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At 6pm this past Saturday, the James Clearance Rate for $1 million-plus Melbourne properties was 56% on the 32 auctions we attended. However we think that bare statistic understates the quality of the $1 million-plus market, given we included a number of fringe auctions today and that current stock levels are swollen right now. All in all we think it’s a borderline balanced market.
The Weekly Review Bidderman, our demand indicator, was a healthy 1.6 bidders per auction. One in three auctions we covered had three or more bidders. However, one in threeauctions were ducks (no bidders) and the other third were somewhere in between.
Decisions are being made again. It’s as simple as that. Both buyers and sellers are making decisions again, and as a result market activity has been picking up all month.
Most agents are reporting a good March with good results and this is happening because:
Sellers are saying – OK let’s focus on meeting the market rather than getting “my” price.
Buyers are saying – let’s buy a home rather than worry about the future.
These assertions have been supported by a number of sales, particularly in the $2 million to $4 million bracket, over the last few weeks.
Other evidence is the fact that our company has been involved in four more purchases this week, averaging over $2 million in Brighton, Hawthorn, South Yarra and Hawthorn East.
Why?
Life goes on. We don’t believe it’s any more complicated than that. Children are still being born, growing up and leaving home. These things aren’t going to be stopped by the Greek economy – and Melbourne is a healthy place at the top end to be and in which to own a home in March 2012.
The last fortnight has had limited auction results on low quantity/quality offerings. However, this weekend with around 100 auctions $1 million-plus Melbourne inner-east and bayside regions we have seen the continuing public signs of positivity in the market of late February. Sure, this weekend’s clearance rates weren’t stellar, but then the number of auctions were up significantly.
Next week, the last auction day before Easter, is a super Saturday with around 150 scheduled auctions over $1 million in Melbourne inner east and bayside. This is our first for the year (which just shows how the market has contracted since last year). The market really only has one more hurdle before spring before we can confidently say that some positive life has returned. That hurdle is the late April to late May market – really the last run before things quieten down for winter.
Yes, there is increased activity, but if you think that necessarily means prices have increased then as a buyer you may be overpaying and if you are a seller you may not be selling. Increased activity in early 2012 means more buyers and sellers agreeing on price and those agreements are largely occurring because sellers are meeting the market.
Many buyers don’t take risk into the equation when buying. However, this market must surely be showing observant buyers that risk is just as important an element in home buying as cashflow and capital growth.
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" 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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maljames-vHwm28JUAa

Melbourne top-end buyers and sellers are making decisions again

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At 6pm on Saturday, the James clearance rate for $1 million-plus Melbourne properties was 57% from the 23 auctions we attended. That figure represented a dip down from last week, but the stock quality was not up to what we have been seeing lately.
The Weekly Review Bidderman, our demand indicator, was 1.3 bidders per auction. One in three homes were ducks (no-bidder auctions) – a substantial change from two weeks ago. However, again this may have been simply a reflection of this weekend’s overall lower quality.
The market away from auctions is not as quiet as these stats may indicate. As a company we have bought six homes in the last fortnight (Kew, Brighton, Glen Iris, Black Rock, Balwyn and St Kilda), and the overall $3 million-plus market has had a number of substantial sales.
Next weekend is a solid one, stock-wise, with double the number of this weekend’s scheduled auctions at around 100. The pre-Easter weekend of March 31 will be our first super Saturday for 2012, with the number of $1 million-plus auctions approaching the magic 150 mark. The hallmark for a "super Saturday" is usually more than 1,000 properties overall.
Many parts of the market are still clearly operating at lower price levels than in previous years. The land only segment is a case in point. For instance, we saw 19 Ebden Black Rock pass in this weekend for $1,525,000 after having changed hands for almost $2 million a few years ago.  This is a good spot. But Black Rock, like Balwyn North and Bentleigh East are fringe suburbs, and fringe suburbs are seeing top-end land prices drop and drop at faster rates than Melbourne’s jewels such as Brighton, Hawthorn and Toorak. This is a normal market cyclical phenomenon where fringe land prices increase more dramatically (percentage wise) in rising markets but also fall at a faster percentage rate in tougher markets.
So despite the uplift in activity in the last month – and there really has been an uplift in activity – the “record price” is still clearly the  exception rather than the norm in early 2012.
 Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" 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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March 31 will be Melbourne’s first million-plus super Saturday, but record prices still rare

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Analysing the data from recent auctions, 25% had three or more bidders while only 10% were ducks (i.e. no bidder auctions). These are the sort of stats that provide early indications of a strengthening market. Should this demand be sustained on the solid auction numbers in the next few weeks leading up to Easter, it’s safe to say for now that the $1 million-plus market, as a whole, has performed a lot better than most expected and that we may be in fact be in a stabilising price phase.
However if we have a repeat of 2011, where demand fell away after a fairly positive pre-Labour Day 2011 market, then all we are seeing now is a bit of price spiking.
As we keep saying, it is early days. But the numbers are substantial and if the clearance rates continue to improve and the bidder numbers continue to increase then in time we could see an end to price falls and prices could in time begin to climb again (the current market has been trending downwards since Anzac Day 2010).
Our focus for the above statements is the $1 million to $2 million segment. We are still not seeing any significant positive momentum in the $3 million-plus market. Sure, agents are claiming they’re getting offers on properties and yes, some long-term stales are being cleaned up. But they are at lower prices and happening when the vendor is meeting the market not the other way around. So before we acknowledge any uniform improvement across all segments of the market, we need to see the top level perform in greater numbers and a lot more consistently.
Overall the $3 million-plus market is seen by optimists as treading water and by realists as still edging backwards.
Do all the good deals have to drag out? Not necessarily. You can make it hard for yourself and the other side if you want, but good negotiations aren’t necessarily long, unpleasant and drawn out. Indeed, why wouldn’t you negotiate in a timely manner if it is right for both parties?
There are many deals out there in real estate land that haven’t worked out just because both sides have insisted on taking what they think is the “moral” or “right” stance (otherwise known as the “ego” or “victim” position). But over the decades we have found that the best position for buying and selling is the “agreement” position.
The fact is that there is no relationship between the time and pain involved in a negotiation and the quality of the outcome you end up with.  Otherwise how could anybody think a 15-minute Saturday auction was a good thing?
So don’t rush. Don’t go in unprepared or without good representation. But at the same time don’t snatch defeat from the jaws of victory for no good reason other than it seemed too quick or too easy. How dumb would it be if the negotiation could have been good, simple and quick and you still said no? Helllooo, sucker.
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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Melbourne’s million-dollar market could be turning around, but no momentum in super-prestige property

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On March 1 (last week) the cooling off laws were amended so that now almost all purchases, except those transacted three days either side of an auction, are subject to a cooling-off period. Previously agents could remove the purchaser’s ability to end a contract within three business days of signing by forcing them to seek legal advice prior to making an offer.
Will this amendment have any material effect on the upper end market?
It might. What’s likely is that we’ll see fewer agents considering offers that come in well before auction day, and agents busier than ever before on the three days just before and after the auction when an agreement can be locked in with more certainty.
We may also see less of the early auction ring-around with a good offer. Let’s say an agent receives a $3,5 million offer in writing on a $3 million home three weeks before the auction. Why would the agent do the ring-around to other buyers, potentially scaring them away from the home at $3. 5million if there was a possibility that the $3.5 million buyer might exercise his right to cool off? That would significantly affect the auction momentum. What’s more likely now is that the seller will simply accept the $3.5 million, wait till the cooling off is over and then tell other buyers the deal is done – perhaps creating more heat between selling agent and buyers.
Alternatively, there may now be a potentially acceptable buyer strategy where the buyer makes a high offer, then takes advantage of the protection of the cooling-off period to end the contract and then come in later at a lower amount and perhaps under another name – having seriously disrupted the sale process.
What about a boardroom auction? Does this qualify as a publicly advertised auction in all cases with regards to cooling off? What is the definition of publicly advertised? We are looking forward to a clarification on this from the REIV and the government.
Cooling off raises other issues, too – especially if you are involved in long negotiations. What most people don’t realise is that your cooling-off period begins when you make an offer, not when agreement is reached with the seller. So if the negotiating process takes longer than three business days, you will have lost your cooling-off period. There are also some other tricky issues re forfeiture of monies, and the actual process of claiming cooling off. So get some legal or buying agent advice before relying on it as a strategy.
Personally we think you are unwise to use cooling-off as a strategy in negotiation. We as an organisation do not use it as a negotiating strategy. Our strong recommendation is that you do all your due diligence prior to signing.
 Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" 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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Cooling-off period changes in Victoria could lead to duplicitous buyer strategies

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The auctions are back on again, and the chatter about what is happening on the 2012 property market has started. By Labour Day the trickle of opinion on the state of the market will turn into a flood.
The big question for many of you right now may well be: Should we buy the family home in Brighton or Hawthorn now – or should we wait till later in the year? You may be worrying about what’s happening to the economy and wondering how it’s going to affect the property market.
But the fact is it’s still impossible to say what’s happening on those two fronts. And whether you decide to buy now or later in the year, first you need to work through your home-buying plan for 2012. To some people this is an amazingly difficult ask. But I can assure you that if you make a sensible plan and follow it, it’s a Black Caviar certainty you’ll buy a house that suits your needs, makes your family happier and lets you retire earlier.
Your plan should include both financial and emotional outcomes. Financial outcomes include whether you aim to minimise debt as soon as possible and whether you want your home to help you build wealth. Emotional outcomes are about what kind of property will maximise your family’s happiness and wellbeing.
Your plan will of course be very different depending on what stage of life you are at, whether you’re a single, couple, have young children or older children, are in mid-life or retirement.
So grab your iPad or a piece of paper and pencil and divide a page into three columns. At the top of column 1 write ‘Position’; at the top of column 2 write ‘Property’ and at the top of column 3 write ‘Price’.
This is where you answers will go –what about the questions?
Start with the emotional outcomes. If you are a single or child-free couple you might be focusing on car spaces, benchtops or a groovy locale. But think in terms of a bigger picture. Imagine your life five years from now. Maybe you’ll meet somebody, leave somebody, get a job, lose a job, go to Nepal, discover the punt. The point is your price column shouldn’t tie you down to a life of endless mortgage payments; your property column should have room for a spouse or child or renter; and your position should go beyond the one funky suburb. Your best emotional outcomes are flexible ones.
If you have young children, your focus will be on how the house can accommodate you all happily as the family grows. So think hard when filling in the ‘Property’ column on how the floorplan can combine supervision with some separation. With older children your emotional focus is schooling and transport. So when you fill out the ‘Position’ column, remember that where you live in relation to schools and public transport determines how much time you’ll spend driving the kids around in the car.
In the mid-life stage, there’s a chance you’ll make a big dramatic life change – move to the country or overseas. But when you look at ‘Price’ be careful you don’t rule out the possibility you may want to come back to a home in the city. In the retirement stage your emotional focus will move back to the ‘Position’ column – to somewhere you can easily walk to a cafe, catch a train and see your doctor.
In terms of the financial outcomes in your life your answers will revolve around growth (building wealth to give you choice later in life), cashflow (allowing you to live for the now) and risk (allowing you to sleep at night). All boring but necessary.
Once you have a PPP plan, looking at each home becomes much easier and quicker because you know what you want. You can assess each home against your plan rather than looking at each home and then trying to work out a plan to fit.
If your PPP plan is functioning, well then the question asked at the start, “Do I buy now or do I wait?” can be answered relatively easily. It’s not so much about getting the timing right, but about the property itself: does it meet my PPP plan and does it feel right? Yes? Well then, buy it! No? Wait and keep looking.
 
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" 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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To buy the best property for your needs, you need a plan

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So how have we started 2012? In a word, quietly.
By any previous year’s measurement, 2012 has been pretty quiet out of the blocks – except for agent claims of numbers through opens.
<ol>
<li style="line-height: 17px;">Only a handful of $3 million-plus buys</li>
<li style="line-height: 17px;">Little new stock of high calibre at this price level came onto the market in February. This is particularly so in the inner east. March may turn out to be different from what we are hearing and seeing pre-market with a number of sellers keen to get a result prior to our early April Easter. But that is conjecture until we see March new stock numbers confirmed.</li>
<li style="line-height: 17px;">When the market is quiet, agent turnover drops and so do agents’ incomes; unrest builds and the merry-go-round begins. During late 2011 and early 2012 agent coffee shop meetings have been up.</li>
</ol>
So yes, the market still seems a little quiet, but it’s not that bad. It’s pretty much as expected, and this weekend went as well as a selling agent could have hoped for.
What of the claimed increase numbers at open for inspections? We actually support this premise and the implication that demand may be stronger than the results show.  Our enquiry numbers are up and the number of clients looking for homes is also up on this time last year, even if we’ve seen little change in the number of clients in actual negotiation this year compared to last. Result-wise we also started OK, with buys in Fitzroy, Glen Iris and Brighton in the $1 million, $2 million and $3 million price bracket in early February. 
On the auction scene, overall demand was not too awful. At 6.pm Saturday, the James Clearance Rate for million-dollar-plus properties in the inner east and bayside was 58% on the 31 auctions we attended. The Weekly Review Bidderman, our demand indicator, began the year at 1.5 bidders per auction.
Last weekend’s numbers were low, at just over 50 in that million-plus bracket. But next weekend will have well over 100, a solid number. And we’ll see a similar number on March 3 before we have a significant drop on March 10 due to the Labour Day weekend.
Market wrap-up
<ul>
<li>Overall the market appeared weaker on early results, i.e. under the hammer. As the day wore on though, and pass-ins were cleaned up, the indications were that the market seems to have started as well as could be expected. But it’s too soon to say it’s a clear positive trend.</li>
<li>Stock levels on offer were low in number, in quality and in dollar value. Only two auctions had results over $3 million – one sold and one didn’t. So it’s still a bit foggy to us.</li>
<li>A number of pass-ins were cleaned up post auction – meaning a lot of the action was not visible this weekend.</li>
<li>The phenomenon that became very evident late in 2011 has continued in 2012. This weekend we counted 46 bidders at 31 auctions – so there is demand out there. But there was no evenness: five auctions had 50% of the bidders averaging almost five bidders per auction and the other 26 auctions averaged just under one bidder per auction.</li>
</ul>
‘Round the grounds: Bayside – Low levels and mostly unexciting stock, so 56% is an even result. Boroondara – Actually that’s pretty impressive first up – 83% clearance. Stonnington – Solid start on low numbers  – 75% clearance Port Phillip – Whoops – somebody forgot to tell the buyers auctions had started again – 20%
Market summary – year to date 2012
Last year was a year of generally falling prices – with the exceptions of the months of May, September and December. Yes, we finished the year off OK, but it was more a case or arresting the fall rather than any lighting of price rockets.
Last year we saw drops in market values on homes that started too high on price, with owners that then had to sell. This was particularly the case with properties that were of inferior quality or in poor positions. In many cases these drops were 20% and more off the Anzac Day 2010 high. A lot of that fall in value happened in the last quarter of 2011.
On the subject of price falls: some organisations are spruiking median price increases in the last quarter of last year as real stats, which only proves that there are dope tests that can have false positives. The market did have some strong results in December but overall it was a negative second half for many sellers (in terms of lower selling prices or not selling at all).
 
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates" 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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Melbourne's top-end property market starts the year quietly

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This year has been a year some in the property market – chiefly sellers and some agents – would possibly rather forget. For buyers it’s been a little better, when there’s been a reasonable supply of good stock. But buyers’ enthusiasm has been constrained by nervousness about economic events unfolding beyond our shores. So while they’ve been out there looking, and while in many cases they’ve been keen to buy, they haven’t wanted to pay too much – certainly not as much as what many sellers are demanding. For many sellers it’s not been a happy result – and some of them will be still on the market with their now stale offerings in the new year.
Read on for our season-by-season account of how the year unfolded.
Late summer
After 2010 finished in a state we described as “balanced and healthy”, 2011 started with a bit of warmth, even moving into “hot” for the $1 million market. On the last weekend in February, clearance rates for the auctions we attended were up at 74% and Bidderman number of bidders per auction) was at two.
But a flush of new stock slated to come on to the market in March and April would be the test of whether the warmth we saw in the last weekend of summer represented an underlying hotting up or a temporary New Year afterglow.
The story was different with the $3 million-plus market, which was dead as a doornail with very few homes changing hands. Geographically too, the trend at the top end of the market reversed – with bayside performing a lot better than the inner east (in fact Brighton townhouses at the $3 million level were almost walking out the door).
Autumn
The New Year’s afterglow had indeed faded by March, with buyers increasingly nervous about world events, the stock market, the government – the whole shebang. Coinciding with this buyer nervousness was a flood of new stock coming onto the market as would-be sellers also nervous about the future decided to try and sell quickly.
The surge in stock was not taken up by the market and consequently we saw declining auction clearance rates and bidder numbers, and a market groaning under the weight of stock numbers. Not only was new stock coming on that would previously have been gobbled up, but it was having to compete with an increasing backlog of pass-ins from previous weeks. This compounding rate of stock build meant price only had one way to go – and that was down. It wasn’t quite a price free fall, however, as most sellers, including those at the $3 million-plus level, had the resources to ride out what they thought was just a blip of negativity.
Red Zone - Bidders under 1.5 - Falling Prices
 <img src="/images/stories/maldec12.gif">
Easter
From around Easter the market had the first of two short periods of 2011 price spiking (September was the other). Those sellers who had the good luck or good management to be in the market at this time saw some good results – especially those with sensibly priced A-grade properties.
May 21st was probably the high point for sellers, with the clearance rate a whopping 84% on the 37 auctions we attended and Bidderman of over 2. It was the 2011 weekend to be selling.
Winter
However, the late autumn cheer turned out to be nothing more than a brief flare of optimism before we went into a grinding winter with little activity as the supply of good quality stock dried up, and buyers stayed home uninspired by what was on offer. It was not so much a negative as a boring market.
Prices flat-lined and even fell on lower-quality homes. The exception was the rare occasion when a quality home hit the market, but overall the market was off by as much as 10% from the last peak in April 2010.
The unluckiest sellers this year were those who went to auction on August 6, the day after the share market plunged by more than 4% on fears the global financial crisis was re-emerging. Just three of the 25 auctions we covered sold under the hammer – that’s 12% – though by the end of the day that figure had gone up to 55%.
After that weekend of panic, the rest of winter wasn’t quite the disaster that some had feared. It was more a “nothing” market, with little good stock on offer, and most auctions seemed a tug-of-war rather than a race – even when there was solid support from buyers. Vendors refused to budge on price, and buyers weren’t prepared to pay what they saw as inflated asking prices – and the result, more often than not, was a stalemate. 
Red Zone - Poor Price Matching - Falling Prices
<img src="/images/stories/maldec122.gif">
Early spring
Vendors in early spring saw a reprieve from the doom and gloom of winter, with the second of the year’s upwards price spikes. The $3 million-plus market did particularly well. On August 27 we reported that 11 homes had sold for a total of $55 million in one week.  Clearance rates were back up over 60%. The heat stayed for most of the month of September for the $3 million-plus market.
Why did this happen? It was like April – it was about buyers looking into the future and seeing not a lot of good stock coming on. The supply and price equation showed that demand was there when conditions were right – and September proved it.
But by mid-September we were back in the ‘two speed market’. This division between over-priced lower grade properties and good quality well priced properties had been going on all year, but it became more entrenched as the year went on and buyers flocked to A-grade auctions and stayed away in droves from the rest.
At the lower end it was a vicious circle of low bidder demand resulting in poor results, making sellers reluctant to put their houses on the market. Which meant little in the way of good stock around, so buyers already feeling cautious about the economy anyway weren’t bothering to go out there and bid on the little that was on offer.
Meanwhile, at that upper level, where buyers weren’t so concerned about the economy, they were snapping up whatever good quality stock was coming on to the market. All you need is couple of bidders at this level to push the price up, and even at this point we were seeing auctions with three or more.
However the up spike was short-lived. By the end of September the heat had dissipated as opportunistic sellers flooded their properties onto the market. Within a fortnight most of the good news for sellers was over. And, as it turned out, that was it for sellers in terms of good news in 2011. For buyers though, the good news has rolled on for the rest of the year with a great combination of falling prices and increased choice.
Late spring
With the AFL season ending a week later than usual, the spotlight was on October 22 as the day of culmination for many auction campaigns and the biggest Super Saturday for 2011. In the $1 million-plus market in the inner east and bayside, 150 auctions were slated, three times as many as the previous week, and twice as many as we’d seen on any weekend since autumn.
But it was a day of pouring rain and frustrated hopes for many sellers, with a clearance rate of just 43% on the 46 auctions we attended. And many of the properties that passed in on that hopeful day sat on the market for weeks to come. Three weeks after Super Saturday our survey showed that a third of those properties still had not sold.
Even so, the market was not exactly on its knees. Yes, prices were continuing to fall and in some cases falling quite substantially. But when vendors were prepared to fall in with the market, there were bidders. In fact, if choice and falling prices are your definition of a good buyers’ market, this was an ideal buyers’ market.
2011 - Falling Prices 
<img src="/images/stories/maldec123.gif">
What does this mean for 2012?
There is a lot talk going on about the market being overpriced and the bubble bursting. But the fact is the bubble has already well and truly burst. Prices right now appear to be tumbling as much as they did in the GFC. Even on some good homes they are down 5% to 10% and as much as 20% since our last highwater mark (April 2010) on the weaker homes.
But markets can turn quickly. To recap on recent history, we saw this kind of price discounting through the GFC in 2008 – although, please the GFC was heavier than 2011. But we also saw prices climbing back up the next year, with a mini-boom occurring up until Anzac Day 2010. During that period some prices on some homes rose by as much as 30%. Our graphic representation to the right shows how prices have moved in the past couple of years.
And while we have seen big price drops in 2011 (on all but the best of the best), there is not the panic we saw three years ago. The market appears to be accepting these ups and downs as a normal gyration and these gyrations may well become bigger and more regular in 2012 as we all become more “fully informed” through media saturation.
Our best bit of advice for 2012: The market is two-faced:
Look at the Bidderman stats over the last three weeks. Two weeks ago we reported 27 bidders on five homes and 14 bidders combined on the other 21 auctions. It was the same story last week, with 17 bidders on four homes but only 15 bidders on the other 21 homes we reported on. This week we saw 26 bidders on seven homes and 24 bidders combined on the other 27 homes we reported on. Which shows that properties that are hot are really hot. Those that aren’t need a good agent.
These facts should show you the importance of
<ul>
<li>Research</li>
<li>Multiple negotiation strategy – low and high</li>
<li>Price framing – may be $100,000s away from where you are.</li>
<li>Selection in buying now determines for your future in selling</li>
</ul>
Mal James is principal of<a target="_blank" title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/"> 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 bubble has truly burst, but the prestige Melbourne market is two-faced: Mal James

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To help us get a sense of what happened this year in Melbourne’s top-end property market, on both sides of the fence, we asked some of the greats of Melbourne real estate – our legends – to give us their perspectives. We also asked them to take a longer historical view on how this year compared with the recent past and on how it might impact on the market when it opens again next year.
 
Peter Batrouney – Jellis Craig 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/peter-batrouney1-120x90.jpg" style="float: left; margin: 5px;">
What happened this year in your area of expertise? Demand was not quite as strong as 2010. However for a prime property such as 47 Kinkora Road, Hawthorn, it is a very strong market still.
Supply is holding, and our own stats support that. Prices are down by 10% to 15%
Where are we on the price cycle compared with 2007 peak, 2008 GFC or say 2010. And what do you think will happen to price early next year? Next year I expect the market to open up briskly as it has always done in my 43 years of tracking it. February is statistically the most successful month in which to sell.
<div>The main reason is the lack of supply. And the fact that buyers left over from the spring quarter react to new stock very positively. Clearly the state of the overseas financial situation will have a continued bearing on how we see things here!</div>
<div> </div>
<div>In general terms I expect things to be steady as she goes in 2012.</div>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/johnholdsworth-120x90.jpg" style="float: left; margin: 5px;">
John Holdsworth – Hocking Holdsworth
What happened this year in your area of expertise? This has been a year of two markets. The year stated strongly with supply and demand well balanced after a slow end to 2010. Most surplus stock from 2010 was mopped up early in the new year and prices were comparatively strong.
About mid-year however, the news of Europe started to dominate, which initially lowered supply. But at the same time we saw sliding prices (meaning demand dropped even more).
One thing that has become apparent is the flight to quality. Main roads and other distractions have almost become unsalable in Port Philip, particularly in the $2 million-plus range.
Where are we on the price cycle and what do you think will happen to price early next year? In one sense, having a breather after the price spikes of '07 and '09 is not such a bad thing, as 20% growth per annum is unsustainable. The question is, is this a breather or a five year flat market?
<div>I believe we would need some hefty rate cuts to get things moving substantially so as we can get rid of the fear factor.</div>
<div>Having said that, the market will become the market as we know it and we will deal with it accordingly.</div>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/greghocking-120x90.jpg" style="float: left; margin: 5px;">
Greg Hocking
What happened this year in your area of expertise? Demand was steady for the first half of the year across all price ranges. In the second half there was a noticeable drop off in demand above $2 million. Up to and around $1 million has remained steady. Supply contracted sharply mid-year and rebounded strongly over October and November, noticeably easing prices. Overall the market faded toward the finish line, with many properties failing to attract buyers at any price. Subsequently a significant number have been withdrawn from sale altogether. In closing, it is fair to say that prices across the board have dropped by 10 to 15% this year.
Where are we on the price cycle and what do you think will happen to price early next year? The current price cycle mirrors the worst of 2008 and much like the early '90s buyers are remaining cautious and largely unresponsive to the downward movement in pricing that has occurred throughout 2011. The ongoing negative media coverage of the market has no doubt influenced many would be buyers to ‘sit on the fence’.
<div>Buyers currently brave enough to be in the market are almost paralysed by the fear of making an offer that might be accepted – which they fear must mean they must be paying too much!</div>
<div> </div>
<div>The easing of interest rates offers a glimmer of hope for a more balanced market as we move into 2012. No other factor will have more of an influence on the 2012 market than interest rate movements. However a full 1% drop over a relatively short time frame would be required before prices begin to rise again.</div>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/jamesconnell-120x90.jpg" style="float: left; margin: 5px;">
James Connell – Marshall White
What happened this year in your area of expertise? In 2011 we have seen a reserved correction in terms of pricing as a result of general uncertainty and fear as a result of world economies and media commentary across the many markets in which we operate.
Where are we on the price cycle and what do you think will happen to price early next year? 2012 in my opinion will represent great buying opportunities to those looking to enter the market or upgrade an existing property.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/alastair-craig-120x90.jpg" style="float: left; margin: 5px;">
Alastair Craig – Jellis Craig 
What happened this year in your area of expertise? Demand has been strong for the good quality period/modern homes in the A-grade streets. Supply is down approximately 10%.
 Pricing West of Burke Road is very stable. East of Burke Road prices are down 10% to15%.
When the market gets a little tougher, buyers tend to stick close to Glenferrie/Cotham Road (the school belt). Pricing is approximately 10% down overall from the peak of the market – Easter 2010.
Where are we on the price cycle and what do you think will happen to price early next year? 2012- Hawthorn/Kew to remain steady. East of Burke Road has already fallen 15% and may thus remain stable.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/robvickers.jpg" style="float: left; margin: 5px;">
Rob Vickers-Willis – Abercromby’s 
What happened this year in your area of expertise? With the economic uncertainty from Europe and the continual fluctuations of the share market in the USA we have seen confidence drop in the Australian economy and share market.
This, along with the negative media over a period of time, has caused the market to drop between 5% and 10% this year. Many vendors with A-plus-rated properties have not placed them on the market, which has compromised the quality of stock. B-grade real estate is bringing average prices so the quality of property is not on offer and therefore prices have fallen. This is a trend that will most likely continue through the first half of 2012.
Where are we on the price cycle and what do you think will happen to price early next year? We are probably halfway through the cycle and, depending on what happens to the European markets and the RBA (if they have the balls to drop rates by another 75 basis points by April 2012), we will then see the cycle slow or jump ahead. I expect property prices to vary 1% to 5% up or down or stay constant for the next 12 months.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/andrewstuart.jpg" style="float: left; margin: 5px;">
Andrew Stuart – Hocking Stuart
What happened this year in your area of expertise? 2011 has been a tough year! And yet along with that it has brought opportunities.
Opportunities to "skill up" your staff, particularly in the area of selling in tough conditions, keeping track of that elusive buyer, and still endeavouring to achieve respectable outcomes for your clients.
Clearance rates in Bayside have remained fairly steady throughout the year at around 50-60%.
In previous years approximately 30% of the properties we sold were to investors. This year probably that figure is closer to 10%.
Given that, coupled with more people looking to rent rather than to buy, you can understand why rental properties are very hard to find and why weekly rent is going through the roof. Demand has slipped. Supply of saleable properties has declined, with many vendors still clinging to prices of two years ago. Therefore fewer properties have been selling for cheaper prices.
Where are we on the price cycle and what do you think will happen to price early next year? However, the good news is that I reckon we are at 6 o’clock. Things will improve from here. The question is: When?
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/johnbo.jpg" style="float: left; margin: 5px;">
John Bongiorno – Marshall White
What happened this year in your area of expertise? It has been a challenging year, however properties well priced have continued to sell successfully in this market.
Where are we on the price cycle and what do you think will happen to price early next year? In regard to prices compared to previous years, there are so many different market places within our markets – it is difficult to pinpoint movement, in some instances prices have held firm, in others there have been price adjustments compared to previous years.
I am optimistic about 2012 and I believe the adjustment to prices will see astute buyers take advantage of the market place that exists currently and create more activity than 2011.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/iaincarmichael.jpg" style="float: left; margin: 5px;">
Iain Carmichael – Bennison Mackinnon
What happened this year in your area of expertise? It has become evident that buyer demand for most sectors of the residential market across Melbourne’s inner suburbs has receded from the highs of late 2010. Buyers have become more studied in their approach and are less inclined to negotiate on properties that are overpriced.
Accordingly, people are taking longer to make buying decisions and family buyers are quite prepared to walk away from properties that do not meet their needs. On the plus side, buyers are still prepared to pay fully for well-located properties offering the right accommodation.
When prices fall in inner Melbourne, supply follows.  This time around is no exception to that rule and its not surprising that fewer people are choosing to sell right now. This very fact actually maintains buoyancy in the market.
A clear reduction in the level of "irrational exuberance" in the marketplace has occurred for all sorts of reasons: uncertainty, uneasiness and apprehension to name three.
Where are we on the price cycle and what do you think will happen to price early next year? Who knows where we are on the price cycle? On the "economic clock" we are probably at about ‘20 past’. Prices will be flat at best in 2012. All the more reason to select the right agent who really understands how to maximise selling prices on behalf of vendors, rather than just making another a sale! On the other hand, real estate prices could well rebound if the European economy falters and private investors move funds from equities. The money has to go somewhere!
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/bertstewart-120x90.jpg" style="float: left; margin: 5px;">
Bert Stewart – Buxton 
What happened this year in your area of expertise? Demand has been reasonably strong overall, especially at the bottom end of the market below the $1.5 million range.
Supply is certainly down on the previous year because of the vendors' uncertainty of what’s happening with the global financial situation, people tend to be conservative in times like these.
Prices have come off 10% to 20% in the top end of the market but have held better in the bottom end.
Where are we on the price cycle and what do you think will happen to price early next year? Compared to the price cycle of the last three years I believe prices are below, but having said that for prestige properties with a wow factor in excellent locations and priced well, they are selling well.
Prediction of the market next year would be steady as she goes with the first batch of auctions in February and March a strong barometer of what will happen going forward.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/michaelgibson.jpg" style="float: left; margin: 5px;">
Michael Gibson – Kay and Burton
What happened this year in your area of expertise? 2011 has been the year of continual market fluctuations, which has made giving accurate advice extremely difficult. Since the start of May supply and demand have been lower however the properties that tick all the boxes have continued to sell well.
Prices have come off in varying degrees; 5% to 15% depending on the quality of the offering, with market conditions perhaps similar to that of 2008.  The auction clearance rates do not reflect the current underlying strength in the market.
Where are we on the price cycle and what do you think will happen to price early next year? 2012 will be determined by local interest rates and confidence levels of the world around us, and to that end let’s hope rates come down and confidence goes up!
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" 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’s top-end market in 2011 - Eleven top agents weigh in on the year: Mal James 

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{yoogallery src=[images/stories/december1lofty]}
<a href="https://www.realestate.com.au/property-house-vic-camberwell-108821016" target="_blank">13 Lofty Avenue, Camberwell, VIC, 3124</a>
A sensibly renovated period home that packs in a good amount of accommodation and would suit a modern family well.
Main pluses here are the northern rear aspect, floor plan (it is a very flexible one) and the general room arrangement/separation.
Some may have reservations about the facade and the smallish land size, given the overall offering. That all said, this will tick the boxes and for many people  the seamless transition from rear open-plan area to the rear deck is very good and the key selling point.
Position is quite good – close to local schools, Middle Camberwell shops, a myriad local parks and public transport.
Adam Woledge is a registered architect and principal buyer advocate at <a href="https://www.james.net.au/rating/13-Lofty-Avenue-CAMBERWELL" target="_blank">James Buyer Advocates</a>.
Jellis Craig agent Peter Vigano is marketing the property with price hopes of $1.7 million. James Buyer Advocates has rated the property 733 out of 1,000, which is in the above-average category. It will go to auction on December 3 at 3pm. 
 
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Sensibly renovated period home in Camberwell

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Negotiating on a property is all about balancing the risks with the rewards. In your quest for the reward of buying your dream home, you might run the risk of paying more than you needed to. But focusing purely on the reward of paying a lower price for a home might raise the risk that another buyer trumps you and you miss out on the house you love.
Let’s look at a couple of scenarios, and the risks and rewards they might raise:
Buying before auction
Let’s say you decide to make an offer before auction. Making an offer early gets rid of the competition that hasn’t yet made itself known to the selling agent. It can also work because selling agents are unlikely to recommend against an offer that has some grunt about it. At auction day they don’t want egg on their face.
If your offer is accepted, the reward is that you get the main prize, your new home. The risk is you may have paid more than you needed to had you waited till auction. Of course if you are successful you will never know – you can congratulate yourself and nobody can argue the toss with you.
But there is also a risk that your pre-auction offer may not be accepted, but instead be used (correctly and ethically) by the selling agent as a price floor when it comes to auction day – not only for you but for other buyers too.
Overall going early is a strategy we favour only when you have done your due diligence and you believe that the genuine expected price (not the agent quote) is at market value and close to your budget limit. Going early involves a bit of smoke and mirrors, and we feel relatively comfortable in that domain. If you don’t then waiting till the auction may be your best bet.
Private sale negotiations
When the asking price of a quality home drops from $2 million to $1.8 million due to some tough negotiation most buyers think they are now in a better risk v. reward position to buy the home. But if you offer, say, $1.7 million at this point you can put yourself at the risk of missing out on the home. That’s because other buyers may now appear who consider $1.8 million a good price and may be prepared to pay $1.85 million.
Alternatively not trying to lower the price on an overpriced home is also a risk – especially if the home is a B grader. When there is little proof of market competition – in a private sale or vendor bid pass-in – you may end up overpaying. In time that will affect your resale, adding risk to the long-term financial benefits of the deal.
On the other hand in a flat and falling market it may be quite a low risk to walk away from an asking price or a pass-in figure that seems very, very high – even if you love the home – as there is little chance of another buyer.
But in other scenarios there is a risk walking away from a home you love, just because you’re reluctant to pay a few thousand dollars extra. Say a property you love has been passed in to you as the highest of three bidders at an auction – why would you refuse to budge on your last bid, even though it was only $1,000 above the other bidder? Sticking to your guns may only mean the underbidder gets a chance to buy and you miss out on a home you really wanted.
Another additional risk buyers often take for no reward is walking away from the auction on Saturday, only to pay the reserve on Monday anyway. The most common time for a deal to be done after a pass-in is that same weekend. So if you are happy to pay the price why not just buy it on the Saturday rather than run the risk of someone else buying it that weekend if buying the home is your main goal?
At the end of the day, any home buyer has to take risks to get rewards – unless you have a policy of only going after homes that nobody else bids on. And buying a home that nobody else wants is not a great strategy for good long-term emotional and financial outcomes.
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" 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 risks and rewards of buying before auction, private treaty negotiations and auction day

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.

[smartcode_project:default project_id=134974 project_image_fid=5427]

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.

[smartcode_project:default project_id=134974 project_image_fid=5421]

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.

[smartcode_project_cta:default project_id=134974]

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."

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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.

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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."

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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.

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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.

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Mal James

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