Not all apartment amenities are immediately visible.

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.

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.

Online shopping has been one of the biggest drivers of that shift.

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.

For apartment residents, however, receiving those deliveries isn't always straightforward.

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.

Australia Post's Parcel Locker network is one response to that shift.

<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>

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.

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.

That growing presence reflects a broader change in how apartment buildings are being planned.

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.

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.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

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.

Joel Robinson

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

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.

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.

<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.

"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.

"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."

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.

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.

<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" />

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.

"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.

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.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

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.

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.

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.

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>

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>

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

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;

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;

"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;

"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;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“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;

"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;

[smartcode_project:default project_id=108274 project_image_fid=365785]

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;

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;

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;

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;

[smartcode_project:default project_id=108274 project_image_fid=365767]

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;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"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;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"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;

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.

[smartcode_project_cta:default project_id=108274]

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

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>.

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;

[smartcode_project:default project_id=108736 project_image_fid=368000]

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;

“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;

“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.

“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;

[smartcode_project:default project_id=108736 project_image_fid=367993]

BINAH’s Managing Director, Khalil Hafza, said the company was proud to be partnering with Goldfields to deliver Quartet.&nbsp;

“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;

“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;

[smartcode_project:default project_id=108736 project_image_fid=367999]

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.

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.

<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;

“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;

“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;

Construction of Quartet will commence in July 2026, with completion anticipated in Q4 2028.

[smartcode_project_cta:default project_id=108736]

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

Goldfields appoints BINAH for Quartet apartments in Milton

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.

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.

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.

[smartcode_project:default project_id=151233 project_image_fid=375378]

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.

"The level of early commitment reflects the confidence local buyers have in the Hutt Street precinct," Dendrinos said.

"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.

"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."

[smartcode_project:default project_id=151233 project_image_fid=375379]

Otello Director Daniel Harris said the sales result also highlighted the lack of new apartment opportunities within the Hutt Street precinct.

"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.

"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."

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.

Construction is scheduled to commence in the third quarter of this year, with completion anticipated in 2028.

[smartcode_project_cta:default project_id=151233]

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

Investor Opportunity

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Hi Margaret,
I am currently educating myself on property investing before buying my first investment property.
I am currently reading your book “Investing in the right property now!” in the third chapter you mention looking for an area which has low housing starts. My question is how to quantify “low”, I realise there is probably  no magic number but should I be looking for a region where housing start do not exceed population growth or should I simply assess the areas vacancy rates as an indicator of whether the new developments are creating an over supply.
As an example, one area which I am considering an investment has a population of ~50,000, an annual population growth of 1 percent and housing starts are as follows 2015-‘16=447; ‘14-‘15=340; ‘13-‘14=243; ‘12-‘13=227
Of course I am considering many other factors when analysing an area as mentioned in your books but this is just the one I am having troubles with at this point in time
Thank you kindly,
Sam
 
Hi Sam, 
Your question is a good one and it’s important to consider a range of factors when choosing an area where you would like to invest in property.
I would like to point out that, as mentioned in the book, you have to ensure that you don’t get caught up in just one statistic or factor, as that factor alone could be painting a different picture than the one you want to eventuate!
Let me explain.  There are many growth drivers, and they all work as only a small part of an overall puzzle, somewhat like a jigsaw puzzle. With too many pieces missing, the puzzle just does not work.  The more pieces you can fit into that puzzle, the better the picture becomes. 
Where property is concerned, the pieces are the growth drivers, but taken alone a single piece is not enough, or may not provide the right picture. Take the ‘housing starts’ you refer to. The idea behind ensuring that there is not too much development going on is to ensure that the area is not oversupplied with property.  Since the only thing which ultimately drives growth is demand, an oversupply of property will dilute that demand and lead to a sustained period of low, or no growth.
Now,  you may find an area with 50,000 population and low housing starts, but those low housing starts figures could be because no one is moving there, or there is little employment or anything else happening in the area.  And so the low housing start factor must be combined with a population growing faster than inflation, diversified employment, no new land for future development and a number of other factors for it to be a pointer to future property price growth.
There is no figure or calculation, but if the population is growing by, say, 1 percent per annum and housing starts are only growing by 0.5% per annum, and other drivers also exist, then it makes sense that a future increased demand for housing may ensue.
Always make sure that you examine all of the factors – it is the trend of those factors and their relationship to each other which becomes important, rather than the number itself.
Have a property question?  <a href="mailto:news@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Low housing start insights for investors: Ask Margaret

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Perth represents both danger and opportunity for property investors at present. 
The city, which led the nation on price and rental growth in 2012 and early 2013, is three years into a cyclical downturn, exacerbated by the wind-down in the resources investment boom.
Sales activity has been falling steadily since 2013 and the decline has gathered pace since the start of 2016. Some Perth suburbs have sales volumes at a fraction of their former levels, indicating further price decline is likely. 
This situation has been further impacted by vacancies well above 3% in many areas, as workers have left the city in the wake of the resources downturn and the ripple effect that has had on business in Perth (creating CBD office vacancies above 20 percent).
The situation also represents opportunity for counter-cyclical investors to buy well while price are down and competition is weak. Perth historically has been a population growth leader and one of the strongest capital cities for long-term capital growth. Perth property markets will recover and now is a good time to be looking for bargains.
Investors, however, should continue to avoid the inner-city apartment markets which have very high vacancies and an oversupply situation that is likely to get worse before it gets better. Housing markets will recover before apartment markets do.
Hotspotting’s latest research on sales activity demonstrates that the downward trend in the Perth market has deepened recently. Growth markets have vanished and there are now multiple suburbs classified as “danger” markets, with more likely to be added to the warning list if current sales patterns continue in coming quarters. 
Perth’s decline has been happening since the peak in early 2013 and the downturn has worsened since the beginning of 2016.
The number of dwelling sales in the WA market was above 16,000 per quarter in early 2013. Sales dropped below 15,000 per quarter in 2014 and below 13,000 in 2015. The market has dropped further in 2016, with around 8,300 sales in the March Quarter and fewer than 7,000 in the June Quarter. Sales rates are now well under half those of two years ago.
The suburb of Mt Pleasant in the Melville LGA has the kind of sales trend that sellers don’t want: sales totaling 62, 50, 42, 25 and 15 in the past five quarters. 
The suburb of Nollamara in the Stirling LGA has dropped from well above 100 per quarter to 55 in the March Quarter and 35 in the June Quarter. In nearby Yokine, the sales pattern has been 103, 95, 75, 74, 79, 51 and 38 (with vacancies at 5.3% in that postcode).
In Fremantle, the sales pattern since early 2014 has been 85, 61, 66, 60, 59, 47, 49, 45, 27 and 25. In Rivervale in the Belmont LGA, the sales pattern has been 101, 84, 100, 69, 78, 55, 81, 71, 74, 32 and 24. With a vacancy rate around 8%, the immediate future looks bleak.
The malaise has spread to all market sectors. Upmarket Mosman Park’s quarterly sales record is 74, 72, 76, 62, 51, 62, 47, 41, 30 and 25. In downmarket Gosnells, quarterly sales since early 2014 have been 153, 158, 134, 123, 103, 118, 109, 82, 75 and 53, so current sales are a third of the peak levels.
So what should investors do? Avoid Perth altogether? Wait until they read about recovery? Or become counter-cyclical buyers?
Most investors are herd animals who never take advantage of down markets. They jump into markets when they read there’s a boom under way, as so many did in Sydney over the past few years.
The really smart investors, and there were some, saw what was coming, bought before 2013 and got full benefit from the capital growth that followed. 
The switched-on ones who think and act counter-cyclically will see opportunities to buy bargains in Perth. Prices are down right across the metropolitan area so there’s no shortage of good opportunities, as well as a lack of competition from other punters.
High vacancy rates would deter many, because of difficulties finding tenants at acceptable rentals, but not everywhere has 5-6 percent vacancy rates. 
Investors just need to believe Perth has a future. And obviously it does, although it may not feel much like it at present. WA has been a nation-leading growth economy many times and will be so again in the future. Perth has led on population growth and property price escalation, and has had two notable up-cycles in the past 10-12 years. It will recover.
 
 Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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terryryder-YECXbqmri2

Perth represents both danger and opportunity for property investors: Terry Ryder

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GUEST OBSERVER
The Reserve Bank of Australia (RBA) released its Financial Aggregates figures for January 2017.
Although housing credit continued to chug along in notching growth of 0.5 per cent in the month, total credit growth sagged to just 0.2 per cent due to negative results for the business and personal sectors.
Housing credit for investors continued to rise to 6.6 percent across the year to January, suggesting that further hikes may be in the post for investor loans.
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA1.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA1.jpg" alt="">
Total credit growth was 6.4 percent, while broad money growth was 7 percent.
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA2.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA2.jpg" alt="">
Deposit growth has strengthened considerably as banks look to shore up their capital. 
Even term deposits, understandably out of favour for some time, are recording growth at a double digit pace, with some accounts set to offer bonus interest on larger balances. 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA3.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA3.jpg" alt="">
Switcheroo
The total value of outstanding credit has doubled over the past decade to $1.64 trillion.
The exact split of loan purpose between owner-occupier and investor credit remains murky, with a net value of $49 billion having been switched away from investment loans since July 2015.
This reflects the interest rate differential between loan types, but note that the credit growth figures by loan type have been adjusted for the net value of switching. 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA4.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA4.jpg" alt=""> 
The poor monthly result for business and personal credit sees housing resume its apparently inexorable rise in terms of market share. 
<a href="https://www.propertyobserver.com.au/images/2017/03/02/RBA5.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/02/RBA5.jpg" alt="">
The wrap
All regulatory eyes will be on the growth in investor loans, with more measures likely to be taken to cool this sector as 2017 progresses. 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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">Four Green Houses and a Red Hotel</a>.
 
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pwargent-M4siyDbqQY

Housing credit doubles in a decade: Pete Wargent

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Australian real estate fund manager EG announced the establishment of its new private wealth division.
The data-driven investment manager’s new division, headed by director Rodney Walt, will supply commercial property syndication opportunities for investors and family offices.
“We are pleased to officially offer this new service to sophisticated investors interested in commercial real estate, providing them with the opportunity for future growth in the current economy,” Walt said.
A proprietary risk management software, PRISMS, will be used to identify the opportunities, consider the risk and match the deal to investors.
Investors can expect to benefit from high income returns supported by a long-term lease, and to receive an average distribution of 8.5 per cent per annum based on a 7-year hold strategy.
The company, which is targeting a minimum $150 million in gross asset value over the next 12 months, also conducted an announcement to sophisticated investors for a specific opportunity today.
EG is targeting crash distributions of 8.5 per cent per annum in real estate.
Investors are asked to participate in commercial real estate opportunities offering high-yielding secure investments.
The company calculates an equity internal-rate-of-return forecast at 11 per cent, with opportunities of a 15-year lease term to a global tenant.
EG has over $3.2 billion in assets under management, with two decades experience in institutional mandates.
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j.ballantyne1990-6AQqhLzZaK

Funds manager EG announces new private wealth division 

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Medina, Armadale and Parmelia are among the top 10 Perth suburbs for investors to keep an eye out for in 2020, according to the latest reiwa.com data.
REIWA President Damian Collins said with the Perth property market starting to show signs of improvement, there are some great opportunities out there for investors.
“Our analysis showed there are a number of suburbs that have high rental returns for investors and the properties are leasing at faster than the average time. With interest rates at record lows, many of these properties are likely to be positively geared,” Mr Collins said.
“There are a lot of contributing factors that make a good investment property, however suburbs that have a high rental yield, such as Medina which had a 7.5 per cent rental yield, and lower than average days to lease, are ones to consider."
“In the 12 months to December 2019, it took approximately 17 days for a property to lease in Medina, which is well below the Perth average of 28 days, and demonstrates the suburb is in high demand by tenant,” Mr Collins said.
<img src="https://www.urban.com.au/images/2020/2/24/WA%20leasing%20data.JPG" alt="">
Of these top suburbs, eight of them are located south of the river, with Armadale and Parmelia following close behind Medina.
It took 14 days on average to lease a property in Parmelia, which had a rental yield of 5.6 per cent. Armadale had a higher yield at 6.2 per cent, however it took 27 days on average to lease.
Rounding out the top five is Seville Grove and Port Kennedy which both had a rental yield of 5.6 per cent.
Mr Collins said, "while the suburbs in this top 10 list are not rated by their lifestyle, popularity or future growth, they have faster leasing times and high rental yield which is important to investors."
“With Perth currently the most affordable capital city in Australia and the vacancy rate at a low of 2.3 per cent, now is the ideal opportunity for investors to get back into the Perth property market,” he concluded.
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Top suburbs for WA property investors revealed: REIWA

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Property market analyst Margaret Lomas, founder of Destiny Financial Solutions, has pinpointed five good options for investors.
“People are worried about buying property at the moment and you can’t blame them - the headlines are screaming doom and gloom,” she told <a href="https://www.yourmoney.com.au/real-estate/top-five-suburbs-for-property-investors-in-2019/" target="_blank">Your Money Live.</a>
“But even among that, there is some good news around property… and there are definitely places you should be buying.”
With those in mind, Lomas shared her top five suburb picks for 2019.
Whittington, VIC
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%201.JPG" alt="">
This Victorian suburb located around 4km from Geelong’s town centre ticks all the right boxes, according to Lomas.
“The thing I like here is that it’s cheaper compared to East Geelong, which it borders,” she said.
Despite being mere steps apart, the median house price in East Geelong is $651,000 compared to Whittington’s $360,000, leaving plenty of potential for growth.
Lomas says the area is undergoing gentrification as state housing moves out to be replaced by owner-occupiers and family units.
And despite the property downturn, Whittington has recorded growth of 5.95 per cent in the last year.
<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/2019/1/10/whittington%201.jpg" alt="">
An example was a three bedroom house at Whittington sold for 350,000 in Novermber 2018 (above).
Set on a 724sqm allotment, the renovated home at <a href="https://www.realestate.com.au/sold/property-house-vic-whittington-129480950" target="_blank">4 Alouette Court </a>comes with three bedrooms, kitchen/dining with floating bench space, large living area and separate laundry.
It's located just 10mins from Geelong CBD and within close proximity to several well regarded primary and secondary schools, Newcomb Centro, Aldi, and Bellarine Village Shopping Centres. 
<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/2019/1/10/whittington%202.jpg" alt="">
A current listing is a three bedroom brick house priced between $340,000 to $365,000 (pictured above).
Nestled on a 613sqm block in the heart of Whittington, the house at <a href="https://www.realestate.com.au/property-house-vic-whittington-130111998" target="_blank">6 Proton Court</a> consists of three bedrooms, functional kitchen/meals area, good sized living room and covered entertaining area. 
It's close to Newcomb Shopping Centres and within walking distance to local primary and secondary schools, community centre, public transport and 10 minutes to Geelong CBD.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
Bibra Lake, WA
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%202.JPG" alt="">
While property values are falling across Perth, a few standout suburbs are bucking the trend, including Bibra Lake.
While homes along the lake have an average price tag of $535,000, one street back from the water brings that figure down to just $390,000.
“It offers a fabulous lifestyle… it’s only about a 10 minute drive from the coast and there’s a freeway going right through Bibra Lake as well as a rail line,” she said.
That makes it about a 20 minute commute into Perth’s CBD.
<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/2019/1/10/bibra%20lake%201.jpg" alt="">
A Bibra Lake four bedroom house in a quite street in Bibra Lake has been sold for $595,000 (pictured above).
Situated at <a href="https://www.realestate.com.au/sold/property-house-wa-bibra+lake-129249282" target="_blank">11 Lachlan Way</a>, the family home comes with four bedrooms, renovated kitchen and laundry, games room, solid timber fllors throughout living areas, and oversized double lock up driving through garage. 
It's only 500m from Bibra Lake and 400m from Bibra Lake Primary School. 
<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/2019/1/10/bibra%20lake%202.jpg" alt="">
A current offering is a four bedroom house located in the heart of Bibra Lake priced over $500,000 (pictured above).
Situated at <a href="https://www.realestate.com.au/property-house-wa-bibra+lake-130120434" target="_blank">28 Marchant Drive</a>, it comes with four bedrooms, open plan dining/living, modern kitchen, and separate front lounge/games room.
The outside features extra long carport with automatic door, powered workshop or studio, below-ground pool and covered alfresco.
Petrie, QLD
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%203.JPG" alt="">
One of the most positive features of the area is the soon to be opened USC Moreton Bay university campus, Australia’s newest university.
The project is expected to attract around $950 million into the local economy, plus 6,000 extra jobs, by 2036.
While the median price for a house is around $440,000, 2-3 bedroom units cost upward of just $300,000, perfect for the upcoming influx of students, said Lomas.
<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/2019/1/10/pietrie%201.jpg" alt="">
A recent sale was a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-qld-petrie-129680110" target="_blank">3 St Marcel Ct </a>traded for $425,500 (pictured above).
The family home features open plan living combined with dining, three bedrooms plus study or 4th bedroom, renovated kitchen, and large covered outdoor area. 
It is located within close proximity to the central amenities in Petrie such as schools, shops, train and bus transport, and bush walking at the Mungarra reserve.
<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/2019/1/10/petrie%202.jpg" alt="">
A two bedroom apartment situated on the edge of Sweeney Reserve has been listed for $325,000 (pictured above).
Located at <a href="https://www.realestate.com.au/property-unit-qld-petrie-129611322" target="_blank">61/9 Houghton Street, Petrie</a>, the apartment features open plan living, two bedrooms, two bathrooms, and kitchen with stone bench tops. 
It's only 400m to shops and supermarkets, 900m to the Petrie station and just over 900m to the new Petrie University Complex. 
Modbury, SA
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%204.JPG" alt="">
You may have heard about the Australian Space Agency, soon to be based and further developed in South Australia.
Because the project is expected to attract mid-to-high income earners to Adelaide, Lomas predicts they’ll be looking at the city’s up and coming areas, such as Modbury.
Situated around 20 minutes from Adelaide’s city centre, the suburb is currently undergoing beautification, with new walkways and cycleways being added.
<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/2019/1/10/modbury.jpg" alt="">
A recent sale at Modbury was a three bedroom house for $375,000 (pictured above).
Set on a 312sqm allotment, the house at<a href="https://www.realestate.com.au/sold/property-house-sa-modbury-129680534" target="_blank"> 14 Trellios Street </a>comprises of master bedroom, two other bedrooms, open plan living and dining room, separate laundry and garden shed. 
It's located within walking distance to Clovercrest Village and only 13km to the Adelaide CBD.
<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/2019/1/10/modbury%202.jpg" alt="">
A current offering at Modbury is a two bedroom unit priced between $260,000 to $280,000 (pictured above).
The unit at <a href="https://www.realestate.com.au/property-unit-sa-modbury-130094362https://www.realestate.com.au/property-unit-sa-modbury-130094362" target="_blank">39/129 Smart Road </a>consists of a large lounge, kitchen and meals area, separate laundry and two bedrooms. 
It's just a few minutes walk from the Modbury hospital and Medical Centre, Tea Tree Plaza Shopping Centre and the O'Bahn bus exchange for a bus ride into the city.
Port Adelaide, SA
<img src="https://www.urban.com.au/images/2019/1/11/Lomas%205.JPG" alt="">
In addition to the space agency, Adelaide is also getting a new submarine base and shipyard which is expected to bring in another 4,000 jobs to the area.
Sitting adjacent to the base and 20 minutes from Adelaide’s CBD, Port Adelaide’s median house price is just $350,000, despite nearby suburbs averaging above $600,000,
“When you add to that, that it is on the peninsula and right by the coast, I think it’s a no-brainer,” she says.
<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/2019/1/10/port%20adelaide.jpg" alt="">
An example was a three bedroom 1880s old worker's cottage at Port Adelaide which was sold for $381,000 (pictured above).
Situated at<a href="https://www.realestate.com.au/sold/property-house-sa-port+adelaide-128981702" target="_blank"> 6 Aberdeen Street</a>, it comes with three bedrooms, two large living areas, study, eat-in kitchen and secure carport parking.
<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/2019/1/10/port%20adelaide%202.jpg" alt="">
A waterfront three bedroom house at Port Adelaide has been listed for sale with a price guide of $675,000 (pictured above).
Located at<a href="https://www.realestate.com.au/property-house-sa-port+adelaide-127359074" target="_blank"> 26 Knapman Crescent</a>, the harbourside home comes with three large bedrooms, lounge room with views of the harbour, modern kitchen, and large dining room.
It's within easy walking distance to ample shopping, schools and transport.
While markets will always fluctuate, there are a few basic rules  that always hold true when it comes to purchasing property, according to Lomas:
<ul>
<li>Affordable properties will always attract buyers</li>
<li>A bigger plot of land is always the better option</li>
<li>Look for family areas, as families will always fuel growth</li>
<li>Find ‘ripple effect’ suburbs – less expensive suburbs that neighbour high-value areas</li>
</ul>
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Top five suburbs for property investors in 2019: Margaret Lomas

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EXPERT OBSERVATION
Mid-sized companies and international shares have out-performed ‘Mums and Dads’ stocks over the past five years.
It is useful for investors to understand how different asset classes are performing as it may highlight opportunities.
Smaller returns from major Australian companies
Many Australians got their start in the share market through privatisations and demutualisations. That is, companies like Telstra, AMP, Colonial, Commonwealth Bank, Suncorp, Qantas and state betting agencies like TAB (NSW). Some retail investors have held on to these stocks over time and perhaps added modestly to their holdings with positions in other domestic companies. For others, the initial investment may have sparked broader interest with investors adding to their portfolios with domestic and international investments and perhaps positions in options and futures.
In 1999, CommSec devised an index called the Mums and Dads index to highlight the performance of retail investors who got their start in the share market through demutualisations, privatisations or ‘household names’ like Woolworths. The current composition of the CommSec Mums and Dads index is Telstra, Commonwealth Bank, Woolworths, Qantas, AMP, Tabcorp, Suncorp, IAG and Wesfarmers.
Until around five years ago, total returns on the CommSec Mums &amp; Dads index (share prices and dividends included) closely tracked total returns on the broader index – the All Ordinaries accumulation index. But over the past five years, the All Ords accumulation index has lifted around 82% while the CommSec Mums and Dads index has lifted by just 35%.
Mid-sized companies gain favour
One of the out-performing areas over the past five years has been the mid-tier companies. Since mid-2013 the MidCap50 accumulation index has doubled in value. As noted above, over the same period the All Ords accumulation index lifted by around 82% while returns on the CommSec Mums and Dads index rose by just 35%.
The MidCap50 includes a number of ‘new wave’ stocks as well as ‘disruptors’ – companies challenging those with far bigger market size or capitalisation – that is, the ‘big cap’ companies. Notable mid-tier companies include A2 Milk, Dominos, Flight Centre, JB Hi-Fi and Resmed.
On a shorter-term comparison, since the start of 2018 the All Ordinaries accumulation index has lifted by 6% (ASX 200 accumulation +5.9%) while the MidCap50 accumulation index has lifted by 6.6%. By comparison the CommSec Mums and Dads index has risen by just 1.6%.
However just as investors constantly need to track the performance of their domestic portfolios – especially the influence of new themes or paradigms – there is also the need to take a broader perspective. Considerations include the differing performance of domestic industries or sectors to those abroad.
Global shares have certainly performed strongly over recent years. The US Dow Jones and S&amp;P 500 indexes have hit record highs in the past month. And the Japanese Nikkei 225 index hit 27-year highs yesterday.
<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/2018/10/2/commsec%201.jpg" alt="">
Global shares
Five or 10 years ago it was more difficult for retail investors to invest in individual companies that were listed on overseas share markets. To gain overseas exposure, investors tended to favour managed funds.
Today, retail investors have much more flexibility to invest in individual companies on overseas exchanges, or via exchange traded funds (ETFs) and managed funds. Australia accounts for just 2% of world share market capitalisation, so there is a raft of opportunities outside our borders. One complication is the need to take into account currency fluctuations. Since the currency was floated, the Australian dollar has fluctuated on average by US14 cents a year against the greenback, although there has been less volatility in recent years
One way of measuring the performance of the ‘world share market’ is by reference to an index. And one of the best known indexes is that compiled by Morgan Stanley Capital International (MSCI).
The MSCI World Index, is described as: “A broad global equity index that represents large and mid-cap equity performance across 23 developed markets countries. It covers approximately 85% of the free float- adjusted market capitalisation in each country and MSCI World Index does not offer exposure to emerging markets.” 
The world MSCI can be tracked through finance websites on a daily basis as well as wire services and adjustments can be made for dividends and currency fluctuations.
Over the past five years the world MSCI in US dollar terms has risen by 41% with total returns (measured by the accumulation index) up by 56%. By comparison, in Australian dollar terms the MSCI Australian index rose by 17% and 42% respectively over the period.
But when you adjust the world MSCI for currency changes – convert the index to Australian dollar terms – the out- performance is enhanced even further. Over the past five years the world MSCI has lifted by 83% in Australian dollar terms with total returns up 101%.
<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/2018/10/2/commsec%202.jpg" alt="">
Shorter-run returns
As always the time comparison chosen may affect the results obtained. And with international shares, changes in the value of the US dollar can significantly impact the results.
Looking back since the index was constituted in May 2000, and assessing returns in Australian dollar terms, returns on the ASX 200 have risen four-fold whereas returns on the world MSCI have doubled. So on a long-term basis the Australian share market has out-performed global shares.
However, looking over the past decade, Australian dollar returns for both the ASX 200 and the world MSCI tracked closely, especially up to 2014. But in the past four years the world MSCI broke away, lifting by 68% while the ASX 200 has risen by only 39%.
Further, since the start of 2018, the world MSCI accumulation index in Australian dollar terms has lifted by around 14%, well ahead of returns of around 6% for the Australian market.
<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/2018/10/2/commsec%203.jpg" alt="">
<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/2018/10/2/commsec%204.jpg" alt="">
The US out-performs
The Dow Jones index is probably the best known of the US equity indexes. Other indexes include the S&amp;P 500, Nasdaq Composite and Russell 2000. And while the price index – the Dow Jones Industrial average (DJIA) – is commonly quoted, there is also a total return index for the Dow.
Up until the end of September the DJIA rose by 7% and total returns (includes dividends) lifted by 10% while returns on the index in Australian dollar terms have lifted by around 18%.
By comparison, in local currency terms the ASX 200 rose by 2.3%, the All Ords lifted 2.6% and total returns on Australian shares have increased by around 6%.
Certainly the US economy has performed strongly with annual economic growth sitting at 4.2%, unemployment near 18-year lows and inflation sitting at just 2%. However the old adage applies for the share market – past performance is no guarantee of future returns.
The US Dow Jones has made solid returns – especially over the past two years, averaging annual growth near 22% and well out-performing the Australian market.
While the US economy is performing strongly, the budget deficit remains high, the Federal Reserve is still in the process or ‘normalising’ interest rates and the US is engaged in trade disputes with a raft of economies such as China and the European Union.
In addition some would cite relatively expensive valuations for US shares with prices around 17.8 times forward earnings, well above the longer-term average of around 14.5 times earnings.
 <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/2018/10/2/commsec%205.jpg" alt="">
What are the implications for investors?
Global share markets have made solid gains in recent years reflecting economic recoveries after the global financial crisis. In this respect, the US has had one of the stand-out economies and share markets.
Australian investors can now embrace a broader range of opportunities than in the past, whether they are domestic companies and sectors or opportunities across global economies. While there may have been good reasons in the past for investors to stick with blue-chip ‘Mums and Dads’ investments, better performing investments locally and globally argue for a fresh look at portfolios.
Investments in international shares and small and mid-sized Australian companies provide scope for greater diversification in investor portfolios.
<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/2018/10/2/commsec%206.jpg" alt=""> 
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
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cjames-5S2v74qSNK

'Mum and dad' stocks are underperforming: CommSec's Craig James

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Commercial property prices have skyrocketed in recent years, sowing seeds that could lead to opportunistic buying opportunities – and distressed sales – in coming years.
Here are 10 factors at play that could lead to attractive buying opportunities for those who have cash at the ready.
1.    There’s a limit to how low yields can go. As property prices in some markets have risen faster than rents, the rate of return has reduced and reduced. No one knows just how low they can go, but there is a floor and we’re getting close to it.
2.    Australia’s big four banks have become increasingly cautious in their lending in this space. They have, perhaps, heeded <a id="m_-6975728259029557408LPlnk750883" class="m_-6975728259029557408OWAAutoLink" href="https://www.rba.gov.au/speeches/2017/sp-so-2017-11-20" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.rba.gov.au/speeches/2017/sp-so-2017-11-20.html&amp;source=gmail&amp;ust=1528424268072000&amp;usg=AFQjCNElBd8bcSWPwe0ZyXyFIOLx0GY3-Q">warnings</a> by RBA’s head of Financial Stability Jonathan Kearns, of the risks of a “sharp correction” and potential for a repeat of the 1990s bust that followed the 1980s boom.  
3.    Changes in market conditions and a potential reduction in debt availability and/or increase in costs is likely to require some developers who acquired assets for future conversion or demolition to sell.
4.    Foreign banks are still lending for Australian commercial property but could experience pull back if interest rates rise or there is a change in global capital markets.
5.    Unlike residential loans, commercial property loans need to be refinanced every few years. Currently, rising property prices have provided a cushion for heavily indebted owners to help meet their obligations to banks. If this levels off or falls, it could be problematic for those owners.
6.    Interest rates could rise. Historically low interest rates have also underpinned commercial property affordability and supported high prices, and a rise could render some owners into financial trouble, forcing sales.
7.    Rising bond rates. If interest rates rise, then bonds will start to offer higher returns – meaning investors, particularly those overseas who are likely to see rates rise first, could place cash elsewhere.
8.    Businesses may be doing better than they were in the midst of the GFC but they are still price-sensitive and unlikely to swallow much more in the way of increased rents, which have been rising in most locations, albeit not as fast as property values.
9.    High-end corporate office occupants are increasingly seeking better amenities – end-of-trip facilities, ground floor cafes and gyms, even <a id="m_-6975728259029557408LPlnk484422" class="m_-6975728259029557408OWAAutoLink" href="https://www.smh.com.au/business/companies/concierge-services-in-office-blocks-a-musthave-for-prospective-tenants-20160707-gq0xfz" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.smh.com.au/business/companies/concierge-services-in-office-blocks-a-musthave-for-prospective-tenants-20160707-gq0xfz.html&amp;source=gmail&amp;ust=1528424268072000&amp;usg=AFQjCNHJYyVJ3j6j7Jp6zUkcnxwszALaQQ">concierges</a> – as well as strong environmental credentials. Cash-strapped landlords who lose a major tenant may not be able to afford the upgrades required to attract new tenants.
10.  Federal Government tenants require properties to have a minimum 4.5 star NABERS rating, however achieving this in an existing property requires significant investment which, again, the cash-strapped landlord might not be able to fund easily.
Russell Bullen is the chief operating officer of diversified property company Quintessential Equity
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Commercial property buying opportunities and distressed sales

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<div>
Jonathan Hallinan hasn't quit Melbourne apartment development market after-all.
He has bought a small Southbank site, just months after securing a gullible Australian Financial Review headline that he was quitting because it was all too hard.
He now claims huge rental demand for apartments in his $300 million Shadow Play tower on Southbank had convinced him there was strong appetite for new development.
</div>
<div>The demand for rental accommodation was "the strongest I have seen in my 24 years," he said.</div>
<div> </div>
<div>Investors were achieving rents of $670 to $680 a week for a two-bedroom, two-bathroom apartment, a 15 per cent increase on the $600 average rent for the area.</div>
<div> </div>
<div>"There is no sense at all that the market is over-supplied."</div>
<div> </div>
<div>"The good rental returns on offer is making the apartment market appealing to local investors.</div>
<div> </div>
<div class="cq-article-content-media section">"I plan to return to residential development next year doing smaller 100 to 200 unit developments targeted at the local investor," Hallinan told the Financial Review. <div>
"Then in the next cycle – two years from now – I plan to relaunch the big 300 to 500 unit projects, that others won't do," he added.
</div>
<div>The newspaper said Hallinan had an "exuberance."</div>
<div> </div>
<div>He has secured 54 Clarke Street, a 597 square metre site wedged between two apartment towers – Habitat at 58 Clarke Street, and The Bank, at 283 City Road - for $8.9 million from local owners who had it listed for the past year through Lemon Baxter.</div>
<div> </div>
<div>It reportedly almost sold this time last year at $9 million, according to The Age columnist Marc Pallisco.</div>
<div> </div>
<div>"I am pulling out of the residential space," Jonathan Hallinan told the AFR in January.</div>
<div> </div>
<div>"Policy makers have repeatedly hit our industry with several regulatory changes, which are now compounding to result in what is likely to be a devastating effect on housing supply and affordability in the long term," he had previously blogged.</div>
<div>
<div>
"It would appear that our policy makers, who evidently believe that their actions are alleviating the pressures of an over-heated housing market, are, with great success, crippling the very industry that has the power to ease the housing affordability crisis." Hallinan listed the recent adverse changes:
</div>
<div>
1. Introduction of APRA regulations on banks and financial lenders which resulted in changes to investment lending, reducing the borrowing power of investors.
2. Removal of the stamp-duty concession from off-the-plan purchasers for investors
3. Introduction of plot ratios to the Melbourne planning scheme, hugely lessening the number of dwellings that could be built on a development site.
4. Implementation of apartment design guidelines, forcing developers to build fewer larger and more expensive apartments.
5. Limitations on foreign purchasers to not more than 50% ownership in a given apartment project
6. 7% foreign surcharge on all offshore purchasers
7. Enforcement of minimum $5,000 FIRB application fees
8. Increase of 5.5% stamp duty fees on foreign purchasers
9. Enforcement of absentee surcharges on purchasers with properties vacant for six months or more
10. Proposed introduction of a new tax on the four banks as part of the 2017 Budget.
Jonathan Hallinan founded BPM in 1995 securing early success with luxury townhouses in Melbourne’s bayside areas.
At its peak BPM had more than 2,600 apartments across 16 projects under development with a combined value in excess of $1.4 billion.
</div>
<div class="cq-article-content-paras section">
 
</div>
</div>
<div class="cq-article-content-media section"> </div>
 
</div>
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jchancellor-FAypfDUnLy

Shadow Play's Jonathan Hallinan now exuberant, rather than exiting the Melbourne apartment development scene

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GUEST OBSERVER
Investing in Sydney’s real estate market has been a tough call in recent years, with ever-increasing prices putting the squeeze on returns and meaning that investors need to do their due diligence more than ever before. 
According to CoreLogic, the median apartment price in Sydney has increased by a massive 106.2% since 2008 and is now at $750,000. 
With prices at this level, investors need to be savvy and on the look-out for ways to increase capital gains by identifying upcoming ‘hot spots’. There is huge potential in some pockets of metropolitan Sydney, set to benefit from significant future development and infrastructure projects. 
Sydney’s burgeoning North West in particular should be high on an investor’s radar. 
Nestled within the Hills Shire, Castle Hill is a suburb where future growth has been forecast. Key early indicators of growth lie within the current and future plans for commercial and residential developments within the region. 
In accordance with The Implementation Plan proposed by the New South Wales Government, some 33,000 new homes are to be developed in North West Sydney. Estimates by the Hills Shire Council predict the population in Castle Hill will grow by 49.53% by 2036. 
It is undeniable that Castle Hill is an area set for long-term growth and ticks all the boxes for investors. 
To cater for the growth in population infrastructure developments are also currently underway including the $900 million upgrade of Castle Towers and the $8.3 billion North West Rail link. 
Upon completion the Castle Towers redevelopment is set to generate 2,373 jobs and create an enhanced community hub. The North West Rail link is expected for completion in 2019 and will also increase the efficiency of transport connecting residents from Castle Hill Station to Martin Place Station in around 30 minutes. 
To combat rising property prices in Sydney investors are strongly encouraged to continue to seek out growth areas and identify “hot spots” to realise the future potential, rather than to try to buy into markets that have already hit their peak. 
Residential real estate remains the investment of choice with solid medium and long-term returns and those who are waiting in anticipation for market conditions to change may miss out on solid investment opportunities.
Ian Bennett is Director, Colliers International  
 
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