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>

Joel Robinson

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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</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

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The residential property development arm of OpenCorp has been relaunched as a standalone entity under the new name Equire, with almost $500 million of national projects in the pipeline,. Established in 2006, OpenCorp has grown to include five divisions offering investment advice, property management, finance broking, funds management and property development services.

Equire's most recent acquisition was a 1,400 sqm square metre site in Ivanhoe, 10 kilometres from the Melbourne CBD. The site is earmarked to have an end value of $34 million and will include approximately 45 apartments, with a mix of one, two and three bedrooms to suit a variety of purchasers.

Urban.com.au asked Equire director and OpenCorp founder Allister Lewison about the rebrand and his aspirations for Equire.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/161209_-_757_toorak_rd_-_v01_-_hero_-_final_2000.jpg" rel="gallery-all" title="Equire's East Side Village project in Hawthorn East. Image : Equire"><img alt="" class="image-article-full-width-580px" height="315" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/161209_-_757_toorak_rd_-_v01_-_hero_-_final_2000.jpg?itok=mmvG1IJn" title="Equire's East Side Village project in Hawthorn East. Image : Equire" width="580"></a>

<figcaption>Equire's East Side Village project in Hawthorn East. Image : Equire</figcaption></figure>Urban.com.au : What are your ambitions for Equire? What are the types of projects you want Equire to be synonymous with?

Allister Lewison : At Equire, our core ambition is to build brighter futures for our customers, partners and investors. We want to continue to deliver solutions based not only on what the market needs now but also into the future.  

A core feature of our projects is design excellence – we only create products that will stand the test of time and that are most suitable for our buyers. This might be high-end downsizer apartments in Perth or a first home buyer land subdivision in Brisbane. We make sure that the product we are delivering meets and exceeds the expectations of our purchasers

UM : Is there any overlap between Equire and the other divisions of OpenCorp, in terms of support on projects? 

AL : There is definitely an overlap between Equire and the other divisions within the OpenCorp Group. We share and work closely with our funds, finance and invest divisions.

UM : What future projects are on the horizon for Equire, particularly in Melbourne?

AL : In Melbourne, we will soon be launching our Ivanhoe apartment project. This will include a mix of one, two and three bedroom apartments focusing on functionality, style and luxury. The project will be placed amongst Ivanhoe’s leafy streetscapes and likely attract downsizers, first home buyers and investors.

We are also currently contracting a site in South East Queensland for a 300-lot subdivision.

UM : Can you provide an update on your new project in Ivanhoe? When is it likely to launch?

AL : Equire’s latest apartment project in Ivanhoe is set to launch in November 2018. The project will be perfectly located close to public transport, parklands and shops. Our project will steer away from bland apartment buildings and will showcase the best of Ivanhoe’s beautiful streetscape. The architectural design will utilise curved geometry to speak to the art deco aesthetic of the Ivanhoe locality, with lush landscaping incorporated in the architectural design to allow the greenery to build on the character of the building façade.

UM : What are your thoughts on the state of the residential property market in Melbourne at present? 
AL : Melbourne continues to be one of the hottest residential markets in the country, and at the moment we are noticing an influx of first home buyers and downsizers. Australian Bureau of Statistics data shows that loans to Victorian first home buyers reached its highest monthly level in November 2017, at 3527, since late 2009. 
We are seeing a demand for good quality, small-scale apartment projects as well as townhouse developments.

UM : In terms of future growth aspirations for Equire, where in Australia do you see the most potential in the residential property market?

AL : We are noticing a lot of potential for residential property in Queensland, most notably in the South East. Data shows that there is forecast growth for the region, particularly due to the Commonwealth Games in April where the government is set to spend up to $1.5 billion on infrastructure and improvements. Additionally, the Gold Coast is one of Australia’s fastest growing cities.

Its current population is over 500,000 and this number is expected to grow to 820,000 in the next 20 years, according to the Australian Bureau of Statistics.

We are currently contracting a site in South East Queensland as well as continuing to monitor the market for any further opportunities.
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Laurence Dragomir

OpenCorp relaunches development business as Equire

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Julian Augustini, a director at <a href="https://www.hodges.com.au/" target="_blank">Hodges Brighton</a>, answered some of Property Observer's questions on the state of the current state of the market.
<ul>
<li>How would you describe the auction market? Is the treaty market likewise?</li>
</ul>
Because of the low interest rates, Melbourne's property market at the moment is performing strongly.
The auction market at the moment is very active, and so is the private sale market.
<ul>
<li>What tips would you give home buyers?</li>
</ul>
Buy in the best possible location for your budget.
You can make small, cost-friendly changes to your home over time but you can't change where you are located without selling and upgrading.
<ul>
<li>What tips would you give investors about the timing of their buying in the 2015 market?</li>
</ul>
The rental market remains stable so buying now and locking in low interest rates gives security and potential for growth. 
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po-LsXgBTHBmX

Low interest rates driving Melbourne market: Q&A with Hodges' Julian Augustini

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Ingenia Communities is an Australian stock exchange-listed property group that owns, operates and develops seniors’ communities across Australia.
Its chief executive officer Simon Owen talked to Property Observer about the company’s new direction. 

<ul>
<li>What is the outlook for demand in the segment of the property market that you target?</li>
</ul>
We are firmly focused on the more affordable segment of the property market for seniors’ living. We all know about the aging population but the segment we are focusing on is seniors’ accommodation and manufactured homes under $300,000 – there’s a limited supply of that type of property so the level of demand we are experiencing is quite strong.
We expect demand from seniors to continue to be very strong over the next five years. Some of our challenge is that there is limited awareness of the markets we operate in, the lifestyle parks and manufactured homes, so we have to build up that awareness that you own the home but not the land. That means you can maintain a comfortable retirement while usually maintaining your full pension with rent assistance.
Bringing a product to the market that’s affordable means seniors can sell their home and don’t have to spend more than 60 to 70% of the proceeds to buy a manufactured home.
In Sydney for instance, in the local government areas in which Ingenia has lifestyle parks, average property prices are $450,000, while a senior can buy a manufactured home for $300,000. They have the surplus from the sale plus the full pension of $900 a fortnight, which means they have that $150,000 surplus to spend on other things.
<ul>
<li>Your business concentrates on retirement living but you have been branching into tourism properties too, why is that?</li>
</ul>
There were 1779 tourism parks in Australia in 2003-04, according to IbisWorld but over the last 10 years that number has reduced to around 1600. These have been closed for a variety of reasons such as flooding or being converted to other land uses but at the same time revenue from the remaining parks has increased.
Cash flow from lifestyle parks is strong and they are highly complementary to our seniors business with the highest users of the parks being grey nomad. That provides an opportunity for us to cross sell to people. The number of registered caravans is rising. When a senior buys into a manufactured home park, they receive a 25% discount at our 19 parks along the east coast.
When we started our manufactured home strategy four years ago we identified tourism as a business where long term we would want to turn the tourism component of the lifestyle parks that we invest in into permanent living.
But we realised that in many parts of the country, the highest and best use of the land was tourism. Tourism generates very strong cash flow which supports our roll out of developments.
A best in class manufactured home community that has been purpose build with no tourism is going to deliver a cap rate of about 9%. We can buy mixed use parks at cap rates of 10% or more. The opportunity for us to buy those parks on attractive terms is quite compelling.
I don’t think we would ever be looking to be a tourism operator but we are comfortable using it where it’s the highest and best use of the land.
<ul>
<li>How competitive is the market for buying lifestyle parks?</li>
</ul>
Over the last six to 12 months there are more participants out there but we are ahead of the competition. We have seven people out there concentrating on acquisitions. We don’t rely on agents for deal flow. We have two people out door knocking having informal discussions with prospective sellers.
<ul>
<li>You have started to move out of investing in deferred management fee (DMF) retirement villages, where seniors buy the right to occupy a home, then pay annual fees and an exit charge. Why?</li>
</ul>
DMF is a great model. There are three reasons we are looking to exit that over time, and we are only going to exit if we can get appropriate values for the properties.
We want to focus on the affordable segment and DMF is no longer affordable because we can’t build a DMF home for under $350,000 and get a return. We want to focus on the affordable market and we are building manufactured homes and rental villages in some markets for $180,000. We don’t want to be all things to all people and we have identified that DMF is not consistent with affordability.
There are other pure-play DMF operators out there and this is also about differentiating our business.
Lastly, while we have about $70 million worth of DMF properties that are earning attractive development returns, if we strip out the development returns, it is a return of less than 3% per annum. Yields will grow over time but I can put that capital to work better now and buy a lifestyle park and get an immediate 10% yield. It’s about more efficient utilisation of capital.
<ul>
<li>What assets do you own and where does your revenue come from?</li>
</ul>
Ingenia’s portfolio includes about $120 million worth of Garden Villages (our rental properties for seniors), $70 million in DMF, and with acquisitions made and announced, about $170 million in lifestyle parks.
I would expect that over the next two to three years as we divest out of DMF and move into lifestyle parks we will be at a split of 75% in lifestyle parks to 25% in Garden Villages.
In the current financial year about a third of our revenue will be rental villages, 5-10% from DMF, 10-15% from tourism and the balance from manufactured homes, both rent and development.
<ul>
<li>What are the biggest challenges to your business?</li>
</ul>
The biggest risks and challenges to our business are around planning. We have to deal with a myriad of councils. Some are supportive and some are obstructive. That’s the single biggest challenge. 
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zfielding-GvX3Uq9KTa

Q&A with Ingenia Communities' chief executive officer Simon Owen

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<img src="/images/2014/12/02/henry%20dec%202%20one.jpg" width="150" style="float: right;">
Foreign buyers continue to be a talking point for property fanatics in Australia.
Co-CEO of Chinese listing website Juwai, Simon Henry, pictured right, spoke to Property Observer from Hong Kong about some widely held perceptions of foreign buyers and how they really affect the Australian property market.
<ul>
<li>People get quite up in arms about foreign investors pricing first home buyers out of their suburbs. What do you think?</li>
</ul>
The latest Parliamentary report is probably the best indicator. There are a few key things to look at here. One is – is foreign investment good for Australia? Number two – is it pricing the home buyers out of the market? And number three – is the FIRB process actually working?
It found that, firstly, foreign investment is very good for Australia. It adds supply, that actually keeps prices low. If it wasn’t for foreign investors coming into the country prices would probably be higher than what they are. About 9% of the Australian population is employed in the construction industry and it is probably one of the things that has actually helped us be one of the few countries in the OECD to stay out of recession.
In terms of the first home buyers they found that the price point at which the foreign investors are buying is not the same as the first home buyer and that the two segments are almost completely segmented and unaffected by each other.
<ul>
<li>If this is the case, then why do you think we do still have a number of people saying that they are pricing out the first home buyers?</li>
</ul>
The evidence doesn’t suggest that, so I think it’s just misinformation. There’s a lot of media hype around the foreign investors in terms of what they’re doing and what they’re buying and the price point. I think this report shows that they are two very separate markets.
The report also finds that the average property bought by a foreign investor is $900,000 plus, which is well out of the price range of the first home buyer. The report also says that the Chinese shouldn’t be singled out in terms of a foreign buying group because the United States, for instance, are a very close second.
<ul>
<li>What sort of areas are we seeing Chinese buyers purchasing in?</li>
</ul>
We’re definitely seeing them purchasing in the major cities, you’re looking at Melbourne, Sydney, Brisbane and the Gold Coast. Within those areas we're usually looking at the inner city, which is where most of the new builds happen, as the hottest spots.
But then your domestic Chinese audience, those Chinese Australians, typically buy in the high-concentration Chinese areas. In Melbourne that’s Doncaster, Box Hill and in Brisbane it’s Sunnybank Hills, in Sydney it’s Chatswood.
We’re dealing with two groups here. One is the domestic audience and one is an international audience.
<ul>
<li>Do you think in areas where there is established property that there is any illegal property activity occurring?</li>
</ul>
Definitely not. Anyone can buy a property in Australia as long as it has FIRB. If you look at some of the suburbs around, say, Double Bay or Mosman, these are multi-million dollar properties. They are established properties, however it is shown that people who buy these properties have approval to do so.
<ul>
<li>It looks as though it might take a while for public perception to come around to this. What’s your perspective?</li>
</ul>
It’s a shame really as the effect of foreign investment on Australia is so radically good. Instead of looking at foreign investors and saying ‘wow they’re driving up prices’, my view is that we should be saying ‘wow, thank you – you helped us avoid a complete recession in Australia during very hard times.’
<ul>
<li>Looking at your listings portal, Juwai, how many extra activity have you seen over the past 12 to 24 months?</li>
</ul>
We’ve definitely seen a lot of interest shifting towards Australia. It’s the second most popular country [on our portal] and the USA is number one, Canada is number three. So it is currently competing for foreign investment and there are other countries around the world with a lot less restriction [around foreign ownership] – the United States for example has almost no restrictions. It’s really a case of what amount will go to Australia to help fuel the Australian economy.
<ul>
<li>Some investors say that they can’t go overseas and buy a property in China and that it seems a little unequal that they can buy a property here. What do you think?</li>
</ul>
I certainly see where people are coming from. I lived in Thailand for 10 years. However it’s also just a case of demand. If you are a resident in China and worked and lived there for a year then you can buy a property. There’s also 1.4 billion people in China and they don’t require foreign investment in the property sector because they have an aggressive domestic supply.
Australia, on the other hand, has a massive shortage of housing. With population growth expected to be strong we’re looking to build around 400,000 new dwellings over the next couple of years just to handle the immigration supply. We need foreign investment in Australia.
Australia is a lucky country and it does have an immigration policy that brings more people to the country. With record low interest rates it causes people to be able to borrow more money and to buy property of higher value, but the major issue is supply. Whether that’s as a result of government policy, restrictions, the release of land, all those things – if you want to keep prices under control then supply has got to increase.
<ul>
<li>What is the future looking like for foreign investment?</li>
</ul>
We think that the market for foreign investment will continue to grow. We see it as a fantastic opportunity for every country that accepts foreign investment to benefit from it greatly. The only country in the world to have more foreign investment restrictions [than Australia] is Switzerland. Australia’s right up there already with the restrictions placed on foreign investors. Australia has been fortunate enough by its geolocation to Asia and its reputation that it still attracts a good number of foreign investors and this will continue.
It’s driven by the major motivations of Chinese looking at property: Investment, education and immigration.
Australia has a great reputation in terms of education and destination marketing.
See over page for the top 10 Sydney suburbs attracting Chinese buyer interest.
<hr class="system-pagebreak">
Here are Juwai's 10 Sydney suburbs for Chinese buyer interest at present.
<ol>
<li>
<a href="/news">Mosman</a> 
</li>
<li>
<a href="/news">Bondi Beach</a> 
</li>
<li>
<a href="/news">Campbelltown</a> 
</li>
<li>
<a href="/news">Willoughby</a> 
</li>
<li>
<a href="/news">South Coogee</a> 
</li>
<li>
<a href="/news">Castlecrag</a> 
</li>
<li>
<a href="/news">Sydney</a> 
</li>
<li>
<a href="/news">Cremorne</a> 
</li>
<li>
<a href="/news">Bowral</a> 
</li>
<li><a href="/news">Cremorne Point</a></li>
</ol>
Source: Juwai
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Foreign investment has pushed prices down, not up: Q&A with Juwai's Simon Henry

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There has been fierce debate around commercial licensing recently. The Real Estate Institute of Victoria's (REIV) Enzo Raimondo is particularly against the recent changes.
Here's a Q&amp;A with Raimondo explainging why they oppose the gazetted regulatory changes.
What are the changes to commercial licensing?
The Victorian government has gazetted a regulatory change which enables anyone involved in the sale of real estate other than residential or rural land, will be exempt from the licensing requirements of the Estate Agents Act where,
<ul>
<li>The price in the contract of sale is at least $15 million or the property has a total gross floor space of at least 10,000 square metres.</li>
<li>Each party to the sale purchase or exchange of real estate owns other real estate with a total value of at least $15 million or a total floor space of at least 10,000 square metres.</li>
</ul>
Anyone involved in the leasing of real estate other than residential property or rural land, will be exempt from the licensing requirements of the act if the person or company for whom the person is acting owns property with a total of at least $15 million or a total floor space of at least 10,000 square metres.
It should be noted that the ALP, on Monday announced that it will review these changes if elected in Victoria at the upcoming state election on 29 November.
How does the REIV believe this will affect the industry and consumers?
It will create a two-tiered system where some agents will be licensed (for sales and leasing transactions below the threshold) and others won’t be licensed.
This will open the industry up to unqualified and inexperienced operators - and potentially criminals - because there will be no probity checks, and the operators will not be required to maintain an audited trust account or comply with the requirements of the estate agents act.
This will lead to a high level of financial risk to vendors, purchasers, landlords and tenants and means that thousand s of small businesses in Victoria will lose the inherent safeguards provided by the estate agents act.
This will hurt small business tenant in Victoria and may lead to increased rents, prices and put thousands of jobs at risk.  
What will the REIV be doing to stop the changes?
The REIV continues to lobby both sides of government in regard to the changes, and is running a public campaign leading up the state election (and beyond).
Are there any other changes to commercial licensing that should be implemented?
There is already an exemption in place for large commercial transactions between related parties, which the REIV believes is sufficient to meet the needs of a wide variety of stakeholders involved in these transactions. For this reason there is no need for the changes that have been proposed.
They represent deregulation of the commercial and industrial estate agency practice, yet are being promoted as red tape reduction.  
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Victoria's proposed commercial licensing changes: Q&A with the REIV's Enzo Raimondo

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Josh Rowe is the chief executive of realAs, a property price prediction website and application.
According to Rowe, the <a href="https://realas.com/home/" target="_blank">realAs</a> algorithm, which is constantly being refined, produces predictions which fall within 5% of the eventual sales price. Users are able to compare the realAs prediction with the price guide provided by agents and the final sale price.
For buyers who are frustrated with auctions where prices spiral well above the price guide (and their budget), the application provides an alternative price estimate to that provided by real estate agents.
Property Observer spoke to Rowe about underquoting, and how buyers can navigate the available information to make their own price predictions.
Can you explain the problem of underquoting?
Underquoting is where a real estate agent will give a price for a property which is below what the property is likely to sell for. And it's a marketing tactic.
It's designed to bring people to an auction; to either drive the buyer's up in price, who they might not have captured before, or just get a lot of people there, to drive and get sa real kind of excitement there.
If you walk past a retail store or restaurant and see its busy, you'll be more attracted to it. If you walk past an empty restaurant or an empty retail store, you might keep walking.
What are the costs to the buyer?
I think the challenge for buyers is firstly the amount of time they invest in searching for a house.
And there are so many things a buyer looks for.
They'll spend their time out there going for open inspections, going to auctions. They might do building inspections, spending some cash, understanding what's going on.
So for buyers, when the price goes well above what they've been quoted originally, to outside of their price range, they feel frustrated.
And they're angry. I've spoken to buyers in my own sububrb about what happens when they see underquoting - and some have wasted many months, six months, looking for properties, until they've found one that they've worked out - they've almost worked out the difference between what real estate agents really told them, and what the price was likely to be.
How informed do you think buyers really are about underquoting? Is it an industry thing, or are buyers quite savvy about it?
I think people are aware that underquoting exists. But there's no one percentage that real estate agents underquote by. So that's the biggest challenge.
People might take five to 10 years between purchasing houses. So generally when you've been out of the market for that kind of period, whether you're buying for yourself to live in or buying to invest, you've forgotten that you've lost five years of where the market is up to.
When I talk to my friends about how they research the market, they build their own spreadsheets. They almost do the manual version of realAs, I suppose. They build a spreadsheet up, and they go: "Here's a real estate agent. Right. His name is Fred, agency is this, quoted for this, sold for that".
So they manually go through almost weekend by weekend, just tracking the results, til they go, "Right, this is where the market is at, I can start searching".
So they almost build their own algorithm and database themselves. And that's a lot of effort! Why should they have to do that?
Underquoting is only half the issue. Overquoting in private sales equally as frustrating for buyers too. Real estate agents will start with a high price, and generally over a period of time will move their price down in order to attract a buyer, to a price a buyer is willing to pay. Because buyers are the ones who choose what a house is worth, not a seller.
Obviously building up your own database is a quite labour and time intensive thing to do. What are some other steps buyers can take to protect themselves from underquoting or having their time wasted by that kind of practice?
There are many resources out there.
There are more and more websites out there that are making information more transparent. Some are free - you can go to websites like onthehouse.com.au, you can use websites like RP Data, you can see oldlistings.com.au.
Potentially you could trust a real estate agent who wasn't the seller. And buyer's agents generally have a good understanding of where the market's at as well.
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jrichardson-uRX5hFdKfN

Underquoting: Q&A with realAs' Josh Rowe

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Today Urbis released its quarterly Brisbane Apartment Insights report, detailing the changing conditions and trends affecting Brisbane's inner city apartment market.
Property Observer spoke to Urbis' national director of residential Jon Rivera about what's driving growth in Brisbane's apartment sector and what this means for the property market. 
What are some of the growing trends in Brisbane's inner city off the plan apartment market?
We've never really seen this much activity in Brisbane.
It's a pretty exciting time for Brisbane, with this level of development and also infrastructure growth, through masterplans and government infrastructure. 
Brisbane is growing very quickly, from a demographic point of view. Nationally, there are some major changes happening right now in the residential market, and we're seeing new fundamentals emerging. 
What demographic trends are driving the growth of the inner-city apartment market? 
The residential market is built off two major demographic groups: the 25-30 year old bracket, which is very large and growing significantly, and baby boomers.
They're very complex groups, so I normally hate to say "Gen Ys and baby boomers". But they are major demographic groups in the residential market. 
We're seeing major changes in the type of properties that they're looking for. The trade off they have to make to cope with the cost of living is definitely having some implications for demand.
We're also seeing changes in infrastructure and where that's being invested. We're seeing much less urban sprawl and much more upwards development. It's cheaper to upgrade and put infrastructure in central areas where there's already a major population, rather than emerging regional areas. 
Where is apartment growth focused? 
The major development is happening is along corridors where there is existing infrastructure, or proposed future infrastructure. Running from <a href="/news">Wooloongabba</a>, <a href="/news">West End</a>, <a href="/news">South Brisbane</a>, coming through to the CBD and going into <a href="/news">Fortitude Valley</a>, <a href="/news">Bowen Hills</a> and going all the way up to <a href="/news">Hamilton </a>- that's where we're seeing a lot of supply and demand.
These emerging developments are all still fringe based. The CBD is probably undersupplied - it's got a few developments on their way, but it predominately the growth is in the fringe areas. 
For apartment developers, there were better opportunities in the fringe. In South Brisbane, there was very little supply, and it made perfect sense to develop because the infrastructure was already there. The same was the case in Fortitude Valley. 
Is there a threat of oversupply in the Brisbane apartment market?
There are a couple of things we need to get clear on in terms of apartment development from a supply point of view. We often talk about 23,000 apartments in the inner Brisbane market, which are either in the application, presale, or approvals stages, but you can't look at thin air.
We care more about settlement, which has been pretty fragmented. There is a lot of stock coming through the off the plan through to the end fo 2015. It's a very hot market, but it really is about that settlement.
Rents are definitely aligning. They're starting to move away from the inflation period we had that was created on low supply. That, to me, is saying that developments are doing what they should.
2015 is definitely going to be very competitive for the off the plan apartment market. We're probably going to see a lot of developers not get off the ground, which is going to affect supply.We look at a lot of these developers playing in Brisbane and to be honest, there are some that have not proven themselves yet.
There are still a lot of challenges when it comes to taking that glut of supply and making it a tangible product. 
At the moment, there are going to be areas that are going to have some fluctuations, which always happens. We're going to need continued population growth, through migration and international students, which are very important to Brisbane's inner city rental market.
Brisbane is also very closely related to what's happening in Sydney, and prices are obviously high there, which may drive demand for Brisbane.
The one thing that we definitely know is that we're going to see more renters come through.
The cost of living is unfortunately not getting any easier. In Australia, the employment opportunities are very centralised. The infrastructure is very challenging as we go further out, and in the capital markets, the 15 kilometre to 20 kilometre ring from the CBD is very difficult market to get into for young buyers. 
The ability to own their own home is a big trade off for younger people - if they buy further out, that's going to cost them more in terms of fuel. Thats why we're looking at the apartment market. Sure, supply is coming through, but the challenges facing buyers and the demand growth is here to say.
It will go through the fluctuations, and developers are great at getting a good thing while they can, and then we'll see a correction.
How will the influx of new apartments affect Brisbane's rental market?
We are hearing that rents are softening. 
The owner occupier market is really taking an effect on the existing apartment market and the more mature stock on the market, taking that away from renters. So the new apartment market is obviously catering to renters.
Rents have been quite inflated, so we have a buffer. Now, we can make things align, and it's getting a bit better from an affordability point of view. The time to fill an apartment is growing, but still pretty good. Instead of one week, it'll take a month or two months to fill an apartment.
To me, this is a normal thing, and means developers are doing their jobs. 
Historically, December always seems to have a lot of vacancies, and so does the March quarter because it includes January. In June it always comes back again, to around the 3% mark. 
There are going to be pockets where there are going to be some realignment in rentals, which I think is positive. It's a good thing for the renter, who can see what amenity they get for their dollar. There's going to be some good choice there, and affordability will improve. That's a good thing.
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Brisbane's inner city apartment market: Q&A with Urbis' Jon Rivera

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A commercial office building at 2-6 Bowes Street (pictured above) in Canberra's Phillip was recently launched after undergoing a significant refurbishment to improve its energy efficiency.
The building, owned by boutique property fund manager Quintessential Equity, is targeting a 5-star National Australian Built Environment Rating System (NABERS) energy rating. The company recently acquired two other commercial properties in Canberra, 14 Moore Street and the Optus Centre in Civic.
We spoke to Russell Bullen, head of Property at Quintessential Equity, about energy efficiency in the commercial property space.
How has the demand for "green" office spaces changed over the past ten years?
It's certainly evolved significantly in that time. I think the whole "green movement" gained a lot of momentum, and it was certainly assisted by the government's changes to legislation around disclosure.
If you sell or lease a building, you now have to disclose your NABERS  energy rating.
Up until the changes, it was really dependent on market forces. It was up to tenants to really demand energy efficient buildings, or really up to the landlords, off their own backs, to disclose. So once the legislation came in, it provided more accountability around energy efficiency - if you had a building with poor energy efficiency, but didn't have to disclose it, there wasn't much of an incentive to improve that.
I think that's probably been the biggest change in that time period.
What are some elements that make commercial office buildings "green"?
Probably one of the things that gets forgotten is management.
And one of the biggest improvements in energy efficiency, and reducing our carbon footprint, is good management. We have a national engineering manager whose main focus is just that. That is probably one of the biggest impacts that you can make to a building - making it operate efficiently.
Apart from that, you can introduce things that are very costly, in terms of plant and equipment. You can improve heating and chilling and make that more energy efficient, and also use computer building management systems to improve efficiency.
What are the benefits of energy efficient office buildings to investors and tenants?
From a tenant's perspective, the operating costs are less.
We've got a project in Parramatta, where we were awarded Best Commercial Building Energy Efficiency Project by the Energy Efficiency Council. We've seen the electricity costs in that building fall by more than a third from work that we did. We were able also to achieve a four and a half star NABERS energy rating there.
The reduction of cost is a real and tangible benefit, and you also of course have an environmental benefit.
But also buildings that have a higher NABERS rating have a greater level of comfort and reliability, which is better for landlords because it improves tenant retention. From a landlord or investor's perspective, if you can make a building run efficiently, reliably and comfortably, you're going to retain tenants for longer.
Outside of Canberra, are there places where energy efficient office spaces are in greater demand than others?
If you had to say one location where energy efficient buildings were more in demand, it probably is Canberra. In Canberra, over two thirds of tenant demand is from the government (either Commonwealth or ACT). They actually have requirements within their leases that buildings have to achieve certain levels of energy efficiency.
Outside the ACT, in general, CBDs where there are large corporations who also have efficiency targets also show strong demand.
What role do you predict "green" innovation and energy efficiency will play in the commercial property market in 10 years time?
It's a difficult question, because there was certainly a strong impetus for energy efficiency, but when the GFC [global financial crisis] happened, there was a focus on cutting costs. And that's the thing with achieving energy efficiency - there is an upfront capital cost.
But if you take a 30,000 foot view, it's inevitable that it will continue to grow and get more traction. Disclosure obligations aren't going to go away. Companies are more and more focussed on their costs, and that's only going to continue in terms of ongoing operations. Outgoings are a significant part of companies' operating costs - so energy efficiency is not going to go away.
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Q&A with Russell Bullen of Quintessential Equity

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Marketing your home for sale through a real estate agent leaves you in their power.
You need to trust them to effectively guide you through how the campaign for your property should be and how much you should be spending.
You must rely on them to ensure you do not overcapitalise, and in a space where the arguments over print versus online advertising and even the use of signboards are rife, it's understandable that you might be feeling a little lost.
For our Tuesday Q&amp;A, Property Observer asked Century 21's national training manager Alastair Kay all about advertising, marketing and his own experiences in real estate.
What was the most exciting property you ever marketed, and how did you express this in your marketing?
The most exciting sale I’ve been involved in was the successful transaction of a property in Banksia Beach, Bribie Island's premier postcode which is known locally as millionaire’s row.<img src="/images/2014/08/12/kay-aug-12-one.png" alt="" style="float: right;">
My point of contact for the property was the owner’s son, who lived between the Bribie home and his main residence in Brisbane. The son demanded excellence in everything he was involved in, having previously served in the military and being at that time employed as a well-respected prosecutor.
After much discussion, we chose to take their home to auction as it had only attracted five inspections after having been on the market for over two years. This high risk strategy required a significant investment to ensure we attracted the right buyers, so together we created a professional, targeted marketing campaign which required an investment in excess of $30,000 from the vendor.
The four week auction campaign attracted in excess of 100 viewings, an incredible amount of interest for the global financial crisis and a figure that dramatically exceeded the seller’s expectations. The auction was held at twilight on the deck of the home overlooking the Pumicestone Passage and was sold 24 hours later, after being passed in at the auction.
How do you tailor advertising and marketing to each individual property and vendor situation?
The most vital consideration for tailoring marketing and advertising is finding out what the seller hopes to achieve from the sale, and how they’d like to achieve it. More specifically, I like to ask the vendor questions relating to the sale based around three key areas: price, privacy and timing.
If obtaining the highest price possible is the most important result they want to achieve, I will show them what marketing is available to them and what attracts the most enquiries. I’ll also provide them with all the options and assist them with building their own campaign as the more the vendor can be involved, the better the likely result. Some real estate agents forget this and often present completed marketing campaigns, or only a few options. The danger with this approach is that it overlooks the fact the vendors are transacting what, for most people, is their single largest asset. This means that peace of mind in knowing that everything possible is being done to sell it at the best possible price should be of paramount importance.
Some vendors are worried about their privacy, a concern which may be driven by any number of different reasons. In these instances, I’ve occasionally been asked to design a discrete marketing campaign where a particular group of buyers is intensively targeted, or asked not to advertise at all and merely shop it around to interested buyers I’m aware of in the community.
<blockquote>
After much discussion, we chose to take their home to auction as it had only attracted five inspections after having been on the market for over two years.
</blockquote>
Timing is also crucial to tailoring a marketing campaign – if the vendor is desperate to sell, the only choice is often an intensive marketing campaign which showcases the property to as many potential buyers as possible.
What questions do vendors commonly ask around marketing?
Generally vendors want to discuss how much a marketing campaign for their property is going to cost, because they are often concerned that there can be no guarantee that they will achieve the price they hope for. These are legitimate concerns which your real estate agent should be comfortable addressing. Typically, I’ll explain how it’s in my best interest for the property to sell as real estate agents only ever get paid when a property settles.
Successfully transacting a property requires a well thought-out, structured and targeted marketing campaign that is designed to meet the vendor’s specific needs and requirements. If your agent isn’t paying adequate attention to your marketing requirements, it’s probably best to consider speaking with another agent to compare approaches.
Turn over page for more, including the difference between auction and private treaty marketing.
<hr class="system-pagebreak">
How does advertising differ between auctions and private treaty marketing?
There isn’t a great deal of difference, however vendors tend to invest less into marketing when they sell via private treaty. This is because when property is being transacted by private treaty, all that’s required is one passionate buyer to place an offer, as opposed to an auction where you want to attract several passionate bidders to compete for the property.
Regardless of the vendor’s preference regarding how they sell their property, I always recommend investing in the strongest campaign possible, as this has the highest possibility of finding the buyer that is going to pay the most.
I always caution that marketing for a property should be considered an investment – not a cost. This is because vendors often find that they’re able to achieve significantly more for their property through a premium marketing campaign, and doubling, or even tripling, their initial marketing investment.
For which type of properties does print advertising work?
I always recommend vendors consider every avenue of marketing available to them, as the reality is we’re after the buyer for the property – not just a buyer. This distinction is crucial, as marketing for the buyer means that you’re exploring all possible options, not just pursuing the cheapest, easiest option.
When I was selling in a rural location on the Queensland coast, most vendors wanted to choose a local paper that had a readership of 20,000 people every week and more often than not, found that they weren't getting the result they'd hoped for. My consistent recommendation to vendors was that they choose a different paper that had a greater readership of 950,000 people.
Doing this did mean an increased marketing investment; however, they increased attendance at open for inspections by an average of five buyers per week. This helped achieve a premium price for every seller who chose to add paper marketing to their campaign.
The moral of the story is that there’s still a place for paper advertising, especially newspapers that have a larger, more targeted circulation. There’s no use in having 10,000 people viewing your property online if 9,950 are in another state and only browsing for fun.
Are there any aspects of advertising where vendors should be spending less or more?
As you’ve probably realised, I'm a big believer in creating and executing the best campaign possible. Vendors only get one opportunity to make a good first impression and selling your home is no different.
There are ways of cutting costs. But in my experience when vendors try to cut costs in their marketing, they ultimately end up cutting the price they’re able to achieve for the property. I recently sold a unit on the waterfront by auction which the vendors had been contemplating listing at a price and seeing what happened.
The vendors were working on the assumption that because an identical unit above theirs sold for $360,000 only a few months earlier, they'd get a similar price. After talking through a range of options, they chose to invest into the best marketing campaign they could as they agreed that they’d only get one shot at introducing the property to the market.
By taking this approach they achieved a result of $418,500 – well above the recent sale, and a result that only came about because the marketing campaign reached the market completely. Had they sold by private treaty, they had planned on listing for $389,000.
What does the best listings copy look like – and what tips do you have for agents who consistently get it wrong?
Listing copy is one area that does need a lot of work in Australian real estate. Unfortunately, it often boils down to time and writing skills, and often agents will be a little short on both.
The best listing copy will portray the property in a positive light, while providing plenty of detail about the local area with a quirky edge which makes the property stand out. Some agents tend to go a little details-heavy, writing copy that ends up reading like an extended novella. Some agents, on the other hand, try too hard to be memorable and sacrifice too much detail. The ideal copy will get this balance right, which is a delicate process.
How much does it really cost to advertise a property?
For a long time now agents have used a rule of thumb that says that the marketing budget of a property should be roughly 1 per cent of the price of the home. Therefore if the value of the home is roughly $500,000 then a budget of $5,000 would be advisable.
However, this isn't always accurate and my advice is to recommend the campaign which will give the agent the best opportunity of achieving the highest price for the home. Naturally all real estate agents have to work within the constraints of the vendor’s budget, but often the vendor finds it’s worth the extra investment as they’ll likely achieve more at the sale.
One property that I transacted for $1,600,000 had a vendor who invested in a marketing campaign in excess of $30,000. Due to the nature of the property and its target market, anything less than this would have been inadequate and a waste of money. 
If there's someone you'd like to see asked about a topic for a Tuesday Q&amp;A, email <a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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Print v online, the costs and effectiveness of advertising: Q&A with Century 21's Alastair Kay

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Laorence Nohra is the chief executive of the Tradebusters Group, which includes Tradebusters Tradesman Concierge Services, Tradebusters Connect and Tradebusters Academy.
The <a href="https://www.tradebusters.com.au" target="_blank">Tradebusters </a>companies connect homeowners with a network of trusted tradespeople for a variety of projects. Property Observer spoke to Nohra about how renovators can avoid dodgy tradies and when it's time to tackle something on your own. 
When choosing a tradesperson for a renovation, what are the key things to consider?
<ul>
<li>Does the tradesperson have the right experience for the job? Each tradesperson is different so you want to make sure he or she has the right skill sets for your particular type of project.</li>
<li>Does he or she have the correct licences for the jobs they are undertaking? Licence requirements vary state by state and may be different depending on the size and value of the job</li>
<li>Are they covered by the right insurances?</li>
<li>Who will be doing the work - are they employees or sub-contractors?</li>
<li>Will they meet your timelines? Will this tradesperson be 100% focused on your project or do they have several running at the same time which runs the risk of your job dragging out. 
</li>
</ul>
How can renovators prevent issues with their tradesperson?
First and foremost, get the selection of your tradesperson right so that you don’t have any major or “unmanageable” issues. Unfortunately, issues become costly and stressful when the wrong tradesperson is selected, or, worse still, they have disappeared from the scene.
You'll also need to establish the track record of the tradesperson. Especially for major renovations - meet their recent customers and see the quality of the work. Find out what the customer experience was like with that tradesperson: did they meet deadlines, stick to budget and most importantly, how did they deal with issues that presented themselves along the way?
Find out if the tradesperson has clients that he or she does regular on-going work for, like local real estate agents or architects. How long have they know them and what can they say about the tradesperson's history and track record?
The thing with renovations is, sometimes thing do go wrong or expectations may not be completely met– but that can all be solved by selecting the right tradesperson upfront, and ones that care about their reputation and take pride in their work, as they are the guys that won’t leave until you are totally satisfied.
How can a person act when their tradeperson causes delays or doesn't complete a job as expected?
Always try and communicate your expectations around timelines and quality upfront.
In terms of how to “act”, don’t overreact and don’t be afraid to give feedback!  I have meet some homeowners that feel almost “afraid” to give a tradesperson feedback, but what they may not realise is that sometimes, unless you tell a tradesmen that there is an issue is, they may genuinely not be aware of it.
It’s always important to be as constructive as possible with the feedback and share the positives as well. Any reputable tradesperson will appreciate the feedback and work with you towards a positive outcome.
This article continues on the next page.
<hr class="system-pagebreak">
 
How can a person decide whether to DIY a renovation job or hire a team?
<ul>
<li>Do you have the time to DIY? Will it mean taking time off work and can you afford that?</li>
<li>Know your objective for doing it yourself. If it’s to save money, have you calculated the cost of your time off work and lost annual leave (something many people forget). It may take you far longer to do it on your own, which means it could be cheaper to hire a professional.</li>
<li>If it is a property you are planning to sell or rent, and going DIY means taking an extra four, eight or 12 weeks to get it to market or to get rental income, then does it work financially? It could actually be more costly to go DIY.</li>
<li>Are you experienced enough to do a DIY renovation? It is important to know your capabilities so that you are not left disappointed with the results, or, more importantly, risk your safety and health. Also, it is a lot more costly to bring a professional to fix up a DIY job gone-wrong than just to have a professional do the job in the first place.</li>
</ul>
<blockquote>
"I'm noticing a lot more women taking charge of renovation projects and doing it extremely well" 
</blockquote>
 
 
 
 
What are some of your top tips for DIY renovations?
<ul>
<li>Know your limitations and when to call in the professionals.</li>
<li>Absolutely leave anything that requires a licence or that is structural in nature to the professionals.</li>
<li>Don’t take shortcuts in areas where quality is highly visible, like tiling or cabinetry.</li>
<li>Take all precautions and don’t do anything that could risk your safety or those around you</li>
<li>Think twice about a DIY renovation for a property that you plan to sell post-renovation. As a potential seller, you have a huge opportunity to maximise the potential sales value of your property and reap the profits through a well done renovation. Quality plays a big part in that. Bad DIY jobs do not go unnoticed by potential buyers and can destroy potential profits.</li>
</ul>
What are some of the key trends in renovation that you're noticing at the moment?
I'm noticing a lot more women taking charge of renovation projects and doing it extremely well.
There's also a big trend in doing all the joinery of a home in a more consistent and sophisticated style from kitchen, to laundry to living and bathrooms, and all at the same time. Kitchen renovations continue to be popular, especially as they can add considerable value to the property, and homes are getting more lifestyle focused, with extensions of living areas “outdoors”, with covered decks, and mini outdoor kitchens.
For more information on what to do when your renovation goes wrong, see <a href="/expert-insights/building/lessons-from-the-block-what-to-do-if-your-tradie-disappoints">Lessons from The Block: What to do if your tradie disappoints</a>
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