<html><body>
The Opposition leader Bill Shorten has conceded that Labor's negative gearing/capital gains tax reforms were not “universally loved.”
“I would rather see more young couples buy their first home, than spend billions subsidising investors acquiring multiple properties,” Shorten argues.
“All of the experts know that with scarce taxpayer dollars it’s better to put money into health and aged care than give a tax subsidy to someone buying their sixth or seventh investment property,” Mr Shorten said.
The last time I looked there were only 20,023 Australians with an interest in six or more investment properties, as according to ATO statistics 71 per cent of the Australians with rental properties have just the one investment.
The latest SQM forecast research suggest the policy was "risky" to the Australian economy.
There are some commentators who suggest the best time to shut down negative gearing as we know it is when few people are taking it up.
And they suggest that time is now, given our enduring low interest rates.
But the detailed SQM study ought dictate a policy rethink.
Labor announced it would abolish negative gearing as we know it before the last election, along with putting up the capital gains tax on housing investment by 50 per cent.
The policy was pitched to help housing affordability.
Sydney house have since fallen by some 13 percent from the peak, the biggest, quickest drop in living memory.
The landscape is very different now, yet the policy stays the same.
Wise heads don’t want a return to the runaway house price growth that denied first-home buyers getting into the market.
But there is a need to protect against seriously further undermining the value of people’s exisiting homes.
If Australians lose confidence in the value of the biggest investment they ever make, then this will impact everything.
No one really knows the full behavioural outcomes of investors, but polling shows Australians are unconvinced by the flagship Labor reform.
Property is a critically important asset class as Australian households hold more than half of their wealth in residential property.
Ofcourse the current anxiety assumes a change of Federal government and then the passage of the policy through the parliament.
This article was first published in the Saturday Daily Telegraph.
 
</body></html>

jchancellor-FAypfDUnLy

Is now the best time to shut down negative gearing?

<html><body>
Many Sydney vendors avoided weekend auctions given the clash with the NSW state election.
There were just the 355 auctions across Sydney, substantially lower than the prior weekend's 513 listings.
The listings pattern that had been impacted by the election, would now likely revert to the big run up to the pre-Easter weekend, Kevin Brogan, the auction analysts at CoreLogic noted.
CoreLogic also noted that trend of more houses and apartments being sold pre-auction than under the hammer continued to occur with regularity.
Sydney's top sale in Mosman was pre-auction.
The four bedroom <a id="LPlnk53359" class="x_OWAAutoLink" href="https://www.belleproperty.com/listings/761100/57-shadforth-street-mosman-nsw-2088/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">57 Shadforth Street, Mosman</a> (below) offering fetched $3.47 million through Belle Property which was slightly at below its mooted expectations.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/25/Mosman1.jpg" alt="">
The price guide had been $3.5 million for the house last sold in 1993 at $770,000.
Another property sold ahead of scheduled auction included a spacious warehouse-style property at <a id="LPlnk581726" class="x_OWAAutoLink" href="http://www.ppdre.com.au/1P4600" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">31 Blenheim Street, Queens Park</a> (below) at $4 million.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/25/QP.jpg" alt="">
Agent Alexander Phillips had 98 groups though the property which sold within two weeks of marketing.
The five-bedroom house last changed hands four years ago for $3,335,000.
<div class="x_page" title="Page 1">
<div class="x_section">
<div class="x_layoutArea">
<div class="x_column">
There were 1,669 homes taken to auction across the combined eight capital cities, down from 1,875 over the previous week. 
Click here <a href="https://www.propertyobserver.com.au/images/2019/3/25/CL-Mar25.jpg" target="_blank">to enlarge</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/25/CL-Mar25.jpg" alt="">
Brogan noted the same time last year, volumes were significantly higher with 3,990 homes taken to auction over what was the pre-Easter weekend, traditionally one of the busiest weeks for auctions each year.
Preliminary results show a national clearance rate of 56 percent, up from last week’s revised 51.4 percent clearance rate.
"Although this will revise lower as the remaining results are collected," Brogan said.
CoreLogic calculated the finalised clearance rates has sat above 49 percent for five of the last six weeks.
"And it’s likely that this week will be no different," Brogan said.
Over the same week last year the final clearance rate was recorded at 62.7 percent.
</div>
</div>
</div>
</div>
The dearest reported result in Melbourne was a four bedroom house in Glen Iris that sold under the hammer at $3,642,500 with three bidders.
The four bedroom home at <a href="https://www.marshallwhite.com.au/property/17-vincent-street-glen-iris-765096/" target="_blank">17 Vincent Street, Glen Iris</a> sold through Marshall White whose price guidance had been $3.5 million to $3.75 million.
It was announced on the market at $3,575,000 having last sold in 2009 at $2.25 million.
A contemporary four-bedroom home at <a id="LPlnk763124" class="x_OWAAutoLink" href="https://www.hodges.com.au/property/762437/7-campbell-street-brighton/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">7 Campbell Street, Brighton</a> (below) was passed in at $4.11 million with just the one bid.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/25/Bright.jpg" alt="">
The custom built Atkinson Pontifex home had a $4.2 million to $4.62 million price guidance.
A home used as a location in the 2004 film The Brush-Off sold in Melbourne’s north post auction, the Herald Sun reported.
The Moonee Ponds period home at <a id="LPlnk940323" class="x_OWAAutoLink" href="https://www.nelsonalexander.com.au/property/763598/22-bloom-street/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">22 Bloom Street</a> sold for an undisclosed sum but within the home’s $1.5 million to $1.6 million advertised range through Nelson Alexander Real Estate.
A Brighton beach box has likely matched the record price for the limited offerings along the iconic stretch of sand.
The quaint <a id="LPlnk328791" class="x_OWAAutoLink" href="https://www.realestateview.com.au/real-estate/bathing-box-89-brighton-vic/property-details-sold-residential-12434419/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">bathing Box 89 </a>sold pre-auction for an undisclosed figure, but reportedly matching the record price of $337,000 set at an April 2018 auction for bathing box 76B.
Marshall White agent Matthew Pillios confirmed to the Herald Sun that No. 89 sold above its price range of $300,000 to $330,000.
The beach box has a mural of a koala enjoying a relaxing day at the beach painted by the artist Daniel Worth.
It was once awarded by the City of Bayside as the best exterior mural along the beach.
The beach box had been owned for three decades by the vendors who sold to a local middle-aged couple with children.
Domain had Sydney's weekend clearance rate at 61 percent, with Adelaide the second best at 55 percent.
Melbourne was at 54 percent; Canberra at 47 percent and Brisbane at 34 percent. 
An $188,000 sale outside Brisbane was the nation's cheapest result, Domain advised.
It was a three bedroom house on 420 sqm at <a id="LPlnk195454" class="x_OWAAutoLink" href="https://www.propertyobserver.com.au/https://raywhitecaboolture.com.au/properties/residential-for-sale/qld/caboolture-south-4510/house/2059757" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">91 Rosemary Street, Caboolture South</a> (main picture), north of Brisbane inland from Bribie Island.
Agent Peter Wright at Ray White marketed it as an opportunity for investors, families and first home buyers.
It had last sold when offered as a $250 a week rental proposition for $205,000 in 2014, reflecting a $17,000 price dip over the five years. 
Auction highlights this week.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/25/Expense-Mar25.jpg" alt="">
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/25/Afford-Mar25.jpg" alt="">
 
</body></html>

Nation's cheapest weekend auction result, a Caboolture South offering sells at a loss 

<html><body>
There are thousands of properties across Sydney worth less than their purchase price given property values have dropped nearly 13 percent since the July 2017 peak.
Buyers who bought then for $1 million, the CoreLogic index suggests, would now have a home worth $870,000.
Values rose by around 75 percent in the five years from 2012, but CoreLogic suggests values have reverted back to mid-2016 levels.
CoreLogic has further calculated almost 270,000 Sydney properties would lose money if they happened to sell now.
Ofcourse the current sale price depends of many factors, not just the the time of purchase, and the overall market price trend. It may be that the property was bought very well. It may be that the suburb has done better than most in withstanding the downturn. It may be the type of property has escaped the brunt.
It is not just the directly impacted 270,000 who are feeling their falling household net worth. All of Sydney are.
Just how that feeling reverberates through the economy is being closely watched by economists, surplus seeking governments and the Reserve Bank of Australia.
Feeling less wealthy could affect the economy as cautious households boost savings and reduce their spending, which potentially triggers increased unemployment, and then a nasty economic spiral.
The Reserve Bank once calculated a 10 per cent increase in housing wealth raised consumption by 1.5 per cent. And some economists believe the wealth decline effect could be twice as much in impact as gains.
Owing more on the house than it is worth is known as negative equity. Selling the house for a loss is the worst of possible outcomes, but these will likely be limited to a few recent buyers whose loan-to-valuation ratios sat above 90 per cent, and whose personal circumstances have changed. Their selling could mean having to write a cheque to the bank, and then not having the deposit for another property.
<div>However negative equity will make many more home owners a prisoner in their existing property.</div>
The American National Bureau of Economic Research suggested that negative equity reduced household mobility by 30 per cent, as owners are understandably unwilling to crystallise losses.
Most recent Sydney owners will never really know if they are in negative equity, but recent interest-only mortgage borrowers are more at risk since their loan repayments have been at a lower rate. 
When a borrower’s initial interest-only period is over, clients automatically roll-over to a principle and interest (P&amp;I) loan on the variable rate, Sam White, the executive chairman at Loan Market advises.
"Very rarely will this trigger a valuation," he said. White adds when the borrower was first assessed, they would have been assessed on their P&amp;I capacity.
"They would also have been assessed at a rate higher than the actual interest rate, so as long as nothing has changed with their circumstances, they should be able to make those repayments. If the client can make their payments, the lender will support the client, even if they have negativeequity."
Mortgage brokers are aware of their client's pending reset, with White saying at that stage his brokers work with clients to ensure a smooth transition.  His recommendation is that before the borrower deals with the bank they should talk to their broker to understand what their options are and what a particular lender’s response is likely to be.
This article was first published in the Saturday Daily Telegraph. 
</body></html>

Emerging negative equity will make owners prisoners in their homes

<html><body>
Bauer Media has announced the sale of Money magazine to financial services research house Rainmaker.
Money editor Effie Zahos and deputy editor Maria Bekiaris will provide Rainmaker Group with their editorial services to assist with the transition, however they have chosen not to continue past the transition period.
Zahos is a financial literacy campaigner who authored A Real Girl’s Guide to Money: From Converse to Louboutins.
The Telum newsletter reports Zahos will remain with Bauer and liaise with editors across the Bauer brands.
Paul Clitheroe will continue in his role as Money’s chairman and chief commentator.
Established in 1999, Money is Australia’s longest running and most-read personal finance magazine.
The April issue is the final edition Bauer will produce.
Following the purchase, Money magazine will become Rainmaker’s key consumer title under its media division, Financial Standard. 
It currently publishes five B2B titles, including its flagship newspaper, and three B2C titles: The Good Super Guide, The Good Investment Guide and The Good Economics Guide.
“This is our first major acquisition since our media division, Financial Standard, was established in 2003. While we have steadily built our business in trade media, this acquisition meets our longer-term objective of growing our consumer media platform,” said Christopher Page, founder and group managing director of Rainmaker. 
Following the deal, Rainmaker Group has announced new leadership roles with Michelle Baltazar, executive director of media at Financial Standard, to assume the role of editor-in-chief. 
Darren Snyder, editor of Financial Standard, will move to the role of managing editor of Money.
Besieged Bauer Media ANZ CEO Paul Dykzeul said the sale was due to a desire to focus on ‘core consumer brands’.
Rainmaker Group's core revenue stream comes from providing financial information to superannuation funds, investment managers, and financial planners.
The Rainmaker Group was founded in 1992 providing market intelligence, industry research, media and publishing, events and consulting services.
Rainmaker publishes four B2B journals alongside the Financial Standard newspaper: FS Advice, FS Super, FS Private Wealth and FS Managed Accounts.
Baltazar has more than 15 years' experience in financial services media including roles at BRW in Sydney and Shares Magazine in London. She joined Financial Standard in 2005.
"We hold Effie and Maria in high regard and wish them well in their future endeavours," Page said.
"Effie's strong leadership and editorship has enabled Money to boast the loyal reader following that it has today."
New editor-in-chief of Money, Michelle Baltazar said they have built a solid foundation from which "we can further build Money's reputation as the leading source of personal finance news and expert advice".
It was 2012 when the heavily indebted Nine Entertainment group sold Australian Consolidated Press, which published Money Magazine, to German media group Bauer for a reported $500 million. 
</body></html>

Effie Zahos to depart Money Magazine after acquisition by Rainmaker, but Paul Clitheroe to remain

<html><body>
Bomera, the heritage sandstone Italianate mansion on the Potts Point clifftop, has been listed for sale publicly after failing to find an off market buyer.
It was six years ago that Bomera was bought for $12.5 million by Leanne Catelan, the daughter of the late RP Data founder Ray Catelan.
Bomera had had ambitious $25 million hopes in 2010, but sat on the market for two years before Catelan swooped on the 160 year old mansion.
Catelan bought it from Spanish property developer Jorge Fernandez and wife Monica, who had commissioned heritage architects Graham Brooks &amp; Associates to restore the residence. 
They had bought the property in 2001, paying $6.55 million. It had been owned by the Defence Department, along with its neighbour, Tarana, since the 1940s. Tarana, which was also acquired by the Fernandez's, was converted into a luxury triplex. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/15/Bonera.jpg" alt="">
Built by architect John Frederick Hilly for colonial merchant William McQuade in 1856, Bomera sits on a sprawling 2,150 sqm Wylde Street parcel, in landscaped grounds featuring a swimming pool.
It has five bedrooms, a grand ballroom overlooking Woolloomooloo Bay, a musician's gallery, billiards room and wine cellar.
The former stables are now a three bedroom cottage.
The listing has been some 18 months in the making.
Local Potts Point agent Jason Boon was believed to be in talks to grab the prestige listing, visiting the home in August last year (above) when he posted on Instagram.
LJ Hooker Double Bay agent Bill Malouf has since secured the listing, in conjunction with Ballard's Clint Ballard.
And they are not revealing Catelan's price desire.
 
</body></html>

Potts Point trophy Bomera officially hits the trophy home market 

<html><body>
The film director behind Mad Max and Babe, George Miller, has secured $19.8 million for the historic art deco The Metro theatre in Sydney's Potts Point which was listed with $20 million plus hopes.
ASX-listed Abacus Property Group has emerged as the buyer of one of Sydney's oldest cinemas, the historic Metro Theatre in Potts Point, but have not revealed their intentions.
Local residents had hoped it would be bought by the Sydney City Council, but Clover Moore ruled out the acquisition amid her battle with rival councillors who'd advocated the move.
It has been Miller's headquarters for more than three decades, but now redundant given his relocation to Fox Studios.
It was built in 1939 as <a href="https://www.propertyobserver.com.au/https://dictionaryofsydney.org/media/5557" target="_blank">The Minerva Theatre</a> opening with a production of Idiot's Delight. Sam Hood took photos.
Metro-Goldwyn-Mayer purchased the building in 1950 and converted to a movie theatre, renaming it the Metro Cinema with stars such as Elizabeth Taylor and Richard Burton attending premieres.
Then as a theatre it hosted performances including the 1970s musical Hair by Harry M. Miller.
<img src="https://www.afr.com/content/dam/images/g/y/x/8/m/p/image.imgtype.afrArticleInline.620x0.png/1507526409727.jpg" alt="The Metro, Potts Point, Sydney." width="620" data-src="https://www.afr.com/content/dam/images/g/y/x/8/m/p/image.imgtype.afrArticleInline.620x0.png/1507526409727.jpg">
The 2300-square-metre property at 30 Orwell Street was on the market for the first time in 35 years, but had been available for lease.
Miller had struggled with maximising its usage and potential in recent years, with various concepts floated but not implemented.
He was seeking $25 million plus at one stage for its sale.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/10/Minerva2.jpg" alt="">
In 2018, Liberal councillor Christine Forster put a motion to the council to buy the property as a town hall, similar to those in Glebe and Balmain, and could be used for film festivals, as a theatre, arts venue, function centre, bike hub, local museum and for exhibitions and meetings.
“The Metro represents a huge opportunity for the local community as it has so much heritage value and is so important to the area,” she said.
“There’s a precedent too for something like this, when we spent $15 million on buying the Tabernacle in Darlinghurst and converted it into the Eternity Playhouse.
“It would be terrific to put it into public hands for community use.”
Team Clover, comprising of councillors Jess, Scully, Philip Thalis, Robert Kok and Jess Miller voted against an outright purchase of the Metro.
Previously a spokesperson for the Lord Mayor had advised “after corresponding with the local community late last year, Lord Mayor Clover Moore forwarded the suggestion that the City of Sydney should purchase the Metro Theatre in Potts Point to City staff for consideration”.
Councillor Jess Scully, from Team Clover, sent an email to a local resident passing the buck for any purchase to the State Government.
City Hub reported she said “the Metro Theatre should also be considered within the broader context of the NSW Government cultural infrastructure strategy”.
The local resident Warren Fahey noted at the time that "we do feel the City has turned its back on us" with Potts Point a "disenfranchised part of the City of Sydney".
</body></html>

George Miller sells art deco Metro theatre in Potts Point to Abacus

<html><body>
Pepper Tree Creek Estate, one of Kangaloon's oldest properties, has been listed for sale.
The Southern Highlands country estate has hit the market with a reported price guide of $6.5 million.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/22/pepper%202.jpg" alt="">
<a href="https://www.realestate.com.au/property-acreage+semi-rural-nsw-kangaloon-130694942" target="_blank">The 30 hectare property</a> was established in 1862, around the time the early settlers of Kangaloon and Robertson areas started purchasing land.
The stone cottage, old out buildings and dry stones walls, including the quaint dairy, would have been built during this time.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/22/pepper%203.jpg" alt="">
The property at 2128 Kangaloon Road last traded around a decade ago when the buildings were run down and derelict.
A team of landscapers, builders, horticulturalists and green keepers created Pepper Tree Creek Estate, which now features six hectares of gardens known as The Terraces.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/22/pepper%204.jpg" alt="">
The original stone cottage, made of stone mined from the property, has been converted into a three bedroom home.
The old dairy now homes a single bedroom which is the bridal suite when the estate hosts weddings.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/22/pepper%205.jpg" alt="">
The wide entry space and milking bays is now the open plan kitchen, dining and lounge area and the elevated room, where the milk, butter and cream was stored, is now the bedroom.
Di Jones Southern Highlands agent Kate McCullagh is marketing the property.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/22/pepper%206.jpg" alt="">
</body></html>

Restored 1862 Kangaloon property Pepper Tree Creek Estate listed

<html><body>
The downsizing former Jacob's Creek winemaker Philip Laffer and wife Beverley are selling Daybreak, their historic Hunters Hill home.
The <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-130658154" target="_blank">Victorian Gothic-style sandstone home</a> was built in the early 1880s for the pioneering Lenehan family.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/12/hunters%20hill%203.jpg" alt="">
It has been modernised since the Laffers paid $3.2 million in 2007 and has five bedrooms and three bathrooms on 1,550 square metre, park-like grounds, with a solar-heated pool, spa and studio.
The auction is on April 4 with McGrath agent Tracey Dixon offering a $4.35 million price guidance.
This article was first published in the Saturday Daily Telegraph.
</body></html>

Hunters Hill trophy Daybreak listed by former Jacob's Creek winemaker

<html><body>
<div class="_2vba1">
The fall in Sydney real house prices is close to hitting its average downturn decline at only halfway through the average downturn cycle, a BIS Oxford Economics study shows. 
The average downturn for Sydney house prices is 14 quarters and the current downturn has progressed through six quarters to December 2018.
But real median prices – after taking out the effects of inflation – are already down 16 per cent, which means Sydney could potentially see the total real price decline exceed the typical downturn of 21 per cent. <cite class="_23SOU"> </cite>
Click here <a href="https://www.propertyobserver.com.au/images/2019/3/19/Sydney-Houses.jpg" target="_blank">to enlarge</a>.
</div>
<div class="ztzrw">
<div class="_3t7hh">
<div class="_1kIOl">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/Sydney-Houses.jpg" alt="">
<div class="_2vba1">
"So far, the period of decline in these two markets has been much shorter than the longest downturn duration and around half of their respective average downturn lengths in both the house and unit markets," said BIS Oxford Economics' Angie Zigomanis who analysed five cycles since 1965.
"It is foreseeable that the current downturn in the Sydney and Melbourne markets may have at least another year to run before reaching the cyclical trough."
</div>
<div class="ztzrw">
<div class="_3t7hh">
<div class="_1kIOl">
However he suggests the likely scenario was a flattening of prices at the end of the year, without an immediate upward recovery.
The 1980s downturn saw 34 per cent price drops over 23 quarters.
Click here <a href="https://www.propertyobserver.com.au/images/2019/3/19/Sydney-units.jpg" target="_blank">to enlarge</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/Sydney-units.jpg" alt="">
</div>
</div>
</div>
Zigomanis noted that inflation in the 1980s was higher, causing more volatile price swings whereas lower inflation now could curb deep movements.
The Sydney apartment cycle mirrors its house price cycle, with real prices down 13 per cent at the halfway mark. 
Melbourne was experiencing a more moderate price fall than Sydney, the report published by Nine Entertainment said.
Real Melbourne prices have fallen 14 per cent in six quarters compared with the historical average of 15 per cent over 11 quarters.
</div>
</div>
</div>
</body></html>

Sydney's cyclical property price downturn quicker than normal: BIS Oxford

<html><body>
The Sydney price recovery could be just one or two cash rate cuts away.
That's a real possibility based on the latest research of no-less, the Reserve Bank of Australia.
Their researchers found falling interest rates was the chief catalyst behind the huge surge in prices between 2012 and 2017.
“We find that low interest rates — partly reflecting lower world long-term rates — explain much of the rapid growth in housing prices and construction over the past few years," RBA economist Trent Saunders and RBA senior research manager Peter Tulip noted.
Their modelling of the Australian housing market sought to quantify the inter-relationships between prices, rents, construction and vacancies.
They found the building boom seen in recent years would not have been as pronounced were it not for the lower borrowing costs and higher prices prompting a supply response from developers.
Another demand factor, high immigration, helped explain the tight housing market and rapid growth in rents.
“The model estimates that the reduction in real interest rates (actual interest rates, less inflation) accounts for most of the boom in dwelling prices and a large part of the boom in dwelling investment,” said the researchers in their 35 page report.
It is not the official view of the board that sits in judgement on the first Tuesday of the month, but the insights are going to shape the timing and speed of any next move in the cash rate.
The speculation of the rate cut hit the mainstream in early this year when Shane Oliver, the chief economist at AMP Capital, raised the prospect.
Oliver noted home price weakness was at levels where the RBA started cutting rates in 2008 and 2011 and the 2015-16 property slowdown was also turned around by rate cuts in May and August 2016.
"Ongoing home price falls in Sydney and Melbourne will depress consumer spending as the wealth effect goes in reverse and so homeowners will be less inclined to allow their savings rate to decline," Oliver noted.
The RBA rate cut whisperer Bill Evans at Westpac chimed in last month expecting the Reserve Bank to cut the cash rate by 25bps in both August and November this year.
Evans noted headwinds for the housing market and activity were also apparent in developments around credit.
Evans noted there was less lending demand and supply, after concerns around falling prices and stretched affordability and lending supply being hit by new regulations and caution from some lenders in a falling market.
Evans anticipates unlike the response of the property markets in 2016 to two rate cuts that he does not expect that these two cuts will immediately stabilise housing markets.
Last week NAB's Alan Oster who said the RBA outlook for a further fall in unemployment to gradually lift wages and ultimately inflation is increasingly in doubt.
He therefore expects the RBA to provide some further support to the economy in the form of lower interest rates.
Oster anticipates in July and November. 
While the RBA research will contribute to the commentary, there's little risk that home prices will rise rapidly.
The introduction of tougher lending standards towards household expenses and outstanding debt held by individual borrowers ought make sure of this.
</body></html>

The Sydney price recovery could be just one or two cash rate cuts away

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

&nbsp;

&nbsp;

fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

&nbsp;

FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<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/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

Jonathan Chancellor

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News