<html><body>
The Queensland government has raised the possibility of ‘calling in’ the application of a $30 million Masters Home Improvement store in Bundaberg. If the call in goes ahead, appeals against the development will effectively be ceased.
Deputy Premier and State Development, Infrastructure and Planning minister Jeff Seeney has issued a ministerial call in notice for the retail development, which has undergone a series of setbacks and is the subject of community concern.
As per the 2009 Sustainable Development Act, if the development is called in Seeney will become the assessment manager for the development application, allowing him to assess the merits of the application against state interests. 
According to Seeney, the Masters store development is of interest due to its significant investment potential for the region. 
 “Bundaberg Regional Council has informed me this proposed development could benefit the eastern growth corridor of Bundaberg,” said Seeney. The government’s proposed call in notice for the development notes that the council believes that the project represents a $13 million investment in Bundaberg’s eastern growth corridor.
“The development proposal for 128 FE Walker Street, Kepnock, has the potential to create 186 jobs during construction and 130-150 ongoing operational jobs,” Seeney said.
He noted that proposed retailer could have flow on effects for investment in the area. 
“The development could also spur on other business investment in the Kalkie/Ashfield growth corridor, areas identified in council’s draft planning scheme and the Wide Bay Burnett Regional Plan 2009,” said Seeney.
A 2011 Economic Impact Assessment report by advisory firm Duane Location states that upon completion the Masters Home Improvements store will achieve total sales of about $34 million (approximately $2,500 per square metre) this year. 
The development received council approval on January 24 earlier this year despite a number of submissions from local residents and businesses opposing the development which will take place on formerly residential land. However, three appeals have since been lodged against the approval. One was lodged by the Kepnock Residents Action Group, another by Mirvac and the third by AMP Capital. 
Mirvac, which owns the local Hinkler Central shopping centre, cited the site’s Residential A zoning as grounds for its objection to the development, as well as the potential detrimental impact the Masters store would have on existing retailers. AMP Capital raised inconsistencies in the council’s planning and development practices.
If Seeney does call in the development, his subsequent decisions cannot be appealed in the Planning and Environment Court. 
Affected parties will have until 12 May to make a submission regarding the development and ministerial call in. Seeney must decide on whether or not to call in the application by June 6.
</body></html>

jrichardson-uRX5hFdKfN

Queensland government considers call in for Bundaberg Masters store

<html><body>
Renovation reality television has returned with Channel 7’s second season of House Rules. 
Each of the six teams will compete to renovate another team’s home, with the team producing the best results winning the full some of their mortgage. 
The home with the biggest mortgage will have the most to gain out of the renovation exercise. 
So far, Channel 7 is keeping the purchase price and mortgage of each home under lock and key. Assuming each team took on the same proportion of debt, which do you think has the biggest mortgage?
Candy and Ryan’s house (NSW)
<img src="/images/2014/04/24/candy%20and%20ryan.jpg" width="460" height="258">
Candy and Ryan’s red brick veneer three bedroom home was purchased in July 2013. Formerly owned by the Catholic church, their property in Sydney’s western suburbs includes a detached granny flat, a shed and a sizeable backyard.
Lisa and Adam (Vic)
<img src="/images/2014/04/24/lisa%20and%20adam.jpg" width="460" height="258">
Lisa and Adam own a 1960s three bedroom weatherboard house in Victoria. They purchased the property in April 2012.
Lloyd and Madison’s house (QLD)
<img src="/images/2014/04/24/lloyd%20and%20madison.jpg" width="460" height="258">
The timber Queenslander owned by young couple Lloyd and Madison is set three streets back from the beach and borders on a nature reserve. It has four bedrooms, but also significant structural problems, including a pretty severe tilt. 
Carole and Russell’s house (WA)
<img src="/images/2014/04/24/carolle%20and%20russell.jpg" width="460" height="258">
Carole and Russell’s house in the Perth hills was advertised on gumtree with the tagline “renovate or detonate”. The two storey home is 28 years old. Russell noted that when the house was first purchased, he kicked the balcony and the whole thing collapsed onto his car below.
Brooke and Grant’s house (TAS)
<img src="/images/2014/04/24/brooke%20and%20grant.jpg" width="460" height="258">
Brooke and Grant are raising seven children in their two and a half bedroom 19th century farmhouse in the Huon Valley. The home has one bathroom, with another outhouse in the back and an outdoor laundry. The house is set on three acres.
Bomber and Mel (SA)
<img src="/images/2014/04/24/bomber%20and%20mel.jpg" width="460" height="258">
Bomber and Mel live in a 110 year old weatherboard home in Adelaide, set a kilometre off the beach. Holes in the floor let in the weather, as well as the local cats. The home was purchased in a mortgagee sale.
Property Observer will follow the full details as they emerge on the series so that we know just how much the prize could be. 
{module Which home do you think has the greatest mortgage based on initial impression and locality?}
 
</body></html>

Channel 7's House Rules returns for season two

<html><body>
Though negative gearing has short term benefits, many investors are looking for properties that can bring them high returns for a low price.
Using statistics from RP Data, Property Observer has put together the top five suburbs for unit rental yields by state.
Rental yield, the proportion of rental income to a property’s purchase price, is one of the key indicators of value for an investment property.
Predictably, New South Wales and Queensland currently offer the best yields for units. The price pressure in the Sydney rental market is well known, and Queensland has flagged by many of our observers as the next market to watch.
However, a property’s rental yield is only one factor in its worth to you as an investor. A property may have a high yield because property prices are depressed in that area and a local economic downturn has lowered the population’s buying capacity, giving it little potential for capital growth.
Another suburb may have a low rental yield because it consistently attracts blue-chip buyers and there isn’t much of a rental market. So while searching for an apartment, remember to consider median values, location, population and the economy.
New South Wales
While Broulee has the highest rental yield for units of any suburb in Australia, it may not be the investment you’re looking for – the seaside resort town on the south coast had a population of just 2,897 in 2011.
<ol>
<li>
<a href="/news">Broulee</a>  Rental yield: 12.36% Median price: $305,000 
</li>
<li>
<a href="/news">Ultimo </a> Rental yield: 11.42% Median price: $255,000 
</li>
<li>
<a href="/news">North Albury </a> Rental yield: 8.52% Median price: $116,000 
</li>
<li>
<a href="/news">Nambucca Heads </a> Rental yield: 8.32% Median price: $200,000 
</li>
<li>
<a href="/news">Bella Vista </a> Rental yield: 8.13% Median price: $381,000</li>
</ol>
Other high yielding NSW suburbs for units: <a href="/news">Huskisson </a>(7.49%), <a href="/news">Lavington </a>(7.44%), <a href="/news">Taree </a>(7.44%), <a href="/news">Kooringal </a>(7.38%), <a href="/news">Raymond Terrace</a> (7.21%).
<hr class="system-pagebreak">
 Australian Capital Territory
<ol>
<li>
<a href="/news">Bonner</a> Rental yield: 6.78% Median price: $345,000 
</li>
<li>
<a href="/news">City </a> Rental yield: 6.3% Median price: $425,000 
</li>
<li>
<a href="/news">Franklin</a> Rental yield: 6.29% Median price: $310,000 
</li>
<li>
<a href="/news">Downer </a> Rental yield: 6.26% Median price: $299,000 
</li>
<li>
<a href="/news">Lyons </a> Rental yield: 6.12% Median price: $289,000</li>
</ol>
<hr class="system-pagebreak">
South Australia
<ol>
<li>
<a href="/news">Risdon Park South</a> Rental yield: 9.83% Median price: $86,000 
</li>
<li>
<a href="/news">Whyalla</a> Rental yield: 8.67% Median price: $168,000 
</li>
<li>
<a href="/news">Risdon Park</a> Rental yield: 8.4% Median price: $99,000 
</li>
<li>
<a href="/news">Berri</a> Rental yield: 8.2% Median price: $111,000 
</li>
<li>
<a href="/news">Davoren Park</a> Rental yield: 7.89% Median price: $129,000</li>
</ol>
<hr class="system-pagebreak">
 Tasmania
Tasmania had the lowest rental yield for units of any state or territory. Despite offering some of the <a href="/expert-insights/investing/the-top-10-most-affordable-capital-city-suburbs-for-units-rp-data">cheapest units in Australia</a>, there isn't the rental market for units to sustain high yields.
<ol>
<li>
<a href="/news">Brighton </a> Rental yield: 6.22% Median price: $218,000 
</li>
<li>
<a href="/news">Claremont </a> Rental yield: 6.02% Median price: $186,000 
</li>
<li>
<a href="/news">Glenorchy</a>  Rental yield: 6.65% Median price: $192,000 
</li>
<li>
<a href="/news">Hadspen </a> Rental yield: 6% Median price: $130,000 
</li>
<li>
<a href="/news">Lutana </a> Rental yield: 5.99% Median price: $215,000</li>
</ol>
<hr class="system-pagebreak">
 Northern Territory
<ol>
<li>
<a href="/news">Braitling </a> Rental yield: 7.23% Median price: $302,000 
</li>
<li>
<a href="/news">Katherine </a> Rental yield: 7% Median price: $260,000 
</li>
<li>
<a href="/news">Gillen </a> Rental yield: 6.93% Median price: $315,000 
</li>
<li>
<a href="/news">Larrakeya </a> Rental yield: 6.82% Median price: $465,000 
</li>
<li>
<a href="/news">Desert Springs </a> Rental yield: 6.54% Median price: $370,000</li>
</ol>
<hr class="system-pagebreak">
Queensland
Queensland's rental yields outperformed most units in the rest of the country. But as we saw in New South Wales, if it looks too good to be true, it usually is. Middlemount, with a median unit rental yield of 11.97%, has a population of just 1,914 according to the 2011 census.
<ol>
<li>
<a href="/news">Middlemount</a> Rental yield: 11.97% Median price: $315,000 
</li>
<li>
<a href="/news">Andergrove </a> Rental yield: 11.43% Median price: $178,000 
</li>
<li>
<a href="/news">Woree</a> Rental yield: 9.75% Median price: $120,000 
</li>
<li>
<a href="/news">Bungalow </a> Rental yield: 8.8% Median price: $130,000 
</li>
<li>
<a href="/news">Garbutt</a> Rental yield: 8.76% Median price: $190,000</li>
</ol>
Other high yielding suburbs for units: Holloways Beach (8.5%), Manunda (8.4%), Logan Central (8.19%), Beenleigh (7.95%), Manoora (7.87%), Slacks Creek (7.87%).
<hr class="system-pagebreak">
 Victoria
Unit yields in Melbourne have been low for some time, due to high prices in the inner city and increasing supply with new unit developments. Victoria's highest yielding suburbs are all outside of the capital city, save the northern suburb of Macleod. 
<ol>
<li>
<a href="/news">Hamilton</a> Rental yield: 8.9% Median price: $129,000 
</li>
<li>
<a href="/news">Macleod </a> Rental yield: 7.31% Median price: $198,000 
</li>
<li>
<a href="/news">Alfredton</a> Rental yield: 6.87% Median price: $191,000 
</li>
<li>
<a href="/news">Redan </a> Rental yield: 6.83% Median price: $168,000 
</li>
<li>
<a href="/news">Horsham </a> Rental yield: 6.68% Median price: $179,000</li>
</ol>
<hr class="system-pagebreak">
 Western Australia:
<ol>
<li>
<a href="/news">Newman </a> Rental yield: 9.95% Median price: $575,000 
</li>
<li>
<a href="/news">Boulder </a> Rental yield: 8.9% Median price: $175,000 
</li>
<li>
<a href="/news">South Hedland </a> Rental yield: 8.39% Median price: $558,000 
</li>
<li>
<a href="/news">Piccadilly</a> Rental yield: 7.83% Median price: $236,000 
</li>
<li>
<a href="/news">Kalgoorlie </a> Rental yield: 7.74% Median price: $235,000</li>
</ol>
Remember, while performance indicators can give you a superficial understanding of a suburb's investment value, most offer the greatest value as comparative measures.
If you're considering a property investment, look back at the yields historically found in that area to get an understanding of which way the trend is heading, compare your figures with other areas, and consider other valuation tools.
This article article has been amended to include South Australian figures.
</body></html>

The top suburbs for unit rental yield around the country, Ultimo shines

<html><body>
The increasing expenditure associated with Australia’s ageing population will necessitate reforms to the country’s taxation system, according to the latest Economics Group Research Note from the Housing Industry Association of Australia (HIA).
With the number of Australians aged 85 and over projected to grow from 455,000 to 1 million in the next 25 years, the country’s working population is expected to decline in relation to the number of senior financial dependents. The country's shifting age demographics are likely to intensify public expenditure pressures, with HIA claiming that the residential construction sector will play a direct role in Australia’s response to the ageing population.
Currently, the Public Budget Office estimates that the structural budget balance will remain in deficit in 2016/17. As such, in its report HIA advocates a series of structural taxation reforms extending to the housing construction sector to help manage Australia’s shrinking taxation base.
The report states that new housing is Australia’s “most heavily and inefficiently taxed sector”, contributing about $40 billion 11% of total taxation revenue per year across all levels of government.
“Taxes on new housing are not only excessive, but are disproportionate relative to the rate of taxation on other sectors of the economy – the average tax burden on the residential building sector is estimated at around 31% of the value of output, which compares to an economy-wide average of 24.4%,” writes HIA in the report, titled Housing: Paving the Road to Recovery?
Citing the 2010 Ken Henry Tax Review, HIA also criticises stamp duties as inefficient and providing a disincentive for older Australians to move to more appropriate dwellings. In the final recommendations of Australia’s Future Tax System, Henry advises that “ideally, there would be no role for any stamp duties, including conveyancing stamp duties, in a modern Australian tax system”. Instead, the review recommends a broad land tax.
HIA’s report also raises the issue of providing adequate housing stock to meet growing demand. Pointing to legislative barriers to housing supply, the industry body claims there is a shortage of housing stock and inflating home ownership and rental prices.
Although housing supply is largely regulated by state and local governments, HIA claims that the federal government can take action to increase new housing stock, such as tying funding to public and social housing delivery benchmarks.
</body></html>

Housing taxation reform required to deal with ageing population: HIA

<html><body>
With Sydney and Melbourne’s rising dwelling prices across much of last year, Australia’s property commentators are again looking at the possibility that our price growth is due to a bubble.
The economic phase is largely characterised by prices that have inflated beyond fundamental property values.
Those who have diagnosed a bubble in our housing market are either realists or fear mongers, depending on who you ask. Property Observer took the issue to a panel of economists and industry analysts, asking:
<ul>
<li>What are the warning signs of a growing bubble in the housing market? 
</li>
<li>Is Australia experiencing a property bubble?</li>
</ul>
Arek Drozda – Independent property market analyst
Firstly, let’s define a bubble in more precise terms since there are many different approaches to describe this phenomenon.  I prefer the simple definition that a bubble is “trade in high volumes at prices that are considerably at variance with intrinsic values”.
By this measure, the Australian residential property market is far from bubble territory. In particular:
<ol>
<li>The last time we experienced really high volumes of residential property transactions was in late 2006 and 2007. Despite reports of the biggest ever number of weekend auctions, the total volume of property transactions in 2014 is still subdued in comparison. </li>
<li>This period (up to March 2008) also coincided with high prices and, most importantly, purchase affordability was at its lowest since early 1990’s.</li>
</ol>
The reason for low affordability was that the cost of buying (comprising of mortgage payments, council and water rates as well as other expenses associated with owning a property) ballooned to proportions far exceeding the pace of rises in personal incomes, making property prices at that time “considerably at variance with intrinsic values”. Simply, housing market was in a bubble then.
<blockquote>
"Australia's residential property market is far from bubble territory" - Arek Drozda
</blockquote>
Despite the recent gains in property prices, purchase affordability in 2014 remains at historically high level (not far from 2009 level when Australia and the world were in the depths of the global financial crisis). 
Therefore, there should not be any concern about the bubble until the volume of property transactions reaches 2007 levels and until there is a significant drop in affordability. Prices and interest rates still have a lot of room to move before this will happen.
<img src="/images/2014/04/22/shane-oliver-profile.jpg" alt="" style="float: right;">
Shane Oliver – Head of investment strategy and chief economist, AMP Capital 
The characteristics of a bubble in the housing market are a combination of overvaluation in terms of the prices relative to fundamentals, excessive credit growth, with signs that investors are piling in using borrowed money and finally self-perpetuated exuberance, where past price gains are feeding current price growth.
We saw that in the major capital cities in Australia going into 2000, 2003 and 2004. We had many years of strong price gain. Housing related credit growth was above 20%, and property spruikers like Henry Kay were out in force. The market had become well and truly overvalued.
Some of those indicators are in place now. Housing prices are overvalued in comparison to wages and rental income, both in comparison to Australia’s history and on an international basis.
But we’re not seeing the debt driven frenzy that we saw ten years ago. Credit growth is in single digits, and we’re not seeing the degree of exuberance we saw a decade ago. Cooking shows still out-rate the home development shows.
In Australia, two cities are in double digits but the other capital cities are seeing growth under 5%.
Sydney was perhaps the most bubbly of all the property markets a decade ago, and it’s the one that had the weakest experience in the last decade, starting with the western suburbs in 2004 and 2005. So there’s a degree of catch up going on in Sydney, which partly reflects a return to confidence.
Average capital city growth is above 10%, but that growth is dominated by Sydney, which is up around 15% or 16%.
There are several things investors need to be worried about with Sydney. Firstly, there are probably better opportunities in the states than in Sydney right now.
Secondly, we have seen a strong recovery triggered by a reduction in interest rates, and they’re likely to be raised again, probably later this year.
<blockquote>
"We’re not seeing the debt driven frenzy that we saw 10 years ago" - Shane Oliver
</blockquote>
Thirdly, rental yields are quite low, so investors getting into property need to accept that they are a lot more dependent on capital growth to get double digit returns, if that’s what they’re expecting.
The term ‘bubble’ conjures up images of some sort of crash, a la some parts of the US, Europe and Japan in recent times, particularly around the GFC. But I don’t think we’re at that point yet. Rates will go up, and capital growth will soften but prices probably won’t crash. The important thing is for investors to have realistic capital growth expectations.
<img src="/images/2014/04/22/soos-profile.jpg" alt="" style="float: right;">
Philip Soos – Property market economist and housing bubble researcher 
The first thing you’ve got to do is define what a bubble is. And with all property analysis it’s such a vacuous term.
I take the definition of economist Hyman Minsky. He defined an asset bubble as when the rent from an asset, or income from an investment, cannot pay down principal, interest and the running expenses. That means they’re making an income loss. The only way for an investor to make a profit is through capital gain.
That occurred in 2001 onwards when investors on aggregate became negatively geared in Australia. But it’s been worthwhile for most, because the capital gains have been enormous, especially in Melbourne.
There are three requirements of a housing bubble. Firstly, an increase in real housing prices. Secondly, an increase in the debt used to purchase houses, the mortgage debt to GDP [gross domestic product] ratio. That’s something that Steve Keen has popularised. And thirdly, net rental income losses.
<blockquote>
"Right now, we’re seeing the largest bubble on record" - Philip Soos
</blockquote>
You can also see a bubble through other indicators such as price to income, price to rent, total land values to GDP, the value of housing stock to GDP. There’s also the Kavanagh-Putland index – the total value of property sales on an annual basis relative to GDP – and the debt to cashflow ratio, which compares housing debt to income flows, or net rental income.
Right now, we’re seeing the largest bubble on record. In the post-war period we had two major bubbles. First was coming out of the war in 1974. That was a small housing bubble. It collapsed and gave us a severe recession.
In the late 80s, there was a massive commercial real estate bubble which gave us the early 90s recession. With those two bubbles, real prices and private debt moved up. The same trends are present today, but the trends are much greater now.
Housing prices began to lift off in 1996 and peaked in real terms in 2010 – we’ve never had such a sustained growth in housing prices.
If and when it the bubble bursts, it’s going to induce a pretty severe economic downturn. We’ve never had anything quite like a bubble of this size. The biggest one we’ve seen prior was in the 1880s, when there was a bubble in Melbourne and Sydney. When it burst in the 1890s, it destroyed the economy and produced a depression worse than the one seen in the 1930s.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
 
<img src="/images/2014/04/22/cashmore-proifle.jpg" alt="" style="float: right;">
Catherine Cashmore - Independent market analyst
People buy property based on expectations of future growth. 
The prices buyers are paying in some areas of Melbourne indicate a sense of exuberance – a bullish expectation that the good times will continue. 
This is not just evident in the residential sector, but the commercial sector also. Time on market has reduced, reserves are being surpassed, auction clearance rates are holding up despite the increased number of listings, lending data is still indicating we're on an upward trajectory – the list goes on.
As is the case in any cycle, the tide is quick to change if purchasers feel growth prospects will not be realised for the period of time they intend to hold the investment – and we do face significant headwinds in the local economy. 
This could be the result of a number of economic forces which usually act in combination – i.e., not one rate change alone but rather a series of projected rate hikes, job insecurity, fluctuations in the stock market, a report indicating a change to housing policy, restrictions on lending, lower wage growth, and so forth.  
<blockquote>
"Inevitably, the tide will turn" - Catherine Cashmore
</blockquote>
Buyers will move in sentiment faster than vendors.  Vendors have typically gone through a period of conditioning prior to placing their dwelling on the market. Therefore they are 'set' on achieving a price. Hence the market often stagnates at the turn of a cycle, and housing data can often miss the true drop in prices should vendors be forced to sell. 
This growth phase has a number of forces behind it.  In Sydney and Melbourne (not so much other states), wealth coming into the country from Asia (by way of migrants and off shore lending) is significant and should not be overlooked. I go into further detail <a href="/expert-insights/investing/we-need-to-direct-foreign-investment-in-real-estate-effectively-not-stop-it">here</a>. Our loan data doesn’t pick this up. 
However, money being poured into infrastructure by the current administration, and the boom in building activity, will also bear an upward influence on land prices, although not necessarily on individual unit prices, which are subject to oversupply in city areas.
Inevitably the tide will turn. However, if you're asking me for a 'crash' prediction, while I have no doubt we will experience one, we are, in my opinion, a way from it yet. 
As for why prices are as high as they are, and the impacts this has on society as those on the fringes are increasingly forced out (as I point out <a href="/expert-insights/buying/the-widening-inequality-and-economic-growth-gap-what-does-this-mean-for-housing">here</a>),  I would advise reading <a href="/expert-insights/investing/looking-at-our-housing-market-through-foreign-eyes">my latest article</a>, which addresses the matter in detail.  
Harley Dale – Chief economist, Housing Industry Association <img src="/images/2014/04/22/harley-dale-profile.jpg" alt="" style="float: right;">
Price increases for residential property are being driven by Sydney and Melbourne. There is evidence that the price recovery is broadening, but overall growth outside our two largest capitals is modest. We don’t have a classic bubble scenario in Australia where a frenzy of speculative activity is rife and widespread.
Price increases in Sydney reflect the response to what was a severely supply-constrained market for nearly a decade, although we wouldn’t want to see current rates of growth sustained for a long period. The rate of growth in Melbourne should ease.
<blockquote>
"We exaggerate price weakness when it occurs, but then lament a reversal to price growth" - Harley Dale
</blockquote>
In general our population is increasing and our economy is growing, albeit not at the trend pace we would prefer.
We will see some broadening of dwelling price growth relative to that which is currently evident.
We don’t want to see the situation get out of control, but it isn’t.
We exaggerate price weakness when it occurs, but then lament a reversal to price growth. Let’s just carefully assess how prices behave over the course of this year and stop sensationalising the issue.
<img src="/images/2014/04/22/wilson-profile.jpg" alt="" style="float: right;">
Andrew Wilson – Senior economist, Australian Property Monitors 
A bubble is certainly a nebulous concept because it is something that’s not really defined – other than the fact it ranks with other nightmare bedtime stories as a frightening concept for investors.
The reality is a lot different from the fear. The perception is that unsustainable growth leads to a collapse in housing prices.
That’s not the experience of the Australian housing market. In Australia, our market has been characterised by strong periods of growth, followed by moderate price corrections.
We’ve rarely seen any period of annualised price decline, and when we do it’s at very minor levels, with decline rarely over 5% in any year, while we see double figure growth at times.
We about the housing market in cycles, like the business market. And of course they’re very closely related in terms of their underlying drivers.
<blockquote>
"As Mr Clinton once said, 'It’s the economy, stupid'.” - Andrew Wilson
</blockquote>
If we look at the bottom of a cycle, in Australia the trough is always higher than the previous trough point. So the underlying trend is always upwards.
If the trough point is lower than the previous one, we should be concerned, because we’d be seeing a more exaggerated bubble shape.
So we actually have moderation in the correction phase - we have more of a “wave” shape rather than a bubble shape, and the thing that drives that is the underlying upward trend in our economic cycles.
We have income growth, with competition for labour putting upward pressure on income, which gives us the capacity to pay for houses, and we’ll continue to have that with a healthy economy.
That pattern will continue unless there is some catastrophic economic event. But we’ve had very strong downturns in economic activity before and we didn’t see that any bubbles burst.  
We have a rigid financial environment, which reflects risk aversion from banks. We don’t have a market for lending like the U.S. had, with a lot of speculative lending, which can give us that bubble shape.
As long as our economy continues to grow and as long as we have a rigid and risk adverse financial system, we won’t see a housing bubble.
We also have an underlying shortage of property in most centres. Those that have the biggest property shortages tend to have the more modest corrections, and don’t have the same peaks and troughs of those markets that have a more abundant supply line.
As Mr Clinton once said, “It’s the economy, stupid”.
And as long as the economy continues to be a strong performer in terms of economic growth, we’ll avoid any steep declines in housing prices.
</body></html>

Exclusive: How can we spot a housing bubble?

<html><body>
According to the latest RP Data-Rismark Home Value Index Results, Melbourne dwellings sold for a median price of $515,000 for 2014’s March quarter.
Melbourne's median dwelling price has increased 11.6% increase year on year, the second biggest yearly increase after 15.6% growth in Sydney median dwelling price.
Property Observer looks at five Melbourne homes that recently sold around the median $515,000 mark.
<a href="https://www.realestate.com.au/property-apartment-vic-fitzroy+north-107254529" target="_blank">41/9-19 Miller Street, Fitzroy North</a>
<img src="/images/2014/04/17/image3.jpg" width="456" height="342">
An apartment (pictured above) in Fitzroy North’s Miller Park complex sold for $510,000 on 9 April. The two bedroom first floor unit opens onto secure communal gardens and is situated just off Nicholson Street. This property sold below March’s median unit price for <a href="/news">Fitzroy</a>, which was $671,000 according to RPData.
<ul>
<li>Price: $510,000</li>
<li>Rooms: Two</li>
<li>Drive to CBD: 10 minutes</li>
</ul>
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20three.jpg" alt="">
 <a href="https://www.realestate.com.au/property-house-vic-reservoir-116400331" target="_blank">170 Spring Street, Reservoir</a>
<img src="/images/2014/04/17/image2%201.jpg" width="460" height="345">
This three bedroom home in Melbourne’s northern suburbs sold at $510,000 earlier this week. Another one sold on the back of its development potential, the weatherboard sits on a 585 square metre plot within walking distance of <a href="/news">Reservoir</a> train station and the Preston market. It was purchased by the vendors in 2006 for $258,000, almost doubling in value over eight years.
<ul>
<li>Price: $510,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 18 minutes</li>
</ul>
<img src="/images/2014/04/17/reservoir%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/reservoir%20april%2017%20two.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-apartment-vic-southbank-116430995" target="_blank">6/100 Dodds Street, Southbank</a>
<img src="/images/2014/04/17/image2.jpg" width="460" height="345">
This two bedroom unit (pictured above) sold for $511,000 this past weekend. The apartment in a low-rise complex has an open plan living area and is located near Melbourne’s Botanical Gardens. Though selling below <a href="/news">Southbank</a>’s March median price of $566,000, the property’s value almost doubled over the past 11 years. The vendors purchased the Dodd Street apartment for $265,000 in 2003.
<ul>
<li>Price: $511,000</li>
<li>Rooms: Two</li>
<li>Drive to CBD: Six minutes</li>
</ul>
<img src="/images/2014/04/17/southbank%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/southbank%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/southbank%20april%2017%20three.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-house-vic-altona+north-116006059" target="_blank" style="line-height: 1.3em;">26 First Avenue, Altona North</a>
<img src="/images/2014/04/17/main%203.jpg" width="460" height="345">
A new build in Melbourne’s south west, this three bedroom, two bathroom home (pictured above) sold for $525,000 on Monday. Bedrooms are carpeted while living areas feature hardwood flooring. The brick house with a courtyard and garage sold above the March median for houses in <a href="/news">Altona North</a>, which sat at $507,000.
<ul>
<li>Price: $525,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 17 minutes</li>
</ul>
<img src="/images/2014/04/17/altona%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/altona%20north%20april%2017%20three.jpg" alt="">
<img src="/images/2014/04/17/altona%20north%20april%2017%20four.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-house-vic-watsonia+north-116392011" target="_blank">12 Busst Drive, Watsonia North</a>
<img src="/images/2014/04/17/main%204.jpg" width="460" height="345">
Situated 17 kilometres north-east of the Melbourne CBD, this <a href="/news">Watsonia North</a> home (pictured above) sold for $515,500 this past weekend. The three bedroom house with front and backyards is situated on a corner plot, with the selling agent suggesting the possibility of further development subject to council approval. The home was last advertised to tenants at $380 per week in February, putting rental yield at 3.84%.
<ul>
<li>Price: $515,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 27 minutes</li>
</ul>
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20three.jpg" alt="">
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20four.jpg" alt="">
Photo of Melbourne courtesy of Vincent Q/flickr.
</body></html>

What Melbourne's median house price really gets you

<html><body>
This weekend even the most hardened property investor will get the opportunity to take a well-earned break from the Super Saturday action.
While some choose to enjoy the Easter long weekend with some hot cross buns and a good book, others are after some more active (and sweet) fare. Property Observer has tracked down four properties perfect for a good old fashioned Easter egg hunt.
<a href="https://www.realestate.com.au/property-other-nsw-kangaloon-7517167" target="_blank">Kangaloon, NSW </a>
 <img src="/images/2014/04/17/image12.jpg" width="460" height="345">
This Kangaloon country estate has plenty of room for a roving egg hunt – 111 acres, to be precise. The main house offers six bedrooms in which to plant chocolates, while the garage, stable complex, barn machinery shed, stockyards, dressage arena and three bedroom studio will provide lots of good hiding spots.
But best of all are the tree lined garden paths, pictured above – perfect for traipsing along with a basket full of Easter eggs.
<a href="https://www.realestate.com.au/property-acreage+semi+rural-vic-flinders-115045263" target="_blank">217 Gwenmarlin Road, Flinders, Vic</a>
<img src="/images/2014/04/17/main%201.jpg" width="460" height="345">
Where better to host a hunt than a good old fashioned castle? This granite rock and bluestone residence (pictured above) is located down the end of a country lane in the historic town of Flinders. Property Observer thinks this Scottish castle would be best explored by candlelight for the full experience, though that might take things from Easter excitement to haunted house.
If one was to take the hunt outside, there are 50 acres of land to explore. But make sure you get to the chocolates before the local mob of Eastern Grey Kangaroos get to it (or old Daisy, the resident cow).
<a href="https://www.realestate.com.au/property-acreage+semi+rural-nsw-sutton+forest-105088598" target="_blank">Sutton Forest, NSW</a> 
<img src="/images/2014/04/17/main%202.jpg" width="460" height="345">
Another grand old country estate, this residence set on 15 acres offers plenty of opportunities to squirrel away Easter eggs. The five bedroom suites, two dressing rooms, two studies, library and conservatory offer ample hiding space. Earlier this week, <a href="/news/malaysian-tycoon-teo-ah-khing-from-china-horse-club-snaps-up-historic-the-chase-at-sutton-forest">Malaysian racing tycoon Teo Ah Khing</a> was revealed to be the new owner of another historic Sutton Forest estate, The Chase.
The landscaped garden, with a fountain and two grand old lion statues of this property are perfect for tucking away some chocolates. But with a tennis court, pool pavilion, games room, triple garage, separate kitchen and an additional two storey house for guest accommodation, Property Observer guesses that the discovery of stray Easter eggs would continue til November.
<a href="https://www.realestate.com.au/property-house-tas-taroona-112393283" target="_blank">55 Channel Highway,Taroona, Tasmania</a>
<img src="/images/2014/04/17/image11.jpg" width="460" height="345">
Winmarleigh, the 1893 heritage estate in Tasmania’s Taroona, offers as much for the grown-ups as for the kids. The sandstone home, which has been the site of many a function, is on the market for the first time since its 1939 purchase by the late judge Sir John Demetrius.
While Winmarleigh has plenty of Easter egg hidey-holes in its five bedrooms, two bathrooms, a formal dining hall and eight original fireplaces, it’s the home’s study and library, pictured above, that offers the prime confectionery hiding spots. With bookshelves that extend to the ceiling, accessible only via ladder, this indeed might be one for the adults – 80% cacao dark chocolate eggs, please.
</body></html>

Four perfect properties for an Easter egg hunt

<html><body>
Purchasing a property can be a daunting task. The biggest asset purchase of your life will require a lot of hard work with all the associated research, financing and paperwork.
Property Observer has put together the five most important tasks ahead of your property transaction that will simplify the process and minimise your costs. 
<ol>
<li>
Check your borrowing limit It doesn’t matter how much you think you can contribute towards your home loan – it’s what the bank thinks that counts. If your finances aren’t in order, you could see your loan falling through and the house of your dreams slipping through your fingers. Before attempting to negotiate a purchase, have a good idea of what your borrowing capacity is. A <a href="/expert-insights/finance/a-quick-guide-to-home-loan-pre-approval">conditional pre-approval</a> from your lender of choice will allow you some time to shop around on the market with an idea of your borrowing capacity. Some pre-approval forms are very detailed, others are not. Try to fill in as many of your financial details as possible at this stage – it will minimise nasty surprises when you get to securing a formal loan offer.  After you’ve found a property that you’re interested in, you can get a final formal loan approval from your lender. 
</li>
<li>
Look at comparable properties Research, research, research. Without knowledge of how your property of choice stacks up against the competition, you’ll have no knowledge of its intrinsic value. Searching for property can sometimes be a case of love at first sight, but there might be a property you’ll love just as much around the corner, for a fraction of the price.  If you know you’re after a three bedroom apartment in the inner city, take a look at what else is on the market. Remember that comparisons run two ways – laterally and longitudinally. Don’t just see what else is available now, but consider the historical value of your property. Do property prices in your area seem to go through big seasonal swings? Now might not be the right time to buy, but a wait of six months may be just right. Our suburb data pages offer you a chart of past median values in your suburb of choice, along with any big news in the region that may affect your investment outlook. Draw on databases such as RP Data; if you don't have access, check your favourite listing websites and head along to other auctions in the area.  
</li>
<li>
Do a rigorous open home inspection The beautiful hyper-saturated real estate photos may be what brought you to the property in the first place, but when you get to the open home, you’ll have work to do. Purchasing a dwelling will be one of the biggest financial decisions of your life, so don’t take your opportunities to inspect the asset for granted.  Set aside your daydreams and check out the important details: noise levels, light levels, neighbourhood conditions, temperature and wear and tear. Come armed with a <a href="/news/how-to-assess-a-property-at-an-open-home">room by room checklist</a> and any questions for the real estate agent.  
</li>
<li>
Bring in the inspectors While you might have a keen eye, chances are that you aren’t an expert where it counts. A pest inspector can tell you if a termite infestation is likely to bring the home undone in a matter of years, while a building contractor can help spot asbestos or any structural problems that will cost you thousands down the track. Ask the vendors for an inspection report as soon as you know you’re interested in the property to <a href="/expert-insights/investing/the-importance-of-building-inspections-in-property-transactions">put you ahead of other buyers</a>. If you’re not satisfied with the quality of their report or the standing of their inspectors, contract your own experts to carry out the job. 
</li>
<li>
Speak to the experts Speaking of experts, having your own team will be vital when it comes to the crunch. If you haven’t transacted in property before, a <a href="/expert-insights/why-consider-a-mortgage-broker">mortgage broker</a> will be an invaluable asset. They have an arsenal of knowledge that you may not (and that your lender won’t necessarily tell you about), regarding things like lenders mortgage insurance or how to improve your credit rating. If you don’t have as much time as you’d like to devote to the financial dealings involved in a property purchase, a mortgage broker can help you determine the best loan for you and how to get it. To handle the paperwork and legal issues involved with purchasing a property, a good <a href="/expert-insights/investing/a-good-conveyancer-can-hold-a-property-transaction-together-penny-erskine">conveyancer is a valuable asset</a>. These specialised lawyers can tackle all the legal and statutory processes involved in the transfer process and advise you on the terms of your contract. If you're planning to purchase your property as a rental investment, speak to a property manager. There may be one who is already engaged with the property, who knows it well and can also give you the inside scoop on any recent works or pending maintenance issues, as well as the tenants. If you'd like to contract a new property manager, make sure you have a reputable one. To <a href="/news/how-to-choose-the-best-property-manager">choose the best property manager</a>, make sure you get them on the phone, ask for their fees and find out their track record with previous properties. Some will be happy to provide references as well.
</li>
</ol>
</body></html>

Five things you must do before buying

<html><body>
More than 100 of the 120 apartments offered in the second stage release at Sydney’s tallest residential development sold this weekend following the Saturday morning launch.
As of Sunday, 101 studio, one, two and three bedroom apartments had sold, with the Financial Review reporting that nearly 90 had sold by 10am on Saturday. Prices for studios began at $595,000, with a three bedroom apartment selling for $4.38 million.
Developed by Chinese state-owned developer Greenland Holding Group Co, the $680 million development will be 66 storeys and 235 metres tall upon completion, making it <a href="/expert-insights/buying/opportunity-to-buy-the-highest-penthouse-in-sydney">Sydney’s tallest residential tower</a>.
<a href="/expert-insights/buying/greenland-centre-launches-second-sales-stage">Greenland Centre’s entire first stage release has sold out</a>. Greenland Holding Group has reportedly reserved 40 to 50 units to market in Singapore and Hong Kong later this month.
Penthouses in the complex, which will offer buyers the highest view in Sydney, have not yet been released. 
</body></html>

Greenland Centre sells almost entire second release in two days

<html><body>
A reconstructed harbourside apartment on the tip of Sydney’s Elizabeth Bay peninsula has been listed with expectations over $1.8 million.
A three bedroom home in a former life, the <a href="https://www.realestate.com.au/property-apartment-nsw-elizabeth+bay-116670879" target="_blank">Elizabeth Bay Road apartment</a> has been renovated for the first time in two decades. Interiors were designed by Greg Natale, the man behind fashion designer Leona Edminston’s headquarters and a number of Sydney venues including the now-closed Nevermind, with its mouth shaped urinals.
The renovated apartment at Elizabeth Bay’s Oceana building is a somewhat more restrained affair, with a muted grey and purple colour palette and luxury finishings, including basaltina stone floors in the living and dining areas and polished stucco walls.
It is being marketed by Ian Campbell and Penny Timothy of Ray White Elizabeth Bay. Of the new fitout, Campbell said Natale and the owner completely reconstructed the apartment’s interior.
“This is a home of absolute sophistication - the detail in the interior design is without peer,” said Campbell.
“Before the current owner purchased the property in 2011, the home had not been renovated in more than two decades.
“The owner saw huge renovation potential and invested substantially to create streamlined, luxurious living.
“The owner worked with Mr Natale and gutted the entire apartment - they removed walls, floors and ceilings and basically rebuilt from scratch.
“This is a home that doesn’t need a thing added, every element is custom made - it is perfectly complete,” he said.
While the home is marketed as a two bedroom apartment, it is currently configured as a one bedroom, with the second room acting as a walk in robe and study. The residence’s main bedroom includes a separate balcony with water views.
86/108 Elizabeth Bay Road goes to auction on May 15 at 6:30pm.
</body></html>

Renovated Sydney waterfront apartment hits market

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

Jessie Richardson

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News