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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

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.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

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.

Joel Robinson

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.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Jennifer Duke

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