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The “wide gulf” that exists between prices and rents suggests that housing in Australia is overvalued, argues Deakin University researcher and housing bubble proponent Philip Soos.
Soos points to RP Data’s most recent Buy vs Rent, which he says shows that unless you’re willing to buy in remote or unattractive locations, it’s cheaper to rent then own property.
The RP Data report found that out of 5,230 suburbs, there are 388 suburbs that are cheaper to buy than rent based on a standard principle and interest home loan. This rises to 1,031 suburbs if borrowers are willing to pay an extra $50 a week in mortgage repayments.
While a more realistic study would factor in costs such as "maintenance, council rates, water and sewerage, land tax, body corporate levies, stamp duty, and legal and conveyancing fees"  Soos says it does provide some evidence to suggest a "confirmation of overvaluation in the residential real estate sector, that is, the market price of property is significantly greater than future rents capitalised”
As further evidence of this claim, he points to the rising <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/0bd6ea4d7e0e401eca257300000473fc/dbccae23bff9983eca257b03007e58e6/bodyrich/0.1218!OpenElement&amp;FieldElemFormat=gif">ratio of real house prices to rents</a> which have increased by 64% from trough to peak (1997-2007) with some moderation recently due to falling housing prices and rising rents in the last two years.
Currently the ratio is about 160% (house prices to rents) and Soos says it serves as one of many indicators to determine possible overvaluation in the real estate sector.
“It comprises a valuable metric and thus should not be ignored,” he says.
According to Soos, this divergence between house prices and rents suggests “confirmation of overvaluation in the residential real estate sector, that is, the market price of property is significantly greater than future rents capitalised”.
Furthermore, he says it indicates the Australian property market is not operating in an efficient manner.
“Conventional economic theory stipulates that, in an efficient property market, the all-in risk and tax-adjusted cost of purchasing a property should equal the cost of renting it,” writes Soos in a column for Business Spectator.
“If buying is dearer than renting, then supposedly rational individuals will change their preference by selling, taking the profit, and renting, driving down housing prices until the cost of buying equals the cost of renting,” he says.
Soos says what is driving up the difference between house prices and rents is “debt-financed speculation”.
While rents are determined by wages and what tenants can afford to pay, capital values are driven by banks willingness to provide finance to home owners and investors “limited only by lending regulations (if banks choose to observe them) and borrowers’ ability to service the mortgage repayments”.
 
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Disconnect between rents and house prices suggests housing is overvalued: Philip Soos

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The Real Estate Institute of the ACT  (REIACT) president Michael Kumm has played down concerns about the impact of public sector job cuts on the Canberra property market.
Kunn, a 34 year veteran of the Canberra real estate market, expects that whoever wins power on September 14 will shrink the size of the civil service, but says this will be more than compensated by the large numbers of servants due to retire in the next five years.
“Around 20% of those working in the public service are due to retire over the next five years," he tells Property Observer.
“The Liberals are talking about a 12% reduction in the public service - and through natural attrition - meaning they will have to hire an additional 8% to make up the shortfall.
“The reality is that it’s not as bad as people think.”
Another positive factor he says is that whereas in years past, those that retired from the public sector would move out of Canberra, now those that retire are choosing to stay in the federal capital.
Kumm has been involved in selling Canberra real estate through more than a dozen federal elections and says that John Howard’s election win in 1996 and subsequent culling of public sector jobs, had the biggest impact on the property market over these years.
“House prices went back to 1992 prices and only started recovering when we got the Sydney Olympics and money was being thrown everywhere.
“Then between 2000 and 2010 Canberra property prices boomed; there was double digit growth every year.”
Since 2010 prices have been trending downwards.
However, according to Kumm, the public servants that John Howard sacked in 1996 that had the last laugh, using their redundancy packages to pay off their mortgages before later returning to the public service as consultants and earning bigger salaries.
This year, he says its “business as usual” for the property market.
“This year it’s very price competitive, there is plenty of interest around, and things are looking pretty good.”
Property analysts expect the <a href="https://www.propertyobserver.com.au/australian-capital-territory/canberra-property-market-likely-to-tread-water-in-election-year-but-not-without-uncertainty/2013020159081" target="_blank">Canberra housing market to tread water in the election year.</a>
 
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Concerns over public sector job losses on Canberra property market overplayed: REIACT president

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The surprise announcement by prime minister Julia Gillard this week of a September 14 federal election, setting the scene for a seven-month election campaign, has thrown the spotlight on the Canberra property market more than in previous election years.
Before the announcement, real estate agents were talking about a two- or three-month lull in property transactions, but they now face a much longer period of uncertainty with the prospect that should Tony Abbott triumph, more public servant jobs will go and spending will be reined in.
Answering questions at the National Press Club yesterday, Abbott promised there would not be Max "the Axe” Moore-Wilton style bloodletting, but did hint that jobs would go while a Budget surplus may also be back on the agenda.
Should Labor be re-elected, its abandoning of its budget surplus promise is expected to have less of an impact on the public sector job market, which augers better prospects for the Canberra housing market, heavily dependent on well-paid public servants being able to afford what is the second most expensive capital city housing market after Sydney.
Around one in four residents in Canberra are directly employed by the civil service according to census 2011 and many more in industries that service the public sector.
Certainly anybody working in the Department of Climate Change and Energy Efficiency won’t be signing any new off-the-plan contracts or applying for home loans between now and September.
Paul Powderly, ACT state chief executive at Colliers, says the concern, once the election was called this week, was that there would also be an early caretaker period announced – a period when departments can no longer lobby for fresh funding – but this won’t kick in until August.
While rhetoric from politicians about saving money and cutting jobs will be a factor, Powderly says the residential market is already supported by an overall improvement in confidence about the housing market and low interest rates.
“Prices are down and rates are at an all-time low, so people think they should get on the property wagon,” he says.
“We are seeing increased inquiry and activity at the moment, and while there will now be some caution from buyers we don’t expect a massive drop-off in activity.”
Powderly expects  a fair bit of activity in residential markets post-election, but does not expect the market to really take off again until the end of the year or early next year.
On the commercial front, he says people won’t be rushing into new commercial leases, but that things will pick up after the election.
Australian Property Monitors (APM) senior economist Andrew Wilson is also fairly optimistic about the prospects for the Canberra housing market and does not expect the election to have a significant effect, though he does have some concerns.
But he remains confident of his expectation that Canberra house prices will reach record levels in 2013 - currently just 1% off previous peaks.
APM recorded a 0.7% rise in Canberra house price over 2012, with a strong finish to the year as prices rose 2.1% over the December quarter to a median of $566,000. Unit prices rose 3.8% over the December quarter to finish the year almost where they began at $415,000.
RP Data figures released to the end of January suggest this good finish spilled into the first month of 2013 with Canberra house prices up 1.4% and units up 2.5%
Wilson tells Property Observer the fundamentals of the Canberra housing market remain sound.
“There is an underlying shortage of accommodation which keeps demand ticking over, there are low rates and always stiff competition for property, “he says.
The concern though is unemployment, which trended upwards last year and has risen to around 4%
“We need to keep an eye of public service employment, levels, which can be a dampener on activity."
In this regard, a Labor win would be better news for the Canberra property market.
Wilson says Labor no longer being wedded to a budget surplus means that monetary and fiscal policy can start working the same direction.
However, a Liberal victory and a tightening of the public purse could spell further job cuts and do to Canberra what fiscal consolidation in Queensland (and thousands of public servant job cuts) have done to the Brisbane housing market.
“The Liberals are still talking about a budget surplus, which could play on the minds of voters,” says Wilson.
One market that may be impacted by the election is the new apartment market, which according to Colliers International is already plateauing and heading towards a situation of oversupply.
Houses predominate in Canberra, accounting for about three-quarters of the housing stock, but the apartment market is on the rise.
According to the census 2011, just under a quarter of dwellings (23%) in Canberra are apartments or townhouses, this compares with about 18% of dwellings five years ago.
Apartment projects require a certain level of pre-sales to receive financing so those that have achieved enough off-the-plan sales up to now will go ahead but others will likely be placed on hold until after the election.
Ariel Pollard, director of research at Colliers International, says there are seven projects comprising 673 apartments which are yet to commence.
“They are 44% sold and will be under threat of not going ahead if pre-sales for these projects are not met and further developments are taken to market”, she says.
But projects that have been completed or under construction are selling well with 91% and 86% sales rate respectively.
Despite a slowdown in the market, Colliers International says about 559 apartments were sold in the past six months with 76% located in the inner North.
The inner north comprises 14 suburbs and spans an area from the northern foreshores of Lake Burley Griffin, around to the ridges of Black Mountain, Mount Ainslie and Mount Majura.
The total number of apartments in the inner north increased 6% to 1,972 over the final six months of 2012.
Canberra photo by Michael Renner courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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Canberra property market likely to tread water in election year, but not without uncertainty

<html><body>Leading Sydney estate agent ?John McGrath<a href="https://www.facebook.com/public/John-McGrath" target="_blank"> has listed on his Facebook page</a> the 10 reasons why he believes the residential market will be 5% to 10% higher by the end of 2013.   1. The Australian share market is recovering quickly, and this will generate (and replenish) great wealth for many Australians.  2. China is on the surge with an 8% anticipated growth rate this year (and beyond), and we will benefit more than any other country.  3. We have record low interest rates, with existing and new borrowers reaping the benefits making property more affordable. 4. We have a nationwide housing shortage and will for some time, so demand will outstrip supply in an improving sellers market. 5. Cash and term deposits are becoming far less attractive, and many people will see the time is right to switch from cash into growth assets.  6. Rents will continue to climb in the face of the housing shortage providing investors increasing yields over the next few years.  7. Self-managed super funds (SMSF) investing directly in residential property is the biggest change I’ve seen in the last 12 months 8. Luxury homes are back by 20%-40% in value and will provide great buying for the recovering professional market buyers (read <a href="/news">Palm Beach</a> weekenders are about to become mega popular again!).  9. Most experts are tipping a landslide change in federal government, which will give great confidence to the business community. 10. As all the above happens in our connected community we’ll see a surge of confidence and FOMO (fear of missing out), which will stimulate continued investment over the next three- to five-year cycle.</body></html>

The 10 reasons why Australian property prices will rise 5% to 10% in 2013: John McGrath

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The majority of borrowers (55%) expect the RBA to leave the cash rate unchanged at 3% at its monetary policy meeting on Tuesday (February 5).
But demonstrating perhaps confusion among homeowners about the future direction of interest rates, a large proportion (44%) expects the RBA to lower rates to record lows.
These were the findings of an online survey of 452 respondents carried out by mortgage broker Loan Market, who asked the question ‘What action do you think the RBA is going to take at its February meeting?’
Loan Market survey results:
<ul>
<li>Lower rates 25 bps                            35%</li>
<li>Lower rates 50 bps                             9%</li>
<li>Raise rates 25 bps                              1%</li>
<li>Leave rates unchanged                     55%</li>
</ul>
Nearly one in ten borrowers are hopeful of an unlikely 50 basis point rate cut, which would take the cash rate to an all-time record low of 2.5%
“It’s very likely the RBA will apply the same wait-and-see approach, it demonstrated throughout 2012 at its meeting next week,” says Loan spokesman Paul Smith
“Most economic indicators are within targeted ranges and it appears home owners aren’t convinced the RBA has enough evidence to lower interest rates,”
“The December rate cut certainly did help inject some confidence into areas of the economy and help spending and consumption over the holiday period. But like most interest rate movements, it takes time to assess the full impact as more data becomes available,” he says.
Smith says that these results could indicate that households do not expect the economy to grow on the heels of RBA rate cuts alone.
“Households have seen four rate cuts in the past year yet housing finance remains flat and sentiment remains quite cautious. If the government is looking to promote confidence in the economy it should look to ease concerns about the two-speed economy or home building,” he says.
 
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Majority of borrowers expect rates to remain on hold this week: survey

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Brisbane was the top performing mainland property market over January with property values up 2% to a median of $432,250, according to RP Data-Rismark.
Brisbane house values lifted 1.8% to a median of $450,000 and unit values rose 4.4% to a median of $350,500 - welcome news for Brisbane apartment investors.
Nationally, dwelling values across the eight capital cites gained 1.2% over the month to a median of $480,000 following a small drop in values in December (-0.3%) and no change in November. 
The result means that property values are now 1.8% up on annual basis. 
Since bottoming out in May last year, property values are up now up 3.1%. 
RP Data research director, Tim Lawless, says housing market conditions have started the year on a strong footing. 
“These strong January results are likely to have seen some upwards seasonal bias, however the housing market has been on a clear recovery trend since June last year. 
“Capital gains aren't likely to remain this high over the coming months, however we are likely to see the recovery trend continue through 2013.” 
“Despite the improving market conditions in January, dwelling values across the combined capital cities remain 4.6% below their 2010 peak. 
“The latest housing market data adds weight to the argument that interest rates may be at the bottom of the cycle. The Reserve Bank will be watching the performance of the housing market closely, and the positive trend in housing values will dampen calls for further interest rate cuts,” he says. 
Apart from Darwin, where the market corrected by 2.2% over January to a median of $525,000 (and is still up 8.7% year-on-year, all capital city markets recorded gains over the month. 
The other strong performing markets were Sydney, which posted gains of 1.8% to a median of $576,500 and Perth, where prices rose 1.7% to a median of $480,000.
Melbourne was the poorest performing market with prices up just 0.2% with RP Data saying that conditions remain “relatively subdued”. 
Melbourne is the only capital city housing market where values are still down year-on-year – having fallen 0.4% over the past 12 months. 
Among the smaller capital city markets, there was some good news for Hobart investors and homeowners with values up 4.5% over January and 5.3% over the quarter a median of $315,000. 
Hobart still remains the most affordable capital city market well ahead of Adelaide, where house prices rose 0.4% to $381,750. 
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Brisbane, Perth and Sydney lead 1.2% gain in property values in January: RP Data

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Mortgages lending remained at record lows over December while the major banks increased their market dominance over non-bank lenders, according to the latest RBA figures.
Housing credit advanced by banks and non-banks increased by 0.3% over December, following an increase of 0.4% over November.
Over the year to December, housing credit rose by 4.5% the slowest annual pace of mortgage lending growth for RBA data going back to 1976.
The slow growth suggests it’s not just a case of borrowers paying down their mortgages and other debts but that banks and non-banks are reluctant to lend.
“If growth in lending is strong then it suggests that credit from financial institutions is freely available, underlying demand for assets such as cars and houses is firm and that the price of credit (interest rates) is attractive,” says Savanth Sebastian, economist at CommSec.
Sebastian says little growth in property prices is one of the factors holding back borrowers from taking on fresh debt.
"The main factor underpinning the conservative approach to lending is weak growth in asset prices, especially property. Clearly you are likely to be less willing to take on a large debt load if the price in the underlying asset is barely growing, or in some cases, going backwards," Sebastian says.
Total credit provided to the private sector by financial intermediaries rose by 0.4% over December 2012, after remaining unchanged over November. Over the year to December, total credit rose by 3.6%.
Other personal credit (credit cards, personal loans) increased by 0.2% over December to be up just 0.3% over 2012 while business credit increased by 0.7% over December to be up 2.8% for the year.
Commonwealth Bank economist Diana Mousina said the figures indicate household borrowing restraint, low business appetite for debt; and deposit growth stronger than credit growth.
“The trend of sluggish credit growth reflects competing factors. Household and business balance sheets are in relatively good health and the household savings ratio is around 11%. Under normal circumstances strong balance sheets and low interest rates create a favourable environment for credit growth. However, business and consumer sentiment are subdued due to uncertainty about the outlook. This acts as a drag on credit growth,” she says.
The figures also show that non-bank lenders continue to lose ground to the banking sector.
Banks added $9.4 billion to their collective mortgage books over December, which now stand at $1, 771.5 billion ($1.77 trillion) while non-bank loan books shrunk by $2.8 billion to $151.3 billion.
Proportionally, banks have 92% of the lending market and non-banks 8%.
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Mortgage growth remains at record lows as non-banks lose market share: RBA

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The release of December data from Residex appears to confirm that Melbourne house prices probably went nowhere in 2012.
Residex reports a 1.5% rebound in Melbourne house prices in the final quarter of the year, but with house prices still down 1.4% over the year with a median value $566,000.
Unit prices dropped 1.4% over the quarter to end the year down 4.3%, with a median price of $427,000.
The Residex figures means that two data providers – Residex and RP Data – have Melbourne house prices down over 2012, while two – the Real Estate Institute of Victoria (REIV) and Australian Property Monitors (APM) have them up.
Melbourne houses
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td colspan="4" width="491" valign="top">
House price changes
</td>
</tr>
<tr>
<td width="133" valign="top">
 
</td>
<td width="114" valign="top">
Quarter
</td>
<td width="134" valign="top">
2012
</td>
<td width="110" valign="top">
Median
</td>
</tr>
<tr>
<td width="133" valign="top">
RP Data
</td>
<td width="114" valign="top">
-1.5%
</td>
<td width="134" valign="top">
-2.9%
</td>
<td width="110" valign="top">
$550,000
</td>
</tr>
<tr>
<td width="133" valign="top">
APM
</td>
<td width="114" valign="top">
+2.4%
</td>
<td width="134" valign="top">
+0.5%
</td>
<td width="110" valign="top">
$526,000
</td>
</tr>
<tr>
<td width="133" valign="top">
REIV
</td>
<td width="114" valign="top">
+7.8%
</td>
<td width="134" valign="top">
+4.7%*
</td>
<td width="110" valign="top">
$555,000
</td>
</tr>
<tr>
<td width="133" valign="top">
Residex
</td>
<td width="114" valign="top">
+1.54%
</td>
<td width="134" valign="top">
-1.41%
</td>
<td width="110" valign="top">
$566,000
</td>
</tr>
</tbody></table>
Melbourne units
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td colspan="4" width="491" valign="top">
Unit price changes
</td>
</tr>
<tr>
<td width="133" valign="top">
 
</td>
<td width="114" valign="top">
Quarter
</td>
<td width="134" valign="top">
2012
</td>
<td width="110" valign="top">
Median
</td>
</tr>
<tr>
<td width="133" valign="top">
RP Data
</td>
<td width="114" valign="top">
-2.7%
</td>
<td width="134" valign="top">
-2.5%
</td>
<td width="110" valign="top">
$435,000
</td>
</tr>
<tr>
<td width="133" valign="top">
APM
</td>
<td width="114" valign="top">
+1%
</td>
<td width="134" valign="top">
+2.2%
</td>
<td width="110" valign="top">
$391,000
</td>
</tr>
<tr>
<td width="133" valign="top">
REIV
</td>
<td width="114" valign="top">
+4.2%
</td>
<td width="134" valign="top">
+1.3%*
</td>
<td width="110" valign="top">
$456,000
</td>
</tr>
<tr>
<td width="133" valign="top">
Residex
</td>
<td width="114" valign="top">
-1.37%
</td>
<td width="134" valign="top">
-4.28%
</td>
<td width="110" valign="top">
$427,000
</td>
</tr>
</tbody></table>
*The REIV figures compare December quarter 2012 figures with December 2011 quarter figures. APM and RP Data are annual changes over 2012.
Averaging out the four property data providers indicates, as suggested by <a href="https://www.propertyobserver.com.au/victoria/melbourne-residential-property-market-on-the-mend-property-observer-navigates-the-muddling-median-maze/2013013059037">Property Observer before publication of the Residex figures</a>, that property prices in Melbourne hardly moved in 2012.
The average house price change for Melbourne is 0.2% over 2012 while units fell 0.8%.
Residex had Sydney as the top-performing detached house market over 2012 (up 4.91%) with Perth the strongest performing unit market up 10.89%.
Residex chief executive John Edwards says that overall, 2012 was a better year for Australian property than the previous 12-month period.
“Additionally, the past few weeks will have helped consumers gain higher levels of optimism as there has been positive news surrounding the US economy and little negative news out of Europe. Lifted confidence should flow into higher levels of housing market activity,” says Edwards.
“On the other hand, the floods currently being experienced in Northern NSW and Queensland will be having a dampening influence on these markets. Some slowing in the economy will drive unemployment, which will also have some moderating impacts. However, we shouldn’t get too carried away with moderate increases in unemployment as we are coming off all but full employment.
“On an Australia wide basis, capital growth in the house and land market achieved its best performance in the last 18 months. Weekly rentals also increased, with rentals for houses and land maintaining real value while units outperformed inflation by about 3%. Rental increases are good news and much needed as the sector’s capital value is either stagnant or just maintaining real value. This should be expected to continue,” he says.
<a target="_blank" href="https://blog.residex.com.au/wp-content/uploads/2013/01/Australian-Property-Market-Statistics-December-12.jpg">The full set of Residex results can be found here.</a>
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Melbourne houses and units end year in the red: Residex

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Sydney house and unit prices rebounded in the final quarter of 2012 to finish the year at record highs, according to full year figures from Australian Property Monitors (APM). 
Sydney house prices rose by 2% over the quarter to be up 3.4% for the year with the median price rising to a record $656,415, the first time the median price has been above $650,000 and are now $10,000 above their previous peaks.
Canterbury-Bankstown was the top performing region with the median house price increasing 11.5%, however prices did fall on the lower north shore by -0.4%.

Sydney unit prices gained 2.3% over the quarter to be up 5.6% for the year and also posted a record median price of $475,314.
The rises for the quarter were based on upwardly revised September quarter figures. 
APM revised the Sydney’s median house price for the September quarter from $641,890 to $643,578, while the median unit price was revised from $458,562 to $464,572. 
Australian Property Monitors senior economist Dr Andrew Wilson says Sydney again “illustrated the resilience of its housing market”. 
Wilson says the Sydney market revival is being driven from the middle upwards rather than from the top down with changes to first-home buyer grants in 2012 bringing forward demand while change-up buyers also become active.
“We are seeing a lot of activity in the middle price section of the Sydney market between $500,000 and $900,000, and that’s what is pushing up those median house prices to record levels," he said in an interview on AFR TV.
Wilsons says the prestige market in Sydney, which has to date been the ‘weak link” in the market, may also start to grow in 2013.
<img alt="apmjan31" src="/images/stories/2013/01/apmjan31.jpg" width="470" height="294">
Nationally, house prices rose by 1.9% over the quarter to finish the year in positive territory – up 2.1% to a median of $542,299. 
Unit prices increased by 1.6% over the quarter to be up 2.4% for the year with a median price of $417,123. 
September quarter figures were also revised. 
The median house price was revised downward from $533,480 to $532,274, while unit prices were upwardly revised from $406,415 to $410,508. 
All capital cities recording house price gains over the quarter – the first time this has happened since March 2010. 
“I think it is no coincidence that we have historically low interest rates and we are just starting to see a consistent rise in confidence in housing markets," says Wilson.
But he tempered this by saying capital cities and sub-markets are still performing at different levels. 
“We are still seeing the fractured type of outcome."
Sydney is the only capital city market where house prices are above their previous peaks, but APM expects that based on current trends, Perth, Canberra and Darwin will achieve record house prices in 2013. 
Wilson says the property market rebounded “as expected in 2012” on the back of the “general improvement in affordability and confidence” due to record low interest rates fuelling increasing buyer activity. 
Excluding the volatile Darwin market, Perth was the top-performing capital city market over the year, with house prices up 6% over the quarter and unit prices up 6.1% to medians of $560,780 and $365,132 respectively.
Perth’s September median house price was upwardly revised from $537,237 to $547,160, and its median unit price upwardly revised from $348,293 to $352,961. 
Wilson says the Perth price rises are being driven by around 1,500 people arriving each week in Perth and by a tightening rental market and rising rents, pushing more people into the house-buying market. 
Melbourne house prices gained 2.5% over the quarter to end the year just in positive territory – up 0.5% to a median of $526,281 with units up 1% for the quarter but still down for the year at -2.2% and a median of $390,651. 
Brisbane house prices increased by just 0.3% to be down 0.5% for the year (median of $433,302) but Wilson said this small quarterly gain was significant “as it signalled a revival in activity after a lengthy period of price falls”.
Of some concern to investors would be the Brisbane unit market – the epicentre of dozens of new apartment projects – where prices fell 2.7% over the quarter to be down 3.2% for the year, making it the worst performing house or unit market for the year. 
Adelaide continues to remain the most affordable mainland capitals with as median house price of $432,309.   “Looking ahead in 2013 activity will depend on the direction of local economies as it is no coincidence that the better performing housing markets in 2012 reflected better performing economies - particularly in regard to unemployment levels,” says Wilson.
“With a rising share market and an improving international outlook, the general economic landscape and prospects remain optimistic which is unequivocal good news for Australia’s recovering housing markets,” he says.
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'Resilient' Sydney house and unit prices reach record highs in 2012: APM

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Investigations into the collapse of mortgage lender Wickham Securities by administrators PPB Advisory have uncovered what appears to be a bogus $10.8 million cashflow statement.
The cashflow statement is one of a number of apparent discrepancies and irregularities uncovered by PPB Advisory, which is also still waiting to receive a copy of the company’s books and records from Wickham auditor Brian Kingston.
A January 29 creditors' report issued by PPB Advisory says that Sandhurst Nominees, the trustee representing <a href="/news">Wickham Securities noteholders</a>, requested a cashflow forecast following concerns about the company’s cashflow position last year.
Wickham Securities sent an email to Sandhurst Nominees on November 30 disclosing cashflow forecasts to February 2013 along with a bank confirmation statement “apparently” issued by the Bank of Queensland and fund manager DDH Graham Limited showing a bank balance of $10,779,835.
PPB Advisory subsequently contacted the Bank of Queensland following its appointment to stop all debit transactions and was referred to DDH Graham Limited, which advised that the “statement dated November 30 which you have forwarded to me from the same named account showing a balance of $10,779,835.47 as of 30 November 2012 has not been generated by DDH Graham Limited”.
The PPB Advisory creditors' report says it has “not yet established who provided this document, however that amount was not available in the company’s bank accounts”.
As enquiries continue, no claim has been made in the creditors' report of any wrongdoing by DDH Graham Limited or Bank of Queensland.
PPB Advisory has also noted redemptions totalling $395,000 were paid between December 1 and December 20 from – just before Wickham Securities was placed in administration on December 21.
It says these redemptions are being investigated further.
The creditors' report also reveals that the administrators have yet to receive the company’s books and records from auditor Brian P. Kingston, who signed off on the June 30 annual accounts issued on September 12 last year, which he said were a fair and true view of the financial position of the company.
Wickham Securities should have provided the company's books and records to PPB Advisory by January 4.
In addition to not yet sending the books and records, Kingston has also not sent the administrators company data he says he has on his laptop, telling PPB Advisory his laptop  is being repaired.
PPB Advisory says it will be investigating the audit opinion provided by Kingston to see if it complies with auditing standards.
Other apparent irregularities included in the January 29 creditors report include:
<ul>
<li>Doubtful debt provisions of $625,000 for 2010, 2011 and 2012 that are not consistent with loan balances as of June 30 for each year;</li>
<li>Directors of the company have not complied with their statutory obligation to assist the administrators with their tasks;</li>
<li>Many Wickham borrowers are already subject to debt recovery efforts from the first mortgagee, but no records is provided in the company ledger to show the amounts owing; and</li>
<li>The administrators have found funds totalling $37,419 in five separate bank accounts that  have been transferred into the administration bank account.</li>
</ul>
The creditors' report confirms that ASIC has commenced action against Wickham Securities founder Bradley Sherwin, his wife Deborah Sherwin and eight related companies seeking orders to freeze bank accounts and appoint receivers.
The eight related businesses, which include Sherwin Financial Planners Pty Ltd, were all placed in administration on January 24, with administrators from the firm of Taylor &amp; Woodings appointed.
According to the Brisbane Times, Sherwin Financial Planners was once a major sponsor of the Brothers Junior Rugby League Club, with Sherwin offered $3,300 in spotter fees for any client it referred.
The Australian Financial Review recently reported that former high-profile NRL agent Jim Banaghan once promoted Sherwin's services, but that none of his clients chose to invest in the products he offered.
A Wickham Securities creditors' meeting has been scheduled for February 6, where creditors will vote on the fate of the company. 
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Administrators find $10.8 million black hole in Wickham Securities 

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Larry Schlesinger

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