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So how do you follow-up on last week’s tsunami?  <a href="https://www.propertyobserver.com.au/queensland/wait-a-minute-kochie-there-are-bright-spots-for-property-investment-on-the-gold-and-sunshine-coasts/2012030653715" target="_blank">“Wait a minute, Kochie, there are bright spots for property investment on the Gold and Sunshine coasts”</a> not only was our most popular post, it got national media coverage.
It goes to show that many are sick and tired of the negativity, don’t want to be continually told how bad things might get and crave some balance in media (and other) reporting.  Glib one-liners make easy punchlines, but most things are hard to accurately sum up in 12 words or fewer.
What most do after a good game is have a day of rest, a B-day, so to speak.  I try to have a B-day every month or so.  This is a day when you don’t do anything with an immediate deadline, try to improve on some things that need adjustment, or try something new. Heck, sometimes I just read the articles that I have been carrying around with me for the past month or so.  And if it is a really good B-day, I get time to update my Home News.
Home News is a collection of weird stuff that my youngest daughter, Savannah, and I cut out from the media. It has been going on for years and we now are up to our sixth scrapbook. We are probably breaking several laws, but this all started after I read how Tom Waits does something similar.  Like Tom, I do find it more interesting to read my own news collection rather than the day-to-day drivel.  Also, paraphernalia comes in handy at parties, or for those awkward pauses in conversation, and sometimes even during presentations.
So, here is a sample of some Home News, Matusik style.  Try to enjoy, and please suffer my remarks in italics.
<ul>
<li>An increasing number of cashed-up Australians are buying fake grass because they don’t have time to mow the lawn on the weekend.  Tell me about it.  And why do they need to be cashed-up?  And did you know that Aussies will pay up to $75,000 more for house with a nice lawn? But I don’t think fake stuff really cuts it.  Pun intended.
</li>
<li>Last year, 1.93 million people in Australia’s workforce were aged 55 or over, up from a million a decade ago.  Now Canadian Leonard Cohen describing himself as a “lazy bastard living in a suit” on his new album, Old Ideas, does kinda ring true – he is fond of wearing a suit, but lazy seems a bit harsh.  He is 77 and there is no sign of slowing down, having spent almost three years on tour. Old Ideas has won widespread acclaim, and he says he has enough material for another album.  Ditto Dylan, McCartney and even Springsteen, whose Wrecking Ball has the energy of someone in his 20s, not 60s.  Watch out, youngsters, us oldies are back.
</li>
<li>About 75% of people admitted to surfing the web, using smartphone apps, emailing and texting while on the toilet.  One in five men said they had taken a conference call while on the loo.  Now this behaviour used to be confined to real estate agents.  Who said agents aren’t trend setters?  Do you also know that 9 million (40%) Australians use social networking sites such as Facebook, You Tube and Twitter?  And obviously, many do so while in the smallest room of the house.
</li>
<li>A third of Australians are unaware of how much super they have.  One in eight never check their super balances.  Little I can say here, except that for some reason, many treat their super funds like they aren’t really theirs. It is much easier, in our experience, for an investor to pay money out of a super fund to buy a property, rather than out of current accounts.  Curious indeed.
</li>
<li>Some wit to close… and most will be able to tell it is too good to be mine.  Apart from being nice to their mother, the best advice you can give your children is to live in a marginal seat.  Touché
</li>
<li>Two-thirds of women would choose a good night’s sleep over sex. Whatever I add here will get me in some deep shite.
</li>
<li>Aussie high school and university students are now outsourcing their English essays and maths papers to firms in India, Pakistan and Egypt, for as little as $2.  Well, this speaks volumes.
</li>
<li>In addition to making you groggy and dazed, jet lag makes you stupid too.  Hmmm, stupider maybe more apt.
</li>
</ul>
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
 
 
 
 
 
 
 
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michaelmatusik-49YzLvdmNv

A check in on the home news, for a day of rest

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I like David Koch. I must confess I like Mel, Natalie and Fifi more, but David, by my standards, is a cut above the rest when it comes to daytime television.
But, and this is a big BUT, I like David far less <a target="_blank" href="https://www.propertyobserver.com.au/residential/kochie-sets-his-sights-on-estate-agents-and-journalists-in-queensland-property-catastrophe-stoush/2012013053183">when he delivers blanket statements</a> such as a “property catastrophe is underway in places like the Sunshine and Gold coasts”. I was going to stay out of this, but the negative impact of David’s comments has been substantial. The power of celebrity these days cannot be underestimated, and with it should come much more care.
Yes, both coasts have experienced a sustained property downturn. And for generic lifestyle-orientated property in both locations, the decline in value might not yet be over. For well- understood reasons, the current situation is warranted.
But there are always markets within markets and available advice beyond “just don’t go there”. As I <a target="_blank" href="https://www.propertyobserver.com.au/residential/seven-positive-signs-for-australias-property-markets/2012021453387">wrote a few weeks back</a>, a property’s value is only partially dependent on the broader market conditions. Studies show that about 40% of growth (or otherwise) can be explained by trends in the overall market. The all-important 60% comes down to more individual factors such as location, the style of housing, its design and inclusions, and the income/demographics of the area.
A major driver behind this 60% is new infrastructure. I have googled David Koch and discovered that on many occasions, he supported such claims. David and Libby’s investment advisory columns frequently advocate such.
So why, David, is a place like Kawana (which is on the Sunshine Coast) up shite creek, when one of the largest infrastructure projects in Australia –the sixth largest teaching hospital in the world – is about to start construction? And in support, there is a hell of a lot more going on in the Kawana area on the Sunshine Coast than most know about. It is, after all, about a kilometre away from the beach, so maybe the Sunrise cameras couldn’t find it.
The statistics are somewhat mind blowing. Let me bore you for a minute or two while I recite some of them:
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/matus.jpg"><img src="/images/stories/matusthumb.jpg"></a>
<ul>
<li>The Sunshine Coast University Hospital or SCUH for short will be a private-public partnership with Queensland Health. The short-listed partnership consortiums are Lend Lease, Thiess/AbiGroup and Lang O’Rourke. Construction is planned to start in 2013, with stage one of 450 beds completed in 2016, expanding to 738 beds in 2021. The hospital will create 2,000 construction jobs and 3,500 permanent jobs once complete. It is expected that more than 15,000 people will visit the hospital each and every day.</li>
<li>
Ramsay Private Hospital Co-located with SCUH. Construction is now underway and in late 2013 this 200-bed private hospital will house 700 permanent employees and create 360 jobs during construction.</li>
<li>
SARC or the Skills, Academic and Research Centre, will provide teaching and research within the hospital campus. A $61 million capital investment, with 150 academic and support staff catering for 1,300 students each year.</li>
<li>
KHIP (don’t you love all these acronyms), or Kawana Health Innovation Park, will be a commercial precinct distributed across a number of sites across the hospital campus.</li>
<li>
Kawana Town Centre and medical precinct. The town centre – adjacent to the SCUH, will commence in 2013 too. The town centre incorporates 80,000 square metres of retail, commercial, community and entertainment facilities as well a medium-density residential sites. The town centre is expected to generate about 5,000 jobs during construction and similar in permanent positions upon completion.</li>
</ul>
The “Kawana Health Hub” – for the sake of calling it something – is a very big regional initiative, comparable with a major resources project. Yet few know about it. It is a game changer, a recovery catalyst, a smart job generator, which the likes of David Koch should be spruiking rather than carpet bombing.
For those who are a little poor at maths, the Kawana Health Hub will employ around 2,000 construction workers at any one time between now and at least 2016. In addition, it is projected – yet international case studies of similar major infrastructure projects suggest a higher multiplier – that 10,000 permanent jobs with be created in the locality. The vast majority will be new jobs.
The back-of-an-envelope demand analysis – relax, I have been doing them for close to 25 years and rarely get this stuff wrong – suggests that 10,000 new jobs will create the demand for between 5,500 and 6,000 new dwellings. Yet the approved residential offerings in the region suggests that 3,500 new dwellings can be supplied in the adjacent Birtinya neighbourhood and a further 1,000 new residents on the beachfront parcel known locally as “Bokarina”.
The projected 10,000 permanent jobs, by the way, exclude those generated from new housing construction, which most readers know can also be substantial.
The average daily spend in the Kawana area over the next five years will be $1.5 million. I repeat – $1.5 million per day.
The Sunshine Coast University Hospital alone is valued at $2 billion and represents almost a quarter of the current Sunshine Coast regional economy. It is estimated that it will inject about $700 million into the Sunshine Coast economy every year and will be the coast’s single largest employer.
Now for the life of me, I don’t see how this part of the Sunshine Coast can be labelled “catastrophic”. Oh, and by the way, three-quarters of the Sunshine Coast’s permanent population of 340,000 actually live within the Kawana catchment area.
So, David, instead of labelling the Gold and Sunshine coasts as “property catastrophes” maybe a more subtle message is needed. May I suggest something like:
“There is little doubt that both the Gold and Sunshine coast residential property markets are doing it tough. Buyers do have a lot of choice and for generic lifestyle-orientated stock; asking prices are still under pressure.
“Astute buyers of older second-hand stock, however, can now buy below replacement cost. Investors should always focus on property adjacent to existing and especially new infrastructure. The most successful residential investors also hold for the long term.
“There are buying opportunities on both coasts. You just need to do your homework first.”
Now, I wonder if this column will get me a gig on Sunrise?
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
 
 
 
 
 
 
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Wait a minute, Kochie, there are bright spots for property investment on the Gold and Sunshine coasts

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It has been put to me that Queensland buyers are deferring signing contracts until after the state election on the March 24, as they expect a change in government and the Liberal National Party has promised to reinstate the stamp duty concession on owner-resident property.
Here is my response.
Firstly, something seriously needs to be done about the taxes and charges on property transactions and development in this country. When factoring in both buyer and seller costs, Australia has the fourth highest property taxes in the world at just under 14% of the property’s value. Only Belgium, France and Greece are higher. Total property taxes average around 8% across the western world and are under 5% in the US, New Zealand and the UK.
If we are going to keep stamp duty on property sales, then at least we can make it uniform across the country. An investor paying the median price for a property in each state/territory can pay between $10,000 and $27,000 in stamp duties, depending on location. The same applies for owner residents and fluctuations for first-home buyers, which are the greatest of all, with first timers in Queensland, Western Australia and Northern Territory paying virtually nothing at all, while the transfer duty for first timers can be as high as $23,000 for an average-priced home in Melbourne and close to $21,000 in Canberra.
Secondly, despite the increase – about $8,000 on average – Queensland still has the cheapest stamp duties on established property across the country. See the two tables below.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/matufeb291.gif"><img src="/images/stories/matufeb291thumb.gif"></a>
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/matufeb292.gif"><img src="/images/stories/matufeb292thumb.gif"></a>
Thirdly, the increase has not stopped the market much at all – some real estate agents say it has – but the real factor is the number of resales on the market across south-east Queensland and the amount of choice buyers have, and hence the amount of discounting vendors need to do to make a sale.
The timing of the increase – June 2011 – wasn’t great. It gave buyers more bargaining power – but again, its impact on sales volumes last year wasn’t that great. Sales are picking up now – been doing so from about late October last year – yet the higher stamp duties still apply. If the market was rising last year it wouldn’t have even been noticed. The proof is regional Queensland; it has had little to no impact in Townsville, Mackay, Gladstone, etc.
Yet, some buyers might be now deferring buying until after the election to avoid paying higher stamp duties. This illustrates how government intervention distorts the market – i.e. boosts, first-home buyers’ grants and concessions.
And finally, instead of reinstating the stamp duty concession for owner-residents buying established property in Queensland, the successful party should remove stamp duty from off-the-plan transactions. The impact – as shown in both Victoria and more recently New South Wales – should be immediate and very positive.
Our work for the Property Council of Australia late last year found that removing stamp duty from off-the-plan sales is likely to increase new housing starts across the state by between 10% and 15% per annum. Yes, every year!
In contrast to established homes, stamp duty on new dwellings across Queensland is high when compared to New South Wales and Victoria. See the table below.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/matufeb293.gif"><img src="/images/stories/matufeb293thumb.gif"></a>
Queensland needs a competitive advantage.  The state’s competition is New South Wales and Victoria.  Dropping stamp duty for off-the-plan purchases will help get Queensland back to a more level playing field.
It is sad that such an important issue as this one is buried in the political charade.
I truly believe that governance is too important to be left in the hands of the public at large. One of the major reasons we get served up such political (and policy) nonsense is that it must appeal to the lowest common denominator. Instead of having leaders with gravitas and policy for the greater good, we have celebrities (and poor ones at that) and pork-barrelling.
Removing compulsory voting would be a step in the right direction.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
 
 
 
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Queensland needs stamp duty reductions to level the playing field

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At last Friday’s Property Council of Australia gig – see <a target="_blank" href="https://matusikmissive.wordpress.com/2012/02/17/missive-extra-next-stop-brisbane/">here</a> – there was a lot of discussion about valuations currently coming in well under purchase price.  The difference between the price paid by the buyer and the bank valuation is often high – more than 20% – and the differential is spreading.
When asked about this situation, I replied that the solution should be a relatively simple one.  Firstly, bank valuers should be paid more – they carry the risk, not the bank – and this, in theory, would allow them time to conduct the appropriate research, and secondly – <a target="_blank" href="https://www.propertyobserver.com.au/developments/a-tale-of-two-queensland-buildings-an-investment-property-s-worth-should-be-determined-by-income/2011111552374">as we noted back in November</a> – rental return should determine value, not what a previous buyer paid.
I started tweeting last week – yes, I am slow to cotton on – and asked my small Twitter following whether they would like to hear more about how a bank valuation is actually done The replies were a resounding yes.  So here goes – bank valuations 101.
By the way, you can follow me on Twitter <a target="_blank" href="#!/MichaelMatusik">here</a> and each day – assuming there is something to say (you won’t find out what I had for breakfast, nor my favourite TV show or about the book I am currently reading), we will let you know…in 140 characters or fewer! *
If you require finance to complete the purchase of a dwelling, all financiers seek a valuation to ascertain the value of the property that is being offered as security for the loan.  Licensed valuers must base their opinion on hard evidence and take legal responsibility for any information they provide.
Australia’s four major banks have a panel of valuers who are assigned to value a particular property through a process called “Valuation Exchange” (Valex).  Smaller financiers often use the same valuers as the “big four”, although there are many valuers who are not part of the Valex system.
To assess a property’s value, a valuer must inspect the property, record details on the number and type of rooms, along with fixtures, fittings and any improvements.  A property’s unique attributes will also be taken into account, such as:
<ul>
<li>location</li>
<li>building structure and its condition</li>
<li>standard of presentation and fit-out</li>
<li>standard of fixtures, fittings and facilities</li>
<li>zoning and whether and planning restrictions apply</li>
</ul>
The valuer combines these attributes together with recent comparable sales in the surrounding area and prevailing market conditions to produce a valuation report.  Several photographs must also be taken to support their findings.
The identification of appropriate comparable sales is often the most contentious issue, especially in relation to new apartments purchased off the plan.  There are a number of reasons for this, as detailed below.
<ul>
<li>Comparable sales should be recent (less than six months old). This is problematic when the number of sales is low (perhaps because of a limited supply of dwellings for sale) or because of economic factors.  The number of dwelling sales last year in Brisbane, for example, was well below historical averages as a result of the January 2011 flood.  This has meant that identifying the required number of comparable sales has become that much harder.</li>
</ul>
<ul>
<li>Sufficient analysis of alleged comparative sales must occur so that family transfers and distressed sales are not shown as market transactions.  For example, one of our developer clients arranged for one of its newly completed apartments to be valued by several valuers independent of the banks.  The first valuation came in at $720,000.  The second at $730,000 and the third at $595,000!  Why was the third valuation so low?  Because the valuer in question had erroneously based the valuation on a “distressed sale” in a nearby project.  Such sales are considered to be inconsistent with the concept of “market value” as defined in the Australia and New Zealand Valuation and Property Standards.</li>
</ul>
<ul>
<li>Banks and their valuers are reluctant to use developer sales (either made off the plan or after completion) in competing projects as comparable sales.  This is based around the mistaken belief that a developer sale does not represent the “true market“.  In some locations – especially where there is no sales history for dwelling types such as a new subdivision in a green-field area – or where sales volumes are lower than usual – this leads to valuations that do not truly reflect a property’s worth.</li>
</ul>
However, the Australia and New Zealand Valuation and Property Standards state that where the property to be valued is within a new development and is being purchased from the developer, sales from other comparable developments should be considered as a cross-reference.  In our view, this means developer sales in other projects can be used as sales evidence to support a valuation.
<ul>
<li>Valuers usually do not use sales made to interstate and overseas buyers as comparative sales, based again on a mistaken belief that non-local buyers are uneducated and pay higher prices than local buyers.</li>
</ul>
<ul>
<li>In Queensland, clause 27c of the sales contract requires all agents to list how much commission they charge.  Valuers – on instruction from mortgage insurers and banks – often reduce the purchase price by the amount the agent is paid in excess of the standard Queensland sale fee of 2.5%.  This is based around the belief that the developer is increasing the purchase price by anything higher than the standard REIQ commission.  Our understanding is that this clause only applies in Queensland.</li>
</ul>
Again, <a target="_blank" href="https://www.propertyobserver.com.au/developments/a-tale-of-two-queensland-buildings-an-investment-property-s-worth-should-be-determined-by-income/2011111552374">as we wrote a few months ago</a>, the distribution of costs should have no bearing on the end value of a product.
Finally, remember that you as a buyer can challenge a valuation if it appears too low.  In particular, keep in mind that comparable sales evidence needs to be “like for like” as far as possible, especially insofar as proximity (to a railway station for example) or height above ground, view, aspect, ceiling height, facilities and so on.  Furthermore, valuers can utilise a much wider range of data than just comparable sales in any valuation report.
*Pretty please (with sugar on top)…join <a target="_blank" href="https://www.twitter.com/MichaelMatusik">my Twitter space</a>.  My aim is to have more followers than <a href="https://www.twitter.com/hotspotting">Terry Ryder</a>.  He has 1,432 followers and has posted 1,841 tweets.  I have just 129 followers, with 35 tweets.  I am winning the race at 3.7 followers (v. 0.78) per tweet, but I need numbers!
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
 
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Property valuation 101

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Yes, there is some good news out there.  It isn’t making the headlines, but it is out there nevertheless.
Here are seven positive points to help you make it through your real estate day.
<ol>
<li>The vacancy rate is tight.  In most capitals and major regional markets it remains under 3% and is much lower in Brisbane, Sydney, Perth, Canberra and central Queensland.  Rents growth is starting to accelerate, and we know of numerous examples where more than 30 rental submissions are being received for vacant rental dwellings across Brisbane.</li>
<li>Sales have improved since mid-year, and those vendors who meet the market are selling – and now, often quickly.  It is still a buyer’s market – with the high supply of stock for resale – ensuring that you need to realistically price and market your property well in order to make a sale.  Investors are starting to take their properties off the market and are renting them out again, as they are attracting good rental yields.</li>
<li>Last year’s interest rate drop is having some impact – with the number of owner-occupier loans up 2% in December.  Housing investment loans rose 7.5% in December, after a 2.7% rise in November.  First-home buying activity is currently at a two-year high. Generic prices might be still falling, but there are signs that the housing sector is starting to turn the corner.  The latest housing finance data provides a degree of encouragement.  Home loans have now increased for nine consecutive months, and the investor market is doing the bulk of the heavy lifting.   We have been saying for some time that it is the investors who will get the housing market back on its feet.</li>
<li>Hamilton Harbour – one of the first major Queensland apartment projects to face settlement since the GFC – is settling well.  No, that isn’t strong enough – it is going great guns!  I nearly said gangbusters, but that might be taking it a bit too far. At the time of writing, 89% of the 435 apartments sold since early 2009 have settled, with an overall 95% success rate likely by the end of this month.  <a href="https://www.propertyobserver.com.au/queensland/brisbane-s-rash-of-new-developments-could-have-trouble-getting-financing/2011072050860" target="_blank">We originally wrote about Hamilton Harbour in July last year</a>, stating that it should be on the industry’s “must-watch” list; it was a litmus test for the Brisbane market – a beachhead, if you will.  Sadly, few seem to be watching, and the media are not writing about it. This is big news for Brisbane-town. Other, lesser projects (if you ask me), also appear to be settling well. The average price of a settled apartment in Hamilton Harbour is $526,000, with just over $200 million worth of property settled so far.  Over 220 apartments have been leased in both the towers since late November last year.  The average gross rental yield – based on evidence to date and being rented out for 50 weeks per annum – is 5.3% across the investment stock.  The one-bedroom and one-bedroom with study units are achieving the higher yields.</li>
<li>The Melbourne Institute-Westpac confidence survey shows that late last year, price pessimists in Brisbane dominated (-10%) versus this month’s positive result of 27% (percentage of those expecting a rise minus percentage expecting a fall) – a 180-degree turn in just three months.  The Good Time to Buy a Dwelling Index is up in Queensland and also in Western Australia.  Queensland’s pending state and local elections will hopefully lift confidence higher.</li>
<li>While <a href="https://www.propertyobserver.com.au/economy/be-careful-what-you-wish-for-on-interest-rates-michael-matusik/2011103152145" target="_blank">we don’t need to build as many new homes as we once did</a>, outside of Melbourne, Adelaide, Canberra, Cairns and the Gold Coast, the new housing markets aren’t oversupplied. There is a lot of nonsense written about supply – published often by young’uns who can count (well, sometimes just) but have little understanding about how the new housing market actually works.  At present, for example, there is a lot of commentary (and press) about a pending oversupply of new apartments across inner Brisbane.  Now, whilst there is lots of new mooted apartment development – approved in council – the fact remains that not enough new product is actually being built. Over the last five years for example, 13,000 new dwellings were required to accommodate the population growth, yet – based on the official statistics – just 8,017 new dwellings were approved.  Last year, just 1,902 new dwellings were approved, against an annual average demand for 2,650 new housing starts.  At present there is a serious short-fall.</li>
<li>To finish, everything cycles, including the property market. The Brisbane market, for mine, is at six o’clock on the property clock or at the bottom of its cycle.  Many investors try to pick the bottom of the market.</li>
</ol>
Yet, the direction in which property values travel is only partially dependent on the broader market conditions.  Recent studies show that about 40% of growth (or otherwise) can be explained by trends in the overall market.  The all-important 60% comes down to more individual factors such as location, the style of housing, its design and inclusions, and the income/demographics of the area.
However, a 40% swing in your favour shouldn’t be sneezed at, especially after what the Brisbane market has been through of late.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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Seven positive signs for Australia’s property markets

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Last week I gave an address to about 400 members of the Victoria branch of the UDIA.  “I appreciate the honesty and directness,” quipped several from the audience after the event.  But they were just being nice – I think many wanted to stab me, or at least shut me up.  My MO wasn’t to rub anyone’s nose in it, just give out some tough love.
Usually the media is informed about such events and they are spruiked to all and sundry, but not this time.  While some in the development industry in Melbourne appreciate that things are going to get tougher, too many are still hoping that things will somehow magically improve.  That was what too many in development across Queensland thought too, in late 2007.
According to Mark Twain, “history may not repeat itself, but it does rhyme a lot”.
Here’s what I said: 
Click to enlarge
<a href="/images/stories/matchart1.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matchart1thumb.gif"></a>
The new housing market will remain tough across Australia and especially in Victoria for some time.
While we do not expect the market to crash, it will be increasingly difficult to make new sales.
People will, of course, purchase new property, but the property on offer will need to be better tailored for, and marketed to them.
The development industry has become quite sloppy in recent times.  Sales in the southern states (Victoria largely) have been too easy and the attention to service/detail limited at best.
<img src="/images/stories/matusikclock.jpg">
Things are now changing.  Melbourne is past its peak and is at one o’clock on the property clock.  The Victorian market is now oversupplied with both new and existing stock, confidence is low and there are fewer jobs being created today than in the recent past.
End prices are also high and somewhat unaffordable.  Rental growth, while still positive, is now sluggish and is likely to remain so, with the city having the highest vacancy rate of any Australian capital, at over 4%.
Click to enlarge
<a href="/images/stories/matusikchartlarged.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matusikchart.jpg"></a>
Brisbane, my home town, in contrast is at the bottom of the cycle and is about to experience a recovery.  As noted above, Brisbane was in the same position as Melbourne was in mid-2007.
Click to enlarge
<a href="/images/stories/matchart2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matchart2thumb.gif"></a>
It has taken four years – last year’s flood did delay Brisbane’s upturn by about a year – for Brisbane to start showing signs of improvement.  It could take Melbourne this long too – at best two to three years – to recover.  History – as well as Mr Twain – supports our claim.
<img style="border-style: initial; border-color: initial;" src="/images/stories/matusikclock2.jpg">
There are several things that the development community can do to improve sales.
<ul>
<li>Make their projects look different.  Buyers tell us that they are all too generic.</li>
</ul>
<ul>
<li>Provide a lot more detail about future development in their project itself and in the area.  Detail is expected regarding the siting of homes and such things as outside entertainment areas, bedrooms and air-conditioning.  In a perfect world, developers would be best to sell built stock.</li>
</ul>
<ul>
<li>Don’t hide anything from the public, including full price lists and dwelling designs.  They know much more about the project and the competition than sales people give them credit for.</li>
</ul>
<ul>
<li>Implement a loyalty system.  Repeat customers should be treated as such.</li>
</ul>
<ul>
<li>Match sales staff (demographic, experience) and the décor, interiors and furnishings (the actual product design of course) to the demographic.  A 25-year-old single selling to a middle-aged couple doesn’t work too well.</li>
</ul>
<ul>
<li>Make much more of your brand and development pedigree.  Buyers want to know more about who you are.</li>
</ul>
<ul>
<li>Relax at the launch.  Don’t put too much pressure on potential buyers then – the time to close is much later in the sales process.</li>
</ul>
<ul>
<li>Follow up constantly and not just before settlement.  Buyers want to be informed.</li>
</ul>
On a final note – people buy something new because it should be less hassle than buying second-hand and fixing it up.  Developers need to ensure that the buying experience is hassle-free, too.
New developments meet today’s strict environmental compliances, which help save buyers money and also give them peace of mind when it comes to resale.
Click to enlarge
<a href="/images/stories/matchart3.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matchart3thumb.gif"></a>
For investors, buying something new often provides a better return.  This is due to the attractive depreciation allowances that come with buying new over old – something that too few investors understand – and that new property, on average, has 15% to 20% more value in it than an older property in the same area.  Think about the true cost of a new kitchen, bathrooms, carpeting, painting, landscaping and again all the ESD stuff.
Want a copy of the presentation?  Well just click <a href="https://matusikmissive.files.wordpress.com/2012/02/matusik-udia-victoria-feb-2012-speaker-notes.pdf" target="_blank">here</a> to download.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
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Melbourne's easy sales days are over, with new housing market oversupplied, unaffordable and with sluggish rental growth: Michael Matusik

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Last month – yes it is February already! – the mainstream media ran headlines proclaiming that no jobs were created across Australia during 2011 and the result was the worst in 20 years.  No arguments there.  Our unemployment rate remains at 5.2%, but the participation rate fell as job seekers have given up the search for positions.
In addition, after holding staff levels steady for about 12 months or so, businesses are starting to lay people off.  So, too, is the public service.  But the real reason for the lack of job growth here has little to do with Europe or the global economy, and much to do with current government policies.
The modern award system under the Fair Work Act isn’t working.  In Queensland, regulation of retail trading hours is costing about 10,000 new jobs.  God knows what negative impact the carbon tax will have on job creation.
In addition, politics, rather than economics (yes, the more sceptical will say “what’s new?”), is motivating the federal government to get its budget back to surplus in time for the next election, which, in concert with softer tax revenues, requires public sector staff cutbacks.  There are way too many public servants for mine and I usually love a good PSC (public sector cull), but right now it is just adding to our woes.
And of course, there is the elephant in the room – a lack of leadership.  All parties are a joke.  There isn’t a statesperson amongst our current political set, Campbell Newman being the only exception.  Yes, I am biased, but really where is our Howard, Costello, Hawke or Keating?  It is too much to ask for another Menzies or Kennett?  I have a T-shirt with Howard’s face on it; underneath it says, “Missing me yet?”  Well maybe not exactly, but we definitely miss Howard’s budget surplus.
I remain hopeful that the world sorts out its mess and that we won’t enter a recession.  Investment in mining and energy projects is likely to keep our growth rate in the black.  But unemployment is likely to rise during 2012.  How far is uncertain, but as high a 6% isn’t out of the question.
We could improve our employment situation enormously and create many more jobs if we were to tackle our declining productivity, cut futile and costly regulations, abolish inefficient state taxes and embrace a much smaller government.
Official interest rates will now drop, and several times during 2012, but these might not work as well as they have done in the past.  Firstly, confidence is shot.  We need elections (and someone to believe in and vote for).  Secondly, the banks will dribble out only part of the cash rate cuts – they cannot afford to pass on all of the cuts.  Thirdly, we are saving more, due to economic uncertainty and our ageing demographic, so a drop in the savings bank rate is an income cut for many.  And finally, mortgage holders will use any cut in interest rates to help pay off their debt faster, so they will leave their repayments as they are.
Whilst we bemoan our flat job market, we can thank our lucky stars we don’t live in Europe, where unemployment is approaching 10% in many countries and is at 15% in places like Ireland.
The official labour force statistics make an interesting read.  Well, maybe that is taking it too far.  There are lots of anomalies and it pays to know what you are really looking at.  For example, Queensland’s unemployment rate, as at December last year, was 5.1%, which is down on the 2011 annual average of 5.5%, yet 1,300 jobs were lost during the year.
More enticing (yes, I am now pushing your interest to the limit) are the figures for the Gold Coast.  Unemployment across all of 2011 averaged 6.6% across the Goldie but was 4.6% by year’s end.  There were 7,100 jobs created across the entire Gold Coast last year, with 9,000 being created in the city’s southern flank and 1,900 lost across the northern suburbs.
Like all statistics, country, state or even regional averages don’t apply to every area.  Some places are always doing better than others.  It also pays to know that the ABS employment figures are based on place of residence and not place of remuneration.  The jobs “created” on the southern Gold Coast weren’t necessarily there.  More residents living there had jobs by year’s end.  Many actually work far away from the Gold Coast and commute.  Many now fly in/fly out of Coolangatta airport and work the mines.
Welcome to another new norm.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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Unemployment is on the rise - welcome to the new normal

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The proliferation of information (spin really) about climate change and our own carbon tax doesn’t mean that it has become more understandable.  In fact, the opposite rings true.

Who really knows what happened in <a href="https://www.crikey.com.au/2011/12/12/what-i-did-on-my-trip-to-durban-by-greg/" target="_blank">Durban</a> last month, except that the Kyoto Protocol has been taken out of its casket and put on critical life support; the Gillard government got a breath of fresh air; some carbon-cutting decisions will be made in 2015 and then again in 2020; and $100 billion per year (yes $100 billion every year) will be spent on a Green Climate Fund.  Our contribution – if financing is direct – towards this fund will be between $2 billion and $3 billion per year.

Oh, and of course, there will be an even bigger United Nations climate change summit next year.  This time it is in Qatar. Qatar and a climate change summit is a perfect fit if you ask me as it has – well, according to Wikipedia – the world’s largest per capita production and proven reserves of both oil and natural gas.  Qatar also has the highest and fastest-growing GDP per capita in the world.  The main drivers behind this rapid growth are the production and exports of liquefied natural gas, oil and petrochemicals.  How bloody ironic!

Most don’t know that these talk-fests have been going on since the mid-1990s, when they were informally known as the Earth Summit.  Also ironic, again if you ask me, is that the 18 annual conventions held to date have delivered nothing but hot air.

Closer to home, the carbon tax is now law.  Starting from July 2012, a carbon tax of $23 per tonne will be levied on the 500 biggest polluters in Australia.  This will rise by 2.5% per year until an emission trading scheme kicks in.  The 2015 starting date for such a scheme is now somewhat up in the air, given the Durban outcome. Nevertheless, Climate Change Minister Greg Combet has declared that “Durban has delivered”.

Now depending on whose figures you use, it is suggested that about 10% of your carbon footprint is attributed to your own transport, another 10% is embedded in your home and another 17% or so goes into running that house.

The tell-tale figure is that about two-thirds (63%) of one’s carbon footprint is in what you consume.  So if you want to do anything about climate change, then you should focus on what you consume.  For example, our home household electricity bill – when using one of those online carbon tax calculators – will rise by about $300 or 10% in 2012-13.  The air-conditioning and pool filter are the two biggest culprits.

For the construction industry, the impact of the new tax falls into two categories: cost and demand.  In both cases it is difficult to determine the impact of the carbon tax with any great clarity.

In terms of cost, the new tax will affect the price of building materials and in theory, overall construction costs should rise.  But here is the stupidity of the whole thing, many of the trade-exposed industries, such as cement, steel, aluminium and glass-making qualify for up to 95% shielding from the carbon tax.  So while the MBA and HIA claim that costs will rise by as much as 2% or around $6,000 to build the average new home from July 2012 (and by as much as $13,000 over the life of a 25-year home loan), I do think the financial impact will be much less and more likely than not, negligible.

In fact, the two 0.25% recent rate cuts have delivered the average home owner twice as much savings (close to $28,000) in the interest payments over a 25-year period.

In addition, if you are building a home you can request a number of easy, cost-effective ways to reduce the amount of embodied carbon and energy contained within a new home.  This, too, will reduce its cost.  For example, you can specify fly-ash as a substitute for cement in concrete, which drops the embodied energy like a stone without – as I am told by <a href="https://www.lifestyle.com.au/tv/grand-designs/" target="_blank">Kevin McCloud from Grand Designs</a> – affecting a building’s structural integrity (whatever that means).

The effect of the carbon tax on housing demand is even more complex.  The scaremongers suggest a fall of about 17,000 new starts (about 12% on current demand) once the carbon tax starts from mid-next year.  But I don’t think it will have much impact on new housing starts at all.  In fact, it might get things moving again, especially if suppliers get innovative about building materials and the end housing designs on offer.  Again, the key to minimising the impact of the carbon tax is to reduce consumption.  New houses are much more energy- efficient than old, established homes.  More might start buying new homes over old ones again.

Now, for those malcontents who keep trying to push me down a “carbon tax will make new housing much more expensive” path – rack off.  Just because I think that a carbon tax and the whole climate change industry is a gross misuse of our time and money, and that we have much bigger things to resolve in the world than pretending to do something about an issue over which we have no real control – outside of China, India and America playing ball that is – doesn’t mean that I will roll over and spruik the housing industries’ dogma.

Nobody is listening anyway.  The number of respondents to online carbon tax polls rarely number in treble digits these days.  Blog replies rarely exceed 10.  Only 12 months ago literally thousands replied.  Tired of it all?  Or just more concerned about other things, like staying employed, paying the mortgage and keep ahead of the utility and school fees?

Both, me thinks.

PS Personally I would be more interested if I got the complete Grand Designs series for Christmas like I asked Santa for.  Well, maybe next year.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
 
 
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Scaremongering over the carbon tax just a lot of hot air

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This column is likely to get me shot, and mostly likely with both barrels, especially given that tomorrow is Australia Day, but the Gold Coast 2018 Commonwealth Games is likely to do more damage than good. It is an absolute waste of money and diverts attention away from the things that really need doing. But that, of course, is part of the government’s plan. Since the birth of Christ, at least, it has been that way.

It all started in AD80, with the inaugural games of the Flavian Amphitheatre, on the orders of the Roman Emperor Titus, to celebrate the completion of the Colosseum (then known as the Flavian Amphitheatre). Vespasian began the construction of the amphitheatre around AD70 and it was completed by Titus soon after Vespasian’s death in AD79.  After Titus’ reign began with months of disasters – including the eruption of Mount Vesuvius, a fire in Rome and an outbreak of plague – he inaugurated the building with lavish games that lasted for more than 100 days, in an attempt to appease the Roman public and the gods.

And the Roman games continue today, having morphed into their own modern-day “cargo cult” – stage a sporting event and the money will come. Today, we don’t waste public money appeasing the gods, but we do so in an attempt to make the public feel good and distract us when things aren’t going so well.

The Gold Coast is just the latest city to sign up for membership with its rejoicing in hosting the Commonwealth Games. The idea that a city will gain wealth – or in the Gold Coast’s case, rebuild confidence and rejuvenate the city – by building sporting arenas and paying athletes, while often going into considerable debt, is bordering on laughable. All the more so when the event lasts just two weeks, is contested and watched by very few (and especially not by the Chinese), and won’t address what really needs to be done to improve the Gold Coast.

<a href="https://www.propertyobserver.com.au/residential/jury-is-still-out-on-claims-of-commonwealth-games-boost-for-gold-coast/2012011753057">Earlier this month </a>we asked readers to provide us with their thoughts on this matter. Three out of five respondents thought that the games would not have any real impact on the local property market. Those who did – and some sent through some quite lengthy emails – could only really offer wishy-washy statements about it improving the “mood, sentiment and confidence” as a means of boosting the Gold Coast economy. What tripe!

Most telling was that 85% of our respondents would not invest on the Gold Coast because of the games. The more gullible think that property prices will rise on the Gold Coast as they did in the lead-up to the Sydney Olympics and especially after the 2006 Melbourne Commonwealth Games. But broader review of the statistics shows that prices rose much faster in many other locations at the time, suggesting that property prices are influenced by much wider factors than a local sporting event.

Critical analyses of the claims about new job growth, the boost in retail spending and lift in tourist numbers that apparently come from such events will also reveal similar findings. Look back through the history of economic impact reports from major events and you’ll quickly find examples of economic disasters that had been painted as bonanzas.

Brisbane City residents are still burdened with the upkeep of underused sporting facilities left over from the 1982 Commonwealth Games. Queensland Treasury doesn’t even know if the cost of those games has ever been repaid. More recently, a survey of New Zealand businesses found that nine out of 10, and many of them retail and tourist-based, didn’t experience any boost in trade as a result of last year’s Rugby World Cup.

There is little doubt that “hallmark” events, which can include sporting events, can help revamp urban landscapes. That might have been the case in Hambantota, had it won the right to host the 2018 games. But given where the money is planned to be spent on the Gold Coast, its capacity to overhaul is limited at best. Maybe in the future an “urban revamp measure” should be the key judging criteria for sports-related events, rather than just how much money is thrown at the event.

For mine, the Gold Coast faces some serious issues. The $2 billion games budget would have been much better spent on fixing its problems. The coast – with close to 600,000 permanent residents and close to 4 million overnight visitors per year – needs the be governed accordingly and not as a tin-pot local authority; it needs to retool its tourism offering to suit the Chinese audience; it needs to dramatically increase its industrial land bank; get a bio-tech based industry (or similar) flourishing; facilitate fly-in/fly-out workers and build many more detached and semi-detached homes.  It doesn’t need to blow $1.97 billion on a two-week sports carnival in seven years’ time.

We just don’t have that kind of money to waste on such things anymore. No, I am not anti-sports; I just think it is time to do much more with taxpayers’ money.

I will leave you to enjoy your Australia Day tomorrow with two more thoughts.

Firstly, anyone in property who talks up the virtues of the 2018 games on the Gold Coast property market isn’t worth your trust. There had better be much more to their sales track than just that. Secondly, hallmark events should be treated like “gravy”. At present, the Gold Coast is close to starving. It needs meat and potatoes on its plate, not trimmings.

And surprise, surprise – the latest annual instalment of US-based Demographia’s <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=98acfcd992&amp;e=735ed4729e" target="_blank">global housing affordability report</a>, shows that despite an improvement in affordability in 2011, Australian housing remains “severely unaffordable”.  Sydney and Melbourne are third and fourth on the list of most unaffordable major markets, below Hong Kong and Vancouver. Well you know what we think – but if you missed it, try clicking <a target="_blank" href="https://matusikmissive.wordpress.com/2011/02/09/affordability/">here </a>and <a target="_blank" href="https://www.propertyobserver.com.au/residential/housing-affordability-in-australia-is-not-as-dire-as-you-think/2011121352823">here.</a>
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
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The Commonwealth Games are a waste of Gold Coast taxpayers' money: Michael Matusik

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We all know that the Gold Coast won the right to host the 2018 Commonwealth Games. Congratulations to Mark Stockwell and his team.
This two-week event will be held in April 2018. Some amazing claims are already being made as to the impact of such an event on the Gold Coast market and economy. While some statements seem to have gone through some rigour, others are just utter spruiking – “the Gold Coast will be exposed to billions of people around the world as preparations unfold in the lead-up to April 2018” and “property markets will reap rewards too” are two recent examples.
So far, we understand that these games will cost $1.97 billion, with local taxpayers expected to foot close to three-fifths of the bill. Up to $500 million of this money will be spent on sport and infrastructure projects. Queensland will also go $1 billion further into debt to host the event. But apparently 30,000 new jobs will be created and $2 billion worth of economic benefits will be derived. It is estimated that 120,000 extra tourists will visit the coast because of the games.
Out of the 53 sovereign states that make up the Commonwealth of Nations, just two competed for the 2018 games, with the other being Sri Lanka. Hambantota budgeted to spend just $650 million if it won the right to hold these games.
Melbourne held the 2006 Commonwealth Games – 245 events were held across 17 sports; 71 countries, territories and bodies competed and 635 medals were awarded, of which Australia won 222 or a third; and when combined with England and Canada, these three nations took home two-thirds of the spoils.
As the tone above indicates, I remain very sceptical about the real economic impact of such sporting events.  But before we finalise our post on this topic – to be released in coming weeks – we are seeking your thoughts.
Please <a href="https://www.surveymonkey.com/s/MatusikCommonwealthGames" target="_blank">click here</a> to participate.  It will only take a minute or two of your time
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
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Jury is still out on claims of Commonwealth Games boost for Gold Coast

Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<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/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

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North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

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Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

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More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Michael Matusik

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