<p>Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.</p>

<p>While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.</p>

<p>A new Colliers report, <em>Brisbane 2032 Olympic and Paralympic Games: Creating Solutions</em>, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.</p>

<p>The broader construction pipeline paints an even clearer picture.</p>

<p>Construction Skills Queensland's <em>Horizon 2032</em> report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.</p>

<p>The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.</p>

<p>[smartcode_project:default project_id=150489 project_image_fid=373834]</p>

<p>Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.</p>

<p>"From 2027 onwards, the market will shift dramatically," Scriven said.</p>

<p>"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."</p>

<p>Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.</p>

<p>"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."</p>

<p>[smartcode_project:default project_id=150713 project_image_fid=373827]</p>

<p>Developers are already positioning themselves ahead of that window.</p>

<p>Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.</p>

<p>Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.</p>

<p>The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.</p>

<p>Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.</p>

<p>"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.</p>

<p>"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."</p>


Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

<p>It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.</p>

<p>&nbsp;</p>

<p>Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.</p>

<p>[smartcode_project:default project_id=151449 project_image_fid=357458]</p>

<p>Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.</p>

<p>"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.</p>

<p>"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.</p>

<p>"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."</p>

<p>[smartcode_project:default project_id=151449 project_image_fid=357463]</p>

<p>Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.</p>

<p>Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.</p>

<p>[smartcode_project:default project_id=151449 project_image_fid=357469]</p>

<p>Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.</p>

<p>"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.</p>

<p>"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."</p>

<p>Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.</p>

<p>[smartcode_project_cta:default project_id=151449]</p>


Sherpa sells out Flourish Oasis in booming Palm Beach

<p>Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.</p>

<p>The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.</p>

<p>[smartcode_project:default project_id=134951 project_image_fid=368645]</p>

<p>Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.</p>

<p>"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.</p>

<p>"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."</p>

<p>[smartcode_project:default project_id=134951 project_image_fid=358802]</p>

<p>La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.</p>

<p>Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.</p>

<p>The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.</p>

<p>Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.</p>

<p>[smartcode_project:default project_id=134951 project_image_fid=364551]</p>

<p><a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.</p>

<p>Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.</p>

<p>"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.</p>

<p>Following completion of the building later this year, buyers will move into their apartments well before Christmas.</p>

<p>[smartcode_project_cta:default project_id=134951]</p>


La Vera closes in on completion as Macquarie Park continues residential transformation

<p>Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.</p>

<p>More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.</p>

<p>The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.</p>

<p>Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.</p>

<p>Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.</p>

<p>Just 17 of the original 36 dual key apartments remain available.</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=367096]</p>

<p>The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;</p>

<p>The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363511]</p>

<p><a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;</p>

<p>“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;</p>

<p>“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.</p>

<p>“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363509]</p>

<p>Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;</p>

<p>The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.</p>

<p><a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;</p>

<p>“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;</p>

<p>“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;</p>

<p>“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;</p>

<p>[smartcode_project:default project_id=135546 project_image_fid=363515]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;</p>

<p>The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.</p>

<p>The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;</p>

<p>Erwin said the dual key concept represented a broader shift in how Australians would live in the future.</p>

<p>“People want homes that can evolve with their lives,” he said.&nbsp;</p>

<p>“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”</p>

<p>Prices currently range from $2,115,750 to $2,583,000.&nbsp;</p>

<p>[smartcode_project_cta:default project_id=135546]</p>


Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

<p>Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.</p>

<p>Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.</p>

<p>The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.</p>

<p>Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.</p>

<p>“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.</p>

<p>“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”</p>

<p>Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.</p>

<p>The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.</p>

<p>He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.</p>

<p>“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”</p>

<p><img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.</p>

<p>According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."</p>

<p>The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.</p>

<p>Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.</p>

<p><img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" /></p>

<p>The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.</p>

<p>Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.</p>

<p>The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.</p>

<p><img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" /></p>

<p>"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.</p>

<p>"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."</p>

<p><img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" /></p>

<p>The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.</p>

<p>Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.</p>


First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

Western Australia

<html><body>
<p>Amendments to the Plumbers Licensing and Plumbing Standards Regulations 2000 are being drafted in Western Australia to include new plumbing standards for subdivision plumbing work in relation to survey strata schemes.</p>
<p>The changes are outlined in Industry Bulletin 125 – New requirements for plumbing services to survey strata lot developments.</p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>The new standards for plumbing services in relation to survey strata schemes commenced operation on 15 August 2020.</p>
<p><span>Plumbing services to individual survey strata lots consist of sanitary drainage service lines and connection points, and water supply service lines and connection points. </span></p>
<p><span>The requirements apply to survey strata developments consisting of two or more survey strata lots.</span></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Prior to 2015 the Water Corporation provided guidance and direction to land developers in the form of ‘Plumbers advice kits’ for the provision of sanitary drainage service lines and connection points and </span><span>to;</span><span>water supply services to individual survey strata lots.</span></p>
</div>
</div>
<div class="layoutArea">
<div class="column">
<p><span>The developer would then engage an LPC to install the services where necessary as part of the process towards obtaining titles for the lots. This generally ensured that survey strata lots were provided with suitable plumbing services prior to the lots being sold and building commencing.</span></p>
<p><span>In 2015 the Water Corporation came to a decision that it was not in their remit to enforce requirements for plumbing services to individual survey strata lots beyond providing a connection point at the main lot boundary. Since then there have been consistent issues regarding the provision of plumbing services to individual survey strata lots including:</span></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>• new strata lots not being provided with services at all;</span></p>
</div>
</div>
</div>
</div>
<p>• services to lots being inappropriately located, e.g. installed diagonally across other lots where they are susceptible to damage during site-works;</p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>• lots that are not serviced being ‘built out’ when a house is built on another lot that is between them and the main sewer connection point; and</span></p>
<p><span>• difficulty locating connection points due to no drainage plumbing diagram being available.</span></p>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Where sanitary drainage services are required a developer must engage an LPC to install a suitable sanitary drainage service line(s) and connection point(s) to each lot. </span></p>
<p><span>Where water services are required the developer must enter into an agreement with a water services provider (in most instances the Water Corporation) to either install infrastructure, or provide direct services </span><span>or </span><span>multi-metering to each lot on the survey strata scheme, or alternatively engage an LPC to install water supply services to each lot on the scheme.</span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p> </p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Plumbing standards regulations being drafted for strata subdivision plumbing work

<html><body>
<p>Ahead of the full impact of the COVID 19 pandemic, nearly 1 in 10 stores across WA’s 78 largest supermarket based shopping centres is currently vacant, according to a new study by independent commercial property research and information firm, Y Research.</p>
<p>The study physically reviewed the occupancy of metropolitan Perth’s 78 largest supermarket based centres from Butler in the north, Mundaring in the east and Halls Head in the south across June 2020, after relaxation of COVID 19 restrictions.</p>
<p>As of June 2020, the vacancy rate across these centres was 9.4%.</p>
<p>The vacancy rate for WA’s largest centres, Major Regionals which includes centres such as Lakeside Joondalup, Westfield Booragoon and the Galleria, was 7.4%, more than three times higher than their historical average of 1 to 2%. Despite anecdotal evidence that consumers are shopping at local neighbourhood centres, these centres recorded the highest vacancy rate of 13.9%, followed by sub regional centres with 11.5%.</p>
<p>There is a wide disparity across centres reflecting economic conditions across Perth’s suburbs. Claremont Quarter recorded the lowest vacancy rate - 1.7%. Conversely 21 centres across suburban Perth have vacancy rates already over 15%, with 5 centres more than 25% vacant.</p>
<p>There are a range of factors contributing to the current level of vacancy - weak economic conditions post the mining boom, a string of national retailers going into administration and recent centre expansions adding supply.</p>
<p>Y Research Principal Damian Stone said, “So far COVID has had minimal impact on current vacancies. A limited number of retailers, mainly tourism based retailers such as travel agents, have surrendered their tenancies. For a majority of retailers, a combination of rental relief from shopping centre owners, a national code of conduct restricting evictions and Government Assistance (Job Keeper) has seen them return to trading."</p>
<p>"The longer term impact of the pandemic on WA’s shopping centres remains uncertain. Based on discussions with industry stakeholders, the expectation is that across the balance of 2020 we will see a limited number of retailers close, but the new looming cliff is February/March 2021 when Government assistance ends and investment decisions, such as ordering winter stock, are required."</p>
<p>"Retailers will be depending on a strong Christmas/New Year period in order to trade through the worst of the economic pain caused by the pandemic. Going forward, the internet is as much a threat to centres as COVID. The pandemic has driven significant retail sales online with a broader range of consumers happy to shop online through platforms such as Amazon, Uber Eats and retailers’ expanded e-commerce platforms."</p>
<p>"The pandemic has seen the range of products purchased online grow from fashion, food and entertainment (Netflix and books) through to groceries and homewares."</p>
<p>"The continued closure, either full time or on reduced hours, of a number of national chain stores is a likely early indicator of consolidation of store networks adding to existing high vacancies. Further closures will be difficult to fill."</p>
<p>"In response, in the years ahead the tenancy mix across WA centres will evolve with services such as medical centres and gyms becoming a standard feature; lower discretionary spending will drive take up from discount retailers and moves to add density surrounding the centre will be common place."</p>
<p>"For retailers, further discounting will likely be required in order to get consumers to part with limited discretionary spending post Government assistance."</p>
</body></html>

Nearly 1 in 10 stores across WA shopping centres is vacant: Y Research

<html><body>
<p>Western Australia is the most affordable state to live in for the eleventh quarter in a row, according to the latest Real Estate Institute of Australia report. </p>
<p>REIWA president Damian Collins said the report findings revealed affordability in WA's housing and rental market were still at their best levels. </p>
<p><span><span>“The March quarter was an unusual one for the entire nation due to COVID-19, however it’s pleasing to see that WA has remained the most affordable state, while seeing prices and rents holding and not falling significantly, as was predicted by many early on,” Mr Collins said. </span></span></p>
<p><span><span>According to the report, tenants in WA were only required to use<span> 16.6 per cent of their</span> family income to pay their rent in the March quarter.  </span></span></p>
<p><span>"This is significantly below other states where it reached as high as 30.5 per cent.” Mr Collins said. </span></p>
<p><span>The proportion of family income required to meet home loan repayments was 25 per cent in WA over the same period, significantly less than </span><span style="font-size: 12.16px;">NSW where homeowners still pay an average of 42.5 per cent of their family income on home loan repayments. </span></p>
<p><span>However, affordability improved across the nation overall as red-hot markets in Sydney and Melbourne cool. </span></p>
<p><span><span>“While the dream of home ownership remains a challenge on the East Coast, it’s very much alive and well in WA, as our rents and home values are the most affordable of all the states,” Mr Collins said. </span></span></p>
<p><span> </span></p>
</body></html>

Western Australia retains top spot as most affordable state; REIWA

<html><body><div class="page" title="Page 25">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Consumer sentiment is a big driver in Western Australia's property market and due to the recent COVID-19 outbreak, at the time of writing, consumer sentiment is fragile to say the least, according to a recent Herron Todd White (HTW) residential report. </span></p>
<p><span>The current COVID-19 pandemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.</span></p>
<p><span> The report suggests there are many other key local, national and global drivers that influence the property market and these economic drivers are in a constant game of tug-o-war, continuously shifting along a scale between supply and demand - the result of which creates price movement within the property market. </span></p>
<p><span>"In Western Australia, our economy is most heavily influenced by the mineral and gas resources industry. The resources boom has been mentioned in almost every Western Australia segment of the Month in Review in recent years as it has impacted the state so significantly and will continue to do so for the foreseeable future," the valuation firm said. </span></p>
<p><span>Mining projects throughout the state create thousands of jobs through construction work, maintenance, cleaning, machine operation, management etc. These jobs bring in hundreds and sometimes thousands of interstate and overseas workers in what can be relatively short periods of time, due to the enticing remuneration packages offered by large companies that compete for a limited workforce. </span></p>
<p><span>Conversely, when projects </span>come to completion, net migration can turn negative rapidly. The fluctuation of job vacancies and unemployment plays a large role in Perth’s property market as it influences our overall population in significant waves.</p>
</div>
<div class="column">
<p><span>"Net state and overseas migration statistics are directly linked to median house price and rental trends. We observe the nearly direct relationship of net migration and median house price growth, the effects of which have an approximate one-year delay," the valuation firm said. </span></p>
<div class="page" title="Page 25">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Not only does resource sector employment influence migration, it also plainly affects total unemployment. Net migration partially determines the number of people moving into Western </span>Australia to soak up housing stock and unemployment shapes how many residents are in a suitable financial position to make purchases within the property market.</p>
<div class="page" title="Page 25">
<div class="section">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 25">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>"As we touched on in our September 2019 edition, increased resource investment in 2006 influenced the mining sector across the whole state," the valuation firm said. </span></p>
<p><span>Mineral exports were ramping up as the amount of iron ore Western Australia was capable of exporting quadrupled in value from 2006 to the peak in 2012. This enabled businesses across Perth and regional Western Australia to find space for a number of new job vacancies and in 2006 we saw 31,000 migrants flock to the state, including both net interstate (3,100 persons) and overseas migration (28,070 persons). It didn’t stop there though. </span></p>
<p><span>Migration figures increased again, then had a lull and eventually peaked in 2012 when we saw a total of 58,600 people travel to Western Australia to get their share of the revenue from the resources boom.</span></p>
<div class="page" title="Page 25">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>As mining investment declined, so did the availability of jobs. Some mining construction projects came to completion and this began the increase in unemployment rates. </span>The construction phase had ended, temporary contracts did not get extended and we started to see a significant level of redundancies.</p>
<p>Suddenly businesses were consolidating their workspaces as they employed less and less people. Many office buildings, apartments and land developments were under construction and now coming to completion, however there were no tenants or home buyers to lease or purchase these spaces, the report noted. </p>
<div class="page" title="Page 26">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The CBD office vacancy rate skyrocketed to over 20 percent and supply severely overshadowed demand, reversing the economic cycle. From here consumer sentiment began to slip and less access to finance stopped any interest from investors and owner-occupiers. Residential rents, office rents and house prices started their slow descent to their current position. </span></p>
<p><span>Net interstate migration has been in the negative since 2014. In 2017, 14,000 people left Western Australia for other Australian states, however since then, both interstate and overseas migration has improved slightly.</span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<div class="page" title="Page 26">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The trends mentioned above are demonstrated in Figure 3. BHP recruited over 10,000 new employees and contractors between 2008 and past the peak in 2012 as the construction phase progressed to operational. </span></p>
<p><span>When many construction projects came to completion, there was a significant shedding of employment forces. Figure 3 does </span>show that BHP has been ramping up Australian recruitment again in recent years, which aligns with the commencement of its South Flank iron ore development in 2019, and other companies are doing the same.</p>
<p>"The data is not as transparent as it once was, due to the level of employment via third party contractors, hence the clarity of the current situation is difficult to demonstrate," the valuation firm said. </p>
</div>
<div class="column">
<p><span>Recent investment into Western Australia’s natural resources has come as positive news for our property market and economy as a whole. </span></p>
<p><span>There are several projects already underway or awaiting commencement in Western Australia and iron ore is dominating the mining sector with an estimated $17 billion worth of projects that will or are generating around 11,000 construction jobs over the next few years, some of which started back in 2018. </span></p>
<p><span>These projects will also employ an approximate 3,000 continuing operational jobs. Many experts have suggested that this will create a mini-boom such as the one seen in the early 2010s, however on much smaller scale.</span></p>
<div class="page" title="Page 26">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Net interstate and overseas migration has reverted to positive figures again and this has helped to stabilise property values in the Perth metropolitan region.</span></p>
<div class="page" title="Page 26">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>"So how is Perth faring at the moment? Greater Perth’s median house price settled at $478,000 for the December 2019 quarter, falling by 1.2 percent," the valuation firm said. </span></p>
<p><span> Negative house price growth has been easing off for some time now, however the disparity between Perth’s inner and outer suburbs has caused some confusion for homeowners on where we currently sit. A very positive sign for Western Australia is the rebounding of vacant land prices. </span></p>
<p><span>Between the March and December 2019 quarters the median price of vacant land saw three consecutive increases, rising 3.4 per cent from $236,000 to $244,000. Perth hasn’t seen an increase in median vacant land prices since mid 2017 and that only lasted for one quarter.</span></p>
<p><span>Perth’s apartment sector over the past 20 years has been very cyclical, but is maturing rapidly. From 2012 to 2015, Western Australia saw a boom of apartment construction, fuelled by the resource sector</span>.</p>
<p>During this time, demand was high and developers of all kinds jumped in to fill the void with mainly investor grade products and several prestige developments that commanded high values as the market matured. Unfortunately the timing of completion of these was poor and on the downward part of the cycle.</p>
<p>Today Perth’s apartment market is still reeling from a large oversupply in some areas and it does not appear that this supply line will be going away any time soon, with an estimated 1600 new apartments completed in 2019, as well as 800 more anticipated by the end of 2020.</p>
<p>Beyond then, 3,100 apartments are expected to reach completion in 2021 and 2022 (JLL, 2020). This coupled with the 2,400 units currently on the market could mean further price corrections in this segment which is exacerbated by current state government policy directing demand to new supply.</p>
<div class="page" title="Page 27">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>First home buyer locations such as Baldivis, Byford, Ellenbrook and Alkimos have all experienced continued value decreases over the past few years, the report noted. </span></p>
<p><span> Vast land development alongside Perth’s suppressed population growth has spelt disaster for this market segment. Advice from our valuers suggest that there has been little improvement </span>in these areas recently and we don’t hold much hope for the short term either. We do expect to see diminishing rates of negative growth over the medium term as long as economic conditions improve, however recent events have now cast doubt on this.</p>
<p><span>Moving closer to Perth, upgrader locations are faring slightly better than their outer rim counterparts. There has been a mix of value increases and decreases amongst various suburbs, however some recent positive signs include improving selling periods and declining vendor discounting. This can mostly be attributed to home owners heeding advice from their agents and pricing homes correctly from the get-go. </span></p>
<p>Kingsley is a suburb located 16 kilometres north- west of the CBD and is considered an upgrader location. The median house price in Kingsley decreased 0.3 percent during the December 2019 quarter, settling at $543,250. Negative house price growth has diminished over the past four years and hopefully we will see values increasein the medium term.</p>
<p>A four bedroom house in Kingsley is currently on the market with a price guide of over $579,000.</p>
<p>The <a href="https://www.realestate.com.au/property-house-wa-kingsley-133547830" target="_blank">7 Chauncey Court </a>home (pictured below) comes with large family living, two bathrooms, home office, updated kitchen and double carport. </p>
<p>It is situated close to shops and schools. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/25/kingsley.jpg" alt=""></p>
<p>Previous news of positive economic conditions has been a big driver for sales in established suburbs as owners take up the opportunity to upgrade before prices increase.</p>
<p><span>In the south-west part of the state, the recent uptick in activity in the resources sector has seen </span>the number of fly-in-fly-out workers begin to increase for the first time since the winding up of the mining construction boom. While the numbers are a far cry from the previous peak they are definitely improving.</p>
<p>There has been significant investment in the growth of the Talison lithium mine in Greenbushes (north of Bridgetown) as well as the associated infrastructure in the past few years.</p>
<p>On top of this there is a $1 billion lithium processing plant under construction in Kemerton (north of Bunbury). This was expected to bring a large number of workers to these regions however the reduction in the price of lithium has slowed these projects down.</p>
<div class="page" title="Page 27">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The south-west region relies a lot on local and international tourism. There is much anticipation for the start of the interstate direct flight from Melbourne to Busselton which started in March. </span>The timing, however could have been better as the slow down caused by the reaction to the spread of COVID-19 is likely to limit the number of travellers and tourists visiting the region at a time when it was hopeful there would be a significant increase in this sector.</p>
<p><span>There are a number of large residential subdivisions on the outskirts of Bunbury, Busselton and Margaret River which hold a large number of affordable properties.</span></p>
<p><span>A three bedroom unit in Bunbary was sold for $215,000 in April.</span></p>
<p>The <a href="https://www.realestate.com.au/sold/property-unit-wa-bunbury-133296874" target="_blank">10/180 Forrest Avenue</a> (pictured below) unit comes with open plan kitchen, meals and family room, outdoor patio area and double garage plus storeroom.</p>
<p>It is situates closed to shopping centres, schools and parks. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/5/25/bunbury.jpg" alt=""></p>
<p><span>The report notes first home buyer activity has been on the increase in these areas however this is also likely to stall due to the uncertainty over the outcome of the effects of COVID-19. It is anticipated that new building construction is also likely to stall as a result of this.</span></p>
</div>
<div class="column">
<p><span>The residential market in Cowaramup has outperformed most other towns in the region. As the number and quality of houses in the suburb increases and the town becomes more established, demand has also increased. Land sales were at their lowest level in ten years in 2019 which is an indication of the low levels of residential land now available in Cowaramup. With good demand and low supply of land, values are expected to increase in the short to medium term.</span></p>
<p><span>Kalgoorlie is the major city within the eastern goldfields region – located some 600 kilometres east of Perth. Known for its gold mines, there have been many excavation projects of all sizes here. KCGM Super Pit produces up to 800,000 ounces of gold annually. The Kalgoorlie-Boulder area has a median house price of $290,000, falling three percent over the December 2019 quarter, however the region has seen some positive signs of late as Piccadilly, South Kalgoorlie, Kalgoorlie and West Lamington experienced quartlerly increases between 0.2 percent and 14.8 percent.</span></p>
<p><span>Hannans, Kalgoorlie and West Lamington also showed annual improvements between 0.8 and 4.2 percent. The price of gold has a direct impact on this town’s prospects as many of the workers live in the region.</span></p>
<p>The report notes gold has been a relatively stable long-term investment over the past 20 years. The recent COVID-19 outbreak could potentially see gold prices increasing further due to investors selling stocks and moving to a safer venture in gold. Conversely, prices could also drop in the short term due to a lack of demand from Chinese manufacturers and jewellers.</p>
<p>In 2019, China held the largest portion of demand in the world for gold at 33 percent, so it will be interesting to see which direction the market shifts towards.</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<div class="page" title="Page 28">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>"COVID-19 will no doubt have significant negative economic outcomes. Historically in times of uncertainty investors look to consolidate their capital instead of growing it through new ventures, and this will certainly slow the market down further. </span></p>
<p><span>"Government subsidies and cash rate cuts may come in hopes of stimulating the economy, although it will be hard to curb consumer sentiment when we are faced with a global pandemic.</span></p>
<p><span>"It’s not all bad news though - investors and residents with secure jobs may be able to find great value in the property market over the coming year," the valuation firm said. </span></p>
</div>
</div>
</div>
</div>
<div><span style="text-decoration: underline;"><em>Note regards COVID-19 </em></span></div>
<div>
<span><em>This edition of Month In Review had its topic defined in late February with submissions from our offices collated through to late March. During this period, shifts in the social and economic landscape due to COVID-19 became increasingly dramatic, as demonstrated by the varied information provided by offices over the course of three weeks.</em></span><em><br></em>
</div>
<div><span><em>This month’s residential theme on baseline property market drivers remains a common thread, and provides an indication of what influences to monitor as the property sector recovers post-crisis.</em></span></div>
<p><span> </span></p>
</div>
</div>
</div>
</div></body></html>

How will COVID-19 pandemic impact Western Australia property market: HTW residential

<html><body>
<p>Up to 10 people at a time will be allowed to attend open homes in Western Australia after the state government eased coronavirus restrictions.</p>
<p>Real estate agents across the state have only been able to show one person through a property at a time in the four weeks since the state government imposed a two-person only restriction on March 30.</p>
<p>These stage 3 restrictions will be eased on Monday in WA, Premier Mark McGowan and Health Minister Roger Cook announced on Sunday.</p>
<p>Real Estate Institute of Australia president Adrian Kelly said, “We would obviously like to see that extended throughout the other states, but at the same time that needs to be done very slow and steady because the last thing we need in Australia is a second wave of the virus to occur … we’ve all worked hard to get this far."</p>
<p>Under the changes, a maximum of 10 people will be allowed at weddings, funerals, outdoor personal training, open homes and display village inspections.</p>
</body></html>

Restriction eased on open home inspections in Western Australia

<html><body>
<p>Frasers Property Australia has appointed Tod O’Dwyer as its new General Manager WA Residential.</p>
<p>Mr O’Dwyer has more than 30 years of experience in the residential development sector, focused primarily on the development of masterplanned communities.</p>
<p>Prior to joining Frasers Property a decade ago, he worked with Delfin Lend Lease for 17 years in Queensland and Victoria.</p>
<p>He has relocated to Perth from Melbourne, where he has held the role of General Manager - Development and Design for the past nine years.</p>
<p>Cameron Leggatt, Executive General Manager Residential, Frasers Property Australia says Mr O’Dwyer is one of the company’s most experienced executives with a passion for delivering strong, vibrant communities.</p>
<p>“Frasers Property has operated in Western Australian for more than 50 years. Tod’s move to Perth is a reinforcement of our commitment to Western Australia and our confidence in that market,” says Mr Leggatt.</p>
</body></html>

Frasers Property Australia appoints new General Manager for WA Residential

<html><body>
<p>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.</p>
<p>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.</p>
<p>“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.</p>
<p>“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."</p>
<p>“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.</p>
<p><img src="https://www.urban.com.au/images/2020/2/24/WA%20leasing%20data.JPG" alt=""></p>
<p>Of these top suburbs, eight of them are located south of the river, with Armadale and Parmelia following close behind Medina.</p>
<p>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.</p>
<p>Rounding out the top five is Seville Grove and Port Kennedy which both had a rental yield of 5.6 per cent.</p>
<p>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."</p>
<p>“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.</p>
</body></html>

Top suburbs for WA property investors revealed: REIWA

<html><body>
<p>EXPERT OBSERVER</p>
<p>With economic activity in Western Australia well below its 10-year average and effective unemployment significantly above the 10-year benchmark, the property market, particularly units, continues to experience weakness.</p>
<p>However, according to the latest RiskWise Property Research Risks &amp; Opportunities Report, buyer confidence is on the increase in the state, particularly Perth with housing finance increasing 15.1 per cent since February 2019 after a reduction of 2.4 per cent relative to August 2018.</p>
<p>With low economic activity and high unemployment, Western Australia’s annual population growth of 1 per cent was the third lowest in the country.</p>
<p>As a result, the housing market, particularly units, has experienced continued weakness in recent years. According to CoreLogic, house and unit prices in Perth have declined by 8.6 per cent and 9 per cent in the past year, respectively.</p>
<p>Western Australia is still in a long transition process from a mining-oriented economy and while unemployment has slightly improved from 6.1 per cent in April to 5.7 per cent in October, it is still projected to deliver low economic growth, a soft job market and low population growth.</p>
<p>Mortgage arrears are at an alarming level with the delinquency rate sitting at 2.75 per cent. While this has improved from 3.05 per cent as reported in August, this number has grown over the course of several years and is now well above the Australian average. The relatively high unemployment rate also increases the risk of credit defaults.</p>
<p>Negative equity also remains a major risk especially for lenders who have a concentration of loans in this market. These risks are compounded by this high rate of arrears. High-risk borrowers, combined with properties that suffer from low demand, require special attention in relation to credit provisioning.</p>
<p>While Perth was ‘very affordable’, there were a small number of suburbs where houses delivered reasonable capital growth in recent years. However, these were exceptions only.</p>
<p>Despite lower interest rates (with another expected in the new year) and some loosening of credit restrictions, houses still carried a medium level of risk due to Western Australia’s economic conditions.</p>
<p>House prices have declined by 9 per cent in the past year and in Perth, house and unit prices declined by 8.6 per cent and 9 per cent, respectively.</p>
<p>Low-performing areas for houses in the past year include Perth - North East (with -8.8 per cent capital growth), Perth – Inner (-8.4 per cent) and Perth - South West (-7.3 per cent).</p>
<p>However, the risks associated with units is even higher as they are expected to deliver poor or negative capital growth due to the combination of oversupply, lending restrictions and low demand as they are generally not attractive to families or owner-occupiers.</p>
<p>Also, units in some suburbs are subject to voluntary lending restrictions by the major lenders, such as lower loan-to-value ratio (i.e. higher deposit). In addition, the state government tax on overseas investors further decreases the demand for new units as investment properties.</p>
<p>Perth – South East has the highest rate of unit oversupply in the state with 1900 units in the pipeline (a 6.7 per cent increase to the current stock).</p>
<p>The issues with construction defects in NSW and Victoria and the publicity they have received in the media mean this situation is unlikely to materially improve in the short term.</p>
<p>While there have been no major construction defects reported in relation to high-rise buildings in Perth, the events in Sydney and Melbourne increase the risk of reputational damage and, consequently, lower demand for both existing and off-the-plan high-rise units.</p>
<p><em><strong>DORON PELEG </strong>is the CEO of RiskWise</em></p>
</body></html>

WA property market remains in the doldrums: RiskWise's Doron Peleg

<html><body>
<p>The past year has been a relatively quiet one for high priced properties in a region that has its fair share of prestige properties given the extensive coastlines and magnificent ocean views, according to the latest Herron Todd White (HTW) residential report. </p>
<p>The report notes the region in the past five years regularly achieved residential sales upwards of $3 million, however 2019 has been a quiet one.</p>
<p>"It’s probably a good indicator of the subdued state of the top end of the market that there have been so few sales," the valuation firm said. </p>
<p>A couple of sales which were notable in the past 12 months are:</p>
<p>The report at 2/28 Ella Gladstone Drive, Eagle Bay (pictured below) was sold for $2.8 million in June. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/27/28%20ella%20galdstone%20drive.jpg" alt=""></p>
<p>This is a circa 2011, two storey, four bedroom, two bathroom, architect designed dwelling which has been finished to a very high standard and includes quality fitout and a below ground pool.</p>
<p>The property is located at the end of a cul-de-sac on a 916 square metre elevated site and has very good ocean views.</p>
<p>"Eagle Bay is a salubrious locality and comprises many high quality homes many of which have views of the ocean and bay. This property ticks all the right boxes," the valuation firm commented. </p>
<p>The property at <a href="https://www.realestate.com.au/sold/property-house-wa-naturaliste-130138482" target="_blank">15 Duckworth Place, Naturaliste </a>(pictured below) was sold for $2.3 million in January. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/27/15%20duckworth%20place.jpg" alt=""></p>
<p>This property comprises a circa 2000, single level, four bedroom, two bathroom, architect designed dwelling with rammed earth and timber walls.</p>
<p>The property has many features including a 14 metre high ceiling and has been finished to a very high standard with a top quality fitout.</p>
<p>It is located on Mount Duckworth which is situated between Dunsborough and Yallingup on a moderately sloping elevated rural residential lot which has a land area of 4.3 hectares.</p>
<p>The elevated location of the house gives it excellent panoramic views of the coastal plain and distant ocean views of Geographe Bay.</p>
<p><strong>Listings</strong></p>
<p>In terms of listings, it would be hard to go past the property at <a href="https://www.realestate.com.au/property-house-wa-eagle+bay-132010658" target="_blank">7 Picquet Close, Eagle Bay</a> (pictured below).</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/27/7%20picquet%20close.jpg" alt=""></p>
<p>It is a 2003 built two-storey limestone dwelling with three bedrooms and two bathrooms and is situated on a 2,243 square metre elevated site and has absolute beach front to Eagle Bay.</p>
<p>"The very private house has been finished to a high standard however it is the fact that is has ocean views from almost every window and that you could stand on the back deck and almost reach out and touch the whales as they pass by that makes this property stand out.</p>
<p>"Be prepared to put your hand in your pocket though - it doesn’t currently have an asking price and is asking for offers," the valuation firm said.</p>
</body></html>

A quiet year for South West WA prestige market: HTW residential 

<html><body><div class="page" title="Page 34">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The residential property market in general in the South West of Western Australia does not, as a rule, take yields into consideration, according to a recent Herron Todd White (HTW) residential report. </span></p>
<p><span>The valuation firm took a look at rental yields across the nation. </span></p>
<p><span>"Yes, investors want good returns adequate to cover the annual costs and help pay off the mortgage but it is capital growth that underpins most of the investor market in the South West," the valuation firm said. </span></p>
<p><span>"If you are after return on investment in the residential market, then the short stay accommodation market may be your thing. </span></p>
<p><span>"However these also have their issues. High strata levies and expensive management and cleaning fees eat into an income which is very seasonally dependent," the valuation firm added. </span></p>
<p><span>The report notes on top of this in general there has been very little capital growth in the short stay market.</span></p>
<p><span>The Airbnb market has increased significantly in the region over past years to such an extent that it has limited the supply of rental properties on the market. </span></p>
<p><span>In some instances, this has placed upward pressure on rental values in peak holiday periods.</span></p>
<p><span>"Properties which have a mix of both short stay and permanent use become more attractive, particularly if they are well located and with good views." the valuation firm said. </span></p>
<p><span>These properties can benefit from high returns in the holiday seasons and modest returns </span>in the off seasons. They are also more likely to benefit from capital growth.</p>
<div class="page" title="Page 35">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>There has been an increase in demand for properties which have the potential for a little income on the side, such as properties with granny flats or a second dwelling which can be rented<br>out on either a short stay or permanent basis.<br></span></p>
<p><span>The Shire of Augusta-Margaret River now permits granny flats and second dwellings to be leased on a permanent and short term basis which increases the options available for extra income. </span></p>
<p><span>Agents have indicated that this sector of the market is on the rise. It is also having an influence on the design of new homes so as to allow for Airbnb style accommodation.</span></p>
<p><span>"Rental income be it short stay or permanent is important to cover costs but capital growth is still king." </span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

Western Australia

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Western Australia

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News