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Credit card debt will jump 2% in January, following a Christmas consumer spending binge, financial comparison website Rate City predicts.
It predicts credit card providers will earn an extra $10.7 million in credit card interest payments over January.
It says the average credit card interest rate is around 17%.
“On average, January is the month where Aussies stack on the most credit card debt and it’s a good bet they’ll be higher again in January 2014 – for a start, there are over 200,000 more credit cards on issue than there were last Christmas,” Alex Parsons, chief of RateCity.com.au says.
“Interest rates on credit cards remain very high at around 17% on average, and range up to 22.99%, so consumers who carry debt should look at switching to get a better deal.”
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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awalsh-7Ub9EypybQ

Credit card debt to jump 2% in January

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Premier Campbell Newman turned the first sod on the new Toowoomba Ring Road today.
The Victoria Street extension is the final link in Toowoomba’s Outer Circulating Road system and involves the construction of a new four-lane road to connect Victoria and Russell Streets with Chalk Drive and Ruthven Street.
“Construction of a new Toowoomba ring road will better protect the CBD from floods and make it easier to get from one side of the city to the other,” Newman says.
“The Toowoomba Regional Council will receive $45 million and a further $5 million for flood mitigation works on the West Creek Railway Bridge through our Government’s landmark Royalties for the Regions program.”
It should be open to traffic by the end of 2014.
Flood mitigation measures include the construction of a three span bridge and widening of the creek channels in the area.
The Outer Circulating Road Victoria Street extension project includes
•             A new four lane sub-arterial road extending Victoria Street from Russell Street through Queensland Rail land to connect with the Chalk Drive-Ruthven Street intersection, including a major three span bridge over the West and East creeks;
•             An upgrade of the Russell-Victoria Street intersection, including an upgrade of the existing Russell Street drainage structure;
•             An upgrade of the Ruthven Street-Chalk Drive intersection and an upgrade of West Creek channel; and
•             Widened shoulders for cyclists, and a separate footpath for pedestrians on the new section.
 
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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Toowoomba ring road construction starts

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Overseas Asian buyers in the Gold Coast accounted for a quarter of all sales in October for Ray White Surfers Paradise, clocking up $21.5 million over 46 sales.
Most buyers came from China with additional interest from Malaysia and Singapore.
Most sales were close to universities and schools or central to tourist hubs of Surfers Paradise and Broadbeach.
The group is currently in negotiations for a further $200 million in sales to Asian buyers, including a number of development sites.
Chief of Ray White Surfers Paradise Andrew Bell says the lifestyle of the Gold Coast attracted Asian buyers ahead of cities like Brisbane.
“Lifestyle is also a factor and is probably the main reason the Gold Coast is outstripping Brisbane’s performance in attracting Asian buyers,” Bell says
“A large proportion of Asian buyers also invest with a view to sending their children here to attend university, college or an English language institution.
“Many Australians mistakenly think Asian buyers will pay a premium for property which is rarely the case, but the great benefit to sellers is they are cash purchasers who aren’t dependent on bank finance or valuations.”
There were a number of sales to Asian buyers in high-end developments including the loss-machines <a href="https://www.propertyobserver.com.au/queensland/hilton-surfers-paradise-resale-price-collapse-for-but-one-exiting-property-investor/2013082164115">Hilton Surfers Paradise</a> and <a href="https://www.propertyobserver.com.au/news/poor-fortune-for-those-who-went-to-the-oracle-on-the-gold-coast/2013082664548">Oracle</a> as well as The Glades at Robina and The Address at Sanctuary Cove.
RELATED READING: <a target="_blank" href="https://www.propertyobserver.com.au/news/why-australia-must-deepen-its-asian-investment-relationships/2013112366455">Why Australia must deepen its Asian investment relationships</a><a target="_parent" href="/news"> Asian investors keen on Australian inner-city units: Peter Chittenden</a>
awalsh@propertyobserver.com.au 
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Asian buyers make up a quarter of buyers in Gold Coast

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More than 22% of residential properties in Southbank and 11% in Docklands are potentially vacant, according to a survey which monitors water usage.
Across Melbourne there are more than 75,000 potentially vacant properties, according to a report commissioned by social justice organisation Prosper.
Data from Melbourne’s water retailers show 4.4% of Melbourne properties used an average of less than 50 litres of water a day and 0.9% consumed no water for the 2012/2013 financial year.
In July last year a similar report found a vacancy rate of 5.9%. Then Essendon North and Docklands were the most vacant suburbs.
The average resident used 161 litres per day over the same period 2012/13 and the average household used approximately 419 litres per day.
“Landlords have an incentive to withhold properties from the rental market as they profit from rising capital values rather than from long-term rental income,” the report titled Speculative Vacancies in Melbourne 2013 says.
“A substantial land value tax would blunt capital appreciation and serve as a withholding cost, shifting the incentive to profit from rental income rather than capital gain.”
The report says a water leak could be enough to push a property above the cut-off point of 50 litres.
Occupied properties with very low water usage (such as single tenants who frequently travel), properties on the market (both rental and sale), and serviced apartments may dip below the threshold.
But these are counter-balanced by apartment blocks using a single water metre which would hide many unoccupied properties.
The report calls into question the figures published by the Real Estate Institute of Victoria.
“The REIV uses a fragmentary and unreliable rental dataset to calculate vacancy rates. The methodological issues provide, at best, inaccurate findings, and, at worst, severely understated vacancy rates,” it says.
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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Water usage reveals high vacancy rates in Southbank and Docklands

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House sizes increased half a percent a year since 2001, five times the rate of apartments, according to RP Data.
The average area of a new house across Australia increased from 227.50 square metres to 241.10 square metres from 2001 to 2013.
<img alt="housesizes" height="288" width="470" src="/images/stories/2013/11/18/housesizes.jpg">
Over the same period the average floor area for apartments and townhouses increased from 132.6 square metres to 133.9 square metres – an annual growth rate of 0.1%.
But according to data released earlier this week by the Australian Bureau of Statistics the average floor area of a new home is now starting to fall.
Since 2008 the average floor area of a new house has fallen from 247.7 square metres to 241.1 square metres.
The average size of other new residential properties peaked much earlier in 2004 at 143.4 square metres and has since fallen to 133.9 square metres.
RP Data research analyst Cameron Kusher says the fall comes from escalating vacant land costs, smaller lot sizes and affordability pressures.
“The result of escalating prices and a reduction in land area is that buyers pay a lot more and in return, get significantly less land. This is highlighted by the fact that the median rate square metre of vacant land has lifted from just $86 per square metre in 2000-01 to $361.40 square metre in 2012-13 (an increase of 12.7% per annum),” Kusher says.
“As vacant land costs continue to increase, it is no wonder that the size of new houses has started to reduce. The cost of buying or building a new house is becoming restrictive. In response developers and builders are reducing lot and house sizes in order to provide houses at more affordable price points.”
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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House sizes falling after decade-long rise

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Leighton Properties has sold a North Sydney development site to Singaporean investment group Suntec Real Estate Investment Trust for $413.19 million.
Leighton Group will take a head lease over 76% of the office space at 177 Pacific Highway, a 30-storey 40,000 square metre commercial development.
The deal was negotiated by Paul Noonan and Simon Storry of Jones Lang LaSalle and Josh Cullen and Richard Butler of CBRE.
It’s the first major commercial development in North Sydney in six years in an area increasingly dominated by residential conversions.
Leighton are aiming for a five star Green Star and five star NABERS energy rating.
“It is a strategic fit with Suntec REIT’s portfolio of high quality commercial assets. We are excited about partnering with Leighton on this project which will be their corporate headquarters in Sydney. We look forward to its completion in early 2016,” Suntec REIT chief Yeo See Kiat says.
Suntec REIT is Singapore’s second largest listed SREIT by asset under management.
Suntec’s current portfolio includes ccommercial properties in Suntec City, Park Mall, a one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.
Leighton Holdings chief Hamish Tyrwhitt says the site was keenly sought after by local and international buyers.
“(The sale) is testament to the building’s design and it is in line with our strategy to align with key investors and efficiently use our capital through pre-selling developments,” Tyrwhitt says.
<a href="mailto:awalsh@propertyobserver.com.au" target="_blank">awalsh@propertyobserver.com.au</a>
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Leighton Properties sells North Sydney site to Singaporeans for $413 million

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Gross rental yields have decreased to the point where it’s cheaper to rent than to buy this year according to SQM’s latest index, which measures implied gross rental yields.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/11/15/sqm-nov-15-chart-big.gif" rel="shadowbox"><img src="/images/stories/2013/11/15/sqm-nov-15-chart-small.gif"></a>
The new index looks at rents before costs such as agent fees, council fees, maintenance and taxes divided into the median sale price for the locality.
It finds there has been a moderate decline in yields for houses over the course of this year while unit rental yields have remained stable.
In Sydney rental yields have been falling as house prices rapidly increase.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/11/15/sqm-nov-15-chart-two-big.gif" rel="shadowbox"><img src="/images/stories/2013/11/15/sqm-nov-15-chart-two-small.gif"></a>
Rental yields for houses in Sydney is about 3.7%, and 4.5% for units.
“They are actually very tight yields and would suggest to us that in Sydney at least, it’s cheaper to rent right now than to buy when just considering year one cash flows,” SQM’s Louis Christopher says.
Darwin has the highest capital city yields with yields for both houses and units at 5.5%.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/11/15/sqm-nov-15-chart-three-big.gif" rel="shadowbox"><img src="/images/stories/2013/11/15/sqm-nov-15-chart-three-small.gif"></a>
“Yields in Darwin may well rise in the future as right now we are recording rising rents for that city, while it seems dwelling prices have stalled of late,” Christopher says.
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Cheaper to rent than to buy in Sydney: SQM

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The Victorian government has allocated $250,000 to assist the City of Wodonga’s plan for the Leneva-Baranduda growth corridor.
Wodonga hopes to build houses for an additional 35,000 people, with 14,000 new homes. It also hopes to create 6000 jobs in the area.
The extra funding pay for the structure planning of the  Leneva growth area and the implementation of a new urban growth  zone for the area.
“The Leneva growth corridor will support economic growth and development  in the region and greatly assist in supporting the commercial development  of Wodonga’s CBD, where there is already a major urban renewal project  underway,” Minister for Planning Matthew Guy said.
The growth area will eventually link the urban areas of Wodonga to Baranduda.
Member for Benambra Bill Tilley said development of the Leneva growth corridor is vital to maintaining a strong local construction and development sector and local job growth.
“As the local member of parliament, I am proud to see that this government  is doing all it can to continue strong growth and demand in our local  construction and development sectors which is central to maintaining a  strong and competitive local economy.”
 
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Victorian government injects $250,000 into Wodonga growth area planning

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The four most discounted properties in Australia were in Queensland this week, according to SQM Research.
A dilapidated three bedroom outer Ipswich Queenslander is this week’s most discounted property.
It comes on 1.49 hectares of land and backs onto the Bremer river which overflowed in 2011 and flooded the house.
Agent Tony Tran from Ray White Darra says it would cost $20,000 to bring it up to a liveable condition and the true value of the property lies in land and river frontage. The address is <a href="https://www.realestate.com.au/property-house-qld-bundamba-111116347" target="_blank">22 White Street Bundamba</a> (pictured below).
It’s currently priced at $249,000 – a discount of 41% from its original listing price 461 days ago.
{yoogallery src=[images/stories/2013/11/15/bun]}
 
Next is a two bedroom house at <a href="https://www.realestate.com.au/property-house-qld-lamb+island-112206275" target="_blank">4 Edgewater Place Lamb Island</a> (pictured below).
Originally priced at $425,000 three years ago it’s now priced at $249,000 – also a discount of 41%.
{yoogallery src=[images/stories/2013/11/15/lamb]}
 
Next is the nearby three-bedroom house with a spa at <a href="https://www.realestate.com.au/property-house-qld-lamb+island-104666603" target="_blank">79 Perulpa Drive Lamb Island</a> (pictured below).
It comes with views over Moreton Bay.
Originally priced at $499,000 three years ago it is now at $298,000 – a 40% discount.
{yoogallery src=[images/stories/2013/11/15/lamb2]}
 
Next is <a href="https://www.realestate.com.au/property-house-qld-doolandella-115195015" target="_blank">38 Cloverdale Road Doolandella</a> (pictured below) –a four bedroom house.
It has 1.34 hectares of land, two bathrooms, two car ports, and a big shed.
Nine months ago it was priced at $1.65 million but that’s been reduced by 39% to $1 million.
{yoogallery src=[images/stories/2013/11/15/don]}
 
And fifth is <a href="https://www.realestate.com.au/property-house-nsw-copacabana-114538531" target="_blank">61 Vista Avenue in Copacabana</a> (pictured below) near Woy Woy.
According to SQM Research it was initially listed for $1.79 million eight months ago and was this week listed at $1.1 million –a difference of 39%. It has since sold.
{yoogallery src=[images/stories/2013/11/15/cop]}
 
Property Observer notes the listing is divided in two sections, <a href="https://www.domain.com.au/Property/Sold/House/NSW/Copacabana/?adid=2010302238">one with a house</a> and <a href="https://www.realestate.com.au/property-house-nsw-copacabana-114538531">one with a granny flat</a>, which may account for the price difference.
{module Which of the top five most discounted properties represents the best buying opportunity?}
Top 10 most discounted properties nationwide
<table border="0" cellpadding="0" cellspacing="0" style="width: 470px;">
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<col width="179">
<col width="113">
<col width="64">
<col width="83">
<col width="81" span="2">
<col width="64">
<col width="98">
</colgroup>
<tbody>
<tr height="35">
<td height="35" width="179">Address</td>
<td width="113">Suburb</td>
<td width="64">Postcode</td>
<td width="81">Initial price</td>
<td width="81">Now asking</td>
<td width="64">Reduction</td>
<td width="98">Days on Mkt</td>
</tr>
<tr height="21">
<td height="21"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-bundamba-111116347">22 White Street</a></td>
<td>Bundamba</td>
<td align="right" width="64">4304</td>
<td align="right" width="81">$425,000</td>
<td align="right" width="81">$250,000</td>
<td align="right" width="64">41%</td>
<td align="right" width="98">461</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-lamb+island-112206275">4 Edgewater Pl</a></td>
<td>Lamb Island</td>
<td align="right" width="64">4184</td>
<td align="right" width="81">$425,000</td>
<td align="right" width="81">$249,000</td>
<td align="right" width="64">41%</td>
<td align="right" width="98">1190</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-lamb+island-104666603">79 Perulpa Dve</a></td>
<td>Lamb Island</td>
<td align="right" width="64">4184</td>
<td align="right" width="81">$499,000</td>
<td align="right" width="81">$298,000</td>
<td align="right" width="64">40%</td>
<td align="right" width="98">1176</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestate.com.au/property-house-qld-doolandella-115195015">38 Cloverdale Road</a></td>
<td>Doolandella</td>
<td align="right" width="64">4077</td>
<td align="right" width="81">$1,650,000</td>
<td align="right" width="81">$1,000,000</td>
<td align="right" width="64">39%</td>
<td align="right" width="98">266</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/Sold/House/NSW/Copacabana/?adid=2010302238">61 Vista Avenue</a></td>
<td>Copacabana</td>
<td align="right" width="64">2251</td>
<td align="right" width="81">$1,790,000</td>
<td align="right" width="81">$1,100,000</td>
<td align="right" width="64">39%</td>
<td align="right" width="98">245</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.toop.com.au/details.asp?id=14586">Lot 106 Starrs Gully Road</a></td>
<td>One Tree Hill</td>
<td align="right" width="64">5114</td>
<td align="right" width="81">$2,200,000</td>
<td align="right" width="81">$1,390,000</td>
<td align="right" width="64">37%</td>
<td align="right" width="98">791</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/For-Sale/Penthouse/NSW/Bondi-Junction/?adid=2008805959">69/267 - 269 Oxford St</a></td>
<td>Bondi Junction</td>
<td align="right" width="64">2022</td>
<td align="right" width="81">$2,500,000</td>
<td align="right" width="81">$1,650,000</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">994</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.realestateview.com.au/Real-Estate/157-milleara-road-keilor-east/Property-Details-buy-residential-3989721">157 Milleara Road</a></td>
<td>Keilor East</td>
<td align="right" width="64">3033</td>
<td align="right" width="81">$448,000</td>
<td align="right" width="81">$296,000</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">531</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/?adid=2008522518">134 Bay Road</a></td>
<td>Berowra Waters</td>
<td align="right" width="64">2082</td>
<td align="right" width="81">$1,199,000</td>
<td align="right" width="81">$795,000</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">1169</td>
</tr>
<tr height="20">
<td height="20"><a target="_blank" href="https://www.domain.com.au/Property/?adid=2009224257">55 William Street</a></td>
<td>Sedan</td>
<td align="right" width="64">5353</td>
<td align="right" width="81">$165,000</td>
<td align="right" width="81">$109,500</td>
<td align="right" width="64">34%</td>
<td align="right" width="98">784</td>
</tr>
</tbody>
</table>
<a href="mailto:awalsh@propertyobserver.com.au" target="_blank">awalsh@propertyobserver.com.au</a>
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Queensland dominates list of most discounted properties

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Buyer’s agent Miriam Sandkuhler, founder of <a target="_blank" href="https://www.propertymavens.com.au/" rel="nofollow" style="font-size: 14px;">Property Mavens</a>, says many early-stage investors don’t understand their risk profile when they start building their folio. Sandkuhler was a finalist for the 2013 REIV Buyer’s Agent of the Year.
She says more risk adverse clients should avoid off-the-plan properties, as well as student or holiday accommodation.
{qtube vid:=m3cXd9A1li0}
“People don’t understand their tolerance to risk in terms of the type of return they’re going to get,” Sandkuhler told Property Observer for the 'How the experts buy' series.
“A high risk profile person would be someone who’s prepared to develop a property or renovate. Someone who’s more conservative and low risk is someone who’s otherwise more likely to leave their money in the bank or pay for a property in cash because they don’t like debt.”
She says buying off the plans comes fraught with risk.
“They’re to do with whether the developer gets financing, whether they’re a good builder, time frames of the development,” she says.
“It depends on the zoning of the property, if you have student accommodation or short stay accommodation that can have a level of risk.
“It means that the market from a resale point of view is a lot smaller and from a lending or a finance point of view you may not be able to borrow as much money so you’ll have to have a much bigger deposit to get into it.”
She says many investors are enticed by the idea of having as big a property portfolio as possible.
“Having multiple properties you have to manage multiple properties and there are maintenance issues that come with that.”
“If all you need are six really really good properties of a certain value then that’s all you need.”
 
Transcript
My name is Miriam Sandkuhler. I’m the founder of <a target="_blank" href="https://www.propertymavens.com.au/?">Property Mavens</a> which is a specialist property advisory firm. I’m an accredited property advisor and a licensed estate agent. And I basically work with investors to ensure they buy the right type of property for the right reasons.
People don’t necessarily know their tolerance to risk in relation to the type of return they’re going to get. Some people are much more conservative with investing than others. Some have got quite a low to moderate risk profile whereas other are higher risk profile. An example of a high risk profile individual is someone is prepared to develop a property or renovate.
Someone who’s more conservative or low risk is someone who might otherwise like to leave their money in the bank or they might like to pay for a property in cash because they don’t like debt or they might want to something very simple.
For example, if you don’t know your risk profile then it’s very easy to buy the wrong property for you profile for all the right reasons. If you don’t the type of risk attached to the type of property that you buy it’s also very easy to make a mistake.
If you buy off the plan there are a lot risks associated with that and they’re to do with very the developer gets the lending, whether or not it’s a good builder, time frames of the development. There a number of different areas. The market can go up and down. And we’ve seen a lot of that where people are settling on properties where it’s worth less than the contract price.
There are so many variables and so many risks associated with buying off the plan that most people aren’t informed off because obviously that’s not necessarily brought to light when people are purchasing in that manner.
Someone with a low risk profile probably doesn’t want to buy a development site. They may not want to buy an off-the-plan. When you understand your risk profile and you understand the risk of the property then you can make a better informed decision.
Alistair: What other properties do you think are higher risk profile?
So for example it depends on the zoning of the property. IF you have student accommodation, or short term or resort style accommodation that can have a level of risk because what it inherently means is from the market point of view the resale value is a lot smaller. It also means from a lending or finance point of view you may not be able to borrow as much money so you’ll have to have a much bigger deposit to get into it. The returns on that type of investment can be affected by the type of property it is.
Buying property is not simple. I know most people want an easy solution. It’s a little bit like going to the doctor for a headache and wanting a pill when in fact what they probably need is surgery.
So when you invest in property it’s easy to sign a contract but the process of understanding about what makes a good investment grade property and how to match that to your risk profile and having a plan in place all of those things are quite complex and they do take time and they take investigation.
I’ll often deal with clients who want to buy property but they have no clear reason as to what they want it to do. So they know it’s kind of the in thing and that’s what you do but they don’t know what the end result is. If you don’t have a plan it’s a little bit like trying to build a house without a set of plans. There’s no foundation from which to build the rest of the structure around. Having a documented plan is knowing how old am I now, when do I think I want to retire, how many years away is that. What sort of lifestyle do I want? If I want a $100,000 income it’s needing to calculate I have x number of years to accrue that. So what’s the process to get that and how many properties do I need to buy and how often do I need to buy them to meet my specific requirement. Part of that process is, I know everyone if out there spruiking buy 10 properties in 10 years. It’s not about how many properties you have. Obviously with having, multiple properties you have to manage multiple properties and there are maintenance issues that come with having multiple properties. So it’s about having a tailored plan specific to your individual needs. If all you need are six really really good properties of a certain value then that’s all you need. Unless you just endlessly want to keep going for the sake of it. Not everyone needs to have 10 or 20 or 200 properties, it’s not necessarily about that.
It’s understanding what is that asset going to do for you, what do you need it to do for you. And making sure that you’ve got a foundation or a documented strategy you can then implement and you can then measure back to that strategy. Every year you can see are you on target for that strategy, how far do we have to go so what do we need to do, when do we need to do it and monitoring that as you go.
It’s imperative to never ever sign your name to anything. Even if you have a three day cooling off, from a cautionary point of view you still want to get that looked at before you put pen to paper because there’s complexity around that. It’s law, you’re signing a legally binding contract and if you have haven’t had a lawyer or conveyance point out to you areas of risk or consideration then you’re leaving yourself vulnerable.
Again buying property is complex, you’re dealing with real estate law and legislation. If as a lay person you don’t have a really good understanding of real estate law then it’s possible to easily make mistakes that cost you money. You’re talking about needing to understand from an accounting and tax point of view before you start, how you need to structure a property; even before a name gets put on paper you need proper tax and accounting advice. Same with can you afford the property, you want to be seeing a mortgage broker who can look at your situation and work out what options are available to you and how many options there are in the market place that can help you.
The other thing is understanding that you need to be doing building and pest inspections s that before you buy the property at auction you understand the structural condition of it. There might be issues where’s the repairs or work that needs to be done so if you’ve got $20,000 worth of work on a property you need to factor that in when you’re buying or bidding on a property, you need to keep that in the back of your mind. Or at least allow for it.
If you buy a property and it’s not auction but private treaty, same thing, you want to be putting a condition in there that’s a building and pest inspection but it’s written in the favour of the buyer, not in the favour of the seller.
<a target="_blank" href="mailto:awalsh@propertyobserver.com.au">awalsh@propertyobserver.com.au</a>
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Common investor mistakes when building a portfolio: How the experts buy with Miriam Sandkuhler

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Alistair Walsh

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