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GUEST OBSERVER
There were no surprises from the Reserve Bank of Australia which left the official cash rate on hold again at a record low of 1.75 percent. This was the consensus expectation and our own. 
For the most part, the Statement accompanying the RBA’s decision to leave interest rates on hold was little changed except in so far as indicating that most markets have continued to function effectively despite the Brexit vote and that its impact on global activity outside the UK may be hard to discern (what was all the fuss about!).  
Furthermore, the RBA continues to sound fairly relaxed about the renewed pick-up in dwelling prices in recent months, particularly given the large supply of apartments to hit the market in the next two years. This suggests that worries about excessive house price growth are probably not constraints on additional RBA monetary easing.
More importantly, changes to the closing paragraph in the RBA’s Statement have arguably softened its neutral bias and opened the door to another easing.  Specifically, the RBA’s newly inserted reference to “further information” over the period ahead that should allow it to refine its outlook and “make any adjustment to the stance of policy that may be appropriate” is likely a reference to the June quarter inflation data due later this month and possibly a broader reference to allowing time to be able to better assess the impact of Brexit and the Australian election and the risks to the Australian dollar, an appreciation in which the RBA continues to see as complicating the post mining boom adjustment in the economy. Since a rate hike is most unlikely, the “adjustment” that the RBA is referring to is presumably another possible interest rate cut.
We remain of the view that the RBA will cut rates again later this year. The risks to inflation are on the downside thanks to underlying deflationary pressures globally and record low wages growth domestically; the risks to global and Australian growth are still on the downside (with Brexit and the messy Australian election not helping); and the $A is still too high and at risk of further appreciation given the Fed’s endless delays in raising rates again. 
As such we are continuing to allow for two more 0.25 percent rate cuts this year, the first in August just after June quarter inflation data is released and when it next reviews its economic forecasts.
 <a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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jchancellor-FAypfDUnLy

RBA on hold as expected, awaiting "further information": Shane Oliver

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The Building Legislation Amendment (Consumer Protection) Act 2016(the Act) which was passed by the Victorian Government on 19 April 2016 imposes sweeping reforms in respect to a number of significant areas affecting residential construction in Victoria.
By reason of a Proclamation published in the Victoria Government Gazette No. S 194 dated 21 June 2016, certain sections of the Act are to commence and ‘become live’ on 4 July this year.
While the purpose of the Act is to strengthen consumer protection and improve the regulation of the residential building industry, it is quite clear that the Act and its operation will dramatically affect the manner in which builders go about their business and how they are accountable and operate within the legislative system. It will also dramatically change the way in which home owners, whether on private stand-alone titles of land or within Owners Corporations, make claims for defective and incomplete work.
The most significant provisions of the Act intend to:
<ul>
<li>Improve conciliation of domestic building disputes;</li>
<li>Enable the issue of dispute resolution orders;</li>
<li>Improve information provisions for consumers;</li>
<li>Strengthen registration requirements;</li>
<li>Improve discipline of building practitioners;</li>
<li>Provide additional powers to Building Surveyors and the Victorian Building Authority (the VBA)</li>
<li>Direct builders to fix non-compliant building works;</li>
<li>Increase the regulation of owner-builders; and</li>
<li>Ensure greater oversight of building works.</li>
</ul>
The 4th of July 2016
The first tranche of changes are small in number but have a punch. The main changes which will commence on 4 July 2016 are as follows:
1. Investigations of owner-builders
Section 35 and 36 of the Act amend sections 227B and 227C(3) of the Building Act 1993 (“Building Act”) to close an apparent loophole where builders were purportedly using owner-builder provisions of the Building Act to avoid regulation and registration requirements.
The amendments to these section now enables a performance auditor appointed by the VBA to examine work carried out by an owner-builder including whether it has been carried out competently, whether it poses a risk of injury or damage and to ensure the work of an owner-builder complies with the Building Act and its regulations.
2. Building Surveyors and related persons
Section 39 of the Act amends section 79 of the Building Act to now restrict Building Surveyors from carrying out any functions in relation to which a “related person” has a conflict of interest. The introduction of a related person includes any partner in a partnership, any fellow directors or body corporates of which the Building Surveyor is a director and or any employer or employee. Building Surveyors will therefore need to be more aware of their surroundings.
3. New Directions to Fix Work
Section 49 of the Act substitutes sections 37 to 37K of the Building Act and introduces powers for the VBA and Building Surveyors, including Municipal and Relevant Building Surveyors and other authorised persons, for example a Plumbing Inspector, to issue directions to builders to “fix” building works.
A direction may be oral or written. If oral it can be given to the builder or the “person who is apparently in charge of the site”. A direction will require compliance within any prescribed timeframe and otherwise within 7 days.
A direction can be to carry out works, so that building works wholly or substantially comply with the Building Act, whatever substantially may mean, and or to stop works.
A builder can apply to extend the time for compliance and there is a right of appeal in respect to a direction to the Building Appeals Board. Non-compliance with a written direction is an offence with a maximum penalty in the vicinity of $75,500.
Section 51, which inserts a new section 118A into the Building Act, restricts a Building Surveyor from issuing a Building Notice, unless a direction to fix has been previously issued and it is clear that it will not be complied with, or it is not possible or appropriate to give a direction.
4. Further Regulations for Owners
Section 44 of the Act amends section 16 of the Building Act and imposes new offences against a person who carries out work without a Building Permit having been issued.
The amendments make it an offence for an “owner of land to permit building works to be carried out” without a Building Permit. The penalties are high; for a person – a maximum of 500 penalty units which equates to the approximate value of $75,500 and for a body corporate - a maximum of 2500 penalty units or approximately $377,000.
Penalties will not apply to an owner if they have engaged a building practitioner or an architect to carry out the work.
Section 45 of the Act also amends section 24A of the Building Actincreasing the value of works from $12,000 to $16,000 in respect to the consideration to be made by a Building Surveyor for issuing a permit for owner- builder works.
5. A new Checklist
Section 47 inserts a new section 30A and 30B into the Building Actand will require Building Surveyors to comply with and tick off a checklist of documents to be provided to the Council and also certify compliance such documents have been provided to Council. The details of the checklist are not yet known, but a failure to do so carries a financial penalty for Building Surveyors.
6. Undertakings
Section 54 inserts a new Division 2A into the Building Act and introduces the concept of builders providing a written undertaking to the VBA to do or not do something further or again.  A subsequent failure to comply with an undertaking will expose the builder to the VBA making an application for a court order to comply with the undertakings or pay money for a failure to comply. Any undertakings given will be maintained in a register and perhaps surprisingly, the register “may be inspected by any person at any reasonable time, without charge”.
Other reforms yet to come
Other significant legislative reforms set out in the Act which are expected to commence operation later this year, and at the latest by 1 July 2017, are more dramatic.
Domestic Building Dispute Resolution Victoria (DBDRV)
These include the establishment of the Domestic Building Dispute Resolution Victoria (DBDRV) and a new dispute resolution system. A party to a “domestic building work dispute” will need to make an application to DBDRV before any form of application can be made to the Victorian Civil and Administrative Tribunal (VCAT) or the Courts.
DBDRV once created, is intended to be the first stop for all “domestic building work disputes” which includes any dispute between an owner, a builder, a building practitioner, a subcontractor or an architect in relation to a “domestic building work matter”.
A domestic building work matter can include for example, a claim for a breach of a warranty set out in section 8 of the Domestic Building Contracts Act 1995, a failure to maintain the standard required of building works in a contract and or an alleged failure to pay money.
DBDRV will provide a conciliation service which may include the facilitation of without prejudice communications by a conciliation officer. Broad powers will come into force and penalties are available for non-participation.
The chief dispute resolution officer of DBDRV will also be given significant powers including to:
<ul>
<li>issue a stop works notice;</li>
<li>appoint an assessor to assess the domestic building work and to report on whether the work is defective and or incomplete;</li>
<li>issue a dispute resolution order requiring the builder to complete or rectify building work;  or</li>
<li>order an owner or builder to pay money.</li>
</ul>
Conciliation will be mandatory for parties before an application to VCAT or the Courts can be made.
Regulation of building work and building practitioners
The Building Practitioners Board will be abolished and its regulation and disciplinary functions will be transferred to the VBA which will become responsible for the regulation, registration and discipline of building practitioners.
Registration of building practitioners
The registration system for Builders will be ramped up and the previous test of “good character” will be replaced with a “fit and proper person” test. Registration will also be limited to a period up to 5 years, at which time a building practitioner will be required to make an application for renewal.
New disciplinary processes and sanctions A streamlined disciplinary process will be introduced. If the VBA reasonably believes there are grounds for taking action against a practitioner and proposes to take action, the VBA will issue a ‘show cause’ notice which will invite the practitioner to respond and explain why the disciplinary action should not be taken. The VBA will also be given increased flexibility to impose sanctions including the power to suspend or partially suspend registrations. Practitioners’ rights are said to be safeguarded via a right of review to the VBA, followed by VCAT. The engagement of Building Surveyors
The current system will change and will include a prohibition against a builder appointing a private Building Surveyor on behalf of an owner in relation to domestic building work. The owner will be required to do so instead.
Conclusion
Whether the intended changes will assist builders and owners avoiding disputes and reaching resolutions in building disputes in a more timely and costs effective manner is yet to be seen. What appears clear, however, is the proposed changes will introduce more cogs into ‘the system’, and most likely bring with it more litigation, not less.
Andrew Whitelaw, is partner and Melanie Hogg is solicitor Tress Cox Lawyers. They can be contacted <a href="https://www.tresscox.com.au/" target="_blank">here</a>.
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Property 101: Changes to Victorian residential building legislation

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Longreach sits amid Investar's 10 most distressed localities. It is among the four Queensland locailities in the list. Investar put the distress rate at 48 percent in Longreach.
Thornton from NSW topped the lis, with Hinchinbrook the only other NSW entry.
The list was produced using live on the market rental and sales listing data including distressed sale condition keyword analysis.
It identified listings with one or more keywords that would indicate an increased level of seller motivation and calculated this as a percentage of total listings on the market.
This data is designed to identify suburbs with the highest percentage of potentially distressed price stock based on the descriptions used by agents and vendors.
Current examples at Longreach include <a href="https://www.realestate.com.au/property-house-qld-longreach-120314653" target="_blank">177 Kingfisher Street</a> which is advertised as having a "drastically reduced $299,000" sale price. Its initial asking price was $350,000. It was bought for $355,000 in 2012.
 
Suburb State Postcode Dwelling Type Bedrooms % of Listings Days on Market Median Price Median Price Growth 1 yr Median Rent Rental Yield Median Rent Growth 1 yr
1 THORNTON NSW 2322 House 3 76.29% 63 $373,500 9.05% $350 4.87% 2.94%
2 NOLLAMARA WA 6061 Unit 3 60.47% 112 $410,000 -8.69% $380 4.81% -9.53%
3 KILMORE VIC 3764 House 4 56.32% 131 $340,000 5.10% $340 5.20% 3.03%
4 BRACKEN RIDGE QLD 4017 Townhouse 3 50.00% 126 $325,000 0.00% $375 6.00% 2.73%
5 SCARNESS QLD 4655 House 4 50.00% 298 $327,000 -2.39% $330 5.24% -1.50%
6 LONGREACH QLD 4730 House 3 48.72% 563 $255,000 -3.78% $250 5.09% -9.10%
7 COOKTOWN QLD 4895 House 2 48.00% 338 $320,000 0.00% $275 4.46% 1.85%
8 MOUNT TARCOOLA WA 6530 House 3 47.37% 178 $299,000 -12.71% $300 5.21% -11.77%
9 HINCHINBROOK NSW 2168 House 3 43.75% 71 $600,000 3.53% $460 3.98% 2.22%
10 EAST BUNBURY WA 6230 Unit 3 43.48% 124 $299,500 -11.92% $330 5.72% 3.12% 
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Longreach sits amid Investar's 10 most distressed localities

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No-one predicted Sydney's residential price growth would be as strong as it is has been to the halfway point of the year. 
Sydney prices are up around 9 percent so far this year which puts median house prices at around $890,000 and apartments at around $680,000.
All the 2016 forecasts of the Sydney property market had the brakes going on after three years of strong double digit annual growth.
Even the Reserve Bank of Australia Governor Glenn Stevens didn't see it happening when he gave his predictions for the Sydney property market in his appearance before the House of Representatives Standing Committee on Economics in February. 
Glenn Stevens suggested home prices would “take a bit of a breather for a while” with the slowdown in Sydney prices “quite welcome.”
He'd previously noted the panicked buying that had been fuelling the boom in Sydney had eased following tougher lending rules imposed by the Australian Prudential Regulatory Authority. 
"I think what we've seen is that things have calmed down a bit."
The current growth cycle has been running for four years since early 2012. Sydney ranks as the capital city with the largest gains over the cycle with dwelling values some 57 percent higher.
Private treaty home are selling in quick time, in just 31 days according to CoreLogic. Auction clearance rates are sitting at above 70 percent. Values are up around 12 percent annually.
This latest price re-acceleration, after a periodic dip or two, has almost become the trend rate given the current low interest rate backdrop, albeit without the incessant boom headlines in the media.
Most of the prices being paid are solid, rather than panicked, but they are still too expensive for many.
We can't keep going at this pace, especially with our low inflation wage environment.
Buyers are taking on more debt than they could ever repay if interest rates rose significantly, the big dark cloud that doesn't appear to be closing in quite yet.
The latest forecast on house price growth suggests things might slacken off and soon.
Indeed price growth is set to halve over forthcoming months, according to the HSBC chief economist Paul Bloxham who said the house price growth was "somewhat surprising."
Bloxham points to three factors in his forecast.
He suggests the escalation of the taxation of foreign buyers to weigh on the market, along with ever tighter lending standards, and also an oversupply of apartments.
He forecasts national growth to slow from the national 9 percent in 2015 to around 4 percent to 5 percent later this year.
The 2017 house price growth will be even slower - between 0 percent and 5 percent, he tips.
Bloxham points to solid demand from foreign buyers as one of the main causes for the continued impressive growth in Sydney. 
Given the recent fall of the Australian dollar against the yuan, Australian housing was just as cheap now for a Chinese buyer as it was four years ago, he said.
But he expects recent increased stamp duty and land taxes for foreign buyers and changes to local bank lending practices as likely to weaken this demand over coming quarters.
Bloxham anticipates further tightening of lending standards for Australian borrowers should there be a strong pick-up in investor borrowing.
The mooted oversupply of apartments will be the third factor prompting house price growth to halve by year's end, though Bloxham concedes the oversupply won't happen for a while yet, if at all in Sydney.
This article was first published in the Saturday Daily Telegraph. 
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Low interest rates yes, but several factors working against continued Sydney surge

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The world still needs the central banks to bail us out of trouble but the impact of monetary policy is complicated in a world of zero or near-zero interest-rate policy (ZIRP) and negative interest-rate policy (NIRP).
Money presents us with three alternatives: we can spend it, save it or invest it. Most households and governments do the first; financial institutions take the third option; and virtually no one saves. Except Asia, obviously.
In 2008, spending and investment froze during the global financial crisis (GFC). This forced central banks and governments to ultimately adopt unorthodox and largely unprecedented strategies. Two tools were available to governments: fiscal stimulus and looser monetary policy. Most governments adopted a mix of both.
However, there are political and financial limits to fiscal policy, particularly as governments grew increasingly overextended during the GFC. Consequently, since 2008, monetary policy has largely displaced fiscal policy as means of generating economic stimulus. Except in Sydney, at the Reserve Bank of Australia (RBA).
<h2>ZIRP it. ZIRP it good</h2>
The Bank of Japan (BoJ) was the first to adopt ZIRP, as it sought to deal with the aftershocks of the Heisei recession of the early 1990s. This was referred to as Japan’s “lost decade”, as it experienced stagnant growth, a condition still bedevilling the country today, despite the best efforts of Abenomics.
As the global financial crisis emerged throughout 2007–08, the US Federal Reserve, the European Central Bank (ECB) and the Bank of England sank hundreds of billions of their respective currencies into their foundering financial sectors. The People’s Bank of China injected massive liquidity into Chinese markets.
In Australia, the RBA slashed interest rates, with deep successive cuts in 2008–09. Looser monetary policy was matched by the Rudd government’s significant fiscal expansion to prevent the collapse of consumer spending.
The reason behind this fiscal pump priming, combined with the dramatic monetary measures, was clear: in late 2008, credit markets froze. Admittedly, there is much debate about how long and to what extent this occurred. However, the fear of contagion was so palpable that the interbank lending market experienced systemic dysfunction and, at the very least, credit rationing took place.
The problem for central banks is that they have relatively few monetary tools available to them. The traditional lever to prevent overheating is to exert monetary discipline by raising interest rates, thus increasing the cost of credit.
Conversely, under the crisis conditions of the GFC, the central banks slashed interest rates to encourage consumption. However, the US Federal Reserve, the Bank of Japan, the Bank of England and the European Central Bank reached their lower limits faster than the RBA, which never adopted ZIRP.
But that may be about to change. The RBA’s cash rate is at a historic low of 1.75 percent, and the bank may cut further as the Australian economy plateaus, combined with the uncertainty wrought by Brexit.
<h2>The new normal</h2>
Make no mistake: ZIRP and even perhaps NIRP are the new normal. Just ask Janet Yellen. When the Federal Reserve chairman increased US interest rates by 0.25% in December 2015, the markets reacted savagely. It was the first Federal Reserve (Fed) rate rise since 2006. 
Fourteen months earlier, Yellen had tapered off the US’s third quantitative easing program (QE3), ending it on schedule in October 2014. Between 2008 and 2014, the Fed had purchased over US$4.5 trillion in government bonds and mortgage-backed securities in three rounds of QE, plus a fourth program, Operation Twist (2011–12).
The outcome was an avalanche of “free” money. Why “free”? Because, in the long run, the real cost of the capital for commercial banks was zero, or less than zero.
The Fed was effectively printing money (although it’s more complex than that). The effects were clear: the US central bank was reflating the American economy, and by extension the global economy, by injecting massive amounts of liquidity into the system in an attempt to ameliorate the worst effects of the 2008–09 financial crisis.
<h2>US Fed moves this year</h2>
No one on the markets was surprised by the central bank’s December 2015 rate rise. The clear objective was to return some semblance of normality to global interest rates.
The problem is it didn’t work. The tapering-off of QE in late 2014 meant that the last sugar hits of stimulus were wearing off in 2015.
The Yellen rate rise, plus the clear intention of the Fed to incrementally drive rates higher, spooked the markets. In May this year, undeterred by gloomy US jobs figures, Yellen indicated that she would seek to raise US interest rates “gradually” and “over time” as US growth continued to improve. Her concern was that adherence to ZIRP would ultimately bite in the form of inflation.
Not anymore. Brexit has seen to that. It was one of the factors behind the Fed committee’s decision to keep interest rates on hold in mid-June.
ZIRP – or something approximating it – is becoming the “new normal” because cheap money has become structural; the global financial system is now structured around the persistence of low-cost credit. NIRP is thus the logical continuum of this downward interest rate spiral.
<h2>Negative interest zates</h2>
Until recently, most macroeconomic textbooks argued that zero was rock bottom for interest rates. The GFC shifted the goalposts.
This is where NIRP enters the picture: negative interest rates. How do they work? Typically, commercial banks will park their money in their accounts with the central bank, or in private markets, such as the London Interbank Offered Rate (LIBOR). Thus, their money never sleeps and earns interest 24/7, even when bank doors are shut.
But NIRP is different. Negative rates mean depositors pay for the privilege of a bank to hold their money. Which means depositors are better off holding the cash than placing the funds on deposit. Japan has experienced the results of a NIRP first-hand.
There is a method in this madness: the G7 central banks want commercial banks to lend, not to accumulate piles of cash. Consequently, the policy effect of both ZIRP and NIRP is to stimulate business and consumer lending in order to drive real economic activity. With piles of cash looking for investment placements, the shadow banking system of financial intermediaries may also drive enterprise investment.
However, ZIRP and NIRP are blunt instruments; the perverse outcomes of the stimulus programs of the US Fed, the Bank of Japan and the European Central Bank were artificially inflated stockmarkets and various sector bubbles (such as real estate, classic cars).
The combination of ZIRP and QE may have also created a “liquidity trap”. This means that central banks’ QE injections caused only a sugar rush and did not inflate prices, as one would normally expect from a significant expansion of the monetary base.
Instead, many developed countries have experienced multiple recessions and a prolonged period of deflation. In April this year, the Australian economy experienced deflation for the first time since the GFC, which compelled the RBA to make its most recent 0.25 percent cut in May 2016.
Yellen knows the global economy cannot retain ZIRP indefinitely. But, ironically, all of the central banks are caught in their own liquidity trap: unable to relinquish ZIRP for fear of market catastrophe; unwilling to abandon QE entirely as “the new normal” demands fresh injections of virtually cost-free credit.
<h2>A lack of interest</h2>
The Australian economy has done quite well by having interest rates above the OECD average, particularly since the GFC. This has encouraged significant foreign investment flows into Australia as global investors seek somewhere – anywhere – to park their cash as other safe-haven government bonds, such as the US, Japan and Germany, are in ZIRP or NIRP territory. It also doesn’t hurt that Australia’s major banks and government bonds are blue-chip-rated. And Australian sovereign bonds have excellent yields too.
If ZIRP is the new normal, that matters to the Reserve Bank of Australia. It also matters to all Australian home buyers, businesses, banks, pensioners, investors, students and credit card holders. Everyone, in other words.
ZIRP has created hordes of winners: mortgage interest rates are at historic lows. Property buyers who borrowed when rates were relatively high (at, say, 6-7 percent) are now paying less than 4%. Credit card rates are still astronomically high (20–21 percent or more), but balance transfer rates are zero. New credit issues in terms of consumer debt represented by unsecured loans (which is what a credit card is) have a real capital cost of zero. This is virtually unprecedented.
But ZIRP or near-ZIRP produces many losers as well. There is no incentive to save because rates are so low. Hoarding cash makes no sense.
Global surplus capacity reinforces deflation as both goods and commoditised services are cheap. Wages are terminal. Pension funds’ margins are smaller, thus expanding future liabilities and reducing the value of current superannuation yields.
In a world of ZIRP, is it any wonder that all of this cheap or (effectively) free cash has been stuffed into the global stock exchange and real estate markets, creating not only a double bubble, but double trouble?
<h2>The best things in life are free</h2>
QE is like heroin: the first hit is always free. The commercial banks got their first hit in 2008 and the prospect of going cold turkey sends them into paroxysms of fear.
The problem is that the dealers – the central banks – have started using their own product and are just as hopelessly addicted to both ZIRP and QE. To rudely cut off supply would destroy their own markets.
The RBA is not immune to the elixir of ZIRP. No central bank wants to assume responsibility for a recessionary economy; the RBA took enough heat for its monetary policy mismanagement of 1989-90, which induced the 1990s recession.
Unlike the Fed, the RBA is not about to fire up the printing presses and engage in rounds of QE, if it runs out of tools and is compelled to adopt ZIRP. The RBA is too conservative to engage in such policy in any case.
But this conservatism has a direct impact upon federal government fiscal policy, irrespective of whether the LNP or the ALP is in power. From Rudd to Turnbull, Treasury has been forced to increase its borrowing time and time again, blowing out the forward fiscal projections year after year.
No government has delivered a surplus because it is no longer possible. The RBA is partly responsible for this because, rather than expanding its balance sheet via QE, it has forced Canberra to accumulate government debt of more than $AU400 billion, which the overburdened Australian taxpayer will pay for.
Like most drug deals, this will not end well.
Remy Davison is Jean Monnet Chair in Politics and Economics, Monash University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/remy-davison-2838" target="_blank">here</a>.
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In a world of low rates, what else can the RBA and central banks do?

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The former advertising chief and healthcare marketing executive David McLean and his wife Rachel have downsized to Neutral Bay.
They were the $6.8 million buyers of a <a href="https://www.raywhite.com/nsw/neutral-bay/928581/?lang=en" target="_blank">Neutral Bay penthouse</a> in the waterfront Craignathan complex.
They bettered the building record of $5,085,000 set in 2014 when the apartment was bought by Cynthia Chakoush, chief of Blue Collar Recruitment.
It sold off-market through Ray White Lower North Shore’s Dino Gatti.
The McLeans sold their Mosman residence for $9.2 million to US businessman David Bondi and his expat wife, Rachel earlier this year.
The median price of a home in Neutral Bay is $2,448,888 according to CoreLogic.
The original 1830's Craignathan manor was later replaced by an exclusive boutique block of six executive apartments. The site on Hayes Street was home to Benjamin Boyd.
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Craignathan, Neutral Bay sale

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The United Kingdom's vote for Brexit may boost demand for Australian houses, Macquarie economic analyst James McIntyre suggests.
The vote for Brexit may prompting more expatriates to return home and deterring locals from heading abroad
Mr McIntyre's note to clients last week, obtained by Fairfax Media, also said there is now the "potential for a less negative house price outlook" for Australia.
It said the prospect of stronger population growth as a result of Brexit, alongside further interest rate cuts, "could boost housing demand, and confound some of the more aggressive expectations for negative housing spillovers".
"A weaker growth outlook for the UK, and Europe, could see a return of Australian expats, and a decline in the number of Australians seeking better opportunities offshore," the note said.
The plunge in pound sterling, which is about 10 percent below its pre-Brexit exchange rate with the Australian dollar, also makes working in the UK less attractive to expats who envisage bringing the money home with them.
His more optimistic price growth revision followed the prediction of a 7.5 percent decline in house prices from March this year, citing weaker population growth and a "bulging" pipeline of new homes being supplied.
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Macquarie sees Brexit assisting Australian property outlook

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GUEST OBSERVER
The unexpected outcome of the Brexit vote injected a good dose of uncertainty and volatility into financial markets, especially in Europe and the UK.
A flight to safety saw the US dollar appreciate relative to other currencies and, while currencies and stock markets have settled down, the Brexit vote will likely echo for a long time to come, durably changing the European political landscape.
Domestically, the federal election has turned out much closer than many expected and it could be some time before the result is finalised. Without new economic data to go by, it is the political uncertainty that dominates the outlook.
Relative to last month, the CAMA RBA Shadow Board’s policy preferences have become noticeably more dovish, reversing the more contractionary stance from the previous month. The Shadow Board attaches a 63 percent probability to a rate hold being the appropriate policy setting. The confidence attached to a required rate cut equals 18 percent, while the confidence in a required rate hike equals 19 percent.
Australia’s unemployment rate and participation rate remain unchanged at 5.7 percent and 64.8 percent. No new data on wage growth has been released since last month.
The turmoil in the financial markets following Brexit has left the Aussie dollar stronger relative to the US dollar; it is trading around 75 US¢. Yields on Australian 10-year government bonds have continued to fall to historic lows, below 2 percent.
Domestic share prices, though slightly more volatile, are largely moving sideways, with the S&amp;P/ASX200 last week closing just under 5300, not far below the recent high of 5430. Global stocks, particularly in European and British markets have lost between 5 percent and 10 percent of their value, following the Brexit vote.
In the wake of the Brexit vote, the global economic outlook is currently dominated by politics, with elections looming in a number of countries and uncertainty in Europe and elsewhere working its way through the global economy. The direct effect of the Brexit outcome on the Australian economy should be minimal but through global capital markets and international trade this far-away event may eventually be felt after all.
Consumer and producer confidence have barely shifted since last month. Capacity utilisation has risen to above 82 percent, while construction output has declined slightly. Retail sales have been growing by a little over 3 percent year-on-year.
The Shadow Board’s confidence measures have reversed somewhat since last month. It attaches a 63 percent probability (52 percent last month) that “no change” is the appropriate policy, an 18 percent probability (11 percent last month) that a rate cut is appropriate and a 19 percent probability (37 percent in the previous month) that a rate rise, to 2.00 percent or higher, is appropriate.
The probabilities at longer horizons are as follows: 6 months out, the estimated probability that the cash rate should remain at 1.75 percent equals 23 percent (24 percent in June). The estimated need for an interest rate decrease has risen from 16 percent to 29 percent, while the need for a rate increase has fallen 12 percentage points to 48 percent.
A year out, the Shadow Board members’ confidence that the cash rate should be held steady equals 18 percent (14 percent in June), while the confidence in a required cash rate decrease equals 26 percent (16 percent in May) and in a required cash rate increase 56 percent (70 percent in June).
 
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Rates should stay on hold under election, Brexit uncertainty: RBA Shadow Board

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The Singapore-listed developer Chiwayland has bought into Sydney's western suburbs to develop an 11-hectare development site in Caddens, Penrith for $40 million. 
It is planning 400 apartments and 364 townhouses for the site close to a proposed high-speed rail linking to the second Sydney Airport.
Chiwayland's project will be released over several stages before 2020. 
It is the group's seventh property development project in Australia. 
Chiwayland follows Chinese heavyweight Poly (Australia) Real Estate's purchase of a three-hectare site at Werrington, another greenfield land prospect under the Western Sydney Priority Growth Area strategy. 
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Chiwayland buys at Caddens

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Ray White Brunswick auctioneer Jamil Allouche noted the former Brunswick dairy price “blew everyone away.”
It sold recently for $440,000 over its reserve as nine buyers fought for the charming four-bedroom family home.
The bidding started at $1.2 million and flying past its $1.35 million reserve, the sale price of <a href="https://www.realestate.com.au/property-house-vic-brunswick-122769070" target="_blank">4 Bell St, Brunswick</a> fetched $1.79 million.
CoreLogic put the median house price at $856,000.
It last sold for $1.175 million in 2011.
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Brunswick former diary cottage sells at $1.79 million

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Joel Robinson

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Abadeen has lodged a State Significant Development Application (SSDA) for one of Mosman's largest apartment developments in recent years, seeking approval to transform the former Honeysuckle Garden and Midas site on Military Road into a 100-apartment mixed-use development.

The SSDA, lodged with investment partner Phoenix Property Investors, proposes around $230 million worth of new housing on the prominent <a href="https://www.apartments.com.au/new-apartments/494-516-military-road-mosman-nsw-2088">494-516 Military Road</a> site.

The proposal comes as Mosman Council continues to progress its recently endorsed Masterplan, which identifies the precinct for increased housing density while maintaining the suburb's established character.

Designed by DKO Architecture, the development would comprise 100 apartments above ground-floor retail, with a rooftop wellness precinct including a gym, sauna, entertaining areas and landscaped communal spaces.

Rather than pushing to the full 12-storey height identified in Council's Masterplan, the proposal ranges between five and nine storeys, stepping down towards Hale Road. A tenth level would accommodate resident amenities rather than additional apartments.

The project has been designed to appeal to a broad range of buyers, from first home buyers and young professionals through to families and local downsizers looking to remain on the Lower North Shore.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="5dada03f-5b4c-43ba-ba62-2868add31440" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.57.55%E2%80%AFAM.png?VersionId=7LBy0B.Jo8_iWAFJsClcV7Q3UnXrv49r" />

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock.

"The apartments have been designed as genuine long-term homes, with efficient floorplans that maximise usable living areas, generous storage, natural light and strong connections between indoor and outdoor spaces," Brown says."

"We've focused on creating homes for a broad range of buyers, from first home buyers and growing families through to downsizers who want to remain in Mosman."

The rooftop wellness offering forms a key part of the proposal, with residents set to have access to a gym, sauna, outdoor entertaining spaces, communal dining areas, landscaped gardens and a multi-use recreation court overlooking Sydney Harbour.

<img alt="Mosman" data-entity-type="file" data-entity-uuid="d37c2d6b-583a-4a0f-b7a9-9f46b893d2f4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-27%20at%209.58.06%E2%80%AFAM.png?VersionId=FPoa5FCm2RtzjhAh2w5FTWJbV6GHfY8D" />

DKO drew heavily on the site's natural and cultural history, undertaking a Connecting with Country process with local Aboriginal Elders to inform the architectural and landscape design.

Senior Associate Matthew Ritchard said the design sought to create a building that responded to both the site's landscape and its cultural significance.

"The architectural language of the project is a deep expression of Connecting with Country, where the materiality and colour palette serve as a bridge between the site's geological history and its future as a residential sanctuary."

The proposal also retains the site's established blue gum tree as the centrepiece of the communal landscaped gardens, while introducing activated retail fronting Military Road to strengthen the connection between Mosman and Cremorne villages.

If approved, the project would deliver 100 new homes within walking distance of shops, public transport, schools and local amenities, adding to the limited pipeline of new apartments on the Lower North Shore.

<h2>Project Snapshot</h2>

Project: Honeysuckle Garden Redevelopment

Address: 494-516 Military Road, Mosman

Developer: Abadeen and Phoenix Property Investors

Architect: DKO Architecture

Lead Architect: Matthew Ritchard

Value: $230 million

Residences: 100 apartments

Key features:

<ul>
	<li>
	Ground-floor retail
	</li>
	<li>
	Rooftop wellness precinct
	</li>
	<li>
	Gym and sauna
	</li>
	<li>
	Outdoor entertaining and BBQ areas
	</li>
	<li>
	Landscaped communal gardens
	</li>
	<li>
	Multi-use recreation court
	</li>
	<li>
	Retained mature blue gum tree
	</li>
	<li>
	Connecting with Country design process
	</li>
	<li>
	Harbour, CBD and Balmoral views from upper-level apartments
	</li>
</ul>

Abadeen Executive Chairman Justin Brown said the apartments had been designed as genuine long-term homes rather than investor-focused stock

First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman

The wave of apartment proposals sweeping through Mosman shows no signs of slowing, with another major residential development lodged through the NSW Government's State Significant Development pathway.

Developer First Quadrant Properties, which recently completed Willoughby Grounds and has several projects in planning across the North Shore, has unveiled plans for <a href="https://www.apartments.com.au/new-apartments/cove-on-ourimbah-40-56-ourimbah-road-mosman-nsw-2088">Cove on Ourimbah</a>, a 63-apartment development on Ourimbah Road, adding to the growing pipeline of projects reshaping one of Sydney's most tightly held harbour suburbs.

The proposal would consolidate nine properties at 40-56 Ourimbah Road into a part eight, part nine-storey apartment building, continuing the momentum created by the NSW Government's accelerated planning pathways that have seen several significant developments emerge across Mosman over the past 12 months.

Designed by Doroch Architects, the project would deliver 63 apartments, resident wellness facilities including a gym, pool and sauna, landscaped communal spaces and basement parking, while using recessed upper levels, generous setbacks and extensive planting to reduce the perceived scale of the building.

<img alt="First look: First Quadrant Properties eyes nine-storey Mosman apartment project under State Significant pathway" data-entity-type="file" data-entity-uuid="32ee68e4-141e-4a10-8f83-48e961a5e71e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ourimbah%20Road%2C%20Mosman%20a.png?VersionId=CUeILFc6APlwXPc.iplElbxHvREKwjig" />

Doroch Architects said the building had been designed to reinforce Mosman's established character.

"The building's aesthetic is grounded in the existing residential character of Ourimbah Road and the broader Mosman context," the architect noted in the planning documents submitted to the NSW Government.

The design adopts a contemporary material palette of natural stone, textured concrete and brown concave metal cladding, complemented by integrated planters and deep balconies. The podium incorporates softened curved concrete forms, while increased setbacks have been provided adjacent to the heritage-listed property at 60 Ourimbah Road to create a more sympathetic transition.

The site sits around 330 metres from Mosman Town Centre, placing it within the NSW Government's Low and Mid-Rise Housing policy area, where increased residential density is being encouraged close to shops, transport and services.

The proposal follows a string of major apartment projects lodged or declared State Significant in Mosman in recent months, including Abadeen's 100-apartment Honeysuckle Garden redevelopment on Military Road and several other developments across Awaba Street, Redan Street and Muston Street from the likes of Time &amp; Place, HELM and Prosker Property.

&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Time &amp; Place to take on Mosman apartment market</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-abadeen-plans-100-apartments-on-former-honeysuckle-garden-site-in-mosman">First look: Abadeen plans 100 apartments on former Honeysuckle Garden site in Mosman</a>

&nbsp;

Jonathan Chancellor

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