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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Investors’ insatiable appetite for prime retail real estate is set see investment sales in the sector produce new record highs this year.
This week alone, more than $120 million worth of retail property assets changed hands in Sydney and Adelaide.
The high-profile Oxford Square commercial retail complex in Sydney's CBD sold for $62.7 million to the Australian Property Opportunities Fund.
<img alt="oxford_square_oct_23_one" height="313" width="470" src="/images/stories/2013/10/23/oxford_square_oct_23_one.jpg">
Photo: Oxford Square, Darlinghurst
Oxford Square is fully leased, with a net income of about $5,025,000 per annum. The site has a 48-metre frontage to Oxford Street and a total gross lettable area of 12,088 square metres.
Jones Lang LaSalle’s national head of retail investments Simon Rooney and manager of NSW retail investment sales Luke Harris oversaw the sale on behalf of a local private investor.
"While major deals above a$150 million still dominate the overall market, we’re also seeing an uplift in activity in the $50-150 million bracket this year", said Rooney, citing increased demand from the likes of syndicators and boutique fund managers
Such is the high level of demand that Rooney said including this most recent major sale, total retail transactions were at $5.3 billion.
"The current pace of activity suggests retail investment volumes are on track to produce a new record high in 2013, above the $6.5 billion recorded in 2012,” he said.
In a separate transaction, Charter Hall Retail REIT has acquired the Southgate Plaza in Adelaide's Morphett Vale for $60 million.
<img alt="morphett_oct_23_one" height="251" width="470" src="/images/stories/2013/10/23/morphett_oct_23_one.jpg">
Photo: Southgate Plaza, Morphett Vale
The plaza is located 21 kilometres south-west of the Adelaide CBD and is anchored by a recently expanded Target store and a refurbished Coles supermarket.
JLL's Simon Rooney also negotiated the Southgate deal. ISPT was the vendor.
Total sub-regional transactions for 2013 are now at $963.7 million year to date. That compares to $983.2 million in 2012.
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Record highs for prime retail investment sales

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After earlier this week sharing his<a href="https://www.propertyobserver.com.au/landlords/simon-buckingham-s-top-10-things-to-look-for-in-an-investment-property/2013102265855?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observations" target="_blank"> top 10 things which he looks for in an investment property</a>, director and RESULTS coach of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.resultsmentoring.com/">RESULTS Mentoring</a>, Simon Buckingham, followed up with his 10 investor pitfalls. 
 1. Believing the myth that property always goes up in value.
Many property spruikers still promote the idea that that property doubles in value every seven-10 years. But any historical study of actual median price movements demonstrates that this isn’t the case. Prices tend to go up in short bursts, and only about 30% of the time.
In fact there can be long periods when property prices in any given suburb are flat or even fall. Research into local market dynamics is essential to avoid picking an area where prices are more likely to trend sideways or fall in the near term, and to have the best likelihood to buying in areas that are going to increase in value.
2. Believing what you’re told by someone with a vested interest in selling you a property.
If someone is recommending that you buy a particular property, ask yourself: What’s in it for them? Do they really have your best interest at heart, or are the more focussed on the money they’ll make if you buy one of their properties? Remember, a real estate agent, developer or buyer’s agent will make money whether or not the property you buy through them actually meets your personal financial needs.
3. Buying on emotion, instead of research and due diligence.
This is especially a danger at auctions, because the entire auction process is designed to play on the emotions of the buyer by creating a competition where the highest bidder is the “winner” (Congratulations! You’ve just paid too much for your property!)
Always carry out due diligence before committing to any property purchase. This means examining recent comparable sales, crunching the numbers to understand the potential for profit in the deal, working out your maximum purchase price, and checking out the risks.
4. Buying a property because “it’s a bargain!”
A property that appears cheap, may be cheap for a good reason. There could be expensive structural issues, high-tension power lines overhead, an old mine under the backyard, or the “neighbours from hell” next door. Always carry out due diligence to check whether a “bargain” property really is the deal of a lifetime, or is actually a disaster waiting to happen.
5. Investing in property primarily to “save tax”
It’s not really hard to save tax… all you need to do is make a loss, and then claim that loss as a tax deduction! If your main reason for buying a property is to get a tax saving (for example, through negative gearing), then you’ve missed the whole point of investing… which is surely to make money rather than lose it! A tax saving doesn’t turn a bad deal into a good investment. Treat any tax savings as a bonus – not the sole reason to buy a property. 
 6. Failing to properly research the area in which you plan to purchase.
Invest in the wrong area and you may find that you’ve just bought into a suburb that is going to go nowhere, or worse, decline in value. Why would you want to buy and hold a property in a suburb where values were going backwards? 
Find out about local population trends, housing supply and vacancy rates. A falling population will undermine property values as people (and money) leave the area, and vacancy rates increase. Prices tend to rise slower in areas where plenty of new houses or units are being built, especially if the supply of new housing outstrips the rate at which the population is increasing. This is a common issue with large new housing estates and areas with many high-density apartments.
7. Entering into an unconditional contract to buy a property, without first obtaining finance approval. 
If your contract to purchase a piece of real estate is ‘unconditional’ and you can’t complete settlement because you’re unable to get a loan, then you’ll probably lose your deposit (and possibly more).
8. Omitting to undertake a building and pest inspection on a property before buying.
Unless you are a builder, you could easily miss costly problems with the physical dwelling, like a leaky roof, damaged foundations, a termite infestation or worse!  What sounded like a “bargain” at the time could rapidly become a far more expensive money-pit because you didn’t get it properly checked out by professional building and pest inspectors.
9. Buying a property after a 15 minute inspection, or worse, site-unseen.
It’s scary to think that most investors spend more time deliberating over a new pair of shoes for $100 than they do on evaluating an investment property for $500,000! If you’re going to invest hundreds of thousands of dollars in a property, do more than just looking at photos on the internet or attending a 15 minute open-for-inspection.
Invest a little time and money to properly check out both the property and the neighbourhood. Otherwise you might find you’ve just bought the best property on the worst street, right next door to the local “crack house”! And remember, photos often lie. 
 10. Listening to the opinions of people with little or no actual property investing experience.
Only ever take property investing advice from those who can demonstrate they have experience in the kind of property investing strategies you’re interested in, and who have a track record of success. Do not listen to the opinions of those who have never invested in property before, or are not investing in the current market.
 
<hr>
 Simon Buckingham is director and RESULTS coach of <a rel="nofollow" href="https://www.resultsmentoring.com/" target="_blank">RESULTS Mentoring</a> as well as the author of The Real Deal: Property Invest Your Way To Financial Freedom.
 
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Simon Buckingham's top 10 investor pitfalls

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Ever wondered why agents underquote? The simple answer is because it works. This may not be a popular view of underquoting and as frustrating as it may be, underquoting is a necessary evil in Melbourne’s auction system.  
Growth in property prices this year has highlighted the widespread practice of underquoting and the frustration of buyers who miss out when properties sell for much more than the advertised estimate.  
Ironically, the practice that frustrates buyers is the same one that enables the auction system to work in the first place.  
When a real estate agent auctions a property, the vendor is paying them a fee to achieve the highest possible price in the prevailing market conditions. To achieve this, the agent must do their utmost to maximise the intensity of competition on auction day.  
At any given auction the bidders will have a range of spending limits. Some limits may be close to the advertised sale price estimate, whilst others may be much higher. By competing in the auction up to their respective price limits, each underbidder plays a vital role by increasing the intensity of competition.  
Although some buyers fall by the wayside when bidding goes beyond their limit, each one plays a part in pushing the bidding higher and, ultimately, determining the final sale price.  
Even if the agent researches the sales results of comparable properties and advertises a price estimate that they genuinely believe is realistic, there’s no guarantee that the property at hand will sell within that range.  
Therefore, in a free market economy, advertised price estimates and sales results for comparable properties should be taken as guides, not ironclad predictors, of the actual sale price a particular property will achieve. Ultimately, it’s the different spending limits of each bidder and the intensity of competition that count on auction day.  
As I see it, the real problem isn’t underquoting per se, but the public’s (understandable) misconception that an advertised price estimate is the level at which the property is likely to sell. In fact, the advertised estimate is a marketing tool; a way of drumming up interest from a wide range of buyers to create competition on auction day and maximise the eventual sale price.  
It’s the old adage: “Quote ‘em high, watch them die. Quote ‘em low, watch ‘em go.”  
The rationale behind taking an asset to auction — whether it’s a property, a work of art or even a consumer item on humble old eBay — is to test the market. Unlike a private sale, where the vendor advertises a clear price at which they’re prepared to negotiate, auctions put the onus on the purchaser. They’re the vendor’s way of saying, “Sure, I know the price I’d like to achieve, but I want you to tell me what you think it is worth.”  
The public’s misconception about the purpose of advertised price estimates highlights another equally important issue — the shortage of supply relative to demand, particularly in the inner suburbs where most auctions take place. Buyers who bid there encounter the lowest ratio of supply relative to demand, and therefore the strongest competition from other bidders. In this situation, they must accept that a greater possibility of failure is a by-product of their participation.  
In a perverse way, underquoting works because it brings in bidders who can’t afford the property — encouraging competition and driving up the eventual sale price. When transacting a privately owned asset in a free market economy, the highest bidder wins. The fact that some buyers will miss out is an unfortunate fact of life.  
 
<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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Underquoting - the auction system’s necessary evil: Mark Armstrong

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Director and RESULTS coach of <a href="https://www.resultsmentoring.com/" target="_blank">RESULTS Mentoring</a>, Simon Buckingham, shared with Property Observer the top 10 things which he looks for in an investment property.
1. A property that is aligned with your financial goals.
First and foremost, you need to know what financial outcome you’re seeking from your property investment – i.e. how much profit, by when, and what form is that profit going to take (capital growth, cash flow, a lump sum cash gain from adding value, etc)? It’s only with a clear financial goal in mind that you’ll be able to assess whether a property is actually the right one for you!
2. Established (not brand new) house in a growth area.
New houses depreciate, which can provide some tax advantages, but you’ll pay a premium for ‘new’ and may not see any greater rate of growth than you would with a less expensive established house in the same area.
3. Priced lower than comparable properties in the area.
Becoming familiar with values in and area by researching recent comparable sales can help you identify properties where the price represents good value – subject to checking out whether there is some kind of major issue with the property. Remember though that many problems can be fixed cost-effectively, and it may be that the seller simply needs a quick sale and is quite negotiable on price.
4. A house on a larger block in a zone that would allow higher density development.
This may make your property more desirable to developers, helping it to outperform on price growth even if you have no intention to develop it yourself.
5. Other ‘scarcity’ aspects.
Look for something that will make your property rare (but not weird) and therefore more desirable than others in the area, so that it outperforms on price growth and/or rental returns, rather than getting more-or-less the same as any other property. Examples of ‘scarcity’ aspects might include a larger block in a high density area, water views, proximity to amenities (like beaches, parks, sports grounds), being close to public transport or easy freeway access (but not right on the railway line or right next to the freeway), etc.
6. Opportunities to cost-effectively add value or increase rent.
The more options you have for making money from an investment property, the better. If you can add value to the property, then you become less reliant on market-driven growth for you profits. Look for properties with potential to increase the value or achieve a significant improvement in rental return through cost-effective improvements. Here, ‘cost-effective’ means that you’d spend less on the improvements than the resulting increase in the property’s value, or would be paid back the cost of the improvements within a short timeframe from the increased rent. 
7. More than one dwelling on the same title.
A property with more than one house or unit on the same title may deliver a higher rental return from multiple tenancies, or provide an opportunity to actively increase the value of the property through a potential subdivision.
8. Located in an area with favourable ‘market dynamics’.
Not all suburbs are equal, and they won’t all experience growth at the same time. Look in areas where the leading indicators of growth are positive. For instance, a suburb where there’s limited housing supply and properties are being sold at a rate faster than the rate at which new listings are being added, the average-time-to-sell is falling, may indicate great potential for short-term price growth.
9. Located in area with low rental vacancy rates.
If you’re planning to hold the property for rental income and price growth, then picking a property in an area with strong rental demand will be important. Low vacancy rates will support both rents and prices, and help reduce the risk of having to carry the property empty (with no income) for extended periods between tenants.
10. Broad target market appeal.
Ensure the property will appeal to your 'target market'. If you’re planning to rent out the property, then it needs to be a property that tenants will actually want to live in. If your plan is to on-sell the property down the track (perhaps after renovation or redevelopment) then look for locations and properties that will have broad appeal to the majority of home buyers and investors in the area.
 
<hr>
 Simon Buckingham is director and RESULTS coach of <a target="_blank" href="https://www.resultsmentoring.com/">RESULTS Mentoring</a> as well as the author of  The Real Deal: Property Invest Your Way To Financial Freedom.
 
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Simon Buckingham's top 10 things to look for in an investment property

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One-hectare rural lots going on sale at Edmondson Park this weekend through Urbangrowth NSW, which incorporates Landcom, are looking to benefit from the South West Rail Link.
The lots, adjoining Denham Court at the eastern end of the Macarthur Scenic Hills, are using the M5, M7 and new South West Rail Link to generate buyer interest.
“People can live in a diverse range of housing styles from rural living to low maintenance homes with everyone connected to transport, community and education facilities,” said Donna Savage, development director.
“Edmondson Park is about lifestyle and amenity. It is surrounded by a 150- hectare Regional Park and open spaces, that are connected by cycle ways and footpaths leading into a new Town Centre,” said Savage.
The limited sales release of 15 one-hectare rural lots will be on 26 October, at 10am.
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Development takes advantage of South West Rail Link

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A new report has revealed that upward momentum in detached housing construction can still be expected over 2013/14, according to the Housing Industry Association (HIA) and RP Data.
The most recent HIA-RP Data Residential Land Report saw strong growth of 18.2% over the June 2013 quarter, reaching a level of 17,170.
"This is the highest quarterly volume achieved since the March quarter of 2010," said HIA chief economist, Harley Dale.
"The recovery in residential land sales is impressive, but from a very low base."
Dale said that there is a close, but slightly lagged, relationship between the land sales noted in this report and the number of detached housing starts.
This points to the prospect of further growth in house starts following a modest lift of 3.7% over 2012/2013.
"The level of sales in 2012/13 was 56,782. Sales are therefore now back to a level equivalent to the GFC trough but no higher - the level is still 21 per cent below the historical average. Obviously it will be important to see further strong momentum in land sales for some time to come. For that to occur there needs to be a keener policy focus on ensuring adequate and affordable shovel-ready land is available," Dale said.
Residential land price growth has, however, been generally modest.
"A flat June 2013 quarter for the weighted median residential land value saw an increase of only 1.7 per cent over the year, less than general inflation," he said.
Meanwhile, RP Data’s research director, Tim Lawless, said that improvements in market conditions are in line with improvements across the broader housing market.
"The housing market has been back in growth since mid-2012 with both the rate of capital gains and transaction volumes gathering some momentum during 2013. It should come as no surprise that the Sydney housing market, which remains well undersupplied relative to the rate of population growth and is recording the highest rate of capital gain currently, is one of the primary drivers behind the lift in national vacant land sales,” said Lawless.
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Housing construction to continue climbing: HIA-RP Data

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Housing affordability is at its best in 10 years, but first home buyer activity is low.
The relatively low level of buying by first timers has enabled some to claim that there is a lack of affordability, never mind the official data.
So often in real estate, observers add one and one together and come up with seven. People with a bee in their bonnet about an issue seldom dig any deeper than the surface to find what really lies beneath.
So the industry is resplendent with simplistic analysis in which myths – such as elections cause markets to stall (the pre-election rise of markets around Australia this year suggests otherwise), interest rates dictate market movements (there’s no historic basis for that), we have a housing shortage crisis  (the REIA’s city average vacancy rate of 3% and the lack of rental growth suggests we don’t) and young people can’t afford to buy – become accepted as facts.
Many surveys have been conducted on the activity or otherwise of potential first home buyers. A recent survey by RAMS showed most thought this was a very good time to buy - but most did not intend to buy.
Therein lies the clue as to why first home buyers are not exploiting strong buying conditions. It’s all about attitudes and priorities.
Many younger Australians say they have priorities other than home ownership. They want to travel, own expensive gadgets and have a nice lifestyle in their location of choice, in preference to taking on a mortgage in a less desirable location.
Others do want to own a home but they want their dream home in a premium location as a first purchase. That’s never has been achievable and probably never will be.
First home ownership demands sacrifice and compromise and the new generations are less willing to do that.
Buying a first home has never been easy, but in many ways it’s easier today than before. When I bought my first home, there were no government grants or concessions, you needed a 20% deposit and the only borrowing option was the institution you’d saved with for several years.
That first home was a shack in a downmarket suburb 90 minutes from the CBD. It was all about compromise to get on the lowest rung of the ladder. But ugly real estate grows in value, often faster than luxury property, and two years later I was able to sell the shack for a healthy gain and buy something better, much closer to my inner-city job.
I achieved something approaching my dream home on my sixth purchase.
Those who want the dream home as a first purchase are kidding themselves.
Some newspaper articles are declaring that we have a “generation rent”, people doomed to a lifetime of renting. That’s only true for those unwilling to prioritise home ownership and make the necessary compromises. It seems many young Australians prefer to rent and have the lifestyle they prefer. That’s fine, if that’s their choice, but stop telling us you can’t afford to buy.
For those willing to stop complaining and start acting, there is so much in your favour – a high level of affordability, attractive loan options from competing lenders, a leg up from government and rising markets to create equity in the future.

<hr>
Terry Ryder is the founder of <a rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank" style="font-size: 14px;">hotspotting.com.au</a> and you can contact Terry via <a target="_blank" href="https://mailto:%20ryder@hotspotting.com.au">email</a> or on <a target="_blank" href="https://twitter.com/hotspotting" style="font-size: 14px;">Twitter</a>.
 
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Sacrifice and compromise, the reality of first home ownership: Terry Ryder

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<img src="/images/stories/2013/10/21/stonebridge-property-group-oct-23.png" width="200" height="86" alt="stonebridge-property-group-oct-23" style="display: block; margin-left: auto; margin-right: auto;">
Agent: Philip Gartland<img src="/images/stories/2013/10/21/philip-gartland-profilke.png" width="150" height="200" alt="philip-gartland-profilke" style="float: right;">
Position: Director
Company: Stonebridge Property Group.
Office Location: Sydney.      
How long have you been in the industry?
17 years - 11 in Australia and six in the UK    
What's happening in the area you specialise in?
The retail investment market is particularly aggressive at the moment. The combination of pent-up frustration of capital trying to find a home, coupled with historically higher yields and very competitive financing rates / increased bank funding competition, has led to very strong purchaser appetite. The issue now is that stock levels are now significantly lower with owners sensing an upswing in pricing.  
Describe the most interesting property you have sold?
The most interesting property I have sold was back in my days working in the City of London. It was a large prime office building close to St Pauls Cathedral, which was predominantly held on a freehold title but had a small/thin parcel of land running right through the middle of the built improvements held by way of 699 year sub-leasehold interest with a 700 year head lease.
The transaction hit a stumbling block as in doing their due diligence, the purchaser identified there had been breaches in both the head lease and sub-lease as development had taken place without the freeholder's consent and the freeholder of the land had disappeared from records!
It was a very interesting transaction because of the history involved;  from the perspective of having to review hand-scrolled Chaucerian style "Auld English" leasehold documents and where the purchaser ended up having to take out a very expensive insurance policy to cover them in the unlikely event the freeholder's ancestors turned up and claimed the breach of lease (the freeholders whereabouts had been lost around 200 years ago). The implications of them coming back would have been very material!    
What are the ingredients to being successful in your job?
Number one is relationships. Then it  is reacting to information. Being respectful, tenacious, organised and persistent are also pre-requisites.    
What aspects of your role do you enjoy the most?
Dealing with people and being able to get out of the office on a regular basis.    
Where would you invest a spare $750,000?
Buying existing income producing improvements in urban infill locations. Like industrial assets in Alexandria for example. Subject to planning restrictions, they are highly likely to have a higher and better use down the track.    
Which football team do you support?
Being from the UK, the football I prefer is soccer! For my sins - Newcastle United. If talking other codes; league - Roosters. AFL - Swans.    
What's your favourite app or techno gadget?
Evernote. This keeps me organised and able to access my notes wherever I am.  
How do you use social media?
We use Linkedin to advertise all of our properties and I personally use Facebook to keep up with Friends and family in the UK.
 
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In profile: Stonebridge Property Group's director, Philip Gartland

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Brisbane’s commercial market is currently experiencing vacancy in secondary stock, which raises the question of what landlords should be doing to tenant this space? It’s an interesting area.
There have been a series of secondary assets within the Brisbane market that have recently undergone refurbishment in the race for tenant engagement. These landlords have focussed on the inspection journey and prioritized capital expenditure within building common areas (ground floor lobby, and on floor lobby finishes), providing quality tenant amenity and ensuring the tenancy itself presents in its best light.
If a tenancy stands out as the ‘best in class’ in the eyes of a prospective occupier, it will likely make the shortlist. That is ultimately the goal.
However, if there is simply not an appetite to expend large amounts of capital within the common areas, the use of feature carpet/tiling/alternative floor coverings, non-traditional or custom lighting and clean modern finishes throughout the specific vacancies is very important. Simply, a freshly painted tenancy will always inspect better than an old second hand fitout.
Using another approach - a number of landlords have completed speculative fitouts within vacancies that have resulted in successful outcomes. Whilst this presents some risk (we are often asked, “what if the tenant doesn’t like the fitout and wants it removed altogether”) the construction of a speculative fitout, particularly in those tenancies with quirky attributes, can often hide the negative aspects of a space with a fresh new presentation.
‘Speed to market’ can also be leveraged when a fitout is immediately available. Quite often smaller groups do not think about their accommodation needs until three to six months out from lease expiry, leaving little time to find the right tenancy and construct a fitout. Recently the Seymour Group built a good quality speculative fitout within a 210 square metre suite in 300 Queen Street. On completion of the fitout works the tenancy had been leased to a consulting business. The tenant that ultimately took the space had tight time constraints and required a space that was ready to occupy.
Flexibility and willingness to accommodate out-of-the-box tenant requirements are in my view the two most important factors in securing a prospective tenant. Some of the more recent transactions within the secondary market have incorporated access periods and delayed lease commencements to enable incoming tenants the ability to facilitate a relocation without double rent exposure. Landlords project-managing the fitout process on a tenant’s behalf (so a tenant is able to move in to a fully fitted tenancy), relocating existing furniture within the building for the incoming tenant at no cost, or even creating a bicycle cage in the basement are all things that have been recently accommodated to secure a deal.
In wrapping up, it’s clear to me that taking a stubborn view on what your building is worth without assessing the market can be detrimental. Listening to the market, understanding the drivers of each specific tenant and being nimble in your dealings are paramount aspects of any leasing campaign, particularly while demand is soft.
The speed of actioning deliverables is also critical. Once a tenant has signed a heads of agreement it does not mean the deal is absolutely final - quickly turning around formal documentation, actioning landlord works items and working with the tenant to “cross the T’s and dot the I’s” should be the immediate focus to limit any potential hiccups along the way.

<hr>
James Montague is the director of office leasing, Queensland with <a target="_blank" href="https://www.jll.com/australia/en-au">Jones Lang LaSalle</a>. 
 

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What should you do about secondary stock vacancy? James Montague

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In recent years, some Australians have adopted an interesting strategy of being a ‘renter-investor’. I’ve written about this previously, and it is a trend I have kept an eye on ever since.
They will actually not buy a home to begin with,  instead saving their deposit money for a property that will become an investment from day one. They will then rent for the duration of this. There are several situations or reasons why some people may opt for investment ownership instead of home ownership:
- Perhaps home ownership in the desired suburbs or areas where they most enjoy the lifestyle is too cost prohibitive to be a home owner.
- They may be a younger aspiring investor and be in a situation where they can continue to live at home with parents or relatives, rent-free, enabling them to poor their savings entirely and quickly into pure investment.
- Transient lifestyles. Those in military or international business jobs may not value home ownership much at all, as their lifestyle involves lots of travel or placement in other states and countries.
- Some investors may not see the value in home ownership in Australia. For some investors, the ongoing burden of a large mortgage may not seem to be the best use of their savings dollars.
The other option for renter-investors is to begin their investment career as a home owner, which is how I started out. Renter-investors will usually do this to qualify for any government grants, exemptions, or benefits offered to first home buyers, and then live in the property for the minimum time required. This is usually around six months. These investors will then move out of the property and into a rental property. This strategy works works well for people who:
- Cannot save enough of a deposit for the home where they want to live, but wish to invest for several years to help them eventually afford to buy a home in the area they wish to live.
- For those investors looking to maximise the initial cash-flow when first buying, via accessing government grants that are paid at time of settlement. This can enable these investors to move quicker into the purchase of investment property num,ber two.
- Those who are comfortable and flexible enough to live in a temporary home for six-12 months in an area that perhaps is not their dream area, but can view it as a necessary stepping stone to move into their desired area.
In fact, another emerging trend that goes part and parcel with the above strategy is to use home ownership as a temporary springboard into an investor life,all the while retaining a capital gain tax (CGT) exemption on one of the properties you own.
How does it work?
It goes something like this:
-          An aspiring investor will purchase their first home in whatever investment area they can afford, and through their due diligence represents solid rental return and/or capital gain potential.
-          This area probably won’t be in their desired dream suburb or where they see themselves living for a long time.
-          They then live in this property for the first six months or as long as is needed to qualify for any grants or stamp duty concessions/exemptions that are on offer by federal or state governments at the time.
-          Then, the investor will move out of their home into a rental property in the area they actually want and desire to move to, and convert their home into an investment property.
-          The investor can now continue to rent for many years and use any growth achieved in their home property as a springboard to purchase their next investment property.
-          For future CGT minimisation purposes, the investor may move back into the home property in year five or six of ownership, perhaps also doing a mild renovation whilst living there again, before moving back out again and re-renting it out.
The advantage of using this strategy, as opposed to just starting as an investor from the outset, is that the investor gets to maintain a CGT exempt ‘haven’ which will help when selling the property in the future. This is a very simplistic approach, and it gets more complex as you grow a portfolio.
It is best to consult with a professional accountant and the ATO when considering a tax-minimisation strategy across a portfolio of properties. The very general rule of thumb though, is that the ATO will only allow you to claim one residence as your principal place of residence (PPR – otherwise known as your ‘home’) for tax purposes. So as some investors grow a portfolio of multiple, even dozens, of properties, and they continue to rent elsewhere, they will usually find ways to nominate the highest-value property in their portfolio as their PPR for taxation purposes.
Renting where you want to live, whilst investing where you can afford at the time, really is a strategy that can work for young and newly-starting investors. It offers the best of both worlds; enjoying the lifestyle of the area you want to live in, whilst establishing your investment career on the property ladder, at an earlier age and time in your life. This of course is ideal, because the the earlier you can make your start on the investment property ladder, the more chance you’ll have to acquire more properties and see them grow, through to retirement age.
 
<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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