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An article in Melbourne’s Herald Sun this weekend (October 9, 2011) highlighted how it’s just as possible to lose money through unwise investment in the real estate market as it is with any other financial acquisition.  Residex sifted through 268,000 sales transactions to conclude that over the past three years 5,427 vendors have sold property for less than they paid (not taking into account stamp duty and transaction costs). 
To put this into perspective that’s a little over 2%, with the main losses occurring in areas that either have a surplus of high-rise developments – for example, Docklands and Southbank in Melbourne’s CBD – or in areas that suffer accentuated volatility during the property cycle such as those with $1 million-plus price tags such as the bayside suburb of Brighton, with a median house price of $1.79 million. Furthermore, the losses were incurred over a three-year period, which in real estate terms is too short to make any substantial profit even in the best of times.  However, even taking this into account, for many still hoping to get a foothold into their area of choice, life isn’t getting any easier or property prices any lower.
One sector of the market particularly feeling the strain is young families wanting to enrol their children in reputable inner-city schools.  Melbourne’s population is estimated to reach 5.6 million by 2026.  It’s growing faster than any other Australian metropolis, and while a bulk of the population is being squeezed into newer suburban regional areas such as Warrandyte and Werribee, it’s only a result of increasing density in the inner- and middle-ring suburbs with facilities unable to cope with the growing demand.  
While the state government has been busy planning large developments of high-density housing on disused industrial land such as Fisherman’s Bend in West Melbourne – an area expected to provide accommodation for an extra 12,000 residents – little planning or finance has been dedicated to adequately facilitating existing public schools or building new establishments to cope with the extra surge in enrolments.  Furthermore, the squeeze is putting pressure on an already limited supply of residential family accommodation for middle-income families wanting to give their children the best education Melbourne has on offer.
This is why there is a very strong connection between Melbourne’s top public schools and the prices of residential property.  If you analyse the statistics, being in a school zone for one of the top 20 or so government schools in Melbourne can increase the price of properties in the area an average of 10 to 15% – and the smaller the zone, the greater the pain.
For example, Melbourne’s McKinnon Secondary School zone only covers an area of around four kilometres – however, it spreads over four suburbs (McKinnon, Bentleigh, Bentleigh East and Ormond). There can be a big difference in the price of a house on one side of the street in the zone and the other side of the street outside the zone, even though they may be located in the same suburb. We’re talking differences of $100,000 or more on a house in Bentleigh East for example - which has a median price currently recorded at $732,500.  Even within such a small area, the number of enrolments being submitted to the school each year is often so high there is always talk of the zone reducing in size, which obviously worries anyone who is purchasing property near the zoning boundaries – take away the zone, and you can potentially wipe that $100,000 off the price tag.
As a consequence, the homes closer to the school (easy commutable distance –within two kilometres) will sell for higher prices and potentially generate a greater appreciation in price than those located on the edges.  Even in soft markets such as we’re experiencing at the moment, demand in the school zones remains robust. The average clearance rate in Melbourne is currently 58%, however in the areas surrounding McKinnon high school it’s sitting at approximately 70% and so tightly held is the location, there have been fewer than 50 house sales recorded by the REIV over the past 12-month period.
Investors add to the demand in school zones because not only is capital growth generally higher, so too is yield from families who have been forced to rent due to high property prices or not finding a suitable property in time for enrolment.  Neither is it unheard of for an old property located in a popular school zone to be rented by a family never intending to move in, but simply using the address to meet the criteria for enrolment into year 7. However, it’s important for investors to understand they will only reap the benefits of a school zone if purchasing a property that suits the major home buyer demographic in the area.
Purchasing a “set and forget” two-bedroom unit obviously won’t attract the same intensity of demand and will therefore only produce comparable returns for the general suburb rather than the school zone.  Developers aren’t missing out either – land sizes are shrinking as full blocks are being sliced in half to accommodate high-spec townhouses often selling for double the price of the initial land value – and to further accentuate the point, according to the latest valuer general data, over the past five years, houses in the McKinnon school zone have recorded an average annual growth rate of 12.62%.
It’s another symptom of poor planning for a growing population, which is unduly inflating property prices of desirable inner-city residential real estate.  For example, six years of secondary education at Melbourne Grammar School is currently around $139,920.  When you take into account stamp duty and transaction costs, plus the time and effort it takes to find a house appropriate for a growing family, you can easily pay more to get a foothold into a popular school zone. Therefore, even though we’re seeing price falls in some areas of the state, we’re still facing challenging problems adequately accommodating an increasing population looking to settle into the world’s most liveable city – and this will only result in increasing prices over the long term.
Catherine Cashmore is senior buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
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Property in prestigious school zones always in demand for both investors and owner-occupiers

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Single first-home buyers have a battle on their hands if they want to secure a property in today’s market, which is predominantly dominated by second-home buyers, investors, and young couples who are able to draw on combined salaries.  In fact the only time we see a significant rise in this sector of the market is during periods where generous incentives are offered by the government, which conversely does little to ease the pain for property buyers.  The resulting increase in competition caused by a temporary inflation of the economy – particularly in the inner- and middle-ring suburbs – makes it harder to get a foothold, not easier.
We only have to take a brief backward glance at the initiation of the first-home owner boost in 2008 to understand the advantages fleeting targeted schemes like this can effect. The post-GFC property boom was ignited by the first-home owner boost introduced in October 2008. During this period grant recipients accounted for 40% of overall housing turnover.
However, in Victoria it was the extra dollar incentives offered for purchasing new properties in the growth corridors that had the biggest effect on first-home buyer trends, and this was where the buying activity centred. Immediately following the introduction in November 2008 overall sales of new dwellings had increased by 1,764 to 11,695.  Melton, in Melbourne’s West, grew by 8.2%, equating to 7,535 new residents – an all-time high.  Other regions such as Deer Park (17 kilometres west of Melbourne’s CBD) recorded a 15.67% rise in its median value. And by January 2009 there had been 530 house sales recorded in Tarneit (25 kilometres south west of Melbourne), with prices increasing 21%. Werribee (32 kilometres southwest of Melbourne) and Point Cook (25 kilometres south of Melbourne) attracted the greatest number of grant recipients, with Werribee South recording a whopping 25.74% rise in its median house price, which was clearly unsustainable over the long term. 
When the grant was finally scaled back demand substantially declined, and the effects are still being felt.  The REIV recorded a 4.3% decline in Werribee’s median house price over the last quarter alone, and according to RateCity, there have been 40,000 fewer first-home buyers entering the residential market in the year from July 2010 – 2011.
The decline has caused a two-tier rift in our property market and left home buyers in the outer-suburban regions facing a long road of potential property stress.  RP Data’s recent equity report shows that “3.7% of home owners across the nation are in a negative equity position,” which includes a significant proportion who purchased at the peak of the market (many of whom were first-home buyers).  Clearly, the reduction in demand following the drawback of the first-home owner’s boost and a sharp period of interest rate rises has taken its toll. Another report analysing mortgage-backed securities by Moody's Investor Services shows a worrying i<a target="_blank" href="/news">ncrease in delinquencies</a> from those holding the least amount of equity in their properties. The report has produced a “heat map” for each metropolitan and regional housing market across the country and it reveals the greatest deterioration in mortgage performance is evidenced in those areas “radiating” away from our well facilitated metropolitan inner- and middle-ring suburbs – principally the outer regional areas.  These are the areas our first-home buyers flocked to during the boost and the areas that are now s<a target="_blank" href="https://www.propertyobserver.com.au/residential/queensland-hit-hardest-post-gfc-as-6.3-of-homes-worth-less-than-their-purchase-price/2011092851719">truggling with negative equity </a>and an inability for buyers to bail out due to the reduction in demand.
On the other side of the coin the inner-metropolitan regions where most people want and need to live are fast becoming unaffordable for the majority of home buyers who don’t already have existing equity in the property market – principally first-home buyers.  RP Data now has 40 Melbourne suburbs listed with a median house price of a million dollars or more.  Furthermore, in its recent equity report Victoria came top of the list, with 71.4% of Victorians currently holding at least 50% equity in their property. Melbourne has also recorded the highest rate of capital growth over a five-year period (to July 2011), with dwelling values up 51.5%. The overall results of the report specified that the biggest gains were understandably in the capital cities – areas where job security is strong and vendors are under no pressure to sell. Regional “mortgage belt” areas containing the highest default rates dwindle some 10% behind.
Obviously Australia is suffering a housing dilemma, which is largely the result of our geographical landscape where more than 75% of Australians live in and around our major cities along the eastern and south-eastern costal planes.  The limited land available in these locations, along with a growing population of buyers and immigrants, naturally puts pressure on Australia’s metropolitan prices and even taking into account the recent soft market, which has slightly improved buying conditions across the country, it’s clearly splitting the housing market into a gradual rich/poor divide.
Luring people out of the metropolitan inner-suburban areas is the only obvious way to ease inner-city demand and consequently make housing more affordable. However any future plans to do so have to be sustainable and not fuelled with fly-by-night incentives. In Victoria, the state government’s answer to the shortage of housing has been to action urban land releases on former farmland in growth corridors such as Casey, Hume, Whittlesea, Wyndham, and Melton – areas lacking in public transport, adequate health services, and other amenities needed to support a growing population.  It was boldly stated that infrastructure would be provided in these areas to make them liveable for new home buyers; however this was to come in the form of a hefty new tax called the ”growth areas infrastructure contribution” – the GAIC. 
As I understand it, the GAIC is levied if land is sold, transferred or subdivided, or if sizable building works are conducted. The cost can be up to $95,000 per hectare and essentially it falls at the feet of the purchaser, which further increases the underlying cost of purchasing. There is negligible encouragement for any new home buyer to move into these areas, and quite clearly it’s going to do little, if anything, to address the growing issues facing the practicalities of sustainable population growth.
We have a looming crisis on our hands, and the only way to solve it is to build suburbs with enough diversity and infrastructure to foster a sense of community.  Re-igniting the first-home buyer market and committing to a strategised plan to adequately facilitate the outer-metropolitan regions would be a great initial step towards addressing this issue. This means providing more than simply an abundance of “roof space” or high-rise inner- city rabbit hutches, it requires substantial hand-in-hand investment in schools, small business, open spaces, and transport facilities without which growth cannot be sustained. All in all, most owner-occupiers will admit the most valuable asset they own is their home – however it is no longer a right reserved for all – for a growing sector of our population, it’s fast falling out of reach.  
Catherine Cashmore is senior buyer advocate for <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
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First-home buyers are priced out of the market, and something must be done

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We are indeed fortunate to live in Australia – despite watching on while other nations slide into a never-ending spiral of debt while dealing with street riots and country-wide strikes, our biggest concerns seem to be concentrated on comparatively quibbling matters such as the “boat people” debate, or whether we’ll have an early election.  This is not to say we’re sailing along without a worry in the world because quite obviously there are sectors of our population feeling the pinch, however relatively speaking, we’re doing OK.
The RBA released its Financial Stability Overview this past week, which largely reaffirmed a positive outlook for Australia.  Perhaps the most reassuring news to come from the review is our cautionary approach to spending and borrowing which has encouraged households to take stock of their financial situation ensuring we’re well prepared for any future mishaps. 
The report specified that over half of Australia’s mortgage borrowers are making “substantial excess principal repayments” on their loans, as well as increasing household saving.  This savvy approach to financial management is important, because quite clearly the path ahead is going to be unpredictable and rocky.  The last thing we need is rash spending and extra inflationary pressure – particularly in the housing sector.
However sometimes it seems as if we’re living in world of Harry Potter “Dementors” who are sucking the very optimism out of the air – keeping us on a cliff’s edge waiting for someone to shout “fooled ya” and strip the sunny illusion away.  The number of “experts” who fill the news headlines each week with predictions of a 40% house market crash is disturbing because our housing market is founded on a very stable platform, principally driven by an increasing population and supported by a healthy banking system. 
It could be argued that the doomsday effect of media headlines is relatively harmless, however when it comes to investment, running sensationalist stories can have far-reaching effects because aside from supply and demand, the greatest influence on our market is perception. Whether we recognise the folly of a debate or not, we can’t help but be influenced – hear a message enough times, and your subconscious starts to believe it.
If you’re wise however, and take a more rational outlook, there’s a lot to be learnt from the current doldrums. Flat markets can teach us a valuable lesson because they test the “real” strength of demand without being unduly distorted by bullish speculation often apparent during a boom.  If you understand what performs well in a flat market, you’re better placed to take advantage of the current conditions which are by and large extremely favourable for investors.
Essentially a property is only worth what a buyer will pay and reassuringly for the wise buyers and vendors, the sales results coming in from the homes displaying the right attributes assure that even in a turbulent environment our metropolitan market has the potential for growth.  This is borne out in the latest quarterly residential data, which shows an increase in the median house price of 1.5%.  Each week I attend six to eight auctions, most of which are properties located in areas with the potential for good long-term growth and the right attributes to attract healthy interest. 
Providing vendor expectation is at a reasonable level, the property will attract competitive buyer activity and consequently achieve a good price.  Importantly, it’s the vendors who purchased and negotiated well initially who are outperforming the current flat conditions. Therefore the key to successful investment is at the buying end of the process – get this part right, and the selling side will largely take care of itself.
I wish it were easy to quickly quantify the difference between a good and bad investment. Statements such as “A, B and C” or “investment-grade” properties are bandied around among various commentators as if there’s a secret list in circulation. However, there’s no one size fits all when it comes to property investment.  Each individual needs to be assessed based on their financial needs and long term objectives.  Whether a renter or owner real estate forms an essential part of our everyday lives, however this doesn’t mean we have the necessary experience to make the right choice when it comes to long-term investment. 
If you’re submitting a tax return you go to a registered accountant, if you’re thinking about insurance or investing you talk to a licensed and registered financial planner, therefore do the same if you’re thinking about investing in real estate – seek out a licensed real estate expert to assist you in the process.
Catherine Cashmore is senior buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
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Don't let the Dementors get you down - Australian property is not on a cliff's edge

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There was a very interesting article by Chris Vedelago in The Age on Sunday concerning listings in Melbourne that have been hanging on the market for an extended period of time, and have subsequently dropped significantly in price.  I’ve often commented how good property will sell well in any market, and it’s an adage that carries a lot of weight.  Therefore, considering the catchy headline “The strange cases of the good houses that just won’t sell”, it’s worth noting in more detail why these Victorian listings in question haven’t sold, and whether we can attribute it to the current doldrums surrounding the real estate market, or if there are other factors to take into consideration.
<a href="https://www.realestate.com.au/property-apartment-vic-southbank-106952892">2506/83 Queensbridge Street, Southbank</a>, has reportedly been on the market since October 30, 2010. Listed initially at $2.15 million, the asking price has now reduced some $500,000 to $1.65 million. This property regularly features on <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/wa-landholding-makes-debut-on-sqm-discount-list/2011091451558">SQM’s top 10 most discounted list</a>. The property is a luxury penthouse apartment with a family-sized interior and views extending to Mt Martha.  Situated on the border of what is now considered the world’s “most liveable city”, it’s also in an area serviced by the best amenities Melbourne has to offer – so why hasn’t it sold?
Melbourne’s Southbank – once an industrial area – was initially converted into a high-density, high-rise city, in the 1990s as part of the urban renewal program.  Purchasing in a penthouse may sound like the lap of luxury, however it’s a common misconception and subsequently there is a very limited buyer market for this type of development.  Typically when built, high-rise developments will sell at the lower levels before the upper levels.  This is because buyers like a sense of relativity.  There’s something rather unnatural about being perched up high.  Even though the adverts spruik stunning city views and close proximity to inner-city amenities, if you dip into the archives and read about the experiences of residents who have lived in these developments, they often paint descriptions akin to living in a hotel room rather than a ‘”home”.  The lifestyle lacks a sense of community and can be very sterile – therefore there are often reports of renters not fulfilling their promised term of tenancy, units having high turnover rates, or views being built out – (not to mention the high owners’ corp fees which generate into the thousands – the higher up you are, the higher the bill).
This unit is right next door to Crown Casino.  The location may be OK for a holiday destination, but how many home buyers would want a large casino on their doorstep? Apartments like this are always sensitive to market movements and traditionally suffer high volatility. They appeal to a luxury elite market (often an Asian market who are more adept to high-rise living) and considering the global tribulation  we’ve experienced in recent times – there’s obviously not going to be a queue of buyers lining up for this type of development.  It passed in earlier this year for $1.35 million on what was reportedly a genuine bid – with a reserve of $1.6 million. The last comparable apartment to sell in the block went for $1.1 million at the end of the boom in 2007.  Therefore if you factor in the rises and falls the million-dollar-plus market has experienced since 2007, $1.35 million wasn’t a bad achievement!  After a year of marketing obviously the vendors aren’t under pressure to sell; therefore they may be able to hang out until we move into the next upturn of the property cycle and buyer activity increases.
<a href="https://www.realestate.com.au/property-house-vic-niddrie-107347511">23 Gallica Close,  Niddre</a> Situated 13 kilometres north west of the city, this property was initially listed on April 23, 2011 for $1,195,000, however the price has now reduced to $890,000. The house itself is unusual to say the least.  The room dimensions are compromised by a circular design, and it’s quite obviously something that would only appeal to the “odd” property buyer.  Furthermore, the street is on a very steep gradient, which further reduces its appeal.  I recall attending an auction in this street some years ago and struggling to stand upright or even obtain a secure foothold. Trying to sell a house like this in a soft market is always going to present a challenge – and even more so if not priced correctly.  As is typically the case when properties are overpriced, the vendors have only held the home for a short period of time.  This property was last purchased in March 2008 for $900,000.  They’re obviously hoping to cover their expenses and get a profit on the price they paid, however with a property like this, it’s not going to be easy in the current market.  It’s now listed for auction with a price quote of $890,000-$960,000.  Maybe it will have better luck finding a buyer as we move into the warmer months.
<a href="https://www.realestate.com.au/property-house-vic-brighton-107441405">118 Carpenter Street, Brighton</a> This might sound like a dream address.  After all, it’s close to Brighton’s top shopping strips, walking distance to middle Brighton train station, and in a suburb that’s tightly held because of its bayside appeal.  Considering it’s only 11 kilometres away from the CBD, you may be wondering why it hasn’t been snapped up.  Take a closer look and you’ll also see it also backs onto a train line, has a small land size for the area, and is situated next to a funeral parlour.  The home was initially listed on June 4, 2011 for $1.15 million, however after a few weeks and no result, the price was reduced to $890,000. Unfortunately it’s another example of vendors trying to get a profit after only a short period of ownership.  The house was initially purchased just over a year ago for $850,000 and therefore it’s unreasonable to expect a much higher price considering our current flat market conditions.  However in this case the price reduction worked.  The house sold earlier this month on September 2nd for a result just in excess of the last quoted price.
<a href="https://www.realestate.com.au/property-house-vic-hoppers+crossing-107436109">1/9 Albert Place, Hoppers Crossing</a>, - Situated 23 kilometres west of the CBD, Hoppers Crossing isn’t one of the most sort after locations in Melbourne.  However the median house price in this area is currently $330,000 and considering this is $260,000 below the metro median, it’s obviously going to attract buyers looking for affordable options within a commutable distance to the CBD.  There’s nothing quintessentially wrong with this property, however it does have a rather unusual looking blue facade that won’t hold wide appeal.  It was initially listed May 27th for $545,000 however it’s now advertised at $400,000-$425,000. It’s on a subdivided smallish block of land and yet homes in the same street, on larger blocks of land, have been selling in the mid $300,000 – that’s some $100,000 less than the current advertised price range.  Therefore until the vendor is willing to “meet the market”, it’s unlikely to achieve the desired result.
It’s always hard to be completely accurate assessing a property’s worth without viewing it, however we live in one of the most transparent real estate markets in the word and there is a myriad of information available to help home buyers assess comparable value before they dig into their wallets.  Purchasers are generally taking a cautionary approach to property buying.  Vendors who need to sell have been forced to “meet the market”, and if they’ve held their homes for an extended period of time, they have no doubt made a profit upon the initial purchase price.  However those that aren’t under pressure to sell will have to hold out for better times if they want to achieve the ‘wish’ price many of them are still expecting. Good property will sell in any market, but poorly located homes that are generally overpriced won’t!
Catherine Cashmore is senior buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
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If a vendor won't meet the market, the property will not sell

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Statistics are beginning to show an increase in the number of property investors taking advantage of what has widely been spruiked as a “buyer’s market”.  Not only is this evident in the increased numbers of buyers lining up outside open for inspections and attending auctions, <a target="_blank" title="AFG reports 18-month high" href="/news">AFG (the country’s largest mortgage brokering group) reported their mortgage sales hitting an 18-month high in August</a> – that’s some $2.7 billion, with 38% going directly to property investors. <a target="_blank" title="Owner-occupiers on the increase" href="/news">Owner-occupiers are also on the increase</a>, and according to the ABS, they have been for the past four months.  Even first-home buyers are coming back to the fold.  Mortgage Choice recently <a target="_blank" title="Mortgage Choice first home loan" href="https://www.propertyobserver.com.au/news/first-home-buyer-numbers-up-mortgage-choice/2011082551291">reported a marked increase in first home loans </a>making up 35% of all loan approvals in June compared with an average 27%. 
Considering all the evidence points towards purchasers increasing, not decreasing, why then is turnover 20% down on this time last year and also roughly 6% lower than this time during arguably the worst period of the GFC in 2008? 
It’s true there’s still a lot of overpriced stock and vendors not willing to reduce expectation.  These are the vendors who don’t need to sell, and therefore can afford to hang out for weeks on end hoping some hapless purchaser will love the home so much they’d be prepared to pay a premium.  Vendors love reaping the benefit while the market is suffering unsustainable booms such as the 20% rise we had at the beginning of 2010 – however these booms are always followed by market corrections as part of the typical ebb and flow of the property cycle and thus leave many unprepared to moderate expectation. It’s easy to spot the overpriced listings – just watch for the properties that change agency hands every four to six weeks as each agent attempts to “educate” the vendor on price.  In the end agents often have no choice but to shed the listing and concentrate on the stock they can sell.
However, there’s another problem hounding the market – an abundance of poor-quality stock marketed principally for investors and has little attraction for owner-occupiers.  It’s an old adage in real estate, but one that holds up to scrutiny:  “Good real estate sells well in all markets” – and in the current market there’s a surfeit not ticking the right boxes – hence the reason turnover has been so low. There’s plenty of stock available, but with the emphasis firmly focused on low quality rather than low quantity. 
The Australian Housing and Urban Research Institute recently reported that 25% of investors sell within a year of purchasing. The exact reasons for such a high percentage is not specified, however it’s a concerning statistic and an indication large numbers are not seeking the right advice.  If a vendor is trying to sell after only one or two years of property ownership, a market correction can have serious implications on their profit and loss scenario. It’s one of the reasons property ownership should always be viewed with long-term spectacles. Until you’ve held property through all stages of a market cycle, you can’t call yourself a seasoned investor and you risk your best intentions of property ownership failing miserably.  
Building wealth in property has its key firmly locked in long-term capital appreciation and considering owner-occupiers principally fuel the market, it’s imperative to focus on property that holds lasting appeal for this demographic. Get this formula right, and even on the sliding side of the property cycle, losses will be minimised and gains maximised.  However as a property investor you’ll face a mine field of advice from financial advisors, sales agents, property planners, developers, not to mention numerous magazines and books all promising the road to riches – and never more so than in a downward phase of the property cycle. Some advocate buying apartments, others land, and everyone has their own opinion on the “hot” suburbs.  But understand that there’s no one golden egg to property investment, and everyone’s individual needs must be assessed based on their own financial circumstances.  Furthermore, the landscape has changed rapidly over the past few years with a marked increase in high-rise accommodation marketed mainly at investors, over standard single-level subdivisions, which is where most home buyers would rather locate.
 However, it may not be wise to hold back, because if you think we’re heading for further falls any time soon, think again.  We live in a country with a rising population, where the best seats in our major cities have been taken and no one’s all that eager to move into the outer-metropolitan or regional areas where land is arguably overpriced due to hefty development overlays.   The housing market is both fragmented and fickle.  It’s made up of individuals like you and me with different needs and different budgets. Each piece of real estate has its own intrinsic quality – and with a lack of good stock, it’s reasonable to assess that there are always going to be areas of the market that outperform. 
Therefore, before you purchase take some time to think about what stands out about the property you’re interested in.  It could be located in the best street in the suburb, or situated on the largest north-facing block of land – have the best light and biggest balcony in the block, or hold the lasting attraction of period appeal.  Whatever the reason, be careful what you choose and if you do find yourself selling in a soft market, it’s more likely you’ll still come out winning.
Catherine Cashmore is senior buyer advocate for <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. 
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Property is a long-term game

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Spring is here, and it’s a buyer’s market isn’t it?  Well, not quite – we may have formally entered spring, but don’t be fooled – the traditional buying season doesn’t really kick off until after the AFL grand final.  No one wants to run an auction on grand final day, therefore we’ll see existing stock peter out as agents work to tie up any loose ends on properties already scheduled for auction, and a short delay  marketing new stock until we move closer to the event. 
Media reports are still telling us house prices are softening – however this isn’t the case across the board. Although market has been suffering “low” demand, it’s not suffering “no” demand. Homes in the $500,000 to $800,000 “affordable” price bracket presenting quality are not only selling well, they are producing some difficult buying conditions for current property shoppers The last thing you’d expect to see in a cautious market is heated bidding and above average prices; however this is what’s happening in certain areas of the real estate landscape – principally the price bracket that attracts investors and the main demographic of home buyers. 
This is partly due to continuing volatility in the stock market and a political landscape that is currently in disarray.  Therefore there’s been a slow but steady increase in the number of investors who have moved their attention towards more tangible assets (a number we’ve seen increase over the last three weeks as a company and a trend that seems to be playing out generally).  This isn’t surprising when you take into account there are 2,500 property trusts set up in Australia every week.  Moreover, the banks are awash with deposits, and as a result have been wooing investors with cheaper rates and lower fees for both fixed and variable loans.  The small increase in rental stock particularly in Melbourne (good news for tenants) is a direct result of this investor activity. 
Therefore news this week from the Australian Housing and Urban Research Institute that 25% of investors sell within a year of purchasing is less than reassuring for anyone thinking of taking the plunge. Most mistakes are made when investors focus on property that is marketed principally for their demographic.  Small one- and two-bedroom apartments in high-rise blocks attract nice yields, but don’t generate much price appreciation.  This is because it’s owner-occupiers who fuel price growth, so choosing the right property in the right suburb is a case of appealing to those looking from a lifestyle perspective, as well as an investment perspective. Get this formula right, and even on the sliding side of the property cycle, losses will be minimised and gains maximised.  Considering the apartment market is currently awash with stock – with more in the pipeline – it’s therefore extremely important to proceed with care. 
So what’s ahead for spring?  Well, it’s not going to be an easy ride.  It’s a common misconception to think of our housing market as a large living, breathing beast that rises and falls as a single entity.  However, the housing market is both fragmented and fickle.  It’s made up of individuals like you and me with different needs and different budgets. Each piece of real estate has its own intrinsic quality – unlike stocks, it’s impractical to put off buying, and then expect to quickly secure the exact replica of the same product a few months on at a reduced price. Part of purchasing well is understanding we’re in an “opportunistic” market. We live in a country with a rising population, where the best seats in our major cities have been taken.  No one’s all that eager to move into the outer-metropolitan or regional areas where land is arguably overpriced due to hefty development overlays. Therefore taking advantage of a buyer’s domain means being ready to act when you see something that represents a good long term acquisition – after all, you’ve got to be in it to win it. 
Australia’s predicted surge of 35 million by 2050 – 8 million in Melbourne alone – suggests at the current level of growth, Australia is falling short of 40,000 homes a year.  That’s quite a statement and needs to be qualified considering demand for new homes is generally weak. In truth it’s not the amount of homes constructed that’s the issue, but the areas they’re located in. New housing is largely concentrated in outer suburbs – classic “mortgage belt” neighbourhoods. These areas are subject to affordability, attracting first-home buyers and low-income families. As such, demand fluctuates depending on economic factors such as the first home buyer’s grant, which is geared towards regional development and new home projects.  Demand for new homes is low not just because of the costs involved in building, but because of the negative aspects of living in suburbs with poor infrastructure and limited employment opportunities. 
However, inner-city demand for housing is significant and rising, as anyone working at the coalface will tell you. The housing stock in areas where people want and need to live is not in abundance, and therefore with a rising population, it’s logical to reason that demand alone will once again force the price of well-located residential real estate upwards.  However the speed of those price rises will be moderated by affordability and in a two-speed economy we’ll see a widening split between rich and poor. As we move forward consumer sentiment is going to play a part in how fast prices rise.  Therefore if you’re purchasing now with the intention of selling in one, two or even three years’ time, you’d be better off renting and investing your money elsewhere.  However, if you have a long-term plan, open your eyes and take advantage of where we are now, rather than trying to predict the short-term future.
Catherine Cashmore is senior buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. 
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Buyers are picky, but well-priced, well-located homes are in great demand

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Emotion can be a very destructive force particularly when it starts to dictate our financial pathways. One of the first things Forex traders learn before stepping onto the trading floor is how to harness their emotions.  Without doing so, they risk making costly mistakes that can gradually undermine belief in their own abilities and prevent them acting when they need to.  Fear is possibly the most destructive emotion of all.  Although it can be our best friend allowing us to kick into “fight or flight” mode when facing real danger, it can also become an enemy when it leads us to make irrational decisions for fear of losing something we’ve created an attachment to.
It’s well known that home buyers are particularly prone to heightened emotions when purchasing property.  By the time they have identified a property that fits their requirements, they’ve created an attachment to the home to the extent of imagining their lifestyle, belongings, and future prospects as owners of the house.  The disappointment that eventuates when buyers miss out on a property because someone had deeper pockets can be so bitter, it can deter them from focusing on the next opportunity, or subsequently paying too much and suffering buyer’s remorse.
There’s nothing like the street theatre of a good auction with four or five willing participants and a never ending flow of tit-for-tat bidding to give a feeling somewhat akin to the suspense built up on an episode of Who Wants To Be A Millionaire.  However, in our current market – just heading into the milder weather of spring – it’s still a rare event, as this weekend’s mundane 55% clearance rate in Melbourne demonstrated.  This scenario usually indicates excellent buying conditions for purchasers.  However, if The Block was going to teach us anything, it demonstrated that when a property passes in to later be negotiated, an above-average price can still be achieved, belying the impression some may have of an ever falling market.  In other words, although not a lot is happening in full view of the buying public, there’s plenty happening behind the scenes – and the purchasers are not necessarily coming out winners.
Too many people are basing their perception of the market on whether a home sells under the hammer, when – only a few days later – we all too often witness a sale that outperforms expectations.  This was exactly what happened to the houses on The Block and a wonderful example why home buyers – more than ever before – need to be savvy negotiators and in control of their emotions.
It’s true that Watercress productions didn’t make a profit on the houses, but then they never intended to.  Had they wanted a profit they would have built the original plans for 16 units with undercover parking. However, don’t be fooled – they are the true winners of this game show.  They obviously made a fortune in ratings and also the lingering advantage of dominating the papers by simply playing on the public’s never-ending love affair with property.  On top of this, they bagged a great sale!  The homes were worth a little less than their reserves – and yet three out of the four sold well above their reserves!  What a wonderful result – and how was it achieved?  By playing on home buyers’ emotions.  Who lost?  Arguably the ones who paid above market value in what’s widely perceived a buyer’s market.
Becoming an expert in property is not an overnight process. It takes time, plenty of leg work and ample experience.  Walking through open for inspections, following auction campaigns and monitoring sale prices are just a small part of the process.  A good sales agent knows all the tricks needed to play on buyer’s emotional sensibilities to achieve a top result.  However buyers often think they can walk into the market with little or no experience and come out winning.  The results from The Block aptly proved this is not the case and even in a down market, with good negotiation skills, houses can and will sell above market value.
So if you really want to win the game as a property buyer – and take advantage of our current purchasing conditions - take a bit of advice.
<ul>
<li>Change your buying psychology and ignore the price quotes. The only way to educate yourself on price is leg work!  Get to know what the property is really worth, not what the selling agent’s asking.</li>
<li>Start research early – start when you’re thinking about buying and in the process of getting your finances organised, not when you’re in a position to impulse buy on a whim without market knowledge and risk paying too much.</li>
<li>Walk through open for inspections, follow auction campaigns, and start educating yourself on real market results – not those spruiked in the papers.</li>
<li>Know your limitations and more importantly, know when to walk away.</li>
<li>Finally – if you can see the value of using a tax accountant to achieve a good return at tax time and save money, employ the same strategy with property and pay an independent expert to help you do the same.</li>
</ul>
Catherine Cashmore is senior buyer advocate for JPP Buyer Advocates – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. <a href="https://www.jpp.com.au/">www.jpp.com.au</a>
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Leave emotion at the door when buying property

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Surprised by The Block result at the weekend? Well, don’t be. This is the new face of Melbourne’s auction market, and it’s not expected to change in the short term. Auctions don’t just need bidders – they need “confident” bidders, and confidence – as we’re all aware – is not in abundance at present.
But then Channel 9 never intended this to be a program focusing on the state of our current real estate market. The houses weren’t picked to make a profit on initial investment. After all, the homes are opposite a car park, in the shadow of the commission flats, with no off-street parking, average floor plans, and aside from the standard of renovation, they didn’t present any real competition to other better-located period properties in and around the surrounding area. The original intention for 37-43 Cameron Street, Richmond was a block of flats, and although this would have produced better returns on the land, Channel 9 had an idea that would ensure a much better profit if they kept the original homes.
This was a huge success for Watercress productions. The advertising attracted thousands to the open homes and the ratings were tremendous. No doubt they would have made a healthy profit from their sponsors, and overall it was a big hit. However, for those interested in property investing it highlighted a few important lessons we can all take on board.  Firstly, anyone thinking it’s easy to get rich quick from “flipping” will now I hope understand that this is not the case. Building wealth from property only safely works when incorporated into a long-term plan. Secondly, contrary to popular belief, most homes listed for auction sell via negotiation either before or after the auction.
This is particularly prevalent in a flat market – and very much the trend in our current Melbourne market.  Melbourne’s clearance rate this weekend came in slightly higher than previous weeks at 60%, however this percentage includes all properties that were sold before and on the day via pass in negotiation – and from my own experience this is the majority not minority.
So it was therefore no surprise to see only two of The Block homes sell on Sunday night (one under the hammer and another via negotiation) and – as is typically the case with passed in properties – I expect the remainder will sell over the next couple of weeks. However, with low confidence, and stock levels not producing an abundance of quality property to really inspire purchasers to part with their cash, the key to securing a good deal is firmly focused on a buyer’s ability to assess a home’s true value and successfully negotiate the purchase. It’s impossible to teach negotiation without employing practical experience. However, if you want to place yourself in the box seat, arm yourself with as much information as possible.  Here are a few tips to help along the way.
<ul>
<li>There are three numbers involved in real estate negotiation, and it’s important to get a rough idea of each before you formulate your negotiation strategy. What’s the property worth to you (market value + intention of use – is it an investment or your home for the next 20 years)?  What’s it worth to the vendor – (where’s the vendor’s expectation? Are they expecting a premium due to a costly renovation)?  What’s it worth to other buyers – (how fierce is the competition)? The first question is easy; however the other two will take more assessment. Start to gather information early, because the answers will help you assess the timing of your offer.</li>
</ul>
<ul>
<li>Try to establish why the vendor is selling. The agent may not be forthcoming if you ask directly, however questions such as “What settlement suits your vendor?” can give clues.  A longer settlement may signify they have not yet bought, while a shorter settlement may indicate they’re under time constraints to secure a deal. Vendors will sometimes accept a lower price if settlement terms are favourable – especially if they’ve purchased elsewhere.  Use the information wisely. </li>
</ul>
<ul>
<li>Note the property’s appearance. If the home is vacant (previously tenanted), you can assume it’s owned by an investor and they’ll probably preference a quick deal.  Going in with a lower price sweetened by a short settlement may be the way to proceed. However, if the house has been professionally furnished with show home written all over it, vendor expectation is likely to be high and they’re unlikely negotiate at the bottom end of the price range, especially at the beginning of the sale process.  In this circumstance, should you want to make a pre-auction offer, wait until the last week of the campaign, during which the selling agent will have hopefully tapered vendor expectation to meet the market.  There are many options and shades of grey, but above all, timing is crucial, so think before you act. </li>
</ul>
<ul>
<li>The longer a house has been on the market, the greater the pressure to lower price.  Look for those properties that have been hanging around for a while. Some houses don’t sell because they’re poorly located and don’t represent quality; however others may not have been marketed well or presented in an attractive manner. The latter can often present the best opportunity for a savvy buyer to pick up a bargain. </li>
</ul>
<ul>
<li>There’s always potential for multiple offers, especially if a house stands out from the crowd. Talk to the agent and ask him to keep you informed if he gets an offer in writing.  Nothing can be done until the vendor statement is available so request a copy to be e-mailed as soon it arrives. Find out how the sales agency handles multiple offers.  Some agencies only take a “best foot forward – one shot” approach. Others will favour the buyer who makes the first move by giving them a chance to increase their bid if someone offers more.  Don’t be afraid to ask questions. </li>
</ul>
<ul>
<li>If you love the home the priority is to secure the property within budget, rather than risk being gazumped with lengthy negotiation. In this circumstance preparation is the key – get the documentation checked, building inspection done, and your finance in place before you make a move.  An unconditional offer strengthens the chance of acceptance over a higher offer with conditions attached. </li>
</ul>
<ul>
<li>Consider employing a professional to negotiate on your behalf. One of the first lessons in negotiation is to place a “buffer” between you and the other party.  This takes emotion out of the equation and provides you with valuable thinking time while your advocate deals with the usual tricks selling agents employ. Don’t be afraid to pay for experience in order to potentially save thousands on price. </li>
</ul>
<ul>
<li>Finally don’t worry if you miss out because someone paid more.  Use the knowledge you gathered to help assess other homes on the market, and feel assured you’ll be better prepared next time.</li>
</ul>
Catherine Cashmore is senior buyer advocate for JPP Buyer Advocates – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. <a href="https://www.jpp.com.au/">www.jpp.com.au</a>
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Eight lessons to learn from The Block's lacklustre auction

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As a property investor you face a mine field of advice from financial advisors, sales agents, property planners, developers, not to mention numerous magazines and books all promising the road to riches  - and never more so than in a downward phase of the property cycle. 
Not unlike politics they offer a sea of differing opinions of what constitutes a good property investment, and it’s often hard to sort the wheat from the chaff.  Learning from past mistakes isn’t preferable when you’re investing large amounts of money, so it’s best not to make one in the first place.
Ironically, buyers often feel more confident purchasing into what’s traditionally known as a seller’s market rather than a buyer’s market.  Purchasing property that’s rising in value is understandably more assuring than reading weekly headlines that instigate fear we’re on the brink of a property crash. However, for those wise enough to step in whilst we’re still experiencing flat conditions, it’s important to identify a good buy from those that are simply substandard.
There’s currently a lack of quality real estate on the market – and to achieve maximum capital growth over the long term, it’s important your acquisition is attractive to owner occupiers (who fuel price growth) as well as holding appeal for long term tenancy in both downward and upward phases of the property cycle. Even in the current climate of market uncertainty, if you want to purchase a property that’s going to perform well over the long term, nine times out of 10the property you’re attracted to will also attract healthy competition from other buyers. 
With sound negotiation skills there’s always opportunity to purchase good property at a great price. However if you find yourself being lured into a deal that looks too good to be true - with little competition surrounding the home - it’s time to start asking why. Vendors have usually done their homework on market value prior to listing their property for sale.  Australians don’t give up their houses easily – it’s one of the reasons house prices in Australia are more likely to stagnate for periods of time than drop.  Most vendors will hold rather than sell in a downward market, and the value Australians place on their property is heavy with romantic aspiration.
Therefore, if it looks like they’re giving the home away it will be for one of two reasons – they’ve hit a financial dilemma and need a quick deal, or they want out of a non-performing asset or money pit. It’s important to make sure you walk in with your eyes open. 
It’s not unusual to hear about distressed sales, or quiet off-market listings, and in such circumstances a reduction in buyer competition is always advantageous.  However, this doesn’t mean the vendor is desperate to sell or the price is below market value, it usually means they will sell ‘if’ they can get the price they’re looking for.  So, before you whip out your wallet, make sure you’re not assuming otherwise. 
One of the most concerning acquisitions widely touted to investors are off-plan developments or house-and-landpackages.  Some sellers often disguise themselves as ‘free’ buyer agents picking up their fee directly from the developer.  When you purchase off plan you’re taking a punt the property will continue to appreciate in value.  With established dwellings it’s possible to trace the sales history for reassurance of capital growth; however off the plan dwellings don’t offer the same luxury. They come with a promise of high rental yields and depreciation benefits; however you have no guarantee that the look, feel and design will fulfil expectation.  You’ll usually be charged a premium on price (much the same as you would with a new car) – and like a new car, the price is unlikely to hold value without risk of initial depreciation once the word "new" has disappeared from the title.
Remember, as an investor, you’re not purchasing the home for yourself; you’re purchasing it to attract a long term tenant and – if you decide to sell – hopefully an owner occupier who’ll be prepared to dig deep.  Therefore identify the demographic you’re targeting. Who’s going to live in the property? Are you buying an apartment in an area which mostly attracts families who won’t be interested in your ‘shoe box’? Is the location desirable or are you purchasing on a main road, close to an industrial zone, or in a far off field away from local amenities? Is a flash renovation covering poor bones, or are there strict heritage overlays which will make future renovation or development problematic? 
Finally – if the word accommodation is preceded by ‘student’, ‘defence’, ‘serviced’, or listed with ‘huge stamp duty savings’ probably best to steer clear. It may look attractive on paper, but without considerable due diligence, there’s a good chance capital growth will be limited, on-going corporation fees invariably high, and you’ll find yourself walking into a greatly increased ‘risk v reward’ scenario. 
In most circumstances, a good property will sell well in all markets.  Therefore, cheap properties are cheap for a reason, so before you purchase, find out why.
Catherine Cashmore is senior buyer advocate for JPP Buyer Advocates – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. <a href="https://www.jpp.com.au/">www.jpp.com.au</a>
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Cheap investments might be more trouble than you bargained for

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The financial fallout in America is not going to do anything positive for investor confidence, however the agents this weekend were taking full advantage of the news to spruik the safety of investing in “bricks and mortar”.   Without exception, in each auction preamble, there were comments to the effect that “the share market is crashing, and therefore there’s no better time to turn to real estate”. 
Of course it’s in the best interests of real estate agents to spruik this message – but then, why not? Amidst all the conflicting headlines, the property market is happily singing its own tune. The clearance rate has been firmly in the 50s (the new “norm”) for some months now. We’ve had a flat market all year with minimal movement – interest rates are on hold, our economy looks secure – and if anyone was perturbed following the downgrade of America’s AAA rating, it wasn’t evident in property land this weekend. Numbers walking through opens and standing outside auctions gave the impression we’re in anything but doom and gloom. Of course, the crux is when will the window shoppers turn into buyers? 
While investors have flexibility to step in and out of the market as confidence dictates, there are increasing numbers of homes buyers who – having sold earlier this year during which stock levels were at a peak – are now looking to purchase. Data released this week shows evidence of this, with a marked increase in approvals for owner occupiers (and slightly less so for investors). Rate City reports the biggest increase in June, rising by 0.93 % or $9.60 billion since May. 
However, the physical evidence is also clear – during the torrential rain at Saturday’s auctions in Melbourne, there were large crowds of brolly-less buyers (not neighbours) standing outside home sales monitoring results –and getting very wet in the process! It’s inevitable those with pre-approvals will take action sooner or later, and when they do this will result in upward pressure over some sectors of our market. 
The amount of stock on market is another contentious issue. Good properties with motivated vendors priced to sell in the current market are not in abundance, however agents are reporting large numbers of off-market – (and on-market) – stock where vendor expectation is set firmly at prices that far exceed even the best times of 2010. These are the discretionary vendors who don’t need to sell, however, they will do so only if a buyer can be found who’ll pay their “wish” price! This is dictating where our market stands at the moment – it’s not going down – but neither is it going up at any great pace. 
How much prices move over the remainder of the year is debateable and will no doubt be moderated by affordability. However while we still have a supply/demand imbalance of both useable and available housing along with increasing GDP, labour shortages, a strong mining sector, low unemployment and an economy that is faring better than most other developing countries, we will continue to suffer the inflationary consequences. 
There may be a good proportion of our population who are financially feeling the strain, and this has certainly been evident in some sectors of the housing market. However an equally large proportion of our population is reaping the rewards of investment in a booming economy. As the old saying goes: the rich get richer while the poor get poorer. 
Of course, not a week goes by without numerous reports hitting the headlines suggesting we’re heading for a housing market crash. Despite plain facts, a minority always seem to find a public platform to beat the drum of impending disaster. It seems pointless to reiterate the arguments for and against; they have been repeated many times from all corners of the spectrum, and like politics - sides have already been staked out. 
The truth is no market or investment is risk-free and ultimately the future prospect of any one market is largely out of our control. As individuals we have little say over the weightier matters dictating the economy, but we do have the ability to minimise risk through a carefully strategised plan before making any financial decisions. Short of putting money under the mattress or taking an oath to live the remainder of our lives on the rental ladder for fear of the next looming financial disaster, risk minimisation is something we can control when deciding to purchase property. With this in mind, it’s important buyers take care to buffer any rollercoaster effects by minimising their risk profile and employing strong negotiation skills whilst purchasing well within their borrowing capacity. 
It’s just as possible to lose money through unwise investment in the real estate market as it is with any other financial acquisition. However the difference with property is it’s essential to our daily needs. Next in line to air, food, and water comes shelter. Unlike America and the UK, most people in Australia live in capital city locations – in Melbourne alone we have between 1500 - 1800 people entering the city each week. For each person that enters the country our total GDP increases – as our population grows, so does our GDP. The majority of immigrants actually bring wealth and income into the country – they are not all coming in poverty stricken on boats even if it is the popular perception. 
All of these people (including our growing generic population) need a place to call home. Whether they purchase or rent is immaterial, because we have a shortage of quality residential real estate, in the places where they need and ‘want’ to live (the city!). With increasing demand it’s inevitable – over a period of time - property prices will increase, and with this in mind, it seems fair to suggest the ‘right’ property presents a relatively low risk investment. 
So what are the boxes you need to tick to minimise risk? Well if before you step in; get some good independent advice,
<ul>
<li> Don’t exceed the budget.</li>
<li>Buy in an established residential location close to transport, shops, and jobs.</li>
<li>Buy a property that accommodates essential living needs with good space, light, secure off street parking, and at least the potential for quality of ‘lifestyle’. </li>
<li>And finally, buy a property that has long term ‘owner occupier’ appeal. Remember - it’s home buyers that essentially fuel the market, so to ensure the house or apartment will rent and hold value during any potential market downturn, purchase a ‘home’ – not just roof space!</li>
</ul>
Catherine Cashmore is senior buyer advocate for JPP Buyer Advocates – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.jpp.com.au/">www.jpp.com.au</a>
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Tips to minimising your risk in a turbulent market

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

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Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

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Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

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MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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[smartcode_project_cta:default project_id=152737]

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Catherine Cashmore

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