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House prices in Australia have outperformed apartments by a significant margin for long-term capital gain but the growth gap is narrowing, reflecting the increasing social acceptance of apartment living as demographic trends shift, according to John McGrath in a recent Switzer blog.
The claim is well supported by facts. House prices in Sydney rose by 11.5% in 2015 with apartments trailing by just a touch at 11.3%, according to RP Data. Across the five prime capital cities (Sydney, Melbourne, Brisbane/Gold Coast, Adelaide and Perth), growth was exactly 8% for both property types.
Apartments are clearly not the poor cousin of houses when it comes to returns and part of the reason is that apartment living is becoming the preferred choice for a growing proportion of the population, he writes.
In fact, there’s a good chance apartments may replace the quarter-acre block as the new Australian dream because many are in localities that are close to work and social activities and come with perks such as gyms, pools and concierges, argues McGrath.
Changing demographics are also driving this trend. While the nuclear family is still dominant, an increasing number of Australians live in a couple relationship without children or by themselves – and neither need or want to live in a house.
By around 2030, childless couples (DINKS and Empty-Nesters) will become the most common family type in Australia – and lone person households (SINKS and older people) will become the fastest growing household type, according to the ABS.
Adding to this is increasing interest in apartments from investors due to affordability, as well as rising international demand. Foreign Investment Review Board (FIRB) restrictions mean overseas investors can only purchase new stock – typically apartments.
Apartment living is on the rise around the world – literally.  
In McGrath’s annual report, the tallest residential towers both in Australia and overseas were profiled. Many of them here at home are still in development with one of the highest, Australia 108 in Melbourne offering ‘cloud residences’ from Floor 71 up. The tallest residential tower in Sydney, Greenland Centre on Bathurst Street, is also currently under construction.
In conclusion, McGrath predicts that there will be larger apartments for young families, offering a home within a 20 minute radius of everything they need, such as schools, shops, jobs and transport.
Tallest residential towers – Australia
235 metres
Greenland Centre
115-119 Bathurst Street, Sydney
249 metres
Infinity Tower
43 Herschel Street, Brisbane
254 metres
Prima Pearl
35 Queensbridge Street, South Bank, Melbourne
265 metres
120 Collins Street, Melbourne
297 metres
Eureka Tower
Riverside Quay, South Bank, Melbourne
319 metres
Australia 108
70 Southbank Boulevard, Melbourne
323 metres
Q1, 9 Hamilton Avenue, Surfers Paradise, Gold Coast
Tallest residential towers – International 
339 metres
Mercury City
1st Krasnogvardeysky Avenue, Moscow, Russia
380 metres
Elite Residence
Al Sofouh Road, Dubai, UAE
382 metres
Burj Mohammed Bin Rashid
Khalifa, Bin Zayed The 1st, Abu Dhabi, UAE
393 metres
23 Marina
568 Al Marsa, Dubai Marina, UAE
414 metres
Princess Tower
Al Marsa, Dubai Marina, UAE
426 metres
432 Park Avenue, New York, USA
632 metres
Shanghai Tower
Luijiazui Finance and Trade Zone, Pudong District, Shanghai, China
828 metres
Burj Khalifa
1 Sheikh Mohammed bin Rashid Blvd, Dubai, UAE
*Source: Household and Family Projections 2011 to 2036 (series II), released March 2015
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Apartments may usurp houses as growth gap narrows: McGrath

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New apartment sales on the Gold Coast jumped by more than 80 per cent in 2015 and the trend is expected to continue this year, with two-bedroom homes the most popular, according to new research by consulting firm Urbis.
A total of 1,494 new apartments were sold last year compared with 825 in 2014, reveals the latest Gold Coast Apartment Essentials report.
Affordability, foreign investment and population growth contributed to quarter-on-quarter sales growth in 2015, said Urbis senior consultant Lynda Campbell.
“The Gold Coast apartment market has experienced its highest level of activity in almost eight years, after a lag in residential construction following the global financial crisis,” Campbell said.
Urbis said it was monitoring 26 new projects which could launch during the next six to nine months and bring some 2,500 new apartments to the market, which at the current sales rate, is roughly 18 months’ supply. However, demand is expected to increase as the Gold Coast experiences one of the highest rates of population growth (2.3 per cent) in South East Queensland, the latter figure is according to the Queensland Treasury and Trade.
“Retail, health and transport projects including the $670 million redevelopment of Pacific Fair Shopping Centre and stage two of the Gold Coast Light Rail are expected to continue to drive lifestyle factors and demand in 2016.”
Sales activity ramped up in the last quarter of 2015 with 453 transactions across 58 projects, compared to 416 sales in the previous quarter and 303 in the corresponding period of 2014.
The luxury apartment market also experienced a sales surge between October and December with 37 sales exceeding $1 million, compared with 12 in the previous quarter and 18 in the corresponding period of 2014.
The majority of activity was around the Gold Coast Central precinct which recorded 254 transactions for the quarter and 714 sales in total for 2015.
The two-bed two-bath apartment product was the most popular product type for the year with 428 total sales across the precinct.
*Coastal Fringe suburbs include Arundel, Parkwood, Molendinar, Ashmore, Benowa, Bundall, Carrara, Robina, Clear Island Waters, Merrimac and Varsity Lakes.
*Gold Coast Central suburbs include Labrador, Southport, Main Beach, Surfers Paradise and Broadbeach and Broadbeach Waters.
*Southern Beaches suburbs include Bilinga, Burleigh Heads, Burleigh Waters, Casuarina, Coolangatta, Currumbin, Kingscliff, Kirra, Mermaid Beach, Mermaid Waters, Miami, Palm Beach, Tugun and Tweed Heads.
 
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Urbis Gold Coast 2015 Q4 Apartment Essentials report snapshot:
- The Gold Coast apartment market has experienced its highest level of activity in almost eight years.
- The Gold Coast’s new apartment market has witnessed six consecutive quarters of increased sales volumes.
- The Gold Coast recorded a total of 453 sales during Q4 2015 compared to 416 sales in Q3 2015 and 303 in Q4 2014.
- The weighted average sales price of apartments on the Gold Coast is $609,658 - increasing by $56,416 compared to Q3 2015.
- Based on surveyed data, the Coastal Fringe* remains the most affordable precinct on the Gold Coast to buy a new apartment with an average weighted sale price of $429,321.
- Based on surveyed data, the Southern Beaches* remains the highest priced precinct on the Gold Coast to buy a new apartment with an average weighted sale price of $905,102.
- The two-bed two-bath product remained the most popular across all precincts, equating to 65 per cent of total sales.
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Gold Coast apartment sales surge 80%: Urbis

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Toowoomba, Queensland’s largest inland city, is approaching the peak of the residential market.
But prices are not looking to soften as gentrification takes hold , according to HTW’s March property clock -- a simple broad brush means to indicate where property prices are and where they are going.
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As at the beginning of 2016, Toowoomba’s median house price remains affordable at approximately $370,000 and despite a noticeably softening market sentiment, sale prices have not yet shown signs of decline. 
However, it is apparent that the peak of the residential market has passed with agents reporting reduced investor enquiry. 
With current property climate in mind, investor interest cooling and upgrader enthusiasm easing, home owners are turning to regeneration and renovation. 
The key areas where this gentrification is most obviously taking hold is in the affordable suburbs of South Toowoomba, North Toowoomba, Mount Lofty and Newtown. 
The traditionally less sought after suburbs of Rockville and Harlaxton are slowly transitioning to gentrification hot spots due to their affordability.
At a higher price point, the style of dwelling common in East Toowoomba and scattered throughout established parts of Toowoomba, being older style early 1900s cottages, lend themselves to current renovation trends and modern extensions.
Not surprisingly, due to the steady trend of rejuvenation of this type of property, the median price in East Toowoomba is $445,000, significantly above that of the broader Toowoomba area.  
As for the medium to long term, while the peak of the Toowoomba residential property market has passed, these gentrifying areas look set to maintain current levels of demand and value, however as is expected across the entire Toowoomba region, some slowing in sales activity may occur. 
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As an example of the property market activity, Property Observer found a duplex at <a href="https://www.realestate.com.au/property-unit-qld-south+toowoomba-121421586" target="_blank">1 &amp; 2/126 Perth Street, South Toowoomba, Qld 4350</a> (above) was recently sold for $480,000 through Colliers International.
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Toowoomba near peak of market cycle, but prices not softening as gentrification takes hold: HTW

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The Gippsland region stretching from Melbourne's eastern outskirts to the state border in Victoria's far east was at the start of the recovery period in Herron Todd White's March property clock, which also offers a peak into gentrification.
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Sale/Traralgon
Sale rentals have hit some of the highest returns in years. With strong industries and the RAAF base this is expected to be maintained. 
Traralgon land prices in popular estates are at very affordable values compared to three to five years ago. This area has consistent housing construction at affordable prices. 
Warragul/Drouin 
Warragul and Drouin estates are growing with more land available and values increasing. Increasing demand in this location is due to its proximity to Melbourne. 
Koo Wee Rup/Lang Lang 
Koo Wee Rup and Lang Lang land values have increased in the past six to 12 months with construction demand strong and building prices very affordable. The reasons for the increasing demand include the area’s close proximity to Pakenham and being only 45 minutes to Melbourne.
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Property Observer found a three-bedroom unit with a garage at <a href="https://www.realestate.com.au/property-unit-vic-warragul-121611174" target="_blank">1/25 Henshall Street, Warragul, Vic 3820</a> (above) which was sold for $215,000 through Steadfast Real Estate.
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Gippsland's proximity to Melbourne helping land prices, but still affordable: HTW

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The number of residential vacancies nationally fell during February, recording a vacancy rate of 2.3 percent, and 70,161 vacancies, latest figures from SQM Research show. 
Year-on-year results demonstrate that national vacancies appear to be slightly above the common seasonal trends expected at this time of year.
Melbourne had the largest monthly fall, with vacancies falling 0.5 percentage points in February. Brisbane, Canberra, Sydney and Darwin also experienced monthly falls, with percentage points down 0.2 percent.
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Despite this, both Darwin and Perth continue to record an alarming number of vacancies, compared with this time last year (February 2015).
February results for Hobart reveal the tightest rental market recording a vacancy rate of just 0.9% based on just 239 vacancies, the data shows.
Asking rents
Perth has recorded ongoing falls in asking rents of 10.5% for houses and 9.1% for units over the past 12 months. Darwin also saw yearly falls, with asking rents down 10.3% for houses and 11.2% for units. Hobart continues to record the most affordable rental accommodation with rents for houses at just $337 a week, while units on average rent for $286 a week.
“Overall, there was a noticeable fall in vacancies for the month driven by Melbourne and Sydney. However, year on year vacancies are still edging up for the country and we think this will still be the trend going forward. The cities and townships most exposed to the commodities downturn are causing this yearly rise. On the flip side Melbourne, Hobart and Canberra are all recording downward trends in vacancies now and this is resulting in upward pressure in rents for these three cities,” said Louis Christopher, managing director of SQM Research.
The calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties. 
Key Points
* Nationally, vacancies fell during February 2016, recording a vacancy rate of 2.3%, based on 70,161 vacancies.
* Perth recorded the highest vacancy rate in February 2016 of 3.9% based on 7,819 vacancies.
* Vacancy rates in Sydney have fallen 0.1 percentage points over the last year.
* Year-on-year, vacancy rates dropped in Sydney, Canberra, Melbourne and Hobart.
* Hobart recorded the lowest vacancy rate during February 2016, with a rate of 0.9% based on 239 vacancies.
* Over the past 12 months, Perth asking rents have also experienced excessive yearly falls with houses down 10.5% and a 9.1% fall for units.
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Melbourne leads the fall in February residential vacancies: SQM Research 

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Queensland's Rockhampton is approaching the bottom of market according to HTW's property clock for March, which also predicts that 2016 won't be an easy year for the city and surrounding residential markets.
The valuation firm also discusses the impact of gentrification on the city. 
HTW's property clock is a simple broad brush means to suggest where property markets are and what direction prices are moving in.
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After a tough 2015, confidence still appears to be down, with many resource and associated service industries still dealing with tumbling commodity prices and a declining workforce.
The lower end of the market (sub $300,000) has experienced some of the worst declines in value across the region with a significant number of mortgagee sales recording drops in value from 20 to 40% against their previous sale prices which can generally be any where from one to eight years prior. The worst affected areas include Gracemere, Zilzie and older established suburbs of Rockhampton such as Depot Hill, Berserker and Park Avenue. 
This has largely been the result of a mass exit of investors leaving the market reliant upon first home owners and lower income buyers with substantial budget restraints. 2016 will be another tough year for the localities and as such they should be treated with caution however at the same time they may present opportunities should we reach the bottom of the property cycle, but as always this is something very dif cult to ag at the time. 
Better quality localities and properties where owner- occupiers are active in the medium price range ($300,000 to $500,000) appear to be holding their values. Suburbs include large areas of the Capricorn Coast, Norman Gardens, Frenchville and Wandal. Despite these areas holding well, it is unlikely that they will experience any substantial gains in value throughout 2016.
Medium to high-end properties above $500,000 have been also holding relatively well and include suburbs such as Rockyview, parts of Norman Gardens, and The Range.
In terms of gentrification, Rockhampton has been going through it since late 2005 when the first high-rise unit complex in over 30 years was completed along the river bank.  
Since then there have been an additional six high-rise unit complexes completed comprising a mix of permanent and short term accommodation and of late the addition of various restaurants and cafés in the Empire and Edge buildings which were both completed in the past five years. Victoria Parade and Quay Street have become the heart of the city and this is supported by Council’s recent announcements regarding the funding and approvals for the Rockhampton Revitalisation Concept Plan, which focuses on the Fitzroy River from Quay Street to William Street.
A set of new pathways, landscaping concepts, memorial and historical features are all incorporated into the project. Rockhampton has seen an increase in the number of small cafés and boutique shops with a noticeable increase in alfresco and street side dining areas. 
Within Rockhampton city itself there is a slow but gradual phasing out of old timber and fibro dwellings and replacement with more modern charismatic small and compact unit developments, often available for under $300,000. Given that the current economic climate is considered to be somewhat weak, this process may take some time however the diversity of the local economy is sure to keep the gentrification process ticking over.  
As an example of a sale, a three-bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-qld-rockhampton+city-110897251" target="_blank">303/6 Victoria Parade Rockhampton City Qld 4700</a> went for $433,000.
 
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In summary, 2016 sees many challenges facing the Rockhampton market and values will be dependent on a range of factors including the mining/resource industry outlook, state and local council initiatives and on a positive note the local agricultural industry, particularly beef is experiencing record cattle prices which are forecast to continue and will no doubt act as a positive indicator for the region. 
 
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Rocky year ahead for Rockhampton: HTW

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The first sod was turned by City of Sydney Lord Mayor Clover Moore and Crown Group CEO Iwan Sunito in the construction of a $575-million tower project named Infinity in Sydney's Green Square on Thursday.
The 20-storey design was named winner of the 2014 Urban Development Institute of Australia (UDIA) NSW Concept Design award. 
The tower on the corner of Bourke and Botany Roads, part of the council's $8-billion Green Square redevelopment precinct, will have direct underground access to Green Square train station.
Designed by Koichi Takada Architects, the mixed-use project features a 1180-sqm open-air plaza with gardens and surrounded by retail outlets, restaurants and cafés.
Crown Group Holdings was co-founded by architect Iwan Sunito and engineer Paul Sathio in 1996. 
Sunito was also named Urban Taskforce Australia’s 2015 Property Person of the Year.
"We've been inundated with buyers," Crown Group chief executive Iwan Sunito said on its sales' day last August. 
The total value of the off the plan apartments sold had reached $350 million by 3pm Saturday.
"We released 326 apartments and 105 apartments sold in the first hour. 
"It's great to see so many people proud and excited to own their own piece of Infinity by Crown Group." 
Some 60 percent of the buyers were investors and the rest owner-occupiers, the Australian Financial Review noted, with exchange e-contracts on an iPad for one-bedroom units to penthouses priced from $650,000 to $3.5 million. 
Lord Mayor Clover Moore said Infinity by Crown Group was emblematic of what the city hoped to achieve at Green Square, one of the most significant urban renewal projects in Australia.    “When completed, Infinity will be home to hundreds of new residents, its eateries and retail outlets will facilitate new jobs, while a new conference facility in the building will attract new events to Green Square," he said.    “Throughout history, cities have attracted the best and the brightest and in an era with increasing competition between cities in our region, developments like Infinity and the Green Square renewal will make sure Sydney continues to do just that.”   Sunito said he envisaged Infinity would become a residential and retail hub. “Infinity by Crown Group will set a new benchmark in city living and architecture,” he added.
“Infinity by Crown Group has been an exceptional project from the start – from the first stages of development and design selection through to the most successful sales launch in Crown Group’s history.” The City of Sydney has committed $540 million over the next 10 years to build facilities and infrastructure in Green Square including a library, a civic plaza, a new park and playing fields, an aquatic leisure centre and a new childcare centre; part of an $8-billion redevelopment of the 278-hectare Green Square precinct.   Green Square is forecast to have a population of 61 000 people by 2030 and provide 21,000 new permanent jobs by 2030. 
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Lord Mayor turns first sod at Infinity, Crown Group's Green Square tower

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Billionaire developer Lang Walker's $2 billion-plus Collins Square project in Melbourne, comprising six commercial towers and the Southern Goods Shed, could be sold off separately rather than as a portfolio, according to media reports.
Collins Square is aimed to be Australia’s second largest commercial mixed use development, totalling 250,000 sqm, built above a 10,000 sqm retail podium, according to Walker's website. 
While a portfolio acquisition – potentially by a club of buyers – would be the cleanest arrangement, the sale process was opened up recently to allow a piecemeal sell-down of assets, the Australian Financial Review reported, citing market sources.
First-round offers on the Melbourne development are due on Friday, after a one-month extension on the sale process for the divestment plan unveiled late last year. Walker is being advised by UBS.
There are more than 25 potential bidders in the fray for the portfolio, comprising local investors, offshore pension funds and sovereign wealth funds, the AFR said.
The broader break-up strategy also means a wider field of potential buyers, that would include local and offshore buyers. 
As well as from Australia, interest has come from Singapore, Hong Kong, the US and Canada.
Two of the five towers in the portfolio are complete and fully tenanted. Two more are due to be completed by the middle of this year and the fifth tower in 2017.  
Several blue-chip tenants are already committed, including Marsh Mercer, Transurban, KPMG, Commonwealth Bank of Australia, Penguin Random House and Pearson, Maddocks, Link Group, Mott MacDonald and AECOM.
The portfolio could fetch more than $2 billion, on a cap rate of between 5 per cent and 5.5 per cent, comparing in scale to last year's sale of the Investa Property Trust portfolio for close to $2.5 billion to China Investment Corporation. 
UBS is expected to take at least another six weeks to sort through the second round of bids, the AFR said.
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Lang Walker's Collins Square towers sale process extended, could be sold separately

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Staying ahead of the gentrification curve can prove profitable to investors, say HTW as it reports the NSW North Coast progressing from a rising market in February to approaching the peak in March, according to the latest HTW property clock.
Lismore / Casino / Kyogle
The council areas of Lismore City, Richmond Valley and Kyogle generally do not have specific areas which are undergoing gentrification or a metamorphosis from an ugly duckling to a knockout swan.
<a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%209.27.30%20AM.png" target="_blank">Click to enlarge</a>
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One possible market segment that benefits from improved appeal are those areas which over an extended period of time have transferred from public or government ownership to private ownership, such as Department of Housing properties. Generally, once such properties have come under private ownership they are renovated and subsequently rented as an investment product. As an example, most of the houses in the former Department of Housing estate on the northern ridge of Lismore Heights are now under private ownership. 
Another form of gentrification, albeit currently at a minor scale, is the identification of residential properties on traditionally quarter acre sites (1,012 square metres) close to the CBD being further improved by subdividing the land (minimum 400 square metres) or improving the property as a dual occupancy by building an additional dwelling or granny flat.
In these regional areas, any form of gentrification is only beneficial if the expected costs are more than accounted for or outweighed by the improvement in market value as an investment product. Therefore, thorough investigation and identification of the key cost factors would be crucial to success.
The ongoing low level official interest rates will continue to have a steadying impact on the overall residential market throughout 2016.
One area to keep a close eye on for 2016 is the affordable but modern detached duplex unit. Having a smaller foot print area, i.e. strata site, compared to the modern four-bedroom, two-bathroom, double garage home on typical freehold site of 650 square metres plus, not much is really sacrificed. 
The detached duplex design can vary like any other freestanding residence and still possess a similar number of rooms and garaging on a smaller site and smaller open space by employing split level, part two-level or two-storey designs. More and more people are starting to realise that a large backyard is not a necessity for young couples or mature aged couples with no children or pets.
The prices are generally lower than their larger counterparts and yet still provide good quality improvements and living accommodation. It is now commonplace to note that most corner sites in new residential subdivisions are specifically targeted for this type of development. Even within existing residential areas, some property investors are actively seeking out larger residential properties close to the CBD, i.e. houses on corner quarter acre blocks (1,012 square metres) to carry out dual occupancy development of the existing residence rather than starting from scratch with freshly developed parcels of land in a new estate.
Generally, properties within the $250,000 to $350,000 price bracket are likely to be the main price brackets receiving most of the activity within Lismore City for 2016, whereas it would be slightly lower in Casino and Kyogle at $200,000 to $300,000. However, there is an increasing supply of modern and semi-modern homes in the $400,000 plus bracket for Lismore City, thanks in part to the development of the modern residential estates dotted within Goonellabah.
The most affordable property type will continue to be the older stock of the typical circa 1970s and 1980s, two-bedroom brick and tile units of which little have sold in 2015. This is likely to continue throughout 2016, however at affordable price levels of $125,000 to $175,000 (depending on whether renovated or not) and still generating a reasonable rent return in areas close to the CBD and major educational facilities such as Southern Cross University. Good buying opportunities may present themselves providing the body corporate fees are kept in check and to a minimum.
One area of caution is the traditional 100 acre hobby farm or rural lifestyle block in semi-remote to remote localities. With the possible threat of increasing costs to maintain such properties and distance from the main centres, their popularity is continuing to fade. Already at the extreme end of the scale there is a significant fall (up to 50% in some cases) in market value for timbered, remote parcels of 100 acre lots with limited or no services over the past three to five years.
In summary, HTW expect the residential property market for Lismore, Richmond Valley and Kyogle Council areas for 2016 will continue with some assurance of stability. While unlikely to see major growth, quiet confidence should remain while couched in the hope that a low interest rate environment remains, even if there are modest rises in the banks’ rates.  
Ballina / Lennox Head / Byron Bay / Mullumbimby / Ocean Shores
The 2016 year within the Ballina residential property market could go two different ways. The strong demand and quick turnover of 2015 may continue or it could slow down around the middle of the year. 
Interest rates are still low which is one of the driving factors of first home buyers and investors. If market conditions begin to slow with interest rate increases and a slowing Australian economy, we could possibly see a slump. This could force investors to sell, which in turn would increase stock levels. However, with the new Pacific Motorway recently completed between Tintenbar and Ewingsdale, we could see a trend of Queensland buyers coming down into the Far North Coast and in particular the Ballina region.
If overall economic conditions remain unchanged, the overall market in 2016 will remain steady for the Far North Coast.
The most noted area of gentrification within the coastal localities is the ongoing development of the Ferngrove and River Oaks estates in Ballina.
The previous local stigma associated with these subdivisions due to a combination of the landfill requirements and difficulties in the land market have finally subsided. Land values are increasing in each new stage release and demand remains strong. The once swampland is now turning into a well established modern looking estate. The young (first home owners) and older (retirees) are building on the manageable, some would say, small parcels of land. Residents of these estates cannot complain about potholes or having nowhere to take the kids. New smooth bitumen roads and ample amounts of safe pathways and parks with children’s play equipment also add to the increased market acceptance and gentrification of this precinct within Ballina. 
The property markets in Sydney and Melbourne reportedly slowed in the later part of 2015 which in turn will see the coastal resort towns of Byron Bay and Lennox Head remain steady and possibly ease towards the middle of the year (there is generally a lag). 
As these towns are generally driven by interstate lifestyle changers, the market conditions upwards of $1 million will be the first indicator that the market has eased.
The lack of stock and strong demand have resulted in the Byron Bay area having tremendous growth over the past 18 months, however economic forecasters and global uncertainty will have an impact.
The lower level or entry points circa $400,000 to $700,000 will remain steady and fare better than the prestige market due to the lack of housing and strong rental returns. Investors will still see opportunity in this price bracket. 
<img src="/images/2016/03/16/main.jpg" alt="">
Examples of recent sales include a three-bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-ballina-119709471">1/2 Marge Porter Place Ballina NSW 2478</a> (above) for $310,000 recently, while a three-bedroom townhouse at <a href="https://www.realestate.com.au/property-house-nsw-byron+bay-121889094">8/2 Cemetery Road Byron Bay NSW 2481</a> (below) sold for $585,000.
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Byron Bay shows most promise in North Coast price growth: HTW

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The willingness of more than 4,500 mum-and-dad investors to commit more than $70 million to acquire a stake in the iconic S. Kidman &amp; Co pastoral holding is proof of the retail appetite for investment in agricultural assets.
Arthur Naoumidis, chief executive officer of property crowd-funding company DomaCom, said in the group’s submission to the inquiry into the foreign investment review framework by the Senate Economics References Committee that this was the only conclusion that could be drawn from the public interest in Kidman, and that should be encouraged.
He said the widespread interest in Kidman has been spawned by two inter-related themes: the public’s desire not to see rural property (as distinct from rural businesses) sold overseas and the realisation that it was a good defensive asset suited to most investment portfolios. 
Barnaby Joyce, the Federal Agriculture Minister, had last year called for a veto on foreign governments being allowed to buy Australian farmland. The comments followed as the Kidman cattle empire is for sale. 
“Although the value of agricultural land fluctuates in line with the highs and lows of climatic changes, such as drought, it attracts reasonable yields and enjoys capital gain," said Naoumidis.
“In our opinion, domestic investment into agricultural assets has the potential to be a significant game changer in the rural sector as the replacement of debt with long-term investment equity not only provides stability to rural enterprises but can substantially reduce the debt servicing load for the operating business."
Naoumidis listed several benefits, such as more robust business structures by a reduction of debt servicing, the ability to reinvest by the operator into operating assets such as cattle, feed expansion, equipment for improvement, thus enhancing the outcome of greater revenue to increase equity or for expansion.
“Business is increasingly looking to rural land, just as foreign interests are, and we should be encouraging our $2.1 trillion superannuation industry (including the SMSF sector) to increase their exposure to a 2.5% asset allocation from the current 0.3%”.
“Investment in our agricultural sector will encourage young people to stay on the land, particularly if equity capital can be crowdfunded through investment channels to give relief in the often never-ending cycle of debt that many on the land face while trying to increase productivity.
“Co-investment instead of debt leads to equity-based succession planning that is more attractive to next generation of owners and would encourage many young people to stay on the land.”
Naoumidis said there seemed to be disconnect between Australian fund managers and their overseas counterparts who clearly see a benefit in the agricultural industry.
DomaCom Australia Limited helps SMSFs acquire property through the fractional acquisition of units in a unique trust structure that enables investors to choose the property they want, it says.
It says the government must encourage more domestic investment, in spite of some failures over recent years in the agri sector, mainly because they were tax-driven schemes without the backing of solid assets such as the land. They were also heavily geared.
 
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4,500 mum-and-dad investors commit more than $70 million for stake in S. Kidman & Co 

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

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Prateek Chatterjee

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