Manifestation of a system in trouble

Original article by Michael Bleby
The Australian Financial Review – Page: 34 : 25-Feb-19

Construction lawyer Bronwyn Weir says more building failures similar to the cracks that impacted Sydney’s Opal Tower are inevitable if serious reforms are not implemented by the states. Cracks in the apartment tower led to its residents being evacuated on Christmas Eve, with some still unable to return to their homes. Weir says developers and builders have no real interest in whether what they construct will perform over the long term, and they are not being held accountable for any actions that might negatively impact future owners.

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Reforms to help protect buyers

Original article by Michael Bleby
The Australian Financial Review – Page: 8 : 11-Feb-19

State and territory building ministers agreed to a ban on the use of unsafe aluminium composite panels in new apartment buildings at a Council of Australian Governments meeting on 8 February. However, the meeting did not define "unsafe". The meeting also agreed that builders have an ongoing duty of care to apartment owners to provide a building that meets required building code standards, and that builders will face extra liability if their buildings do not comply with such standards.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, HIGH COURT OF AUSTRALIA, OWNERS CORPORATION NETWORK OF AUSTRALIA INCORPORATED, MASTER BUILDERS ASSOCIATION OF NEW SOUTH WALES PTY LTD, UNIVERSITY OF WESTERN SYDNEY, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Apartment prices to come under pressure

Original article by Michael Bleby
The Australian Financial Review – Page: 6 : 7-Jan-19

BIS Oxford Economics estimates that 17,000 additional high-rise apartments will hit the Melbourne market in 2019, compared with 13,500 in 2018. Likewise, some 26,300 apartments in Sydney are expected to be completed in 2019, down from 28,000 in the previous year. The large number of apartments coming onto the market is expected to put further pressure on prices, while Angie Zigomanis of BIS notes that there may also be an increase in vacancy rates and a corresponding fall in rents.

CORPORATES
BIS OXFORD ECONOMICS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, WORLD CLASS LAND (AUSTRALIA) PTY LTD, ASPIAL CORPORATION LIMITED

Chinese look to exit unit projects

Original article by Lisa Allen, Ben Wilmot
The Australian – Page: 15 & 16 : 4-Jan-19

Many Chinese property developers are seeking to divest residential development sites on Australia’s east coast due to factors such as difficulty in securing financing and a decline in demand for apartments. Matrix founder Andrew Antonas says many sites that have scope for 300 to 400 apartments and are located within 15-20km of the Sydney CBD have been put on the market. However, he notes that smaller sites with a capacity of up to 200 apartments and the same distance from the CBD are being retained by developers. Mark Wizel of CBRE expects more Chinese developers to shift their focus to investing in local shopping centres.

CORPORATES
MATRIX PROPERTY GROUP PTY LTD, CBRE PTY LTD, SHIMAO PROPERTY HOLDINGS LIMITED, DALIAN WANDA GROUP COMPANY LIMITED, HNA GROUP, HPG, HAILIANG, YUHU GROUP (AUSTRALIA) PTY LTD, CHARTER HALL GROUP – ASX CHC

Red-hot market means the only way is up for apartments … way up

Original article by Matthew Cranston, Michael Bleby
The Australian Financial Review – Page: 1 & 10 : 27-Nov-14

A number of residential property developers have proposed to build apartment towers of at least 260 metres in Australia’s major capital cities. AMP Capital and Billbergia plan to construct a 300-metre tower in Brisbane, while Fragrance Group intends to build a 302-metre apartment tower in Melbourne. In Sydney, Mirvac is teaming up with Coombes Property Group to develop a 260-metre apartment tower. The boom in apartment development is in response to factors such as Australia’s growing population and the trend toward inner-city living

CORPORATES
AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP, BILLBERGIA PTY LTD, FRAGRANCE GROUP LIMITED, MIRVAC GROUP – ASX MGR, COOMBES PROPERTY GROUP, ASPIAL CORPORATION LIMITED, UEM SUNRISE BERHAD