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Scottish property consultancy Galbraith has reported good performance in the Highland housing market over the past three months, despite wider concerns over the cost of living and economic uncertainty.
The key motivations to buy in the region, such as lifestyle factors and the desire for more space, underpin continued activity in the traditionally quiet winter months.
Phiddy Robertson, who leads the Galbraith agency team for Inverness and the Highland region, said: “The pandemic brought with it a rural property boom, facilitated by an acceptance of new working practices, and driven by low stock availability and a desire from many to move away from densely populated areas.
“Though the impact of the rise in the cost of living along with recent economic and political uncertainty has caused a levelling off in this rise, the new attitudes to lifestyle prevail and the evidence is that good quality property will continue to perform well.
“The overall number of viewings is down, but those now looking to buy, both left over from last year and new to the market, are genuine purchasers making the whole process less stressful and time consuming for sellers.
“In addition, as the frenetic activity of last year lessens, mortgages are being approved more quickly and solicitors are able to complete the conveyancing process sooner: however committed the buyer and seller, unnecessary delays to the conclusion of missives or exchange of contracts erodes confidence and for no good reason a sale can founder. We are pleased therefore to see the process of completing transactions working well and access to finance easing.”
Galbraith further reports that the traditional patterns of activity in the property market – with sustained transactions from April to October and a slowdown in the winter months – are gradually changing, and as marketing media and communications become ever-more advanced, a 12-month market is becoming the norm.
Recent sales that demonstrate the strength of demand in the Highland housing market include:
- Rockybank, Inveralligin near Achnasheen, on the market for offers over £265,000 – a traditional cottage in need of renovation that was marked ‘under offer’ just two weeks after launch.
- Lochbay House, Isle of Skye; marketed for offers over £600,000
- Primrose Cottage in Aultbea, Wester Ross, which was marketed for offers over £240,000 – the sale was agreed in four weeks.
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Her name is on the door at one of Australia’s biggest architectural firms. But it’s in another pocket of property that Zahava Elenberg has really made her mark.
Elenberg is turning 50 this year and the highly successful business that she “kind of fell into” turns 21. But the architect-turned designer pulls no punches. She says it is a privilege to age and she intends on celebrating the milestone.
She founded Elenberg Fraser in 1998 with Callum Fraser at the tender age of 24, but says moving into the furniture, fixtures and equipment (FF&E) space was where she found her niche.
In 2002 she and a friend were asked to do a furniture fitout of a project in Docklands back when it was “emerging out of the scum of the Yarra”.
“The budget they gave us was ridiculous, there was no way we could do a fitout with that. But I like a challenge,” she says.
From that experience the seed of an idea germinated and Move-in was born. Elenberg says it is impossible to count how many spaces they have fitted out over the years but says it’s “tens of thousands” of apartments, about 5000 student accommodation rooms, ski resorts in New Zealand and hotels all around the world.
▲ The purpose-built student accommodation sector has invested heavily in furniture fitouts and art in communal spaces to level up the lived experience for students. PHOTO: Lisa Cohen
The FF&E business was the first of its kind, with a focus on Australian-made products, good design, and a vision for shaping the world we live in.
“If you tip a building upside down and shake out all the things we put inside them, they’re what makes the lived experience. Nobody notices if you use a cheaper paint or a lesser tap fitting. But if you put an uncomfortable bed in a hotel that will be remembered.
“When I started the business, nobody knew what FF&E was. It’s a specialist area like any consultancy but it dictates the way a place feels. It’s not just about putting products in a room and ordering 20 TVs. It’s that emotional connection you have with a space or a place. We straddle that place between design and commercial reality.
“It’s a comprehensive end-to-end solution for design, manufacturing, procurement and logistics, and we don’t want it to be an afterthought that is value-managed out of a project. It is critical.”
Elenberg says in the beginning they would design and make furniture and fittings and provide furniture packages but they have moved away from that now.
“In our early days we were working with developers managing their risk to fit out fully furnished apartments. They would get better yields having fully furnished properties.
“Over time we just moved with the market.”
Moving with the times included major hotel fitouts across Asia, including Vietnam and Malaysia, and the establishment of an office in the Middle East, which closed in 2008 as Elenberg juggled motherhood and a multi-national business.
▲ Move-in has been very active in the hotel space internationally and recently completed the FF&E for Sebel Silverwoods. PHOTO: Cox Architecture
While Australian projects across the eastern seaboard are the major focus for Move-in now, Elenberg says it’s “extraordinary” what she and her small team based in Melbourne’s Fitzroy are achieving.
Elenberg’s team includes designers and logistics experts, which she believes sets them apart from others in the burgeoning industry.
Circular economy is something that is on Elenberg’s radar as she looks to the future of the industry. Move-in recently inked a deal with You Matter, a support service, which helps to fit out properties for women fleeing domestic violence.
Elenberg says they strategically over-order for projects and the surplus sits in a warehouse until warranty is done. She says this program enables them to divert products from landfill.
“There’s lots of people out there in need and then there’s lots of land fill,” she says.
“Circular economy is something that we are constantly thinking about in our space. We just donated nearly 400 products at the beginning of this year.”
They also look to adopt products that can have a second life when they cycle out of hotels and other spaces.
“We try to choose high-quality products so we know where they have come from and how they can have a second life, whether that’s through recycling or repurposing,” she says.
“We like to give our clients the option to buy locally and there has been a shift towards it because the prices of products have increased and the shipping costs have blown out significantly.
“Even if it’s not everything, but a few pieces, it is supporting local manufacturers and businesses.”
▲ The build-to-rent sector is emerging as a growth area for the FF&E industry according to Elenberg. Move-in completed the fit out of Home Richmond (pictured). PHOTO: RotheLowman
Elenberg says the purpose-built student accommodation developers were the most proactive in supporting local designers and sustainability initiatives.
“It’s a really interesting market, they’re game-changing leaders in that space. They have a big focus on design and fit out of big communal spaces in their developments and are commissioning artists to create pieces for their developments.
“The common spaces and areas are where life happens and there’s a lot of thought that goes into that. No longer are they cheaply priced prison cells.”
Elenberg says the blossoming build-to-rent market was a growth area for Move-in and also had a vested interest in quality fit outs.
Reflecting on 21 years of business Elenberg says while the colour schemes and fashions have shifted significantly, the drive to create beautiful, liveable spaces and help developers to bring their vision to life was what continued to drive her.
“I want Move-in to be synonymous with great FF&E and amazing spaces.”
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Finance advisory specialists Hutcheon Mearns is diversifying and expanding its core business activities with the launch of Hutcheon Mearns Real Estate, a new service line which will provide clients with independent advice and expertise on their commercial property portfolios.
It will be headed up by Iain Landsman, a well-known name in the Scottish property sector, who joins the company as Director, moving from his previous role as a director with global property consultant CBRE.
In his new role, Mr Landsman will lead the development of Hutcheon Mearns Real Estate, using his 15 plus years’ experience in the Scottish property market to position the new company at the forefront of real estate advisory, while creating value for clients through strategic advice and deal execution.
During his career, he has been involved in some of the highest profile transactions in the Scottish market working with a range of key clients across different sectors.
The opening of this new business line is seen as a natural progression in Hutcheon Mearns’ growth strategy, which focuses on identifying and implementing innovative ways to support its clients through its range of services.
It is seen as a clear next step following the establishment of Hutcheon Mearns’ deals advisory business in 2018 to provide support on M&A and transaction due diligence.
“Property tends to be a significant area of consideration for any M&A transaction – whether that is in relation to owned or leased properties.
“Our teams have day to day conversations with business owners, CEOs and finance directors who often have property issues they need support with,” said Adam Maitland, Managing Director of Hutcheon Mearns.
“The establishment of Hutcheon Mearns Real Estate provides a valuable link between deals advisory and property advisory, so that we will now be able to provide another area to optimise shareholder value in transactions.”
Mr Landsman said: “Business owners need to consider property matters ahead of any potential business sale.
“That means there is a clear need in the market for a service such as this which can provide clients with independent, expert real estate advice to ensure they safeguard and maximise their investments in property as part of a transaction process.
“This will create a much more seamless and far less complicated transaction for clients before, during and after an M&A process. Prior to this, they would have had to outsource the services of a surveyor, but now they can access all the information, advice and support they need from a single source.”
In addition to providing real estate advice to companies engaging in business transactions, Hutcheon Mearns Real Estate will provide a full range of property services across the commercial real estate sector.
Hutcheon Mearns Real Estate will be based at 21 Mid Stocket Road, Aberdeen.
Visit www.hm-re.co.uk for further information.
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A RESIDENT of Keith has decided to take the plunge and start a new business after more than half a decade working as an estate agent.
Tracy MacDonald, originally from Inverness, worked for Purplebricks Estate Agents for five years.
However, she has decided to go it alone with her new business ‘Grange Estate Agents’ after identifying a gap in the market in the Moray village.
“I’ve set up my new estate agent business in Keith as I felt there was a gap in the market for an independent trader here,” Tracy said.
“I have five years of experience working with Purplebricks and over that time I’ve built up a really good working knowledge of Keith and the surrounding areas including the local property market.
“Being a fully accredited estate agent makes me a bit different from a property assistant who really only show houses.”
Having only opened for business in February, Tracy says she has already secured clients and is looking forward to building on her positive start.
She added: “I already have some clients on my books and am really looking forward to building the business and helping both sellers and buyers realise their dreams.”
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Vishwanath Suresh appointed as Director (Commercial) of NMDC Ltd
New Delhi: The Appointments Committee of the Cabinet (ACC), headed by the Prime Minister, on Tuesday approved the appointment of Vishwanath Suresh for the post of Director (Commercial) of NMDC Limited, a Navratna PSU under the Ministry of Steel.
According to an order issued from the Department of Personnel & Training (DoPT), Suresh has been appointed Director (Commercial) of NMDC for a period of five years with effect from the date of his assumption of charge of the post, or till the date of his superannuation, or until further orders, whichever is the earlier. Presently, he is serving as Executive Director (Coal Imports and Corporate Materials Management) in Steel Authority of India Limited (SAIL).
Earlier, Suresh was recommended for the post of Director (Commercial) of NMDC Limited by the Public Enterprises Selection Board (PESB) panel on November 28, 2022. He was selected from a list of seven candidates, who were interviewed for the position.
Suresh is an MBA (Marketing) from the National Institute of Technology (NIT), Rourkela. He has been associated with SAIL for more than three decades.
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MORAY Council is asking local businesses to complete an online survey to study the commercial property market in the region.
The study aims to analyse current and future demand for commercial property in Moray. This will be used to help plan future provision, including within the new Local Development Plan and potential future investment.
As well as existing local businesses, the local authority is keen to find out the views of those interested in setting up in Moray, including commercial tenants, leaseholders, property owners and key stakeholders.
The short, five minute survey is being undertaken by Ryden LLP on behalf of the council with a deadline of March 8.
Chairman of the council’s planning and regulatory services committee, Councillor David Gordon, said: “Our aim is to ensure there’s property available to meet the needs of a thriving and prosperous economy in Moray.
“To do that we’re particularly interested in anticipated demand for office and industrial space in the region.
“This is a fantastic opportunity for our business community to help shape the future of Moray’s economy and so we can plan strategically for that. I’d encourage all businesses, anyone considering starting a business or bringing one to Moray to complete the survey.”
Only one survey per businesses/individual should be completed and it can be found online here.
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Rent control in Queensland could have a very different impact on the market than intended, according to the Real Estate Institute of Queensland.
The institute’s chief executive Antonia Mercorella said such a policy could in fact make the situation worse.
“We are acutely aware of the devastating impacts of the rental crisis and against that backdrop, it’s understandable that some tenants’ advocates are proposing rent control as a solution but rent control is not the panacea that many argue it to be,” Mercorella said.
“Rent control is a short-sighted solution to a complex problem and could in fact significantly deter property investment and reduce rental supply at a time when we’re already in a rental crisis.”
Concerns around housing affordability, availability and the cost of living have prompted calls for a rent-control policy in Queensland.
Calls for rent increases to be tied to inflation plus 10 per cent and limited to once a year were made last week by advocacy groups Tenants Queensland and the Queensland Council of Social Services.
It means asking the state government to intervene in the private rental market.
Median rents have risen 80 per cent at Gladstone, 51 per cent at Noosa and 33 per cent on the Gold Coast since 2018 with Brisbane’s house and unit rents increasing by 33 per cent and 23 per cent respectively prior to the pandemic.
The data is tracked quarterly by the Residential Tenancies Authority in Queensland.
“Unless we limit rent increases, hardworking Queensland renters will continue to be put at risk of homelessness and subjected to opportunistic rent increases in a hot market,” Tenants Queensland chief executive Penny Carr said, estimating that 30 per cent of renters would be protected by a rent control policy.
Mercorella is concerned rent control will mean property investors will not have the ability to pay their own bills with their rental income limited, potentially scaring investors off the market and limiting the already diminished rental supply further.
“It’s unsustainable to assume property investors will keep meeting free-market-driven cost increases such as mortgage repayments, rates, repairs and maintenance, and insurance, while artificially capped rents create a hard limit on their return to cover such expenses,” Mercorella said.
“Given regular mum and dad property investors provide the vast majority of housing for our state’s rental community, with the government’s social housing supply program accounting for under 4 per cent, it needs to be recognised that the contribution of property investors to housing Queenslanders is vital.
“If even a small percentage of investors were to sell their properties or withdraw them from the permanent rental market, this would have a material impact on the Queensland rental sector.”
▲ Rents across Queensland have increased significantly since the pandemic began with the amount of rental housing available slowly declining.
Mercorella said the state government needed to intervene to address the housing supply issue.
“This is not a problem that has emerged overnight and while Covid has had a role to play, the number of dwellings being built in Queensland has diminished considerably over the last five years and our future pipeline is also likely to fall short of demand,” she said.
“Until we are able to achieve a greater balance between the demand for rental housing and supply, and introduce greater diversity of housing, we won’t be able to fix this critical problem we are facing.
“What’s needed is a concerted effort from all levels of government to create the right environment to sustain existing established rental stock and to build new housing each year that matches targets based on detailed population forecasts.”
The rental housing crisis has hit people hard with an Australian Housing and Urban Research Institute report finding that renters are 125 per cent more likely to enter housing stress than homeowners.
It also found that renters are less likely to recover from it within the first year with a probability of doing so at only 39.4 per cent.
“Renting is much more insecure than homeownership,” UNSW’s City Futures Research Centre deputy director, Hazel Easthorpe, said.
“It’s a particularly insecure tenure in Australia, more so than in many other countries, because of our limited protections for renters, including allowing no-grounds terminations and unlimited rent increases.”
Housing stress occurs when a person in the bottom 40 per cent of income distribution is spending more than 30 per cent of their before-tax income on housing, something that is more likely to occur as the cost of living increases.
One of Far North Queensland’s most lavish island resorts has come to market again—the third time in seven years.
Fitzroy Island Resort, which is the only resort on the 339-ha island about 30km of the coast of Cairns, is for sale for a reported $35 million.
Colliers is marketing the resort ,which sits on 4.4ha of beachfront land in the Great Barrier Reef Marine Park.
Property developer Doug Gamble acquired the island in 2010 for $8 million and has tried to sell it twice before.
It failed to sell for $30 million in 2016 and went on sale again less than three years later.
Colliers Head of Hotels Australia Karen Wales said the property represented the perfect combination of a profitable, income generating business with value add repositioning opportunities in an irreplaceable location.
“Fitzroy Island is one of the most unspoiled islands on the Great Barrier Reef providing any traveller with pristine Australian natural beauty at their doorstep,” Wales said in a statement. “The resort operates a range of sustainability programs and initiatives to engage purposefully in the circular economy.”
The resort boasts 93 studios and suites, as well as 13 beachside cabins. There is a separate staff village with 61 rooms.
It has a beachfront restaurant and bar, two pools, swim up bar and three function rooms. On the island itself there is a general store, games room, kids soft play area and dive shop, as well as anchorage for six boats and a 190-seat catamaran service which operates daily transfers to Cairns.
▲ It is the third time the owner has tried to sell the 106-room resort in seven years.
Colliers said Australia’s accommodation industry has recovered faster in 2022 than was originally anticipated. The leisure markets recorded strong gains as holiday travel underpinned the recovery. Hotels in Cairns recorded a daily rate growth of 44.7 per cent on pre-pandemic levels.
Colliers said Fitzroy Island Resort had occupancies of 79.4 per cent in 2022, compared to 72.6 per cent in 2019.
“The announcement in December that Virgin Australia will commence daily services between Cairns and Tokyo is a massive boost for the region with more international routes and passenger traffic expected as global tourism recovers,” Colliers Cairns managing director Stacey Quaid said.
Queensland island resorts have seen a flurry of sales and acquisitions by the ultra-rich in the past 18 months.
In May last year, Sydney hotelier Glenn Piper bought the Hook Island Lodge leasehold.
Annie Cannon-Brookes, wife of tech billionaire Mike, bought the abandoned tropical island resort of Dunk Island in July.
And then in November, Lindeman Island was purchased by Queensland property developer Shaun Juniper, with plans to transform the former Club Med site into a six-star luxury health retreat.
A year earlier, Andrew ‘Twiggy’ Forrest and his wife Nicola’s private investment company Tattarang splashed $42 million for Lizard Island.
Fitzroy Island Resort is being offered for sale by an international expressions of interest campaign closing March 14.
The City Council approved contracts totaling $374,469 as part of Monday’s consent calendar.
The calendar, which can be approved by a sweep motion, on one $204,525 contract to Sloan Vazquez McAfee for compliance verification review of commercial waste haulers. The City has been hiring consulting firms to conduct compliance reviews of franchise commercial haulers since 1999. These reviews ensure franchise commercial haulers’ compliance with the non-exclusive solid waste franchise agreement, administrative rules and regulations, and all federal, state or local laws and regulations applicable to the operation of the franchise system.
The City council also adopted a resolution to approve Final Parcel Map No. 083256 for the subdivision of three City-owned existing parcels into two parcels. The subject subdivision is located at 685 E. Union St. on the north side of Union Street between Oak Knoll Avenue and El Molino Avenue. Two of the parcels shared an address of 701 E. Union St., the site of the demolished Banner Bank Building, purchased by the City for creation of open space.
The third parcel was the City-owned surface parking lot located at 100 N. El Molino Ave. Two lots would be created as a result of the subdivision of the existing three lots.
The City Council also a $169,944 contract with Golden Sun Enterprise for Jefferson School Pickleball courts project.
Currently in Pasadena, there are ten pickleball courts: four at Allendale Park, four (two dedicated and two joint-use with tennis) at McKinley School and two joint-use (with basketball) at McDonald Park. Two additional courts are scheduled to be constructed at Vina Vieja in FY 2024. In an effort to increase the number of pickleball courts, staff explored other potential locations throughout the City.
Jefferson Elementary School, located at 1500 East Villa Street, was identified for the addition of two temporary pickleball courts. The City is leasing the Jefferson School site from Pasadena Unified School District through November 30, 2027 for the purpose of hosting Library, Police and Fire Departments programs. The site can also accommodate two temporary pickleball courts that can be used by the public throughout the duration of the City’s lease.
A resolution was approved establishing four new classifications and salaries and updating salaries of five existing classifications, including deputy city manager, business systems analyst, film program coordinator, film coordinator, power resource planning manager, power resource planner I, power distribution supervisor-electrical test and construction.
The council also approved a resolution of intention to renew the Pasadena Tourism Business Improvement District. The PTBID is a benefit assessment district proposed to continue as a revenue source to help fund marketing and sales promotion efforts for Pasadena lodging businesses. The renewed PTBID includes all lodging businesses, existing and in the future, located within the boundaries of the City of Pasadena. The PCOC and Lodging business owners decided to pursue renewal of the PTBID in order to continue a revenue source devoted to marketing Pasadena as a tourist, meeting and event destination. If renewed, the PTBID would generate approximately $5,250,000 in its initial year for the promotion of travel and tourism specific to Pasadena and continue to fund the Pasadena Convention & Visitors Bureau and to support the sales and marketing efforts of the Rose Bowl Stadium.
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In 2021, the Mt Hotham snow season lasted just four days.
“We knew we were done,” Mt Hotham’s chamber of commerce president Steve Belli said. “So we just shut up shop and rode it out.”
This, after trading lasted just two days in 2020.
But while the issue then was Covid and the restrictions around the pandemic, a different, albeit related, issue is threatening this season—key worker housing.
“There are businesses this year that cannot find a single bed for their staff,” Belli said.
“Existing shortfalls were made worse by Covid because people sold property as other people moved into the area to isolate because the rules weren’t as severe as they were in Melbourne.
“So they bought here and those properties came out of the long-term rental market.”
It means key worker accommodation options are now restricted to short-term rentals as the returns are greater. For businesses looking for workers across months not weeks, finding suitable, affordable accommodation for staff is becoming mission impossible.
But there is a glimmer of hope for the snowfield town with Altiset Property, the alpine development arm of Melbourne’s Grollo family, buying the Mt Hotham airport and indicating that it wants to build key worker housing on part of the 105ha site.
US mountain resort company Vail Resorts sold the airport to Altiset for $6.75 million. The Colorado-based Vail built the airport in 1999 for $17.5 million.
The airport component of the site is just 40ha, crucially leaving a considerable parcel of flat land around it for development, a rarity in the area.
▲ Vail Resorts bought the Mt Hotham and Falls Creek resorts for $174 million in 2019.
The Alpine Shire is looking at other answers to the shortages, but it may take some time.
“We’re looking at industrial-zoned areas being rezoned to allow accommodation for staff, but it’s not going to happen this season,” Belli said.
“So it was very welcome news when we heard that Grollo was going to look at putting some staff accommodation down there.”
Vail Resorts said it was keen to sell the site to a buyer with experience in alpine development and business.
“The plans Altiset Property has for environmentally sustainable multi-function key worker and affordable group housing opportunities is another first of its kind in the Victorian Alpine Region,” Vail Resorts’ Mount Hotham Skiing Company general manager, Nathan Butterworth, said.
▲ The rarity of developable land in the alps means such sites are hotly contested.
Grollo has development projects at Mt Hotham, including a four-chalet project and several residential and hotel projects at Mt Buller.
It also has other hotel and ski operations and infrastructure assets under its family group.
While some businesses already have their own worker accommodation, others are taking matters into their own hands.
“Some businesses have actually bought existing lodges to meet their requirement,” Belli said.
“This is a good Band-Aid fix but not a good long-term fix because it takes beds out of the tourist market … so it has a consequence at a later stage.
“But there’s no other choice at this point and that is what’s driving these businessed to buy their own properties to house their staff.”
Grollo has indicated that designing and planning the key worker accommodation village will cost around $1 million and could take up to two years.
▲ Hotham Airport is the highest commercial airport in Australia.
At 1298m above sea level, Hotham Airport is Australia’s highest commercial airport and that makes building a challenge at the best of times, let alone as the construction faces rising costs and workforce shortages.
“It is more expensive to build up here anyway,” Belli said.
“Transport costs are higher and you’ve also got fire ratings and other ratings costs as well.
“And just generally, as we all know, the cost of living has gone up and the cost of goods and materials are all pretty expensive now, so building costs have gone up exponentially.”
While Mt Hotham had a record season in 2022, this coming season could well be a struggle.
Last year until mid-July, Mt Hotham’s visitor numbers had reached 76,800, more than double the 10-year average of 31,594, with visitor days also more than doubling the 10-year average of 85,031 with 188,386.
“A lot of those people had properties up there or were members of clubs,” Belli said.
“They couldn’t get up there for two years so there was pent-up demand.”
Belli said that the issue was not restricted to Mt Hotham but rather was widespread.
“It’s not just unique to resorts; most tourist towns in Australia have some sort of similar issues,” he said.
“But it’s just the resorts are really down to zero available accommodation.”
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