<p>Not all apartment amenities are immediately visible.</p>

<p>Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.</p>

<p>Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe></p>

<p>Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.</p>

<p>The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.</p>

<p>It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.</p>


Joel Robinson

Parcel delivery is joining the apartment amenity checklist

<p data-end="471" data-start="164">Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.</p>

<p data-end="777" data-start="473">The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.</p>

<p data-end="976" data-start="779">Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.</p>

<p data-end="1119" data-start="978"><a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.</p>

<p data-end="1399" data-start="1121">"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.</p>

<p data-end="1399" data-start="1121">"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."</p>

<p data-end="1605" data-start="1401">The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.</p>

<p data-end="1852" data-start="1607">The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.</p>

<p data-end="1852" data-start="1607"><img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" /></p>

<p data-end="2031" data-start="1854">Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.</p>

<p data-end="2299" data-start="2033">"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.</p>

<p data-end="2588" data-start="2301">Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.</p>

<p data-end="4143" data-start="3991">Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.</p>

<p data-end="593" data-start="417">Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.</p>

<p data-end="789" data-start="598">New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.</p>

<p data-end="1053" data-start="794">IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.</p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a></em></p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a></em></p>


First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

<p>Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;</p>

<p>Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;</p>

<p>"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;</p>

<p>"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365782]</p>

<p>Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;</p>

<p>“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;</p>

<p>"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365785]</p>

<p>Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;</p>

<p>Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;</p>

<p>Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;</p>

<p>Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365767]</p>

<p>A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;</p>

<p>Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;</p>

<p>"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=365771]</p>

<p>Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;</p>

<p>"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;</p>

<p>"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;</p>

<p>There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.</p>

<p>[smartcode_project_cta:default project_id=108274]</p>


Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Palmera Residences fly out the door as sales pass $400 million

<p>National property developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has appointed BINAH as its construction partner for Quartet, its new Brisbane apartment development in the undersupplied suburb of <a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>.</p>

<p>Located just two kilometres from the Brisbane CBD and moments from key 2032 Olympic precincts, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet</a> will deliver 131 one, two, three, and four-bedroom apartments priced from $1 million to $4.2 million, combining elevated design with a wellness-focused lifestyle offering.&nbsp;</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=368000]</p>

<p>Goldfields’ Chief Executive Officer, Lachlan Thompson, said the appointment of <a href="https://www.apartments.com.au/builders/binah-constructions">BINAH</a> marked an important milestone for the project.&nbsp;</p>

<p>“Bringing BINAH on board as our construction partner will allow us to bring our vision for Quartet forward with a team that has a proven track record of delivering high-quality residential projects,” Thompson said.&nbsp;</p>

<p>“We’ve taken a considered approach to progressing the site because we wanted to deliver the whole package. Buyers ultimately back great developers, great projects and great builders, and with Quartet, we’ve made sure all three line up.</p>

<p>“People want certainty, they want to know the project will be built, that the homes will be delivered as promised, and that the developer stands behind the quality of what they create. That’s something Goldfields has built its reputation on over many years.”&nbsp;</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367993]</p>

<p>BINAH’s Managing Director, Khalil Hafza, said the company was proud to be partnering with Goldfields to deliver Quartet.&nbsp;</p>

<p>“Quartet is an exciting project to bring to life, particularly given the level of detail in the residences and the extensive rooftop amenity planned for the building,” Mr Hafza said.&nbsp;</p>

<p>“Our focus is on delivering a high-quality build that brings that design vision to life and creates homes residents will enjoy for many years.”&nbsp;</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367999]</p>

<p>The facilities at Quartet have been feared towards the roof, with a&nbsp;25 metre lap pool, spa, sauna and cold plunge, and a communal barbecue area and alfresco.</p>

<p>Town planning was designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by Melbourne-based architecture firm Cera Stribley.</p>

<p><a href="https://www.apartments.com.au/interior-designers/cera-stribley">Cera Stribley</a> Co-Founder and Managing Principal, Dom Cerantonio, said the project responds to both its riverside setting and Brisbane’s evolving urban character.&nbsp;</p>

<p>“Quartet has been designed to sit comfortably within its riverside context, offering a refined take on urban living through well-planned, generously proportioned residences that will stand the test of time,” Mr Cerantonio said.&nbsp;</p>

<p>“An emphasis on natural light, natural textures and carefully selected finishes from timber and marble to premium appliances, creates calm, considered interiors designed for comfort and long-term liveability.”&nbsp;</p>

<p>Construction of Quartet will commence in July 2026, with completion anticipated in Q4 2028.</p>

<p>[smartcode_project_cta:default project_id=108736]</p>


Construction to commence on 131-residence tower designed around wellness-focused living

Goldfields appoints BINAH for Quartet apartments in Milton

<p>The first partnership between national developer <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> and Adelaide-based developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> has made a strong start, with the pair securing $21 million in unconditional sales at <a href="https://www.apartments.com.au/new-apartments/one-four-four-hutt-adelaide-144-hutt-street-adelaide-sa-5000">One Four Four Hutt</a>&nbsp;on the edge of the Adelaide CBD.</p>

<p>Over a third of apartments have been snapped up in the boutique 44-apartment project on the corner of Hutt Stret and Wakefield Road. Local downsizers and owner-occupiers wanting to remain in Adelaide's tightly-held southeast quarter have been the most prominent purchasers.</p>

<p>The DKO-designed, mixed-use development is one of the few new apartment projects in the precinct, an area where new housing supply has remained limited despite continued demand from buyers wanting to stay close to the CBD, Victoria Park and Adelaide's established east-end amenities.</p>

<p>[smartcode_project:default project_id=151233 project_image_fid=375378]</p>

<p>Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.</p>

<p>"The level of early commitment reflects the confidence local buyers have in the Hutt Street precinct," Dendrinos said.</p>

<p>"Many purchasers are long-term east-end residents who love the area and want to stay connected to the neighbourhood. They recognise the value of a well-designed, well-located development.</p>

<p>"Our partnership with Otello has been central to this success, and the number of unconditional sales at this stage only strengthens our confidence in the South Australian market."</p>

<p>[smartcode_project:default project_id=151233 project_image_fid=375379]</p>

<p>Otello Director Daniel Harris said the sales result also highlighted the lack of new apartment opportunities within the Hutt Street precinct.</p>

<p>"One Four Four Hutt has clearly resonated with buyers, with strong early sales reflecting both the appeal of the Hutt Street corridor and the lifestyle on offer," Harris said.</p>

<p>"The activated ground-floor retail has also been a key drawcard, with purchasers responding to the vision of a more vibrant and connected streetscape, not just the residences themselves."</p>

<p>One Four Four Hutt will deliver 44 one, two and three-bedroom apartments, alongside a collection of penthouses, above a ground-floor retail offering designed to further activate the Hutt Street precinct.</p>

<p>Construction is scheduled to commence in the third quarter of this year, with completion anticipated in 2028.</p>

<p>[smartcode_project_cta:default project_id=151233]</p>


Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

Fortis makes Adelaide debut with Otello as One Four Four Hutt records strong early sales

Apartment Market

<html><body>
<p>Considering and discussing, the purchase of an investment property opens up all sorts of arguments, discussions and from time to time, polarizes the parties involved.</p>
<p>This is not to mention also spoiling a friendly neighborhood BBQ or coffee catch-up with a friend.</p>
<p>One of the many and current topics of discussion is whether we should buy new and off-the-plan apartments in one of the main three capital cities of Australia; namely Brisbane, Melbourne or Sydney?</p>
<p>I have taught and have written about off-the-plan purchases. The following reason for buying can be used as a blanket approach when considering a new apartment purchase. Notwithstanding, this strategy may be considered across any city or development, as a matter of course.</p>
<p>The main beneficial reason why an investor would buy a new apartment, before completion, was simple to understand in previous years. Developers needed pre-sales to support their construction application for the banks.</p>
<p>Pre-sales which are now predominantly called off-the-plan sales, had one major attraction in the past, which now appears to be lost. As an off-the-plan purchaser, there was a benefit; we bought early and saved from 5 and up to 10 percent the value “at the time” off the purchase price. <em>This was measured against prices of similar completed apartments, on the day</em>.</p>
<p><strong>The current trend and market for off-the-plan purchases.</strong></p>
<p>The current trend however, has bucked the reasoning behind the support given to developers with pre-sales.</p>
<p>On the one hand, developers have become greedy and with the support of the financial sector, have increased the asking price.</p>
<p>In other words, we now pay tomorrow’s market value for the apartment and with no added discount as a benefit. The underlying question is “but why?” This is all because of the highly speculative new client base: the overseas investors that have come in and in large numbers. As well as the Self-Managed Super Fund (SMSF) vehicles, set up for local speculators and investors.</p>
<p>Both overseas and SMSF investors are fueling the new-apartment development bubble as has never been seen before. With this in mind, developers and marketing companies have been able to increase:</p>
<ul>
<li>The end property values to account for market forces that has seen a huge upswing in prices; and</li>
<li>To pay for the high commissions paid out to marketing agents and the financial sector. Commissions in the tune of 8-10 percent.</li>
</ul>
<p><strong>The repercussion of industry greed</strong></p>
<p>The outcome of the high prices charged for new-apartments and higher commissions than the industry norm is a no-brainer; the losers are the buyers, most of the time.</p>
<p>For years, I have been discussing the need for the Real Estate Industry and watchdogs to tighten controls against this push, but my calls have fallen on deaf ears and the outcome is:</p>
<p>1)     We now have an understated over-supply of apartments across Brisbane, Melbourne and Sydney;</p>
<p>2)     The rental market cannot and will not effectively absorb the new supply, which will have an increase in rental vacancies; and</p>
<p>3)     The inevitable, valuers will value down apartments to safeguard their client’s interest, the banks.</p>
<p>We may well see drops of 20-30 percent in values and in the near future. Likewise, rental yields will diminish to 60-70 percent off what they are today.</p>
<p><strong>Supply chart of apartments to be completed in the next 12-24 moths</strong></p>
<p><a href="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.56%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.56%20AM.png" alt=""></p>
<p><strong>Where to from here?    </strong></p>
<p>I have been asked by friends, clients and family; where to from here? I have shared the following with them for over 12 months and only now the mainstream are coming to the party.</p>
<p>1)     Hold and wait; wait for another 6-12 months before looking to buy, if you need to buy new.</p>
<p>2)     Most of the new apartments are under-engineered, badly built and come with a lot of issues.</p>
<p>3)     Have you noticed that most spruikers try and only sell you, new and off-the-plan apartments? and</p>
<p>4)     Communicate as much as possible with local real estate agents that don’t have invested interest in the new development. After all, they may be the ones that will manage the property for you.</p>
<p>The caption below is an article recently posted by a colleague of mine. It is a timely argument of what is to come. This is all due to the huge oversupply of high-rise development. When we match this information with the number of apartments currently under construction; it appears to be the makings of a nightmare for investors in high-rise developments. </p>
<p><a href="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.43%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.43%20AM.png" alt=""> </p>
<p>The full article may be found on: https://mortgageeproperty.com/foreign-investor-settlement-risk-soaring.html</p>
<p><strong>Tips in managing your investment</strong></p>
<p>If you do find yourself in a position that you have bought an off-the-plan apartment and your property is in the final stages of settlement; I recommend the following tip, to minimize long term vacancy.</p>
<p><em>Don’t rely on the selling agent’s “marketing company” to lease your apartment, particularly if they were the leading agency in the sales phase. You only have to ask; how many other investor’s apartments are they also trying to lease out? </em></p>
<p>Now if you are looking to invest in new apartments, our old and proven theory remains steadfast. Invest in low set building blocks and preferably one’s that have no more than three levels.</p>
<p>More importantly, be sure to and look out for the next article on: buying in low set building blocks, versus high rise apartment blocks; winners and losers.  </p>
<p><em><span>EDWIN ALMEIDA</span> is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"><br></a></em></p>
<p><em>He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.</em></p>
</body></html>

ealmedia-arK4DBYLjS

Bumpy ride buying new apartments in Melbourne, Brisbane and Sydney: Edwin Almeida

<html><body>
<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Apartment markets are leading Melbourne’s recovery from the post-boom downturn. Hotspotting’s Spring survey of sales activity and prices provides strong evidence of revival in Melbourne, with units outdoing houses on price performance.</span></p>
<p class="p1"><span class="s1">Our survey has identified 73 markets where median prices have risen in the past 12 months and 79% of them are apartment markets. Examples include Fairfield (up 20%), Glen Huntly (up 15%), Niddrie (up 15%), Toorak (up 17%), West Footscray (up 15%) and Yarranville (up 15%)</span></p>
<p class="p1"><span class="s1">The most striking trend is the number of suburbs where the median house price is down but the apartment median is up: 53 suburbs across the Melbourne metro area have this scenario.</span></p>
<p class="p1"><span class="s1">Examples include:<span class="Apple-converted-space"> </span></span></p>
<ul class="ul1">
<li class="li1"><span class="s1">Brighton (house median down 18% but unit median up 8%);<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">Doncaster East (houses down 13% but units up 9%);<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">Heidelberg (houses down 13% but units up 11%;<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">Highett (houses down 20% but units up 9%);<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">Kensington (houses down 14% but units up 8%);<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">Mt Waverley (houses down 14% but units up 6%);<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">Ormond (houses down 16% but units up 13%); and<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">West Footscray (houses down 10% but units up 15%).</span></li>
</ul>
<p class="p2">Melbourne’s most expensive market, Toorak, provides the most stark contrast: the median house price has dropped 29% to $3.1 million in the past year, while the median apartment price has risen 17% to $985,000.</p>
<p class="p1"><span class="s1">There are also 48 markets where the median price is down in annual terms but has risen in the latest quarter – and 30 of those (63%) are apartment markets.</span></p>
<p class="p1"><span class="s1">Examples include Heidelberg Heights apartments, where the median is down 8% annually but up 4.6% in the latest quarter and South Melbourne apartments, where the median is down 4% annually but up 2.8% in the latest quarter.</span></p>
<p class="p1"><span class="s1">There are 129 markets where median prices are down 10% or more in annual terms and 110 of them are house markets – only 19 of the markets with big decline are unit markets.</span> </p>
<p class="p1"><span class="s1">Many of those with biggest annual decreases (above 20%) are suburbs where median house prices are above $1 million – or were before the recent decline. They include Box Hill, Box Hill South, Bulleen, Carlton, Hawthorn, Hawthorn East, Highett, Hughesdale, Ivanhoe, Ivanhoe East, Mont Albert North, North Melbourne, South Yarra, St Kilda and Toorak.</span></p>
<p class="p1"><span class="s1">Hotspotting’s Spring survey of sales activity shows solid evidence of the recovery that has emerged in Melbourne since the Federal Election result in May. The previous two years had shown the decline from the peak of the boom – at first gradual and then dramatic.</span></p>
<p class="p1"><span class="s1">The previous eight quarterly surveys had shown the following numbers of suburbs with growth markets (rising numbers of sales): 97, 60, 35, 30, 12, 9, 9, 2 and 0. That pronounced pattern of decline in sales activity heralded the end of Melbourne’s boom, which eventually led to decreases in median prices in the past 18 months.</span></p>
<p class="p1"><span class="s1">This latest survey shows the first evidence of turnaround. It identifies 20 suburbs with growing sales activity, with most of them in Melbourne’s middle market. Declining markets still outnumber rising ones, but the number of suburbs with downward patterns in sales activity has reduced from 113 in the Winter survey to 72 in this Spring survey.</span> </p>
<p class="p1"><span class="s1">Of the 30 LGAs across the Melbourne metro area, there are four LGAs with at least one growth suburb and no declining ones: Darebin (with Northcote as a growth market), Manningham (Templestowe and Donvale), Moonee Valley (Ascot Vale) and Nillumbik (Diamond Creek and Eltham).</span> </p>
<p class="p1"><span class="s1">Other Middle Melbourne areas with growth markets include the LGAs of Kingston (Moorabbin and Mordialloc), Moreland (Brunswick East and Oak Park) and Bayside (Hampton and Sandringham).</span></p>
<p class="p1"><span class="s1">Most of the suburbs with rising sales trajectories have median house prices in the range from $800,000 to $1.2 million.</span></p>
<p class="p1"><span class="s1">While the number of suburbs with declining activity is less than the previous survey, there are precincts where serious decline remains evident – many of them outer ring areas which had previously showed resilience against the post-boom downturn. They include the LGAs of Mornington Peninsula, Melton, Hume, Wyndham and Casey.</span></p>
<p class="p1"><span class="s1">Some of the more upmarket areas also continue to struggle including the LGAs of Glen Eira, Melbourne and Whitehorse.</span> </p>
<p class="p1"><span class="s1">Some municipalities demonstrate the folly of generalisation about property markets, with a range of contrasting scenarios playing out within the one precinct. The LGAs of Brimbank, Kingston and Whittlesea all have suburbs with diverse outcomes: some rising, some plateau, some consistency and some declining.</span> </p>
<p class="p3"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s3"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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terryryder-YECXbqmri2

Apartment markets leading Melbourne's real estate recovery: Hotspotting's Terry Ryder

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<div>The Reserve Bank of Australia (RBA) released its Statement on Monetary Policy for February 2017.</div>
<div> </div>
<div>Lots to digest as usual!</div>
<div> </div>
<div>Firstly, and probably the most interesting part, I thought, was the section concerning inflation forecasts. </div>
<p><span>The RBA sees inflation returning to the 2 to 3 percent target range, and as such interest rates are now likely to be on hold unless the labour market deteriorates from here. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/13/RBA1.jpg">Click to enlarge</a></p>
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<div> </div>
<div>Secondly, it also looks as though forecasts for growth in the economy are quite upbeat, tracking at around 3 per cent in 2017/18 and 3 per cent in 2018/19, before potentially rising further. </div>
<div> </div>
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<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/13/RBA2.jpg" alt=""></p>
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<div>Finally, housing.<br><br>There was lots to look at in terms of housing markets, although nothing particularly ground-breaking. </div>
<div> </div>
<div>Rental price growth is soft, apartment approvals are falling sharply, and turnover in the housing market is well below the average since 2008, reflecting low levels of stock on the market.</div>
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<div> </div>
<div> </div>
<div>On another related point, it's interesting to see that after copping a huge amount of heat for possibly 'overstating' dwelling price growth, CoreLogic's index has now seen other data providers catch up towards a similar rate of growth.</div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-fwYuSVH_zK0/WJ1xtkyg0nI/AAAAAAAAhq4/yj9DVQpv9DcgG2YagkiH7egejLALYgDhQCLcB/s1600/RBA1.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator">
<em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em>
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pwargent-M4siyDbqQY

Apartment approvals are falling sharply: Pete Wargent

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<p>Over the year to March 2017 Victoria delivered an impressive 66,085 new dwellings, 31,337 of which were attached dwellings of one sort or another.</p>
<p>Yet annual population growth has exploded to +146,600.</p>
<p>In short, you can basically forget any chance of an oversupply in Melbourne until population growth comes down from the stratosphere. </p>
<p>It's not happening, and indeed Melbourne's vacancy rates appear to be approaching decade lows.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/07/13/A1.jpg" target="_blank">Click to enlarge</a></p>
<div id="post-body-2953428177568349591" class="post-body entry-content">
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<br><div>Different dynamics<br><br>Annual population growth has ramped up in New South Wales too at +116,400.</div>
<div> </div>
<div>But with 64,824 new dwellings delivered over the year this crude ratio has shifted favourably towards the supply side after ten years of relative under-building in Sydney.</div>
</div>
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<br><div>With some 82,836 dwellings under construction across New South Wales there's plenty more to come too, in spite of dwelling starts now finally having passed their peak. </div>
<div> </div>
<div>Despite being a more diverse state - as well as being home to traditional boom/bust markets such as the Gold Coast - Queensland has followed a similar pattern. </div>
<div> </div>
<div>The Sunshine State delivered 46,469 dwellings over the year through a period where population growth had slowed dramatically following the peak of resources construction boom in 2012. </div>
<div> </div>
<div>Although population growth has now picked up in Queensland and dwelling starts are apparently slowing to a crawl, it's clear that an oversupply of new dwellings is writ large.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/07/13/A3.jpg" target="_blank">Click to enlarge</a></div>
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<div> </div>
<div>The number of dwellings under construction has been in decline since September 2016, with 37,624 dwelling units 'live' as at the end of the first quarter of 2017, and new starts have slowed dramatically, so the market is in the process correcting itself.  </div>
<div> </div>
<div>Notably, 28,391 of the dwellings under construction were of the attached variety, reflecting the super-boom in apartment construction up north. </div>
<div> </div>
<div>Of course these models aren't intended to be anything other than a crude dashboard, but are a simple display of the apartment oversupply that faces parts of inner city Brisbane.<br><br>Finally, Western Australia saw the completion of 28,535 dwellings in 2016, yet population growth slowed sharply to 16,835, illustrating what can happen to population growth in an economic slowdown.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/07/13/A4.jpg" target="_blank">Click to enlarge</a></div>
<div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/13/A4.jpg" alt=""></div>
<br>Population growth appears to have bottomed out in WA in line with a number of other indicators, but there is now a clear oversupply of dwelling stock to be absorbed. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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Forget any chance of an oversupply in Melbourne dwellings: Pete Wargent

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<div id="post-body-8331073014349855294" class="post-body entry-content">
<div>One should typically expect to see vacancy rates rise in December and January, and nationally vacancy rates were up to 2.8 per cent before Christmas according to SQM Research. </div>
<div> </div>
<div>The increase was largely driven by Brisbane, which jumped to 3.7 percent.  </div>
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<br><div>As these numbers aren't seasonally adjusted it's technically 'chart crime' to smooth them over a few months, but nevertheless this can help to give a sense of the trend. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/17/VR2.jpg" target="_blank">Click to enlarge</a></div>
<br><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/VR2.jpg" alt=""><br><br><div>We expect to see seasonal spikes in vacancy rates in suburbs such as Indro, Toowong, and perhaps Milton, at least in part because there are fewer students around over the summer break. </div>
<div> </div>
<div>The tasty action is happening in the construction hubs such as the Valley and Newstead...</div>
</div>
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<div><span style="text-decoration: underline;"><em> </em></span></div>
<div><span style="text-decoration: underline;"><em>Source: SQM Research</em></span></div>
<br><div>And especially South Brisbane and West End, though the student effect is a part of this December jump too.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/17/4101.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/4101.jpg" alt=""></div>
<br><div><em><span style="text-decoration: underline;">Source: SQM Research</span></em></div>
<div><span> </span></div>
<div>The trend is not the landlord's friend in these areas, with several thousand more inner city apartment completions expected to come onstream before the end of June. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Where Brisbane landords face rental challenges in 2017: Pete Wargent

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<p>With the populations of Australia’s major cities exploding, a shift to apartment living was always going to be essential to prevent urban sprawl from becoming unmanageable. Traditionally Australians have been resistant to apartment lifestyles, but that’s changing as apartment buildings become more advanced, and the infrastructure around them – shopping and recreational facilities – makes such lifestyles ever-more convenient and appealing.</p>
<p dir="ltr"><span>From the end of 2000 to now, there have been more than </span><a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-08-18/how-bad-could-the-apartment-building-crisis-be-in-your-state/11413122" target="_blank"><span>667,000 apartment buildings</span></a><span>, flats, or units built across the nation. This figure has been led by NSW (259,000), Victoria (174,000), and Queensland (143,000). There are issues with the environment around apartment buildings in Australia, with 97% of buildings between 2003 and 2018 featuring at least one defect, but this has not stopped the cranes coming in, and the skyline filling with increasingly-tall buildings.</span></p>
<h2 dir="ltr"><span>Within Australia’s Capital Cities</span></h2>
<p dir="ltr"><span>In fact, the appetite for apartments is almost too much, with oversupply now becoming a problem in some areas. Sydney’s notoriously-expensive housing market is leading to more people looking for rental apartments than ever, but heavy investment in apartment building (with over 30,000 new multi-unit dwellings in the last year alone) is making it difficult to fill all available property – in 2019, rental prices </span><a href="https://www.smh.com.au/national/nsw/apartment-oversupply-puts-squeeze-on-rents-20190705-p524cp" target="_blank"><span>dropped as much as $100 per week</span></a><span> in an effort by landlords to find tenants. Furthermore, Sydney has such a strong pipeline of additional units and apartments ahead of it that this trend is not likely to reverse soon.</span></p>
<p dir="ltr"><span>Melbourne’s property market, on the other hand, is being propped up by the growth in apartment buildings. In those areas of Melbourne where the median prices of property have risen over the last 12 months, a full</span><a href="/expert-insights/buying"><span>79% of those are apartment markets</span></a><span>. With Melbourne having gone through a post-boom downturn, this reversal being driven by apartments shows a shift it living expectations and demand in the city.</span></p>
<p dir="ltr"><span>In Australia’s smaller cities, such as Adelaide, apartment living is also a growing trend, albeit at a slower rate to the more traditional single-unit property market. Interestingly, new apartments in Adelaide average </span><a href="https://www.stratadata.com.au/strata-services/adelaide/" target="_blank"><span>the highest area across all capital cities at 152.3m²</span></a><span>. Through 2020 unit values are expected to increase by 1.1 per cent, while house values will increase by 5.1 per cent. The smaller capital cities have not had the kind of property booms that the major capitals have, however, price inflation for single dwelling houses has not priced them out of reach to the same extent, however, so this is less an indication of a weak demand for apartments as it is an indication that markets such as Adelaide will trend in the same direction as the major cities in the years ahead, as the market catches up.</span></p>
<h2 dir="ltr"><span>Threats To Australian Apartments</span></h2>
<p dir="ltr"><span>The biggest issue that the Australian property market faces, with regards to apartments, is the issue of the defects. Extreme cases, such as that of the Olympic Park Opal Tower, which</span><a href="https://www.theguardian.com/australia-news/2018/dec/25/sydney-olympic-park-opal-tower-evacuation-51-units-deemed-unsafe"><span>led to the eviction of residents</span></a><span> after 51 units were deemed unsafe, are the ones to make the news, but as mentioned earlier, almost all apartments built in Australia have defects.</span></p>
<p dir="ltr"><span>Across Queensland, NSW and Victoria, the five most common examples of defects were:</span></p>
<p dir="ltr"><span>1)</span><span>  </span><span>Internal water leaks (42 per cent)</span></p>
<p dir="ltr"><span>2)</span><span>  </span><span>Cracking to internal or external structures (42 per cent)</span></p>
<p dir="ltr"><span>3)</span><span>  </span><span>Water penetration from outside (40 per cent)</span></p>
<p dir="ltr"><span>4)</span><span>  </span><span>Guttering faults (25 per cent)</span></p>
<p dir="ltr"><span>5)</span><span>  </span><span>Defective roof coverings (23 per cent)</span></p>
<p dir="ltr"><span>These issues can have a dampening effect on the enthusiasm that people have for buying apartments, particularly under the knowledge of how frequent the problem is.</span></p>
<p dir="ltr"><span>While this is an issue that needs to be solved – and Australian state governments are </span><a href="https://www.customerservice.nsw.gov.au/our-stories/draft-building-legislation-targets-concerns-about-apartment-buildings" target="_blank"><span>looking to tackle the problem with legislation</span></a><span> – the benefits of apartment living for the modern Australian are too significant for the overall interest in apartments to change course. In addition to the convenience, with apartments generally located within easy reach of public transport and CBD areas, there are a host of other benefits to apartment living that make it a sound lifestyle choice for an increasing number of Australians. Living in an apartment requires less maintenance on the part of the owner or tenant. Much of the maintenance work falls under the responsibility of the body corporate, which can be both a significant time and money saver.</span></p>
<h2 dir="ltr"><span>The Benefits of Apartment Living</span></h2>
<p dir="ltr"><span>Apartments increasingly have common areas for residents which enhance the value of the space. Swimming pools, communal barbeques, gyms and security systems are all common amenities that have the added benefit that they help to foster a sense of community throughout the building. Finally, the costs of heating, cooling, water and electricity can all be mitigated to an extent in the way that billing for these utilities is handled for multi-tenant buildings.</span></p>
<p dir="ltr"><span>The signs are that the market for apartments is going to be a challenging one for investors in Australia for some time to come. Defects and the over-production of space is putting downward pressure on prices. At the same time, however, there is a decided shift away from the traditional “Australian dream” in which a family will own a house. The convenience and lifestyle “value-adds” of apartment living have kickstarted an irreversible trend across the entire country.</span></p>
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jrobinson-rf4aSBido9

Understanding the apartment landscape in Australia

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<p>EXPERT OBSERVER</p>
<p>A prestige apartment building in Sydney built by a well-known developer is undergoing a second replacement of a terrace waterproof membrane five years after replacement of the first one, which had leaked from completion. The second membrane almost certainly complied with the <a href="https://ncc.abcb.gov.au/ncc-online/About" target="_blank">National Construction Code</a> (NCC) and was certified as compliant; the first one might also have complied. Yet, for 15 years, owners and tenants living under the terraces have put up with mouldy walls, carpets and ceilings because the code does not adequately control waterproofing materials and methods.</p>
<p>A key assumption made by governments and regulators has been that confidence will return to the market if apartments are built to meet National Construction Code requirements. As the story above shows, complying with the code alone will not be enough to fix many common defects. Public confidence will still be lacking.</p>
<p>In 2017, the <a href="https://www.industry.gov.au/regulations-and-standards/building-and-construction/building-ministers-forum" target="_blank">Building Ministers’ Forum</a>, the group of federal, state and territory ministers responsible for building regulation in Australia, commissioned a report from Peter Shergold and Bronwyn Weir. Their <a href="https://www.industry.gov.au/sites/default/files/July%202018/document/pdf/building_ministers_forum_expert_assessment_-_building_confidence.pdf?acsf_files_redirect" target="_blank">report said</a> there was “… diminishing public confidence that the building and construction industry can deliver compliant, safe buildings which will perform to the expected standards over the long term”.</p>
<p>Since then, the high-profile structural failure and <a href="https://theconversation.com/the-big-lesson-from-opal-tower-is-that-badly-built-apartments-arent-only-an-issue-for-residents-109722" target="_blank">evacuation of Opal Tower</a> on Christmas Eve 2018, the <a href="https://theconversation.com/cladding-fire-risks-have-been-known-for-years-lives-depend-on-acting-now-with-no-more-delays-111186" target="_blank">cladding fire at Neo200</a> in February 2019 and the structural failure and <a href="https://theconversation.com/buck-passing-on-apartment-building-safety-leaves-residents-at-risk-119000" target="_blank">evacuation of Mascot Towers</a> in June 2019 have kept this issue in the media spotlight. If anything, the public <a href="https://www.afr.com/news/politics/national/the-apartment-building-crisis-explained-20190716-p527k0" target="_blank">crisis of confidence</a> has deepened.</p>
<h2>Part of the problem is the code itself</h2>
<p>The National Construction Code originated as a minimum standard to deliver structural integrity and fire safety. It was never intended to provide effective control over all the aspects of building work that make houses or apartments liveable and durable. This might come as a surprise to many people, including those in government, but it is inherent to the “minimum standard” approach that underpins the structure and objectives of the code.</p>
<p>The objectives on page 9 of volume 1 of the code, which covers apartments, are instructive:</p>
<blockquote>
<p>1) ensure requirements have a rigorously tested rationale; and</p>
<p>2) effectively and proportionally address applicable issues; and</p>
<p>3) create benefits to society that outweigh costs; and</p>
<p>4) consider non-regulatory alternatives; and</p>
<p>5) consider the competitive effects of regulation; and</p>
<p>6) not be unnecessarily restrictive.</p>
</blockquote>
<p>In attempting to consider “competitive effects”, avoid being “restrictive” and by encouraging “non-regulatory alternatives”, including self-certification and self-regulation, the code has opened the door to an “anything goes” mentality on many fronts.</p>
<p>Waterproofing requirements for houses and apartments under section F of the code are clearly ineffective, for a start.</p>
<p>The relevant Australian Standards, <a href="https://infostore.saiglobal.com/preview/315369811573.pdf?sku=120285_SAIG_AS_AS_252122" target="_blank">AS 4654.1</a> and <a href="https://infostore.saiglobal.com/preview/315378204076.pdf?sku=120284_SAIG_AS_AS_252120" target="_blank">AS 4654.2</a>, were written with a lot of input from the building materials supply industry. The standards permit the use of unsuitable waterproofing membranes in many situations, particularly where ceramic tiles are directly bonded to an inappropriate liquid-applied membrane. As the example at the start of this article shows, this solution rarely lasts longer than four or five years and considerably less in some cases.</p>
<p>Rectification is expensive and inconvenient. It involves hacking up and replacing all the tiles.</p>
<p>In addition, every apartment building built without a step in the slab at the junction between walls and floors will probably develop leaks within a similar timeframe.</p>
<p>These practices are driven by the desire to save a few dollars in construction cost, not by a commitment to deliver a required standard of durability. Durability is not part of the code objectives.</p>
<h2>How can the code be fixed?</h2>
<p>We could improve the code in a number of simple ways:</p>
<ol>
<li>
<p>Class 1 (houses) and class 2 (apartments) buildings should both be in volume 2, which would be dedicated to housing intended for sale. Houses and apartments should be required to be “fit for purpose” with a clearly stated objective to provide protection to the buyer. These should include a mandatory minimum statutory warranty of seven to ten years, backed by government.</p>
</li>
<li>
<p>The required durability of waterproofing membranes and details for all housing, and class 2 apartments in particular, must be clearly stated. Waterproofing should be required to last at least 25 years without significant maintenance, and perhaps 40 years for buildings where access to the waterproofing element requires demolition or is fundamentally difficult. Details that are not durable, including slabs without steps at wall junctions, or terrace and balcony tiles directly bonded to liquid-applied waterproof membranes, should be banned.</p>
</li>
<li>
<p>The structure of an apartment should be required to last with no substantial maintenance for at least 50 to 60 years. The minimum expectation for durability for any envelope component and associated finishes on buildings over three storeys should be 25 years, and perhaps 40 years for taller buildings.</p>
</li>
<li>
<p>The “performance requirements” of section F of the code, “Health and Amenity”, should be expanded to ensure apartments are comfortable, economical to maintain and <a href="https://theconversation.com/dont-forget-our-future-climate-when-tightening-up-building-codes-113365" target="_blank">sustainable</a>.</p>
</li>
</ol>
<p>Some developers are already delivering well-designed apartment buildings that are durable and fit for purpose. They are to be commended. The <a href="https://theconversation.com/lack-of-information-on-apartment-defects-leaves-whole-market-on-shaky-footings-127007" target="_blank">problem for buyers is identifying these</a> amid a sea of dross.</p>
<p>For new houses and apartments, we need to ensure the National Construction Code matches community expectations on fitness for purpose and durability. This requires a return to more active and interventionist regulatory framework, including putting independent “eyes on the site” to inspect work during construction.<img src="https://counter.theconversation.com/content/126678/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;"></p>
<p><span><a href="https://theconversation.com/profiles/geoff-hanmer-90647" target="_blank">Geoff Hanmer</a>, Adjunct Lecturer in Architecture, <em><a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a></em></span></p>
<p>This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/to-restore-public-confidence-in-apartments-rewrite-australias-building-codes-126678" target="_blank">original article</a>.</p>
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j.ballantyne1990-6AQqhLzZaK

To restore public confidence in apartments, rewrite Australia’s building codes

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">I’m expecting uplift in apartment markets in the major cities as we transition into the New Year. It’s clear from the evidence that’s emerging week by week that the post-boom correction that afflicted Melbourne and Sydney has run its course and recovery is real.</span></p>
<p class="p1"><span class="s1">But, contrary to the general tone of mainstream media, there was no blanket collapse in price levels across the two biggest cities during that recent downturn. Some market sectors were strongly resistant.</span></p>
<p class="p1"><span class="s1">Generalised reporting, with a single figure to describe outcomes in an entire very large city, disguises the myriad scenarios playing out across a metropolitan area. At Hotspotting, we conduct a suburb-by-suburb analysis of sales activity and price trends every quarter and that shows how many variances there are. Even neighbouring suburbs can have contrasting fortunes. It’s fundamentally about local conditions.</span></p>
<p class="p1"><span class="s1">A trend I saw during that correction phase was numerous suburbs in both Melbourne and Sydney where median house prices were down (a lot, in many cases) but median unit prices were still up.</span></p>
<p class="p1"><span class="s1">As investors fell away, younger home buyers became increasingly active and there’s a preference among young adults for the apartment lifestyle, and not only because units are cheaper. Young adults are making choices that are different to those of their parents and grandparents, who generally opted for the suburban house on land.</span></p>
<p class="p1"><span class="s1">Apartments offer a low-maintenance low-energy lifestyle, often in a better-connected location at a cheaper price. So demand for apartments held up pretty well in the big-city downturn and prices stayed solid in many locations (not all).</span></p>
<p class="p1"><span class="s1">And now we have the brave new world of recovering or rising markets in our capital cities. We’re entering 2020 with real estate consumer confidence rising and buyers becoming increasingly active, helped by easier finance and tax cuts, and nudged along by a more positive tone in media coverage.</span></p>
<p class="p1"><span class="s1">First-home buyers are busy and, according to the ABS date, more prominent (measured by their share of owner-occupier loans) than at any time in the past 7-8 years.</span></p>
<p class="p1"><span class="s1">The Federal Government’s assistance package will add impetus – and urgency, because it’s limited to the first 10,000 who take action.</span></p>
<p class="p1"><span class="s1">So demand in big-city apartment markets is likely to strengthen.</span></p>
<p class="p1"><span class="s1">Here are some case studies.</span></p>
<p class="p1"><span class="s1">The Moreland LGA in Melbourne attracts a lot of demand from both renters and buyers, thanks in part to the proximity of the big medical/education precinct around Parkville/Carlton. Most postcodes have vacancies well below 2%.</span></p>
<p class="p1"><span class="s1">In the popular suburb of Brunswick, you pay close to $1 million for the typical house but the median price for units is a little above $500,000. In Coburg, the median prices are around $900,000 for houses and $500,000 for units. So you can get into the typical apartment for half the price of houses, generally speaking.</span></p>
<p class="p1"><span class="s1">In the past 12 months, the median house prices in both suburbs have dropped significantly, but median unit prices have increased – by 4% in Coburg and 6% in Brunswick.</span></p>
<p class="p1"><span class="s1">In the Northern Beaches area of Sydney, Dee Why attracts consistent demand for apartments, with over 500 unit sales in the past 12 months. The median prices are $1,530,000 for houses and $740,000 for apartments – and price levels have stayed solid for apartments while houses are down 9% in annual terms.</span></p>
<p class="p1"><span class="s1">In the Northern Beaches suburb of Newport, the median price comparison is $1,700,000 for houses and $860,000 for apartments, with house prices down 8% in annual terms, while apartment prices are up 4%.</span></p>
<p class="p1"><span class="s1">Another factor boosting apartment markets is the fall off in construction levels, which means supply levels have moderated at a time when demand generally is rising. Vacancy rates are low and falling in most of our capital cities, although there are exceptions and buyers need to be informed about local situations.</span></p>
<p class="p1"><span class="s1">In Kangaroo Point in inner-city Brisbane, you pay around $460,000 for the typical apartment and vacancies, which were consistently above 5% in recent years, are now down around 3%.</span></p>
<p class="p1"><span class="s1">A year ago, the vacancy rate for South Brisbane was around 8%. Now it’s around 4% and trending in the right direction. The median apartment price is around $500,000, up slightly in the past 12 months.</span></p>
<p class="p1"><span class="s1">I’m not advocating that people dash out and buy apartments – and we could have large debates about the pros and cons of investing in apartments, But I do think we’re going to see rising demand in unit markets in the major cities in 2020, especially by owner-occupier buyers, with first-timers prominent.</span> </p>
<p class="p4"><span class="s3">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p4"><span class="s4"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p5"><span class="s3"><em>twitter.com/hotspotting</em></span></p>
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Uplift in major city apartment markets coming: Hotspotting's Terry Ryder

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<p>Despite the rebound in housing market activity and existing dwelling prices seen over recent months, we should not be expecting a sudden rebound in the new construction apartment market, <span>according JLL.</span></p>
<p>Conditions will remain tough for developers in the short-term, particularly in Sydney and Melbourne as the tail end of the last construction cycle is absorbed, JLL's 3Q 2019 Apartment Market Reports said.</p>
<p>Nevertheless they said, these challenges will see supply continue to fall sharply over the next few years and will see the major markets move into under-supply progressively over the next 12-24 months.</p>
<p>"The recovery in existing property demand and prices is great for confidence in the broader market," <span>JLL’s Head of Residential Research - Australia, Leigh Warner said.</span> </p>
<p>"However, this is likely to level out a little over the next couple of quarters, as more vendors are attracted back into the market. The recovery in investor demand is also likely to stay more muted than for owner occupiers and this remains an important source of demand for the new apartment market.</p>
<p>"Demand for new apartments will improve somewhat, but pre-sales rates will stay relatively slow. Developers are still competing against residual un-sold stock in recently completed projects, which in many cases are heavily discounted or offering other incentives to buyers."</p>
<p>"The good news is that with strong population growth and new completions still falling sharply, the process of consuming this residual stock will be reasonably quick. The timing of this process will be slightly different in each market due to all having slightly different construction cycles, but by mid-2021 we expect all the major markets to be either back in, or very close to, a position of under-supply again."</p>
<p>JLL data showed that the number of apartments under construction in the inner-city regions of Australia’s six major capital cities fell a further 5% in 3Q19 to 37,500 apartments and was down 23% over the past year and over 30% from its peak.</p>
<p>However, JLL said that perhaps the strongest sign of the decline that is still to come in apartment construction is the decline in the number of apartments being actively marketed. This fell a further 19% in 3Q19, to be 42% below a year ago and around 63% below its peak level. This decline has been felt across all monitored markets, but has been most severe in Sydney where it has fallen 54% over the past year and 80% from its peak level.</p>
<p>According to Warner, Brisbane is likely to be first into the next cycle.</p>
<p>"Brisbane supply peaked way back in 2016 and is more advanced in the process of absorbing residual stock. Construction will be particularly low in 2020 and 2021. At the same time, underlying demand continues to pick up as regional population growth increases and some large inner city infrastructure projects boost economic activity and lure construction workers to the region. A tightening of the market is already evident in the rental market, where upward pressure on rents have already re-emerged."</p>
<p>Melbourne and Sydney are likely to take a little longer to tighten up., he said.</p>
<p>"Melbourne’s very strong population growth will help with consumption of stock, but construction has been very concentrated in and around the CBD and there are some very large projects recently completed or soon to complete that still have a large amount of stock to be absorbed first," said Warner.</p>
<p>"In comparison, Sydney’s construction cycle was much more decentralised and only reached a peak much more recently. As such, residual stock to be absorbed is more spread across the entire Greater Sydney area and will take a little longer to work through. The recent building defect issues have also affected buyer confidence in the market. With a lot more choice in the market, we think buyers will gravitate to both the best locations and to projects with more widely recognised developers and builders."</p>
<p>"Perth’s housing market remains soft, but there is increasing optimism that better times are ahead. Improved local economic and population growth over the next few years should boost underlying demand growth, while lower interest rates and easier credit should also lure some buyers out of the rental market that have been holding off for prices to stabilise. Similarly, apartment prices are lower than they were a decade ago in Perth and this affordability and improving market outlook may attract a little more investor interest."</p>
<p>"Neither Adelaide nor Canberra have historically had significant apartment markets, but apartment living has started to take off in both markets over recent years. Supply levels remain elevated in both markets, which will put some moderate pressure on pricing ahead, but solid economic prospects and improved market sentiment after the interest rate cuts and easing of credit constraints is likely to mean a shallow downturn for Adelaide and Canberra. Further, smaller owner-occupier focused stock is likely to continue to hold up well."</p>
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Conditions will remain tough for apartment developers for now: JLL 

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<p>Melbourne apartments will fair better than Sydney over 2020, suggest NAB.</p>
<p>NAB expect Melbourne's apartments to close the year with values 4.2 per cent higher, compared to Sydney's 1.6 per cent.</p>
<p>In 2020 they forecast apartments in the Victoria capital to increase 7.4 per cent, the same as their <a href="/news/sydney-and-melbourne-house-values-to-rise-over-seven-percent-in-2020-nab">revised median house price forecasts</a>.</p>
<p>Sydney is expected to grow at a slower 4.3 per cent rate.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/24/NAB%20UNIT%20PRICE%20FORECAST.jpg" alt=""></p>
<p>Both will drive the capital city average of 3.9 per cent, with declines predicted to be felt in Perth, Brisbane and Adelaide.</p>
<p>The NAB Residential Property Index has <a href="/news/nab-residential-property-index-ticks-into-positive-for-first-time-since-mid-2018">moved back into positive territory</a> for the first time since mid-2018, reflecting the uptick in market activity in recent months.</p>
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