>.
In the city’s north two of these suburbs undergoing a comparatively high degree of change and where large volume of sales are taking place. The small but well priced suburb of Oak Park with only 1,700 houses has seen 100 properties sold while neighbouring Pascoe Vale which is more affordable, has seen 247 of its 4,314 sold.
Is it too late to decide to sell this year? 
Following the encouraging results from the biggest week in history in the Victoria property market at the end of October for the Victoria property market some intending vendors may be have asking if it’s too late to sell at auction this year.
With only seven weekends left in the year when an auction can realistically be held, a decision to list for sale would not leave much time for a marketing campaign to make the most of your homes assets.
The most important person for a vendor to consult in making that decision is their real estate agent. After all, they are the experts at marketing and selling property.
The key matters a real estate agent will consider will be the length of time needed to prepare a home for sale, the preparation of the marketing campaign including taking high quality photos, the writing, bookings and placement of the advertisement.
These factors need to precede the actual sales campaign and be well executed to maximise the sale value.
The real estate agent may also consider the volume and types of listings scheduled for the time required to hold the auction.
For those considering selling by private sale there is a useful guide of the average time taking to sell a house at the moment which is the RP Data time on market measure. In the month of September houses took an average of 43 days to sell and units took 47 days.
 
<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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