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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

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

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

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

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

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

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

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;

Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;

"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;

"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;

"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365785]

Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;

Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;

Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;

Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365767]

A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;

There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.

[smartcode_project_cta:default project_id=108274]

Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Mal James

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