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Sydney's auction clearance rate stayed below 70 percent yesterday, but the battered McGrath Estate Agency bucked the weekend trend.
There was an overall 69 percent sales rate, though McGrath, whose shares were suspended from trading on Friday, secured a 75 percent success rate. 
Sales across Sydney ranged from $340,000 for a one bedroom Surry Hills unit to a pre-auction $5.775 million five bedroom Woollahra house.
CoreLogic RP Data had 330 scheduled auctions given reduced school holiday activity.
The McGrath agency secured secured sales ranging between $395,000 at Tumbi Umbi to $3.57 million at Coogee, a contemporary five bedroom home which had been tipped to fetch $3.5 million.
The real estate company asked to go into a trading halt until Tuesday as its reviews its earnings forecast from when it was listed on the ASX share market last December.
Floated at $2.10 a share, it last traded at $1.30 a share. 
McGrath, founded in Paddington by John McGrath in 1988, has a network of more than 70 offices.
The suspension came before the Reserve Bank released its half-yearly snapshot of the financial system which warned the growth in big city apartment developments was a key risk to Australia's financial system.
Sydney's declining established home sales activity and the declining auction clearance rate have not helped the McGrath share price.
Sydney's clearance rate last April was well above 80 percent.
CoreLogic figures have put the Sydney clearance rate at below 70 percent for the past five weeks after a strong February start.
Strathfield was Sydney's busiest auction suburb yesterday with the preliminary results showing four of the five offerings finding buyers, with two sales through McGrath.
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jchancellor-FAypfDUnLy

McGrath secures auction success

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The RBA says over the past six months, domestic financial risks have shifted from housing lending towards lending for residential development and some other commercial property markets, and there are ongoing concerns associated with the challenges in the resource-related sector.
It suggested a glut of inner city apartments and an influx of Chinese money into the property market was shifting the risks in the banking system.
In its most extensive warning yet of the indirect risks facing the Australian property market, the Reserve Bank's Financial Stability Review warned that the supply of new apartments in major metropolitan cities could "weigh on prices and rents," which could reduce the income of property investors and make it harder for them to sell.
"With the demand for apartments softening in some areas … and households facing tighter access to credit, settlement failures might increase," the RBA advised.
It noted the actions of the regulators since late 2014 have helped induce a tightening of authorised deposit-taking institutions’ (ADIs) housing lending standards, and housing market conditions have moderated since the previous RBA Review.
"In particular, the share of high loan-to-valuation lending has taken a noticeable step down and tighter serviceability metrics have reduced maximum loan sizes.
"ADIs have also increased advertised interest rates for investor loans relative to owner-occupier loans, while providing larger discounts for some owner-occupier lending.
"These developments have contributed to a moderation in the pace of investor credit growth, though the effect on growth of overall housing credit has been largely offset by a pick-up in owner-occupier lending.
"While the household debt-to-income ratio has increased a little further, mortgage buffers in offset and redraw facilities are rising strongly, which helps to mitigate any associated risks.
"While these developments have generally enhanced resilience in the household sector, the tighter access to credit for households could pose near-term challenges in some medium- and high-density construction markets given the large volume of building activity that was started several years ago.
"These apartments are popular with investors and foreign buyers and any concerns over settlement risk and/or a slowdown in demand for Australian-located property by Chinese and other Asian residents could lead to difficulties for particular projects, though there is little evidence of either occurring so far. Risks seem greatest in the inner-city areas of Melbourne and Brisbane, where new supply is most geographically concentrated, and increasingly in Perth."
The RBA noted some other commercial property markets were also adjusting with a lag to a slowing in demand.
"This is most noticeable for office buildings in the resource intensive states, where vacancy rates remain very high as further supply continues to come on line.
"More broadly, commercial property yields have compressed across a range of market segments and there are some questions over their sustainability at these levels once global interest rates normalise."
In the rest of the business sector, the balance sheets of resource-related companies have come under strain following the large falls in global commodity prices over recent years and interest payments are taking an increasing share of earnings for the smaller producers and mining-related services firms.
The RBA noted none of the "domestic risks appears to be enough on their own to seriously degrade the near-term functioning of the domestic financial system, though they could exacerbate a major shock from elsewhere, such as a global economic downturn."
"In any case, Australian-based banks have taken further steps to increase their resilience to potential risks.
"As noted, ADIs have tightened their housing lending standards to align them with the prudential regulator’s expectations.
"While lending to the commercial property sector by the Australian major and Asian banks has continued to rise, many ADIs have tightened lending standards in this area and have reportedly become quite cautious in lending to certain parts of the sector."
The RBA noted banks’ non-performing loans remain low overall: while they have picked up for resource-related lending, banks’ exposures to this sector and to mining services firms are small.
"That said, some foreign banks operating in Australia have much higher shares of their total lending to this sector.
"Bank profitability has also remained high and capital levels have increased substantially in the past year.
"Nonetheless, with banks now competing intensely for lending in a narrower range of markets, it will be important that their serviceability and other lending standards remain appropriate."
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RBA notes concerns about inner city apartment glut

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Sydney recorded a preliminary clearance rate of 69 percent at weekend auctions compared to 67 percent in the prior week.
The weekend’s top performing Sydney sub-region was the Eastern Suburbs with a clearance rate of 87 percent, followed by Sutherland on 84 percent and North Sydney and Hornsby at 80 percent. 
Sales across Sydney ranged from $340,000 for a one bedroom Surry Hills unit to a pre-auction $5.775 million sale of a five bedroom Woollahra house.
CoreLogic RP Data had advised there were 330 scheduled Saturday auctions given reduced school holiday activity. 
Sydney's clearance rate in April last year was well above 80 percent. 
CoreLogic figures have now put the Sydney clearance rate at below 70 percent for the past five weeks after a strong February start. 
Strathfield was Sydney's busiest auction suburb yesterday with the preliminary results showing four of the five offerings finding buyers.
Some 880 Melbourne residential homes were taken to weekend auction with a preliminary clearance rate of 71 per cent, falling from 73 per cent last week and lower than one year ago when it was 79 per cent. 
The busiest auction activity was held in the inner region where 170 homes went to auction and 73 per cent of reported auctions were successful.  
Melbourne's results ranged between a $260,000 Ormond one bedroom flat and $4,375,000 for a <a href="https://www.realestate.com.au/property-house-vic-brighton-122191682" target="_blank">1960s Brighton home</a> (above) on an 830 sqm Middle Crescent block, that reportedly fetched $900,000 over reserve.
The cheapest house was $267,000 at Drysdale, on the outskirts of Geelong.
The REIV noted the Melbourne outer suburbs have seen a significant increase - about 25 percent - in the number of properties sold at auction this year. 
Reservoir had the highest number of auctions listed with 17, followed by Glen Waverley with 13. Of the 15 reported results, only two of the Reservoir offerings did not sell. Some four did not sell at Glen Waverley's 13 results. 
The preliminary clearance rate across Brisbane was 53 percent, up from 47 per cent and also higher than the 46 percent last year.
Some 145 Brisbane auctions were held, but with the two upcoming public holidays, it is expected that Brisbane’s auction market will be relatively quiet over the next two weeks. 
Adelaide saw 99 auctions with a clearance rate of 66 percent.
Preliminary results for Canberra show the clearance rate for this week sitting at 71 percent, sharing the lead as best selling mainland capital with Melbourne.
The nation's cheapest weekend sale was $67,500 for a one bedroom 40 sqm Eagleby villa on the Gold Coast. It last sold at $85,000 in 2010. 
This week saw 1,667 capital city auctions held.
Preliminary results show that 68 per cent of the national auctions were successful, marking the third consecutive week of auction clearance rates below the 70 per cent mark. 
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Melbourne still strong, but Sydney's auction success rate settles sub-70 percent 

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Entrepreneur Mark Carnegie is looking at buying Ardent Leisure's marinas business as auctioneer McVay Real Estate works on the information memorandum's release.
The Australian Financial Review's Street Talk column revealed Carnegie's firm M.H. Carnegie &amp; Co is preparing its own search for an equity partner willing to team up on a bid.  
"We would be very interested in speaking to an international party working on this as we believe we are strategically well placed," Carnegie told Street Talk. 
M.H Carnegie already owns Breakwater Marina in North Queensland.
Ardent's marina come with a $115 million book value unit. 
Ardent's d'Albora Marinas business is the largest marina group in Australia with seven sites including three on Sydney harbour. 
Private equity giant The Carlyle Group is one of the parties circling the theme park, marina, bowling centre and gym owner, Ardent Leisure. 
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Mark Carnegie seeks Ardent's marinas 

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GUEST OBSERVER
Australia is the great innovator in the world of property ownership.
It was a South Australian, Robert Torrens, who introduced the modern Torrens Title system in his home state in 1857, a system now used across much of the world today. Torrens Title is an elegantly simple concept: all properties are recorded in a land register maintained by the government, and changes in ownership are recorded in the register.
It replaced the antiquated system of a physical and often ancient document known as the ‘title deeds’ being updated each time a transaction occurred – thereby creating a ‘chain of title’ –  and being passed from owner to owner. In the cumbersome pre-Torrens system, the whole ‘chain of title’ needed to be checked every time there was a transfer to a new owner.
Australia also developed strata title law first, in the 1960s. New South Wales was the leader on this occasion.  Strata title legislation underpins the sub-division of most apartment blocks in Australia, allowing individuals to own the portion of the block they reside in whilst having a shared ownership of and responsibility for common areas such as external structures, stairways, hallways and the land the building resides on.
These two legislative developments – around a hundred year apart – epitomises the Australian egalitarian spirit of ‘a fair go.’  By simplifying title rules, they made it easier for Australians to own, trade and subdivide property, which enabled more of us to become landowners.
In a testament to the confidence in which the modern titles system is held, banks routinely lend individuals 90%, 95% and sometimes 100% of a property’s value, effectively based on an ownership entry on a database in the state or territory’s land registry IT system.
But the 1960s isn’t actually that long ago and blocks of apartments began to appear on the landscape from the 1920s and 1930s. So you won’t be surprised that there are some older apartment blocks with title documents that pre-date the strata title system.
When owners of early apartment blocks considered how they could sub-divide and sell individual units, they turned to corporation law for a solution. A company was established which became the registered owner of the property. Unit owners were then sold shares in the ‘company’ which gave them exclusive access to their dwelling and shared use of common areas.
‘Company Share’ apartments are typically older architectural style and they tend to be found in the older suburbs in our older cities – Sydney, Hobart, Melbourne and Adelaide.
There are other forms of apartment titles as well. For instance, In Victoria, in the early 1960s Stratum Title was a forerunner to the strata title regime. It still involved a company share arrangement for common property, but owners also received a title to their unit. And in South Australia, a Moiety or Cross Lease system gave each unit holder a share in the land the apartment block sat on plus a lease to exclusive use of their property.
Beware that these older forms of titles are not just a historical footnote. Banks tend to have tighter lending restrictions – lending as little as 50% of the loan-to-value ratio currently – on non-strata titled apartments, and too often, won’t lend at all.  In the case of company share, banks are concerned that the collateral for their loan isn’t the title of a property but a share in a company. In the case of stratum title in Victoria, although the banks do have a title they can claim on, the stratum title legislation gives the stratum scheme’s service company (akin to the body corporate) first claim on a defaulting borrower’s mortgage to pay outstanding service company fees. Naturally, banks aren’t comfortable about potentially being second in line if there is a default.
Consequently, non-strata title apartment can trade at a discount to comparable strata title properties.  So make sure you always engage a good lawyer when buying apartments to check the title documents.
 
When is a pre-purchase building inspection a must?  What do they entail?  How does one interpret the results?  What defects can be fixed and which ones should prompt you to walk away. Jarrod McCabe, associate director, Wakelin Property Advisory and Peter Alexander, building inspector, Safehome Building Inspections present a webinar for Victorian home buyers on April 20. <a href="https://wakelin.com.au/inspection" target="_blank">Click here to register</a>.
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Property 101: Understanding property title with Wakelin Property Advisory

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Is a royal commission into banking required? I think not. There have been many problematic incidents adversely affecting customers in the banking and financial sector in Australia – although whether they are more frequent and more substantive than elsewhere is open to question.
Moreover, examining those incidents, determining whether there are systemic causes, and identifying possible solutions can be done in simpler and potentially more effective ways. Indeed, even to the extent that the objective is to pinpoint responsibility for past wrongdoings, it is not clear that a royal commission has advantages over investigations by well-resourced and empowered financial regulators.
Royal commissions are likely to work best when there is one specific major issue to be addressed or where there is some substantive matter of policy formulation on which a primarily legal, inquisitorial, analysis can shed light. The current and recent concerns involve a wide range of different types of problems resulting in financial consumer detriment.
They involve actions of individuals within various types of financial organisations as well as how the objectives, culture, ethics and governance of the organisations themselves encourage, induce or incentivise particular types of behaviour.
These are not topics that are best addressed from a primarily legal perspective, or analysis of which requires the trappings and powers, and costs, of a royal commission. Rather, there is a need for analysis of what gives rise to these perceived problems and what policy (legislative or regulatory) changes might be made to reduce such problems.
And ultimately, some form of (at least implicit) cost-benefit analysis is warranted since the bad behaviour of concern is a byproduct of institutional arrangements and structures for providing financial services and products to meet the needs of consumers. Designing policy to balance efficiency and fairness in provision with mitigation of adverse effects is not a simple task.
Identifying problems and designing policy solutions can be done either via existing financial regulators with their existing (or enhanced) powers or through some other form of less costly and disruptive method of inquiry.
The recent David Murray-led Australian Financial System Inquiry (of which I was a member) examined the financial sector from a very broad perspective. Its terms of reference included reference to corporate governance and implications for outcomes for consumers of financial products and services consumers. But this was only one item on a long list of issues required to be investigated within a very short time frame.
The Murray Inquiry made a number of recommendations related to improving outcomes for consumers of financial products. One could argue that it would make sense to see whether the recommendations of the Murray Inquiry (once fully implemented), together with ongoing changes in global financial regulatory standards, improve the performance of the financial sector in this regard before undertaking another major review.
On the other hand it might be argued that the Murray Inquiry did not, reflecting the constraints of its terms of reference and short time frame, delve far enough into issues of ethics, culture, and governance. While these were front of mind in its deliberations, its approach was to design policy recommendations which would induce better outcomes.
These included addressing incentives created by conflicted remuneration arrangements, introducing manufacturer and distributor responsibilities for appropriate design and marketing of financial products and services, and improved resourcing and powers of financial regulators. That approach reflected a view that “good” ethics and culture cannot be created by regulation, that they are the responsibility of the leadership of financial institutions, but that policy settings can influence incentives to create and maintain good ethical standards and culture.
If it is believed that the problems are more deep seated, then perhaps further inquiry is warranted – but on topics which hardly warrant or need a royal commission. A number of issues come readily to mind. One is whether enforced structural separation of financial institutions would facilitate improved governance, risk-taking, staff-customer interrelationships, and remuneration and incentive structures.
Another is whether requiring directors of banks to put interests of depositors ahead of shareholders (much as occurs in insurance where policy holders interests are legally accorded priority). Yet another would be what increase in penalties for wrongdoing and increased resourcing for investigation by regulators would appropriately limit wrongdoing while not unduly harming efficient and innovative supply of financial services.
These types of issues require “research” more than “inquiry”. They are not the sorts of questions that a royal commission process is suited to answer. Calling for a royal commission looks to have been a smart political move. But like the Abbott Government’s Royal Commission into Trade Unions it would be tainted by political overtones associated with the inquisitorial nature of the process.
Far better to find an approach that will be seen to reflect the more explicit analytical approach necessary to answer the very complex questions involving the interplay between ethics, culture, incentives, governance and behaviour.
Kevin Davis is research director of Australian Centre for FInancial Studies and professor of Finance at Melbourne and Monash Universities, Australian Centre for Financial Studies and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/kevin-davis-3497" target="_blank">here</a>.
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Why Australia doesn't need a banking industry royal commission

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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 latest Australian housing finance statistics back-up what we already know: the national housing market is starting to cool.
Local housing economists have been pouring water on the notion of a “property bubble” recently, arguing instead that rather than a bubble pop, we are on track for a gradual easing.
And at the aggregate level this is what’s happening. Home loan commitments are continuing to grow. However, this growth is occurring at a rate that has been slowing since the middle of last year.
The seven charts below unpick the latest housing finance figures.
<h2>1. National growth in loans</h2>
<a href="/images/2016/04/18/image-20160415-11420-e5y16g.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11420-e5y16g.JPG" alt="">
<h4>Data source: ABS Housing Finance, Australia (5609.0), Released 11 April 2016.</h4>
According to data released this week by the ABS, the overall growth in loans for housing increased a modest 1.5% in February (seasonally adjusted terms). Despite a bounce after the slow January month, growth over the past 12 months sits below the last five years' average annual loan commitments. (It’s the same story if we look instead at the value of loans.)
Where the picture gets really interesting is in the change in commitments to loans for the purchase of new dwellings. The number of loans in this category fell over 15% from January into February. Where this was the fastest growing category of housing finance at the end of 2015, it is now the leading area of contraction.
All-in-all this points to a market that, following a recent upsurge in building, is nearing saturation.
<h2>2. Distribution of loans by state</h2>
<a href="/images/2016/04/18/image-20160415-11437-qbrwu7.JPG" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/04/18/image-20160415-11437-qbrwu7.JPG" alt=""></h4>
<h4>Source data:</h4>
The majority of housing finance is going to property purchases in NSW (30%) and Victoria (28%).
<h2>3. Lending and house prices - National</h2>
<a href="/images/2016/04/18/image-20160415-11426-xqj0gm.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11426-xqj0gm.JPG" alt="">
<h4>Data source: ABS Housing Finance, Australia (5609.0), Released 11 April 2016; ABS Residential Property Price Indexes (December 2015); CoreLogic Housing Market Update Figures (April 2016)</h4>
Growth in the value of Australian housing loans over time roughly tracks the Australian house price index.
The rapid increase in building, particularly high-density developments in urban growth centres in Sydney and Melbourne, in late-2015 saw loan value growth outpace broader property prices.
As property prices adjust to a new supply-driven equilibrium, easing loan volumes is expected.
<h2>4. Lending and house prices - State-by-state</h2>
<a href="/images/2016/04/18/image-20160415-11420-z4cl5.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11420-z4cl5.JPG" alt="">
<h4>Source data: ABS Housing Finance, Australia (5609.0), Released 11 April 2016; ABS Residential Property Price Indexes (December 2015); CoreLogic Housing Market Update Figures (April 2016)</h4>
Year-on-year growth in property prices and housing finance by state shows massive diversity. Where Sydney, Melbourne and Hobart (who knew!) have recorded near- and above double digit average property price growth, it is still a struggle for resource-heavy parts of the country.
Brisbane, Perth and Darwin are experiencing the flip-side of the two-speed economy which through the mining boom saw their housing markets pull ahead of Sydney and Melbourne.
<h2>5. Household wealth, income and debt servicing</h2>
<a href="/images/2016/04/18/image-20160415-11461-qtp2ii.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11461-qtp2ii.JPG" alt="">
<h4>Source data: RBA Household Finances (E2)</h4>
Overall, households are getting more wealth, relative to their income. This is coming from a combination of housing asset and financial asset capital gains.
It comes at a cost, however. Owner-occupier debt as a proportion of income is trending higher. Coupled with an increase in late 2015 of the proportion of income going to mortgage interest repayments, housing affordability issues may soon come into play.
<h2>6. First home owners are missing out</h2>
<h4><a href="/images/2016/04/18/image-20160415-11469-1r1oaly.JPG" target="_blank">Click to enlarge</a></h4>
<img src="/images/2016/04/18/image-20160415-11469-1r1oaly.JPG" alt="">
<h4>Source data: ABS Housing Finance, Australia (5609.0), Released 11 April 2016</h4>
As a proportion of all housing loans, the value of loans going to first-home buyers make up around 15% of the national market, and NSW is the worst place for first-home buyers.
The latest ABS figures show that first-home buyers are making up a smaller and smaller part of the loan market. The proportion of loans to first-home buyers decreased in every state except Tasmania in the beginning of 2016.
First-home owners in NSW make up only 12% of the value of housing finance commitments, the lowest of any state and representing a significant drop-off from a high of around 30% in 2009-10 (after which point the First Home Owners Grant was scaled back).
<h2>7. Big banks are also missing out…</h2>
<a href="/images/2016/04/18/image-20160415-11426-i5j6ep.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/18/image-20160415-11426-i5j6ep.JPG" alt="">
<h4>Source data: ABS Housing Finance, Australia (5609.0), Release</h4>
Comparing the performance of the banks against non-bank lenders in terms of owner-occupier loan issuance, the traditional banks are lagging.
Banks are feeling the burn doubly: while their grasp of the market is trimmed by a more competitive offering from alternative lenders, the average Australian loan size is also falling.
Smaller loans are partly a response to a national housing market cool-down. It could also be attributed to APRA’s review of lending practices aimed at mitigating risk of property overvaluation introduced in December 2014.
This means the banks have to work harder (and their stock prices appear to be factoring that in!)
Danika Wright is lecturer in Finance, University of Sydney and author for The Conversation. She can be contacted <a href="https://theconversation.com/profiles/danika-wright-121868" target="_blank">here</a>.
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Australia’s housing finance in seven charts: Danika Wright

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The former Prime Minister’s Ascot Vale residence is going under the hammer. 
The <a href="https://www.realestate.com.au/property-house-vic-ascot+vale-122285618" target="_blank">75 Maribyrnong Road</a> residence was built for Samuel Bruce, Australia’s eighth Prime Minister in 1887.
During the land boom, elevated land near the Ascot Vale and Moonee Ponds railway stations attracted prestigious villa residences such as this. 
This prestigious two-storey six bedroom, three-bathroom mansion retains many period details, such as wraparound lace verandas, ornate ceilings, a grand staircase, open-fireplaces, marble mantelpieces and leadlight detail. Subsequent renovations include a formal lounge, library and huge open plan living area extending onto an alfresco entertaining zone and formal gardens. Also featured are a music/theatre room, casual living room and cellar space 
The bedrooms are all large and the master includes a period-inspired ensuite. The family bathroom features a large spa, while the powder room caters for guests. Added conveniences include hydronic-heating, split-systems, intercom/alarm, automated double garage and more. 
This historically significant home is going to auction on April 30 and is expected to fetch $2,800,000.  The agents listing this property are Liz Brettell and Noel Kenny of Brad Teal.
 
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1887 Ascot Vale former PM home listed

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GUEST OBSERVER
Auction clearance rates give us insights into many aspects of the property market, but certainly not everything.
As we return to more stable conditions, it is becoming increasingly evident that we cannot rely on clearance rates alone to create the full picture of what is happening in Australian real estate.
Clearance rates refer to the number of properties sold as part of an auction campaign; this includes those sold prior to auction day, under the hammer and sold post auction.
At the end of last year, clearance rates fell to 50 percent in Sydney, triggering speculation of a spiraling market.
But two things were at play distorting these figures.
Firstly, the number of properties being auctioned was at record highs as opportunities to sell in 2015 diminished, giving buyers a lot more choice and lessening competition.
Secondly, auctions only made up 23 percent of all sales in 2015, so a large proportion of properties were being sold through private treaty, a more traditional method of sale.
This year we have seen some robust clearance figures in Sydney consistently around 75 percent, and while volumes are similar to the number listed this time last year, it is significantly less than we saw in the lead-up to Christmas. 
The number of homes being auctioned along the East Coast is expected to remain steady up to the June long weekend, but will be quieter over winter as it usually is.
Victoria last year recorded the highest percentage of auction versus private sales at 33.8 percent, followed closely behind by the ACT at 33.4 percent and NSW at 26.3 percent.
In contrast, auctions in Western Australia and Tasmania accounted for just 2.6 percent of the market.
When determining how property is performing, we can’t just limit ourselves to what is selling under the hammer. We need to look at how many people are attending open homes and the number of enquiries received by agents to determine the market strengths. 
It needs to take into consideration the micro-trends that are now starting to emerge within different capitals. What is happening in one suburb may not reflect what is happening across the city.
Auctions are fundamentally a methodology to market a property – it isn’t just a sales process.
It puts pressure on both buyers and sellers within a four-week time frame and importantly provides the best feedback on what buyers expect to pay.
Whether you decide to go to auction or not depends on many factors. The vendor needs to be happy to invest in both on and off-line marketing to promote the property. This investment is crucial in drawing out buyers.
An agent also won’t go to auction if they don’t feel there is enough competition on the day. Some may, however, run the sales campaign just to allow them to determine the right price and then sell through a private negotiation.
To truly understand the state of the market one should talk to their local agent, as they know intimately know their local market dynamics and the market more widely.
Grant Harrod is chief executive officer of LJ Hooker and can be contacted <a href="https://about.ljhooker.com.au/leadership-team" target="_blank">here</a>.
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Auctions aren’t always a proxy for the market: LJ Hooker's Grant Harrod

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Yields down since last month and almost back to levels in April 2015.
As part of our continued series on interest rates, Secret Agent has been tracking movements in the bond yield curve since late last year. If you don’t know why bond yields are so important for property investors, download our yield curve report.
So far this month, short, medium and long term treasury bond yields are down by between 0.06 percent for 90 day bills and 0.16 percent for 10 year bonds. This is shown in Figure 1.
<a href="/images/2016/04/14/Screen%20Shot%202016-04-14%20at%202.16.27%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/14/Screen%20Shot%202016-04-14%20at%202.16.27%20PM.png" alt="">
Note that lower bond yields are not necessarily a bad thing for bond investors, as yields and prices of bonds move in opposite directions. In fact, over the Easter period in particular, many bonds saw a large increase in price. One major cause was the announcement by the big banks (ANZ in particular) that bad debt charges are higher than market consensus. This drove a lot of investors to seek out bonds as an alternative, in turn driving up bond prices.
The continued downward trend on bond yields means that yields across the board are nearly back to levels seen in April 2015 (Figure 2), which was just before the RBA last cut interest rates.
<a href="/images/2016/04/14/Screen%20Shot%202016-04-14%20at%202.18.11%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/14/Screen%20Shot%202016-04-14%20at%202.18.11%20PM.png" alt="">
This again indicates low investor confidence and a bleaker outlook for the economy. It also increases the likelihood of a RBA interest rate cut before the end of the year.
For more information, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Bond yield curve indicates possible end of year rate cut: Secret Agent

A who's who of Australian surfing, business and entertainment has emerged on title records following the completion of Esprit Rainbow Bay, the latest boutique beachfront apartment development by former professional surfer Paul Gedoun's S&amp;S Projects.

The completed project has attracted an enviable collection of owners, many with long-standing ties to the southern Gold Coast and the surf culture that has helped define Rainbow Bay and neighbouring Kirra for generations.

Given Gedoun's own background in surfing, it perhaps comes as little surprise that some of Australia's most recognisable surfers have chosen to buy into the development overlooking one of the country's most celebrated stretches of coastline.

Pezet Matheson directors Jayde Pezet and Todd Matheson launched the project in late 2021, and have managed the sales campaign all the way through to its sell-out and recent completion.

<img alt="Esprit" data-entity-type="file" data-entity-uuid="08fc6261-b84e-4b09-8a44-66d3067fd0d1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-29%20at%208.51.05%E2%80%AFAM.png?VersionId=4AOcb6ETZwNUnMPdTtz1B3pZAIB_jgZ2" />

Former world champion Mick Fanning, who grew up in Coolangatta, secured an apartment in 2023. He paid&nbsp;$2.07 million. Last year he sold his Bilinga home for over $16 million.

Three-time world champion Joel Parkinson also purchased in the development, alongside big wave surfer Mark Mathews. Mathews bought the most expensive apartment in the building, spending just over $4 million.

Joining them is Rip Curl founder Doug Warbrick, whose company helped shape Australia's global surfing industry over the past five decades.

The appeal of Rainbow Bay has extended well beyond the surfing community.

International DJ Paul Fisher purchased an apartment through his investment vehicle, YLB Developments, an abbreviation of his trademark phrase "You Little Beauty".

The purchase comes as Fisher and his wife Chloe are developing their own luxury apartment project further north in Palm Beach. Their boutique beachfront development, Pescado, comprises just seven apartments on Jefferson Lane, which start from just shy of $6 million. The couple intend to retain the two-level penthouse as their Australian base between international touring commitments.

Melbourne Storm coach Craig Bellamy and his wife Wendy have also invested in Esprit, purchasing two apartments after spending decades holidaying on the southern Gold Coast. They also have a luxury apartment in Joe Adsett's Rockpool, less than 400m away from Esprit.

<h2>Boutique project draws owner-occupiers</h2>

Esprit launched in 2021 and sold strongly, with buyers drawn to its boutique scale, beachfront position and contemporary design.

The completed development comprises 94 apartments across 11 levels, offering expansive floorplans designed primarily for owner-occupiers rather than the investor market.

Crowning the building is Club Esprit, pitched as being the Gold Coast's first residential rooftop wellness centre. The roof features a&nbsp;25 metre magnesium lap pool, which is surrounded by wet daybeds and poolside cabanas,&nbsp;multiple barbecue areas,&nbsp;a yoga and relaxation play lawn, and a private dining room with a kitchen scullery, bar, lounges, and an outdoor terrace.

The wellness centre is&nbsp;fully equipped with a Technogym, ice bath, infra-red sauna, steam room, thermal room, and treatment room. The roof has views spanning&nbsp;Rainbow Bay, Snapper Rocks and the Pacific Ocean.

<h2>S&amp;S Projects continues to shape Rainbow Bay</h2>

S&amp;S Projects founder Paul Gedoun has become one of the key figures behind Rainbow Bay's evolution over the past several years.

After establishing S&amp;S Projects, Gedoun has focused on delivering lifestyle-driven apartment developments designed primarily for owner-occupiers seeking a permanent coastal home.

Esprit is Gedoun's third completed project in Rainbow Bay, following Flow and Awaken, both of which achieved record prices for the suburb.

He is now delivering <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, a 38-apartment development on Boundary Street that is currently selling, and has no plans to leave the precinct anytime soon. S&amp;S Projects has also lodged plans for its fifth Rainbow Bay development, an 88-apartment project on Boundary Street featuring a strong wellness focus.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">First look: S&amp;S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street</a>

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Joel Robinson

Who's who of buyers revealed as Esprit Rainbow Bay settles

Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

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.

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" />

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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.

Jonathan Chancellor

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