Investor appetite for Queenstown apartments is strengthening as supply constraints and four-season tourism continue to underpin demand across the alpine region.

In Frankton’s masterplanned Remarkables Park precinct,&nbsp;<a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>’s 141-apartment Mountain Oak development is attracting repeat and yield-focused buyers seeking exposure to that market dynamic.

Brandon, who specifically targeted Queenstown as an investment location, said the combination of price point and limited new supply made Mountain Oak stand out.

“It is a quality product in a location that struggles to densify,” he said, referencing Queenstown’s land-locked geography and development limitations.

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/658d4f_48c3ec1ae5df4a2cab7d23c07c7f51b3~mv2.jpg?VersionId=27K8oQ4ExDN8Yu70VHDa9Olq59XU36m3" />

Having spent significant time in the region, Brandon pointed to its global reputation and consistent visitation as key fundamentals.

“Queenstown is a known destination from people all over the world. The place is land locked and there are issues building there. It’s also busy all year round.”

That four-season economy, driven by skiing and snowboarding in winter and hiking, cycling and water-based tourism in summer, was also central to Sherry’s decision to invest.

“I believe the four-season tourism has major appeal as it would ensure that the property will not remain empty, unlike other areas in NZ,” she said.

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Living_WEB.jpg?VersionId=3LglY20Jp_MAzQYdvwODRWvtjL.cZcqI" />

Mountain Oak has been structured to respond to that sustained demand, with 365-day visitor accommodation consent underpinning a mix of one-bedroom, flexi, two-bedroom and dual-key configurations that can operate as either short-term visitor accommodation or long-term rental housing. Dual-key apartments comprise two self-contained residences on one title, allowing owners to generate dual income streams or occupy one side while leasing the other.&nbsp;

Under Safari Group’s optional visitor accommodation management model, owners receive 60 per cent of the annual income generated by their apartment, with 24/7 on-site management, guest services and listing exposure included. Independent appraisal modelling suggests gross yields of up to 15 per cent for certain two-bedroom configurations, based on estimated nightly rates and occupancy assumptions.

For Brandon, that flexibility aligned with his broader investment strategy.

“It helps to know that I can have it managed either way,” he said. “My focus is on purchasing high yield cashflow properties.”

<img alt="Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand" data-entity-type="file" data-entity-uuid="c786ba7f-f974-4ce3-9833-1bcd9f2938d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_ae3c049f388f4c13bf801649d91cbb4a~mv2%20%281%29.jpg?VersionId=J25uvzGdvtFaXGzuwz28ewJ9wWzbtvur" />

He selected a one-bedroom flexi configuration, citing both yield and adaptability.

“I work remotely and can travel to most places and work. I enjoy making spaces that work for the lifestyle that I live and it seems that others also enjoy it.”

Ranging from 54 to 57 square metres, the one-bedroom flexi incorporates a separate multipurpose room suited to a home office, additional storage, or accommodation for ski gear and seasonal equipment, an increasingly relevant inclusion for buyers balancing remote work and alpine travel.

Interiors feature underfloor heating in bathrooms and a heat pump in the main living area, supporting year-round comfort. Upper-level apartments are positioned to maximise natural light, with sliding windows and balustrades in select residences enhancing outlook and ventilation. Units are available in both light and dark interior schemes.

<img alt="Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand" data-entity-type="file" data-entity-uuid="8f9492e9-8ee0-4aae-856c-8996ed9d9a06" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_7d066f5200024c1aa472d01e2dc776ed~mv2.jpg?VersionId=MLR5xn6fLqPdBi7vxyRT.1zhQX3Ln0Ev" />

Sherry, a repeat Safari Group buyer, said her previous experience with the developer provided confidence to secure another apartment.

“Their developments have always finished on time, the quality has been high, and I didn't feel that my investment may be at risk,” she said. “Knowledge of the developer and our two existing Safari apartments gave us the confidence to proceed with this one.”

Safari Group has delivered more than 2,000 hotel units and residential apartments nationally and is now undertaking its fifth Queenstown development, reinforcing buyer confidence in delivery capability.

Although Sherry was not initially targeting Queenstown due to its price profile, prior visits reshaped her view of the market.

“I absolutely love this region and believe it is a major tourist attraction, which led me to the decision to invest.”

<img alt="How Mountain Oak Apartments draws holiday home buyers to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Construction commenced in June 2025, with completion anticipated by mid-2027. Apartments are priced from NZ$639,000, and the development carries Overseas Investment Office exemption approval, allowing non-residents to purchase.

For both investors, the purchase represents a balance of income generation and long-term portfolio positioning in a tightly held alpine market.

“I firmly believe my investments in Safari developments are a combination of all these elements,” Sherry said. “The location of this project enabled me to diversify.”

As Queenstown continues to attract year-round visitation alongside constrained housing supply, Mountain Oak’s dual-key flexibility, optional on-site management structure and established developer track record are resonating with investors seeking exposure to the region’s resilient tourism economy.

Joel Robinson

Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand

The Minns Labor Government is today unveiling a game-changing new precinct at Bays West – delivering up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes - directly above the new Bays West Metro Station currently under construction.

The landmark transformation will convert underutilised government-owned port land on the Harbour into Sydney’s newest suburb, while retaining important deep-water port facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

<img alt="Bays West" data-entity-type="file" data-entity-uuid="c5f01d10-0b6b-49de-8033-d3ef2728cb6d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.06.12%E2%80%AFPM.png?VersionId=UA6_r._1jYROJ5tFNXMHqjNYLKYWIN.Y" />

Affordable housing will be embedded from the outset, including dedicated homes for essential workers such as nurses, teachers, paramedics, firefighters and police so they can live closer to the communities they serve.

The precinct will combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years.

Night-time entertainment and creative industries will be anchored by the revitalisation of the historic White Bay Power Station as a cultural and community destination, connected to the harbour across a new expansive public forecourt.

Planning of the area will prioritise connectivity, including active transport links to neighbouring communities such as Rozelle, Balmain and Glebe, improved pedestrian access to the waterfront, and connections to the CBD, including an active transport link across the Glebe Island Bridge.

The Government will lead a master planning process that will include an international design competition to guide development across the precinct, ensuring homes, essential infrastructure, jobs, public spaces and transport links are delivered together.

It will be led by a new delivery agency to be established over the coming weeks, which will report to Minister Kamper who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo. Once established, the publicly owned land in the precinct will be transferred to the new agency.

This is the first new suburb that has been built in inner Sydney in decades, it will see homes built alongside the Bays West Metro Station ensuring young people, families and downsizers are only minutes away from the CBD. As part of the transformation of the Bays West precinct, bulk port operations – including cement, gypsum and sugar handling – will cease on Glebe Island by no later than 2030.

<img alt="Glebe" data-entity-type="file" data-entity-uuid="46ef3c23-2ce1-4912-b8ba-5247de19d7b9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.02.15%E2%80%AFPM.png?VersionId=I5xKa7hLNlsueMsltA2dsYrRYtZCKvZz" />

The Government will work closely with industry to minimise impacts and ensure the continuity of supply. This includes a commitment of $270 million to improve road connections around the port at Port Kembla and to investigate increased rail freight capacity.

Working harbour operations across the precinct will be consolidated, mostly into White Bay, ensuring the precinct will continue to provide critical services for the harbour, including boat maintenance and marine construction and as a base for tug boats and for emergency services.

A new staging area will be established in White Bay, securing the future of the New Year’s Eve fireworks, Vivid and other major events for decades to come.

<img alt="Glebe island" data-entity-type="file" data-entity-uuid="0554b153-b225-445b-a633-75aecea7dec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.06.17%E2%80%AFPM.png?VersionId=P45ABy8KLuwjzVf04APWfeC4aOMA1Ngx" />

The cruise terminal will be retained in its current location, meaning tourists arriving in Sydney will be welcomed by the new precinct, with new shore-power facilities currently being installed that will reduce noise and emissions. The Sydney Heritage Fleet will also be offered new premises in White Bay.

Deep-water berths will be retained to preserve Sydney Harbour’s strategic operational capability, and the removal of the existing 1970s industrial silos, currently used as a billboard, as well as to store cement and sugar, will unlock new opportunities for public space and future housing.

“Right above a new metro station and minutes from the CBD, we’re delivering thousands of homes where people actually need them - close to work, close to services and close to transport,"&nbsp;Premier of New South Wales Chris Minns said.

“Importantly, this precinct will include affordable and essential worker housing from day one, so nurses, teachers, paramedics and police can live closer to the communities they serve.

“We understand that not everyone will welcome change, but cities don’t stand still. If Sydney is going to remain a place young people and families can afford to live in, we have to use well-located land better and plan for the future.”

Glebe Island to accomodate 8,500 new homes near new Bays Metro Station

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a> has unveiled its exclusive penthouse collection at&nbsp;<a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Amargo</a>, its new apartment development in Palm Beach.

There are just four penthouses as part of the collection, however only three remain for sale, with a Palm Beach local already snapping up one of the apartments prior to its launch.

&nbsp;

“We are thrilled to unveil the debut penthouses within the Flourish story,” said Christie Leet, founder of Sherpa Group.

“The penthouses epitomise unparalleled luxury and contemporary elegance, offering an exclusive experience in modern living.”

[smartcode_project:default project_id=146527 project_image_fid=362273]

Located at 6-12 Sixth Avenue, the penthouses will crown Amargo, which will rise 18 levels and offer a diverse product mix of one, two, and three-bedroom apartments, attracting a wide demographic of buyers.&nbsp;

“Creating a multigenerational community is core for us at Sherpa," Leet added.

"Amargo embodies this ethos, welcoming first-home buyers, families and right-sizers alike – ensuring everyone has the opportunity to thrive.”

&nbsp;

[smartcode_project:default project_id=146527 project_image_fid=362271]

The penthouses, which range in price from just over $3 million to $4.6 million, each have three bedrooms, three bathrooms, and extensive balconies. Select penthouses will have&nbsp;dedicated media rooms. They have four-metre-high ceilings, Gaggenau appliances, and natural stone materials.

Flourish is crowned by an&nbsp;800 sqm rooftop retreat with a&nbsp;pool, pool deck cabanas and day beds, private outdoor barbecues and pizza oven, an internal private dining space, as well as a gym, yoga zones, steam rooms, and hot and cold magnesium pools.

&nbsp;

&nbsp;

[smartcode_project:default project_id=146527 project_image_fid=306037]

“We’re really excited about what we’re delivering here- Flourish is more than just apartments; it’s about creating a place where people feel truly at home,” Leet said.

Construction is already well underway on Amargo, with residents expected to move in by Q2 2027. The project is around 85 per cent sold.

[smartcode_project_cta:default project_id=146527]

A first look inside Flourish penthouse collection at Palm Beach

Builder-developer Urban Property Group (UPG) is continuing to expand into new markets. UPG is heading to the Hills District, where it is planning a 40-storey mixed use building near Castle Hill Metro Station.

They've gone down the favoured developer route of a State Significant Development Application, which should see developments approved within the space of nine months.

The tower will comprise 371 apartments, 42 of which will be affordable housing, above a ground-floor retail precinct at 16-20 Old Castle Hill Road, on the corner of Garthowen Crescent and within walking distance of Castle Hill Metro Station, an area identified for higher density under both local and state strategic planning frameworks.

Designed by <a href="https://www.apartments.com.au/architects/studiosc">Studio SC</a>, the tower would rise from a brick podium base, accommodating one retail tenancy and communal open space, before transitioning to a slender glazed residential form above. Six basement levels are proposed beneath the building to house parking and services.

<img alt="First Look: Urban Property unveils 40-storey mixed-use tower in Castle Hill with 371 homes and affordable housing component" data-entity-type="file" data-entity-uuid="08dc82f9-b826-4e18-8c60-4c90f7472317" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%20G%20%28b%29%20-%20Ground%20level%20render.jpg?VersionId=EOv1ly45k_Bc1F73C0hdwXSG4FVSTETt" />

“Castle Hill is undergoing a significant transformation, evolving from a traditionally low-rise suburban centre into a true metropolitan destination anchored by the Sydney Metro Northwest," the Architectural Design Report prepared by Studio SC noted.

The majority of apartments (194) will be two-bedrooms. 90 one-bedroom apartments are planned, 83 three-beds, and four four-bedroom apartments.

Studio SC’s design adopts a podium-and-tower composition, with warm-toned masonry at the lower levels intended to anchor the building within its streetscape context.

"At the podium, the architecture is anchored through solid brickwork in warm, earthy tones, reflecting the local sandstone formations and the natural colour palette of the surrounding hills," Studio SC added.

Above, the tower transitions to a lighter glass expression, articulated with fins and tonal variation to reduce visual bulk and respond to changing light conditions.

<img alt="First Look: Urban Property unveils 40-storey mixed-use tower in Castle Hill with 371 homes and affordable housing component" data-entity-type="file" data-entity-uuid="f13cb2ee-ebfc-4204-9aba-e2dbd9e5d4bd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%20G%20%28a%29%20-%20Pool%20view.jpg?VersionId=Dnpusa.b5d6Nkx2clPlzWosDdh_1QW2V" />

Urban Property Group is one of Sydney's most active developers. They have projects currently under construction in Little Bay, Penrith, and Macquarie Park, with future projects earmarked for Wollongong.

Castle Hill has been one of the most popular suburbs for development across Sydney in the last five years, as developers scramble for land around the newly extended Sydney Metro.&nbsp;

Kassis Homes kicked it all off with Grand Reve, along with Deicorp who has delivered over 1,000 apartments in the area and continues to develop. The likes of Dubai-backed developer Arada will take to market their project in the coming months, while Masscon has just launched Avenue on Cadman Crescent.

First Look: Urban Property Group unveils 40-storey mixed-use tower in Castle Hill

One of the Gold Coast’s ‘bridesmaid suburbs’ is experiencing a wave of local suitors, with the latest sales figures from <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> revealing over two thirds of buyers will be relocating from within a 5km average radius of the 16-hectare masterplan.&nbsp;

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the figures underlined a powerful shift for Biggera Waters that would reshape it into a thriving force behind the region’s growth corridor.&nbsp;

“We’ve seen a huge wave of interest from residents of Arundel, Paradise Point and Runaway Bay who recognise the urban transformation that is well underway here and want to be part of it,” Long said.&nbsp;

“Interestingly, 25 per cent of our Gold Coast buyers are also coming from the city’s southern hotspots, including Burleigh and Palm Beach.&nbsp;

“<a href="https://www.apartments.com.au/developments/biggera-waters-qld-4216">Biggera Waters</a>, and Harbour Shores in particular, has all the advantages of waterfront living with the benefits of resort-style amenity, for greater value than the southern beachfront suburbs.”&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=290031]

Long said half of the purchasers at Harbour Shores were under the age of 55.&nbsp;

“When locals choose to stay local, it creates a genuine community, turning the most sustainable master planned community in the Gold Coast’s history into a diverse and vibrant ‘village of villages’.”&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=336743]

<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> Gold Coast Sales Director David Higgins said the hyper-local market demand was unique to Harbour Shores when compared to other projects in the region.&nbsp;

“We are seeing as much as 60 per cent of new apartment sales on other projects go to interstate or international buyers, but Harbour Shores is bucking this trend and attracting a larger proportion of the local market,” Higgins said.&nbsp;

“Only 13 per cent of Harbour Shores’ existing purchasers are interstate. There has been a resounding endorsement from local buyers and that validates the project’s vision and investment in design, lifestyle and liveability.”&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=4579]

Harbour Shores is 16ha visionary masterplan dedicated to wellness and an active, healthy lifestyle. Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, Harbour Shores embeds extensive green connections and more than 2.5km in pedestrian networks – including a 1.2km boardwalk along the water’s edge.

Harbour Shores was recently recognised by the BETTER FUTURE World Design Awards 2026 as a silver winner in the category of environmental sustainability. Boasting a 6 Star Green Star Communities V1.1 rating, Harbour Shores will deliver more than 2,000 homes over the next ten years.&nbsp;

The first stage will deliver three residential collections including luxury three and four-bedroom waterfront villas at The Residences, as well as apartments in The Waterline and Palm House, surrounded by resort-style amenities.&nbsp;

[smartcode_project_cta:default project_id=113271]

Biggera Waters no longer a 'bridesmaid suburb' as Gold Coast locals jump to Harbour Shores

Residential Lease

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GUEST OBSERVER
In the recent case of Harold R Finger &amp; Co Pty Ltd v Karellas Investments Pty Ltd [2016] NSWCA 123, the NSW Court of Appeal agreed with the orders of the Primary Judge, but for significantly different reasons. The Court found that the letter alleging to be a Lease agreement was not a binding contractual lease document. Following this, it held that the Karellas Investments (Lessee) had not repudiated the contract and that Harold R Finger &amp; Co Pty Ltd (Landlord) had no right of termination.
Fact Summary
This case related to the leasing of a supermarket premises in Newtown. In December 2009, the Lessee sent a letter to the Landlord for a “binding offer to enter into an Agreement for Lease”. The Landlord accepted the letter of offer in January 2010. Some of the provisions of the letter contained clauses which subjected the agreement to the provision of further formal documentation and terms to be added which had not yet been agreed on.
Following a low turnover forecast, the Lessee’s solicitors wrote to the Landlord on June 9 2010 seeking to adjust the lease terms “to see if the proposed lease terms could accommodate” the Lessee’s concerns.
After a series of letters, the Landlord alleged that the Lessee had repudiated the contract and accepted this repudiation. The Landlord then sought to terminate the contract for repudiation.
Was the Letter a valid Agreement for Lease? The Landlord argued that the letter’s statement that it was a “binding offer to enter into an Agreement for Lease” was that both parties were bound to the lease. The Lessee denied that the letter of offer constituted a binding agreement but was simply an agreement to negotiate.
The Court found that the letter established an agreement, but questioned its actual effect. The Primary Judge held that there was an enforceable contract under which both parties agreed to be bound by rent and other terms. Though Ward JA on appeal found there was an agreement, this agreement did not bring into existence an enforceable contractual lease.
The letter clearly stipulated that the agreement would be subject to further documentation and negotiation of important terms not yet included in the letter. These clauses were construed by the Court to indicate that the agreement would not be complete without such additional terms. The letter also provided the Lessee with a right to withdraw from the agreement if the formal documents required were not executed in 12 months. The Court highlighted that the existence of such a withdrawal provision further indicated that a final agreement may not actually be reached within 12 months. Therefore, the letter could not be reasonably constructed as a final and enforceable lease document. It was an agreement to negotiate in good faith.
Could Terms in the Letter be Re-Negotiated?
As there was no provision which stated that the terms in the letter were set-in-stone, they were open to re-negotiation. The only terms the Landlord could rely on were that the Lessee would negotiate in good faith during the 12 month negotiation period. The Landlord could not rely on any terms that were being negotiated with the Lessee until such terms had been finalised.
Did the Lessee Repudiate the Agreement? The Lessee contended that the June 9 letter did not constitute a repudiation of the agreement. The Primary Judge held that the June 9 letter was an indication of the Lessee’s willingness to negotiate only in circumstances where their demands would be met.
On appeal, the Court held that the Primary Judge’s interpretation of the June 9 letter was incorrect. Ward JA noted that the June 9 letter was in fact an invitation to negotiate. Whilst the letter may have indicated the Lessee’s potential refusal of terms presently negotiated, it was not an ultimatum. Therefore there was no repudiation. As a consequence, the Landlord did not have a valid right to terminate the contract.
Was the Termination Valid?
Whilst no right of termination arose, the Court still considered whether the contract was validly terminated by the Landlord. In a letter on June 11 2010, the Landlord’s solicitors wrote to the Lessee:
Your client’s withdrawal from the lease will result in our client incurring substantial losses. Our client will endeavour to mitigate those losses. However, we are instructed to put your client on notice that our client will hold it liable for all losses incurred by our client as a result of your client's actions. The Landlord alleged that this letter constituted a termination of the agreement. The Court held that the letter did not reasonably make clear that the agreement was at an end and hence the agreement was not validly terminated.
Inconsistency of Clauses
Whilst the inconsistency of clauses within the letter of offer was not a vital issue in this case, it is worth noting. The letter of offer gave the Lessee the right to amend their offer. However, in a separate clause, it stipulated that the signing of the agreement would create binding heads of agreement. Due to this inconsistency the right to amend the letter of offer was only extended up to the point the letter was signed by the Landlord.
Lessons
This case holds four key take-away messages:
Firstly, if a document purports to be an agreement to lease but relies on subsequent negotiations and/or documentation, it may not constitute a valid Lease Agreement.
Secondly, parties to an agreement should be very cautious in assuming a right to terminate a contract. The consequences of wrongful termination may amount to a repudiation and make the alleging party liable to damages.
Thirdly, if a party is intending to exercise a right to terminate, it should use clear language and should not proceed on an assumption. Failing to do so may constitute serving an invalid termination.
Finally, parties should be cautious when drafting terms and ensure clauses are not inconsistent with one another.
Gary Newton is partner, Tress Cox Lawyers and can be contacted <a href="https://www.tresscox.com.au/" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

A Lease Agreement may not be binding

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Western Australia led the rest of the country in rental listings in the past 12 months as listings rose nine per cent during the period, pressuring rental growth in some markets, according to latest data from CoreLogic.
“Western Australia council areas feature heavily on the list of regions that have seen the greatest increase in rental advertisements over the year, many of which are located in Perth,” according to CoreLogic’s head of research Cameron Kusher.
He said that sluggish investor activity in WA may indicate that as the economy has weakened and people have migrated away from WA, home owners may be looking to rent out their home rather than selling into weak market conditions.  
A number of NSW regions too figure on the list and this is probably more reflective of the ramping-up of housing supply purchased by investors, he said.
“Rental advertisement counts suggest that the population growth is increasingly being housed via investment housing (rental accommodation) which aligns with the lift in investor housing finance commitments over recent years.”
Over the 12 months to January 2017, houses advertised for rent rose 8.7 per cent to 362,708, while for units the figure was up 9.3 per cent to 287,233 properties.
“The rental market is currently seeing historic low rates of rental growth and with the amount of rental accommodation ramping up it is easy to see why,” said Kusher.
<a href="https://www.propertyobserver.com.au/images/2017/03/19/March17Rentals.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/19/March17Rentals.png" alt="">
Of the regions with at least 1,000 rental ads during the period, only 17 council areas experienced a decline in ads over the year, with Canberra and Hobart among them. 
Despite the housing construction boom in Sydney at the moment, Kogarah, Warringah and Manly have recorded fewer properties advertised this year compared to last year, signalling tighter rental conditions, said Kusher.
He said that with a record number of homes still under construction, mainly units, rental ads would continue to rise and will hurt rental price growth in many suburbs with choices increasing for renters.
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jonathanchancellor-7SQnKwU6yx

WA leads nation for rental listings increase: CoreLogic's Cameron Kusher

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Leaseback property deals, often targeted towards self-managed superannuation funds (SMSFs), are under the securities regulator’s review. 
 
The deals typically involve buying a residential investment property — house or apartment — with guaranteed tenancies that promise returns of around six percent, well above bank deposit rates or inflation numbers, according to a report in the Australian Financial Review.
 
The new owners lease back the properties to the developer who then acts as a landlord or engages a third party to rent and manage the property. Usually, these contracts are around three to five years and promise generous returns for the length of the contract.
 
Demand for the deals is growing among retirees looking for a regular, above-inflation income from the rent as well as the prospect of capital growth, the AFR reported.
 
The Australian Securities and Investments Commission stepped in to investigate because it wants property investors to fully understand their financial risks and responsibilities.
 
ASIC deputy chairman Peter Kell was cited in the report as saying that the watchdog is monitoring promoters of the schemes as part of a broader nationwide review of property spruiking and real estate deals on offer to SMSF investors.
 
"If these deals are done through self managed super, then it falls into the category of advice," Kell says.
 
Typically it involves the buyer of a property entering a leasing agreement with the seller. Yields are usually around three to four times the inflation rate of 2 per cent, or double returns on most fixed-rate deposit accounts.
 
The term is often three years but there is usually an option to extend the lease by six months for a maximum of two to three times.
 
But promises of such guaranteed rental returns are sometimes used by developers to lure investors to a weak market or masking an overpriced offer, warns a post on hotspotting.com.au.
 
“Developers offer them when they're struggling to sell apartments at the prices they want,” the post says. 
 
Recent prosecutions of spruikers are reassuring the regulator it has the legal power to close down unfair property-linked investment deals, despite it not being directly responsible for real estate.
 
"Get any deal reviewed by a lawyer and financial adviser before committing," said Anthea Digiaris, an associate with legal firm Slater and Gordon Lawyers, about the need for doing your own due diligence, the report said.
 
But Daren McDonald, a partner with management and property consultancy ShineWing, told the AFR that lease backs are common in commercial and retail sectors and can also work well for a short-term investor who enjoys the higher yield before moving into the property.
 
But Ben Kingsley, chair of industry lobby group Property Investment Professionals of Australia, echoes the advice from Hotspotting and warns investors to be careful.
 
"Times are tough for many developers because deals are not coming through. Rental deals are regularly offered by selling agents whose interest is to get a deal done for the developer, not look after the buyers' interests," says Kingsley.
 
The onus is on the developer to find the tenant.
 
"If they can't find a tenant, then the extra costs caused by no rental income will come from their margins. That means any rental guarantee will be included in the price the buyer pays."
 
Those considering a deal should answer these questions before completing a deal:
 
•Has the value of the property been inflated to cover the high yield?
 
•Do banks and other lenders impose tougher conditions around lease-back deals, such as stricter terms on interest rates, ability to repay, loan to value ratios?
 
•Who pays for property servicing contracts, body corporate fees, insurance, rates and maintenance during the lease?
 
•What happens at the end of the lease? Can the lease be extended? Who is responsible for restoring the property to its original condition?
 
•What happens if there is a contract breach by a tenant or the developer? Is there a structure to resolve disputes?
 
•Is there demand for this type of property?
 
•What rent can you achieve at the end of the developer's lease?
 
•Will the value of the property decline if the original lease no longer exists?
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prateek24-ezbwHMbNAk

Property lease-back deals under ASIC scanner

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For five years the BradfieldCleary agency in Sydney's east have been keeping tables on a selection of its rental re-lettings. 
 The latest shows properties re-let over the winter season. 
The overall the properties leased for an average of 3.91 percent above the previous rent. 
This is a particularly strong performance for rent returns in winter, a time when there is generally less demand than in the spring and summer, agent Bob Guth suggests.
The figures from previous winters; July 2012 (2.66 percent), July 2013 (0.80 percent), June 2015 (3.55 percent) were not as strong as this year. 
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"This may well be a reflection on the increase in values residential property has experienced over the last several years but may also come due to a slightly strengthening economy. 
"Needless to say some of the more significant increases may be as a result of some minor upgrades (paint, carpet, lighting, blinds etc) and the small falls in return because of wear and tear and general presentation."
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"Nonetheless it is clear that rents continue to rise above the CPI, confirming investment in residential property must surely be better than ‘money in the bank’," Bob Guth said.
 
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Sydney eastern suburbs rental rise above the CPI over winter

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Long term residential leases have been a rarity in the Sydney rental market, but one landlord at Bondi Beach seeks tenants who won't face being turfed out - or want to leave - after just six months.
The seasonal turnover in Bondi tenants is most likely higher than most locations, but <a href="https://www.thedriftbondi.com.au/residential/#the-drift" target="_blank">The Drift</a>, (above) a new 16-apartment block just a stones throw from the beach, has been pitched at occupants who want to settle in for 24 months or longer.
"I'd be happy to offer 36 months or 48 months," the building managing agent Byron Rose said, saying it was a small step in Sydney embracing the lengthy-stay European rental model.
The one and two bedroom lettings will go to market with an open day next weekend.
The 12 one bedders with study nooks are offered with a guide of $800 and the four units with two bedrooms, and also with study, expecting to lease around $850 a week.
It is owned by an eastern suburbs family syndicate who have redeveloped the corner complex after 25 years ownership.
"The family see ownership as inter-generational, and would like to have longterm tenants too" Byron Rose, the Rose and Jones leasing manager.
He said the idea came from demanding young professionals who want residential surety while they save for their own home.
“They want to live in Sydney’s hippest suburbs, but face a choice of just older, run-down buildings that aren't inviting. 
"They want to rent something they are proud of in a location they are likely priced out when it comes to buying."
Located on the corner of Hall and Gould streets, the apartments were designed by Silvester Fuller to fuse functionality and aesthetics.
They all include open plan living, a separate study hub and private timber-lined balconies with plantings. 
The one-bedroom apartments have around 57 square metre internal space.
Besties Cherie Allen and Chris Perkins got a recent look and love that The Drift encourages long term tenancy. It will be their first time away from home and they've heard horror high turnover rental stories. 
"Once I'm in, I'm not leaving," Allen said, admiring the craftmanship inside and the views outside.
There are wide window ledges which you can sit in, soak up the sun and watch world below, Perkins noted.
They don't want to do the rental inspections over and over again because the landlord wants to sell.
They've seen other places in Bondi backstreets that are old and run down - and you have to pay a lot for them. 
Statewide there are around 750,000 properties rented officially, with around 250,000 of these tenants seeking bond refunds annually from the Rental Bond Board showing the very high turnover.
For many decades protected tenants existed in NSW, safe from eviction. Their number sat at 200,000 in the early 1960s - about 70 per cent of all privately rented accommodation.
That dropped to fewer than 800 by the mid-1990s, and as recent as last year there was a Homebush tenant claiming such status under the 1948 act as a child of the original lease owner. 
No one is suggesting a return of the highly regulated days of protected tenants - where rents could only be raised by the Fair Rent Court - which stemmed as a result of wartime measures. 
But with more elderly in the rental market, the market place pressure will see landlords giving thought to offering longer tenure.
This article was first published in the Saturday Daily Telegraph.
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Long term rental tenancy coming to Bondi

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Residential property leases in Perth are up 3.3 percent from April to May and 7.4 percent when compared to May last year according to REIWA.
REIWA President Hayden Groves said the North-East sub-region was the stand out performer in May, lifting 16.6 percent on April, followed by the North-West sub-region which saw an 11.5 per cent increase.
“When compared to May 2015, the South-West sub-region saw the most notable lift in listings – up 21.8 percent on last year, followed by the North-East sub-region up 13.5 percent," he said.
 
“It’s pleasing to see that although rental listings remain above long term averages, there is still plenty of movement in the market with leasing figures on the rise across the metropolitan area.
"The spike in leasing activity during the month was felt across all but two of the sub-regions. Data shows that the Central sub-region and the South-East sub-region were the only sub-markets to experience a decline over the month, but when compared to May 2015 leasing activity was up 2.5 and 6.9 percent respectively."
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Perth tenant activity increases in May: REIWA

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The South Yarra apartment Luke and Ebony renovated on the hit TV show The Block has found a tenant.
The co-creator and executive producer Julian Cress made the property available to rent for $1,650 a week, short of the $1,950 a week which was hoped after the show aired.
Renovated in the building previously known as the seedy Hotel Saville, the three bedroom plus study apartment only missed out on winning the series by $15,000.
Nigel Johnston of hockingstuart had the listing of <a href="https://www.domain.com.au/1-1a-affleck-street-south-yarra-vic-3141-10356999" target="_blank">1/1A Affleck Street</a> which has been removed from various websites.
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