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A new report from BIS Shrapnel has said that recent concerns around a Sydney property market downturn are “premature” with strength expected over 2014/2015 and 2015/2016.
Just yesterday, <a href="/expert-insights/buying/four-reasons-the-property-boom-is-ending-propell">Propell National Valuers predicted that the property boom in Sydney is ending - for these four reasons</a>. Terry Ryder suggested that <a href="/expert-insights/investing/no-substance-behind-sydney-property-boom">the property boom is without "substance"</a> in November last year, and <a href="/expert-insights/buying/median-values-fall-for-the-first-time-in-a-year-lets-get-some-perspective">RP Data noted the first median value decline since May 2013 last month</a>.
According to BIS Shrapnel, behind the strength of the property market are low vacancy rates, low interest rates, relatively attractive yields and the expectation of capital gain.
BIS Shrapnel’s Apartments in Sydney Suburbs 2014 to 2019 report points to strong off the plan sales, which will underpin further rises in new high density apartment construction.
No oversupply is expected, but vacancy rates should ease and reduce pressure on prices “by the time the Reserve Bank starts looking at tightening interest rate policy” the report notes, suggesting that off the plan sales will come off their peak over 2016.
Senior manager and report author for BIS Shrapnel, Angie Zigomanis, said that the peak in apartment prices and sales by 2004 did result in the market being overvalued and oversupplied.
“The subsequent downturn resulted in the oversupply being absorbed by 2006/07, but it took several more years of rental growth before returns increased sufficiently for residential property to become attractive to investors again,” said Zigomanis.
“By the time interest rate policy was eased at the end of 2011, the Sydney market was coiled like a spring, and ready to take off,” he said.
“Successive cuts to interest rates continued to reduce the gap between rental income and mortgage repayments, causing investor demand to surge and drive up prices.”
KEY FIGURES
$45 billion
Total borrowed in the 12 months to March 2014 for the purchase of residential property in New South Wales
76%
The proportion this is above the 2010/2011 total
9,932
High density dwelling approvals in 2010/2011
20,354
High density dwelling approvals in the year to March 2014
18%
The estimated amount Sydney unit prices have risen over the past two years
15%
Forecast increase in unit prices over the next two years
Overseas buyers’ influence was also noted by Zigomanis, noting they’ve been buying apartments within inner Sydney and selected centres.
Gen X and Gen Y are also starting to contribute, with owner occupiers’ presence growing. Notably, however, investors are still the overarching dominance in the Sydney apartment market.
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jduke-EHk3XBmHkn

Sydney slowdown fears “premature”, 15% unit growth tipped over next two years: BIS Shrapnel

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The Northern Territory are rolling out their first government-subsidised rentals, with a tender now issued on the property management for the apartments.
Properties across Darwin, Palmerston and Katherine will be available under the Real Housing for Growth head-leasing initiative.
Minister for Housing Matt Conlan said that the selected firm will be responsible for 200 new affordable rental dwellings that are currently in the pipeline for construction. Tenants are expected to move in over the 2014/2015 financial year.
“The property manager will manage these properties like any regular private rental and will screen all tenants to ensure they meet the eligibility requirements, have a sound rental history and are able to afford the subsidised market rents,” said Conlan.
The first 50 units, in <a href="/news">Karama</a>, are nearing completion and will be offered to specific tenants – eligible key service industry workers – at 30% below market rate.
“Eligible child care workers, hospitality staff, nurses, tradespeople and retail workers will soon be able to apply to rent the units at the subsidised rate of around $365 for the two-bedroom and $295 for the one-bedroom units,” he said.
“The head-leasing initiative will increase the supply of affordable rental properties across the Territory to help attract and retain the key service industry workers that are vital to our plans to develop Northern Australia.”
The Territory government will head lease the privately owned dwellings for a 10 year period, with the investor guaranteed 52 weeks market rent per year.
Property managers – if you’re keen, the <a href="https://tendersonline2.nt.gov.au/Tender/ListCurrent" target="_blank">tender documents are online</a>, and a briefing is to be held today from 5pm to 6pm at the RCG Centre. It notes the property management services should be provided for 36 months.
Prospective tenderers include Walters Property Group Pty Ltd, Compass Housing Services Ltd, Mission Australia and Landdeal Pty Ltd among others.
YOU MIGHT ALSO WANT TO READ
<a href="/expert-insights/investing/no-future-for-nras-as-fifth-round-is-scrapped-in-2014-budget">No future for NRAS as fifth round is scrapped in 2014 budget</a>
<a href="/expert-insights/scrapping-nras-should-the-affordability-scheme-continue">Scrapping NRAS: Should the affordability scheme continue?</a>
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Northern Territory roll out first subsidised rental properties

Three ACT budget changes to know: Stamp duty cut, land tax changes, over 60s home bonus

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Is there a glass ceiling for women in real estate? Some will say yes, others will say no. We encourage you to have your say in the comments section and in the poll at the bottom of this post.
Just Think Real Estate’s Edwin Almeida took this question to Gai Waterhouse, legendary horse trainer and businesswoman, and <a href="/news/gai-waterhouse-springs-into-melbourne-apartment-high-society-title-tattle">purchaser of a Spring Street, Melbourne apartment</a>.
“It is perhaps only when you stand next to celebrated women, iconic celebrities, if I can put it this way, that you truly understand how tenacious and well-grounded such individuals are in their knowledge of the industry,” Almeida explains.
“The question asked of Gai Waterhouse was; is there a glass ceiling that sits above professional women, particularly in regards to the real estate industry?”
The simple answer she provided was that yes, for professional women there is a glass ceiling.
“However, women that want to make it in any industry and be the leaders breaking new grounds, need to approach this obstacle with determination to be the best and to continually chip away until you break through. Notably, Waterhouse’s insights is grounded in experience and as I said, her expert knowledge within the racing industry,” said Almeida.
He explained that observing Waterhouse quickly identified some of the skills behind her successes.
With Waterhouse engaging every guest that visited at the Sunday charity event, including the children, Almeida noted that real estate agents could learn a lot – particularly for their approach at an open home.
She gave this advice: “Know your market, know your product, know your industry,” Almeida explains.
You can see the full interview, or read it in the transcript, below.
{qtube vid:=2aoWKaAiQWg}
Transcript:
ALMEIDA: Welcome, my name is Edwin from Oz Real Estate TV and I am delighted to have Gai Waterhouse with us today. Thank you.
WATERHOUSE: Lovely to be with you. I’m very excited.
ALMEIDA: Gai has made a huge contribution to our inaugural competition to raise funds for Westmead medical research foundation. Gai, your prize on the night raised just over $3,000. Thank you.
WATERHOUSE: I’m glad you’ve come out today as it’s very important, firstly to raise money for charity. It’s such a worthwhile charity that you’ve personally had so much involvement with.
ALMEIDA: Gai, there’s a perception out in the real estate world that there’s a glass ceiling for female real estate professionals. I’m sure you have a lot to say about that. Is there a glass ceiling for any female professional?
WATERHOUSE: There is a glass ceiling, and I just say you keep on chipping away and you crack it and you make sure you get to the top. You’ve got to be very focused, you’ve got to be very determined in life and you’ve got to know what you’re doing and do it well. Every Sunday at the stables I open the yard for my owners and friends and people from charities, like you Edwin, to be here and to see exactly what we do behind the shutter door here on Kensington Street in Bowral, Sydney.
ALMEIDA: So, you’ve heard it from Gai, there’s the perception that there is a glass ceiling but you’ve got to chip away at it. Gai, I’ve written a couple of articles about the real estate industry being poised for female agents to take over the industry. The platform, the springboard is there, I’ve seen you do it in the racing industry, and I’m hoping that somebody of your calibre actually takes that platform on and takes on John McGrath.
WATERHOUSE: [Laughs] Well, John is a personal friend of mine. All I know is that if you know your product, you know it well and, importantly, you have the right product to sell – you’ve got to have the credibility, you’ve got to have the determination not to allow the sale to walk out the door. That’s the most important thing.
ALMEIDA: And the question I’m sure all the viewers are waiting for me to ask – what’s your tip for the weekend?
WATERHOUSE: My tip for the weekend… well, horses you should follow is a horse called Access Knowledge, which is a horse bought in England by Bruce Slade, a very exciting horse. I also like a horse called Almaha, he races in Queensland. He’s really exciting. A filly called Bay Rock runs at Randwick, she’s delightful and the cutest horse called PJ, we call it PJ like Pyjamas, Pajero, who runs on Monday over the long weekend – a very nice horse.
ALMEIDA: Well, I’m putting my money on PJ. Gai, thank you very much for your time. Thank you once again for your charitable heart and you’re an absolutely gorgeous woman. Thank you very much.
{module Do you think there is a glass ceiling for female real estate agents?}
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Gai Waterhouse answers the question of the day: Is there a glass ceiling in real estate?

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Do you know what the median house price is for your capital? The results are in.
<ul>
<li>
$678,500 - Sydney</li>
</ul>
<ul>
<li>
$560,000 - Darwin</li>
</ul>
<ul>
<li>
$555,000 - Melbourne</li>
</ul>
<ul>
<li>
$525,000 - Perth</li>
</ul>
<ul>
<li>
$520,000 - Canberra</li>
</ul>
<ul>
<li>
$448,000 - Brisbane</li>
</ul>
<ul>
<li>
$395,000 - Adelaide</li>
</ul>
<ul>
<li>
$345,000 - Hobart</li>
</ul>
<ul>
<li>
$545,000 - Combined capitals</li>
</ul>
Source: RP Data May index 2014 results
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Numbers to know: Median house prices across the capitals

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Office space is increasingly being turned into residential, according to JLL’s Pulse report, which notes that the Sydney CBD is leading the charge on this trend.
They noted that there are four points supporting this shift:
<ol>
<li>Historically low residential mortgage rates 
</li>
<li>Long term undersupply of dwellings 
</li>
<li>Rising office vacancies, declining office rents 
</li>
<li>Rising levels of offshore interest in the residential market</li>
</ol>
In Greater Sydney, developers are competing for sites, and demand for residential property is high, with a vast undersupply.
Softening demand for secondary office stock, as prime institutional grade stock becomes scarcer, has seen yields widen between the two. Understandably, office block owners are looking into their residential options and others to buy on the basis of conversions.
In 2013, they estimate that 46,940 square metres of national office space was withdrawn for residential redevelopment. This almost doubles that seen in 2012, with 25,794 square metres recorded, an increase said to be due to Asian influences. This trend is expected to continue over the next year.
DA approved sites for residential conversion in Sydney CBD:
<table style="width: 460px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="110">
Address 
</td>
<td width="53">
Precinct 
</td>
<td width="62">
Office GFA 
</td>
<td width="66">
Residential GFA 
</td>
<td width="62">
Units 
</td>
<td width="67">
Owner Origin 
</td>
</tr>
<tr>
<td width="110">
19-31 Pitt Street
</td>
<td width="53">
Core
</td>
<td width="62">
7,000 sqm
</td>
<td width="66">
4,607 sqm
</td>
<td width="62">
19
</td>
<td width="67">
Australia
</td>
</tr>
<tr>
<td width="110">
Goldfields House, 1 Alfred Street
</td>
<td width="53">
Core
</td>
<td width="62">
24,097 sqm
</td>
<td width="66">
40,341 sqm
</td>
<td width="62">
197
</td>
<td width="67">
US 60% Netherlands 40%
</td>
</tr>
<tr>
<td width="110">
Coca Cola Amatil Building, 71 – 79 Macquarie Street
</td>
<td width="53">
Core
</td>
<td width="62">
9,918 sqm
</td>
<td width="66">
12,819 sqm
</td>
<td valign="bottom" nowrap width="62"> </td>
<td width="67">
Australia
</td>
</tr>
<tr>
<td width="110">
Hudson House,127-131 Macquarie Street
</td>
<td width="53">
Core
</td>
<td width="62">
12,168 sqm
</td>
<td width="66">
12,168 sqm
</td>
<td width="62">
12
</td>
<td width="67">
N/A - Strata
</td>
</tr>
<tr>
<td width="110">
161-165 Clarence Street &amp; 304 Kent Street
</td>
<td width="53">
Western Corridor
</td>
<td width="62">
5,408 sqm
</td>
<td width="66">
15,902 sqm
</td>
<td width="62">
220
</td>
<td width="67">
Australia
</td>
</tr>
<tr>
<td width="110">
The Castlereagh,141-149 Bathurst Street &amp; 209 Castlereagh Street
</td>
<td width="53">
Mid-town
</td>
<td width="62">
1,418 sqm
</td>
<td width="66">
4,957 sqm
</td>
<td width="62">
54
</td>
<td width="67">
China
</td>
</tr>
<tr>
<td width="110">
York &amp; George, 379-385 George Street &amp; 38-48 York Street
</td>
<td width="53">
Mid-town
</td>
<td width="62">
10,178 sqm
</td>
<td width="66">
15,207 sqm
</td>
<td width="62">
199
</td>
<td width="67">
Australia
</td>
</tr>
<tr>
<td width="110">
Greenland Centre (Sydney Water Site), 115-119 Bathurst Street
</td>
<td width="53">
Mid-town
</td>
<td width="62">
5,000 sqm
</td>
<td width="66">
66,720 sqm
</td>
<td width="62">
595
</td>
<td width="67">
China
</td>
</tr>
</tbody></table>
Source: JLL
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Australia’s CBD offices transforming into residential

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Expecting interest from resort chains, owner-operators and syndicates, Western Australia's Coral Bay Ningaloo Reef Resort is on the market.
In a campaign to be conducted by CBRE and Colliers International, the <a href="https://www.ningalooreefresort.com.au/pages/1564/home" target="_blank">34-room, three-star resort</a> comes with two separate manager's residences, a cafe, bar and alfresco dining area. It also includes a swimming pool inside landscaped tropical gardens.
It has been the project of owner-managers Aspen Parks and Resorts since 2007.
It sits on 1.8407 hectares, and there may just be the potential for future developments with the zoning.
Wayne Lawrence, Colliers International director investment services, said that it is a "once in a blue mood" opportunity in a tightly-held market.
“This is a resort sitting on the doorstep of a World Heritage Precinct, and a very major tourism draw – it enjoys very strong occupancy, particularly during the peak periods of April to July, and is a highly-profitable business with diverse revenue streams derived from food, beverage and accommodation,” he said.
While Ryan McGinnity, associate director CBRE, said that Coral Bay is the gateway to Ningaloo Reef, a place where diving with the whale sharks is an offered experience. The area is a World Heritage precinct.
“This is the only true resort property in Coral Bay, and a unique asset that we expect will be the subject of very strong enquiry from a range of buyers,” said McGinnity.
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Want to buy a resort? An opportunity just opened up in WA

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The end of financial year will be upon us in 24 days, and there’s much you should be doing to make the most of it.
Over the next few weeks, Property Observer will attempt to avoid nagging you about timely tax returns, but will provide some tips and advice on how to make the most of this final month.
While you have until 31 October to lodge, your expenses and transactions will only count up until the official end of the financial year – 30 June. The ATO’s <a href="/expert-insights/finance/landlords-tax-deductions-rise-to-38-6-billion-or-23-000-per-tax-return-ato-figures">2010-2011 stats saw the average claimed amount per landlord sitting at $23,000</a> – not something to be sniffed at.
Today’s tip is about working out which expenses you can claim.
In June last year, the <a href="/expert-insights/finance/ato-to-write-to-110-000-rental-property-owners-over-incorrect-rent-deductions">ATO wrote to 110,000 property investors over incorrect rental deductions</a>.
Guess what? They did <a href="/expert-insights/investing/landlords-under-investigation-as-ato-cracks-down">the same thing in 2011, writing to 100,000 property investors </a>about the exact same issue.
You don’t want to be in the ATO’s bad books, so be wary of what you claim ahead of assuming you can.
For instance – that seminar you went to that set you back a few hundred dollars or your ticket to the Home Show, is it deductible? If you don’t know, then you can <a href="/expert-insights/investing/how-much-of-your-property-education-is-actually-tax-deductible">read our article here about the amount of your “property education” that you can actually claim</a>. It’s not as straight forward as you might think.
With the long weekend coming up, it’s time to <a href="/expert-insights/your-weekend-must-do-items-three-things-to-put-on-the-list">sort out your shoebox of receipts and start figuring out what needs to go to the accountant</a>.
For rental properties, here are seven quick rules:
<ol>
<li>Claim straightaway for interests on loans 
</li>
<li>Claim straightaway for depreciating assets 
</li>
<li>Claim straightaway for costs to repair and maintain your rental property 
</li>
<li>Claim straightaway for tenancy costs 
</li>
<li>Claim deductions over a number of years for assets that are part of the property 
</li>
<li>Claim deductions over a number of years for assets on construction costs 
</li>
<li>Claim deductions over a number of years on stamp duty and other fees</li>
</ol>
Source: ATO
Read <a href="/expert-insights/finance/seven-rental-property-deductions-property-investors-are-allowed-to-claim-to-reduce-their-tax-bill">more about these expenses and what you can claim</a>.
Ken Raiss suggests that there are <a href="/expert-insights/finance/nine-tax-tips-for-property-investors">nine things you must know about maximising your tax return</a>. At the top of the list is documentation.
If you’re an industry professional, you can also be useful at tax time. It’s worth reminding your clients about tax depreciation schedules, notes BMT’s managing director Bradley Beer.
“Real estate agents are a critical component in the property-buying process and have a fantastic opportunity, before and after a sale, to enhance their relationships with clients by broadly informing them about how tax depreciation works and the benefits it provides,” said Beer. 
“The result would be a win-win situation for both parties as the buyer maximises his cash flow and the agent strengthens his relationship with the buyer through the process.”
Estimates for deductions are often free ahead of getting an actual schedule undertaken.
USEFUL READING FOR TAX TIME
<a href="/expert-insights/finance/12-tips-for-property-investors-to-reduce-their-tax-bill-ken-raiss">12 tips for property investors to reduce their tax bill</a>: Ken Raiss <a href="/expert-insights/the-top-19-rental-expenses-that-landlords-claim-from-the-ato">The top 19 rental expenses that landlords claim from the ATO</a>: Jonathan Chancellor <a href="/expert-insights/investing/rental-properties-keeping-deductions-working-for-you">Rental properties – keeping deductions working for you</a>: Daniel Deutsch
</body></html>

End of financial year countdown: Make the most of the next 24 days

Australia in global house price growth top 10, but affordability improves

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When interest rate change is announced each month, industry members take to the media to share their thoughts on what this means for consumers, home buyers and the property market generally.
If you're looking for <a href="/expert-insights/finance/interest-rates-crash-course-whats-the-relationship-to-the-property-market">a quick crash course in interest rates, and the perspectives around them, then read this article first</a>.
Property Observer has cherry picked some of the industry's <a href="/expert-insights/finance/rba-keeps-interest-rates-on-hold-for-june">responses to the RBA's decision to keep the interest rate on hold in June</a>.
Place Estate Agents CEO -  Damian Hackett (discussing the Brisbane market)
Certainly transactions have been taking place and we are seeing buyers active, but there has also been a bit of negative sentiment lingering in the market.
Keeping interest rates on hold will only strengthen confidence amongst buyers as it improves affordability, and that is the key for activating buyers.
As has been widely reported, Brisbane is currently in a very good position affordability-wise – not only are we yet to see the big price rises experienced by Sydney and Melbourne in recent times, but finance is also very affordable, with interest rates low and banks competing to secure business.
 
Laing+Simmons general manager - Leanne Pilkington
Over the past few days we have been confronted by news stories arguing the property boom is over, that confidence is plummeting and other overly dramatic claims.
Taking a step back, those experienced in the industry know that it's simply business as usual for the housing market.
A slight easing in house prices in May is simply a reflection of the current state of the market, with factors like seasonality and prevailing affordability issues exacerbated by a tough budget playing their part.
A property purchase or sale has always been a major financial decision. However it's also a strictly personal decision, and no amount of market speculation and outspoken commentary should detract from the need for people to carefully weigh up their own needs and financial capacity.
There are still impressive prices being achieved by vendors and buyers continue to enjoy an equal balance of power in negotiations. In short, the market keeps on ticking over and today's rate decision should see this continue over the winter months.
 
1300HomeLoan managing director - John Kolenda
The federal budget and its aftermath haven’t done anything to inspire consumer confidence and the latest data also shows property values nationwide have taken a hit
Under these circumstances the RBA remains justified in staying on the sidelines while the budget is flushed through the system and other economic data is assessed.
It’s still 50/50 going forward on whether the next rate movement from the RBA will be an increase or a reduction.
Whatever happens, we don’t expect any big movement in rates and the current level looks like it's the new norm for the foreseeable future.
 
See the next page for thoughts from REINSW, HIA, Mortgage Choice and RateCity.
 
<hr class="system-pagebreak">
REINSW president - Malcolm Gunning
The decision to keep interest rates steady came largely as expected. The budget and the fall in consumer sentiment which followed, coupled with the steading demand for housing and a levelling out of the price spiral, left the Reserve Bank with little choice.
The run of historically low interest rates will come to an end and we encourage those who are thinking of entering the property market to factor this into their budgets
 
HIA chief economist - Harley Dale
Today’s statement conveys the RBA Board has a high degree of comfort with the current cash rate of 2.50 per cent, given an environment where competing factors are influencing Australia’s overall economic performance
A shining light for the Australian economy is the recovery in new residential construction activity.
It is encouraging that today the Bank confirmed the message that interest rates are on hold for a considerable period of time. A period of stability will maintain a positive environment for residential construction activity to boost economic growth throughout 2014 and into next year.
Today’s interest rate statement hopefully reduces the recent elevated level of conjecture, and therefore uncertainty, regarding the direction and timing of the next interest rate move. This uncertainty is itself unhelpful for the sustainability of a residential construction recovery.
 
CEO Rate City - Alex Parsons 
In light of the recent Federal Budget, where frankly, most Australians are going to be worse off, it's great news for mortgage borrowers in that their repayments will be steady for another month.
For many Australians out there, particularly those buying their first home in the east coast city markets it's very difficult to get a foot on the property ladder, and it's likely to get harder as Budget cuts hit the hip pocket.
While that may be surprising for certain people trying to get into the house market, a combination of low interest rates plus income increases over that period of time has caused this impact.
Despite the housing affordability being its best position for the last 12 years, for any Australian out there, particularly buying their first home in the east coast city markets, it's still very difficult.
So my tips for those types of home buyers would be to be wary of interest rates going up in the future. We have record low interest rates today, but make sure that you can afford a 2 percentage point increase in interest rates and still be able to make those repayments. If you can't you'll soon find yourself in mortgage stress and that's not a good place to be.
 
Mortgage Choice spokesperson - Jessica Darnbrough
The latest Westpac Melbourne Institute Index of Consumer Sentiment fell by 6.8% to 92.9 – the lowest level since August 2011.
The sharp fall in sentiment is indicative of an unfavourable response to the recent Federal Budget.
According to the Index, 59.2% of Australians said they expect their family finances to “worsen” over the coming 12 months as a result of the Budget.
In the months leading up to the Federal Budget, many economists had predicted interest rates to rise in the not-too-distant future. However, this may no longer be the case. Instead, the Reserve Bank is likely to leave rates on hold for some time and wait and see what happens to consumer sentiment over the coming months.
In fact, in the minutes of the Reserve Bank's May Board meeting, it was suggested that the current accommodative stance of monetary policy was appropriate for some time yet given the current outlook for the economy and the significant degree of monetary stimulus already in place.
 
See the next page for comments provided on the day of the RBA decision from RP Data, Finder and L J Hooker.
<hr class="system-pagebreak">
Comments provided on the day
RP Data research director - Tim Lawless
From a housing market perspective, the Reserve Bank should be less concerned about housing markets overheating, with RP Data yesterday reporting the first fall in dwelling values in a year over the month of May and the trend rate of growth across the housing market has been cooling. Australia’s housing market has seen two years of escalating property values, so from a cyclical perspective the housing market is due for a slowdown.  Cooler housing market conditions shouldn’t surprise the Reserve Bank, who have been warning about overheated conditions and speculative investment activity in the Melbourne and Sydney markets. 
Gross rental yields in both these cities have fallen to near historic lows as value growth has substantially outpaced rental growth.  With the heat potentially coming out of the housing market, the RBA will find it much easier to keep interest rates at their low setting in an effort to continue stimulating housing construction and consumer spending. Add to the recently weak housing market a stubbornly high Australian dollar, lower commodity prices, slowing dwelling approvals and weaker consumer sentiment post budget and it’s clear that the RBA is likely to hold off on rate hikes for the foreseeable future.
 
Finder money expert - Michelle Hutchison
Despite new figures showing a month-on-month drop in property prices across the country, property values are much higher than ever. In fact, our research shows that national average (across five capital cities) property prices have increased by over $133,000 or up 27% to $628,320 (RP Data). 
If you waited for a property to drop before buying, interest rates could rise and outweigh the benefit of waiting. Australia's biggest Reserve Bank survey of leading economists and experts all expected the cash rate to remain unchanged today but the majority predict a rate rise by the end of the year or next year. If you waited a few months for a $500,000 property to drop by 4% to $480,000, with a 10% deposit and a loan size of $432,000, the lowest three-year fixed rates could rise by then to 5.19%. If you purchased a property now at $500,000 and a 10% deposit and loan size of $450,000, locking in the cheapest three-year fixed rate of 4.69% could save you about $1,400 over 3 years compared to waiting for property prices to drop and rates to potentially increase.
 
L J Hooker deputy chair - L Janusz Hooker
Looking forward, the only hiccup appears to be the uncertainty surrounding which federal budget measures will pass parliament.
Initially this caused a drop in consumer confidence but that appears to have passed.
The good news for home owners is the longer this uncertainty remains in place the longer interest rates will remain on hold.
</body></html>

Industry perspectives on the RBA’s interest rate hold

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.

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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."

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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

Joel Robinson

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.

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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>.

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Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

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La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

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The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

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<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

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Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Ceerose Founder Edward Doueihi told Apartments.com.au the developer’s long-standing presence in Leichhardt and the Inner West had given it a strong understanding of how the area has evolved and where its future opportunities lie.

“Ceerose has had a long-standing presence in Leichhardt and the Inner West, giving us a unique understanding of the area’s evolution and future potential,” Doueihi said.

“Having delivered projects throughout the region, we have witnessed the suburb’s transformation first-hand and understand the opportunities for its continued growth.”

Doueihi said that understanding also informed the planning process, with a comprehensive Stakeholder Engagement Outcomes Report prepared before the application was lodged.

The report identified the key issues and concerns raised by neighbouring residents and other stakeholders, allowing those matters to be considered and incorporated into the design where appropriate.

He said the delivery of additional housing would also play an important role in supporting the revitalisation of Norton Street and the Italian Forum.

“By increasing the local residential population, the development is expected to strengthen demand for local businesses, encourage further investment, and help restore the vibrancy that made the precinct a thriving destination in the early 2000s.”

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Doueihi founded Ceerose in 1998 and has grown the business to become one of Sydney's more active apartment developers in recent years, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

Jennifer Duke

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