<html><body>
The Queen Anne style 8 Brinsley Road Camberwell auction listing has $3.1 million plus hopes.
It is scheduled for October 8 auction through <a href="https://www.realestate.com.au/property-house-vic-camberwell-120607793" target="_blank">Marshall White</a>.
The five-bedroom home was built in about 1888 with period features including fireplaces. 
The buyers are likely to renovate. 
</body></html>

jchancellor-FAypfDUnLy

Camberwell Queen Anne style auction offering 

<html><body>
Businesswoman Patricia Ilhan has sold her Melbourne CBD investment premises to a local investor for close to $9.5 million.
The historic four-level building at 362 Little Collins Street returns annual gross rent of around $400,000.
It was formerly part of a series of buildings occupied by the city's McEwan's hardware store.
<a href="/expert-insights/investing/patricia-iihan-lists-362-little-collins-street">It was sold by Vinci Carbone Property</a>.
The campaign generated over 100 enquiries for her four-level Melbourne office building set adjacent to Brookfield Multiplex's new 39 level development.
Set between Queen and Elizabeth streets, the 312-square-metre block has airspace development potential.
It was expected to sell for more than $8 million having been bought for $4.4 million in 2009.
She is believed to be selling the prime CBD property to reinvest in another commercial property.
</body></html>

Patricia Ilhan sells Little Collins Street premises

<html><body>
GUEST OBSERVER
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
Community groups upset that The Hills Shire Council propose to lower development heights around stations in the North West Rail Corridor have every right to protest. 
It is rare that we see community groups angry that a council has reduced heights for new development in their area but this is what has been achieved by the Hills Shire Council. 
Days after the State Government has announced the Greater Sydney Commission to better co- ordinate planning across Sydney we see an individual council preparing their own plans, in an attempt to usurp the State Government plans that will shortly go on public exhibition.
The North West Rail Corridor Plans developed by the Department of Planning and Environment are in direct response to the state government’s new railway line through the North West. 
Clearly robust development is needed around these stations to ensure taxpayers gain the most benefit from this piece of infrastructure and the Department’s plans would achieve this. It seems bizarre to now have a competing plan produced by the local council on the basis that their plan reflects ‘the values and lifestyle of local residents’. Certainly those residents who own land which is now worth considerably less due to reduced development potential will feel that their values have been reduced.
The Council has increased uncertainty and confusion for both the local community and the development industry by exhibiting plans for these precincts when the Department of Planning &amp; Environment has made it clear that they are developing detailed plans for these areas.
The Hills Shire Council proposes an incentive system to ensure that ‘The Hills Shire values’ are achieved. This means extra floor space will be available if proposals for new apartments have Shire apartment sizes and mix.
The Greater Sydney Commission will need to manage the local rules to reflect local values that could lead to multiple planning standards across Metropolitan Sydney.
The Urban Taskforce is keen to work with local community groups that are battling their council’s attempts to reduce development potential on their land.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
</div>
</div>
</div>
</body></html>

The Hills are alive with the sound of speculator home seller protest: Urban Taskforce

<html><body>
Policies seeking to increase home buyers’ purchasing power when supply is insufficient will serve only to drive up prices and reduce housing affordability, according to the Australian Bankers Association Inc (ABA).
"The buying power of most home purchasers is determined ultimately by the amount of money they can borrow. 
"The average loan size is now $357,500 or 8.7%higher over the past year, and not surprisingly the highest on record."
Finance providers are maintaining high lending standards, claimed ABA in the submission to the House of Representatives Standing Committee on Economics.
"The proportion of new loan approvals to high LVR borrowers, i.e. LVRs more than 90% has fallen since 2009 for all borrowers and remains below 10% for investor loans.
"Low doc loans have fallen to very low levels for both owner-occupiers and investors. The proportion of interest only loans has been gradually rising since 2009, with investors showing a greater propensity to use this form of financing compared with owner-occupiers. The share of housing loans which are impaired has been falling since 2011." 
Australia needs to progressively increase its housing stock to shelter its growing population. 
"Over the year ending September 2014 Australia’s population is estimated to have increased by 354,600.Of this, 150,700 was natural increase and 203,900 was net overseas migration. 
"There is a danger that policy prescriptions that seek to address issues in particular markets – such as excess demand in Sydney and Melbourne – but which are applied across the nation may have unintended consequences in other areas of Australia where such issues are less pressing or absent." 
ABA believes that there is significant opportunity for reform in policies to increase land release for housing construction. 
"The supply side of the housing industry is now beginning to lift. Approvals to build new dwellings have been trending up since mid-2012 and over the year to April 2015, 214,000 approvals were issued for the construction of dwellings. 
Building approvals 
"The close relationship between interest rates and housing construction approvals does not mean that interest rates can be used as a policy tool to address issues of housing shortages. 
"Interest rates influence the short term cycles in construction, but do nothing to address the longer term structural imbalance between demand and supply."
In terms of structural issues a persistent complaint is that development is hindered by a shortage of green field sites, reflecting insufficient land release by state governments, and by excessively restrictive council regulations and developer levies. 
"Demographia supports the assertion that higher land prices are a major factor and that a key reason for expensive land is inadequate release of new land for development." 
Around two thirds of households own or are purchasing their home and about one third are renting. Australia’s home ownership rate is around the middle of many of its peers in the Organisation for Economic Co-operation and Development (OECD). 
"More recent data on housing finance commitments suggests that investors are increasing their share of the housing stock. This is not a uniform trend across Australia but is particularly marked in Sydney and to a lesser extent in Melbourne."
Banks are the predominant suppliers of finance for housing in Australia and housing loans comprise the major part of most banks’ assets. 
"Loans outstanding for the purchase and construction of houses total $1.46 trillion. Of this, banks lend $1.35 trillion, with the remainder spread among building societies, credit unions and finance companies. 
<a href="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.21.51%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.21.51%20PM.png" alt="" width="533" height="434"> 
"Housing loans comprise 62 per cent of the total lending assets of banks and about two- thirds are loans to owner-occupiers and the remaining third to investors. 
"Over the past two years or so the growth rate [of borrowing for housing] has gradually accelerated and has now reached 7.2 per cent over the year ending April 2015. 
"The growth rate over recent months has been the highest since late 2010, but it is well below the average rate of growth in the pre GFC era. The last historical high point was in March 2004 at almost 22 per cent."
<a href="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.23.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.23.32%20PM.png" alt="" width="421" height="287"> 
Interest rates on home loans are at multi-generational lows. The average advertised standard variable mortgage rate was 5.45 per cent in May 2015, the lowest since 1968. 
"Today’s discounted rate is even lower at less than 5 per cent. These low rates compare to the 17 per cent peak recorded between June 1989 and March 1990.
"These low rates charged to home borrowers are in part a reflection of the intense competitive environment faced by bank and non-bank lenders. Mostly however, they are a product of the globally low interest rate environment. The RBA’s cash rate was reduced to 2.00 per cent in May 2015 - the lowest in a generation. 
"Interest rates on fixed rate loans are also very low at below 5 per cent. The proportion of loans which are fixed rate is now falling. Around 10 per cent of new loans are fixed rate, which is about half the proportion in 2013. 
"Household finances are in good shape. Dwellings are the single largest component of household wealth at $5.1 trillion, with superannuation at $1.9 trillion. 
"The ratio of housing debt-to-housing assets is around 28 per cent, with every $1 of debt being matched by over $3 in house value."
Although households are increasing their borrowings for housing, they are also prepaying their loans to a greater degree. As a result of this, households are now on average the equivalent of 28 months, or more than two years, ahead on their mortgage repayments 
A change in the mix of property taxes away from stamp duty, and with greater emphasis on land tax would likely improve turnover in the housing market, improving the efficiency of the use of the existing stock of housing
The ABA supports the recommendation of the Committee (recommendation 9.70) that Treasury should prepare and publish a study on the influence of negative gearing on the housing market.
ABA also believes there is not enough evidence to support that current CGT arrangements combined with negative gearing encourage speculative investment as deductions are made at the taxpayers’ marginal tax rate, but gains are taxed at half of that rate. 
"Removal of stamp duty on housing transactions would simplify taxation arrangements. It would improve efficiency by increasing the level of beneficial transactions and by improving the allocation of resources. 
"Abolishing stamp duty would result in a more efficient allocation of housing, as it would no longer act as a barrier to downsizing or moving to a more suitable property. It would also cease to act as a barrier to workers seeking to move for better employment opportunities. 
"An abolition of stamp duty would be expected to result in an increase in property values, particularly in an environment of constrained supply. 
"For banks this would improve (reduce) the LVRs of existing borrowers, with a concomitant reduction in the riskiness of the existing housing book. It would lift the effective available deposits for new borrowers although the effect of this on improved housing affordability may be offset by higher purchase prices. 
"Land tax is a more efficient form of property tax than stamp duties, particularly when it is broad-based. 
"Broadening the scope of land taxes provides an opportunity to lower the rate of tax. 
The revenue implications of changing the rate of land tax vary markedly depending on its scope. 
"The only argument in favour of higher rates of land tax is to increase government revenue. Due to the low excess burden of land tax, changing the rate of land tax to increase government revenue would be one of the least distortional methods to boost receipts. 
"However, a change in rate by itself does not address the issues of complexity or fairness."
</body></html>

Finance providers maintaining high lending standards: ABA

<html><body>
Policy should not advantage property investors at the expense of prospective owner-occupier home buyers, according to the Reserve Bank of Australia.
In the submission to the inquiry into Home Ownership, the Reserve bank stated that financial stability considerations would suggest that tax and regulatory frameworks should avoid encouraging over-leveraging into property, whether by owner-occupiers or investors. 
"In considering opportunities for reform, the Bank believes that it is worth bearing in mind that there are both benefits and costs of owner-occupation. 
"The broad policy objective of ensuring that all Australians can access suitable housing at reasonable cost need not translate into an objective that all households should purchase their home early in life, let alone that they should all be able to purchase their first home in their ideal location. 
Home ownership in Australia increased considerably over the past century, but has been stable at around 70 per cent since the 1960s. 
"The increases were concentrated in the periods immediately after the two world wars, particularly World War II (WWII), as a result of significant government assistance including War Service Homes programs."
According to the latest Census, around 68% of Australian households owned their own home in 2011.
<a href="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.08.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.08.43%20PM.png" alt="" width="548" height="496">
"The general stability in home ownership in Australia over recent decades has masked some marked changes in home ownership among different age groups. 
"In particular, there has been a pronounced decline in home ownership among younger households, particularly in the 25–34 and 35–44 age groups. Home ownership rates have generally been more stable among older households. 
<a href="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.11.04%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.11.04%20PM.png" alt="" width="466" height="402">
 
Factors contributing to lower home ownership rates among younger households include the following.
"An increase in income inequality over recent decades, in part reflecting the simultaneous rise of two-income households with increasing workforce participation by women as well as the rise of single adult households (with or without dependents). 
"This led to increased borrowing capacities for households with high home ownership propensities, which will tend to have advantaged older households over younger ones. Accordingly, the decline in home ownership rates over the past decade or so has been concentrated in the third and fourth income quintiles, while that of the top income quintile has been little changed.
"Financial innovation in the 1990s and the 2000s arguably led to greater relaxation of restrictions on borrowing for higher-income households than for lower-income households. 
"Increased labour market flexibility, accelerated technological change and other factors may have increased employment and income insecurity and so reduced the willingness of some households to take on the long-term financial commitment of owning a home (or the ability to service a loan) and the capability of some to remain in home ownership."
The home ownership rate in most states remains above levels. While all states had home ownership rates between 65 and 75 per cent as at the latest Census, there is still considerable variation across states, with home ownership ranging from a low of around 65 per cent in Queensland to a high of almost 72 per cent in Tasmania and Victoria. 
"The transition to a low-inflation regime, implying lower nominal interest rates, has significantly increased households’ borrowing capacities relative to their current incomes, and therefore their capacity to service debt on owner- occupied housing. 
"Survey evidence suggests that total housing costs of owner-occupiers have not moved much relative to incomes over the past couple of decades. 
"Alongside the other demand drivers, one fundamental determinant of housing demand will be the rate of new household formation, which is in turn dependent on the interaction between population growth and developments in average household size. 
"After relatively stable growth from the early 1990s through to the mid 2000s, Australia’s population growth stepped up significantly owing to higher net immigration and, to a lesser extent, a slightly higher rate of natural increase.
"The composition of population growth can also influence housing demand. Much of the fluctuation in population growth rates over the past decade has been driven by fluctuations in net arrivals of people on student visas."
Recent rule changes have made it easier for students to remain in Australia after graduation, including by becoming permanent residents. 
"Over the shorter term, fluctuations in interest rates can be expected to affect the demand for housing. By reducing the burden of debt repayments relative to income, lower interest rates may ease cash-flow constraints and increase borrowing capacity at the margin. This effect applies both to owner-occupiers and investors. 
"Lower interest rates also encourage households to save less and borrow more in the present, thereby shifting consumption from the future. 
"However, prudent buffers on the minimum interest rates that lending institutions use to calculate allowable mortgage loan sizes imply that this effect might be smaller when interest rates are already low. 
<a href="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.12.47%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.12.47%20PM.png" alt="" width="509" height="500">
"The Australian Prudential Regulation Authority (APRA) has recently provided guidance to lenders that the interest rate used in these serviceability tests should be at least 7% (APRA 2014). The Bank estimates that the lower limits on interest rates used in these calculations are probably binding at present, or close to binding. 
"Thus, households that already planned to borrow as much as lenders would permit would not see an increase in borrowing capacity from a decline in interest rates at present. 
The proportion of the housing stock owned by investors looks to have risen over recent decades, offsetting the decline in the prevalence of public housing. 
The investor share is also likely to have risen a little further over the past few years, as investors have accounted for an increasing share of property purchases since 2012.  
"While the incidence of property investment increases with the level of income, the Household, Income and Labour Dynamics in Australia (HILDA) Survey also suggests that most investor households are in the top two income quintiles. 
"These households hold nearly 80 per cent of all investor housing debt, and appear well placed to service their debt: they typically use less than 25 per cent of their income to service their total property debt, and around half are ahead of schedule on all their mortgage repayments.
It would be counterproductive to try to encourage more home ownership by making it easier for marginal buyers to borrow more. Both for this reason and in the interests of financial system stability, the Bank would not support measures that expanded credit supply to households at the expense of prudent mortgage lending standards. 
The Bank believes that there is a case for reviewing negative gearing, but not in isolation. Its interaction with other aspects of the tax system should be taken into account. 
"The ability to deduct legitimate expenses incurred in the course of earning income is an important principle in Australia’s taxation system, and interest payments are no exception to this. To the extent that negative gearing induces landlords to accept a lower rental yield than otherwise (at least while continued capital gains are expected), it may be helpful for housing affordability for tenants. 
"It is worth noting, however, that the interaction of negative gearing with other parts of the taxation system may have the effect of encouraging leveraged investment in property. 
"In particular, the switch in 1999 from calculating CGT at the full marginal rate on the real gain to calculating it as half the taxpayer’s marginal rate on the nominal gain resulted in capital gain-producing assets being more attractive than income-producing assets for some combinations of tax rates, gross returns and inflation. 
"This effect is amplified if the asset can be purchased with leverage, because the interest deductions are calculated at the full marginal rate while the subsequent capital gains are taxed at half the marginal rate. 
"Since property can usually be purchased using higher leverage than other assets that produce capital gains, property is especially affected by this feature of the tax system. 
"Another change in the landscape since 2003 is that superannuation funds are now able to borrow. Some self-managed superannuation funds have taken advantage of this by adding geared property into the fund portfolio, both residential and, in particular, commercial property. 
"The Bank has previously observed that leverage in superannuation funds may increase vulnerabilities in the financial system and therefore supports limiting the scope for leverage in these funds.
"Additional housing supply ought to dampen housing prices, and more probably will reduce the growth rate of housing prices that occurs in response to increases in demand for housing. 
"There is no example in Australia or internationally where supply expansion on its own generated housing price declines of a similar order of magnitude to the increases in prices seen in some Australian cities in recent years; some academic work on this issue suggests that removing supply constraints in a single population centre might not reduce prices significantly (Aura and Davidoff 2008)." 
<a href="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.15.41%20PM.png" target="_blank">Click to enlarge</a>
Housing Debt Serviceability
<img src="/images/2015/09/10/Screen%20Shot%202015-09-10%20at%201.15.41%20PM.png" alt="">
</body></html>

Tax, regulations should avoid encouraging over-leveraging into property: RBA

<html><body>
Ensuring housing supply, dwellings that meet the social and demographic demands, and providing greater mobility across different tenure types within the market are the minimum changes the Department of Social Services believe to be necessary in the case of changing the current housing policy.
While not seeking to outline any specific reforms, the Department of Social Services pointed out areas for improvement In the submission to the House of Representatives Standing Committee on Economics.
"The Department does note that any future reforms should include a focus on improving the effectiveness of housing supply and the collaboration of jurisdictions with respect to the broader policy settings influencing the operation of Australia’s housing market. 
"In relation to improving housing supply, there are a number of avenues that could be explored. For example, in the context of the Reform of the Federation White Paper process there may be scope to examine the effectiveness of the NAHA in incentivising the states and territories to ensure housing supply is better able to respond to increases in housing demand. 
"With respect to better aligning the broader policy settings influencing housing supply and demand, this will require increased, and ongoing, collaboration by all levels of government. 
"Mechanisms to facilitate such collaboration may be looked at as part of the Reform of the Federation White Paper process, although increased informal collaboration may be just as effective as more formal mechanisms. 
"The roles and responsibilities of the Commonwealth and states and territories, in respect of housing assistance and homelessness services, are currently being examined as part of the Government’s Reform of the Federation White Paper process. 
"Potential reforms to the current roles and responsibilities of the Commonwealth and the states and territories, around the provision of housing assistance and homelessness services, may improve the alignment of current incentives in relation to housing demand and supply. 
"However, this process is unlikely to materially impact the broader policy responsibilities of either level of government in terms of their impact on housing supply and demand. 
"There have been over 25 inquiries and significant reports related to housing policy and planning since the last National Housing Strategy was completed in 1991. 
"The most comprehensive of these reports were the Productivity Commission’s Review into First Home Ownership in 2004, the 2008 Senate Inquiry on Housing Affordability in Australia, the Australia’s Future Tax System Review in 2010 and the 2015 Senate Inquiry into Affordable Housing.
"However, housing affordability, and with it the level of home ownership, across Australia, has continued to fall over this period notwithstanding the recommendations and findings of these reviews. 
"The limited impact of previous reviews underscores the proposition that, without reforms to existing structural policy settings, the current issues with housing affordability will not recede, and indeed are more likely to intensify given the current low interest rate environment. 
"This will likely lead to an increase in the number of Australians being excluded from owning their own home, which is likely to put further pressure on the private rental market and in turn community and public housing and CRA [Commonwealth Rent Assistance]." 
</body></html>

Department of Social Services weigh in to housing debate

<html><body>
Reviews on negative gearing, CGT discounts, Self-managed super funds investing in residential property, foreign investment, and immigration levels are key opportunities for reform to improve home ownership in Australia, according to the Affordable Housing Party of Australia (AFHPA).
Phasing out tax advantages over a period of possibly 10 years is the mechanism suggested by AFHPA in their submission to the inquiry into Home Ownership. 
"Firstly, it is likely to encourage investors, especially long term investors, to release properties back onto the market to avoid increased capital gains tax. Hence we should see an increasing proportion of owner-occupiers within 3-5 years. 
"Secondly, as residential investment slowly becomes less tax effective there should be decline in investor interest and reducing prices over time.
"Hence the AFHPA would propose a gradual reduction on the favourable tax treatments to residential property investments.  
The AFHPA would also suggest that action be taken in the following areas:
"CGT discounts on residential property. In the first year after a change property investors would pay tax on 55% of capital gains made on property, the next year it might be, say 60% increasing each year until CGT is paid on 100% of the capital gain. 
"Increase CGT on Self-managed super funds (SMSF) investing in residential property.
"Similar arrangements would be made with SMSF however as the Federal Government has committed to a review of Superannuation the AFHPA will wait until this review is released before commenting on what the actual rate of taxation should be. 
"In the first year after a change in negative gearing investors would be allowed to claim 100% of losses on residential property against their pay as you earn tax obligations, in the second year it might be, say 90% etc."
End foreign investment in the residential property market by tightening rules pertaining to foreign investment in residential property to their pre 2008 level. 
"Because of its undoubted effect on house prices, there is an urgent need to review the current level of migration to Australia. The AHPA would encouragement the widest possible public debate before a final level of immigration was set.  
"However the AHPA position is that the current levels are unsustainable."
Demand and Supply Drivers in the Housing Market 
On the demand side, the AFHPA cites the generous tax treatment of investors in residential housing as a driver of demand and hence rising pricing in the residential property market.  
"AFHPA cites the reduction in CGT as the main driver in investor demand in the last decade. This can be seen in the increasing percentage of investor in the residential housing market since changes were made in CGT by the Howard Government in 1999. 
"Reduced CGT for residential property favours wealthier Australians. Wealthier Australians make more of their income through capital gains than poorer Australians; poorer Australians make their income through wages. 
"Reduced CGT favours Australians with excess funds that can be invested in the property market. In a similar vein the generous treatment of funds in an S.M.S.F. advantages investors over owner-occupiers. 
"However, the AFHPA also submits that negative gearing on residential property is also very ineffective. The bulk of investors using negative gearing have purchased existing properties, hence there can be no argument that negative gearing adds to the supply of housing. 
"The fact that SMSFs are allowed to included residential property further increases demand again without increasing supply. 
"Migration is not often mentioned in regard to housing affordability. The current level of immigration is one of the highest in the OECD and this increases demand in a limited market and hence puts upwards pressure on housing prices. 
"Australia now has a business migration program where applicants for immigration are selected on their financial status. The basic idea being these applicants will have funds to invest in Australia. 
"To date the AFHPA knows of no economic study as to where these funds are being invested. If the funds brought to Australia are being invested in the residential property market, then this doubly affects housing affordability. 
"Finally, investment in existing residential property does little to improve the economic position of Australia. 
"Effectively what is happening is Australia is repricing its existing assets, no real wealth is being created. Wealth is simply being transferred from one generation to the other. 
"The funds invested in property could be better applied to other areas. Although State Governments improve their budgets positions through increased stamp duty and lending organisations make greater profits as housing prices rise, but this is not wealth creation." 
</body></html>

Wind back on favourable tax for residential property investors: AFHPA

<html><body>
Di Jones Real Estate has announced the launch of their Southern Highlands division, born from "strong existing synergies between the agency’s core market of the Eastern Suburbs and the Southern Highlands."
Locals Kate McCullagh, Elizabeth Tregear and Anita Roelevink will lead the Di Jones operations that will not have a traditional shop front but will be digitally positioned and aligned with the Eastern Suburbs head office.
"The internet has reshaped how real estate is delivered and how people search for property," the agency noted.
Recent investments by<a href="https://www.dijones.com.au" target="_blank"> Di Jones Real Estate</a> in digital media and marketing strategies had increased website visits by 30% with four times more visits via mobile devices, and shown a six-fold increase in viewings of its online videos.
The agency database is more than 28,000 buyers throughout NSW, general manager Kylie Walsh said.
 
</body></html>

Di Jones announces Southern Highlands division

<html><body>
GUEST OBSERVER
A swell in the number of listing this spring will bring positive changes to the property market.
House-hunters will already have noticed a rise in homes for sale earlier in spring than usual offering choice, better affordability and less pressure when it comes to finding a new home.
It has started to shift into a more traditional housing market along the eastern seaboard.
As listing slowly rise, we can expect price growth to still be above average but remain at a more sustainable level.
There won’t be a dramatic fall away of prices in markets such as Sydney and Melbourne where demand remains strong, however, we won’t see street records continuously being broken. 
Vendors need to be mindful we have enjoyed an extended period of incredible growth and may need to adjust price expectations. 
The media is still going to quote these spectacular sales results but I would suggest, that these are likely to become a bit more one off.  It will be home by home. Quality will still stand out.
Real estate that offers a "lifestyle" and that is well presented, requiring minimal updating, will be on the top of buyer’s wish lists and should fetch top dollar.
Even average agents have done well over the past two years but as we shift into a more traditional scenario where negotiations will be a key, it will be important for vendors to do their research. 
They need to ensure their agency has marketing plans and a good active database.
Proper preparation of a property for sale such as styling or minor home improvements on the advice of your agent could pay off in the current market.
Buyers typically come within the first two weeks of any marketing campaign. 
There is a risk that if vendors have unrealistic price expectations and turn down offers leaving their property for sale for an extended period, then the property will lag on the market. 
Changes to investor lending is anecdotally already starting to have an impact on the market.
They are being replaced by cashed-up buyers who previously missed out on purchasing either because of strong competition, price growth or lack of supply over the past 18 months.
Grant Harrod is chief executive officer of JL Hooker and can be contacted <a href="https://about.ljhooker.com.au/leadership-team" target="_blank">here</a>.
</body></html>

Swell in spring property listings: LJ Hooker's Grant Harrod

<html><body>
A Gold Coast beachfront double block has been sold by a Catholic religious order for the first time in half a century.
The 1A Fourth Ave, Palm Beach was sold by the Congregation of the ­Religious Sisters of Charity of Australia.
The Sisters of Charity have been operating since 1838.
<a href="https://www.mcgrath.com.au/buy/house-palm-beach-qld-4221/263982/?searchID=54931957" target="_blank">The sale price is undisclosed</a> but understood to be around $3 million.
The five-bedroom cottage was used as a holiday home on an 870sq m block with 22m of beach frontage was sold by McGrath Broadbeach agents John Natoli and James Ledgerwood.
It last was for sale 54 years ago.
Up-market beachfront homes in Palm Beach have fetched as much as $3.3 million this year.
McGrath marketed it has one of only six properties on Palm Beach with double beach frontages.
The median house price for <a href="/news">Palm Beach Queenlsand</a> is $600,000, according to CoreLogic RP Data.
</body></html>

Double block Palm Beach, Gold Coast sold by Sisters of Charity

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

&nbsp;

[smartcode_project:default project_id=150414 project_image_fid=372743]

Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

&nbsp;

[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

[smartcode_project_cta:default project_id=146717]

Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

[smartcode_project:default project_id=134323 project_image_fid=6395]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

[smartcode_project:default project_id=134323 project_image_fid=6399]

Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

[smartcode_project:default project_id=134323 project_image_fid=353235]

A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Jonathan Chancellor

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News