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Auction clearance rates have become one of the more widely reported property statistics over recent times.
But even in the big capital cities auctions account for a small number of sales – 11% of all house sales in Sydney in the 2009 financial year, according to Australian Property Monitors. For units, the proportion was even lower, with auctions accounting for 6% of all unit sales in Sydney in that period.
Canberra is the only other capital city where auctions accounted for more than 5% of all property sales.
But Rob Forde, a Ray White South Australian auctioneer, recommends vendors consider putting their properties to auction despite the slowing conditions of the current market.
“Auction in this market should not be feared – it should be embraced,” Forde says.
“In a market with so many unknowns, auction is one of the few things that provides certainty to buyer and seller alike.
“Especially with above-average listings, it is crucial to not put a price on the property.
“By not putting a price on the property, all buyers have the opportunity to look at the market and see where they think the value lies,” Forde says.
Auction has been producing results in all market and demographics, he suggested.
“I think all types of property should use the auction process in this market to get the best result – a cash unconditional contract with no cooling off, in a short time with a short settlement.
“Still, some vendors are choosing to be on the market for extended periods of time, in a climate where days on market are increasing, and then having to sign a contract with certain conditions, like subject to finance or subject to the sale of another property.
“At a time when days on market are blowing out and getting finance approval is becoming more and more difficult, it’s reaffirming to see the power of the auction process still proving itself.”
He suggested the initial clearance rate figure doesn’t necessarily take into consideration the power of the auction process in engaging buyer offers before the auction date.
He says often the buyer and seller have divergent opinions on the value of a property and the agent is there to find a middle ground.
“People may hold back hoping that they will be able to negotiate with the agent post auction,” Forde says.
“A well-run auction campaign identifies buyers and helps to determine a realistic price in today's market.
“It enables the negotiation process to get started and, most importantly, achieves the best price in the shortest possible time.”
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jchancellor-FAypfDUnLy

Auctions versus private treaty: certainty in uncertain times

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The historic Olderfleet building in Collins Street has been listed for sale by the Australian Unity Property managed office trust.
Offers for the intricate neo-Gothic facade building at 477 Collins Street close August 11. CB Richard Ellis institutional investment properties division agents Martin O’Sullivan and Mark Coster are handling the sale.
Its most recent valuation was $65.4 million as at November 2010. As at December 2009 there was a $63 million book value for the building – a decrease of $3.75 million from its 2008 book value.
Olderfleet is 100% leased, and the car park is leased and operated by S&amp;K Car Park Management. Its office tenants include Accenture, CapGemini,  Ernst and Young, Melbourne Conference &amp; Training Centre and Allens Arthur Robinson law firm.
There are price expectations of $72 million.
The complex consists of an eight-storey office building behind a series of classified historic facades dating back to 1884 – and protected from demolition during the 1970s building boom by public lobbying – a well as a large car park.
With a dual frontage site of 3,899 square metres, it has more than 40 metres of prime retail frontage on Collins Street.
The office investment has 11,986 square metres of net lettable area and a commercial car park of 598 bays off Flinders Lane.
Located between William and King streets in the CBD's popular western core, the property is currently substantially under-rented.
It has a net passing income of $5.7 million per year.
The office complex was built by Becton in 1985 behind the row of three historic terraces.
It was sold in 1994 by Becton Corporation for $40 million to Singaporean interests at a yield of 14.75% on its then net income of $5.9 million a year.
The sale occurred about the same time that Michael Buxton retired from Becton, thereby ending his two-decade long partnership with Max Beck.
It was later sold to the Acumen Office Trust established by Multiplex Capital in 2002 for $56 million.
Multiplex Capital achieved strong returns for investors, delivering an income yield of 9% per annum for the two years to 2007 which represented a total return of 11.3% over the five-year period. By 2007 Multiplex Capital had renewed leases for more than 11,000 square metres of space.
In 2007, after sounding out investors, there was a transfer of management rights to Australian Unity Property Limited.
“No one is celebrating wildly just yet, but there is strong evidence to suggest that the commercial property market is on the way to recovery and that the GFC is behind us,” Martin Hession, the head of property at Australian Unity Investments, told investors in his autumn 2011 review.
“During the December 2010 quarter, the commercial property market continued to improve, as valuations, sales activity and underlying economic fundamentals gained momentum.
Investors were told while commercial property values still remained relatively subdued, compared to pre-GFC valuations, there were indications of a broad correction across the market as assets came back towards fair value.
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Collins Street heritage office listing seeks to shed Gothic gloom

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Chris O’Donnell, the recently departed chief executive of the Dubai-based property developer Nakheel, is suing to seek $US3.7 million (AU$3.49 million) in lost incentives and entitlement fees, according to local court documents.
O'Donnell, who left Nakheel in June after five years, filed the lawsuit with the Dubai World Special Tribunal on June 22, citing a breach of contract, the Al Bawaba website reported.
He wants Nakheel to pay $3 million in long-term incentive payments he says were part of his employment contract, as well as interest on the unpaid incentive payments, worth $180,000.
The lawsuit also asks for payment of $290,850 for damages related to exchange rate losses, $180,000 in interest payments and $231,219 in salary-related claims.
The claim was lodged two weeks after he quit, which followed the conclusion of his contract.
O'Donnell, who earned 3.79 million dirhams ($965,000) a year as chief executive of Nakheel, is also seeking a business class airline ticket from Dubai to Sydney, where he has maintained a Hunters Hill residence, the documents showed.
Nakheel declined to comment on legal proceedings. O'Donnell and his lawyer were not immediately available to comment to Al Bawaba.
O'Donnell oversaw the delivery of the Palm Jumeirah and the man-made archipelago known as The World, but his last three years were spent guiding the company through a post-global financial crisis restructuring.
Nakheel announced O'Donnell's departure with a brief statement wishing him "all the best in his new endeavours".
The company has faced many legal battles as it struggles to finish a $US10.9 billion restructuring.
It has fought back with a series of claims against owners of islands on its world islands development, including one lawsuit against Kleindienst Properties which demands almost $200 million, according to a filing with the special tribunal.
Nakheel recently said it secured approval from 100% of banks and a required majority of trade creditors for its restructuring.
The builder of man-made palm-shaped islands said its restructuring would be completed with the issuance of Islamic bonds to its trade creditors.
Nakheel's potential $1.6 billion Islamic bond was delayed from June to July, two sources familiar with the matter advised Al Bawaba last month.
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Departed Dubai boss seeks air ticket home

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<img src="/images/stories/attadale-cropped.png">
Figures released by SQM Research have revealed residential listings fell by 5,650 to 363,839 nationally in June.
It was a 2% decrease from May, yet still a 23% increase compared with June 2010.
Each capital city experienced a month-on-month decline except Darwin, where stock rose by 1% from May.
The capital city to record the largest month-on-month decline was Hobart, falling by 6% to 1,809.
The capital city to record the largest year-on-year increase was Melbourne, rising 47% since June 2010 to 43,308.
No capital city recorded declines in stock year-on-year, though Brisbane recorded the most modest growth, rising by 19% to 30,080 since June 2010.
“This is the second consecutive monthly decline in listings and although to a certain extent this result can be attributed to seasonal factors, as we enter into the quietest time of the year for new listings, it is possible that stock levels have now peaked for the cycle,” SQM Research managing director Louis Christopher says.
"Real estate listings remain at levels high enough to record overall house price falls, however we note that the level of listings may have also finally peaked.
"It's too early yet to call a bottom in the current housing downturn and even when it eventually does come, a recovery is very likely to be slow. But clearly we are much closer to a bottom in the market than where we were 12 months ago.
"Much is dependent upon the direction of interest rates and any type of meaningful government intervention in the marketplace."
Flora Street is one of four WA entrants on the list of 10, along with Stock Road, in Attadale (pictured above).
 Top 10 most discounted properties
Rank 1
Address: 4 Flora Street
Suburb: Midland, WA
Postcode: 6056
First seen: 16/08/2009
Initial price: $1,900,000
Now asking: $850,000
Reduction: 55%
Days on market: 687
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008173508">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008173508</a>&gt;
 
Rank 2
Address: 1350 Wynnum Road
Suburb: Tingalpa, QLD
Postcode: 4173
First seen: 06/11/2010
Initial price: $700,000
Now asking: $380,000
Reduction: 46%
Days on market: 238
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579</a>&gt;
 
<img src="/images/stories/most-discounted--boolari-cropped.png">
Rank 3
Address: 3 Boolari Road (above)
Suburb: Gosford West, NSW
Postcode: 2250
First seen: 08/07/2009
Initial price: $990,000
Now asking: $580,000
Reduction: 41%
Days on market: 724
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903</a>&gt;
 
Rank 4
Address: 1/21 Ocean Drive
Suburb: Coogee, NSW
Postcode: 6166
First seen: 23/05/2010
Initial price: $2,700,000
Now asking: $1,600,000
Reduction: 41%
Days on market: 405
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670</a>&gt;
 
Rank 5
Address: 232-234 High Central Road
Suburb: Macleay Island, QLD
Postcode: 4184
First seen: 11/01/2009
Initial price: $279,000
Now asking: $175,000
Reduction: 37%
Days on market: 903
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500</a>&gt;
 
Rank 6
Address: 25 Vicary Street
Suburb: Triabunna, TAS
Postcode: 7190
First seen: 02/08/2010
Initial price: $299,000
Now asking: $189,000
Reduction: 37%
Days on market: 336
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614</a>&gt;
 
Rank 7
Address: 290 Viveash Road
Suburb: Swan View, WA
Postcode: 6056
First seen: 05/06/2008
Initial price: $2,290,000
Now asking: $1,500,000
Reduction: 34%
Days on market: 1124
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295</a>&gt;
 
Rank 8
Address: 3 Zelma Court
Suburb: Macleay Island, QLD
Postcode: 4184
First seen: 23/05/2010
Initial price: $380,000
Now asking: $250,000
Reduction: 34%
Days on market: 405
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105294317">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105294317</a>&gt;
 
Rank 9
Address: 46a Stock Road
Suburb: Attadale, WA
Postcode: 6156
First seen: 21/03/2010
Initial price: $2,690,000
Now asking: ^$1,790,000
Reduction: 33%
Days on market: 468
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106404560">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106404560</a>&gt;
 
Rank 10
Address: 1/16 Dewar
Suburb: Ledge Point, WA
Postcode: 6043
First seen: 15/11/2009
Initial price: $375,000
Now asking: $250,000
Reduction: 33%
Days on market: 594
 &lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206</a>&gt;
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West Australia dominates top-10 discount list

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The Campbell’s Corner retail premises, Muswellbrook’s original town shopping centre, has sold for $3.2 million. It last sold in 2005 for $3.8 million.
The historic property in the Upper Hunter mining district town has been bought by the local council, which views the site as the ideal location for a regional convention and entertainment centre.
Built in 1870, the site’s current enlarged retail property, with its dramatic tower, was added in 1910 by Walter Barrett, who became the mayor of Muswellbrook in 1915. Mr Barrett was a timber merchant, builder and chairman of Muswellbrook Coal Company for 35 years.
It was in 1862 that Scottish retailing pioneer Malcolm Campbell purchased a Muswellbrook store from John Ferguson. But after the arrival of the railway in 1869, Campbell moved from Sydney Street to Bridge Street, which he judged would become the commercial centre of the town. In 1870 he built a two-storey store and as the business prospered, the building was extended in 1879 and 1891.
The building is on a prominent 6,106-square-metre site with frontage to Bridge and Brook streets, close to the end of the New England Highway.
Its fully-leased income potential is estimated at $640,000, with current tenants including a Franklins supermarket, specialty shops and first floor offices. It has 5,363 square metres of gross net lettable area.
The council says no existing tenant will be dislocated as a result of the acquisition and any redevelopment set to be undertaken.
The council plans a four-stage renovation and extension process, attaching a new auditorium when Franklins moves out. Franklins occupies 1692 square metres on a lease until 2017, with a 10-year option.
“There is no current timeframe for the development of a regional convention and entertainment centre,” a council spokesman said.
“Council is currently going through the process of preparing a concept masterplan in readiness for seeking sources of funding,” he says.
Muswellbrook is a coal mining town and the centre of an important pastoral and dairy area. It boasts three shopping centres: Campbell's Corner; the Muswellbrook Marketplace on Sowerby Street in the north; and the new Muswellbrook Fair along Rutherford Road in the south of the town.
Campbell’s Corner was listed in April last year through CB Richard Ellis agents Steven Lerche and Harry Bui.
In 2008, on its initial listing, more than $6 million was being sought.
On its 2005 purchase through Street Real Estate, investment company Romarx Pty, directed by the Saul family from Sydney’s eastern suburbs, also bought the Singleton Neighbourhood Shopping Centre for $2.7 million. The family company still retains ownership of the Singleton centre.
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Upper Hunter mining town retail gem suffers 15% price slide

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The June sales figures of Australasian real estate group Ray White came in at $2.07 billion, virtually steady with the $2.1 billion tallies for May and April.
But Ray White’s monthly figures reflected a continued 14% decline in sales against last June, which likewise mirrored the sales tally of early last year.
“At around $2.1 billion, it is very much business as usual relating to the monthly patterns since January 2011,” chairman Brian White says.
“Overall property prices in the last 12 months have eased, with many areas already experiencing a significant reduction,” he says.
“There is no doubt that many are believing that current conditions reflect smart buying opportunities.
“The recent decision by the Reserve Bank of Australia to hold interest rates at current levels – and the New Zealand Reserve Bank even decreased theirs early this year – may well suggest that we may be in the bottoming part of the cycle.
“A constant comment is that this is the perfect time to upgrade one’s residential property.
“It makes more economic sense to sell and upgrade when prices are constrained than when prices are out of control.”
He says relatively few of his offices reported an oversupply of stock for sale.
“Building activity is at a low level, so a dramatic oversupply is not looming as a fundamental problem.
“All markets had significant continuing activity, with any slight further easing in values since January covered by an increased number of sales,” he noted of the Ray White tally.
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June market steady: Ray White

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Property auctions have lost their lustre, with falling clearance rates contributing to a pall over the market.
The decline in clearance rates has been accompanied by a rise in poorer voluntary reporting of results.
Some 20% of Melbourne’s auctions results now come with the price marked ''undisclosed'' – a significant increase from last year when it was sitting at about half that level.
A recent survey also revealed that 43% of properties scheduled for auction in June had no published price range, frustrating buyers' attempts to obtain basic listing information, according to The Age.
The same trend has not been as evident in the reporting of Sydney results.
Not that long ago, houses were selling for prices undreamed of with many already-inflated reserves being topped by thousands of dollars as frenzied purchasers bid for what they believed to be their last chance of acquiring a home.
The lowest clearance rates in Melbourne have been in Sunshine North, with just a 42% success rate over the past year, according to APM, along with Highton, at 44%, and Sunshine West, at 46%.
In the first six months of the year, according to the REIV, Melbourne clearance rates city-wide 59%, with four suburbs having a success rate of more than 80%, led by Chadstone with 86% of auctions resulting in a sale. Windsor's clearance rate was 82%; Abbotsford and Donvale were 81%.
The Sydney housing market remains relatively quiet, with auction clearance rates stabilising at levels consistent with the normally-subdued winter selling season, according to Andrew Wilson, the senior economist at Australian Property Monitors.
Recent data shows that while much of the Sydney property market has cooled, many suburbs in the inner-west have been well above the overall 55% Sydney clearance rate, including Enmore, Lilyfield and St Peters, which all achieved 80%-plus success rates.
But some suburbs lag considerably behind, including Church Point at 45% over the year to April, Darling Point at 43% and Yowie Bay with 44% success rate under the hammer.
The stark overall drop in clearance rates from the 70% and 80% of recent years coincides with the typical winter slowdown in auctions, so the reduction in stock might typically be expected to provide a floor for the clearance rate.
A recent Real Estate Business poll found 64% of 322 estate agent respondents indicated that private treaty was the most effective sales strategy in the current market.
But some agents argued that agents who were not actively embracing auctions in the current flat market were not being honest with their clients.
“As the price of properties fall, only the poor agents fall back to private treaty,” says Ray White Caloundra Group director Tom Garland.
“This type of agent shies away from the true, tough nature of our industry: the truth and brutal honesty. That truth is to be honest with our clients and give the news from potential buyers back to the seller as to what they believe properties [are] worth.”
Results this year show his Caloundra office has been clearing 79% of properties in 48 days through the auction process, while private treaty clearance is running at 18% on 121 days.
Ray White auctioneer in South Australia Rob Forde maintains auction in this market should be embraced, rather than feared.
“In a market with so many unknowns, auction is one of the few things that provides certainty to buyer and seller alike,” Mr Forde says.
General manager of sales at McGrath Estate Agents, Matt Lahood, says where there are not a lot of comparable sales, people are probably better off paying for an auction.
He says the decision could depend on the area, as some markets are less amenable to auctions. Larger properties, which can take longer to sell, might suit a private treaty sale.
"If it's a unique waterfront or something that's rare, you'd definitely auction it," Mr Lahood says.
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Auctions versus private treaty: the debate over the right listing decision 

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<img src="/images/stories/branson3-cropped.png">
Makepeace Island, Virgin tycoon Richard Branson's getaway off the Sunshine Coast, has now been opened to the luxury resort hire market.
It costs $7,900 a night for a party of eight guests and up to $16,890 a night in peak season for up to 22 guests. It’s a bit cheaper than Branson’s Necker Island in the British Virgin Islands, which costs $US53,000 ($A49,380) per night to hire.
Once a muddy patch of land floating on the Noosa River, the 9.2-hectare heart-shaped island has been transformed into an ultra-luxurious Balinese-style retreat with 11 bedrooms.
Sir Richard, along with Virgin Blue executives Brett Godfrey and former colleague Rob Sherrard, bought it for $2.86 million in 2007.
On its purchase Sir Richard said he had purchased it as a present to his employees.
"It's incredible when you think of the achievement that all of the staff have done down here. Airfares have halved and hundreds and thousands of more people are travelling," he said.
"None of that could have been possible had it not been for our magnificent staff.
"As a thank you, we have bought a beautiful island off Noosa for the staff to use with their friends to come and party," Sir Richard said. 
But the initial plans to develop it as a luxury staff resort failed to gain Noosa Council approval. In 2008 work finally began to renovate the old timber cottage on Noosa's only privately owned island.
The subtropical island, six kilometres upstream from the coast, originally featured a classic 1911 Queenslander residence with corrugated iron roof dating back to the days when the island was known as Pig Island.
The property now comes with a main long house with a giant bar, a four-bedroom guesthouse, several two-bedroom villas, a boathouse and a lagoon pool with a lap lane, dive spots and a 15-person spa.
The island has its own riverboat to transfer guests, a full-sized tennis court, outdoor cinema, two-storey open-air Balinese wantilan, a games room and office facilities.
Sir Richard, who says Noosa is his "favourite place in Australia", says Makepeace is available for whole-of-island rental only. It comes with staff, who prepare all meals. 
"When neither Brett nor myself are visiting Makepeace, we will make the island and its facilities available for others to enjoy the tranquility of what is a very special place," Branson said.
The house had been the home of artist Brian Spencer and his wife, Beverley, between 1980 and 1997.
Makepeace Island was first owned by Charles Nicholas, who built the Queenslander in 1924. The island, alongside the Sheep and Goat islands, was renamed after a spinster housekeeper named Hanna Makepeace who inherited the house after starting work there in 1924. 
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Sir Richard Branson’s Noosa getaway for hire – for $17,000 a night

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House rent increases have lagged increases for apartment over the past five years, according to the latest RP Data rental report.
Capital city rents increased at an average annual rate of 7% for houses and 7.9% for units over the past five years.
But since 2009, capital city house rents have increased by just 4.1% while units have performed relatively stronger with rents increasing by 8.6%.
Across the nation, house rents have increased by just 4.3% since the beginning of 2009, while unit rents are up by 7.6 %.
Mr Kusher said the result is an indication that rental demand for units has been much stronger than for houses.
“The result reflects changing lifestyle patterns and the ongoing densification of inner-city areas and subsequent increasing demand for rental units in these regions,” he said.
For units, rents are most expensive in Sydney ($450/week) and Canberra ($430/week). Hobart is home to the most affordable rental units ($280/week), followed by Adelaide ($290/week) and Melbourne ($350/week).
Despite a quarterly slow-down in rental growth, the lack of first home buyers and limited supply of new housing may be creating increased competition, Mr Kusher said.
“This activity may be beneficial to investors who could see a boost in rental rates as vacancies tighten and fewer new dwellings continue to commence construction.”
Pilbara in the WA has the most expensive rents of all rental markets, at $1,650 a week for houses, according to RP Data.
Darwin has highest median rents followed by Canberra and Sydney. The cheapest capital cities to rent are Adelaide and Hobart.
Weekly rental rates increased nationally by 2.9% over the past year – slightly higher than the 2.7% increase in the capital cities.
The national median rental rate is currently $360 a week with the combined capital city median at $380.
According to the results, rental growth has tracked below average over the past 12 months; a trend which has been evident since early 2008 when rental demand started to slow.
“Combined capital cities rents increased by 2.7% over the year, which is below the inflationary figures to March 2011,” Mr Kusher said.
 
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Units yielding bigger returns than houses for investors

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Faced with the prospect that imports could cost growers a third of their income, Apple and Pear Australia has unveiled its strategy, the Aussie Apple Accord, to help the industry survive apple imports.
It envisages domestic production will be about 11% lower and farm income will be about 32% lower by 2014.
The average Australian orchard is 9.4 hectares and produces about 31 tonnes per hectare annually from about 1200 trees per hectare. The strategy, written by the Centre for International Economics, suggests apple consumption in Australia could be 17% higher, but adds there is a likelihood of imports achieving a 22% market share by about 2014.
The price of domestic apples is estimated to be 35% higher than the potential landed price of imported apples, although domestic wholesale prices are unlikely to fall by the full extent of the differential.
The accord, presented to Federal Agriculture Minister Joe Ludwig last week, outlines a $124 million plan, with funds from government and industry to help make the industry more competitive through investment in computerised irrigation, environmental covers, accelerated depreciation and packing house consolidation.
"It's going to be a tough time. We're not saying bail us out with a hand out," says general manager of Apple and Pear Australia, Jon Durham.
The Centre for International Economics report notes the relaxation of quarantine restrictions was expected to see the introduction of imported apples from China, New Zealand and the United States within the next few years.
“This represents a significant challenge for the Australian apple industry as the industry is uncompetitive by international standards,” it says.
The report estimates farm gate prices will be about 21% lower and wholesale prices will be about 13-14% lower after the relaxing of quarantine restrictions by 2014.
It noted Australian growers lag behind international competitors on productivity, its product quality is inconsistent, and the supply chain is highly fragmented, preventing Australian producers from taking advantage of economies of scale in packing and marketing.
Based on ABS data and industry consultation, the CIE identified the need within industry of a gradual transition towards more commercially favoured varieties, such as Pink Lady, Gala, Granny Smith, Jazz and Fuji. High density planting would lead to productivity improvements when combined with more intensive or more effective orchard management.
The report said Australian producers had been slower than international competitors, particularly some European countries and New Zealand, in transitioning to higher-density production.
It suggested the trend over the past eight years was for the number of orchards to decrease at a rate of 3% each year.
The report noted yield per hectare was one of the leading indicators of the current competitiveness of the Australian industry.
Many costs on a per-kilogram basis fall as yield improves.
“Yield has a strong link to profitability because as the tonnage per hectare rises so too does the first quality yield for which producers receive a higher return.
“Strong performing enterprises have pack out rates around 85% with approximately 75% of product recovered in class one markets.
“In Australia, second quality product receives between 35 and 75% less than first quality product depending on the variety.”
The percentage product graded first quality has been relatively high in Australia compared with competing nations, however, this may be because of less stringent specifications on a range of indicators of eating quality.
Australian producers tend to have higher production costs than competitors, due largely to the cost of labour. Labour comprises two thirds of total costs, with the on-farm labour equating to one third of total variable costs.
“Because quarantine restrictions limit imports, they allow domestic producers to charge higher prices than they could if the restrictions were not in place,” it noted.
“Domestic apple prices will continue, to an extent, to be supported through quarantine requirements that add to the cost of exporting to Australia.
“The relative isolation of Australian markets to international producers, particularly the United States, will also offer some support.
“The bottom line is that imported apples are likely to be more competitive in Australian markets after quarantine restrictions are relaxed to an extent which permits trade,” it says.
The ABS estimates total tree numbers in Australia in 2008–09 was approximately 10.45 million.
In 2009, Australia exported just 1.5% of its total apple production to overseas market.
Prior to 2004, exports were significantly higher, averaging between 8% and 13% of total production. Analysing the average volume and prices of Australian apples sent to overseas
markets, the report notes the United Kingdom accounted for an average of 13% of apples. The average price received over this period was A$3.27 per kilogram. Indonesia, which received 13% of total export volumes, had export prices averaging A$2.57 per kilogram over the period.
About 68% of apples exported over the past three years were valued at less than A$1.80 per kilogram and about 39% were valued at less than A$1.20 per kilogram. Almost half of apples exported in the past three years were Red Delicious from Tasmania.
Under current plant protection regulations, exporters in foreign countries wishing to send fresh fruit or vegetables to Australia must first lodge an application with the Australian government.
Decisions to permit or reject an import application can be made only on sound scientific grounds.
These arrangements mean Australia’s domestic industries are insulated from import competition until appropriate quarantine arrangements have been put in place.
In August 2010, the WTO ruled that Australia’s phytosanitary measures for New Zealand apples were not justified.
The Australian government appealed, however, the appeal was lost in November 2010.
In December the Australian and New Zealand governments agreed that a review by the Director of Quarantine would be completed on August 17 this year.
Although some quarantine restrictions on apple imports have already been relaxed, Chinese apple imports have not yet hit the Australian market, with November tipped as the likely month for imports to begin.
Apples from the United States could arrive in the Australian market as early as 2012, most likely in late September or early October.
</body></html>

Apple imports could slash grower incomes by one third: peak body

International developer&nbsp;<a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> is preparing to re-launch its long-awaited $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a> development at Budds Beach, bringing a new price point to the Surfers Paradise apartment market.

The developer will release one-bedroom apartments from $825,000 and two-bedroom apartments from $1.24 million in the three-tower development.

According to Urbis, the starting price for the two-bedroom apartments is more than $400,000 below the weighted average sale price for comparable two-bedroom apartments in Surfers Paradise during 2025, which was pinned at $1.7 million.

&nbsp;

Urbis reported quarterly average sale prices for new two-bedroom, two-bathroom apartments ranged from around $1.2 million to $1.7 million throughout 2025, peaking in the December quarter.

[smartcode_project:default project_id=106566 project_image_fid=185853]

Paradiso Place is now moving into its formal sales campaign, with a limited early-release opportunity available ahead of the public launch.

The development will comprise 845 apartments across three towers rising 40, 41 and 44 storeys from a 1.15-hectare site spanning an entire city block. The towers will sit above a new retail precinct.

"Paradiso Place represents a rare opportunity in today's market, offering premium apartments at a price point that is significantly more competitive than anything else currently available," SPG Land Sales Director Brad McMahon said.

"When you look at comparable new developments across Surfers Paradise, Main Beach and the Southern Beaches precinct, buyers are typically paying hundreds of thousands more for a similar product.

"The scale of this project and the developer-builder construction model allows us to unlock efficiencies that smaller developments simply cannot achieve. We are passing those benefits directly to buyers, while still delivering a five-star residential experience with an unmatched lifestyle."

[smartcode_project:default project_id=106566 project_image_fid=374280]

Each of the three towers designed by Rothelowman will have its own podium, connected by an elevated skybridge network to create a beachside village for residents. The resident amenity has been designed to rival a five-star hotel, with private dining rooms, resident lounges and entertainment spaces.

McMahon said the pricing strategy was a deliberate response to the current market.

"What Paradiso Place offers is a unique balance, genuine value within a premium market. Buyers are not compromising on quality, design or amenity, they are gaining access to it at a more competitive price point at a time when prices across the Gold Coast continue to reach new highs."

[smartcode_project:default project_id=106566 project_image_fid=362498]

Located around 100 metres from the beach and within walking distance of the Surfers Paradise North light rail station, Paradiso Place occupies one of the Gold Coast's most tightly held beachfront precincts.

Construction is continuing to progress, with eight of the project's 112 foundation piles now complete. Excavation has also commenced on the first diaphragm wall panel, with the first concrete poured on 15 June, marking a key milestone in the project's early works program.

[smartcode_project_cta:default project_id=106566]

Joel Robinson

SPG Land launches $1.5 billion Paradiso Place at attractive price point

Luxury developer-builder <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> has achieved a new Victorian benchmark for an off-the-plan apartment, with the sale of two penthouses at its ultra-exclusive Maison Savoy development in Brighton.

The two penthouses achieved a combined sale rate of $49,926 per sqm. Both transactions eclipsed the previous identified Victorian off-the-plan price-per-square-metre benchmark, set by the 449 sqm apartment at Como Toorak, which sold at $46,659 per sqm.

[smartcode_project:default project_id=140818 project_image_fid=366473]

<a href="https://www.apartments.com.au/new-apartments/maison-savoy-brighton-150-esplanade-brighton-vic-3186">Maison Savoy</a>, Lowe Living's redevelopment of the former Brighton Savoy Hotel on absolute beachfront land at 150 The Esplanade, Brighton, has gained significant momentum since launching just eight weeks ago. Around 30 per cent of the project's 19 residences have already been secured, generating approximately $45 million in sales.

"Securing two of the three penthouse sales at this stage, within eight weeks of launching to market speaks to the confidence our clients place in Lowe Living," Lowe Living co-founder Emma Lowe said.

"They know we'll be with them through every stage of the journey, and that assurance is something we've worked hard to earn and never take for granted."

[smartcode_project:default project_id=140818 project_image_fid=366474]

Lowe said Maison Savoy was conceived as a genuine alternative to a prestige Brighton home, combining house-scale proportions with the convenience, security and lock-up-and-leave appeal of apartment living.

Lowe Living co-founder Tim Lowe said the early sales success demonstrated the resilience of Melbourne's prestige market and highlighted the growing demand for house-sized apartments among ultra-high-net-worth buyers.

"The Melbourne market has definitely been tested in recent years, with interest rates and global economic factors all creating a period of uncertainty across the real estate sector. The sales success at Maison Savoy however demonstrates that confidence remains exceptionally strong at the top end of the market.

"The prestige market is being driven by long-term lifestyle decisions rather than short-term market sentiment, which continues to create a level of certainty that befits an absolute beachfront property in a blue-chip location like Brighton.

"Brighton's fundamentals remain among the strongest in Melbourne, with limited new supply, enduring demand from an overwhelmingly local owner-occupier market, and a rare combination of beachfront amenity and proximity to the CBD."

[smartcode_project:default project_id=140818 project_image_fid=374378]

According to Cotality, Brighton remains one of Melbourne's most tightly held prestige suburbs, with an average ownership tenure of 15.3 years for houses and 12.3 years for units, while more than 73 per cent of homes are owner-occupied.

Tim Lowe said selling two of the project's three penthouses so early in the campaign was an uncommon result.

"This sales result is a reflection of quality and understanding the local market. It's incredibly rare to transact the penthouses so early in a sales campaign in any project so to have sold two of the three penthouses at Maison Savoy so soon after launch, all in-house without any external sales agency appointed, is reflective of our careful consideration of our buyers' needs and lifestyle.

"This is knowledge that is accumulated not just from data and demographic analysis, but via a deeply embedded understanding of how this type of buyer wants to live and feel in their home. We pride ourselves on getting to know our clients personally, and over the last 10 years we have been able to refine our product offering by talking one-on-one with our clients about their design and floorplan preferences.

"Being a fully integrated developer-builder with an in-house design and sales team allows us to lead every part of the process and ensure the highest quality of product and service at every touchpoint. It's a really important part of our DNA and the recent sales success at Maison Savoy indicates that our clients and purchasers are resonating with this point of difference.

"It reinforces that demand remains strong for thoughtfully designed residences that offer rarity, lifestyle and long-term value in tightly held locations, which ultimately validates Maison Savoy's positioning as creating a new benchmark for house-scale, wellness-led apartment living on Brighton's beachfront."

&nbsp;

[smartcode_project:default project_id=140818 project_image_fid=366480]

The residences at Maison Savoy start from 295 sqm, with most enjoying uninterrupted views across Port Phillip Bay. The project sits moments from the Brighton Bathing Boxes, Royal Brighton Yacht Club, Middle Brighton Baths and Church Street's retail and dining precinct.

A key feature of the development is its private residents-only bathhouse, curated by the founder of Aurora Spa &amp; Bathhouse and modelled on traditional European bathing rituals and the award-winning Sorrento bathhouse.

The wellness offering includes a hydrotherapy pool, salt room, sauna, steam room, cold plunge pool, foot activation zone and a Vichy rainfall bed, one of only a handful in Australia. Residents will also have access to a Technogym studio, lounge spaces and a dedicated concierge service offering everything from morning coffee delivery and restaurant bookings to dry cleaning and home coordination.

"Wellness-led design has become a defining factor for luxury buyers," Emma Lowe said.

"Purchasers increasingly value homes that enhance wellbeing through thoughtful design, private amenity, privacy and liveability."

The penthouse purchasers are now undertaking a bespoke customisation process curated personally by architect Pete Kennon and the Lowe Living team, one of the developer's signature service offerings.

Construction on the $160 million transformation of the former Brighton Savoy Hotel site commenced last month, with completion expected in early 2028. The project has secured funding from NAB alongside development partner Monark.

Just one penthouse remains available, along with a limited number of two and three-bedroom residences starting from $3.75 million.

Lowe Living currently has eight projects on the market across Melbourne and recently celebrated its 10th anniversary, having grown a $1 billion development pipeline alongside a $350 million construction pipeline.

&nbsp;

[smartcode_project_cta:default project_id=140818]

Lowe Living set new Melbourne off the plan apartment record

For more than three decades, Hyecorp has been delivering residential projects across Sydney's Lower North Shore, building a portfolio centred on design-led apartment living in some of the city's most established neighbourhoods.

Hyecorp recently launched the latest in its long line of apartment developments, Celine, a 29-storey tower on Archer Street in Chatswood. Like the majority of the developer's projects, Celine caters to a broad buyer demographic, offering a mix of one, two, three and four-bedroom apartments, all designed with owner-occupiers in mind.

Functionality and flexibility are often buzzwords in the new apartment market, but they sit at the core of Hyecorp's design philosophy.

Hyecorp Joint Managing Director Stephen Abolakian says the developer understands it isn't designing apartments for today's needs alone, but for how buyers will live several years into the future.

"When we launch our projects we need to be aware that these developments aren't finished for several years," Abolakian says.

"That home office in the here and now might be a nursery by the time the project completes for a prospective buyer, so we need to think about how the apartment spaces function for future uses so there's longevity in the ownership."

Celine's architects, Fuse, followed the same philosophy, saying the design extends well beyond aesthetics.

"Celine focuses on timeless architectural form and functionality, with a strong emphasis on light, proportion and materiality. The design responds to the urban context of Chatswood while delivering calm, highly liveable interiors that feel both contemporary and enduring. The floorplans have been carefully resolved to maximise usability and outperform typical market offerings in terms of efficiency and liveability."

Most apartments incorporate multipurpose rooms designed for flexibility. Each includes an integrated desk and a standard Murphy pull-down single bed, allowing the space to transition from a home office or study to guest accommodation as needs change. The layouts have also been designed to maximise natural light, storage and overall functionality.

One and two-bedroom apartments feature Miele appliances, while three and four-bedroom residences are appointed with integrated Gaggenau appliances and Taj Mahal stone benchtops.

Buyers who purchase early in the construction process can also take advantage of Hyecorp's "Live Your Way" interior design service, allowing them to personalise finishes and tailor elements of their home to suit their own lifestyle. It's a feature designed to appeal to owner-occupiers who want their apartment to feel uniquely theirs from the day they move in.

[smartcode_project:default project_id=149594 project_image_fid=362614]

While flexible floorplans have become a hallmark of Hyecorp's apartment design, the developer has also continued to place significant emphasis on resident amenity.

As buyers increasingly expect more from apartment living, shared spaces have evolved beyond a gym and barbecue area. They are now an extension of the home, providing spaces to relax, exercise, entertain and connect with neighbours.

At Celine, the resident amenity has been designed with a focus on wellness, centred on the level six podium. An infinity-edge swimming pool, spa, sauna and fully equipped gym are complemented by barbecue facilities and a residents' lounge, creating a range of spaces for relaxation, recreation and social connection above the streets of Chatswood.

Practical conveniences have also been integrated throughout the building, including EV charging provisions, smart parcel lockers, bicycle storage, a pet wash station and dedicated car wash bays, reflecting the project's focus on making everyday living as seamless as possible.

[smartcode_project:default project_id=149594 project_image_fid=362633]

"Celine has been designed to deliver a refined residential experience that reflects the evolution of Chatswood into a premium urban centre,"&nbsp;Abolakian says.

"With over 30 years of experience delivering projects across Sydney's Lower North Shore, Hyecorp brings a deep understanding of what local buyers value. Every detail has been considered to balance luxury, functionality and long-term liveability. This is not just about apartments, but about creating a lasting residential address for discerning buyers."

Hyecorp, vertically-integrated builder-developer, is anticipating construction commencement later this year.

[smartcode_project_cta:default project_id=149594]

Hyecorp brings 30 years of Lower North Shore experience to Celine in Chatswood

Burgeoning South East Queensland developer <a href="https://www.apartments.com.au/developers/frank-developments">Frank Developments</a> is continuing to pad out its capital city development pipeline.

The developer, led by Frank Licastro, has its sights set on Kingsford Smith Drive in Hamilton, where it is planning <a href="https://www.apartments.com.au/new-apartments/avela-60-kingsford-smith-drive-albion-qld-4010">AVELA</a>, a 166-apartment development across three towers that tier down from 28 storeys to 19 and 17.

The towers will rise above the iconic Breakfast Creek Hotel.

Frank has brought on Melbourne architecture practice <a href="https://www.apartments.com.au/architects/rob-kennon-architects">Kennon</a> to design the building, conceived as a “defining architectural marker where the airport corridor meets the inner city.”

<img alt="First look: Frank Developments plans sculptural AVELA for Brisbane's Breakfast Creek gateway" data-entity-type="file" data-entity-uuid="e787c64e-f0a4-4725-891e-e86b40ee5c5c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/AVELA.png?VersionId=1ulwuZ9w2vQ2td7v.J2zUI7Ih_DT4Kwz" />

Kennon describes the project as a once-in-a-generation opportunity.

"Positioned at the northern gateway of Brisbane's primary CBD corridor, this project represents a singular moment in the city's urban evolution, one that will not come again," the architecture practice said in the documents submitted to the Brisbane City Council.

"Where the airport and world beyond meets the city, the building will rise as a sculptural landmark, a defining piece of architecture that signals arrival into Brisbane and anchors the connection between the city and the communities to its north."

<img alt="First look: Frank Developments plans sculptural AVELA for Brisbane's Breakfast Creek gateway" data-entity-type="file" data-entity-uuid="d572bf62-a98d-4847-95d0-889e3d3283e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/AVELA%20podium.png?VersionId=6.Ax4jBzTbY5ahm55iaMWNR03ODhDQSm" />

The development is centred around owner-occupier apartments, with a mix of two, three and four-bedroom residences designed to capitalise on city and river views.

Four basement levels accommodate resident parking, allowing the podium to prioritise pedestrian activity and public-facing uses like ground-floor retail, a cafe, a&nbsp;neighbourhood grocer, and a public accessible indoor pickleball court and event space.&nbsp;

There will be nearly 2,000 sqm of communal wellness and recreation facilities across three levels.

<img alt="First look: Frank Developments plans sculptural AVELA for Brisbane's Breakfast Creek gateway" data-entity-type="file" data-entity-uuid="c5ac3cbf-3c11-4219-89f3-e12d9e0f9ffd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/AVELA%20podium%20A.png?VersionId=_.4zd1HLCKa1s6I_oxkY4NNqX6o3Yevn" />

&nbsp;

Frank Developments has increasingly focused on design-led residential projects across South East Queensland.

AVELA is Licastro's second on Kingsford Smith Drive following <a href="https://www.apartments.com.au/new-apartments/alba-92-kingsford-smith-drive-hamilton-qld-4007">Alba</a>, 85 apartments just down the road. The developer has <a href="https://www.apartments.com.au/new-apartments/mira-61-garfield-terrace-surfers-paradise-qld-4217">MIRA</a> and <a href="https://www.apartments.com.au/new-apartments/myst-burleigh-heads-270-the-esplanade-miami-qld-4220">MYST</a> on the Gold Coast, as well as <a href="https://www.apartments.com.au/new-apartments/murano-teneriffe-37-wyandra-street-new-farm-qld-4005">Murano</a> coming up in Teneriffe and <a href="https://www.apartments.com.au/new-apartments/bel-air-33-oxlade-drive-new-farm-qld-4005">Bel Air in New Farm</a>.

Frank Developments plans sculptural AVELA for Brisbane's Breakfast Creek gateway

ASX-listed developer <a href="https://www.apartments.com.au/developers/stockland">Stockland</a>&nbsp;is continuing its push back into the new apartment market, filing plans for a prominent gateway site between Collingwood and East Melbourne.

The development giant, which moved back into the new apartment space when it announced Stanton Place in Sydney's Rosebery and have since filed plans for a 50-storey tower, are jumping into the off the plan Melbourne market.

They are hoping to create a mixed-use neighbourhood precinct for <a href="https://www.apartments.com.au/new-apartments/79-81-victoria-parade-collingwood-vic-3066">79-81 Victoria Parade</a>, replacing an existing commercial building with a scheme by <a href="https://www.apartments.com.au/architects/john-wardle-architects">Wardle</a>&nbsp;for 478 apartments,&nbsp;ground-floor retail, new public open spaces and a publicly accessible pedestrian laneway.

<img alt="First look: Stockland plans new mixed-use neighbourhood precinct for Collingwood gateway site" data-entity-type="file" data-entity-uuid="72dbbca9-3918-4073-afad-a0c0c35be8e7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%20pers.png?VersionId=bzMVUKKxvwuNK1m0v_td126Rgct32uk_" />

The design report identifies the public realm as a central driver of the proposal.

"Collingwood has limited access to high-quality parks and public open space, and the proposal delivers valuable new areas for respite, social interaction and fine-grain retail activity."

The development would deliver a diverse mix of housing, including studio, one, two and three-bedroom apartments alongside townhouse-style residences. Two basement levels are proposed beneath the development, providing resident and retail parking as well as extensive bicycle facilities.

Wardle's design draws heavily on Collingwood's industrial character, using articulated building forms, brickwork and robust materials inspired by the suburb's warehouse and manufacturing heritage. The built form has been broken into a series of smaller volumes to better respond to the surrounding streetscape while extensive communal gardens, rooftop amenities and shared resident spaces are integrated throughout the project.

<img alt="First look: Stockland plans new mixed-use neighbourhood precinct for Collingwood gateway site" data-entity-type="file" data-entity-uuid="7b2135ed-65df-4253-ad53-f216f06bd467" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%20podium.png?VersionId=l1B6Hqn8zs772VxH6L1fDPg0KHshan9v" />

The planning documents describe the existing office building as offering little engagement with the public realm, with the redevelopment intended to create a more permeable and active neighbourhood destination.

"The proposed scheme presents a significant opportunity to deliver a vibrant retail plaza and a local neighbourhood hub serving both existing and future Collingwood residents."

The 79–81 Victoria Parade site occupies a strategic location about 1.5 kilometres east of Melbourne's CBD, at the threshold between Collingwood and East Melbourne. It is well served by tram services along Victoria Parade and sits within walking distance of St Vincent's Hospital, Fitzroy Gardens, the Fitzroy activity centre and a broad range of employment, retail and hospitality destinations.

Jonathan Chancellor

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