For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Canberra

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Demand for private sector office space rental within the Canberra market is high around the sub, 1,000 square metre market, with tenant representatives, digital media and telecommunications driving demand.
Colliers International director of government services, office services, Michael Ceacis said these ACT sectors all seem to have exposure to the inevitable growth in the Commonwealth Government.
"Whilst the Canberra market appears focused on attracting large tenants, who are largely the Commonwealth, he is witnessing significant activity in the sub 1,000sq m leasing market," Mr Ceacis said.
<a href="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%201.33.38%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%201.33.38%20PM.png" alt="">
 
<a href="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%201.34.42%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/10/Screen%20Shot%202015-07-10%20at%201.34.42%20PM.png" alt="">
 
Source: Colliers International Research
 
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mick.cee-iDmgDDAmu8

Demand for ACT commercial property on the rise: Colliers International

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The most recent Canberra office sale has been the purchase of the commercial tower at 20 Allara Street in the CBD.
It was bought for about $20 million by the Morris Property Group, a residential apartment developer owned by Barry Morris of Queensland. 
Cityscope suggests this foreshadows a residential conversion for the site, a trend already strong in the eastern states, "but yet to have a big impact in Canberra."
The property currently comprises an 11-storey office building in Allara Street and a 3-storey office and retail section along City Walk on a site area of over 3,000 sqm.
The property last traded at $23.25 million in 2003.
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jchancellor-FAypfDUnLy

Barry Morris buys Canberra office block

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<div class="cT-imageLandscape">
The 1950s Canberra home of the late former prime minister Malcolm Fraser and his wife Tamie​ has been sold.
It had been listed with $1,775,000 hopes.
</div>
The four-bedroom property at <a href="https://www.domain.com.au/property/sold/house/act/deakin/?adid=2011483296" target="_blank">8 Daly Street</a>, known as JM Fraser House, was designed by Melbourne architect Guilford Bell in 1959.
The home was built three years after the couple wed with Malcolm Fraser then a backbencher.
The property, which was marketed as a piece of Australian history, is 300 metres from The Lodge.
It was listed through Berkely​ Residential and passed in on a vendor's bid of $1.7 million at recent auction.
The grand residence has origins in Georgian architecture combined with American plantation homesteads.
It has large rectangular windows and glass doors that surround the living areas and allow light to dominate each room.
It has soaring ceilings, and period features have been retained during several updates of the home by vendors Tony and Sue Marinos.
The vendors, the third owners purchased it 22 years ago for $425,000.
The property was first listed last August when $2 million was tipped for the home is on a block of 1340 square metres in Old Deakin.
It had also been listed in 2005 a $1.98 million.
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Guilford Bell-designed JM Fraser House, Deakin sold

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The Hong Kong billionaire Tony Fung intends to backdoor list his newly acquired Canberra Casino.
It will be done through the rare-earths explorer Discovery Resources, which is changing its name to Aquis Entertainment.
The Australian Financial Review reports a $2 million capital raising at 20¢ per share will take place, giving Tony Fung's company an 89% share in the listed entity.
Fung purchased the Canberra Casino in December last year for $6 million.
It has 39 gaming tables.
Fung is seeking a casino licence at the Aquis Great Barrier Reef Resort.
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Hong Kong billionaire Tony Fung to list Canberra casino: reports

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The international style setter Tyler Brûlée says Canberra's CBD need urgent urban renewal initiative.
<a href="https://www.ft.com/intl/cms/s/0/4dec3b54-ce36-11e4-86fc-00144feab7de?siteedition=intl#axzz3VRLZOQME" target="_blank">His weekly Financial Times column</a>, following a recent visit, acknowledged the sparkling new airport.
"But the capital’s central business district leaves a lot to be desired," wrote Brûlée.
"With seemingly every other shopfront available for lease, a lack of proper landscaping and no shortage of well-paid civil servants and diplomats, a smart developer should seize on a stretch of streetfront and kick off an urban renewal initiative."
His timing was exquisite as a new discussion paper on the future of Canberra's CBD calls for immediate action to be taken to revitalise the languishing city centre.
The ACT Property Council and Canberra CBD Limited paper recommends the ACT follow the successful City of Melbourne "Postcode 3000" campaign of the 1990s to save the territory's CBD.
Property Council ACT executive director Catherine Carter said the city centre faces many challenges – transport bottlenecks, empty streets and boring building facades.
Officially the Property Council of Australia's figures show a record high office vacancy rate of 14.7% and Canberra CBD Limited's latest retail activity report indicates a vacancy of 15.7%.
Brulee's column went on to praise a recent Sydney restaurant meal.
"When was the last time you tucked into a dish and found the whole experience so delicious and mouthwatering that you haven’t been able to stop thinking about the next time you might be able to return to sample it again?" he wrote.
"Eight days after I sampled the udon bolognese at Cho Cho San in Sydney’s Potts Point I’ve been trying to find an excuse to book a trip back there."
<a href="https://www.ft.com/cms/s/0/4dec3b54-ce36-11e4-86fc-00144feab7de#ixzz3VRNFwA5o"></a>Melbourne, he says, is a city that just keeps on getting better noting the fare at Supernormal on Flinders Lane.
But he says Victoria’s state capital is in desperate need of a good hotel.
"With none of the big chains putting on a particularly good show, the opportunity is there for a small property to deliver 20-30 rooms in a residential setting complete with rambling garden and an easy-breezy restaurant/bar staffed by one of the city’s better chefs," Brûlée wrote.
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Tyler Brûlée says empty Canberra CBD needs urban renewal…and possibly udon bolognese eatery

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There’s only a three-hour drive separating the two places but Canberra and Sydney are worlds apart when it comes to real estate.
That Sydney has been accelerating while Canberra has been in slow reverse is ample evidence that it’s foolish to speak of conditions in “the Australian property market”.
It also exposes the folly of claims of surging house prices across Australia. Nothing is surging in Canberra, other than Clive Palmer’s ego and tendency towards erratic behaviour.
While Sydney has had 18 months of upside, Canberra has experienced a slow and steady trip on the downside.
My research on Canberra for the next edition of The Price Predictor Index shows the trends evident in the two previous quarterly editions have continued – a gradual descend into downturn.
In the May edition I commented that the Canberra market was “going nowhere – neither up nor down - there is little in the way of meaningful growth, with markets stalled by uncertainty and nervousness resulting from the Federal Government’s plans to make big cuts to the public sector workforce.”
In the August edition I noted that the situation had worsened, with a reduction in the number of suburbs with any sort of positive pattern. The upcoming November edition will record a further deterioration in market conditions.
There are no “Rising Fast” markets in Canberra and only five “Rising Steadily” markets.
There remain a dozen suburbs rated as “Consistency” markets. In this regard, the standout precinct is the far north of the city, where new house-and-land sales are helping to maintain steady sales rates.
But the overall message is a marked absence of momentum, especially in the apartment market.
The number of apartment sales has been decreasing steadily for the past two years. In both the September and December quarters of 2012, there were 800-plus apartment sales across Canberra. By the March quarter of this year unit sales were down to 620 and in the September quarter there were an estimated 580 sales.
All of the Canberra markets with strong patterns of declining sales activity are unit markets. The suburb of Bruce, which was typically selling 40 to 50 apartments per quarter in 2012 and 2013, is now managing about 20 sales per quarter.
The biggest single apartment market is Kingston, which had 89 sales in the September Quarter of 2012 and 73 sales in the September quarter of 2013. But it’s gone steadily backwards since then, with only 48 sales in the June quarter this year and an estimated 30 sales in the September quarter.
The number of house sales across Canberra has also decreased, though not as much as apartments.
This pessimistic scenario is now reflected in data on prices and rentals. Domain Group’s September quarter House Price Report recorded a 2% quarterly decline in Canberra’s median house price and a 4% quarterly reduction in the median unit price.
The median rent for houses dropped 3% in annual terns and median rent for apartments is down 5%.
There has been an inevitable weakening of demand as the federal government moves towards giving the public service a short back and sides, while relocating some elements to regional areas where the costs are cheaper.
Terry Ryder is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> him or contact him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

Canberra's market is stuck in reverse

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Canberra currently has 20 suburbs where the median apartment price is recorded at under $400,000, according to RP Data.
A further 21 have median prices in the $400,000 to $500,000 bracket. The most expensive suburb in terms of apartment median prices was <a href="/news">Yarralumla</a>, with an $808,000 price tag.
Gross rental yields for apartments sit firmly in the 4% to 6%, with no notable exceptions.
<a href="/news">Macquarie</a>, which made the list below, recorded the highest rental yield, at 5.8%, with the lowest recorded rental yield being <a href="/news">Deakin</a>'s 4.6%.
<a href="/news">Curtin</a>
Median price: $280,000
<a href="/news">Franklin</a>
Median price: $290,000
<a href="/news">Hawker</a>
Median price: $310,000
<a href="/news">Holt</a>
Median price: $325,000
<a href="/news">Scullin</a>
Median price: $339,000
<a href="/news">Ngunnawal</a>
Median price: $350,000
<a href="/news">Theodore</a>
Median price: $356,000
<a href="/news">Macquarie</a>
Median price: $358,000
<a href="/news">Watson</a>
Median price: $358,000
<a href="/news">Macgregor</a>
Median price: $362,000
Narrowly missing the top 10 list included <a href="/news">Gordon</a>, with a $365,000 median price, <a href="/news">Gungahlin</a> and Isabella Plains, both with <a href="/news">$370,000</a> median unit prices.
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jduke-EHk3XBmHkn

The 10 cheapest unit suburbs in ACT

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A five bedroom Red Hill, Canberra home fetched $3.4 million at weekend auction.
Set at the top end of <a href="https://www.realestate.com.au/property-house-act-red+hill-117803695" target="_blank">Mugga Way</a>, it sold through Peter Blackshaw Manuka after the $2.8 million opening bid
The home had never been lived in, having been constructed on the 2044 squad metre block over a number of years by the vendor.
The home at 149 Mugga Way had 502 square metres of living space plus 110 square metres of garaging.
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Mugga Way, Red Hill auction secures $3.4 million sale

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Any time someone in my family buys property, I know about it. Property fever is in the air regularly in my extended family – I have cousins who are real estate agents, many of them invest, and a few of them have also recently become first home buyers themselves. I am no stranger to the excitement that buying property causes.
Even my parents are in on the action. They are currently in the process of designing plans for a newly purchased block midway between Canberra and New South Wales. It’s a 10 plus hectare land plot that I visited with them on a road trip when back on my last trip back to Sydney, and I absolutely fell head over heels for it.
They’ve bought into the second stage of a rural subdivision and have picked a block that’s conveniently bare save for a few distinctive boulders and trees, largely flat and has a creek running through one end. It has views all the way over the little town that it is adjacent to. Their home plans are also impressive – with a beautiful verandah, a huge kitchen and walk in pantry, energy efficiency measures and an entertainment wing with a sunken snooker table and cinematic-style projector room. It’s essentially their dream home – the property they’ve been planning for years that saw them selling out of Sydney’s north west and hunting for their final nest.
The effect that seeing this had on me was fairly immediate. My initial reaction was to want to know everything about the property and the process. The settlement was painfully slow, and I wanted to know why. Later, they found the land being used for agistment by local farmers, and I listened in on the hilarious attempts of my parents to move cows from their plot so they could wander around. Daily, I’m told plans that they have for it, the tiny changes to the kitchen plan, and intricate discussions about the Kitchen Work Triangle and building chicken coops.
And then, somewhere in the process, I decided I wanted the block next door.
For most people, this is going to sound odd – don’t most of us move out, have our own lives, and endeavour to live as far away from our parents (and in laws) as possible?
But you should see this land.
For the sake of my parents’ privacy I won’t share the address, but it’s stunning. It’s no secret that regional areas hold a huge charm for me, and I was easily taken. While the block doesn’t have the enviable views of my parents’ selection – it’s over the road and down the hill somewhat from their next home – it has a brick bridge for train tracks that runs through it with an infrequent train service (and some freight) over a creek. It’s spacious, and I had basically already chosen where I’d have the house built and where I’d be putting my barbecue before I'd left.
My partner and I have been preparing and slowly saving away for our next property; we have been undecided as to whether it should be an investment or a home in Melbourne given our relocation. This block is just in the range of what we can afford, provided lending doesn’t become an issue in the area, and I called my mother to chat it over.
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We have been preparing and slowly saving for our next property; but have been undecided as to whether it should be an investment or a home in Melbourne.
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We figured that I could buy it for our retirement, and build on it when prepared to live rurally in the distant future. Quickly, I was calling it “my block” (don’t you love how easily that happens?) and checking out my lender of choice's repayment calculator, doing my own sums. My Dad, a bullish property investor – although we rarely agree on locations or what to buy – told me that if I wanted then I could put solar panels onto it, and have some of it grazed by the farmers to provide some form of an income. Obviously, there are some tax implications to this that I’d need to consider, but it was starting to shape up to something worth considering and that could actually work.
See over page for why I decided to steer clear of purchasing
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But then the dawn of realisation occurred.
The day I retire and do my own “tree change” is some decades into the future. I would be laying down no small sum, taking on a large amount of debt, for an asset that doesn’t produce any real rental income. I then wouldn’t be using it for a long time, and the repayments would put a toll on my ability to save and pay down other more immediate debt. With the funds that I’d be using to purchase something that I dearly wanted, and was starting to daydream about, I might actually be stopping myself from achieving more by being wiser with my purchases. Unless you’re one of the lucky few with bottomless bank accounts, then you’re going to need to be careful with your money.
My ability to stomach risk now is likely higher than it will be in 30 or so years. If I choose a property that underperforms, I can weather it through. What is less likely to work, however, is if I tie up all my capital and push myself to full capacity with debt that stops me from investing further in growth assets. Not to mention that my partner doesn’t necessarily want the same things in retirement that I do (that is, to live within walking distance of my family and not within easy driving distance of anything resembling civilisation).
There are also the other considerations – one being that the area will substantially change by the time I come to live there, meaning it might not be the rural haven I'm after when it comes to retiring, or that my own goals and desires to live like this will also alter.
Or I might need to sell up due to a change in my own financial circumstances. This is just one of many regional areas that moves very slowly. Days on market are extensive for the very few properties that come to market each year, not to mention for that particular type of comparatively large landholding. While my investing ‘profile’ suggests that I can handle more risk – this risk of tying up my capital in a very slow moving asset is certainly not the type of risk I am prepared to deal with.
For this reason, my future tree change location is a dream that I’m putting on hold. It’s the pain of the opportunity cost, and risking better more targeted purchases, that I cannot stomach. Not everyone will make this decision – to choose their head over their heart – but it’s the advice that we’re frequently hearing and considering these implications now will hopefully pay off in the future.
It’s amazing how closely linked our heart strings and our purse strings are. Sure, it might ‘feel right’, but I’m getting increasingly used to having to rein in my desire to purchase something – when you write about property every day you inevitably stumble across stunning cheap “renovator’s dreams” and cheapie Tasmanian heritage homes that you’ve already mentally decided to buy, where the dogs would sleep, what colour you’d paint the walls and so on. These “five unusual NSW renovation opportunities” that I put together in May, for instance, had me hooked for a while. Church conversion? I can see myself in that. Old warehouse requiring substantial work and potential sweat/blood/tears? No problem. 
There's nothing wrong with thinking like that, but there may be an issue with acting on it without due care.
If you’re like me, you might get caught up in the dream of property a bit (a lot), but you need to give yourself that ‘step back’ breathing room where you do a bit of a logic test on your decisions. Just because you love it, doesn’t mean that you should buy it. This isn't a pair of shoes, or a fancy meal, this is an often decades-long financial commitment. If you're looking to invest, it's not about your emotions, or even about your instinct a lot of the time. It's about the cold, hard facts and numbers. And, no matter how much you’ve researched it, no matter how close you are to signing on the dotted line, if it’s not right for you – you can look for something else.
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There's nothing wrong with thinking like that, but there may be an issue with acting on it without due care.
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I’m still learning this lesson, but the fact is that my parents have taken this time, lived in undesirable areas and earned their dream home – both through long careers that they’re still building and through many other years of paying off a mortgage and planning for this. I have a few more stripes yet to earn before I can do the same, so it's back to the drawing board.
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Letter from the editor: Opportunity cost is one of the biggest risks

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A new variation to the Territory Plan in the ACT, commenced recently, has reduced the potential building heights proposed for some areas.
This includes land around Allawah Court, Currong Apartments and Bega Court, which Minister for the Environment and Sustainable Development, Simon Corbell, notes is now reduced to 12 storeys from the original 15 storeys, as a result of the potential negative impact on nearby residents. This is under Variation 308.
It also looks to revitalise aged public housing stock in Braddon and Reid. Much of the area under the change is occupied by public housing stock.
"This redevelopment will reduce reliance on the motor vehicle for new residents and promote the use of public transport, cycling and walking as alternative transport," he said.
"As well as higher density residential development the variation includes a requirement for a minimum of 5,800 square metres of space for community facilities to be provided on the site," he said.
"Variation 308 also contains provisions to encourage small scale community uses on the site to meet the convenience needs of residents and to ensure the street frontages are active and vibrant."
This came after much discussion in the local community over fears that the higher level residential developments could cause anti-social behaviour in public housing properties.
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