The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

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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More than a quarter of those aged 17 to 24 in Australia are not in full-time work or full-time study, according to a Council of Australian Governments (COAG) report released today.
In some states, like Queensland, South Australia and Tasmania, that figure edged closer to one in three. And among young people from disadvantaged backgrounds, that figure was above 40%.
The findings, gleaned from a report on education outcomes across Australia’s states and territories, reveal a difficult transition from school to employment.
The number of young people in full-time work or employment has declined 1.2% since COAG last looked at the issue in the relative boom-times of 2006. Even then, however, the figures showed 26.1% of young people in that age bracket were not in full-time work or education. Now 27.3% of Australia’s young people fit into this category, which the report states puts them at a greater risk of an insecure future.
The falling labour force participation by young people was partially offset in COAG’s figures by a rise in young people in full-time education. The proportion of 17 to 24 year olds engaged in full-time study increased from 28.6% in 2006 to 32% in 2011.
<a target="_blank" href="https://theconversation.com/coag-education-reports-show-early-childhood-and-year-12-are-key-19611">Speaking to The Conversation,</a> Greg Craven, deputy chairman of the COAG reform council and vice-chancellor at Australian Catholic University, said this was of concern.
“What happens to young people when they leave school is crucial to how we meet the future demands of our economy – and to the quality of their lives,” he said, crediting the worsening situation, in part, with the lingering effects of the global financial crisis.
The Australian Chamber of Commerce and Industry said the release highlights “the immediate need for a concerted effort by both state and national governments to boost youth employment and put skills development integrated with work for young Australians back on the national agenda”.
The employer body pointed to the <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/33180-Stop-cutting-apprenticeships,-industry-groups-tell-politicians">removal of government incentives around apprenticeships</a> as having caused a drop in apprenticeship numbers. “The apprenticeship has been neglected by government and needs to be revived so we do not create a lost generation of Australians who missed out on opportunities to develop skills that enable them to secure sustainable employment.”
Young unemployment is regularly higher than Australia’s overall unemployment rate. According to the <a target="_blank" href="https://www.theaustralian.com.au/national-affairs/high-rate-of-youth-unemployment-will-hurt-future-productivity/story-fn717l4s-1226733071548">Australian Bureau of Statistics figures</a>, which measure the number of young people 15 to 19 years old who are not studying and are actively looking for work, 25.5% of young people are unemployed. Total unemployment in Australia is 5.7%.
The issue of youth unemployment came up in the recent federal election campaign. The then-government considered forcing young job seekers into <a target="_blank" href="https://www.smh.com.au/national/alp-eyes-youth-dole-boot-camps-20130727-2qrmk">army-style youth boot camps</a> before giving them the dole, while the Liberal-National coalition went to the election with <a target="_blank" href="https://www.dailytelegraph.com.au/tony-abbotts-message-clean-up-your-acts-or-do-without-dole/story-e6freuy9-1226589493861">a policy</a> to suspend dole payments for those under 30 if unskilled work is available in their area.

<hr>
This article first appeared on <a target="_parent" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
 
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mrobin-TVRYiru7si

Youth unemployment stats: one in four young Australians not in full-time work or study

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A new crisis-scandal-outrage has emerged in real estate. It’s the issue of Chinese investors buying Australian real estate.
This has brought out all the usual hysteria and misinformation. They’re taking over Australia; we’re being invaded by stealth; they’re squeezing out first-home buyers; they’re creating a bubble; etc, etc.
We have wannabe buyers being outbid at auction and complaining because the successful buyers were Asian-looking and therefore, according to the aggrieved parties, Chinese investors. They could be third-generation Australians, for all they know.
It’s reminiscent of the eighties, when high levels of Japanese investment allowed newspapers to whip up a xenophobic frenzy.
Louis Christopher, managing director of SQM Research, this week described reaction to Chinese investment in similar terms. “This current fear that the Chinese might buy all our property is nothing but xenophobia,” he said.
There’s only one aspect of this that’s in any way outrageous – and that is the way Australian developers and their marketers are peddling bad real estate at inflated prices to distant investors.
There’s nothing new in this. Developers have always targeted distant investors to, firstly, get rid of unsold dwellings for which there are no genuine local buyers – and, secondly, to go a step further and create new stock specifically to sell to distant investors, notwithstanding the local over-supply or depressed market.
In the past, the victims have been found interstate, out west or in New Zealand. Now Asia is being targeted, especially China.
Marketing teams are taking roadshows to China and using deception to induce investors there to buy highrise apartments or house and land packages in poorly-performing markets.
There’s no crisis here, but one might emerge if Australian investors follow the advice that’s starting to emerge – namely, that they should be buying where the Chinese are buying.
I would suggest Australian buyers do the opposite. Avoid like the plague any markets being pitched to the Chinese. They’re being sold product in oversupplied markets, usually at prices above true market value. They’re not markets a sensible investor would want to be in.
The Gold Coast, often the birthplace of Australia’s worst property scams, is emitting propaganda along these lines: Australians should be buying Gold Coast high-rise because the Chinese are, and we all know how much research the Chinese do!
This is as bad as investment advice gets. Many foreign investors are not undertaking independent research – they’re being fed lies and propaganda disguised as research.
It’s a situation that’s adding to the already-serious glut of apartments in the inner-city areas of Melbourne. Current vacancy rates, according to SQM Research, are 7% for the CBD, 7.2% for Docklands and 7.8% for Southbank, but they’re continuing to build more and more apartments in these areas. This is happening because developers are able to flog them to Chinese and other Asian buyers.
We are likely to see a similar scenario in inner-city Sydney for the same reasons.
A tremendous shake-out is looming in some of these markets, although it may take a few years to materialise.
 
<hr>
 Terry Ryder is the founder of <a style="font-size: 14px;" target="_blank" href="https://www.hotspotting.com.au/" rel="nofollow">hotspotting.com.au</a> and you can contact Terry via <a href="https://mailto:%20ryder@hotspotting.com.au" target="_blank">email</a> or on <a style="font-size: 14px;" href="https://twitter.com/hotspotting" target="_blank">Twitter</a>.
 
 
 
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terryryder-YECXbqmri2

Australians shouldn't fear Chinese buyers, but should fear the developers marketing to them

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One of the most important steps you take, very early on in your investment career, is to identify and decide what type or class of investment is going to work best for you. Those who don't seek professional advisers conduct their own intensive research and due diligence. Basically, those who educate themselves and learn as much as possible will always have the best start to investing compared to those who don’t.
But beyond that, it is those individuals who are able to maintain a momentum over the years – and not just treat their investing life as a ‘set and forget’ approach that should be left to gather dust – who fare better as investors and are almost always rewarded more handsomely for it.
Before even thinking specifically about property as a class, you need to consider it against other investment classes, to work out if it is right for you. Perhaps the best way to do this is to work backwards. Start first by giving yourself answers to the below three main investment factors:
<ol>
<li>
Personal life timing and situational variables - These are things like your current age, income and means, borrowing capacity to invest, perhaps marriage or family commitment status and so on – how will these factors affect my time and energy I can put into any investment?
</li>
<li>
Knowledge and time limits - Your previous exposure to existing investment classes and/or your willingness to learn, and level of pro-activity and effort you can feasibly to put into researching and educating yourself with – how committed am I and how much time am I willing to dedicate?
</li>
<li>
Your risk profile - Your level of risk you are willing to live with, remembering that all investments will always carry some degree of risk with it. Can I sleep easily at night, knowing a portion of my savings are tied up in something that is constantly changing?
</li>
</ol>
The investment class you decide on will be shortlisted simply by the way you answer the three above areas.
I’ll give a brief overview of the main investment classes that many people choose from. Through this, it may give you an idea of the commitment level involved, and top-line risks associated with some of the major investment classes. Though there are many more investment types beyond what is listed, it will give you a good starting place to learn more about asset classes. As mentioned above, seeking the advice of a professional adviser is arguably one of the best courses of action you can take.
Shares:
-          Easy entry/exit process, and minimal costs to do so;
-          Works well for investors with not much starting capital – you can purchase shares online yourself through many online platforms such as E*Trade, iShares, and CommSec;
-          Risk flexibility is possible because you can opt for ‘safer’ blue-chip, ASX 200 companies with high pedigree and proven long term performance. Or, if your risk profile is higher, you can opt for more dynamic start-up or rapid-growth companies where the risk is greater, but so is the return
-          Shares do not work well for those who will have trouble getting to sleep each day without some kind of ‘status update’ from their share portfolio. Whilst such updates are available in real-time, checking them frequently daily is probably not a good mental space to be in, if you are the instant-gratification persona type.
Gold:
-          Finite global supply, increasing global demand. This makes for a solid investment type;
-          Risk profile is moderate for gold, as macro-economic market influences can greatly skew or influence performance of gold at any moment;
-          Gold used to be one of the safest investment classes. However, its connection with share market volatility leaves it open to greater influence and fluctuation;
-          Despite this, gold is a proven performer when the global economy weakens – and especially when major currencies weaken.
Cash and fixed interest accounts:
-          One of the ‘safer’ investment classes mainly because these come with the assurance and backing of financial institutions such as the big-four banks;
-          Fixed interest accounts come mostly in the form of government and corporate bonds, effectively operating in the same way as loans;
-          Interest payments are regular, enabling investors to re-invest the proceeds and add a compounded growth effect to their investment;
-          With lower risk does come lower reward as earnings over time are more modest in comparison to other asset classes such as gold, property, and shares.
Property:
-          There are a number of sub-classes of property. Most people immediately think ‘buying a residential property’ as property investment, and for most people this is true;
-          However, this class includes commercial and industrial properties as well (full ownership per investor), as well as investing in property securities, whereby an investor commits to a larger pool of like-minded investors who invest in a group that secures hundreds and thousands of various properties across different property classes;
-          Whatever the investment approach, property is certainly a medium-long term investment class for most people as the entry and exit costs and process and expensive and slow. This means if you were to get in and then out again within a year administrative fees would likely wipe out any gains made;
-          With the exception of property development, those who are looking to make a quick buck are out of luck here. As mentioned above, the entry and exit costs for single-title-owner properties are to prohibitive to do so without making a complete loss on the investment overall. So this is a caution to those who prefer a faster paced performance class like shares.
So why choose property over other classes?
This is a question open entirely to different views, opinions, and belief. In short, property works for those who find it suits their risk profile and objectives, over a medium-to-long period of time. It won’t work for those with a get rich quickmindset. Personally, I value the complete ownership of a property, as the key unique advantage of this class. When I own a house or apartment, I own it entirely and am able to make all of the operational decisions on that property.
This is different to, say, purchasing shares in just one company, like, for example, McDonald’s. You may have bought your shares with the understanding that McDonald’s is a sound investment due to the products it produces being in high demand by consumers. But what if, overnight, McDonald’s chose to make all restaurants vegetarian-only? As an shareholding investor, you have no control over how the company actually operates. McDonald’s could lose two thirds of its customer base overnight because of the decision, and you as a shareholder would suffer the loss. An extreme and unlikely example, sure, however when blue-chip companies acquire and merge with others, changes to the company product lines and demand often result.
With property, even though operational decisions (for apartments and units anyway) are made in collaboration with a majority-agreed strata committee, this is usually on a much smaller scale, meaning your voice in any operating decision changes is that much louder. With houses of course, investors have 100% decision-making control over the ongoing management of that asset. So, with the right kinds of property purchases, an investor is able to have a real voice in the management of the running of the investment.
Considering the investment class that will work best for you is all about knowing the facts about each class and making an informed decision before diving into anything. Do not rely solely upon the verbal advice of friends or passing comments at dinner parties; do you  due diligence, seek professional insights, and go from there.
 
<hr>
 Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://www.propertycorrespondent.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>
 
 
 
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cmcevoy-Go82SmsJA9

Is property the right investment class for you?

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I found a really cool message on YouTube from a young entrepreneur called Vik Nithy about procrastination.  I was web surfing instead of writing this article...I guess I was procrastinating!
I think procrastination can be our number one enemy when it comes to moving forward not only on a property transaction or strategy but in life in general.
Procrastination is choosing whether you’ll do it now or do it later.
Often our heads are in conflict – lie on the lounge or research that property deal?  Go to the beach or phone the solicitor to discuss the contract? Catch up with friends or attend that open house?
Mostly we procrastinate on things that we are not sure about or committed to.  From my own perspective, I never procrastinate if it is work (well...maybe over some little things!) or investment related because I love what I’m doing in these areas and I have specific goals. The other reason is that if I procrastinate over a potential development site, someone else will get it.  There is no time to waste when you’ve located a good deal.
But I’ve been going through some procrastination lately on another level and it’s because I really have not known what I want. This has prompted me to delve deeper and find out why – identify the reason I’m avoiding things.
That’s the secret...knowing what you want. Sounds easy and it can be if there is passion and belief behind what you do.  If you can sit down and plan your goals and make a commitment to them, then there will be less what <a target="_blank" href="https://www.youtube.com/watch?v=WD440CY2Vs0">Vik calls “monkey mind”</a>.
“Monkey mind” is the part of your brain, or the voice in your head that reacts to a threatening stimulus. Perhaps, it’s really not knowing where to start researching for your property investment or questioning whether you should actually buy the property you’ve been researching for weeks?  Or if you should develop one of your properties because you know it will add value but you just don’t know where to start.
Decision making shuts down procrastination.
Being focussed and motivated is another weapon you can use. I always come back to the core reason I’m investing in property which is to set myself up for retirement and there really is no time to waste. My financial planner says we’ll need around a million dollars in our superannuation to live comfortably - not luxuriously - when we retire.
Procrastination is an anxiety response. Make a decision and have faith in yourself and there will be no procrastination.
Ask “What is it that you’re afraid of?”  Once you can identify your fears, you can overrule them with facts.
For instance, “I’m afraid I’ll lose my money” Answer: if you’ve researched well, you will only lose money if you sell at a loss. If you have the capacity to hold over the long term – ten years or more - then generally you will be OK, as property in good locations doubles in value every ten years.
I love this quote by Napoleon Hill: “Don’t wait the time will never be just right.” 
I can confirm this with my own investments; in fact some have tripled in value over this time. But to take out any fear, make sure the investment is within your means.
But often our means can stretch if we need it to. As Oscar Wilde said “Anyone who lives within their means suffers from a lack of imagination.”  There is always ways of making more money.  If your goals are to build wealth then you may need to put yourself out there, we can usually cut spending in other areas or find new ways to support our investment.
We must plan. Write down what you are expecting from the investment and remember that if things don’t turn out the way you wanted, failure is a positive learning experience. It’s better to learn from our mistakes than not to have tried at all.  “Anyone who has never made a mistake has never tried anything new.” - Albert Einstein
If you take on this attitude, fear will dissipate, procrastination will disappear and you will move in the direction of your goals and dreams.
 
<hr>
 Jo Chivers is director of <a title="Property Bloom" href="https://www.propertybloom.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Property Bloom</a>, which manages property development.
 
Check out our new website <a href="https://www.propertybloom.com.au/">www.propertybloom.com.au</a>.
 
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Planning, research and then taking action are the keys to successful investing

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Choosing the right property manager can be a difficult process for many investors, particularly if you're in an area where they are few and far between, such as remote regional locations.
Our tweet of the day, from Real Estate Mondo, has a look at some of the things you must remember when choosing this expert.
<blockquote class="twitter-tweet">
How to Find an Awesome Property Manager <a target="_blank" href="https://t.co/FRuDImDcId">https://t.co/FRuDImDcId</a>
— Real Estate Mondo (@RealEstateMondo) <a target="_blank" href="https://www.propertyobserver.com.au/https://twitter.com/RealEstateMondo/statuses/395643036430249984">October 30, 2013</a>
</blockquote>
Adding onto this list, Property Observer also recommends asking for copies of their inspection reports, and quizzing property managers on their processes and approach should situations not turn out favourably. As you are, essentially, hiring this person - treat it like an interview!
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jduke-EHk3XBmHkn

Finding the best property manager

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With many of Australia's CBD office markets beset with high vacancies, particularly at the secondary level, new research has shown that the case for hotel conversion has never been stronger.

A new report from Colliers International said that the tightly held ownership of Australian capital city hotels was "the impetus for investors to examine the prospect of converting office buildings to hotel accommodation."
At present, it said there was "window of opportunity" for office conversion due to hotel values rising relative to B-grade and lower office space, which was suffering from rising vacancy and escalating incentives.  
"Hotel investors clearly have a preference for existing stock but there is presently a lack of hotels for sale so they are being forced to look at alternative options," said Stephen Burt, Colliers managing director of hotels.
He believes that well located, existing B-grade or C-grade office buildings burdened by smaller floor plates, central core and poor lease tenure ironically offered the key attributes for a good hotel conversion.
The research highlights that the feasibility of office conversion is particularly attractive in Brisbane and Sydney.
It also noted that over the year to June 2013, Investment Property Databank figures report that returns generated from the hotel sector halved to 6.3%, down from 12.8% the previous year.
However, over the last three years returns from the hotel sector averaged 11.8% compared with 9.5% for retail, 10.0% for office and 9.7% for the industrial sector.
Strong interest from sovereign wealth funds and global institutional investor has seen transaction activity during 2013 the strongest since 2007. Total hotel sales activity for the year-to-date is in excess of $1.550 billion, a 24% jump over 2012. But the figure was bolstered by just two sales - the Tourism Asset Holdings Limited portfolio for a reported amount of about $800 million and the Four Seasons Hotel Sydney for $340 million.
Colliers also noted that over the year to June, the major city hotel markets it monitored saw average revenue per available room (RevPAR) rise by 2.5%.            
   
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Case for office to hotel conversion never been stronger

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China's love affair with Australian real estate market is growing, with at least $1.5 billion set to be invested locally in over the coming years.
Recent research from CBRE revealed that Chinese insurance funds, alone, had about US$14 billion available for overseas real estate investment. Australia was among a handful of countries it identified as "key targets" for that money.
Underpinning the attraction said Cushman &amp; Wakefield director of investment sales, Mr Tony Dixon was that "Australia was high yielding".
Yields had been compressing in other regions of the world, he said, but that it hadn’t happened to the same extent in Australia. Political stability, transparency and the positive property fundamentals were also appealing.
In the last 12 months, he estimates more than $1 billion has been spent by Chinese investors buying local real estate.
In a paper last month on Chinese investment in Australian property, Colliers International identified that investment was coming from four major sources: Banks and financial institutions; Developers with global ambitions;  large state-owned enterprises (SOEs) and China sovereign wealth funds (SWFs) and high net worth individuals.
The Colliers paper also said that while the increase in Chinese investment in the Australian residential property market has been widely reported, statistics show that Chinese investors are putting their money into a wide range of commercial property assets.
“While first time private investors may start by looking at residential investments, the more experienced investors have a broader appetite, and we’re receiving interest across a range of asset classes from farmland and wineries through to retirement, hotel, retail and large office building assets,” said Steam Leung, director of investment sales at Colliers International, who heads up the company’s Asian Division.
“However the most common enquiries are seeking Commercial A and B-grade offices and residential sites.”
Colliers estimates that Chinese investors have spent more than $600 million in the year to date on residential development sites in Sydney alone, with plans for almost 5,000 units on these sites.
Mr Dixon said that the indication from Chinese groups was that at least a further $1.5 billion could be invested in Australian real estate. But he emphasised that "if deals show themselves, they will do a deal".
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Australia identified as a 'key target' by Chinese insurance funds

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On this week’s Purchase or Pass, Chris Gray is joined by John Edwards of Residex to take a look at a property whose strata’s administration fund is deep in the red and discuss whether or not it would still qualify as a worthy purchase.
It is a two-bedroom, one-bath unit in a block of 21 units, 8.6 kilometres from the Sydney CBD and under a kilometre to the local action. The main question is that while the sinking fund has $36,000 in it, the administration fund is $30,000 in debt and the strata levies have recently been upped to $1,250 per quarter. There have been some water issues and there have been some expensive contractors looking after the building and gardens.
{qtube vid:=BYBcC6MKQx8}
Chris Gray: Now, obviously for the administration fund, and that’s the fund that pays all the day-to-day bills and that’s $30,000 in debt. What are your thoughts on that? That’s usually a pretty scary warning sign straight away isn’t it?
John Edwards: Yes, I think there is probably something else worthy of looking at that we didn’t talk about there and that is, looking at the people that are actually in that strata unit block, are they elderly people? Or are they young people? Or young professional people? If they’re elderly people, it’s quite possible that they don’t have the resources behind them to fund that strata title and do the things that they really need to do. So you need to take some care and actually look at the people in the dwelling. The other thing in this is to be a little cautious about making sure the structure of such a building was good, and that building looks quite fine.
Chris Gray: So again, you have the building and pest inspections and the strata inspections as well. With the deficient, I guess the main thing to start with is, the actual overall funds are $6,000 in credit. So I’ve had a lot of buildings that have been taking the money from the wrong account, overall at least it is positive. One of the things that we actually found through the strata report is that a normal levy was about to come in, so if you have 21 people all paying $1,250, that almost puts it back to zero in one levy.
John Edwards: So this particular strata title looks ok and I don’t think it’s an issue here. However, just remember in all states of Australia, not all strata titles actually have to have management funds or sinking funds. You go to Victoria and small blocks of units don’t, so take some care when you get into those sorts of positions with some units. This is all about research.
 
Chris Gray: Another thing that we thought about is, these guys have decided to up it, say from normally $750 is normally what I would pay on a strata levy. They’ve said right, lets put an extra $500 a quarter in, because over the next five or six levies, we’re going to raise an extra $3,000 per unit, which is $60,000, that goes from $30,000 debit to $30,000 credit. Or, there’s an alternative, they could just raise $3,000 special levy each and then suddenly they’re $60,000 up.
John Edwards: And there’s another alternative; they could go and borrow money. A strata title can actually go and borrow money to actually manage short falls that its got. I don’t think that overall this is a big problem.
Chris Gray: The reason I’ve bought it up is I think the average person would see that as a major issue and certainly when you pass the strata report onto your solicitor, your solicitor would be going “no no, don’t go anywhere near this, it’s obviously badly managed.” So reading into things, the other things we found out was that they’d actually sacked a lot of the contractors and then found some cheaper ones, so a lot of the overrunning bills and the rest of it they’ve had the last few years maybe wouldn’t happen either.
John Edwards: And that so often happens in strata titles, you find that all contractors seem to think that they can actually hit the strata titles very hard and it’s a warning to all title strata managers, they really need to watch they’re contractors new expenses.
Chris Gray: So purchase or pass for you?
John Edwards: I would still be interested in this property.
Chris Gray: Good stuff, and look for me, I think the strata fund issue is a minor one and is of no major consequence. However, most buyers wouldn’t be able to read into it and would probably be scared off by it, but it could be fixed by $3,000 a unit. So, I would definitely make a purchase as I think it’s a great opportunity to buy it at a good price for a reasonable property where other people are scared off.
John Edwards: And a gem of a negotiation position.
Chris Gray: Exactly, a great negotiation position even though it’s a booming market at the moment or a heated market.
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Strata's administration fund deep in the red in Coogee: Purchase or Pass?

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The debate around underquoting is never ending because the focus is on the vendor’s reserve price.
Many people have suggested that vendors should be made to disclose the reserve prior to auction. However this would fly in the face of very robust auction laws that state a vendor has the right to withdraw a property from sale at anytime.  
Legislating what the agent must do is one thing but making a law that binds the vendor is fraught with danger.
The vendor is in complete control of the reserve and agents who do underquote are able to hide behind their vendor’s instructions. This makes the current laws around underquoting very difficult and costly to implement. They are in the best case weak and at worst they are unenforceable.
I believe the solution to the underquoting does not lie in using the stick of law but rather the empowerment of knowledge.
The benefit of a public auction for a vendor is they give themselves the best opportunity to maximize the sale price.
The trade-off should be vendors loose their right to privacy. All results should be in the public domain so future buyers can gauge where the market is.
However vendors currently have the right to not disclose the result. This means they can have their cake and eat it too while purchasers are left in the dark.
Take for example the sale of this one-bedroom apartment at <a target="_blank" href="https://www.realestate.com.au/property-apartment-vic-hawthorn+east-115013031">3/1 Brookfield Court, Hawthorn East</a> that went to auction on Saturday.
{yoogallery src=[images/stories/2013/10/30/haw]}
The property was advertised to sell for between $300,000 to $320,000 and as the auction progressed multiple bidders competed. It sold under the hammer in a public forum but when the auction results were released the following day it was reported as undisclosed.
<img alt="hawthorn_oct_30_chart" height="295" width="470" src="/images/stories/2013/10/30/hawthorn_oct_30_chart.png">
If you were able to attend this public auction you would know the property sold for $408,000. However if you were not there this information would be locked away and only available to licensed real estate agents.  
The next time a comparable one-bedroom apartment comes onto the market and is advertised at $300,000 to $320,000 purchases will not be able to source this valuable information.
The logic behind this bizarre state of affairs is due to privacy laws that allow vendors to keep the result out of the public domain. However if a vendor decides to sell their property by public auction I think they have should have waived their rights to privacy.
In some cases it is the agent that keeps auction results under wraps because it means people who want to know what it sold for will call them. This is a lead generation tool for agents as the first thing they ask is ‘are you looking to sell a property?’
If the real estate industry really wants to stamp out the negative effects of underquoting, either real or perceived, they need to be more transparent.
The answer to underquoting is simple. Make agents disclose all results within 24 hours of the auction and make this information either freely or cost effectively available to purchasers.
This will give purchasers the knowledge they need and make price quotes redundant.

<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

Underquoting: the clear and transparent solution

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The glut of office sublease space facing most Australian capital cities appears to have peaked.
A national review of the sublease office market by CBRE, titled Sublease Barometers - showed that the amount of sublease space is hovering between 70,000 square metres and 80,000 square metres in Sydney, Melbourne, Brisbane and Perth.
And while the figures are above historic average, the expectation was that no significant tranches of new sublease space were expected to come to the market in the near future.
<img src="/images/stories/2013/10/29/chart_of_the_week_oct_29.jpg" width="470" height="250" alt="chart_of_the_week_oct_29">
Source: CBRE
CBRE regional director, office services, Andrew Tracey pointed out that "much of the available stock is subject to very short lease tails with expiries in 2014 and 2015." 
"This is more of a deferred direct hidden vacancy issue given the inherent difficulty in leasing space with less than a three year lease expiry.
"Much of this stock is expected to revert back to direct vacancy, which will significantly reduce the volume of available sublease space."
In short, CBRE believes that the availability of office sublease space nationally is likely to have peaked
In assessing the state of the national office sublease market, The Sublease Barometers tracked both the volume of sublease space, the trends occurring within different industry groups and market sectors in the major capital city markets.
The results varied significantly between the small and bigger cities. Canberra recorded the least sublease space available at just 8,553 square metres in September. Conditions are expected to change any day as various government departments are restructured, leading to public sector rationalisation.
Market influencers also varied by city. It said the mining sector, as expected, had a much more significant influence on the Perth and Brisbane markets given the recent slowdown in this sector to which both cities have a high exposure.
At the same time, Brisbane’s high exposure to government tenants also resulted in that city being hit by Queensland state government job cuts and consolidation, with almost 2,500 full-time equivalent jobs in inner Brisbane cut from the Queensland public service in 2013, CBRE said.
While Sydney's high exposure to the finance industry saw it hit hard by the low sentiment in that sector.
But Mr Tracey noted that employment in the Sydney finance and insurance sector had increased by 4.5% in the September quarter, surpassing the national figure of 0.4%.
"With this sector being the main contributor of sublease space, overall availabilities may start to decline as business sentiment improves,” he said.
He concluded by saying that the national office leasing market was expected to show signs of improvement in the second half of 2014 and early 2015 as business confidence improved.    
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