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We’re not in a property bubble, according to CommSec chief economist Craig James, but we are experiencing a “balancing” in Sydney.
With a slowdown in national home prices recorded by CoreLogic RP Data, and mixed results across capital city housing markets, James noted that there is no need for the Reserve Bank to progress with macroprudential controls on property investors.
“In essence, the market is correcting itself with more supply coming on to the market as evidenced by new listings and softer demand for homes in response to the higher prices. There is no bubble – demand ran ahead of supply in some capital cities like Sydney but markets are balancing,” James said.
With house prices down 0.3% in November and apartment prices up 0.1%, it’s not surprising that some are wondering if the growth is now over.
ANZ’s David Cannington has also focused on the easing down from the mid-2014 peak, but notes that positive home buyer sentiment and fundamentals still exist.
“Sydney house price gains are leading the pack, with a pick up in population growth driving strong underlying housing demand and solid capital growth attracting residential property investors,” wrote Cannington.
“Nonetheless, we expect house price momentum will ease heading into 2015 with house price growth in Sydney and Melbourne in particular likely to be weighed down by deteriorating affordability.”
Over 2015, he says that the affordability gap will weigh on price growth in Sydney, Melbourne and Perth.
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jduke-EHk3XBmHkn

No bubble and no need for macroprudential control: Craig James

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<img src="/images/2014/12/02/henry%20dec%202%20one.jpg" width="150" style="float: right;">
Foreign buyers continue to be a talking point for property fanatics in Australia.
Co-CEO of Chinese listing website Juwai, Simon Henry, pictured right, spoke to Property Observer from Hong Kong about some widely held perceptions of foreign buyers and how they really affect the Australian property market.
<ul>
<li>People get quite up in arms about foreign investors pricing first home buyers out of their suburbs. What do you think?</li>
</ul>
The latest Parliamentary report is probably the best indicator. There are a few key things to look at here. One is – is foreign investment good for Australia? Number two – is it pricing the home buyers out of the market? And number three – is the FIRB process actually working?
It found that, firstly, foreign investment is very good for Australia. It adds supply, that actually keeps prices low. If it wasn’t for foreign investors coming into the country prices would probably be higher than what they are. About 9% of the Australian population is employed in the construction industry and it is probably one of the things that has actually helped us be one of the few countries in the OECD to stay out of recession.
In terms of the first home buyers they found that the price point at which the foreign investors are buying is not the same as the first home buyer and that the two segments are almost completely segmented and unaffected by each other.
<ul>
<li>If this is the case, then why do you think we do still have a number of people saying that they are pricing out the first home buyers?</li>
</ul>
The evidence doesn’t suggest that, so I think it’s just misinformation. There’s a lot of media hype around the foreign investors in terms of what they’re doing and what they’re buying and the price point. I think this report shows that they are two very separate markets.
The report also finds that the average property bought by a foreign investor is $900,000 plus, which is well out of the price range of the first home buyer. The report also says that the Chinese shouldn’t be singled out in terms of a foreign buying group because the United States, for instance, are a very close second.
<ul>
<li>What sort of areas are we seeing Chinese buyers purchasing in?</li>
</ul>
We’re definitely seeing them purchasing in the major cities, you’re looking at Melbourne, Sydney, Brisbane and the Gold Coast. Within those areas we're usually looking at the inner city, which is where most of the new builds happen, as the hottest spots.
But then your domestic Chinese audience, those Chinese Australians, typically buy in the high-concentration Chinese areas. In Melbourne that’s Doncaster, Box Hill and in Brisbane it’s Sunnybank Hills, in Sydney it’s Chatswood.
We’re dealing with two groups here. One is the domestic audience and one is an international audience.
<ul>
<li>Do you think in areas where there is established property that there is any illegal property activity occurring?</li>
</ul>
Definitely not. Anyone can buy a property in Australia as long as it has FIRB. If you look at some of the suburbs around, say, Double Bay or Mosman, these are multi-million dollar properties. They are established properties, however it is shown that people who buy these properties have approval to do so.
<ul>
<li>It looks as though it might take a while for public perception to come around to this. What’s your perspective?</li>
</ul>
It’s a shame really as the effect of foreign investment on Australia is so radically good. Instead of looking at foreign investors and saying ‘wow they’re driving up prices’, my view is that we should be saying ‘wow, thank you – you helped us avoid a complete recession in Australia during very hard times.’
<ul>
<li>Looking at your listings portal, Juwai, how many extra activity have you seen over the past 12 to 24 months?</li>
</ul>
We’ve definitely seen a lot of interest shifting towards Australia. It’s the second most popular country [on our portal] and the USA is number one, Canada is number three. So it is currently competing for foreign investment and there are other countries around the world with a lot less restriction [around foreign ownership] – the United States for example has almost no restrictions. It’s really a case of what amount will go to Australia to help fuel the Australian economy.
<ul>
<li>Some investors say that they can’t go overseas and buy a property in China and that it seems a little unequal that they can buy a property here. What do you think?</li>
</ul>
I certainly see where people are coming from. I lived in Thailand for 10 years. However it’s also just a case of demand. If you are a resident in China and worked and lived there for a year then you can buy a property. There’s also 1.4 billion people in China and they don’t require foreign investment in the property sector because they have an aggressive domestic supply.
Australia, on the other hand, has a massive shortage of housing. With population growth expected to be strong we’re looking to build around 400,000 new dwellings over the next couple of years just to handle the immigration supply. We need foreign investment in Australia.
Australia is a lucky country and it does have an immigration policy that brings more people to the country. With record low interest rates it causes people to be able to borrow more money and to buy property of higher value, but the major issue is supply. Whether that’s as a result of government policy, restrictions, the release of land, all those things – if you want to keep prices under control then supply has got to increase.
<ul>
<li>What is the future looking like for foreign investment?</li>
</ul>
We think that the market for foreign investment will continue to grow. We see it as a fantastic opportunity for every country that accepts foreign investment to benefit from it greatly. The only country in the world to have more foreign investment restrictions [than Australia] is Switzerland. Australia’s right up there already with the restrictions placed on foreign investors. Australia has been fortunate enough by its geolocation to Asia and its reputation that it still attracts a good number of foreign investors and this will continue.
It’s driven by the major motivations of Chinese looking at property: Investment, education and immigration.
Australia has a great reputation in terms of education and destination marketing.
See over page for the top 10 Sydney suburbs attracting Chinese buyer interest.
<hr class="system-pagebreak">
Here are Juwai's 10 Sydney suburbs for Chinese buyer interest at present.
<ol>
<li>
<a href="/news">Mosman</a> 
</li>
<li>
<a href="/news">Bondi Beach</a> 
</li>
<li>
<a href="/news">Campbelltown</a> 
</li>
<li>
<a href="/news">Willoughby</a> 
</li>
<li>
<a href="/news">South Coogee</a> 
</li>
<li>
<a href="/news">Castlecrag</a> 
</li>
<li>
<a href="/news">Sydney</a> 
</li>
<li>
<a href="/news">Cremorne</a> 
</li>
<li>
<a href="/news">Bowral</a> 
</li>
<li><a href="/news">Cremorne Point</a></li>
</ol>
Source: Juwai
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Foreign investment has pushed prices down, not up: Q&A with Juwai's Simon Henry

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A new Underquoting Advisory Panel was launched late last month by the Real Estate Institute of South Australia (REISA) with the aim of assisting the CEO and the Professional Standards Committee with progressing formal complaints about underquoting.
Effectively, they will look at the information and evidence to see whether it is sufficient to progress the complaint.
They mention that along with the legislation, the REISA requires members to provide an honest, researched and realistic appraisal of market value through the Code of Conduct.
Their official release notes that from “time to time” they are advised of possible instances of underquoting, and note that it can be “a very difficult complaints to manage and determine due to the various opinions and views on pricing representations with regard to selling real estate.”
The new panel will guide the initial complaint, subsequent referral and determination by the Professional Standards Committee.
They also referenced the <a href="/expert-insights/investing/victorian-election-real-estate-dramas-underquoting-and-election-stunts">previo</a><a href="/expert-insights/investing/victorian-election-real-estate-dramas-underquoting-and-election-stunts">usly mooted approach to underquoting that became an election issue last week</a>, noting that the South Australian legislation is even tougher than the suggested Victorian laws. In South Australia, the agent is required to give evidence of their genuine estimate to the vendor and the reserve is linked to the vendor’s acceptable price.
They also put out a reminder as to the rules of price guidance.
REISA considers that the following six examples are in breach of the legislation:
<ul>
<li>Offers considered over $400,000</li>
<li>Lots ranging from $400,000</li>
<li>Properties ranging from $400,000 to $1m</li>
<li>Price guide $400,000</li>
<li>Price guide $400,000 - $440,000</li>
<li>Advising purchasers of comparable sales (if one of the sales is less than the prescribed minimum advertising price and / or if the range of sales exceeds the 10% limit rule).</li>
</ul>
It is an offence to mislead on this matter which, in South Australia, can lead to a $20,000 fine, one year imprisonment, loss of commission and disqualification from being a registered agent or sales representative.
The four panel members have not all been officially announced but will include m3 Property’s Kym Dreyer and Herron Todd White director Bill Waterhouse.
An alternative suggestion to further regulating underquoting came from Miriam Sandkuhler. She suggests that <a href="/expert-insights/its-time-to-appoint-a-real-estate-ombudsman">a Real Estate Ombudsman is needed</a>.
{mijopolls 66}
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Should all states follow the Real Estate Institute of South Australia’s Underquoting Advisory Panel?

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BIS Shrapnel’s Outlook for Residential Land, 2014 to 2019 report has forecast that Sydney’s upturn will continue but the big performers appear to be Queensland’s Brisbane, Gold Coast and Sunshine Coast. Perth is, however, expecting a downturn over the period.
Sydney’s sales rate in the outer suburbs is notable for being close to its early-2000s level, explains BIS Shrapnel’s senior manager and report author Angie Zigomanis. Despite the increase in sales there has been an extended downturn in Sydney’s land market resulting in a continued shortfall in new housing.
The markets in Brisbane, Gold Coast and the Sunshine Coast can be looked at more as a recovery after extended weakness, with new house and land packages looking affordable relative to established houses with minimal upwards movement for land prices.
Melbourne and Adelaide are forecast to see growth, at a moderate pace, over 2015 – even in the low interest rate environment – with healthy levels of new house building seen in both.
“Demand for land in both the Melbourne and Adelaide markets is showing some increase, underpinned by low interest rates,” said Zigomanis.
“In Melbourne, lot production bottomed out in 2013/14 after the land market was oversupplied due to new subdivisions coming online following the market peaking in 2009/10. As a result, the stock of completed lots had to be progressively sold down before the next round of development could occur,” he said, noting that any excess has now been absorbed by an uptick in land demand, rising prices and low interest rates with sell outs in estates and off the plan sales common.
“Adelaide experienced mild growth in lot production in 2013/14, with low interest rates and limited price growth improving affordability and encouraging greater demand for land. However, the upside is more limited, with slower population growth expected, resulting in milder growth in demand for new dwellings in general. The market is also being impacted by the removal of the Housing Construction Grant at the end of 2013,” he said.
National roundup begins on the next page. Please click below.
<hr class="system-pagebreak">
Sydney – In an upturn
Falls in lot prices (median lot price of $290,000 in 2013/2014) and rises in outer Sydney house prices have improved the attractiveness of new houses compared to established.
“The peak in land prices in 2004/05 meant that a significant premium had to be paid to buy a new house compared to the cost of an established home,” said Zigomanis.
“With established houses being much more affordable, demand for new houses collapsed in the following years and lot production fell to a low of 1,400 lots in 2009/10, with significant pent up demand also developing.”
Key driver: Low interest rates and improved affordability for new houses.
Lot sales have increased, with around 5,500 lots per annum estimated to have been completed for 2012/2013 and 2013/2014.
8,100 lots per annum forecast to be complete over five year to 2018/2019
Forecast peak of 9,000 lots in 2016/2017.
Brisbane – Entered early stages of recovery
Early recovery phase entered in 2013/2014, as lot production rises from 4,700 lots in 2012/2013 to 6,000 lots, though it remains below 8,900 lots per annum produced in the 10 years to 2011/2012.
“The improvement in lot production in 2013/14 was underpinned by the emergence of pent up demand for new houses after the sustained period of low new dwelling activity following the GFC,” said Zigomanis.
“Cuts to interest rates have improved the affordability equation for Brisbane home buyers, while weak land prices over the last five years have also made new housing more attractive.”
Key driver: Net interstate migration expected to pick up with strong price growth in southern states to encourage some to look to Queensland. Deficiency of dwellings to remain.
Lot production forecast to continue to rise and peak at 9,000 lots per annum by 2015/2016. Lot sizes have failed to maintain affordability, but are larger on average than other capitals.
Gold Coast/Sunshine Coast – Strengthening expected
A collapse in demand was seen after the GFC, with just 600 lots produced in each in 2012/2013, the lowest in 20 years.
“This lack of new dwelling supply has resulted in an underlying deficiency of dwellings emerging in both markets in 2013/14 – particularly for new houses – and we are seeing a recovery emerge,” said Zigomanis.
“Low interest rates have boosted affordability, which in turn has allowed for this pent up demand to be released. Land production in 2013/14 increased to an estimated 1,475 lots on the Gold Coast and 950 lots on the Sunshine Coast.”
Key driver: Local economic conditions becoming positive, major non-residential projects commencing, tourism sector increasing, interstate migration improving.
Lot production forecast to continue to strengthen, to peak at 2,100 on the Gold Coast and 1,800 on the Sunshine Coast by 2016/2017. 
Melbourne – Working through oversupply
Number of new estates increased strongly from 2008/2009 to 2012/2013, with just under 19,000 lots per annum completed in Outer Melbourne from 2008/2009 to 2011/2012. A downturn in demand was seen in 2010/2011.
“The excess of completed lots coincided with a 39% decline in new house building approvals in Outer Melbourne between 2009/10 and 2012/13, which in turn exacerbated the oversupply of land,” he said.
“As a result, new lot completions more than halved to 9,100 lots in 2013/14; the lowest level since 1997/98.”
Key driver: Low interest rates, population growth.
With stronger demand seen in 2013/2014, new developers have taken to selling future stages off the plan, with a solid increase in lot completions expected for next year, with a pea of 16,000 lots expected by 2015/2016.
Adelaide – Pick up after strong declne
An uptick was seen in lot production for outer Adelaide in 2013/2014 after a 42% decline from a 2008/2009 peak of 5,200 lots to 3,000 in 2012/2013.
Low interest rates and resulting improving affordability and declines in median land price have pushed up demand and lot production to 3,400 lots in 2013/2014.
Key driver: Low interest rates, $8,500 Housing Construction Grant.
Demand for Outer Adelaide is expected to remain stable. An average of 3,200 lots per annum is expected until 2018/2019. 
Perth – Moving into a downturn
Perth’s outer suburbs’ market, including Mandurah, rebounded strongly after the GFC downturn, with record migration and population growth, along with the mining boom, to drive lot production from 6,800 lots in 2011/2012 to 13,200 lots (a record) in 2013/2014.      
“A key to this rebound in activity has also been the improved housing and land affordability that emerged after prices stagnated over 2007-2012,” he said.
“With average land sizes, and therefore prices, also falling in Perth, improved land affordability relative to established houses also increased the demand for new houses and land.”
Key driver (causing downturn): Resource sector easing, resulting drops in migration inflows, population growth slowing, lowering purchaser confidence.
Record levels will be sustained over 2014/2015, according to BIS Shrapnel, but lot production will drop to a low of 8,800 lots by 2017/2018.
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Sydney demand to continue as South East Queensland gains momentum: BIS Shrapnel’s national forecast

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If negative gearing is abolished, then renters should be prepared to pay 50% or more extra according to Chan &amp; Naylor.
While it has recently been argued that the government would save $5 billion in the first year by abolishing negative gearing, Chan &amp; Naylor’s Ken Raiss said that wider economic uncertainty and social dislocation would result as investment properties would quickly be re-directed into the hands of commercial landlords who would charge more.
With 96% of public housing provided by private investors, the majoring being ‘mum and dad’ investors, Raiss explains that as a result rental properties are available at varying levels of affordability.
Raiss argues that if the tax effect is taken out, then the 90% stock owned by mum and dad investors with one or two properties (73% an 18% respectively) will be bought up by commercial landlords who will charge more in order to get the higher rental yields that they typically see on their commercial portfolios.
Raiss notes that yields for commercial property are typically 50% above residential property.
 “Like any other public utility, as soon as they enter private and more entrepreneurial hands then prices will go up, and in the case of public housing this could lead to a rental price hike of as much as 50% over time, resulting in the government having to shoulder the weight of providing a much larger percentage of housing for tenants and social dislocation for those unable to receive government housing,” said Raiss.
“Small business owners wouldn’t invest in a new or start up business if they couldn’t claim their losses, so there is no reason why property investment should be any different,” he said.
In fact, his view is that property investors face a significant challenge of buying somewhere with enough growth that it offsets all their costs in the meantime.
“Property is the biggest asset most people will own, and so they need to surround themselves with professionals who can offer advice in making considered and informed decisions, such as buying in the right market and property cycle or choosing a property with the opportunity to raise equity through renovation or improvement, boosting both capital value as well as rental yield,” he said.
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Be prepared to pay 50% more rent if negative gearing goes: Chan & Naylor

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The demand for fixed rates hit a nine month high in November as an increasing numbers of people choose to fix their mortgage, according to Mortgage Choice’s latest national home loan approval data.
Fixed rate loans accounted for 26.98% of all loans written last month, a slight uptick from 26.64% recorded in October.
Mortgage Choice spokesperson Jessica Darnbrough said that it is likely borrowers want certainty around their repayments as rates stay low.
“A growing number of borrowers are beginning to realise that while rates are low, they can’t stay this way forever. And as such, they are looking to fix their mortgage now while rates are sitting at historically low levels,” said Darnbrough.
“Furthermore, a lot of lenders slashed the interest on their suite of fixed rate products at the end of July and we are finally starting to see the result of those rate movements coming through in our data.”
Variable rates with an ongoing discount, however, remain the most popular product.
In New South Wales, fixed rates accounted for 34.13% of loans written in November, compared to 28.65% in Queensland. Meanwhile, South Australia recorded 20.23% fixed loans, while Victoria and Western Australia noted 19.77% and 16.94% respectively.
Darnbrough said it’s unsurprising to see variable rates still popular as they do remain low.
“That said, fixed rates are also very competitive which is why we are seeing an increasing number of borrowers opting for the safety of a fixed rate product. Of course with interest rates currently sitting at historical lows and Australia’s lenders competing aggressively for business, borrowers can be assured of securing a good rate regardless of which product type they opt for,” she said.
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Fixed rate demand at nine month high: Mortgage Choice

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Queensland’s new real estate laws are now in place, despite much pushback from property industry members across the country.
The Queensland Property Occupations Act, passed through Parliament in May, will bring many changes to the property scene in Queensland. Most notably, price guides for properties going to auction are now outlawed.
Not only were the <a href="https://www.pertyobserver.com.au/finding/location/nsw/29164-reis-go-head-to-head-over-queensland-auction-price-guide-debate" target="_blank">Real Estate Institutes head-to-head over the issue</a>, but estate agent <a href="/news/qld/dark-ages-descending-on-queensland-as-auction-price-guide-ban-defies-common-sense-john-mcgrath">John McGrath called it “dark days” for the industry</a>.
Harcourts Queensland chief auctioneer Mitch Peereboom doesn’t expect any great changes to his role.
“The price guide obviously is the biggest issue, but ultimately in my role the impact of the price guide will be minimal because auction’s about having no price and the buyers determining the market place,” said Peereboom.
“The seller gets the transparency and determination from the buyers and the buyers get transparency as they are able to come forth with their best offer of what they believe the property is worth without any inhibiting from the seller in terms of what they are looking for.”
In fact, he notes that more buyers will inspect because there is no market price.
The Real Estate Institute of Queensland’s CEO Antonia Mercorella said that the rules are about cutting red tape, simplifying transactions and increasing transparency. The REIQ has been supportive of the laws.
“It’s been a long time coming, but it’s been worth the wait for these new laws,” Mercorella said.
“They’re specifically tailored to the realities of the modern real estate profession and will make life much easier for agents and consumers. The laws eliminate a lot of costly paperwork that’s been hampering agents and they feature practical reforms which will simplify real estate transactions in Queensland.”
She pointed to other key changes including the replacement of seven separate agent appointment forms with one, removing requirement for the agents to disclose to a buyer the commission they are receiving from the seller, extending the statutory limit on lengths of appointments for a sole exclusive agency from 60 days to 90 days, deregulating maximum commissions for sales and property management, and losing the requirement for a separate Form 30 Warning Statement.
<a href="/news/bid-for-homes-online-on-new-property-listings-website">Online auctioning platform ExchangeHouse</a> has also called the new laws beneficial for the industry, with director Mark Jamieson saying that the government "clearly" wants to limit subjective and opinionated price guides and information that could mislead.
"It is possible for real estate agents to provide objective, meaningful and accurate information to buyers, within the new act’s guidelines. It is all about the auction process and framework," said Jamieson.
“Our innovative online auction methodology requires the vendor to set a reserve price for their property upfront. The reserve is never disclosed to the market and is used to determine where bidding will start which is a first for the industry. Agents no longer need to provide a price guide under the ExchangeHouse method. Buyers can confidently inspect properties knowing where bidding is due to start well before bidding opens," he said.
“This method will bring greater transparency and efficiency around the property transaction process for agents, sellers and buyers. We believe it works within the new legislation and achieves the government’s goals of reducing red tape and misguided information.”
Other industry experts notably speaking out against the ban include News Corp commentator <a href="/news/qld/queenslands-auction-price-guidance-ban-legislation-is-madness-andrew-winter">Andrew Winter (who has called it 'madness’)</a>, the <a href="/expert-insights/buying/coercion-will-be-rife-under-new-queensland-price-guide-laws-rebaa">Real Estate Buyer's Association of Australia</a> and <a href="/expert-insights/investing/reinsws-malcolm-gunning-supports-early-publishing-of-reserve-prices">REINSW' Malcolm Gunning</a>.
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Price guide ban now in place for Queensland auctions

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New reforms have been introduced to the Western Australian Parliament regarding landowners and compensation when public works are undertaken on their property by the state government.
The Land Acquisition Legislation Amendment (Compensation) Bill 2014 was introduced to parliament yesterday.
The bill aims to reinforce private property rights when essential services need work, for instance power lines, and looks at the full impact of the land being used,  explained Premier Colin Barnett.
“The legislation will ensure the property rights of landholders - including pastoral leaseholders - are taken into account when Government decisions are made, and that those decisions are fair and transparent,” said Barnett.
“It will expressly require just compensation to be paid in cases where an interest in land is acquired for public works where there is loss of amenity, value of enjoyment, or changes in the aesthetic environment of land\,” he said.
He also noted that the Bill encourages utilities to use land already government-owned.
“Costs that are currently imposed on landholders will be appropriately transferred to the government authority undertaking the work,” he said.
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Reforms to clarify WA private property rights introduced to Parliament

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The Big Four banks continue to dominate Australia’s mortgage market, but when looking at refinancing figures it’s clear that the non-major lenders are taking an increasing share.
According to comparethemarket.com.au, an analysis of AFG’s latest data found non-major lenders responsible for 32.1% of refinanced mortgages in the last 12 months. When looking at all mortgages this figure dipped to 26%.
Comparethemarket.com.au’s Abigail Koch said that home owners who are looking to refinance are increasingly willing to consider small lenders, as opposed to first home buyers who stick to the mainstream lenders.
“Where first home buyers likely lack confidence and prefer the perceived safety of the ‘Big Four’, Australians refinancing, having gone through the mortgage process previously, are more comfortable using smaller lenders if it means they can secure a larger loan, lower rate or lower fees. As a result, they may be more willing to compare a variety of providers,” she said.
It seems the refinancing space offers opportunities for non-major lenders.
“Refinanced mortgages comprise just over a third of all AFG-introduced mortgages annually, it is a very substantial portion of the overall market. Additionally, data also shows that the percentage of first time buyers is steadily declining across every state in Australia,” she said.
First home buyers were noted as more likely than investors to opt for a non-major lender, with 29.1% of first timers opting for a non-major in the last 12 months, compared to 23.5% of investors. Of course, it’s worth remembering that investors are a major part of the market, and their numbers are substantially higher than first timers at present.
In fact, while first time buyers accounted for 10.2% of mortgages brokered by AFG, investors totalled 39.1% of business.
Investors may consider the big four as they have “greater financial muscle” when it comes to financing multiple properties, explained Koch.
“The GFC took its toll on smaller lenders. Consequently, customers looking to acquire a mortgage felt more comfortable going with the brands they had known their whole lives, as they felt they would be a safer bet,” she said.
“Now that the economy has stabilised, first time buyers are taking notice that the ‘smaller guys’ may have greater agility than the majors in terms of reducing interest rates and ongoing fees, which has helped them to steal a greater market share."
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First home buyers stick to Big Four as refinancers show confidence in non-majors

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The latest Finder Reserve Bank Survey, with 37 experts on the panel, has found that a rise in property prices is largely expected to occur next year.
Money Expert at Finder, Michelle Hutchison, said that this is bad news for first home buyers who are already struggling.
“If you’re a first home buyer struggling to get into the property market this year, next year isn’t looking to get any better,” she said.
Of those surveyed, 69% expect the price gains to continue.
“There were also 14% of respondents who expect property prices to stabilise, while 17% are betting on property prices to fall next year,” she said.
While it isn’t necessarily expected to improve, it may not worsen too much either.
“Most of the experts in the survey are expecting property prices to continue rising however, they don’t expect the higher costs will dramatically impact the first home buyer market,” she said.
The majority, 64%, expect the level of first home buyers active in the market to remain similar to this year, with one in five expecting fewer people will be able to enter market.
“With the national median property price across our capital cities hitting $545,000 in October – 8.9% higher than the previous year – it’s a good time to jump into the property market if you are prepared,” said Hutchison.
“But there’s no point in rushing in you’re not ready, because overstretching your budget could have serious consequences if interest rates rise next year.”
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“Next year isn’t looking to get any better” for struggling first timers: Finder

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

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Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

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Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

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Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

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The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Jennifer Duke

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