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There are few topics where property analysts and media commentators agree. However, there is no dispute that 2013 was a blistering year for property. In December, we were seeing signs that the market was cooling a little. Properties were still selling, but prices were not as outrageous and bidders at auctions were not as bullish.
Quite frankly, buyers were exhausted after a year of pounding the pavement and constantly missing out. Selling agents too were happy to take a much needed break after running endless sales campaigns at a cracking pace, often condensing the marketing from four weeks down to three, or even two weeks.
Now that we are a few weeks into the New Year for the property market, it has become quickly obvious that the Christmas break was merely a short breather and not the start of a levelling of the market. At least this is the case in Sydney.
At one of the first quctions for 2014, a three bedroom unit in Chatswood quoted at "over $850,000" sold under the hammer for $1 million. There were approximately 15 registered bidders, with an opening bid of $740,000 going up in increments of $20,000.
At every single open inspection that I have attended this year, numbers have been high. One sign that the market is strong is when a weekday open inspection gets a double digit attendance. Another sign of a hot market is when Auctions start getting brought forward by a week.
For the past couple of Saturdays, several properties we inspected saw 50-80 groups through at their very first open. I had to stand in line to enter every single property that I inspected. Buyers were overheard asking for one contract after another and being quite open about their interest in the properties.
Savvy sales agents are intentionally trying to slow down their marketing campaigns and not taking offers in the first couple of weeks as they either want to push buyers to auction, or try to intensify competition pre-auction. Many are providing strata search reports for units but not in a hurry to disseminate it in their effort to get more prospective buyers through. Many agents are also underplaying the level of demand for properties so as not to scare off buyers or raise their vendor’s already high expectations.
Time will tell if 2014 will turn out to be a re-run of 2013. Certainly the early signs show that buyer demands are strong. One factor that will determine whether prices will ease is the supply of new stock. As is human nature, when properties sell for a high price, home owners and investors are motivated to put their properties on the market. If enough supply enters the market, prices will level off. But for this to happen there needs to really be a continuous stream of good properties entering play each week. For now though, demand seems to far outpace supply and even the less desirable properties are selling fast and high.
Tips for Buyers: If you find yourself continually missing out, you may need to make significant changes to your search criteria and possibly look elsewhere. Consider hiring a buyer's agent who can help you to figure out where the best opportunities lie. Most importantly, stay focused on buying a stellar property. Don’t buy a less-than-average property because you are fed up of the search process.
Tips for Sellers: If you are selling and buying again, try to minimise the lag time between the two transactions. In a hot market, it is often better to buy before you sell. Otherwise you might get caught out having sold well, but then prices rise significantly before you find something else to buy. Be sensible with your price and don’t let greed dictate your decision-making at the expense of other factors.
 
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/">OH Property Group</a>, a Sydney-based buyer's agency. Oliver is a licensed real estate agent and holds the Chartered Financial Analyst (CFA) designation.
You can <a href="https://www.facebook.com/ohproperty">like Oliver on Facebook</a> or <a href="https://www.twitter.com/ohproperty">follow him on Twitter</a>.
 
 
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oliverstier-Cu9aF99VRm

Sydney property off to a roaring start in 2014

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There is a common misperception among many property buyers that the higher the budget, the easier it is to find a property. What I have learnt from years of being a buyers’ agent is that no one’s budget is ever enough. Those with a budget of $800,000 wish they had $850,000. Likewise, those with $4 million seem to love homes that are $5 million. To desire properties slightly beyond reach seems to be human nature.
Despite what many may think, buying a premium-priced property (north of $3 million for the purpose of this article) can be quite challenging and frustrating for many reasons.
There are usually very few premium properties on the market at any given time, as compared with moderately priced ones.
Many premium properties are not publicly advertised, and a lot of sales happen silently. For example, I receive dozens of emails each week from selling agents Sydney-wide with information of premium silent listings. This is largely due to vendors wanting to maintain privacy and to avoid losing face among their social circle if their property does not sell quickly or sell for a good price. In this respect, having a buyers’ agent who is well networked with selling agents can be the key to finding the right property.
Higher-end properties tend to only be opened to view by appointment. To maintain the privacy and security of the vendors and their homes, very few have weekly open for inspection times. This is quite inconvenient for property buyers who need to make lots of calls to schedule appointments, trying to line them up to minimise a lot of wasted time.
The more expensive the properties, usually the wider the price range quoted by the selling agents. To some extent, this is due to the fact that there are usually fewer comparable sales to benchmark against. This is quite unlike an apartment building, for example, where there are lots of comparable sales data and prices essentially fall within a narrow range. In some circumstances, the selling agents themselves are unsure of what the price should be, and they resort to using expressions of interest to gauge the price or merely going by what the vendors want.
Properties in the premium price bracket tend to be quite unique one way or another (often due to a difference in outlook/view or level of finishes, for example). This makes it very difficult to compare sales data.
Obviously at the higher end, just about all the properties I inspect are very nice in their own way. The difficulty is in finding one that meets the exact needs/wants of my clients. A higher budget does not mean that the ideal property is available at the time that you want it. An example is the difficulty of finding premium priced free-standing properties that are not too big (i.e. too many unnecessary bedrooms) but has other elements that are sought after (such as a particular architectural style, spectacular views and level entry).
Many vendors (irrespective of the value of the home) can be fixated on achieving a particular price for one reason or another. Owners of premium properties are no different and can sometimes be stuck on an unrealistic price. Quite often when sales agents call to inform me of silent listings, the first thing I ask is how the price has been determined. Very often they openly admit that it has been hard to set the price and ultimately it has been dictated by the vendors. In these instances, it can take time to condition the vendors to accept a significantly lower price than they originally hoped for.
Many vendors of premium homes are not very motivated to sell because they don’t need to redeploy the money to purchase another property. Many are happy to wait around for a couple of years if it means they can achieve an extra $400,000, for example.
Selling agents know that people who buy high-end properties tend to have a higher disposable income and expendable budget. Therefore is it not uncommon for the better sales agents to get buyers to part with more of their money than they should. This is particularly so when the buyers are highly emotional or want to buy in a particular enclave. Hiring a buyers’ agent can definitely help to minimise the risk of over-paying. Usually the cost of hiring a buyers’ agent is minimal compared with the savings that can be attained through savvy representation and negotiation.
While it can be hard for buyers, many challenges also confront vendors who are looking to sell their premium-priced properties.
Finding a trustworthy, experienced and motivated agent who has a track record of selling premium-priced properties is not always easy. The skills involved in selling premium-priced properties can often be different to selling to first-time home buyers, for example. The clientele is different. Therefore the style of selling and negotiation also needs to be adapted accordingly.
During the pitch process, many selling agents typically provide a comparative market appraisal with an indicative price for the property. However, the usefulness of this is questionable when it comes to premium properties as some agents will quote a very huge range to cover the lack of comparable data available.
It is common practice for many home sellers to inspect competing properties on the market and attend neighbourhood Auctions to gauge the soundness of their own expectations. In the case of vendors of premium properties, this is very difficult to do as there are few Opens and Auctions at the higher price range. As a result, many vendors don’t have the opportunity to get educated about the true worth of their own properties.
Homes for sale by the auction method typically undergo a four week marketing campaign. With premium properties, the sale process is a little more discreet and usually takes a lot more time.
In a soft market such as the one we have experienced in the past couple of years, it can be hard for vendors of premium properties to find the right buyer because of the excess stock available. Buyers can be spoilt for choice and will be opportunistic in their purchase. Lowball offers are not uncommon, and can be hard to swallow.
The higher the budget, the more particular and uncompromising buyers can be. This can be difficult for vendors because many things are beyond their control. No matter how attractive and well presented the properties are, buyers of premium properties are usually looking for very specific features. They will either love it and be willing to pay a premium for it, or simply walk away. This is quite unlike buyers in the lower price bracket who are often aware that their budget is limited and therefore they need to make certain compromises in order to buy something.
Oliver Stier is the director of <a title="OH Property Group" href="https://www.ohpropertygroup.com/" target="_blank">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can<a target="_blank" href="https://www.twitter.com/ohproperty"> follow Oliver on Twitter</a> 
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Lowball offers for property not uncommon in current soft market and hard for vendors to swallow: Oliver Stier

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E<a href=""></a>ach year starts off with typically none (or very few) properties being auctioned. This is because most real estate agents like to run four-week auction marketing campaigns in the lead-up to the auction itself. However, by mid to late February, there will be a flurry of auctions as sellers and agents try to get off the mark quickly for the year. 
Auctions are nerve-racking for sellers and prospective buyers alike. In anticipation of the auction season going into full swing later this month, here are some useful tips for  buyers: 
<ol>
<li>Make sure that you have thoroughly reviewed the contract for sale and understand your legal obligations should you be the winner of the auction. Any amendments you wish to have made to the contract (such as the amount of deposit, settlement period, inclusions, etc.) need to be agreed between both parties’ legal representatives prior to the commencement of the auction. These changes need not apply other bidders, so various bidders may actually be bidding on differing terms. </li>
<li>Make sure that your financing is in order and that you are comfortable that your maximum purchase price is in line with the market. The auction sale is unconditional and you will be contractually obligated to come up with the full purchase price even if your lender withdraws financing or comes in with a valuation lower than the auction sale price. </li>
<li>Fully understand the rules of auction. Do you know the difference between a reserve and a vendor bid? Do you know who, when and how the reserve is decided? Are you aware that a reserve can be changed at any point in time during the course of the auction so long as instructions are given to the auctioneer in writing (or even in some cases verbally)? These are just some of the very basic auction procedures that many buyers are not aware of. </li>
<li>This may sound basic, but have a personal cheque book ready if you intend to bid. If you win an auction, you will be expected to pay the deposit immediately. Many people these days don’t have cheque books and it can be quite time consuming and costly to arrange for a bank cheque each time you want to bid at an auction. In addition, you will not know the amount required for the deposit (usually 10% of sales price) prior to the conclusion of the auction, and most banks will be closed evening and Saturdays (when most auctions are held). </li>
<li>Having watched just a couple of auctions is not sufficient to become an expert on the auction process. As no two auctions (or auctioneers/selling agents) are ever alike, you need to really watch at least 15 to 20 auctions in your target area in order to be fully exposed to the workings of the different “actors” and possible scenarios that can unfold during an auction. </li>
<li>If you have observed many different auctions, you will become familiar with the style of the various auctioneers. This will enable you to better gauge how they like to control an auction and how serious they are when they say “first call” or “second call”, for example. </li>
<li>Although it may sound obvious, it is vital that every prospective buyer pre-determines the maximum price they would be willing to pay for the property. This price should be set the night before the auction and should be entirely independent of the likely level of competition on auction day or what other buyers may possibly bid. These are things which you have no control over and should not influence the price you are prepared to pay.  The maximum price should only be linked to the market or appraised value of the property. </li>
<li>The maximum price you set should be the price that you would not regret, even if you were to lose the property for just $1,000, for example. This is your “walk away” price. </li>
<li>Once you have set your maximum price, don’t hesitate to bid. Many bidders try to play coy and shake their heads vigorously when they should actually be bidding confidently with each bid. If there are several other registered bidders you are likely to get the best outcome through the transparency of the auction bidding process, rather than behind closed doors and having to rely on the selling agent’s representations about the competition in the hours or days following auction. Note, however, that if there are few genuine parties registered, it may still be in your interest to let the auction fail to lower the vendor’s expectations. </li>
<li>Don’t go into an auction by treating the auctioneer as an adversary. He or she represents the seller and it is their job to extract the maximum bids. By all means stand your ground, but there is never any need to be rude during an auction. </li>
<li>Have an action plan in mind should the property be passed in. Many properties sell shortly after the auction behind closed doors, and this process is far less transparent. </li>
<li>Don’t be afraid of auctions. It is not as daunting as it seems if you understand how it can work in your favour as well. If the pace is going too fast for you, you can always try to slow it down so that it does not overwhelm you. While auctions always seem like it favours the vendors, this is not always the case. An auction can also be a good way to send a signal to the vendor that their price is unrealistic relative to the level of demand or to ensure transparency amongst the prospective purchasers.</li>
</ol>
As always, if in doubt, you can always seek expert advice and guidance. Experienced buyers’ agents attend and bid at auctions on a weekly basis and their knowledge and experience is far superior to the average bidder. They understand the rules of the game and how to best maximise the likely outcome of the auction on your behalf, no matter the scenario.
 
Oliver Stier is the director of <a target="_blank" href="https://www.ohpropertygroup.com/" title="OH Property Group">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
 
 
 
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Twelve tips for bidding at property auctions

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It’s not news to anyone that there has been a constant increase in the number of Chinese property buyers and sellers in Australia, particularly in metro city areas. In light of the Chinese lunar New Year, I find it timely to take a look at some of the taste and behaviour idiosyncrasies of this significant group of property actors. 
This article will refer mostly to Chinese residential buyers and sellers. While there are some similar behaviour patterns with Chinese commercial buyers and sellers, most commercial transactions are different as many involve syndicates rather than single players. 
I also would like to highlight that a level of generalisation is required to write an article such as this. The observations made in this article are from years of experience in dealing with Chinese clients and from the knowledge of my colleagues who are of Chinese origins and understand the finer details of the culture. 
The first mistake that many people make when discussing Chinese buyers is to group them all as one. The reality is that Chinese buyers behave very differently depending on whether they are overseas Chinese buyers, new Chinese immigrants, long-term Australian residents of Chinese heritage, or even Australian-born-Chinese buyers of the second generation. The main difference is due to their level of English as well as the level of familiarity, trust and comfort they have in the Australian real estate processes. 
The second mistake often made in understanding Chinese buyers is to assume all buyers of ethnic Chinese origins behave in similar fashion. A Taiwanese buyer can behave very differently from a Hong Kong buyer or a mainland Chinese buyer. Chinese Malaysians, Indonesians or Singaporeans likewise all behave in their own unique manner during property negotiations. 
While increasing sensitivity to Chinese buyers and sellers is becoming the norm in real estate transactions, many agents still only have a superficial understanding of Chinese clients. Many have a basic understanding of feng shui, or the preference for certain lucky numbers such as eight, and tend to focus on these in the marketing of properties. While this is certainly important for some Chinese buyers, it is not usually equally so for second-generation Chinese-Australians. Many properties with the supposedly unfortunate number four (meaning “death”) have sold for high prices to Chinese buyers. Therefore, while important to keep these cultural preferences in mind, it is not an all-consuming factor. Chinese buyers are rational, and they are not buying every single property that has an eight in the number. 
With this said, my colleagues and I have noticed a definite pattern of preferences with many Chinese buyers over the years: 
<ul>
<li>They like full-brick homes (as opposed to brick veneer, weatherboard or fibro – unless they plan to knock it down).</li>
<li>They like rectangular-shaped land.</li>
<li>They generally would prefer not to have a swimming pool. Swimming is not a big part of the Chinese upbringing and many Chinese-born children don’t know how to swim. Therefore a swimming pool is seen to be more a danger and a chore than a source of pleasure.</li>
<li>They like level and clear land with not too many trees (especially protected species such as gum trees, which are not always possible to remove).</li>
<li>They like low-maintenance properties (e.g. paved backyard as opposed to cottage-style garden).</li>
<li>They prefer high side of the street and generally dislike properties that have an entrance below street level.</li>
<li>They have a preference for newer properties and less of an appreciation for older-style features such as an ornate ceiling or picture rails, etc. Therefore, a heritage-listed property usually does not appeal to Chinese buyers.</li>
<li>Position is important, and many Chinese buyers will not want to purchase properties that are at a T-junction, for example.</li>
<li>Aspect is also important, and Chinese buyers typically prefer morning sun than afternoon sun.</li>
<li>Some feng shui-related features are important. However, so long as a “flaw” can be fixed, it shouldn’t be a huge problem. For example, some superstitious Chinese buyers believe it is bad feng shui to be able to see through from the front door straight out the back door. To them, this implies that money which comes into the house will immediately find its way out the door just as quickly. However, if some kind of partition or barrier can be built to disrupt this flow, then this problem is solved. This is quite unlike many non-Asian families who actually think it is preferable to have that cross ventilation and see-through aspect from the front door.</li>
<li>For any Chinese buyers with school-aged children, the proximity to their preferred school is almost always the main consideration. This is not surprising given the heavy emphasis on education by parents. </li>
</ul>
When it comes time to buy or sell, many Chinese buyers and sellers who may not be fluent in English would show a strong preference to deal with Chinese-speaking agents. This is why many Sydney suburbs (such as Chatswood, Eastwood, Epping, Strathfield, Campsie, and Ashfield etc.), which have strong Chinese demographic presence, also tend to have the highest number of Chinese-speaking agents. Quite often the Chinese agents are not necessarily the best when it comes to sophisticated or glossy marketing. However, their ability to communicate in the same language and build a relationship with the client gets them the business. 
At the end of the day, while recognising that there are distinct behavioural differences between Chinese and non-Chinese property buyers and sellers, it is also important to note that there are also similarities. For example, as is the case with anyone else, Chinese buyers also like to get a “bargain” when buying. They tend to be savvy property investors who are risk averse and rely on the advice of their family and friends. Earning their trust is important when dealing with them, regardless of whether it is on the buy or sell side. And just like any other buyers, once they are emotional about a particular property that meets their criteria, they are prepared to pay a premium if they can afford it.
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" title="OH Property Group" target="_blank">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
For more on Chinese buyers and sellers of Australian property, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets">download our free eBook</a>.
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Understanding Chinese property buyers and sellers

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With so many contradictions in the media about the state of the property market, it can be confusing to filter facts from fears. One day the market is close to collapse. Another day it is flat but showing some positive signs of recovery. New data and statistics are being released every week, and experts scramble to interpret what they mean. Which information is accurate and how much should you rely on it?
What do I think? Long run property capital gains are likely to be 4% to 5% per annum going forward (in line with wage growth) not 8+%. However, I don't expect 40% drop in prices as some doomsayers suggest. Rental yields should be higher going forward than over the last five years due to continued undersupply of housing in NSW. And interest rates are lower now and likely to remain so for some time to come, making carry cost cheaper for investors.
Unaffordability is a problem for many first-time home buyers. However, the undersupply of housing and significant store wealth and foreign wealth will support middle-class and established suburbs.
Finally, the recent news of the axing of stamp duty exemptions for first time home buyers in NSW for second-hand property may lead to a blip in first-home owner activity this spring but then will lower demand from this segment due to unaffordability. With leverage, property investment returns can still be quite rewarding.
It is of course always wise to do your own homework prior to making major life decisions (property-related or otherwise). However, if you are feeling more confused than ever as to whether you should buy or sell real estate this spring, forget for just a moment about what you have read here or in the media and just focus on answering the following three questions to help you make the right decisions:
1.            Are you making a real estate decision based on the market or on your life?
Property investors are typically opportunistic buyers, whereas owner-occupiers usually buy properties based on their lifestyle needs, such as an expanding or downsizing family. If you are hesitant to make a real estate decision, ask yourself what is holding you back from buying or selling? Are you trying to make your decision based on timing the market (which you have no control over) or based on your life and needs?
If you are an investor, perhaps you are making a calculated decision purely based on the market. However, if your life circumstances demand that you make a buying or selling decision this spring, then make the most of whatever market conditions you are faced with. If you are selling one home to buy a larger one, maybe it is a good time to buy when the upper-end market is still weaker. Whatever shortfall may result in selling your property in a flat market, if you buy in the same market, you will more than make up for it on the purchase end. What you want to avoid is selling your property now and buying only later when the maker is stronger already.
2.            How will you know when the market has hit the bottom?
The reality is that no one can ever accurately predict when the property market has or will hit the bottom. The only way to know for sure is to look at the data retrospectively, once the market has already made an upward trajectory and then it will be too late. It would be a waste of time and energy to sit on the sidelines to try to pinpoint a particular turn. Chances are you may be wrong with your calculations and would have by then missed out on some good opportunities in the marketplace. If you believe that the property market is most likely to go up in the medium term, focus on buying right and negotiating well, rather than on picking the bottom.
3.            What are you in control of?
It is important to understand and differentiate between factors which you are in control of and those which you are not. You are not in control of the global economy or how the EU and USA are performing; and you are not in control of interest rates which are set by the RBA. You are also not in control of the quantity or quality of property stock on the market. However, this does not mean that you cannot be in the driver’s seat when it comes to buying or selling a property.
If you are selling a property, you are always in control of the agent you appoint, the method of sale, the timing for the listing, the marketing budget, etc. Likewise, if you are buying a property, you are in control of picking a solid property (that is not going to underperform), understanding its value, how much you are willing to pay and when you submit the offer or bid at auction.
Keep things in perspective and don’t be paralysed by the things you cannot control. Focus on maximising the outcome of the things which you can control. This means that regardless of whether you are buying or selling a property this spring, you should demand more and negotiate smarter.
Oliver Stier is the director of <a target="_blank" title="OH Property Group" href="https://www.ohpropertygroup.com/">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
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Spring property market: Fears, facts and focus

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With school holidays generally starting on the 24th of September, properties earmarked for auction with a standard four-week auction marketing campaigns have already launched their campaigns.
Two weeks ago, I personally inspected 16 houses on Sydney’s North Shore. Many property buyers in the North Shore are upsizing from near the city or inner west, where larger blocks of land and space in general are traditionally scarce. The numerous excellent public and private schools are also a strong drawcard to the North Shore.
The North Shore offers an interesting backdrop to study the property market and what might be in store this spring for a few reasons:
The suburbs in the North Shore are well established and therefore generally are quite stable;
In good or bad economic times, there are always people looking to buy in the North Shore, which is not always the case in the newer suburbs in the outskirts of Sydney;
The North Shore offers a great variety of property types for purposes of comparison, including units, townhouses, semi-detached homes, free-standing houses and even vacant blocks of land; and
The auction method of sale is traditionally very popular in the North Shore and the clearance rates are indicative of the state of the property market.
Based on my inspections of properties on Saturday and the weeks preceding, the following are my observations:
<ul>
<li>Inspection numbers are definitely up. Some properties were even crowded, and this has not been the case in the past few months. There was a healthy number of browsers out there, but it will remain to be seen if these will convert into serious buyers.</li>
<li>There is still a lot of talk about the global economy. People remain worried about what the rest of the world has in store for Australia. There is still a cautious attitude among buyers, and this sentiment is likely to linger for as long as there is global uncertainty. This conservative outlook is essentially the new norm among property buyers.</li>
<li>Agents (and vendors) seem confident once again to list properties for auction campaigns. Over the last three-six months there has been a trend in the North Shore market to advertise properties as for sale with a list price. This is a significant shift, given the area’s predisposition for auctions in the past. This weekend however, I saw the majority of new listings have come on the market as auction listings. Once again, only time will tell whether these properties will actually be sold at auction or whether bidders will continue to be reticent when faced by the hammer.</li>
<li>Selling agents seemed buoyed by the turnouts, but it is obvious that they still worry if those who come to the open for inspections will turn into actual buyers who would be willing to meet the seller’s expectations.</li>
</ul>
There is a surprising amount of North Shore entry-level properties around the $1 million mark launched this past week. Probably smart home owners have decided that now would be a very good time to upgrade, given that higher-end properties prices remain softer than entry-level ones. These entry-level properties attracted keen interest at open for inspections this weekend.
The only premium auction I attended was passed in with absolutely no bids. While the selling agent had gathered some 75 people to attend (many are neighbours, no doubt), not one bid was placed for a property that had been quoted around the $4 million. It did not appear that there were many registered bidders. Those with interest probably still feel that the best deal can be had post-auction and through smart negotiation – which is probably true.
Selling agents are increasingly talking up the rental yield part of the buying equation. With interest rates set to remain stable throughout the year, the possibility of a rate fall as the next RBA move, fixed rates having been lowered by the major banks, and the flattening yield curve, it is only to be expected that we will see the return of investors to this market. It is more a matter of ‘when’ rather than ‘if’. These investors had started to nibble in early 2011 and are in my opinion likely to return in force within the next six months.
All in all it was a good day out there. The lacklustre supply of good property over the last six months is fading and buyers are starting to consider buying again. Many risk-averse Sydney property buyers have been waiting on the sidelines since the beginning of the year, fearful of a severe downturn that has not eventuated. Many are now starting to realise that Australia in general and the property market specifically are still quite resilient; and that any downturns are in fact windows of opportunity to either enter the market, upgrade or invest.
The reality is that fear is often paralysing. Once the fear subsides, buyer confidence will return. It won’t happen overnight. But it will happen.
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" title="OH Property Group" target="_blank">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
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North Shore agents cautiously optimistic about spring market

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More than 3 million viewers tuned in on Sunday night to watch the finale of The Block 2011, a renovation show pitting four couples against one another. 
Before the finale, Josh and Jenna seemed to be the favourites to win with double-fronted 37 Cameron Street. And when they got to choose to be first off the blocks at auction, the scene seemed set for an easy victory. However, the final outcome at auction could not be further from the hype leading up to the event. Despite the amount of money spent to “glam up” the properties and a marketing publicity campaign that most vendors can only dream of, only one of the properties (39 Cameron Street, by Polly and Waz) actually sold at auction. And even then, it only just barely hobbled over the finish line – at a meagre $15,000 above the reserve set by Channel 9. Hardly a spectacular auction day by anyone’s standard. 
Viewers (and I’m sure, the contestants alike) were stunned that the only property that had enough interested bidders to meet reserve was that by self-proclaimed renovation rookies, Polly and Waz. After all, surely Rod and Tania’s number <street><address>43 Cameron Street</address></street>, which had a very similar reserve ($850,000 vs. $840,000) was a better property? Both are two storeys with the master bedroom and ensuite upstairs. Both have been criticised by the judges for not having a proper dining area. Polly and Waz had the “man cave” and extra storage. But on the other hand, Rod and Tania seem to have a larger and better backyard with the extensive decking and bonus spa. So why did Polly and Waz manage to get a sale and Rod and Tania did not? On the surface, something seems amiss. 
So what went wrong exactly? Why did just one of the four properties sell under the hammer? And why did the two supposedly best properties (number 37 and number 43) not sell while the other two supposedly lesser properties did? (For those not aware, Katrina and Amie did sell their property post-auction for the reserve price of $860,000, netting them zero profit to pocket.) 
There are many theories that have been thrown around to try and make sense of what happened: 
The market is what the market is. TV can do wonders. But it cannot change market sentiment overnight. For all of 2011 so far, property buyers have been very extremely cautious, and this is reflected in auction clearance rates hovering around the 50 to 55% for most of this year. There are still lots of serious buyers out there, but they are taking their time and watching their wallets carefully. Buyers are not willing to be drawn into a competition scenario for fear of over paying. 
A sale is a sale regardless of when the deal is done. In the current market, many properties are passed in at auctions (often with no one bidding) only to be sold soon after. At the end of the day, it really does not matter whether the property is sold before, during, or after auction. It’s the price that counts. No doubt, the remaining two properties of The Block should sell in the near future. 
Too much publicity can be a bad thing. I have come across many properties that attracted large crowds at open for inspections and seemingly overwhelming interest. However, surprisingly enough, on many such occasions, I find that the buyers end up losing hope – thinking that there’s no way they could be the winning bidder in the face of stiff competition. So they either don’t even show up to the auction or simply set a very realistic cap to prevent themselves from getting emotional in the bidding process. While there are silly buyers who want to win at all cost just for the sake of winning, there are also many who react in the opposite way. The more competition they think they are likely to face, the more they talk themselves out of getting into the rat race and overpaying. Time and again, I see extremely popular properties sell for an underwhelming price for this reason. 
Many serious buyers who otherwise would have been interested in The Block properties may have been discouraged or intimidated by all the media hype. Instead, the auction probably attracted some “bidders” who were mainly interested in being in the limelight, and not genuinely attempting to buy the property.
 
Is the price right? It’s pretty clear to most that Channel 9 overpaid for the four properties in the first place. Add to that the cost of stamp duty, second-floor additions to three of the properties and the renovation budget, and it seems unlikely that a profit could ever be made from the properties. Of course, this is a secondary concern to the show producers – relative to the ratings success. But the moral of the story is that buyers are not stupid. They will not overpay just because it is a TV show. Rational buyers know that once the cameras are turned off and packed away, they will be left with a very real investment. They would be asking themselves whether there are better buys out there than what The Block has to offer. 
Buyers’ agents/advocates take the emotion out of buying. As viewers would have observed, there were many buyers’ agents (or buyers’ advocates, as they are referred to in Melbourne) doing the bidding. As buyers’ agents and advocates, we are mandated to represent our clients who are property buyers. This means that we have to look out for their best interests. A good buyers’ agent and advocate would have done a thorough due diligence on the properties. How is the location? What is the rental potential? How good an investment is it? Is there a better property out there (for example, ones with parking)? Are the properties over-priced relative to their merits? What is the maximum price that the client (the buyer) should pay for the property? 
If the client (buyer) decides to go ahead and participate in the auction, then the buyers’ agent and advocate should do everything they can to enable their clients to buy the property for the lowest price. This may involve not bidding and competing if the property is not likely to reach the reserve anyway; or if it becomes evident that there is not that much interest or serious competition. After all, a good buyers’ agent and advocate would know that sometimes the best time to strike a deal is after a property has failed Auction. Unfortunately for Channel 9, experienced buyers’ agents and advocates are calculating bidders, and not likely to be drawn into an emotional bidding frenzy which would have made for more exciting television! 
Five lessons to be learnt from The Block
 
<ol>
<li>Don’t overpay when you buy. Many people assume you make money when you sell. But you actually make your money when you buy. Hire an experienced and professional buyers’ agent and advocate to minimise your risk of making a costly mistake.</li>
<li>Renovation is much harder than it seems. The high entry and exit costs (stamp duty, agent commissions, capital gains tax etc.) make it very difficult to make a profit.</li>
<li>Understand your target market for the suburb when you renovate so that you don’t over-capitalise.</li>
<li>Auction is NOT the only way to sell a property. The Block has to use this method because it generates the most drama for television.</li>
<li>The best property does not always get the best selling price. The interplay of a combination of factors such as the skill of the selling agent, sales method, level of buyers’ motivation, etc. all contribute to the final outcome. It comes down to finding the right buyer for the property – the one willing to pay the most for it.</li>
</ol>
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" title="OH Property Group" target="_blank">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
Photo courtesy of Jonathan Chancellor
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The Block buyers' agents don't make for exciting television

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Many articles have been written about buying properties off the plan. Most are critical of this approach to buying and conclude that the numbers simply don’t add up. However, as with all investments, there are pros and cons that warrant a balanced analysis based on your own personal circumstances.
Developers sell off the plan because this is usually a requirement for them to secure upfront construction financing from a lender. A certain percentage of the development usually has to be pre-sold before the release of funds by the bank. Buyers would pay a deposit to secure the property, with the balance payable upon settlement.
Below I consider some of the pros and cons of buying off the plan in NSW.
Pros
•             Brand new. Everybody likes the feeling of “newness” – be it new cars or new houses.
•             Developer discounts. Developers may sell some units at a discount if they need to meet sales targets to get the construction underway.
•             Extended settlement period. With delivery usually over a year or two away, it gives you time to sell your place or to obtain financing (or even to increase your income before financing needed).
•             Stamp duty concessions. Over the last five years, various concessions on stamp duty have been offered in NSW such as for retirees and first homebuyers.
•             Customisation. It is often possible to provide input on final design if a property is purchased before construction (e.g. to merge two apartments into one large one or to choose certain fittings and fixtures).
•             Warranty periods. All builders are required to provide seven-year warranty on building structure (in addition to a preliminary period covering finishes defects). However, note that home warranty insurance (with a third-party insurer) is only required to be taken out by builders on residential projects valued over $12,000. Larger developments (buildings of more than three stories) are exempt and the purchaser must rely solely on the builders’ warranty. Clearly this presents a significantly greater risk to buyers. The certificate of insurance, when issued, must be attached to the contract of sale.
•             Lifestyle. Newer units are built to reflect today’s tastes and preferences such as open-plan living areas, larger balconies and amenities such as pool, gym and concierge services.
•             Potential for capital gains before settlement. Many investors are speculators and love to bank on off the plan properties going up in price before the property is even finished. Beware however, that the reverse is also possible.
•             Leveraged investment. The down payment is usually low for the construction period (i.e. it can be a leveraged investment without the need for bank financing).
Cons
•             Final product is unknown. Buying something on paper without having seen the item is a significant risk. The finished product may not live up to your expectations (e.g. aspect, quality, etc.)
•             Premium price for newness. Just like cars, brand new properties have a certain premium. This is partly due to the newness factor, but also due to Australia’s Foreign Investment Review Board (FIRB) regulation which stipulates that foreigners can only buy brand new properties and not second hand ones. There is a larger consumer base for new properties (as foreigners can also buy) and consequently new prices are higher than in the secondary market. When this property is later sold, it cannot be sold to foreigners (lowered demand possibly leading to a lowered price).
•             Lower land to asset ratio. New homes and units alike are usually built at much higher density than those built 25+ years ago. Since land value is the primary influence on capital gains for property, it is not uncommon for capital gains associated with a new property investment to be lower.
•             Developer bankruptcy risk. There is always a risk that the developer goes bankrupt before completion (with loss of deposit if the legal structure is not sound) or during the warranty period.
•             Expected financing may not be available in the future. While banks may be lending on attractive terms today, and while the buyer may have the capacity to borrow the required amount at the time of purchase, this may be very different in the future when the financing is actually needed.  At settlement, when the property is completed, banks may not be willing to lend the same amount (LVR), the valuation may be lower than the purchase price, or the buyer’s income and circumstances may have changed. In all these cases, the buyer would need to come up with a larger down payment than expected. In addition, the interest rates at time of settlement may be very different from those prevalent at the time of purchase.
•             Lower capital growth can be expected (at least in the early years) as depreciation is high. The new property will depreciate significantly in the first few years as it goes from new to second-hand – just like a car when you drive it off the dealership.
•             Defects can be extensive. There is often a 1-5 year period in which building defects materialise and become visible. In the best case scenario, a very good builder will address these with minimal inconvenience and hassle. A bad builder however, may not fix the defects properly. In which case extensive time and cost is required to address the defects through negotiation, mediation and possibly even court.
Tips for buying off the plan
•             Buy from trusted developers with a proven track record. Established developers obviously have much more experience and resources than small developers. Reputable developers tend to make fewer mistakes (which can be extremely costly in the long run) and when problems occur, they tend to be in a position to rectify it more effectively and efficiently. Although many new development projects have mandatory 7 years structural warranty with an insurer as back-up, it is not uncommon for developers to simply go bankrupt before this period is over. It then becomes much more complicated to claim for defects from the insurance company.
Where possible, try to inspect other properties which the developers have completed so you can gauge the quality of the workmanship first hand.
•             Understand exactly what you are buying. Read the fine print and seek legal advice before signing any documents. Don’t make assumptions as to quality based on promises made by the salesperson or model/showroom. If detailed specifications are not provided, don’t be afraid to demand more information in writing or to provide you own list of requirements/specifications.
For example, even if the shower screen for the bathroom is specified as glass, this does not tell you whether you will be getting 5mm thick semi-frameless glass screen or 10mm fully frameless ones. There is a significant difference both in quality and price. Most developers know that buyers look at the quality of the kitchen appliances and they tend to splurge on high-end brands. However, most buyers are not as educated or discerning when it comes to accessories such as tap ware, cornices, skirting boards, balustrades, etc. You need to understand whether your money is going towards quality German tap ware or cheaper Chinese ones, for example.
•             Understand your rights. What modifications or substitutions are possible without additional costs to you? Can the apartment be on sold by you prior to completion? Where is the down-payment being held (i.e. is it in a trust account? Can the builder use it for construction?). Are you able to get out of the contract if the property is not finished on time? Are you able to visit the site during construction? What is the process to ensure that defects are fixed in a timely manner?
•             Have a contingency plan. Few developments are completed according to schedule and you need to make sure that you will not be overly inconvenienced should this occur. In addition, make sure you are financially prepared and able to pay a higher strata levy (where applicable) than what the developers calculate in order to appeal to buyers during the sales process.
•             Consider your exit strategy. When it comes time to sell, will it be easy to offload your new property? Without the newness factor, will it still appeal to many buyers? Has the property been well designed to have a timeless appeal? Will there be lots of other similar properties to compete with yours (in the area) when you want to sell? Will buyers be attracted or put off when they find out who the developer is?
At the end of the day, the logic of buying an off the plan property is similar to other investments. You need to weigh the pros and cons as they apply to your life and circumstances. You will also need to understand your level of appetite for taking risks and your ability to mitigate them; because buying off the plan means that you are buying something you can neither see nor touch. You are essentially buying a promise.
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" target="_blank" title="OH Property Group">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
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Seven traps for unwary off-the-plan buyers

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Have you ever purchased something (usually a big-ticket item) and then feel a twinge of regret? If so, what you are experiencing is quite normal and it's called "buyer's remorse".
Although excited at the time of the purchase, once they've spent a lot of money, many people feel a deep regret and concern that they made the wrong decision, referred to as buyer's remorse. In this blog, I'm going to specifically discuss the buyer's remorse associated with buying a property. Buying a property is an emotionally charged process. 
During the initial search process, many buyers may go from feeling excited to frustrated when they realise the constraints of their budget. After some time, it is not unusual for many buyers to see a property they like but then miss out on it for one reason or another. This may result in a feeling of disappointment and loss.
When buyers eventually exchange contract on a property, many may feel a sense of relief and euphoria.
However, this feeling of elation often does not last long, as many buyers naturally begin to feel a sense of remorse over their purchase as they grapple with a series of fear and anxieties such as: 
<ul>
<li>fear of having made the wrong choice;</li>
<li>fear of having over-paid;</li>
<li>fear of over-indulgence or living beyond one's means;</li>
<li>fear that other people may later question the purchase or claim to know better alternatives;</li>
<li>fear of buying at the wrong time;</li>
<li>fear that a better/cheaper property is around the corner (also known as Fear of Missing Out or the FOMO factor);</li>
<li>fear of the financial implication to ensue (i.e. debt); or</li>
<li>fear of having been pressured by the sales agent.</li>
</ul>
It is also not uncommon for buyers to compare their purchases with those of their friends and families. Buyers need to be careful when doing so, because no two properties are like. For example, just because a friend/family purchased a property at $800,000 as opposed to your $850,000 does not automatically mean that they got a bargain while you over-paid. So be cautious not to have a knee-jerk reaction to price only.
Another common trigger for buyer's remorse is the pre-settlement inspection. Many properties have been scrubbed clean, landscaped and styled within an inch of their lives just before sale. So it comes as a shock to many buyers to see the property empty, slightly dirty and with an overgrown yard, for example. The gloss of the marketing campaign is over and buyers are faced with the reality of a vacant property that does not seem as glamorous as it did in the brochure.
The good news is that, based on our experience, buyer's remorse doesn't last too long. Acceptance and contentment soon follow – especially once the buyers are able to start putting their personal touches to the property (such as painting).
So if you are a property buyer experiencing buyer's remorse, just stay calm and have faith that all your due diligence and research will stand the test of time.
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" title="OH Property Group" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">www.twitter.com/ohproperty</a>
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Have confidence in your property purchases

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Close to the CBD and brimming with culture, trendy-chic shops and great restaurants, it is no wonder that Sydney’s inner west has quickly become one of Sydney’s most desirable living locations.
In general, Sydney property markets are in a period of consolidation (flat prices). The property market has weakened in 2011, with RP Data figures showing a decline of 2.2% nationally for the March quarter. For Sydney we registered a decline of 1.1%. More specifically, Sydney auction clearance rates have hovered around the 52-58% mark in the past few months.
However, the inner west continues to defy the odds and show strong demand. This can be attributed to the favourable buyer demographics – young professionals and investors. Many couples with children are choosing to renovate or upsize and remain in the inner west for lifestyle reasons, rather than relocate further out to suburbia. This has contributed to the gentrification of many pockets of the inner west.
According to Domain, Balmain East is currently the fastest-growing suburb for houses in Sydney, with median prices now at $1.9 million, and Glebe the second fastest growing suburb for units with median prices at $614,000. St Peters is third with a median of $494,000.
With forecast rising rental yields, investors are starting to buy into the inner west market, especially units. Sydney’s gross rental yield for units is now 5.01% and houses 4.38%, according to March 2011 APM data.
Australian Property Monitors’ prediction of top-10 best performers released in February 2011 included inner west suburbs of Balmain East, Breakfast Point and Leichhardt, all with 10%+ return forecasts.
Inner west houses are slated by APM for 6% growth this year (with places such as upper North Shore at only 3%). Inner west units are slated for 5% growth (with upper North Shore and northern beaches at -1%).
Development
With the current light rail planned extension adding nine new stops from late 2012 at Leichhardt North, Hawthorne, Marion, Taverners Hill, Lewisham West, Waratah Mills, Arlington, Dulwich Grove and Dulwich Hill interchange, the inner west will become even more appealing to potential buyers who are looking for an ideal work/life balance.
The inner west has been a bastion of stability in a Sydney market, which has generally deflated since last November. We haven’t seen double-digit growth here like we did in 2010, but turnover is steady – properties are selling. Buyers and sellers alike are achieving results, which are not the case in many other Sydney regions.
Top picks for hot growth spots
The following suburbs should continue to do well as demand for houses outpaces supply:
Erskineville, Newtown, Glebe and Lilyfield for units. Breakfast Point, Balmain (including Balmain East), Rozelle, Lilyfield and Newtown for houses.
With the rebound of CBD-based jobs and salaries for professionals, and increasing rental yields for investors, the inner west finds itself a shopping ground for a diverse set of buyers, fostering a steady and healthy property market. Owner-occupiers and renters alike are choosing the inner west for lifestyle reasons.
So, if you are on the lookout for your first property, or your next investment, here are five tips to help you along the way:
Know the neighbourhood inside-out. Inner west has many sub-pockets. Some areas are gentrifying and attracting professionals, while others are still run-down. Prices in one zone may be significantly different from another just two streets away.
There is a lot of new development in the inner west. If you are buying anything built within the last 10 years, do your research on the building! Many people assume that new buildings have fewer problems; in fact they tend to have more, due to the fact construction defects are still being sorted out. Despite required builders’ warranties, many are not honoured and lawsuits are common.
For units, look for features that appeal to gentrifying buyers: security, parking, internal laundry, large living space. A unit can be renovated, but key features cannot be added.
For houses, make sure you understand the details. No two houses are alike and there can be significant variation in price on one street alone. Factors such as aspect, high/low side of street, structural integrity, easements and zoning can affect value significantly.
Appraise the unit and make a fair offer as soon as possible. Given the negative headlines, vendors may be a bit more nervous than last year about selling and thus are more likely to accept offers before auction. However, the inner west market is still strong and the longer you wait, the more buyers who will be ready to compete with you.
Oliver J. Stier is the director of <a target="_blank" title="OH Property Group" href="https://www.ohpropertygroup.com/">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a> 
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Sydney’s inner west continues to defy market odds 

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

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Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

Oliver Stier

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