Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

Joel Robinson

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.

Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.

The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.

The challenge for investors is that suitable product is becoming harder to find.

For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.

Today, the development pipeline looks very different.

Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.

That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.

At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.

We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

Popular Palm Beach developer <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa</a> is soon to officially launch its newest local apartment development, <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>.

The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.

[smartcode_project:default project_id=150017 project_image_fid=370964]

Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.

True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.

<h2>Corallo, Palm Beach</h2>

Priced from: $841,500

Nearby Flourish Soleira is Changfa Group's beachfront-inspired <a href="https://www.apartments.com.au/new-apartments/corallo-palm-beach-5-palm-beach-avenue-palm-beach-qld-4221">Corallo</a> development. They still have some one-bedroom apartments remaining, priced from $841,500.

The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.

[smartcode_project:default project_id=112194 project_image_fid=808]

For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.

<h2>Corner House, Stones Corner</h2>

<h2>Priced from: $880,000</h2>

One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's <a href="https://www.apartments.com.au/new-apartments/corner-house-stones-corner-18-stoneham-street-stones-corner-qld-4120">Corner House development</a> in Stones Corner.

One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.

[smartcode_project:default project_id=149098 project_image_fid=330594]

Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.

The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.

Parkdrive Apartments, Chermside

Priced from: $749,000

The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its <a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">recently launched Parkdrive development</a>.

The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.

For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.

Investors to turn to new apartments after federal government changes spark hunt for Queensland's best $1 million apartments

Real Estate Agencies

<html><body>After a year of COVID-19 impacts, getting back to business as usual will present challenges for some real estate agencies. According to a Melbourne Institute study, 70 per cent of workers who worked remotely during the pandemic wish to continue working from home.

The challenge for businesses is creating those beneficial moments that occur during face-to-face contact. In a hybrid work model where team members might not align on working days, those connections that are so important to collaboration and innovation will be fewer and farther between. 

Leading firms believe that holding in-person business events is key to improving the hybrid working model with moments of powerful team building.

The human brain is hardwired for physical connection and eye contact, something that cannot be replicated by using screens.

In less than a second of meeting someone, physical engagement fires up your neurons, generating the chemistry that pre-empts the beginnings of empathy and trust. A group of connected people can change how we see an issue, alter our priorities as a group, and create a capacity to collaborate around shared values.

At First National Real Estate, we’re working hard to make sure that the crucial bonds that lead to knowledge sharing are re-established as quickly as possible. I’ve always strongly believed in holding business events that bring people together and our national convention, this May in Canberra, is on track for 500 First National co-operative members and their employees. The event is already oversubscribed and we’ve had to book an overflow hotel.

After spending so long away from peers during COVID, the desire to get together to share our journeys and our experiences is critical. But the way I see it, this is not just a business session or awards event, it’s about helping our people return to normality, become a better person and run a better business.

Pre-COVID, First National would run 30-50 events a year in each state, ranging from training to functions, as well as two to three national events. Having in-person meetups in different locations is critical to the success of the business.

The greatest benefit has been the sharing of ideas. We’ve got offices from Bendigo to Cairns and that shared business experience, whether staffing, sales, legalities, or HR, is 100 times better than Googling or trying to muddle through on your own. 

The building of relationships cannot be done over Zoom or via email, only done by good old-fashioned chat and advice, so events are critical to what we do.
Events can fast-track the restoration of relationships that have diminished during the pandemic. 

According to researchers at Yale University’s School of Management, during COVID-19 our professional and personal networks have shrunk by almost 16 per cent, or the equivalent of 200 people.
That has dramatic consequences for businesses. It can lead to less creativity and more groupthink. 

People with fewer connections at work have a decreased sense of belonging and are less likely to identify with the organisation, which puts them at higher risk of turnover and possibly even fraud and negligence.

Ray Eliis is the CEO of First National Real Estate</body></html>

The building of relationships cannot be done over Zoom or via email, says Ray Ellis

rellis

Rebuilding real estate connections after COVID-19: First National's Ray Ellis

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Real estate offices and real estate agents will diminish by 20 percent-30 percent in the next year.
With property (for-sale) listings, so low and a phenomenon never experienced before in parts of Sydney; how can real estate agencies survive? 
For a large number of Real Estate Offices (REOs), sale of property commissions, makes up to 60 percent-80 percent of their revenue. Some rely purely on sales commission, to keep their doors open for business.
After recently, reading numerous articles and LinkedIn discussions about low property numbers that are on the market for sale I began to reflect on discussions I held as far back as 12-15 months ago with industry colleagues.
At the time I made the following prediction, and that it would eventuate by end of financial year 2016. 
<ul>
<li>We will see at least 20 percent of REOs close down.</li>
<li>These will be made up of REOs that rely on pure sales to keep their doors open.</li>
</ul>
One brand I have been particularly observant of is McGrath Real Estate. This brand even listed on the ASX and mostly due to its success accredited to: reported high sales figures. How will they cope in a changing landscape where sales become scarce?
The crux of the discussions with colleagues, were in relation to the shrinking property market, due to various market forces:
1)     Property-Marketing companies on the one hand ramping up sales of property; and
2)     The financial institutions on the other, also selling real estate.
Both sectors moving into the real estate sales due to high commissions, paid out directly by developers. I can say, even in the good times, the average real estate selling agent missed out on listings. Most listing of new developed property went, has gone to and is still going to property-marketers. The local Real Estate Agents miss out.
Property that is new to the market, where commissions can be inflated, became attractive for “direct sales campaigns” to unsuspected investors. In essence, the typical local real estate office has lost 30-40% of sales due to “marketeers and the financial sector invasion.”
Now, add to the invasion of our industry, the current low numbers in secondary stock sales as evidenced in article/photo below. Also as reported across the media and journals.
I refer to historical low number of sales listings in Sydney. 
These are established properties that have almost disappeared overnight. Parramatta alone has had an attrition of up to 47 percent less property on market. These figures were calculated across June-to-August. The number of agents has not changed however.
Parramatta, has 176 registered real estate offices according to the Yellow Pages. According to Domain, there are 172. Either way, it is a concern that should not be taken lightly. Specially when we can safely say that there are 2.5 selling real estate agents in each office.
A concerning trend also witnessed across the face of Sydney metropolitan area.
Some agents are commenting on a 30 percent drop in numbers across the Lower North Shore and other areas. These numbers are generated by comments on LinkedIn, made by agents that have worked in these areas for 10-20 years.  
Only last week, I sat with a colleague from Blackktown and she informed me and was troubled by the fact that her office only had two properties for sale. She doesn’t have a small operation, and runs a well-established brand.
In the same area, other brand-name agencies have reduced their local paper advertising from 3 pages down to half a page. They just don’t have any property listings for-sale in their books. What they do have is 5 selling agents in their office.
Notably, the above becomes the recipe or the ideal conditions for an attrition of selling agents and very tangibly, offices that only rely on sales to survive.
It will be a hard fall for many, and for others that place a lot of trust in property-sales-offices. Another call, another prediction; all in a day as I share my thoughts over a coffee with friends.  
Warning to the industry
Keep an eye on other Industry-Disruptors such as Purplebricks RE. Don’t underestimate what they are doing and focus on how you can best serve the diminishing clientele base you have. That is, if you want to survive the for-sale listing famine.
If you want to stand out from the many agencies in your patch; do something different. Offer a level of service that others will find hard to match. Again, only if you want to stay in the industry past EFY 2016 and not be a casualty of the changing face of real estate.
EDWIN ALMEIDA 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/"> </a>
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>.
 
</body></html>

ealmedia-arK4DBYLjS

Real Estate offices closing down in Sydney

<html><body>
Australia’s rapid property market downturn is beginning to have a severe impact on residential real estate agencies around Australia.
And it could force some out of business, says insolvency and turnaround specialist Jirsch Sutherland. 
“We are already noticing the first signs of financial distress,” says Jirsch Sutherland partner Sule Arnautovic.
“We understand that some agencies are struggling to meet their fixed overheads, with the likelihood of staff redundancies, consolidation, mergers or insolvency now firmly on the horizon. 
“With property values having dropped by as much as 15 per cent over the past 12 months, some agencies located in former powerhouse markets are considering mergers or insolvency as their incoming revenue declines rapidly. 
“We’ve heard from industry insiders saying that the drop in house prices is being exacerbated by longer marketing periods, lower-commission competitors, difficult credit access for buyers, and the fact that many younger sales agents, who found success easy during boom times, are now finding they lack the skills to cope in a far more challenging marketplace.”
Arnautovic says the future of numerous agencies around the country is likely to come into question, with declining revenues set to bite hard. 
“The housing market continues to tighten in many parts of the country and it’s already increasingly clear that many agencies will feel the pinch in terms of reduced and deferred revenue,” he says.
“With house prices tipped to drop much further in certain key markets over the coming months, we believe we may only be looking at the tip of the iceberg in terms of the challenges faced by real estate agencies.”
Rent rolls may not be the saviour 
Adding to potential difficulty is the fact that many agencies have not invested adequately in their property management divisions, preferring instead to focus most of their resources on sales.
As a result, few property management teams have been allowed to adopt new technologies that would make rental processes more efficient and easier for both landlords and tenants, thus allowing companies to better capitalise on the revenue potential of their rent rolls. 
“In previous downturns, and indeed the recession in the late 80s/early 90s, rent rolls helped keep many agencies afloat,” Arnautovic says.
“But today, as rents fall in some parts of the country, some agents will find they no longer have the income to service the loans they arranged to originally buy the rent roll. It could be a perfect storm: decreasing property management fees and lower volume of sales, which would make it difficult for some agencies to cope with their own property and asset leases, not to mention wages and entitlements. 
“With these new realities in mind, it’s vital for stressed agencies to consider action early if they find themselves in financial difficulty. The key thing to remember is that early action is vital. By deciding to adopt an appropriate strategy as soon as possible, highly adverse outcomes can most likely be avoided.”
Seeking Safe Harbour
The 2017 changes to Safe Harbour laws are one example of how worst-case scenarios can be avoided.  
“Safe Harbour laws give Directors breathing space, providing them time to consider the position of the company early in the piece, without the potential threat of insolvent trading,” says Arnautovic.
“In turn, this may improve the position for creditors, enabling them to explore the possibility of restructure or sale, which may subsequently lead to more of the company’s value being preserved.”
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j.ballantyne1990-6AQqhLzZaK

Housing downturn could send real estate agents to the brink: Jirsch Sutherland

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EXPERT OBSERVER
The franchise model is being disrupted by technology that’s making it easier than ever for individual agents to run their own show more flexibly and efficiently. But could bots – backed by AI, automation and big data – come to the rescue and help the big real estate brands deliver new value to agents? 
To explore this idea, let’s look at a typical day in the life of an agent in 2020 who works at a franchise (we’ll call it Robot Real Estate) that uses bots to delivers a wide range of automation. The strategy behind the AI support is for the franchise to empower their agents to deliver highly personalised service that puts human relationships at the heart of the data, which in turn creates unprecedented loyalty both from their agents, and the buyers and sellers they service.
Meet Tanya. She’s been an agent at Robot Real Estate for the past 10 years. About three years ago, she was considering leaving Robot Real Estate – she felt the fees were too high and locked her into technology that was out of date and clunky to use. It was a lot of money to pay for a desk and a lead database that was usually out of date. 
But then Robot Real Estate introduced an end to end bot-driven infrastructure for agents. And while it took a little getting used to, Tanya now loves it. Because it takes care of all the back-end tasks that used to keep her busy, and allows her to spend her day focused on what she’s passionate about – helping people on their journeys of buying and selling property.
Here's what Tanya’s day looks like:
Wakeup: When Tanya exercises each morning (she’s a 5am Club gal!) her Robot Real Estate assistant (an automated assistant that she fondly calls REVA) reads out her schedule for the day and outlines a list of tasks that she has preset for her bot team. At her request, REVA also reads out profile information of the people she’s going to meet that day so she’s fully informed and pumped for the day. Breakfast:  Tanya has her first client meeting with Jane a buyer. By the end of the breakfast, REVA has sent the buyer a list of suitable properties and inspection times based on their conversation and some background video information on the areas that Jane said she was interested in. 
The bot has tagged the client as originating from the relationship with Tanya and assigned Jane to Tanya in their database. This means that even if another agent finds Jane a home, Tanya will receive a payment to recognise the fact that she introduced her to the agency. 
The bot has also set a calendar entry for Tanya to make a follow up call a few days later. By that time, the automation at the back end will have identified if Jane has clicked on any of the properties in the information that was sent, and recognised how long she has spent on each property and if she shared any of the properties with friends or family, or returned to one or two of them. 
This information will both inform the conversation that Tanya will have with Jane when she follows up and allows the bots to refine future property selections that are sent to her. 
Tanya also encourages Jane to become “identity-authorised”. This will allow Jane to visit any property at the time of her choosing – not just wait for opens. It can also be – if Jane gives permission – linked to her credit approval rating which will give Jane the advantage of pre-approval for loans and a much quicker turn around on her finances when she decides to make an offer on a home. 
Again, regardless of who sells Jane a home, Tanya’s introduction of Jane to the identity authorisation and credit approval process means Tanya will receive a trailing commission payment when Jane transacts.
Early Mornings: In these days of automated contact, Tanya is a big proponent of the personal touch. She uses the first hour or so of every morning to make phone calls to prospects and clients and people she’s sold to recently to see how they’re settling in. She finds people are usually happy to talk first thing or on their commute. 
After each call she dictates outcomes to her REVA who annotates the client data and schedules or carries out follow up actions such as sending property reports, investment analysis, and lookbooks or contracts. She loves the Robot Real Estate Concierge Service that allows her to order thoughtful gifts for her buyers and sellers and send them to their home or office via drone in just an hour or so.
Mid Mornings: On mornings when there is no Robot Real Estate sales meeting, Tanya likes to spend her time creating videos about her local community, helpful information for buyers or sellers, or a roundup on properties that she loves.  Of course, the Robot Real Estate bots can now automatically create both report-styled or video content about her local market, but Tanya is a bit old school. She likes the personal touch, will sometimes interview people in her community and has fun being on camera. 
When the videos are shot, she alerts her REVA to the new content, and the bot automatically schedules it to social media and targets it to an appropriate audience based on the latest insights from her social media pages. REVA will also tag anyone she interviewed. 
REVA also inserts content into her email newsletters to keep her click through rates high. In addition, Tanya uses this time to direct the Virtual Reality video of properties she’s selling because she cares about the details. 
It’s also the time in her day when she reviews the sales collateral the bots have created for her sales listings – those bots are truly amazing in how they assemble the ads, online listings and reports, but Tanya has an experienced eye and she likes to think that it’s her attention to the personal details that makes the difference. It’s also a great way for her to familiarise herself with her listings and it boosts the quality of her data within the Robot Real Estate system which in turn improves her micropayment commissions.
Lunchtime: Tanya has an Open Home. Of course, they’re not as necessary now with so many people being accredited to inspect the property at a time that suits them securely, and with the availability of VR. 
But Tanya likes the ceremony of an Open being held at least a few times during the sales period – it signals to the neighbourhood that a property is on the market which can often lead to surprise offers. You never know where a passive buyer might be. And it’s a great way to meet the neighbours, who in turn can become valuable sales leads to Tanya. 
Everyone who does enter the property is automatically identified through their mobile phone and added to the Robot Real Estate database – that’s because Tanya is so good at making people feel at ease and learning about them. Even if they’re unlikely to buy or sell for many years, Tanya’s initial discovery is at the root of their relationship with Robot Real Estate and allows their experience with Robot Real Estate and Tanya to be truly personalised.
Afternoon: Tanya has a meeting with a potential vendor, Rebecca. Rebecca has a lovely home but wants to upgrade and there’s a few small repairs that if done, would help the home get a better price. 
During her visit, Tanya shoots both video and photos of each room, paying particular attention to areas that she thinks might need some work to bring up to sales presentation stage. Her REVA captures these and attaches them to the address record, and with Rebecca’s permission, sends them to Robot Real Estate’s Presentation Concierge system, which requests quotes from the appropriate trades and services. 
By the end of the visit, Tanya is able to provide Rebecca with a detailed quote on the work that would need to be done to the property, the time it would take, and a schedule for the sale, including an accurate estimate of the price Rebecca can expect with Tanya’s clever marketing approach. 
Rebecca’s other alternative is that Robot Real Estate buy the property outright and provide her with the funds in just 48 hours. Such an approach means a sale price that is below what was quoted, but some clients like the speed and certainty of the approach, especially if they have personal circumstances that mean they have to move by a deadline.
End work: Tanya ends her day with another round of phone calls to clients, finalising negotiations and giving contracts the once-over just to ensure she’s across the details. A couple of days a week, she has evening appointments scheduled with vendors. Tanya’s REVA gives her an update on all the reports and contacts that have been sent and actioned across the day and allows her to set any new tasks. 
Sometimes she does this by reading the report, sometimes if she’s busy or in the car, she’ll ask REVA to read it out and she’ll instruct the bot verbally. 
She loves the AI assisted support that she’s offered by Robot Real Estate – it’s really changed her life by removing so much of the busy, repetitive work that used to stress her out. It allows her to focus on the human connections that are the most important part of her job at a price point and uptake level that she would never have been able to afford, or get her brain around on her own. 
Robot Real Estate supports its sales teams and its AI strategy with regular training offsites and sales rallies. These provide Tanya and the Robot Real Estate team with the opportunity to learn new skills, re-energise their sales focus, and hear about new trends and the systems the franchise is trialling. 
There are also always personalised intensive training times in the schedule, when Tanya is taught to become proficient in the new skills needed. Her training is tracked and is tied to her commission levels. 
While the additional money that comes from doing the training is nice, Tanya feels that the value really comes from segmenting the time this way as it is extremely effective. It’s made her feel more secure about trying new things and gives her time to practice and become familiar with new systems. This makes her more confident about using the coaching tools in the system which step her through whenever she is out on the road and needs a quick refresher. 
Since introducing the AI, Robot Real Estate’s profits have soared, buoyed by reduced running costs, increased agent retention and significantly improved customer loyalty and brand value awareness that has really driven their sales and revenue. 
It’s also opened up new revenue streams to the franchise, which has now significantly increased its referrals revenue from mortgage brokers, financial institutions, insurance and credit score companies. 
The new approach by Robot Real Estate has removed the stressful “busy-ness” from the life of Tanya and their other agents. This lets them get more done in less time, while at the same time providing a significantly higher level of personalised service to buyers and sellers that has won awards.
Agents have reported feeling significantly less stress and love that the REVA support and back end systems allow them to genuinely switch off and focus on family time when they are home, while feeling secure that the details are being taken care of.
Could this be the future? What do you think?
Kylie Davis is the head of marketing for property services at CoreLogic.
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