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With Tasmanian house prices continuing to fall, Hobart vendors are struggling to find buyers, even when they offer deep discounts, SQM Research has found.
Hobart's median house price has fallen 2.3% to $353,000 in the past year, <a target="_blank" href="https://www.propertyobserver.com.au/residential/tasmanian-house-prices-still-falling-reit/2012050254519">according to figures released by the Real Estate Institute of Tasmania</a>. And vendors are finding it increasingly difficult to close the deal, with the number of sales across Tasmania down 12.3% compared with the same month last year.
"Hobart is undergoing some pretty severe oversupply issues with both high stock levels and rental vacancies," says SQM director Louis Christopher.
Hobart's vendors are offering an average discount of 7.5%, compared with 5.6% in the Northern Territory, 8.1% in New South Wales, 7.4% in Queensland and an average discount of 7.1% in Victoria, according to RP Data.
Hobart properties lingered on the market for an average of 143 days before being sold in April, according to Australian Property Monitors. This compares with an average of 94 days in Sydney, 105 in Melbourne, 136 in Brisbane, 138 in Adelaide and 136 in Perth. 
SQM Research has released a list of the most discounted properties in Hobart, six months after its last list of deepest Hobart discounts. There is just one property that is still on the list, 22 Beach Street, White Beach. It came in at number 10 in November 2011, with its price hopes having been slashed from $250,000 to $195,000, or a discount of 22% after 1,211 days on the market.
It is now at number three, with its vendors having reduced their price expectations again, to $170,000.
<h2 style="font-size: 18px; line-height: 21px;">1</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008421301" target="_blank">27 Reeve Street, Campania, Tasmania, 7026</a>
On the market since: June 14, 2010
Initial asking price: $330,000
Current asking price: $200,000
Reduction: 39%
Days on market: 589
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106990132" target="_blank">211 Jetty Road, Eaglehawk Neck, Tasmania, 7179</a>
On the market since: November 14, 2010
Initial asking price: $595,000
Current asking price: $375,000
Reduction: 37%
Days on market: 434
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">3</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2006781491" target="_blank">22 Beach Street, White Beach, Tasmania, 7184</a>
On the market since: July 1, 2008
Initial asking price: $250,000
Current asking price: $170,000
Reduction: 32%
Days on market: 1,302
 
<h2 style="font-size: 18px; line-height: 21px;">4</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008415859">27 Turners Road, Saltwater River, Tasmania, 7186</a> (pictured)
On the market since: June 14, 2010
Initial asking price: $695,,000
Current asking price: $475,000
Reduction: 32%
Days on market: 673
 
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106613943" target="_blank">29 Watsons Road, Glen Huon, Tasmania, 7109</a>
On the market since: June 13, 2010
Initial asking price: $179,000
Current asking price: $125,000
Reduction: 30%
Days on market: 588
 
<h2 style="font-size: 18px; line-height: 21px;">6</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2009110098">133 Davis Road, Baden, Tasmania, 7120</a>
On the market since: July 18, 2011
Initial asking price: $375,000
Current asking price: $280,000
Reduction: 25%
Days on market: 267
 
<h2 style="font-size: 18px; line-height: 21px;">7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008864836" target="_blank">8a Barton Avenue, Triabunna, Tasmania, 7190</a>
On the market since: March 7, 2011
Initial asking price: $295,000
Current asking price: $220,000
Reduction: 25%
Days on market: 400
 
 
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107250730">1620 Nubeena Road, Nubeena, Tasmania, 7184</a>
On the market since: March 20, 2011
Initial asking price: $395,000
Current asking price: $300,000
Reduction: 24%
Days on market: 308
 
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106224707" target="_blank">26 Glenbervie Road, Dover, Tasmania, 7117</a>
On the market since: December 27, 2009
Initial asking price: $250,000
Current asking price: $190,000
Reduction: 24%
Days on market: 770
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D109304791" target="_blank">2/12 Churchill Road, Taroona, Tasmania, 7053</a>
On the market since: January 29, 2012
Initial asking price: $4375,000
Current asking price: $299,000
Reduction: 20%
Days on market: 70
 
SQM Research also offers a list of the <a title="SQM Research" href="https://www.sqmresearch.com.au/top100bargains.php" target="_blank">Top 100 Biggest Bargains in Australia </a>for sale.
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Hobart vendors struggling in oversupplied market, even with discounts: SQM

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A former 89-hectare turf farm in Burbank, Queensland is being converted into eight separate six-hectare blocks of land aimed at prestige buyers called Araluen Estates.
<img src="/images/stories/araluen1.jpg">
The lots will be $2.5 million each, and they are set to go on sale before next Friday. There has already been significant pre-registration interest from buyers seeking absolute privacy, peace and quiet.
<img src="/images/stories/araluen2.jpg">
“The quality of life here is exceptional,” says owner Robert Greasley, who has lived on and managed the turf farm for the past 24 years.
“You are a million miles from mediocrity and just 20 kilometres from Brisbane CBD. The furthest house lot, within the estate, is over a kilometre from Ford Road. That makes for a private and very quiet environment with an abundance of wildlife.”
<img src="/images/stories/araluen3.jpg">
The turf farm produced the specialist Wintergreen Couch grass, which is used for golf courses, for 30 years, and Araluen Estates has the gently rolling topography of quality golf courses.
<img src="/images/stories/araluen4.jpg">
The majority of Araluen Estates will comprise natural environment, with multiple lakes, parklands and bush. It is in the Priest Gully wildlife corridor.
<img src="/images/stories/araluen5.jpg">
“The quality lifestyle within the development is magnificent. The lakes are within the body corporate and contain Australian bass and silver perch. There are also bush trails around the lakes, Priest Gully and through the nature reserves,” says Greasley.
<img src="/images/stories/araluen6.jpg">
The building envelopes for each estate are 5,000 square metres, and there are no building covenants.
<img src="/images/stories/araluen7.jpg">
Despite the seclusion, Araluen Estates is three kilometres from the outer-Brisbane suburb of Rochedale, which is growing rapidly and has amenities such as shops, schools and medical centres.
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Brisbane fringe turf farm transforming into prestige housing community

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Affordability, not spaciousness, is the drawcard for apartments even in Double Bay. Oceania Property is hoping third time lucky – and the one-bedder home buyers’ market – will generate sales for its boutique development at 18 Bay Street, Double Bay.
After failing to secure any luxury buyers during the marketing for planned project Montre, the developer has gone back to the drawing board and has released a plan with a new mix of units, new prices – and even a new name.
Montre was the second attempt for the development site, as in 2009 registrations of interest were being sought through Colliers by the developer, Thaung Investments.
<img src="/images/stories/bayresidences.jpg">
Oceania bought the site for $20.5 million in January 2011, with the site having previously traded at $15 million in 2007.
Montre was to feature just eight apartments, with prices starting from $3.25 million for the three two-bedroom offerings.
“Montre is our benchmark development,” Nico Wijarto Tjen, a director of Oceania Property, said in October last year. “What we are offering is grand, easy-care apartments for those who appreciate the finer things in life.”
But Sydneysiders didn’t seem to want grand, easy-care apartments with multimillion-dollar price tags, and the new incarnation of the plans has been rechristened The Bay Residences and is set to comprise 21 smaller, less expensive offerings. The exterior, designed by Kann Finch architects, remains substantially the same.
<img src="/images/stories/bayresidences2.jpg">
The 15 one-bedroom apartments start from $825,000. Two-bedroom apartments start from $1.75 million, three-bedrooms offerings from $2.25 million and the penthouses from $3.99 million. There are set to be two of each of these larger configurations. In Montre, the penthouses were set to start from $5.56 million.
<img src="/images/stories/bayresidences3.jpg">
The new tack seems to be working, with two apartments sold and a few others in discussions about a month after they came onto the market, according to Wijarto Tjen.
Ben Stewart, a director of CBRE residential project marketing, which is marketing The Bay Residences, says the previous incarnation appealed to the wrong demographic for the current market.
“I know of exquisite three-bedroom apartments in Double Bay that are still unsold 18 months after they were completed,” he says.
“There is absolutely nothing wrong with the apartments; it’s just that empty-nesters are remaining in their family homes because they don’t feel as financially secure as they once did.
“Currently in Sydney the majority of buyers are young singles and couples fed up with paying rent. They still want to live in a convenient, vibrant location, but have limited budgets. That’s why one-bedroom apartments always sell first in Sydney developments these days.”
<img src="/images/stories/bayresidences4.jpg">
The developer has lodged a section 96 request with Woollahra Council to modify the plans for the Bay Street block. The application is currently pending, but as plans for the exterior have not changed, the developer expects it will receive council approval soon. Woollahra Council is thought to favour blocks with more, smaller units over fewer, larger ones.
“The councillors and council staff I’ve spoken to are very supportive of the changes because it will mean more residents will now be able to live in Double Bay,” says Wijarto Tjen, “and the new apartment mix will also mean younger residents.”
Oceania Property is set to begin demolition work on the existing building on the site next month, and it hopes that Woollahra will have approved its section 96 modification shortly thereafter so it can begin construction. The Bay Residences have a tentative completion date of August 2013.
 
 
 
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Oceania Property swaps luxury and space for affordable one-bedders in third incarnation of Double Bay site

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Vendors in Darwin are able to secure sales without having to offer deep discounts needed in other states, research from RP Data and SQM Research has found.
The average discount offered by vendors in the Northern Territory is 5.6%, according to RP Data, compared with an average discount of 8.1% in New South Wales, 7.4% in Queensland and an average discount of 7.1% in Victoria.
This is borne out by SQM Research's list of the top 10 most discounted properties in NT. The most discounted property on the list, 31 Chinner Road, Lake Bennett, is offered at a 21% discount to its original price hopes of $369,000. In November 2011, the last time SQM compiled a list of the most discounted properties in Darwin, 35<a target="_blank" style="font-size: 14px; text-align: left;" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106984366"> </a>Flinders Drive, Stuart Park was the number-one property, with a discount of 20%. Its vendors have neither budged on price nor sold, as the property is now number two on the list and is still offered with a 20% discount.
On SQM's recent list of the <a target="_blank" href="https://www.propertyobserver.com.au/queensland/treasure-island-avenue-home-heads-list-of-most-discounted-properties-in-queensland-sqm-research/2012032754036">most discounted properties in Queensland</a>, the number-one property, 121 Treasure Island Avenue, Karragarra Island, is offered at a 40% discount on its original price hopes of $335,000.
The <a target="_blank" href="https://www.propertyobserver.com.au/victoria/most-discounted-properties-in-victoria-all-in-melbourne-sqm/2012031353814">most discounted property in Victoria</a>, according to SQM, is 1365 Ballan Road, and is offered at a 25% discount on its original price hopes.
And <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/central-coast-still-heavily-represented-on-sqm-s-most-discounted-properties-in-nsw-list/2012022853607">SQM's report on the most discounted properties in NSW</a> shows that the number-one property, 1302 Birkdale Place, Magenta, is currently offered with its price hopes 36% reduced.
 
<h2 style="font-size: 18px; line-height: 21px;">1</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D109520391">31 Chinner Road, Lake Bennett, NT, 0822</a>
On the market since: February 11, 2012
Initial asking price: $369,000
Current asking price: $290,000
Reduction: 21%
Days on market: 56
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<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106984366">35 Flinders Drive, Stuart Park, NT, 0820</a>
On the market since: November 13, 2010
Initial asking price: $1.15 million
Current asking price: $925,000
Reduction: 20%
Days on market: 511
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">3</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107302548">29 Bayview Boulevard, Bayview, NT, 0820</a>
On the market since: April 9, 2011
Initial asking price: $1.9 million
Current asking price: $1.6 million
Reduction: 16%
Days on market: 203
 
<h2 style="font-size: 18px; line-height: 21px;">4</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D7361321">890 Chinner Road, Lake Bennett, NT, 0822</a>
On the market since: October 29, 2011
Initial asking price: $579,000
Current asking price: $495,000
Reduction: 15%
Days on market: 161
 
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107365884">2916/485 Dundee Road, Dundee Beach, NT, 0840</a>
On the market since: May 7. 2011
Initial asking price: $519,000
Current asking price: $450,000
Reduction: 13%
Days on market: 336
 
<h2 style="font-size: 18px; line-height: 21px;">6</h2>
<a target="_parent" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106295188">273/8 Gardiner Darwin, NT, 0800</a> (pictured)
On the market since: February 6, 2010
Initial asking price: $1.25 million
Current asking price: $1,086,195
Reduction: 13%
Days on market: 791
 
<h2 style="font-size: 18px; line-height: 21px;">7</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107457564">4100 (l2943) Fog Bay Road, Dundee Beach, NT, 0840</a>
On the market since: June 11, 2011
Initial asking price: $400,000
Current asking price: $350,000
Reduction: 13%
Days on market: 301
 
 
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008770053">86/9 Carey Street, Darwin, NT, 0800</a>
On the market since: January 15, 2011
Initial asking price: $639,000
Current asking price: $559,500
Reduction: 12%
Days on market: 322
 
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2009000850">22/68 Ryland Road, Millner, 0810</a>
On the market since: May 21, 2011
Initial asking price: $410,000
Current asking price: $359,000
Reduction: 12%
Days on market: 322
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106273202">40 Lot 3760 Launceston Road, Dundee Beach, NT, 0840</a>
On the market since: January 30, 2010
Initial asking price: $495,000
Current asking price: $439,000
Reduction: 11%
Days on market: 798
 
SQM Research also offers a list of the <a target="_blank" href="https://www.sqmresearch.com.au/top100bargains.php" title="SQM Research">Top 100 Biggest Bargains in Australia </a>for sale.
 
 
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Darwin vendors still discounting less than vendors in other capitals: SQM Research

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Developer Ecove has sold 111 of the 270 apartments of stage two of its Australia Towers development at Olympic Park less than two weeks after the stage launched on April 21.
<img src="/images/stories/at211.jpg">
Most buyers have purchased the larger two-, three- and four-bedroom units, and Colliers International residential project marketing general manager David Chittenden says most are owner-occupier upgraders from Sydney's inner west and the Hills District.
“What these sales have shown is that not everybody is an investor on a downsizer,” Chittenden says.
<img src="/images/stories/at21.jpg">
Stage one of the development (pictured below), which is now complete, has sold 209 of the 216 apartments.
<img src="/images/stories/at27.jpg">
Stage one launched in early 2010, and construction finished a few weeks ago. Almost 80% of stage one sold within the first few weeks of the 2010 launch.
<img src="/images/stories/at23.jpg">
<a target="_blank" href="https://www.propertyobserver.com.au/developments/olympic-park-australia-towers-launches-stage-two-after-stage-one-sells-fast-out-of-the-starting-blocks/2012040354146">The second stage, called ATII, will be 25 storeys</a> and is the second of three planned stages. It will have 95 one-bedroom apartments ranging from $450,000 to $595,000 and from 54 to 71 square metres internally, 132 two-bedroom apartments with between 77 square metres and 122 square metres of internal space and priced between $585,000 and $1,085,000, 26 three-bedroom apartments of between 103 and 159 square metres each ranging from $900,000 and $1,565,000 and 14 four-bedroom units, which will range from between $995,000 and $1.76 million and between 141 and 181 square metres internally. Every apartment will have at least one car space.
<img src="/images/stories/at24.jpg">
“Lifestyle is the major reason ATII has been so popular," Chittenden says.
"Many people want to take advantage of the sporting and entertainment facilities on their doorstep, the 430 hectares of parklands, the 35 kilometres of bike tracks, and the 32 restaurants, cafes, bars, and speciality retailers.”
<img src="/images/stories/at28.jpg">
Olympic Park is a new 640-hectare Sydney suburb about 15 kilometres west of Sydney CBD and became an official suburb in 2009. The locality was part of the suburb of Homebush Bay and was redeveloped for the 2000 Sydney Olympics. More than 5,000 events are held at Blaxland Riverside Park in the suburb every year, and about 500 permanent residents now live there. There are more than 130 businesses in the suburb.
Architectural firm Bates Smart has taken a cue from the nearby stadium precinct for the design of ATII.
<img src="/images/stories/at25.jpg">
“We’ve given the building ‘gills’ so that it can breathe,” says Bates Smart director Philip Vivian. “Vertical slots on the northern and southern sides of the facade encourage natural airflow through the apartments and the communal spaces.
“The design maximises light into each apartment, and horizontal sun-shading bands circling the building in varying depths provide added protection to the north.”
<img src="/images/stories/at26.jpg">
Colliers estimates that one-bedroom units will rent for between $500 and $575 per week and that two-bedroom units will command rents of between $600 and $800 per week. For the pricier, larger apartments, Colliers estimates that the three-bedroom units will rent for between $700 and $1,000 per week, and that tenants will pay between $1,000 and $1,500 per week for the four-bedroom units.
<img src="/images/stories/at213.jpg">
Construction is expected to start on ATII in mid-2012 and finish in early 2014.
<img src="/images/stories/at29.jpg">
 
 
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About 40% of Olympic Park's ATII tower sold soon after marketing starting gun sounds

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There were 774 sales in Perth for the week ended May 2, compared with 608 for the same week last year, according to the Real Estate Institute of Western Australia. Last year Easter fell on April 24, so the comparable week last year was the week after the Easter/Anzac Day long weekend.
<img src="/images/stories/reiwamay2.gif">
 
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Perth sales up 27% on same week last year: REIWA

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Angry that ANZ can record an interim profit of $2.97 billion while refusing to pass on the RBA’s rate cut? Annoyed that banks continue to exploit the lack of competition to belt consumers and business with higher interest rates and fees?
The problem is, we’re all hypocrites. The complaints have considerable justification, but most of us are silent, greedy accomplices in what the banks are doing.
At some stage in the financial cycle, most Australians benefit from strong, profitable banks, either as depositors or shareholders. And by swallowing some of the RBA rate cuts, the banks are merely trying to do the right thing by their owners. And who are the bank shareholders, and who are the biggest group of bank shareholders? Why, ordinary Australians via their superannuation funds (retail, industry, self-managed).
The banks underpin much of our super funds’ investment in shares. Even industry super funds, which typically have a wider spread of alternative and property investments, will have 5-6% of their entire holdings in the big four banks. Their big dividends are much loved by fund managers, investors, advisers and shareholders. They are rivers of gold which this year will be around $18 billion.
We also want to have it both ways on rates. If you want a full pass-through of rate cuts by the RBA, then you have to be prepared to accept lower profits and deposit rates. But they in turn mean the banks lift their borrowings in wholesale markets here and offshore, increasing their costs and exposing themselves to greater risks in the event of another financial crisis. Go to Spain, France, the UK or Ireland to find out what weak, financially crippled banks do for confidence, the economy and consumers. Consumers, business and others in those countries have real justifications to moan and groan about their banks.
There’s a problem though for all the banks (and for retirees and others with bank deposits), in that after yesterday’s rate cut, nearly all the term deposits on issue are now half a per cent or so too expensive, but that expense won’t improve for months for the banks until the deposits expire and get rolled over at lower rates. Just how much lower will be the problem. So the banks face more pressure on their margins, possibly until the end of 2012, especially if there’s another rate cut from the RBA. As the RBA has found, while the cost of funds has fallen, the fall in bank deposit rates has been much smaller, as intense competition for deposits forces the banks to keep offer rates (especially teaser rates) higher than they would have expected.
In fact it’s not the cost of wholesale funding here or offshore that’s the problem for the banks who want to maintain their profits, it’s the intense competition for local deposits. That in turn makes every depositor part of the problem for the banks. While Australians moan and groan about the behaviour of the banks (in many cases with justification), they blithely demand higher rates of interest on their bank deposits (especially term deposits), which in turn pushes up bank funding costs, which in turn has caused them to keep some of the rate cuts from the RBA (and add a bit more). Bank depositors are part of the bank’s funding cost pressures, but we won’t admit it.
Don’t expect any sympathy at the RBA for the banks. It’s of the view the banks have contributed to their problems, and hurt the wider economy by keeping part of the last couple of rate cuts (and a bit more) thereby damaging consumer sentiment. This is what RBA chief Glenn Stevens said in <a href="https://www.rba.gov.au/media-releases/2012/mr-12-10">yesterday’s statement about the banks</a>:
<blockquote>
“As a result of changes to monetary policy late last year, interest rates for borrowers have been close to their medium-term averages over recent months, albeit tending to increase a little as lenders passed on the higher costs of funding their books. Credit growth remains modest overall …
“In considering the appropriate size of adjustment to the cash rate at today’s meeting, the Board judged it desirable that financial conditions now be easier than those which had prevailed in December. A reduction of 50 basis points in the cash rate was, in this instance, therefore judged to be necessary in order to deliver the appropriate level of borrowing rates.”
</blockquote>
That is, the RBA knows the banks won’t pass on the full cut so it went for a larger cut. It’s as much a bit of bank bashing (shorn of the rhetoric from Wayne Swan and other critics) as we have seen from the central bank for some time. And if we get another rate cut next month or in July, then that will be aimed at bashing bank lending rates even lower to a level where they are seen by the RBA as stimulative for the economy, not constricting. The first bank to pass on the next rate cut full will be a sign that the RBA has succeeded in bring the banks back into line.
A few other points need to be made. The rate cut (and those to come) won’t help retailing. There’s too much capacity and the structural change underway is now unstoppable and will see more outlets close, employment fall and perhaps one or two big chains crunched badly. The RBA knows, via the latest household expenditure survey, that just over half of all mortgage holders are repaying their mortgages at a rate above the minimum needed. In other words, they are building up their equity. There is no reason to believe that they won’t change this after the 0.50% cut yesterday. It just increases their level of saving.
This article originally appeared on <a href="https://www.crikey.com.au/" target="_blank">Crikey</a>.
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Why we’re all complicit in the banks’ interest rate gouging

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The median rental yield for houses in Darwin, according to RP Data-Rismark.
 
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The median rental yield for houses in Hobart, according to RP Data-Rismark.
 
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The median rental yield for houses in Canberra, according to RP Data-Rismark.
 
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The median rental yield for houses in Brisbane, according to RP Data-Rismark.
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The median rental yield for houses in Perth, according to RP Data-Rismark.
 
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The median rental yield for houses in Adelaide, according to RP Data-Rismark.
 
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The median rental yield for houses in Sydney, according to RP Data-Rismark.
 
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The median rental yield for houses in Melbourne, according to RP Data-Rismark.
 
 
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Capital city house rental yields, from struggling Melbourne to strong Darwin: RP Data-Rismark

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Number of landlords with more than one investment property increased 5% from 2008-09 to 2009-10: ATO

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With a display village that includes the Kimberley Zero home, designed to have zero carbon emissions, Mirvac’s Harcrest project in the outer-Melbourne suburb of Wantirna South has proven attractive to buyers. 
<img src="/images/stories/harcrest1.jpg">
Some 175 plus lots have been sold since the master-planned community launched in late February. There are currently 23 lots available in the first two sections, Village Square and Garden Grove.
The 56.2-hectare Austral Brickworks site is being converted into a master-planned community with a focus on sustainability, and the 840 lots will eventually be home to more than 2,000 residents.
<img src="/images/stories/harcrest2.jpg">
Lots range in size from 392 square metres to 477 square metres and in price from $380,000 to $499,000. Mirvac house-and-land packages are also available, with prices starting from $505,000. There are currently 13 turn-key homes available.
The median house prices in <a target="_blank" href="/news">Wantirna South</a> is $545,000, according to RP Data, and median house prices fell 2.3% last year.
Mirvac communities CEO Matthew Wallace says the project sought “efficient use of land, maximising solar penetration, privacy, backyard and internal living spaces”.
<img src="/images/stories/harcrest3.jpg">
The Mirvac homes available (pictured above and below) have six-star green environmental ratings, and the community will make use of water reclaiming and reuse.
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The development is set to feature 6.8 hectares of open space, including wetlands.
Wallace says the sustainable technology featuring in Kimberley Zero home can be incorporated into new Mirvac homes.
“The net zero carbon home sets a new benchmark for sustainable community living,” Wallace says.
The retail precinct within Harcrest includes an IGA supermarket and specialty shops, and the development is close to Knox City Shopping Centre, bus and tram routes and the Burwood Highway. It is about 35 kilometres east of Melbourne.
 
 
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Near 90% of lots sold in first release of Wantirna South project Harcrest

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

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.

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.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, 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.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 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.

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.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"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."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

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.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

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.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"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."

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

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

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.

&nbsp;

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.

[smartcode_project:default project_id=151449 project_image_fid=357458]

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.

"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.

"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.

"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."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

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.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"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."

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>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

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.

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.

[smartcode_project:default project_id=134951 project_image_fid=368645]

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.

"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.

"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."

[smartcode_project:default project_id=134951 project_image_fid=358802]

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.

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.

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.

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.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<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.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"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.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

Cassidy Knowlton

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