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So, what is better training to buy a home - business management training where you learn about budgets and goals and organisational structure, or crisis management where you have to deal with threat management, stress and fatigue and on-the-spot decision making?
There’s no doubt that you need to bring a knowledge of budgets and cash-flow and goal-setting to the home-buying process.
They are the skills that help offset the emotion that can often cloud that process.
But once you’ve laid a solid plan, and once you’ve found a home that fits your well-thought-through goals and it’s time to negotiate to buy that home – that’s when crisis management comes into play.
It may seem strange to describe buying a home as a crisis, but it is a situation full of uncertainty and unexpected threats.
As a homebuyer you’re in a position of little knowledge or power and you can often lack the ability to read the signals being put out by people who are experts in their field.  If you get it wrong, it can be potentially disastrous – you can end up with the wrong home (or no home) or end up paying too much for a home.
It’s how you deal with uncertainty that makes all the difference when you’re buying a home. If you’re used to having everything sorted out and tabulated and double-checked, then dealing with the unknowns associated with negotiating on a home can feel pretty unnerving.
We think negotiating on a home is a bit like being an airline pilot or a firefighter – you have to anticipate the worst, while staying calm, and be constantly on the lookout for information and signals that will tell you what to do next.
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="308" style="text-align: center;">
Business Management Concepts
</td>
<td valign="top" width="308" style="text-align: center;">
Crisis Management Concepts
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Budgets
</td>
<td valign="top" width="308" style="text-align: center;">
Understanding Human Error
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Goals
</td>
<td valign="top" width="308" style="text-align: center;">
Situation Awareness
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Organisational Structure
</td>
<td valign="top" width="308" style="text-align: center;">
Error Chain
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Synergize
</td>
<td valign="top" width="308" style="text-align: center;">
Threat and Error Management
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
HR
</td>
<td valign="top" width="308" style="text-align: center;">
Pilot, Co-Pilot and Crew Concept
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Technology and IT
</td>
<td valign="top" width="308" style="text-align: center;">
Checklisting
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Marketing
</td>
<td valign="top" width="308" style="text-align: center;">
Understanding Cultural Differences
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Win-Win
</td>
<td valign="top" width="308" style="text-align: center;">
Communications
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Training
</td>
<td valign="top" width="308" style="text-align: center;">
Stress and Fatigue
</td>
</tr>
<tr>
<td valign="top" width="308" style="text-align: center;">
Sales
</td>
<td valign="top" width="308" style="text-align: center;">
Decision Making
</td>
</tr>
</tbody></table>
 
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Here are some of the aspects of crisis management that apply equally to negotiating on a home:
Situation awareness - You need to know who to deal with in the negotiating process and who your competitors are, and you need to focus on your goal without being distracted by trivial issues.
At James, we always have two advocates negotiating, one to oversee the negotiation, and another to attend to all the nuts and bolts of the negotiation. That gives us the overview of the situation that means we can focus on the process.
Here are some examples of a lack of situation awareness:
<ul>
<li>
Negotiating with one agent when somebody else buys through another agent
</li>
<li>
Focussing only on hiding your identity from the agent so he doesn’t know you will bid at auction only to see it sold beforehand without you being contacted
</li>
<li>
Talking to agents on many matters e.g. what homes you last visited and liked – that will give a clear guide to your capacity to pay for this current home.
</li>
<li>
Negotiating hard and getting the price going down but forgetting about another buyer who comes in from the side and takes the prize
</li>
<li>
Finding a minor problem (like some minor water damage) in the dream home and turning it into a major issue and not buying. Another version is reading a building inspection report as negative when its actually positive when compared to others.
</li>
<li>
Listening to a lawyer talk about a very negative clause and changing your mind on buying only to find that lawyer includes that clause in all their contracts as well, and sees it as no big deal.
</li>
<li>
Extreme cases, but it happens more often than many sellers think – buyers refusing to buy a home because they “hate” the agent –forgetting they are not living with the agent after they purchase.
</li>
</ul>
Understanding human error – Nobody gets it exactly right always – not even us! The point is to recognise that this can and does happen (on all sides) and when an error is recognised that you have a plan to rebound from that to your advantage.
Dealing with the error chain – In plane crashes it is rare that one thing causes a crash, it is more often a chain of events. It’s the same when it comes to homebuying disasters.
Here are a couple of examples:
<ul>
<li>
Under spousal pressure – under work pressure – under agent pressure – no time to make the right decisions. You pay too much – and the result is an unhappy family
</li>
<li>
You have no plan – no advice – no process – no due diligence – no checks or validation. You end up with the wrong home – and the result is an unhappy family
</li>
</ul>
Make sure you don’t get caught up in a chain or errors that lead to a disastrous outcome. Our job can simply be to break the chain before the results become catastrophic.
Threat and error management - Good knowledge, good systems or processes, good training, good advice and good management break the Chain of Errors – which is what you need to do.
Some key threats in good home buying:
<ol>
<li>
You
</li>
<li>
Other Buyers
</li>
<li>
The Selling Agent
</li>
<li>
Your Buying Agent
</li>
<li>
Market Movement
</li>
<li>
The Seller
</li>
<li>
The Targeted Home
</li>
</ol>
One solution is to manage “exact valuation errors” (where you miss on something you should have bought for a few dollars more) we developed the control price system or range of values which replaced the outdated  “one price valuation with one willing buyer and one willing seller” concept.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.  This article was orignally published on Property Observer on June 27, 2013.
 
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maljames-vHwm28JUAa

The 7 key threats to good home buying: Mal James

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So, what is better training to buy a home - business management training where you learn about budgets and goals and organisational structure, or crisis management where you have to deal with threat management, stress and fatigue and on-the-spot decision making?
There’s no doubt that you need to bring a knowledge of budgets and cashflow and goal-setting to the homebuying process. They are the skills that help offset the emotion that can often cloud that process.
But once you’ve laid a solid plan, and once you’ve found a home that fits your well-thought-through goals and it’s time to <a target="_blank" title="Posts tagged with Negotiate" href="https://marketnews.com.au/tag/negotiate/" rel="tag">negotiate</a> to buy that home – that’s when crisis management comes into play.
It may seem strange to describe buying a home as a crisis. But it is a situation full of <a target="_blank" title="Posts tagged with uncertainty" href="https://marketnews.com.au/tag/uncertainty/" rel="tag">uncertainty</a> and unexpected threats. As a homebuyer you’re in a position of little knowledge or power and you can often lack the ability to read the signals being put out by people who are experts in their field.  And if you get it wrong, it can be potentially disastrous – you can end up with the wrong home (or no home) or end up paying too much for a home.
It’s how you deal with uncertainty that makes all the difference when you’re buying a home. If you’re used to having everything sorted out and tabulated and double-checked, then dealing with the unknowns associated with negotiating on a home can feel pretty unnerving.
We think negotiating on a home is a bit like being an airline pilot or a firefighter – you have to anticipate the worst, while staying calm, and be constantly on the lookout for information and signals that will tell you what to do next.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0" frame="box"><tbody>
<tr>
<td valign="top" width="308">
Business Management Concepts
</td>
<td valign="top" width="308">
Crisis Management Concepts
</td>
</tr>
<tr>
<td valign="top" width="308">
Budgets
</td>
<td valign="top" width="308">
Understanding Human Error
</td>
</tr>
<tr>
<td valign="top" width="308">
Goals
</td>
<td valign="top" width="308">
Situation Awareness
</td>
</tr>
<tr>
<td valign="top" width="308">
Organisational Structure
</td>
<td valign="top" width="308">
Error Chain
</td>
</tr>
<tr>
<td valign="top" width="308">
Synergize
</td>
<td valign="top" width="308">
Threat and Error Management
</td>
</tr>
<tr>
<td valign="top" width="308">
HR
</td>
<td valign="top" width="308">
Pilot, Co-Pilot and Crew Concept
</td>
</tr>
<tr>
<td valign="top" width="308">
Technology and IT
</td>
<td valign="top" width="308">
Checklisting
</td>
</tr>
<tr>
<td valign="top" width="308">
Marketing
</td>
<td valign="top" width="308">
Understanding Cultural Differences
</td>
</tr>
<tr>
<td valign="top" width="308">
Win-Win
</td>
<td valign="top" width="308">
Communications
</td>
</tr>
<tr>
<td valign="top" width="308">
Training
</td>
<td valign="top" width="308">
Stress and Fatigue
</td>
</tr>
<tr>
<td valign="top" width="308">
Sales
</td>
<td valign="top" width="308">
Decision Making
</td>
</tr>
</tbody></table>
Here are some of the aspects of crisis management that apply equally to negotiating on a home:
Situation Awareness - You need to know who to deal with in the negotiating process and who your competitors are, and you need to focus on your goal without being distracted by trivial issues. At James, we always have two advocates negotiating, one to oversee the <a title="Posts tagged with negotiation" href="https://marketnews.com.au/tag/negotiation-2/" rel="tag">negotiation</a>, and another to attend to all the nuts and bolts of the <a title="Posts tagged with negotiation" href="https://marketnews.com.au/tag/negotiation-2/" rel="tag">negotiation</a>. That gives us the overview of the situation that means we can focus on the process. Lack of Situation Awareness Examples
<ul>
<li>
Negotiating with one agent when somebody else buys through another agent
</li>
<li>
Focussing only on hiding your identity from the agent so he doesn’t know you will bid at auction only to see it sold beforehand without you being contacted
</li>
<li>
Talking to agents on many matters eg what homes you last visited and liked – that will give a clear guide to your capacity to pay for this current home.
</li>
<li>
Negotiating hard and getting the price going down but forgetting about another buyer who comes in from the side and takes the prize
</li>
<li>
Finding a minor problem (like some minor water damage) in the dream home and turning it into a major issue and not buying. Another version is reading a building inspection report as negative when its actually positive when compared to others.
</li>
<li>
Listening to a lawyer talk about a very negative clause and changing your mind on buying only to find that lawyer includes that clause in all their <a title="Posts tagged with contracts" href="https://marketnews.com.au/tag/contracts/" rel="tag">contracts</a> as well, and sees it as no big deal.
</li>
<li>
Extreme cases, but it happens more often than many sellers think – buyers refusing to buy a home because they “hate” the agent –forgetting they are not living with the agent after they purchase.
</li>
</ul>
Understanding Human Error – Nobody gets it exactly right always – not even us! The point is to recognise that this can and does happen (on all sides) and when an error is recognised that you have a plan to rebound from that to your advantage.
Dealing with the Error Chain – In plane crashes it is rare that one thing causes a crash, it is more often a chain of events. It’s the same when it comes to homebuying disasters.
Here are a couple of examples:
<ul>
<li>
Under spousal pressure – under work pressure – under agent pressure – no time to make the right decisions. You pay too much – and the result is an unhappy family
</li>
<li>
You have no plan – no advice – no process – no due diligence – no checks or validation. You end up with the wrong home – and the result is an unhappy family
</li>
</ul>
Make sure you don’t get caught up in a chain or errors that lead to a disastrous outcome. Our job can simply be to break the chain before the results become catastrophic.
Threat and Error Management Good knowledge, good systems or processes, good training, <a title="Posts tagged with good advice" href="https://marketnews.com.au/tag/good-advice/" rel="tag">good advice</a>and good management break the Chain of Errors – which is what you need to do.
Some key Threats in Good Home Buying
<ol>
<li>
You
</li>
<li>
Other Buyers
</li>
<li>
The Selling Agent
</li>
<li>
Your Buying Agent
</li>
<li>
Market Movement
</li>
<li>
The Seller
</li>
<li>
The Targeted Home
</li>
</ol>
One Solution: To manage “exact valuation errors” (where you miss on something you should have bought for a few dollars more) we developed the Control Price System or Range of <a title="Posts tagged with values" href="https://marketnews.com.au/tag/values/" rel="tag">Values</a> which replaced the outdated  “One Price Valuation with one Willing Buyer and one Willing Seller” concept.
Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Key aspects of crisis management to help the homebuying process: Mal James

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Is this a price spike or a stepping stone to a new price level?
There is little doubt that Melbourne's $1 million-plus market has been seeing increased activity either side of Easter, and that its strength is filtering into the $3 million-plus top end in noticeable ways.
The clearance rate for Inner Melbourne and Bayside’s $1 million-plus property was 74% on the 38 auctions we covered. Bidderman, our bidders per auction measurement, was back up at 1.8.
Is this a price spike, after which we go back to “more-normal” market? Or is this a stepping stone on the way to another more sustained “new level” of price?
Interest rates and the dropping dollar certainly appear to be accentuating the increased demand at the top end. We have had minor but noticeable increases in enquiry from overseas clients.
In Malvern, an expat is believed to have bought 4A Mayfield Avenue via an expression of interest. This property was on the market quietly late last year and had a nibble at $5 million but was not bought. It has now sold for close to $5.5 million. As the dollar drops further we are likely to see more cases of expats buying back in to the Australian top end market, pushing prices up still further.
Other evidence of a strengthening market is the increase in $1 million-plus sales in the "B" suburbs of Balwyn North, Box Hill, Beaumaris and Bentleigh that fringe the more-traditional blue chip suburbs.
When you see sales improving in these suburbs you know the top end market generally is improving because buyers start moving there when they can no longer afford the blue chip suburbs. The reverse happens when a market is falling, as fringe buyers move back from these fringe suburbs into the blue chip suburbs.
We're also seeing buyers becoming more anxious about missing out on a home, and sometimes insisting on buying anything - even if it is not really suitable for their needs. We believe these kinds of panicky purchases can lead to poor long term financial and/or emotional outcomes. Over the long term, any market fluctuations that might happen while you're waiting for the right home, will be more than evened out by the better outcomes - financially and emotionally.
Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.

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Melbourne suburbs see more buyer activity as prices jump in blue chip areas: Mal James

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Clearance rates were strong in inner Melbourne and Bayside's million-dollar-plus property market last weekend, with an overall 75% on the 36 auctions we covered. But bidder per auction rates were lower - at 1.6 bidders - compared to around 2 for much of this year.
Boroondara had a solid weekend with several strong sales, among them a family home on a huge 1600 square metre block with pool and tennis court at 25 Wimba Ave, Kew, where three bidders took the opening vendor bid of $3.6m to a final result of $4,105,000. 
Port Phillip had meagre pickings of just 9 $1 million plus auctions this weekend, and there was little of the excitement we have been seeing recently with the auctions at St Vincents Place and 93 Richardson Street in Albert Park a couple of weeks ago. This week's auction of 115 Richardson Street showed that buyers are less emotionally attached to an Edwardian facade than a Victorian. The narrower frontage probably didn't help either. The property passed in at $1,835,000, and sold soon after for around $1,850,000.
In Brighton, there was a buzz around the auction at 52 Cole St, an attractive 1920s brick home in the Golden Mile. With 4 bidders, the opening bid of $1,575,000 was quickly taken to the final sale price of $2,055,000. 
But some of the biggest action we've been seeing lately has been away from the auction arena. We have bought several off-markets over the past couple of months - many of them in the above $3 million price range. And there are many others sitting quietly in the wings. 
In Port Phillip  off-markets are available in Harold Street, Middle Park, in Park Road, Middle Park as well as a unique terrace in Esplanade East, Port Melbourne. Two of the three will stay as off-markets until they are sold, while the other will come onto the market later in the year if it is not sold soon.
There are many off-markets quietly for sale at the moment around Brighton and further south, including a couple of family homes in North Brighton between $2 million and $4 million, two larger properties around $4 million in the Hampton/Brighton beach area, one in the Castlefield estate in the early $1 millions, and land for between $2 million and $3 million in Brighton’s Diamond K.
In Hawthorn, offers in the high $3 millions are being considered for a large family home in the Anderson Park area, and a large 1920s home in Kew is also available in the early $3 millions.
Selling off-market, without any advertising or open-for-inspections, is usually more common when the market is floundering. That's not exactly the case in 2013. Instead it seems that some vendors are taking advantage of the livelier market to ride on the back of another sale in their area, hoping the agent can persuade the losing bidders to look at their home and conduct a sale without any fuss or fanfare.
Off-markets can work well for both the vendors and the buyers, but there are traps for inexperienced players. Just because a sale is quiet doesn't mean it's a good home. Buyers need to be careful to do their due diligence on an off-market home, and be clear on the value of the home, because you won't get a chance to validate the value as you would at an auction.
Last week I noted it's taken more than three years, but Melbourne's Inner and Bayside million-dollar-plus property market is pretty much back to the peak we saw last in April 2010.. 
Even B- and C-grade homes are back to their 2010 price highs. And A-grade properties are selling for even a tad better than they did back in 2010, partly because there's still such a shortage of them. It's a pretty good time to be selling C-grade properties right now, because not many are being left on the shelf.
The overall clearance rate for million dollar plus Melbourne was 69%, with our bidder per auction measurement, Bidderman, still strong at 2.
What we're seeing this year is bidders willing to stick their hands up at auction and get amongst it. It's quite unlike last year, when everyone thought the smart idea was to wait and try to buy cheaply after a pass-in.
But we're also starting to see more properties being sold before auction, with some buyers trying to avoid the competition from other bidders. One recent example was 123 Prospect Hill Road Camberwell, a well-presented, smaller period home, adjacent to Camberwell High. A hopeful buyer for this property, which was quoted initially around the $1.2 million – $1.3 million mark, put in an early acceptable offer, possibly hoping to head off an auction. But it triggered instead an early auction on Thursday night, with five bidders attending. The final result is believed to be over $1.6 million.
The $3 million-plus market is also still lively. The fact that no less than 12 under-bidders missed out on the three properties in St Vincent Place over the last few weeks shows there is still plenty of money burning a hole in those pockets. Some of it may have gone to the auction this weekend of 49 York Street, St Kilda West, which sold under the hammer with four bidders for $3.6 million. 
So what will we see from here on?  After a balmy autumn weekend, we are about to head back into winter and winter in Melbourne often coincides with reduced property numbers on the market, as many vendors prefer to hold off selling their homes until spring. 
If property numbers remain low and buyer demand remains higher through the winter months, we may see continued increases in the number of bidders at auctions, such as we have seen so far this year. The real test of whether the increased ‘warmth’ we have seen is sustainable won't come until stock levels increase.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Melbourne auction scene may see rise in bidders in coming months: Mal James

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We got a letter recently from a woman who wanted to engage us to buy a family home, but whose husband was sceptical about whether it would be worthwhile.
“My husband says I am crazy to think about engaging a James Buyer Advocate when all deals are about is 'he who has the most money wins',” she wrote.
The idea that whoever has the most money always wins the deal is a common line of thinking – but it’s not actually true.
Over the last five buying weeks in a very competitive market in early 2013, we have bought 90% of the 22 homes we have gone after at auction and private sale and expressions of interest, the large majority of which have been over $2 million.
That figure should be balanced with the fact we have pursued less than 5% of the more than 300 homes we have assessed – which is the time to say no to price. So these were properties we and our clients were confident were worth the price we felt they were going to achieve.
But in each of these negotiations there were others who were also prepared to pay around that price.
So – are we just lucky that we were hired by the people who had the most money on almost every home?
No. The truth is that most buyers have around the same resources when they go after a home. Most people looking at $3 million homes have got around $3 million to spend, and most $5 million homes have $5 million buyers looking at them and so on.
So if buyers for a particular home are generally prepared to commit around the same resources, then the argument that the one with the most money always wins doesn’t quite hold water.
In fact, in our experience in buying over 1000 family homes, how much money you have is around number 7 in terms of what determines whether you get to buy the home you really want.
Here are the others:
No. 1 – Relationships
Successful deals depend on your relationships with the agents you are dealing with – how long you have known them, whether they “own” you or whether you are “owned’ by another agent, and whether you have a house to sell yourself.  Many of our relationships with agents are good, solid, professional ones that are into their second decade. You as a buyer may struggle to make up the ground against a competent advocate or a more qualified buyer with one or two open for inspections, a phone call and an email or two – no matter how smooth or smart you are. Off-market sales are further evidence of the need for good relationships.
No 2 – Preparation
What do others think the home is really worth i.e. other agents, the vendor, and the market? Who is your real competition? What are the issues connected to this home – our favourite catch cry is “no surprises in negotiations”. Buying a home is all about doing the preparation. Not to mention legal, council, architectural and building inspections and so on.
No 3 – Understanding Processes
Rarely does anything run entirely to a plan. You need to be able to second-guess what may happen in a<a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with negotiation" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/negotiation-2/">negotiation</a>. If you don’t know how the other side works then you won’t know when to zig and when to zag in that very real game that is “dealing with agents”. The number of buyers who think buying a home in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Top End" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/top-end/">Top End</a>Melbourne is the same as buying at a lower price range or in a different area is surprising. Normally it takes those buyers a few misses before they get an idea of how things really work. At the <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Top End" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/top-end/">Top End</a> when good stock is tight this can mean years of searching, or worse – missing out on what you really want.
No 4 – <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Clarity" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/clarity/">Clarity</a> of Purpose
When the going gets tough you need have the mindset to get going – especially on the good homes in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with inner melbourne" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/inner-melbourne/">Inner Melbourne</a>. You need to have a clear focus on your desired outcome. Determination will win out over money any day – it’s the same in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with inner melbourne" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/inner-melbourne/">inner Melbourne</a> home buying as it is in life. And for many, Clarity can only come with assistance and guidelines.
No 5 – Strategy
In a number of deals we had exactly the same resources as the other side. Sometimes they were also represented by advocates, but their strategies resulted in missing out on the purchase – especially when it came to situations like boardroom auctions. We have been successful in the last dozen or so boardroom auctions, ranging in amounts from $2m to over $10m. Why is that? It can’t be money alone, given that we have faced more than 30+ opponents during that time. Our clients can’t have had more money than all of them. It’s the same with Expressions of Interest. If you enter an EOI negotiation thinking it’s just a matter of opening your chequebook that is naivety in the extreme. And if you think that strategy at auction is irrelevant – let’s be clear: having bought hundreds of homes at auctions, I can tell you absolutely that that is a false statement.
No 6 – Will and <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with nerve" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/nerve/">Nerve</a>
Many people could make the putt Adam Scott made to win the Masters – but how many would have known how to get there and hold their nerve on the once-in-a-lifetime opportunity, on that specific green and at that specific time, when there was no second chance?  In home-buying, there may be another, but the fight will still be as hard and the prize won’t be the same.
Our clients hold their nerve – they do so through clarity and through natural inner strength. This happened in two recent high profile boardroom auctions, and at an auction in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Albert Park" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/albert-park/">Albert Park</a> last Saturday when our clients held their nerve at $4.3 million in front of nearly 300 people with three bidders over $4 million proving the true market<a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with value" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/value/">value</a> against the quote of $3 million.  Experience in these situations is worth more than money.
No 7 – Money
How much money you have is important. And yes if you’re prepared to spend $5m on a $3m home then you will often buy it – but the chances are you won’t keep that $5m for long if you make too many decisions like that.
Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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The buyer with the most money doesn't always win: Mal James

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So the Melbourne market has started hot and the pressure is on to make a decision – and make it quick.
There’s a home! Buy it! Deal done – phew!
If that sounds like you, you might want to consider three key issues:
1) Were you born smart or were you born lucky?
2) Are all homes the same i.e. are all investments good?
3) What do you base your actions on?
In answer to the above, I’ve always subscribed to the theory it’s better to be lucky than smart.
And, in answer to point 2, if you think all homes are the same, then you had better be lucky because that’s not smart.
Which brings me to point 3 – your actions. What makes you do what you do?
If you’re like me then a lot of what you do is habit – you follow a routine, even if it’s not that good for you. My after dinner routine goes something like this: around 8.00pm I feel like a chocolate – I tell myself that I’m a bit overweight and that chocolate is not helping me, but then I go to the fridge and get a chocolate and then I eat it. I feel good for a short time and then...
I’ve received a cue, I’ve made a decision, I’ve acted and I have achieved an outcome. But it’s a routine decision rather than a good one.
Is making a decision on buying a home for you much different from making a decision on eating a chocolate?
It goes like this: you receive a cue (that look from across dining room table when there simply isn’t enough room for your growing family) – you follow a routine (hop on the internet, ring your bank manager) and you seek a reward (sometimes that reward results in more <a href="https://marketnews.com.au/tag/children/" rel="tag" title="Posts tagged with Children" target="_blank">children</a>, but that’s another story).
So back to where we started, the Melbourne market has started hot and, oh my god, it’s time to panic.
Is there a better way?
The answer is undeniably – yes!
For you to act, you first of all have to make a decision. But it’s the quality of the decision that will determine the quality of your outcome.
So how is a quality decision made? Is it based purely on information?
To buy <a href="https://marketnews.com.au/tag/property/" rel="tag" title="Posts tagged with Property" target="_blank">property</a> in Melbourne’s $3m-plus segment you certainly do need quality information – although that can be hard to find in this secret world where almost everything is undisclosed.
But even if you do have access to quality information, is that all there is to buying a home well?
All information alone does is help you make an intuitive decision.
For many people, their whole life is based on intuition. Intuition is what they rely on to make decisions, because no better conduit is in play. And guess what, most of those types of decision-makers live in the outer <a href="https://marketnews.com.au/tag/suburbs/" rel="tag" title="Posts tagged with Suburbs" target="_blank">suburbs</a> – cruel but true.
Intuition in home buying, like anything else, can be brilliant – but it can also be a disaster.
Which is why, as you get older, you tend to rely less on intuition alone for the bigger financial decisions.
Just as if I’m needing to make an important legal decision, at 53 I find I’m less into intuitive unqualified legal experts and more into process-driven lawyers.
Which brings me to the second part of good decisions – process.
In home buying, many people just dart around like a pinball out of the slot – reacting to agents, to words, to results, with no manner of reason. You would be so much better off and increase your chances of a good outcome if you just followed a basic process.
Think through these things:
<ul>
<li>What do I want?</li>
<li>Does this home give me what I want?</li>
<li>Is it a good home?</li>
<li>How much would others reasonably expect to pay?</li>
</ul>
A proven complete process we use at James Buyer Advocates is <a href="https://marketnews.com.au/tag/clarity/" rel="tag" title="Posts tagged with Clarity" target="_blank">Clarity</a> – <a href="https://marketnews.com.au/tag/assess/" rel="tag" title="Posts tagged with Assess" target="_blank">Assess</a>- <a href="https://marketnews.com.au/tag/value/" rel="tag" title="Posts tagged with value" target="_blank">Value</a> – <a href="https://marketnews.com.au/tag/negotiate/" rel="tag" title="Posts tagged with Negotiate" target="_blank">Negotiate</a>.
More colloquially you could put that process as: Right home? Any good? How much? How to?
Going back to the lawyers for a second – sure, you could stand up in the court room and defend yourself without any training. But wouldn’t you increase your chances if you knew the rules – if you could follow a process?
Same with doctors – they don’t just make it up as they go along when operating, they follow proven successful processes.
And don’t you think you would get a better result in the first place  in court or in a surgery with an expert doctor or lawyer rather than trying to do it yourself?
The point is that better outcomes come from better decisions. And better decisions are made when a proven process is followed by a qualified expert rather than an inexperienced person relying on intuition.
Intuition is not as effective as expert analysis for many things. That’s the case in your job, and  in pretty much every other profession. It’s the case in selling homes and there is no logical reason why it would be any different when it comes to buying homes.
Using an expert and following a process works better than acting under pressure on intuition alone.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank" rel="nofollow"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Process beats intuition when buying property in wake of Autumn auction anxiety: Mal James

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Overall we feel the market in Melbourne's inner east has finished very strongly and on a positive note for 2012. By the bay is a different story, more positive than 2011, but not as strong as the inner east.
Year starts tentatively
After 2011 finished with a whimper, the market mood from buyers, sellers and agents in early February 2012 was fairly sombre. There was a feeling that things were not going to go well this year, and this was reflected in the lack of quality homes on the market, the lack of buyers willing to push past anything remotely heavy price-wise, and a number of fringe agents considering alternative professions.
The first test for 2012 was on February 25. The mood was actually more positive than it might have been, given the negativity around. Homes were selling, but they were mostly the well-priced A-graders in the early to mid-$1 million segment, where buying and selling wasn’t about a discretionary desire, but a physical or financial need.
One area that did live up to the sense of doom and the gloom in this early part of the season was the $3 million market, the top end. It was as dead as doornail in the inner east. And while bayside had a little oomph over $3 million, it wasn’t travelling particularly well either.
Sizzling super Saturday
But the big story was about super Saturday, October 27. More than 150 $1 million-plus auctions were slated for this day – the end of a clear four-week period after the footy finals. This was the big test – and by our standards it was a sizzler. Clearance rates were up over 70%, Bidderman (the average number of bidders at every $1 million-plus auction on the day) was at 1.8 and, of the 42 auctions we attended, seven were ‘volcanoes’ with four or more bidders. That was a significant improvement on the equivalent super Saturday last year (October 22, 2011), which had a clearance rate of just 43% and a Bidderman rate of just 1.3.
Then, following the Cup weekend, this optimism seemed to take a bit of a stumble. The stats didn’t look too bad, with clearance rates in the mid 60%, and Bidderman at around 1.5. But the market felt quieter than it should have been given the great run up. Deals were still happening but not at the same level of excitement as October and, as another November week passed, some in the market started to wonder if maybe super Saturday was a dream – that the market hadn’t really picked up and that we were going to limp into Christmas much the same as last year.
 
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Market improvement seems solid
By the last weekend of November, though, it was back on. Clearance rates were back up to 75%, Bidderman was up at 2, and there was no longer any doubt that the underlying improved market strength felt in October was still there. There was in fact a feeling of urgency out there, as if buyers suddenly realised that Christmas was just around the corner and that they had to act now if they wanted a home.
This sense of excitement even filtered through to the top end $3 million-plus market. After a dramatic increase in sales in this segment in October, by November the top end could officially be removed from life support. There were around 50 sales over $3 million in inner east and bayside, a very big month and a lot stronger finish than 2011.
Positive end to the year – especially in the inner east
Overall we feel the market in the inner east has finished very strongly and on a positive note for 2012. By the bay is a different story, more positive than 2011, but not as strong as the inner east.
After a year of a ups and downs then, we go into 2013 a lot more positive than we went into the market at the beginning of this year. What happens next year will depend a lot on what happens with interest rates and the economy, but having survived a few knocks and blows, overall the market feels like it has reached a stage of resilience this year and there’s reason to feel more optimistic for the market over the next twelve months – but hey who really knows, that’s what makes the Melbourne top end so interesting!
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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The year that was 2012 in Melbourne's $1 million-plus property market

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It attracts more anticipation than a grand final and a bigger array of stars than the Cup Carnival. And the results are more telling than the Bathurst 500: that’s what super Saturday, October 27th represents to the largest array of buyers and sellers on offer this year.
This coming weekend was always going to be a big weekend for auctions. It’s the only Saturday you could start your four-week auction campaign after the grand final and complete it before the Melbourne Cup.
Who said Melbourne doesn’t revolve around sport?
In the sport of Auctions there are six “majors” each year, and this is the second last major for season 2012. As in golf or tennis, the majors are a culmination of many minor tournaments that occur each weekend beginning mid-February and ending in mid-December.
They are the ones we all remember – the ones that leave us with an indelible indicator as to the state of play of the market, and the likely worth of our property nest egg right now.
The first major happens the fourth weekend after the Australia Day weekend.  This is the key weekend in the short opening season between Australia Day and the Labour Day weekend. The second is the last weekend before Easter, and the third is the fourth Saturday after Easter, usually in mid to late May. Those three majors are the highlights of the opening, pre-Easter and post-Easter mini selling seasons.
There is then a long winter break where not much happens at the higher end, until we hit September and the fourth major happens on the weekend before the grand final. The fifth is coming up this weekend. And the final major is the fourth Saturday after Melbourne Cup, usually the last weekend in November. These are the main pointers to the early and late spring and the pre-Christmas selling seasons.
Why is it such a big deal to keep an eye on what is happening on these super Saturdays?
When you have a good cross-section of stock, with some really good homes all going under the hammer at the same time, it gives an accurate indication of buyer depth and therefore future price and market direction. If Bidderman, the average number of bidders per auction, is up towards two per auction on a super Saturday we can confidently say the market has some health. If clearance rates are down in the lower 50% levels and Bidderman is around one bidder per auction, prices are not looking solid going forward.
For us, this weekend will be a true test of how the market currently seems to be travelling – which to date has actually been OK.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website. 
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This weekend's super Saturday will be a true test of the Melbourne property market

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As we go into our footy-induced/ school holiday auction activity hibernation we thought we would look at the key issues facing buyers right now in the spring marketplace. Here are our top five.
1. Underquoting
Underquoting is back with a vengeance. It is a real stain on our profession. Like dummy bidding it causes great angst to a large number of buyers and sellers (yes, sellers as well).
Underquoting is the deliberate lying to buyers by agents as to the price the vendor is likely to be seeking. It is not legal in this or any other market. It is different to the<a href="https://www.propertyobserver.com.au/residential/a-smart-buyer-s-guide-to-step-quoting/2011091451554"> legitimate practice of step quoting</a>, which is the raising or lowering of a quote by an agent during a campaign in response to buyer interest, to more accurately reflect the expected sale range, while keeping the vendors’ expectations (which may move) within that range.
While underquoting is illegal, the government and REIV are doing nothing about it, either because they can’t or because its proponents are all-powerful and the authorities are scared of them. They cannot be ignorant of its occurrence – it is rife in much of Melbourne’s inner east and now some of bayside.
Writing this comment is doing us no favours in terms of our relationships with particular agents (which we value). And, to be honest, underquoting is good for our business: the more of it there is, the more enquiries we receive for our services.
However, we find underquoting unacceptable – and we are particularly concerned at the increasing dominance of the company that is forcing the issue and encouraging other companies to do the same just to compete. A whole new generation of salesmen and saleswomen are being taught to lie for a living and then being allowed to think that this is consistent with professional conduct.
Given that the government and the REIV have proven they do not have the “cahoonas” to take this on, until they do, if there is to be change, then it must come from within the company(s).
We urge the company, for which we have the utmost respect as professional agents outside this issue, to reconsider its methods and set higher standards than the lofty ones it is currently achieving.
Nobody’s perfect, our company included, but that doesn’t mean you can’t try and fix a problem.
Underquoting is hurting our truly great profession. It is simply plain wrong and it is ultimately ineffective. 
2. Stock levels
Stock levels are the market enigma right now. Because stock is at low levels, buyers are finding it frustrating to be in the market looking – but it is the low stock levels that are holding market prices up, which in turn, keeps a market for buyers to be looking in. <a href="https://www.propertyobserver.com.au/residential/buying-property-in-early-winter-demands-a-change-of-tack-mal-james/2012041654302">Trading up</a> is a sensational idea right now, but you need to be able to find the right home to trade up into.
3. Valuations and banks
Sustained price drops since April 2010 across many (not all) of the top end market has made “getting the cash together” a greater complication for buyers than in previous times.
Buyers need to deal with a) reduced equity in their own home and b) the fact banks are not always rubber stamping the price paid on their new target home.
The uncertainty of dealing in very fluid negotiations with a very rigid banking systems has meant a greater skill in deal making is required than in the boom markets of yesteryear.
But please, banks are actually doing the right thing – there is no bank bashing in the argument.
You need to know how bank valuers think, how bank valuers act and how bank valuers value because if you don’t, you may have a nasty surprise the week after you thought you made a good decision and bought a home you thought the banks would fully support you on.
 
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4. Assessing values – information overload
With specific reference back to the previous point – one of the key skills required in this market is assessing “market” value. Some previous Buyer Masterclasses on “value”
<a href="https://marketnews.com.au/2010/10/a-home-land-building-emotion/">A way to value a home</a>
<a href="https://marketnews.com.au/2010/11/putting-a-price-on-land-value/">A way to value Land</a>
<a href="https://marketnews.com.au/2010/12/placing-a-value-on-a-building/">A way to value a building</a>
<a href="https://marketnews.com.au/2012/08/information-reiv-medians-and-balwyn/">What sort of information are you basing your value assessment on?</a>
5. Buyer emotions and negotiations
No articles has had a bigger, more sustained response than the <a href="https://marketnews.com.au/2012/09/sold-under-the-hammer-no-its-not-even-when-you-think-it-is/">Masterclass</a> and <a href="https://marketnews.com.au/2012/09/what-is-really-going-on-at-some-inner-melbourne-auctions/">Market Insight</a> article about buyer emotions
If you think you can manage your emotions and you want to try some DIY negotiations– here are some Buyer Masterclass ideas from previous years
<a href="https://marketnews.com.au/2010/08/negotiation-is-all-in-the-mindset/">Negotiation mindset</a>
<a href="https://marketnews.com.au/2010/09/cultures-%E2%80%93-better-results-often-come-from-understanding-not-fighting/">Understanding agent cultures</a>
<a href="https://marketnews.com.au/2010/08/the-best-negotiation-tool-maybe-a-coffee/">Coffee can work</a>
<a href="https://marketnews.com.au/2010/08/carrots-and-sticks-and-other-successful-negotiation-styles-that-don%E2%80%99t-involve-begging/">Carrot and stick</a>
<a href="https://marketnews.com.au/2010/08/how-to-ask-if-its-on-the-market/">Asking the “on the market” question</a>
Finally the spring buyer solution:
If all the early spring reading leads you to some considered, well thought-out panic, then there is help at hand – there are solutions!
If you are surgeon or lawyer, could we do your job without any training? If you are a financial person or a retailer could we do your job well at our first attempt in a difficult situation? Of course not!
So why buy a home, your biggest financial and emotional (material) asset when you could get a better long-term result?
It’s self serving we know, but get some professional help from Guy or Adam or Gina at James Buyer Advocates. However, if you don’t like the cut of our jib, then try one of our competitors such as David Morrell or Chris Koren or Richard or Monique Wakelin or Jenny Wright at Domain, Ian James at JPP or Kim Easterbrook at Elite to name a few.
As a buyer you actually do have very real choices if you want better results before Christmas.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
What do you think the spring 2012 property market holds? <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute survey</a> for your chance to win an iPhone 5.
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Underquoting among five key issues facing spring residential property buyers: Mal James

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We live in an information age.
In our fast-paced environment, how can we discriminate the good from the bad in the information-saturated Melbourne property market right now?
At James Buyer Advocates, when we produce a full value rating, we look at hundreds of pieces of information.
We split them into three categories.
Facts – such as a sale price
Opinions – such as the values placed on a home by the highest other bidder, the seller and your own pre-sale opinions
Fluff – uniformed or unsubstantiated advice or guides
Take one of the many property websites popping up, such as onthehouse.com.au, which last week said 45 Middle Crescent Brighton could sell for $1,967,900 to $2,089,900. The house sold for just under $3 million, so you’d be pretty disappointed as a buyer if you’d been relying on the site’s “guesstimate”. That wasn’t opinion, that was fluff. It was free fluff, but it was useless fluff. This home actually sold within the selling agents’ quote range.
When everything is blended as one, it is important to discriminate good from bad when making decisions.
In this faster world, facts, opinions and fluff can all blend into one, and they can all become information.
As a buyer, unless you live in a cocoon, the opinions that drive your decisions either good or bad are going to be affected by how you interpret the information you receive – facts, opinions and fluff.
We find that good decisions, and therefore good outcomes, are generally based on facts and informed opinion.
Bad decisions, which more often than not lead to bad outcomes, are made with the help of uninformed opinion and fluff.
Where it becomes tricky for many buyers is determining if a piece of information is a fact, an opinion or fluff.
Fact or fluff
As the world gets murkier – that is editorial versus advertorial – it becomes harder for buyers.
The Real Estate Institute of Victoria (of which we are a longer-term member) often gives the market facts and really well-informed opinion – but at other times it can give the market fluff.
Take, for instance, the last median results and the opinion on the market.  The REIV chief executive Enzo Raimondo (he’s OK, and we don’t get it right every day either) supported his latest market opinion stating that Balwyn had strongly improved in prices in the last 12 months and was nearly back at its peak in 2010.
The REIV claimed, as a fact, that the median quarter price in Balwyn has gone up by 26% in three months and that Balwyn tops the list at 20% for June median price quarter improvement in the last year.
“Wow,” you say, “That’s a fact – that’s useful and relevant information when buying in Balwyn”.
But is it a fact or is it just some fluff to fill some space?
Let’s look a little deeper into the star-performing suburb of Balwyn. Let’s check out the “facts”.
The REIV’s June quarter median was based on 43 sales – fully 25% had no sale price recorded next to them. Not just undisclosed. But blank. Agents voluntarily provide this information. So the REIV had to ignore a full quarter of the June quarter’s transactions to come up with its median house price.
Why so many unrecorded prices? Well, in a weaker market like we’ve got now, agents and sellers become reluctant to record all sale prices for reasons of ego or business.
 
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According to the REIV, the median price for Balwyn this June quarter was $1,540,000. Where did the organisation get that price from? A median price is normally the middle sale – with half the sales below that price and half above it.  But there was actually no sale in Balwyn at that price.
The way the REIV came up with that price was to take a statistical average of the two middle sales. One of those sales was $1.37 million (40 Jurang Street with Jellis Craig) and the other was $1.71 million (6 Eyre Street with Kay and Burton). That’s a huuuuge gap, a difference of nearly 25%  – so some may say it’s a bit of a stretch to say Balwyn had a $1,540,000 median price based on those two sales.
What if one more of those mysterious Balwyn unrecorded price results had been recorded, and it was below $1,370,000? That would have made the “median” price in Balwyn to $1,370,000, and the median price “growth” would have dropped from 20% to 7%.
If another four or five of those undisclosed price sales had been in the lower half of the pool of results the median price results may well have been lower than the previous year’s median in Balwyn. In other words, what we may well have had is not an increase but a fall in price June quarter 2011 to June quarter 2012.
What if we compare the actual median price sale from the previous financial year with the actual median price sale this financial year just gone, using the REIV’s own data?
According to the REIV, there was a total of 132 sales (16 unrecorded) in Balwyn in 2010-2011, and the overall median sale was 117 Winmalee Road (Christopher Russell), which sold for $1.45 million.  In 2011-12 there was a total of 152 sales (29 unrecorded), and the median price was $1,302,500 for Grosvenor Street (Jellis Craig).
Comparing those two figures it shows a drop in values in Balwyn of around 10% in price between 2010-11 and 2011-12 ending this last June quarter.
That’s a big difference from that 20% increase presented as a fact by the REIV to support strong growth in Balwyn. And that figure of -10% tallies in a lot more closely with what we’ve been seeing at the coalface.
So is it a fact there was big median price increase in Balwyn or is it fluff?
If you are buying a home in Balwyn are you using the -10% or the +20% when assessing historical comparables to formulate your opinion on value and therefore make your “good” buying decision?
And, not to put too fine a point on any of the information you are looking at:
Is it fact?
Is it opinion (informed or uniformed)? or
Is it simply fluff?
Footnote: This article is not about the REIV (we’re members, we like and support the REIV). This article is not about Balwyn per se, because in Toorak 30% of house sales in the June quarter had no figure next to them and in Brighton there were more than 20 sales in the June quarter that had no recorded price (we do not mean undisclosed, we mean no price at all). This article is about the quality of the information you are using to make good long-term home-buying decisions.
Mal James is principal of<a target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

How to separate facts from fluff about Melbourne’s property market

A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

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The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

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The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

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Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Mal James

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