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Hawthorn is set to receive yet another apartment development, with Hawthorn Hill. Construction commences this month on the Grollo Group development, which has already sold 52 of its 63 apartments.
The one and two bedroom apartments, designed by architects ROTHELOWMAN, range from 41 square metres to 103 square metres, with prices starting from $385,000. Buyers can choose from a variety of additional options for the interior of their apartment, including colour schemes, brass and copper tap ware, and European appliances.
The new development will integrate two street-facing heritage buildings – a mansion, built in 1880, and the 1913 Salvation Army Citadel. Both buildings will accommodate apartments, and the mansion will provide the development’s entrance lobby. The remaining apartments will be set back from the existing façade.
“[The] intention has been to create an elegant response that celebrates and enhances the original form while delivering landmark Hawthorn residences that will remain relevant,” ROTHELOWMAN managing director Shane Rothe said.
Hawthorn Hill’s central location opposite Swinburne University will allow residents easy access to local private schools, public transport and bike lanes.
The development’s situation high on Burwood Road will give upper levels uninterrupted city views when construction is completed in mid-2015.
<a href="mailto:jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au</a>
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jduke-EHk3XBmHkn

Hawthorn Hill development to top Burwood Road

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The most recently released Real Estate Institute of New South Wales statistics, <a href="https://www.propertyobserver.com.au/news/sydney-s-vacancy-rate-increase-can-be-put-down-to-seasonality-reinsw/2014011367179?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">while discussing a seasonal increase in vacancy rate across Sydney</a>, noted that Orana is the tightest rental region across the state at 1.6%.
The region, which extends up from the Great Dividing Range to Cobar and Bourke in the west and to the Queensland border, covers just under 200,000 square kilometres and around 120,000 people.
It has three major localities, <a href="/news">Dubbo</a>, <a href="/news">Cobar</a> and <a href="https://www.propertyobserver.com.au/news/mudgee-continues-run-as-nsw-regional-hotspot/2013032159477" target="_blank">Mudgee</a> with vacancy rates noted to be 1.5%, 2.1% and 4.4% respectively, according to SQM Research. Interestingly, all three of these areas have been noted as the next best hotspot in the recent past, with 2012 seeing significant growth for all three. 
With this in mind, we decided to delve into the Dubbo market and find out just what the rental situation is like in this significant part of Orana.
More <a href="/news">statistics on Dubbo</a><a href="/news"> </a>
In Dubbo, with 32,327 people according to the Australian Bureau of Statistics’ latest 2011 Census data.
The ABS puts the weekly household income at $1,052, the median monthly mortgage repayment at $1,473.
The median age is 35 with an average of two children per family. The area has significant tourism drawcards, a health base and a large shopping centre, and serves as the central location for the entire Orana region being strategically located on highways and significant roads. It also hosts an airport that recently underwent an upgrade, as well as a main railway line.
The employment breakdown looks like the following:
<img src="/images/stories/2014/01/15/piechart.png" alt="piechart" height="237" width="400">
Source: Australian Bureau of Statistics
RP Data’s latest statistics put rent in Dubbo at $250 for units and $310 for houses. Hunting through rental listings, it seems that the $310 median will secure a three-bedroom one to two-bathroom house.
For instance, 12 Page Avenue (pictured below) was up for rent with Ray White Dubbo and is now under application. Close to Orana Mall, with a single lock up garage and ducted evapotated cooling the three-bedroom, one-bathroom house was asking $310 per week. RP Data notes that it was bought back in 1997 for <label></label>$108,000. Rent appears to have come down since October 2012, when it was asking $320 per week.
<img alt="main" src="/images/stories/2014/01/15/main.jpg" height="300" width="400">
With prices at $280,000 for houses and $207,500 for units, and 3.7% growth in the last year, it is not surprising that the affordable prices and relative rental yields are appearing attractive to investors. Interestingly, Dubbo has also made it onto some of the most recent magazine hotspotting lists, in some instances for a number of years in a row; however, it <a href="https://www.propertyobserver.com.au/new-south-wales/how-2013-s-predictions-held-up-we-put-them-to-the-test/2014011267166" target="_blank">underperformed last year against expectations</a>. Terry Ryder has been backing Dubbo for some time and in fact, in 2012, the early investors into the market would have seen <a href="https://www.propertyobserver.com.au/new-south-wales/regional-property-markets-outperformed-capital-cities-in-2012-terry-ryder/2012121258440" target="_blank">some significant yearly growth</a>.
"Whenever I mention Dubbo in the same sentence as the word “hotspot”, people are incredulous. For some reason no one expects anything exceptional to happen in places like Dubbo. But this is a vibrant regional city moving forward with increasingly large strides," he <a href="https://www.propertyobserver.com.au/hotspots/dubbo-ballarat-and-townsville-are-pumping-property-hotspots-proving-mining-s-not-the-only-show-in-town-terry-ryder/2012081255929" target="_blank">wrote in August 2012</a>. And he isn't the only expert predicting growth for the area, with PRDnationwide releasing a report in late-2013 that saw unit rents increasing 17.1% for a standard two bedroom unit over the previous 12 months, while three bedroom houses seeing a 7.1% increase. They believe <a href="https://www.propertyobserver.com.au/new-south-wales/median-rent-soars-17-in-regional-town-s-units/2013092665319" target="_blank">that the area is in a growth phase</a>.
There are a number of activities happening the area that have been broadcast on Twitter.
<blockquote class="twitter-tweet" lang="en">
NSW Fair Trading issued an urgent warning to be on the look-out for travelling conmen around Dubbo and Orange. <a href="https://t.co/gZIn0km7Ll" target="_blank">https://t.co/gZIn0km7Ll</a>
— Tradebusters (@tradebusters) <a href="https://www.propertyobserver.com.au/https://twitter.com/tradebusters/statuses/422930009808838656" target="_blank">January 14, 2014</a>
</blockquote>
<blockquote class="twitter-tweet" lang="en">
Dubbo's synthetic athletics track has started construction! Forward thinking council. 1st in reg NSW. <a href="https://twitter.com/Barnaby_Joyce">@Barnaby_Joyce</a> <a href="https://t.co/mnfyonjq4O" target="_blank">pic.twitter.com/mnfyonjq4O</a>
— Caroline Chapman (@CarolynChapman1) <a href="https://www.propertyobserver.com.au/https://twitter.com/CarolynChapman1/statuses/421872923666681856" target="_blank">January 11, 2014</a>
</blockquote>
<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/search?q=%23Dubbo&amp;src=hash" target="_blank">#Dubbo</a> <a href="https://twitter.com/search?q=%23Zirconium&amp;src=hash" target="_blank">#Zirconium</a> mine responds to submissions - ABC News (Australian Broadcasting Corporation) <a href="https://t.co/4aEgLQIGvp" target="_blank">https://t.co/4aEgLQIGvp</a>
— ABC Western Plains (@ABCDubbo) <a href="https://www.propertyobserver.com.au/https://twitter.com/ABCDubbo/statuses/422846603440181248" target="_blank">January 13, 2014</a>
</blockquote>
<blockquote class="twitter-tweet" lang="en">
Dubbo Council defends withholding of their next Keswick Estate land release, tonight at 7. <a href="https://t.co/xK3BYlP1uN" target="_blank">pic.twitter.com/xK3BYlP1uN</a>
— WIN News CentralWest (@WINNEWS_CW) <a href="https://www.propertyobserver.com.au/https://twitter.com/WINNEWS_CW/statuses/420776145055805440" target="_blank">January 8, 2014</a>
</blockquote>
So will Dubbo stack up over 2014? We will all be watching closely to see what the year holds for the area.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
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A walk through one of NSW's tightest rental markets

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In 1966, a British planner called <a href="https://www.theguardian.com/theguardian/2010/jun/27/maurice-broady-obituary">Maurice Broady</a> came up with a new term for the architectural lexicon: <a href="https://en.wikipedia.org/wiki/Architectural_determinism">architectural determinism</a>.
This was to describe the practice of groundlessly asserting that design solutions would change behaviour in a predictable and positive way.
It was a new phrase but the belief system behind it – that buildings shape behaviour – had allowed the heroes of architecture to make all kinds of outlandish claims.
A hopeful history
<a href="https://en.wikipedia.org/wiki/Leon_Battista_Alberti">Leon Battista Alberti</a>, an Italian Renaissance-era architect, claimed in the 1400s that balanced classical forms would compel aggressive invaders to put down their arms and become civilians.
<a href="https://en.wikipedia.org/wiki/Frank_Lloyd_Wright">Frank Lloyd Wright</a>, the US architect who designed one of the most famous buildings in America, <a href="https://www.fallingwater.org/63/about">Fallingwater</a>, similarly believed appropriate architecture would save the US from corruption and turn people back to wholesome endeavours.
British author and thinker <a href="https://en.wikipedia.org/wiki/Ebenezer_Howard">Ebenezer Howard</a> believed companies would be more efficient if their employees lived in village-like garden communities.
Swiss-born French architect <a href="https://en.wikipedia.org/wiki/Le_Corbusier">Le Corbusier</a> made claims about how his <a href="https://en.wikipedia.org/wiki/Villa_Savoye">Villa Savoye</a> building in France would heal the sick – and when it did just the opposite, he only avoided court because of the commencement of the second world war.
It took a long list of failures over the millennia before <a href="https://theconversation.com/explainer-what-is-postmodernism-20791">postmodern</a> theorists took to critiquing architectural fantasy with malevolent vengeance. The high-point of this trend was the delight shared over the demolition of the famously dangerous and dysfunctional <a href="https://en.wikipedia.org/wiki/Pruitt%E2%80%93Igoe">Pruitt-Igoe</a> urban housing complex in St Louis in the US.
It was designed by architects George Hellmuth, <a href="https://en.wikipedia.org/wiki/Minoru_Yamasaki">Minoru Yamasaki</a> and Joseph Leinweber to provide “community gathering spaces and safe, enclosed play yards.” By the 1960s, however, it was seen as a hotspot for crime and poverty and demolished in the 1970s.
<figure class="align-centre"><img width="400" src="https://c479107.ssl.cf2.rackcdn.com/files/38265/width668/jtc4qbzc-1387426104.jpg"><figcaption>The demolition of Pruitt-Igoe in 1972 fuelled resistance to deterministic thinking. Wikimedia</figcaption></figure>The loss of faith in architecture’s power has been regrettable. Architects’ well-meant fantasies once routinely provided clients with hope and sometimes even with results.
Without this promise, the profession was left inept before the better structural knowledge of engineers, the cumulative restrictions imposed by generations of planners, the calculations of project-managers and the expediency of a draughtsman’s <a href="https://en.wikipedia.org/wiki/Computer-aided_design">CAD</a> (computer-aided design) skills in turning a client’s every whim into reality.
Without fiction, architecture has become a soulless thing. But was determinism dismissed too soon? Is there a role for imagined futures without rationalist restrictions?
Restoring the faith
Just think of some of the ways architecture can manipulate your own experience. In his book, <a href="https://thehappycity.com/the-happy-city/">Happy City: Transforming Our Lives Through Urban Design</a>, US author Charles Montgomery points out that some environments predictably affect our moods.
The fact is that environments do affect us, regardless of whether by design or by accident. In 2008, <a href="https://www.schres-journal.com/article/S0920-9964%2807%2900493-8/abstract">researchers</a> in the UK found that a ten-minute walk down a South London main street increased psychotic symptoms significantly.
In <a href="https://www.researchgate.net/profile/Jan_Golembiewski2">my own research</a>, I find that the healthier a person is, the more a good environment will affect them positively and the less a bad one will affect them negatively. Mentally ill patients show about 65 times more negative reactivity to bad environments than controls and all these reactions translate directly into symptoms.
The same patients have about half the positive responsiveness. That’s fewer smiles, less laughter and a reported drop in feeling the “fun of life”.
But that’s not all. The potential for architecture is richer still. The ease with which architecture can embrace sublime aesthetics makes it great for generating awe.
Psychiatrists have found that <a href="https://www.psychiatrictimes.com/articles/have-you-ever-felt-awe-and-wonder">awe reduces the prevalence and severity of mood disorders</a>. Could sublime architecture even potentially save lives?
The psychological effects of architecture are difficult to prove, but difficulty doesn’t dilute the value of a building that hits the right notes and creates a sense of awe. Each building type has different functions, and for each there’s an imperative to use the building to help create an optimal mood, desire or sense of coherence, security or meaning.
<figure class="align-right"><img src="https://c479107.ssl.cf2.rackcdn.com/files/38266/width237/j8ztbzj2-1387426486.jpg"><figcaption>Awe reduces mood disorders: Gaudi’s Sacrada Familia church in Spain. Wikimedia</figcaption></figure>Fortunately, there’s a resurgence of belief that buildings can change behaviour, led by a few architectural journals: <a href="https://www.worldhealthdesign.com">World Health Design</a>, <a href="https://eab.sagepub.com">Environment Behavior</a> and <a href="https://www.herdjournal.com">HERD</a>.
Most of these focus on health care design, because that’s where behavioural changes have life and death consequences.
But nobody dares make any promises. As such, research rarely opens the black box of environmental psychology, leaving findings unexplained and prone to failure.
To give architecture back its mojo, a new interest in how architecture changes us must be fostered. Clients have to learn to trust architects again and research funding bodies have to re-gear to encourage research into how buildings affect our mood, health and behaviours.
Finally, architecture schools have to teach students how they might predict psychological, emotional, healing and functional effects.
All innovation, ultimately, is led by the imagination – even if that means taking risks and sometimes getting it wrong.
<hgroup class="profile-title grid-seven"><hr>
Jan Golembiewski is a researcher in Environmental Determinants of Mental Health at <a href="https://theconversation.com/institutions/university-of-sydney">University of Sydney</a>.
This article was originally published at <a target="_blank" href="https://theconversation.com/">The Conversation</a>.
</hgroup>
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Building a better world: can architecture shape behaviour? 

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Last year was a good one for sellers in Melbourne’s property market, with RP Data reporting an 8.5% rise in Melbourne home values from 2012. Buyers came out in droves and records were broken as low interest rates and foreign investors boosted the market. Here, we take a look back at some of Melbourne’s most exciting sales of 2013.
5) 2D Castlemaine Street, Yarraville
<img src="/images/stories/2014/01/15/1.png" width="450" height="339" alt="1">
The rise of Melbourne’s inner western suburbs continued last year, exemplified by the record breaking sale of this contemporary three bedroom Yarraville home, built in 2007. Split over four intertwining levels, with private balconies and a lap pool, the residence sold in September for $1.56m, the highest sale price ever recorded in the suburb.
4) 111 Alfred Crescent, Fitzroy North
<img src="/images/stories/2014/01/15/2.jpg" width="450" height="338" alt="2">
This two bedroom, single fronted Victorian terrace proved that location is everything. Buyers looked past the un-renovated property’s 1970s style interior and instead to its prime position across from North Fitzroy’s Edinburgh Gardens. The modest property also boasts easy access to the University of Melbourne, Fitzroy’s Brunswick Street and the Melbourne CBD.
According to Chambers director John Costanzo, the May 2013 sale exceeded expectations, selling for $1.41m - well above the reserve of $1m.
3) 13 Hume Street, Armadale
<img src="/images/stories/2014/01/15/3.jpg" width="450" height="300" alt="3"> 
Another single fronted Victorian style home made waves last year. This Armadale residence was purchased by the sellers in 2009 for $855,000. After completing a quality renovation, the property was auctioned on October’s record breaking Super Saturday, making it one of 1,385 auctions listed on the day.
With a record breaking attendance at the Jellis Craig Bennison MacKinnon auction, the sale came down to six bidders, with agent Andrew McCann reporting that there were a handful more that didn’t get a chance to make a bid.
“On average, those homes around 200 square metres would be expected to sell for $1.3m to $1.4m”, he said.
13 Hume Street sold for $1.73m, breaking the record for the highest sale price of a single fronted home under 250 square metres in Armadale.
See over page for the Top Two
 
 
 
 
<hr class="system-pagebreak">
 2) 52 Lechte Road, Mount Waverley
 
<img src="/images/stories/2014/01/15/41.jpg" width="450" height="292" alt="41"> Further east, this Mount Waverley home also broke records.
The residence is divided into two wings, separated by an outdoor area with an in-ground pool and covered patio. The two bedroom house also has multiple indoor entertaining areas, including a double garage integrated into a rumpus room.
The property’s Friday evening twilight auction didn’t dissuade punters, with 120 people in attendance. It sold for $970,000, above its reserve of $850,000.
1) 9 Medford St, Altona 3018
<img src="/images/stories/2014/01/15/julia_house_550.jpg" width="450" height="286" alt="julia_house_550"> 
The sale of former Prime Minister Julia Gillard’s Altona residence generated more public interest than almost any other property in 2013. According to <a href="https://www.realestate.com.au/blog/altonas-answer-to-the-lodge-julia-gillards-melbourne-home-for-sale/">realestate.com.au</a>, the property garnered more than 5800 views on the website in its first week of listing – eight times more than the norm for Altona.
Sold on one of the final weekends of the year, the auction attracted hundreds of spectators. The single story brick home, which Gillard purchased for $140,000 in 1998, sold for $921,000.
Which 2013 sales interested you? 
<a href="https://mce_host/jrichardson@propertyobserver.com.au" target="_blank">jrichardson@propertyobserver.com.au </a>
 
 
 
 
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2013's five stand out Melbourne sales that had everyone talking

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If you’ve already packed in your 2014 resolutions then there may just be hope yet, with Smartline Personal Mortgage Advisers saying that, in fact, it’s the longer term goals we make that are most important.
Noting that you should have a five-year goal and an action plan for property, they said that mid-term goals force you to stay on track and that observation of clients had found five-year goals to be the best approach.
“While it is true that patience can be a virtue, this shouldn’t be confused with just waiting for something good to happen,” Smartline’s executive director, Joe Sirianni, said.
With many financial goals being short term, such as wanting to buy a house, a few are also very long term, such as wanting five investment properties in 25 years.
“Five-year goals require an ongoing commitment to ensure they are achieved, but the end result doesn’t feel like it’s going to take forever to achieve – the finish line is not that far away,” Sirianni said.
Five-year goals may be buying two investment properties, or reducing debt over the period, or substantial renovations.
So, think to yourself, where do you want to be this time in 2019?
Let us know what your goals are.
<address> </address> <address><a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a></address> <address> </address>
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Five-year goals the secret to success: Smartline

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What everybody is telling us
The most common opinion about property prices in Australia is that our real estate is significantly overpriced or, that we are even experiencing a “property bubble”.
Evidence cited in support of the argument that prices are too high is that, in the past, median property prices were three times the average household disposable income but now that multiple is as high as six times the average.
An alternative measure, used less frequently in debates, is the ratio of house prices to rental costs – this ratio is now almost double of what it used to be a couple of decades ago.
Both these statistics show that property prices have increased twice as much as household disposable incomes and rents in the last twenty odd years. Therefore, it is easy to jump to a conclusion that, from a historical perspective, residential real estate in Australia must be significantly overpriced. But is this a correct conclusion?
There is a problem
As outlined in my <a href="https://www.propertyobserver.com.au/news/the-analyst-in-search-of-a-property-bubble-arek-drozda/2014010666725" target="_blank">last article about a property bubble in Australia</a>, the above measures are rather inadequate for the purpose of describing short and medium term fluctuations in property prices, and whether these prices are “excessive” or not.
The key problem with the above ratios is that they have higher values now than in 2000’s, which in turn were higher than in 1980’s, which were higher than in 1970’s, which again were higher than in 1950’s… You get the picture. It is frankly impossible to draw any rational conclusions using these measures.
An alternative approach for better insight
To better depict what is actually happening in the market, we need to consider relationships between several factors that directly influence property prices – not simplistic measures like ratios of prices-to-rents or prices to household disposable incomes.
I have selected three different measures that, when presented together, describe more accurately what is happening with property prices. These are:
<ul>
<li>incomes – which reflect affordability; I opted for adult full time average weekly earnings which are more relevant to a property buyer cohort and are a less artificial measure than household disposable incomes; </li>
</ul>
<ul>
<li>rents (from CPI index) – which are indicative of a relative cost of accommodation for renters (since renting is a substitute for owning a property there is a direct relationship between the costs of both accommodation options); and</li>
</ul>
<ul>
<li>cost of buying – which is indicative of the relative cost of accommodation for owner occupiers (I am using a proxy measure which is simply equivalent to interest payments on a 100% loan on a median priced house); </li>
</ul>
I acknowledge that the “cost of buying” measure has its critics but there is a simple explanation why this is the correct statistic to use for direct comparisons with rental costs and affordability and not property prices. In particular, these days hardly anyone purchases a property outright so, the price of a property is only a secondary consideration in the purchase decision. 
Yes, you read it correctly. Far more relevant for the purchase decision is the annual cost associated with buying a property - comprising of mortgage payments, council and water rates, maintenance costs, etc. Even more importantly, consideration also needs to be given to how this cost compares with rental costs, since renting is a close substitute for buying.
That is, the maximum affordable price of the desired property is worked out based on the buyer’s existing financial resources (i.e. cash and/or equity in currently owned property) as well as the buyer’s borrowing capacity (which is directly linked to buyer’s income and prevailing interest rates).
All in all, in order to proceed with the purchase, personal or family financial capacity has to at least match the annual cost of buying.
Paying off the loan principal is omitted in the analysis since it equates to savings and is therefore deemed irrelevant (i.e. every dollar that is paid off becomes owner’s equity that can be drawn upon in the future). Again, I acknowledge criticism of this point of view but I leave detailed explanations of its merits until next opportunity. 
With this background, let’s now compare information on personal incomes, rents, costs of buying and property prices over the last 27 years.
The simple truth
<img width="470" height="299" src="/images/stories/2014/01/14/LOGIS.png" alt="LOGIS">
 
Source: Based on ABS data
The chart reveals quite an interesting picture. In particular, despite a six-fold increase in property prices, the cost of buying a median priced house in Australia has risen less than two and a half times in the corresponding period (the actual Sep-13 index value is 234.1).
The increase in the cost of buying is substantially less than increases in personal incomes (adult total full time weekly earnings May-13 index value is 341.5) as well as in the cost of renting (rent component of the Consumer Price Index Sep-13 value is 298.6).
In other words, relative to the incomes of Australians working full time, the cost of buying is significantly lower now than it was 27 years ago. And rents are also a lesser burden now than they were in 1986. Therefore, if housing was affordable then, it is even more affordable now.
Undoubtedly, this conclusion will raise a few eyebrows since it contradicts many “informed opinions” that circulate in the media. So, let’s examine the chart a bit closer to see how well it reflects the reality.
A few words about the chart 
The reason for selecting 1986 as a starting point is simply because this is when official ABS house price index data begins. This was neither an extremely low nor extremely high price point, hence is a quite reasonable year to use for benchmarking.
It is also very close to 1985, a year that Steve Keen, economist and a prominent media commentator, nominated as the year when “houses were affordable” and that he uses as a reference point in his analysis. So, no bias here whatsoever.
Let me also stress the fact that there is no conflict between this chart and the two ratios mentioned at the beginning of the article. That is, the chart clearly shows that property prices had grown at twice the rate of incomes and rents over the 27 year period.
However, in addition, this chart also illustrates the relationship between incomes, rents and the cost of buying which provides the explanation as to why property prices have risen so dramatically.
That is, current property prices are the result of incomes, rents and the cost of buying keeping in a relative balance over an extended period of time.
Turn over page for "The real story behind the numbers"
 
 
 
<hr class="system-pagebreak">
The real story behind the numbers
The story that this chart tells is surprisingly accurate. In particular, a combination of explosive rises in property prices and interest rates in late 1980’s resulted in buying costs reaching a level that could be considered a “bubble” (this was a period of high volume of sales and high prices).
Although the “recession we had to have” shook buyer confidence, prices did not fall. It was simply because a drop in interest rates brought down the costs of buying quite fast and this provided strong support for the then price level.
The cost of buying kept falling for almost a decade, to the extent that by early 1998 it was only half of what it had been in 1990. On the other hand, incomes and rents grew steadily, compounding the perception that properties were getting extremely cheap.
It meant prices had a lot of room to move. And they moved indeed – as much as three times in some locations in a relatively short period of time.
This jump in prices was merely a catch-up as Australians rediscovered their true financial capacity. It wasn’t until 2008 that a combination of continuous price growth and hikes in interest rates pushed the cost of buying again into an unaffordable territory.
The unfolding Global Financial Crisis quickly deflated this bubble – a reduction in buyer confidence led to a small drop in prices and the RBA swiftly engineered a big cut in mortgage rates to bring rates down to historically low levels and, in effect, dramatically reducing the cost of buying.
By March 2009 the cost of buying reached a bargain level again. These developments, combined with an additional stimulus for first home buyers, generated quite a lot of demand for residential properties, pushing prices higher in a very short period of time. The RBA reacted again, lifting rates in a hurry and the cost of buying caught up with the strongly growing incomes and rents at the time.
That brings us to present times. Renewed financial troubles reduced buyer enthusiasm for property. A moderate fall in prices from the peak reached in mid-2010, and interest rates retreating back to historically low levels, brought about a reduction in the costs of buying yet again.
However, the falls in those costs were not as sharp as in 2009, or as prolonged as in the 1990’s. Nevertheless, from a historical perspective, the reduction in the cost of buying was enough for real estate to be considered if not an outright bargain, at least well within the financial capacity of working Australians. And then prices started rising again…
Historical perspective with real data
The ultimate check of accuracy for the information presented on the above chart is a comparison of actual prices from the past and present – and the match is pretty good, as this sample of statistics for Sydney demonstrates:
 
<table cellspacing="0" cellpadding="0" border="0"><tbody>
<tr>
<td width="163" valign="top">
 
</td>
<td width="156" valign="top">
June 1987*
</td>
<td width="120" valign="top">
Sep 2013
</td>
<td width="130" valign="top">
Change
</td>
</tr>
<tr>
<td width="163" valign="top">
Median House Price
 
</td>
<td width="156" valign="top">
$104,000
(Sydney annualised)
</td>
<td width="120" valign="top">
$627,000 (Jun’13)
(Greater Sydney)
</td>
<td width="130" valign="top">
6.0 times higher
</td>
</tr>
<tr>
<td width="163" valign="top">
Median rent: 
- 3B house 
</td>
<td width="156" valign="top">
$8,580
($165 p.w.)
(Metropolitan, dwelling)
</td>
<td width="120" valign="top">
$28,600
($550 p.w.)
(Greater Sydney)
</td>
<td width="130" valign="top">
3.3 times higher
</td>
</tr>
<tr>
<td width="163" valign="top">
Median rent: 
- 2B apartment 
</td>
<td width="156" valign="top">
$7,280 p.a.
($140 p.w.)
(Metropolitan, dwelling)
</td>
<td width="120" valign="top">
$24,960 p.a.
($480 p.w.)
(Greater Sydney)
</td>
<td width="130" valign="top">
3.3 times higher
</td>
</tr>
<tr>
<td width="163" valign="top">
Full Time Adult Total Earnings
(Seasonally Adjusted)
</td>
<td width="156" valign="top">
$24,528 p.a.
($471.70 p.w.)
(NSW Aug’87)
</td>
<td width="120" valign="top">
$75,634p.a.
($1,454.50 p.w.)
(NSW May’13)
</td>
<td width="130" valign="top">
3.1 times higher
</td>
</tr>
<tr>
<td width="163" valign="top">
Buy cost proxy (100% mortgage on median priced house)
</td>
<td width="156" valign="top">
$16,120
</td>
<td width="120" valign="top">
$37,306
</td>
<td width="130" valign="top">
2.3 times higher
</td>
</tr>
<tr>
<td width="163" valign="top">
Standard Variable Mortgage Rate
</td>
<td width="156" valign="top">
15.5%
</td>
<td width="120" valign="top">
5.95%
</td>
<td width="130" valign="top">
62% lower
</td>
</tr>
<tr>
<td width="163" valign="top">
Mortgage cost as % of full time adult wages
</td>
<td width="156" valign="top">
66%
</td>
<td width="120" valign="top">
49%
</td>
<td width="130" valign="top">
26% lower
</td>
</tr>
<tr>
<td width="163" valign="top">
Ratio of full time adult wages to median house price
</td>
<td width="156" valign="top">
4.2
</td>
<td width="120" valign="top">
8.3
 
</td>
<td width="130" valign="top">
2 times higher
</td>
</tr>
<tr>
<td width="163" valign="top">
Rent as % of full time adult wages (house)
</td>
<td width="156" valign="top">
35%
</td>
<td width="120" valign="top">
38%
</td>
<td width="130" valign="top">
Relatively unchanged
</td>
</tr>
<tr>
<td width="163" valign="top">
Ratio of median price to median rent (house)
</td>
<td width="156" valign="top">
1
</td>
<td width="120" valign="top">
1.8
</td>
<td width="130" valign="top">
Almost 2 times higher
</td>
</tr>
</tbody></table>
Source data: RBA, ABS, Housing NSW, Stapledon UNSW.
* Note: 1987 data used in absence of full set of statistics for 1986
Final comment
The chart presented in this article is a simple construct but is sufficient to explain what has happened with Australian property prices over the last three decades.
I am open to a constructive criticism but frankly speaking, in my extensive research on the topic, I did not come across anything else that would provide such accurate narrative to real life events.
The ratios favoured by economists and some property market commentators do not offer much of an insight in comparison. Since the validity of these ratios has been undermined, at least in my view, I believe it is time to find more suitable alternatives to better explain what is happening in the property market in Australia.
To conclude, the message is clear – based on the income capacity of working Australians, residential property in this country is not overpriced and prices are far from bubble territory. We can afford current prices – and we can afford them more than in 1986. The only hurdle is that it requires accepting a level of debt that many may not feel comfortable with.
 
<hr>
 Arek Drozda is an independent analyst who has worked in the public and private sectors for over 20 years in business development, data analysis and in building geographic information systems.
 
 
 
 
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Australian property prices explained: Independent analyst

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The Real Estate Institute of New South Wales' latest Vacancy Rate Survey saw the number of vacant inner city Sydney properties for  rent increase by 0.2% over December 2013, bringing the number to 1.8%, however they note it is seasonal and no cause for alarm. With the seasonal rise led by the outer suburbs, which saw an increase of 0.3% to 1.6%, middle suburbs saw a 0.1% increase to 1.9%. REINSW president, Malcolm Gunning, said that it is largely seasonal and that supply issues are still in force. “We have a long way to go in regard to the major supply issues facing Sydney. We expect to see vacancy rates take a downward turn when January figures are released next month," said Gunning. “In 2014 REINSW will continue to lobby the NSW Government to ensure that changes are made to help encourage more investment in the property market,” he said. In other areas of New South Wales seasonal increases were also noted. The Hunter region saw a 0.3% rise to 3.5%, however the Illawarra and Wollongong bucked the trend by declining by 0.1% to 2.1% and 1.7% respectively. Similarly, regional areas also saw vacancy falls, such as the Murrumbidgee's 0.5% decline and the Mid-North Coast recording a significant drop to 1.7% from 2.8% previously. The Northern Rivers and Coffs Harbour also saw decreases. Many of these may be attributed to their holiday lifestyles.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Sydney's vacancy rate increase can be put down to seasonality: REINSW

<html><body>Despite Australian Taxation Office figures showing significant growth over the five years to the end of June 2012, SMSF Professionals' Association of Australia (SPAA) director of technical and professional standards, Graeme Colley said that there is little suggestion it has been "exponential or irresponsible". SMSF borrowings increased from 1.1% per year in 2008 to 3.7% in 2012, the ATO statistics reveal, however Colley said that it must be remembered that this is just 3.7% of the entire SMSF pool of more than $500 billion. “This hardly suggests that trustees are borrowing without giving it due consideration," said Colley. When looking at it in dollar terms, he notes that the average amount borrowed in 2008 was $122,000, while the average amount borrowed in 2012 was $357,000. “SPAA’s understanding of the current situation is that borrowing has not increased significantly since 2012 and remains a very small proportion of the total value of loans made by banks and other financial institutions," he said. “The lending criteria placed on superannuation funds that borrow for limited recourse borrowing arrangements is more stringent than loans taken out by individuals for residential property and commercial property – a fact often overlooked.” He also noted that the borrowings are not just for property assets, but also any asset class permitted under superannuation legislation. <a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a></body></html>

SMSF average borrowing at $357,000, but not "irresponsible": SPAA

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The latest housing finance data released by the Australian Bureau of Statistics has found that new home building loans in November 2013 remained strong, with the Housing Industry Association (HIA) noting that it is a positive for the home building activity.
Despite this positive number, with owner occupier loans for new dwelling construction increasing by 2.3%, loans for the purchase of new dwellings fell by 4.3% over the month.
“Overall, this means that the number of loans to owner occupiers for new dwellings was flat during November but the further gain to construction loans is a positive for new home building activity in early 2014,” said HIA’s senior economist, Shane Garrett.
“Lending for new homes is up substantially on a year ago and the strong state of the market is also captured by the 1.2 per cent rise in loans for existing home purchase during November,” Garrett said.
“The value of loans to investors rose by 1.5 per cent during November and this is consistent with the new mood of confidence in Australia’s housing market.”
Over the month, owner occupier loans increased by 0.6% in trend terms, and with total lending for housing growth being steady, it is of much disappointment to some that first home buyers remained at a record low in the latest release.
The Real Estate Institute of Australia particularly emphasized this point, with president Peter Bushby noting the overall increases seen in New South Wales, Tasmania, Queensland and Western Australia.
“The proportion of first home buyers in the number of owner-occupied housing finance commitments fell to 2.3% compared to the October figure of 12.6% and is the lowest figure since data began to be collected in July 1991. It is far lower than the long-run average proportion of 19.9%, despite eight interest rate cuts since November 2011,” said Bushby, urging the government to review first home buyer support.
Tasmania was the stand out with a 2.4% overall increase from a low base, while the ACT dropped the most, by 1.4%.
Premier Lara Giddings is confident with this number, noting that the property sector is improving.
“Low interest rates and the Tasmanian Jobs Package seen owner-occupied home loans rise for nine consecutive months and grow faster than every other state in the country,” Giddings said.
“ABS figures also show a steady pick up in the number of first home buyers, which has been supported by the Government’s $30,000 First Home Builder’s Boost.”
Currently, the state’s treasury figures show that there have been 23 successful applications for the $30,000 boost since its November increase, and that there are more applications being processed.
“The full $30,000 First Home Builders Boost is available until the end of 2014, even after the $7000 First Home Owner’s Grant for existing homes expires at the end of June 2014,” she said.
<a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Housing finance data a mixed bag 

<html><body><div class="article-fulltext">
The new year has opened with some significant breakthroughs for those preparing for bitcoin to hit the mainstream, with major international game developer Zynga announcing a partnership with BitPay that will enable people to use bitcoins while playing games such as the phenomenally successful Farmville series.
The trial has been heralded as a breakthrough for BitPay, but also bitcoin more generally.
Closer to home, two Australian start-ups are exploring the potential of bitcoin payments for smaller and more common payments such as parking and bills.
Parkhound, a start-up that enables the leasing and sharing of parking permits and spaces took its first payment in bitcoin last month. Co-founder Robert Crocitti says the innovative step was an unanticipated step forward for his team.
“The first bitcoin payment wasn’t actually our decision. We’re just a start-up so we’re happy to try and accommodate any customer that comes our way. Many are more innovative than us, so we took our first payment in bitcoin when one of them asked us if we could,” Crocitti says.
He adds it was lucky they were using the Shopify payment system, which already had the built-in capacity to take digital currency payments.
As part of the growing group of companies beginning to translate bitcoin from the first adopters to more mainstream consumers, Crocitti says 2014 is likely to be the breakthrough year.
“Bitcoin has gained a lot of prominence in the last two years, but I think the big clincher will be when it’s available for people to pay using their mobile phones <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/technology/jumping-ship-and-into-a-start-up-to-ride-the-breaking-digital-wallet-wave/2013100210848">through NFC</a> or some other kind of chip technology so you can use bitcoin via your phone at bricks-and-mortar store. This is likely to happen this year with a range of apps,” Crocitti says.
One Melbourne-based start-up is already bridging the gap directly, enabling Australians to pay their electricity and water bills with bitcoin.
BitBillPay.com.au has processed over $7,000 worth of bills already. The payments are made via CoinJar, an exchange and payment system that <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/financing-a-business/venture-capital/coinjar-raises-500000-dollars-for-global-growth/2013120311294">recently received $500,000</a> in investment funding from <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/financing-a-business/venture-capital/blackbird-venture-capital-update-and-tips-500-start-up-applications-and-nine-deals-later/2013110711121">Blackbird Ventures</a>.
Ryan Zhou, co-founder of CoinJar and founder of BitBillPay.com.au explains on the latter’s website he isn’t making any money from the service, and outlines the potential he sees for Bitcoin.
“I deeply believe that the true potential of Bitcoin lies on its intrinsic ability to provide a solid digital-native financial foundation to incrementally improve how people use money. It has never been easier to positively change the status quo of payments today with the power of a widely accepted decentralised currency,” Zhou says.
Bitcoin is set to be one of the biggest start-up stories of 2014, with over 140 bitcoin start-ups listed on investment information aggregator AngelList and several local start-ups beginning to gather momentum.
A range of Australian start-ups are working out ways to ride the bitcoin wave, including booming BTC.sx which <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/financing-a-business/cashflow/bitcoin-is-booming-and-so-is-this-start-up-thats-processed-14-million-in-six-months/2013112211225">announced in November</a> it had processed over $14 million in transactions in six months, and <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/planning/business-planning/the-impact-an-accelerator-can-have-two-slingshot-start-ups-share-their-stories/2013081410470">Slingshot accelerator</a> graduate World BX.
Bitcoin exchange World BX founder Nick Trkulja <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/financing-a-business/arrest-of-silk-road-founder-is-good-news-for-australian-bitcoin-entrepreneurs-despite-the-drop-in-value/2013100410869">told StartupSmart in October</a> that the digital currency’s growing respectability boded well for its future uptake.
“This is an exciting space to be in right now. Over the next year in particular, there will be a big shift in the ecosystem as it moves beyond the early adopters,” Trkulja said.
“The Bitcoin revolution was started online, and online retailers will increasingly accept it. This has helped to fuel its growth and spike the price, and we’re beginning to see bricks and mortar retailers follow.”
Evan Lucas, a market strategist at IG Markets, an investment and trading company that trades in a variety of assets including bitcoin, <a href="https://www.startupsmart.com.au/government-and-regulation/us-bitcoin-court-ruling-welcomed-with-regulation-needed-to-boost-potential">told StartupSmart</a> in August that regulation will be essential for the digital currency to become mainstream.
“If it wants to become mainstream, it is going to have to subject itself to regulation. That will be a very interesting situation for those involved to subject themselves to that kind of scrutiny,” Lucas says.
“It’ll certainly be growing in its reach more and more as people start to look at it, but it’s still a very infant currency and the concern that a lot of analysts have about bitcoin is its regulation.”
<hr>
This article first appeared on <a href="https://www.startupsmart.com.au" rel="nofollow">StartupSmart</a>.
</div></body></html>

Bitcoin to become increasingly mainstream in 2014: Online games, parking and everyday bills

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

Joel Robinson

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

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

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

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

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

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

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

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Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

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La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

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<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

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Jennifer Duke

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