<html><body>
The government is considering incentivising downsizing for retirees to improve housing affordability for the young, with retirees who sell off their family home likely to be offered exemptions from new limits to be placed on superannuation.
Although it is unlikely the sale proceeds will also be quarantined from the age pension assets test, The Australian Financial Review reported, citing sources.
The government has considered exemptions to both the $1.6 million cap on a super retirement fund and the non-concessional amount that can be contributed annually, if the top-up is coming from the sale of a large family home, it said.
Treasurer Scott Morrison will deliver the budget on May 9. The likely May budget package was first floated two years ago by Scott Morrison when he was social services minister, as reported by Property Observer recently.
It is hoped breaking down a few barriers will encourage older Australians to down­size homes, thereby releasing more stock to the market and also unlocking billions in capital.
While the move aims to help improve housing affordability, as promised by the government, by freeing up more stock for young families, it also hopes to help shore up the Coalition's support among its so-called base, which is still fuming over $6 billion in cuts to superannuation tax concessions contained in last year's budget, the AFR reported.
Some people are so cranky that over the weekend it emerged that Melbourne businessmen, led by Jack Hammond, QC, and John McMurrick, a former MP, were advocating a challenge to the preselection of Minister for Revenue and Financial Services Kelly O'Dwyer and replacing her with Tony Abbott's former chief of staff, Peta Credlin.
Credlin said she was not interested and O'Dwyer said she was not afraid of a challenge.
The amount of super people have does affect their eligibility for an age pension. Under the budget proposal, if an age pensioner wants to downsize and top up their super, they could do so but lose some or all of their pension.
Those to be targeted by the government policy are pretty much self-funded retirees who don't receive a pension and would be encouraged to sell their home by being able to bolster their retirement income.
Under the super changes which come into effect on July 1, a retirement account, on which the earnings are tax free, will be capped at $1.6 million. Any excess must remain in an accumulation account which will continue to be taxed at the concessional rate of 15 per cent.
Also under the changes, people aged under 65 can contribute a maximum of $100,000 a year in non-concessional contributions to their super until the $1.6 million cap is reached.
Those aged over 65 can contribute $100,000 a year in non-concessional contributions but only if they meet a work test of having done 40 hours work over 30 consecutive days.
It is believed exemptions to both the $1.6 million cap and the $100,000 non-concessional contributions cap are being considered in the event of lump sum contributions from the proceeds of downsizing. It is unclear whether some or all of the proceeds from downsizing could be used to bolster super.
Labor was the first to propose such a policy. When last in government, it announced a trial scheme in which up to $200,000 in sale proceeds would be exempt from the pension assets test. The trial was scrapped when Tony Abbott won government.
Shadow treasurer Chris Bowen was quoted by the AFR as saying that Labor still favoured the idea and would consider whatever the government put in the budget.
"Labor has supported measures to make it easier for seniors to downsize their housing without penalising them. That's why Jenny Macklin had a pilot program in the 2013 Budget to work on exactly that – a pilot program scrapped by the Liberal Party in 2013," he said.
"If the government wants to help older Australians downsize their home, why did they abolish a Labor program that did exactly that. We're receptive of similar measures subject to our normal policy processes and ensuring the government doesn't botch their implementation."
The Property Council of Australia supports exempting downsizers from the pension assets test, but only for people aged 75 and older to prevent a free for all among retirees.
"We have to reduce transaction costs which lock people into homes that don't suit them and are a big drag on the economy," said council chief executive Ken Morrison.
"As well, pensioners are discouraged from downsizing because of the way the pension assets test is configured. Some small changes to the downsizing rules could see tens of thousands of family homes enter the market."
</body></html>

prateek24-ezbwHMbNAk

Government considers super breaks for downsizers to improve affordability

<html><body>
It’s not just the residential property market that is showing strong growth, sentiment in the commercial property market too rose to a new high in the first quarter of 2017, with offices taking the lead, according to the latest NAB Commercial Property Survey Q1 2017.
The Commercial Property Index climbed 6 points to +27, with around 250 panellists participating in the Q1 2017 Survey, said NAB.
NAB Group Chief Economist Alan Oster said the improvement was reflected in a much higher sentiment for office property while industrial grew modestly.  
Sentiment in the CBD hotels sector was lower, but still very solid and highest across all sectors, while sentiment in retail property markets was unchanged, the survey said.
“Confidence levels also lifted in Office, Industrial and CBD hotels markets, but fell for retail property as household consumption continues to slow to a moderate pace across most states and territories,” Oster said.
“By state, sentiment is still highest in NSW, where it reached a new survey high, followed by Victoria. It rallied in WA but is still very weak and fell in SA/NT and QLD.” 
<img src="https://www.urban.com.au/images/2017/04/26/NABCommPropIndex.png" alt="">
The survey found that prospects for capital growth in next 1-2 years improved for CBD hotels, office and industrial property, but were unchanged for retail.
Other findings include the expectation that office property will continue to provide the best income returns in the next 1-2 years, with solid growth in NSW and Victoria continuing amid tightening vacancies in both states. Rental growth is expected to remain very weak in WA, reflecting expectations for elevated vacancy rates and oversupply.
 <img src="https://www.urban.com.au/images/2017/04/26/NABCommPropIndex2.png" alt="">
<img src="https://www.urban.com.au/images/2017/04/26/NABCommPropIndex-State.png" alt="">
Just over one in two developers expect to start new projects in the next six months, with around six in 10 projects looking to develop into residential projects, says the survey.
Funding conditions are however now considered to be harder than at any time since the final quarter of 2011, particularly for debt borrowing, and are expected to become even harder in the next 6-12 months.
More than one in four (28%) developers are looking to source more capital in the next next months, the survey said. But getting funding is now considered to be harder than at any time since Q4’11. 
<img src="https://www.urban.com.au/images/2017/04/26/NABPanel.png" alt="">
The survey was first launched in 2010 and is one of the leading surveys of market sentiment in the commercial property space. Its panel consists of real estate agents, fund managers, developers and investors.
</body></html>

Commercial property sentiment hits new high in 2017 Q1: NAB Survey 

<html><body>
Sydney is new entrant at the top of the unit market, joining Melbourne and four other areas, in valuation firm Herron Todd White’s Property Clock for April.
Ipswich, NSW Mid North Coast and South East NSW stay at approaching the peak of the market, according to HTW. 
Meanwhile, Darwin is the new entrant to the bottom of the market, joining Adelaide, Emerald and Whitsundays.
<img src="https://www.urban.com.au/images/2017/04/20/April21HTWUnits.png" alt="">  
Sydney 
Greater Sydney has been a hot market for the past few years, mostly due to a sustained period of low interest rates, demand outstripping supply in most areas, overseas buyers entering the market, tax incentives, media interest and an increase in values in the entry level pushing up the middle and upper level of the market. These issues combined have caused a wave of interest resulting in a market that hasn’t been this hot for decades, say HTW.
For units, the best performing suburbs are Mosman and Cremorne, according to the valuation firm. 
Local agents have identified a sweet spot for two-bedroom units of between $900,000 and $1.2 million. 
Property Observer found this recent sale in Mosman, a two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-nsw-mosman-125173254" target="_blank">11/12-14 Bardwell Road</a> that changed hands for $1,230,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/MosmanHTW.jpg" alt=""> 
“This will get you a larger, older style unit appealing to a wider market segment. This price bracket is well suited to a professional couple wanting a low maintenance unit within close proximity of the city. The problem is the lack of stock driving up demand (and prices) further,” says HTW.
In the outer western suburbs of Sydney, there is strong interest in suburbs such as Richmond and Hobartville. With older ex-defence housing, it’s an affordable alternative as the median is $602,500 for Hobartville and $660,000 for Richmond according to realestate.com. 
For that you can get a 550 square metre block with a partly renovated dwelling within close proximity of Western Sydney University’s Hawkesbury campus, TAFE, Richmond RAAF airbase and train station. Many buyers have been attracted to this area due to the lower entry point and facilities provided. 
Within the eastern suburbs unit market, the suburb of Coogee has been a stand out performer, especially in the $1 million to $1.5 million price bracket. The 2016 median price for Coogee units was $1,037,500 which is up 17.9% from 2015 (source: PriceFinder).
As an example of what this median unit price will get you, <a href="https://www.realestate.com.au/sold/property-apartment-nsw-coogee-124752418" target="_blank">7/3-7 Kidman Street, Coogee</a> recently sold for $1.125 million. This property was a near original 1970s unit comprising 2-bedrooms and 1-bathroom with a one-car lock-up garage and features restricted ocean views. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/CoogeeHTW.jpg" alt="">
This market is driven by both investors and owner-occupiers which comprise a mixture of singles, couples and down-sizers. The desirable beachside location has always been a main driver for the Coogee unit market and with limited new unit development in the area, we expect to see the trend of strong growth continue into the future. 
The St George area is also continuing its strong growth period with hottest price points for houses generally being $1 million to $2 million and $660,000 to $700,000 for units.
When analysing the unit market, Brighton Le Sands gets a notable mention as a strong performer with a 2016 median unit price of $680,500, up 4.7% from 2015. 
Melbourne
Apartments in the inner city which have a point of difference are performing well compared to the rest of the apartment market, say HTW. Off-the-plan apartments have received much negative publicity in recent times, however apartments which have high-end finishes in desirable locations with good views are continuing to fetch good returns for investors. 
As an example, Property Observer found a two-bedroom apartment at <a href="https://www.realestate.com.au/sold/property-apartment-vic-melbourne-124920526" target="_blank">2303/279 Latrobe Street</a> that recently sold for $478,500.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/MelbourneHTW.jpg" alt="">
 
 
 
 
 
 
 
 
</body></html>

Sydney joins Melbourne at the peak of market on HTW's April property clock for units

<html><body>
‘Don’t buy’ is the advice to young Australians thinking of owning property from one of Australia’s leading economists, Deloitte Access Economics economist Chris Richardson.  
The advice confirms the uncertainties around Australia’s property market, as the government looks at ways to make housing more affordable, although there is scepticism about how much they can actually affect the market.
"The one bit of advice I give to young Australians is right now you know...amid our housing markets of the moment is 'don't buy'," Richardson told the National Press Club recently, as reported by The Australian Financial Review.
"Although there are elements of rental stress, and governments can be involved in helping to do things around there and indeed governments have a bigger role there than in other parts of housing markets, let's not forget that rents today make a lot more sense than housing prices,” he said.
Even Treasurer Scott Morrison spoke at length about the private rental market the same week at a speech on housing affordability ahead of the budget, when the government is expected to deliver an affordability package.
He noted that just over two thirds of households are owner occupiers, and almost a third rent - a quarter rent in the private market, and just under 5% rent through community housing providers at sub-market rates or in public housing.
The Treasurer, while acknowledging the affordability issues for both home buyers and renters, said any measures to deal with the situation “must involve a scalpel, not a chainsaw as advocated by the Labor Party”.
While Morrison – and others in the government – have raised the spectre of a range of measures the government was contemplating to make housing affordable, Richardson put a reality check, saying – relative to recent moves in house prices – the impact of any government policy change would be marginal at best.
Referring to Morrison’s speech, Richardson said:
“The most overlooked thing [the Treasurer] said was that there was no silver bullet around this.
“You absolutely do need to look at renters who are of course the flip side of looking at investors.”
He said the government could do "heaps of things", but when "you have more than nine million homes and families in Australia, you're not necessarily going to change things heaps".
"You need to understand how small the levers they have on how big a market the Australian housing market is.”
"They might affect prices by 2-3%: we easily did more than that over the course of November-December".
</body></html>

"Don't buy" property right now, economist Chris Richardson tells young Australians

<html><body>
Regulatory action on multiple fronts to cool prices in an overheated market, which many see as a bubble at risk, could be a case of overshooting and there are dangers signals hidden in a sharp drop in prices, says a leading columnist.
“There is an unease in large parts of the residential property market. Such an unease normally triggers a fall in prices,” according to The Australian columnist Robert Gottliebsen.
A warning by Deloitte Access Economics’ Chris Richardson to first-home buyers that now was a bad time to buy was roundly criticised, but Gottliebsen said he was picking up similar danger signals in parts of the industry itself because of the multiple attacks on the vital housing industry.
“And down in budget preparation land they are planning new attacks with the aim of making it easier for first-home buyers. Scott Morrison, be careful what you wish for,” he writes.
The current volley of attacks, according to Gottliebsen, are:
<ul>
<li>Chinese and other Asian foreign investors want to buy but they get no help from local Australian banks because they can’t prove their income in China to our banks. At the same time, China is making it almost impossible for money directed to Australian housing to legally leave the country. The Chinese who bought apartments “off the plan” two or three years ago are forced to find dubious ways of getting money out of China and/or pay the high interest rates required by the rapidly growing unofficial and unregulated finance system. There is a massive Chinese investor funding problem in Melbourne and a lesser one in Brisbane.</li>
<li>Chinese are re-entering the “off the plan” market with great gusto in the belief that their government will change the rules and/or there will be a reversal in Australian banking attitudes. If we do manage to get through the Melbourne small apartment oversupply problem we are laying the foundations for another and deeper crisis if the current Chinese funding rules do not change.</li>
<li>In the “second-hand” dwelling market, for the most part, Chinese investors do not participate because it is illegal without FIRB approval. However there is clearly buying by local Chinese who have some sort of agreement with their relatives/ friends in China. But the Australian government is cracking down on these arrangements.</li>
<li>The “second-hand” market is largely made up of locals who are pushing up the prices in many areas of Sydney and Melbourne. While there is the normal high activity in house swapping and many first-home buyers in outer suburbs, the biggest force in the market for both apartments and houses is investors.</li>
</ul>
Local investors comprise high-income medical professionals but also teachers, police and trades people like plumbers. The uncertainty about superannuation means people see negatively geared dwellings as a more reliable retirement vehicle, he says.
They have also increased interest rates on investor loans and residential rate loans are being edged up. And so the forces that drove the “second-hand” market higher are being reversed with some savagery. And at the same time, about every regulator is warning of a bubble.
<ul>
<li>Outside the public service, wages are not rising, which exposes risk to the one-third of Australian borrowers (according to RBA figures) who have not built up a repayment buffer, or are less than one month ahead on their home loan repayments. These borrowers are very exposed to an economic downturn or rise in interest rates and shows how vulnerable the current situation is to any further blows in the budget.</li>
<li>There are signs that in Sydney and Melbourne the squeeze on land for development is being eased, particularly in Sydney. The major developer in Sydney, Meriton, has announced that it plans to lift production because long-delayed permits are finally being issued.</li>
</ul>
With all these forces being lined up, home prices should fall but are being help up by the rising populations in Melbourne and Sydney; the rush of foreign students and tourists and problems developers are having organising finance, he says.
In addition, if Labor wins the next election it will most likely dump negative gearing. Hence, investors are buying property before it’s too late. 
Rents in most areas are not falling. Those forces will probably stop a significant fall unless there is a major adverse global event or the budget attacks too hard. And if there is a significant fall the whole Australian economy will be affected, so multiplying the fall, warns Gottliebsen.
“My fear is that the regulators are using weapons to curb the boom that have not been used in a long time. There is risk of overshooting."
</body></html>

Danger in excessive moves to cool property market: Gottliebsen

<html><body>
Limiting how much investors of multiple properties could negatively gear and a possible cap on the number of investor properties has divided the industry even as the government toys with ideas to cool the overheated property market.
The suggestion was favoured by SQM Research managing director Louis Christopher, who said a limit was a good idea “conceptually”, according to Fairfax Media.
The new debate opened up after news broke that the government is examining the possibility of putting a limit on the number of properties investors can buy or impose a dollar value limit on how much can be negatively geared by investors.
Questions around the preferred option hinge on how to find a measure that recognises large differences between property markets around the country and avoids generating new regional or price-bracket distortions, The Australian Financial Review reported, citing sources.
“For those who own 20 properties that are all negative geared, it does need to be done,” Christopher said. “But where you draw the line is political – two properties? Five?
“It’s a very small proportion of the population when you get to three properties plus, and at that point it would only have a small effect [on the market].”
A limit of one property would, however, have an impact on the overall demand from investors, he said.
The government has ruled out dumping negative gearing, and has also shown reluctance to lowering capital gains tax concessions. It has promised a housing affordability package in the May budget.
Experts say the latest idea is not a fix for affordability.
Grattan Institute chief executive John Daley told Fairfax Media that the idea was “genuinely stupid”.
In fact, one of the major problems facing those in the housing market today was not multiple property owners but so-called “mum and dad” landlords with just one investment property, Daley said.
“One of the fundamental problems with the Australian rental market is that it doesn’t have enough multiple property landlords,” he said.
Data from the Australian Taxation Office found slightly fewer landlords in the market but more investment properties per landlord overall.
But a majority of Australia’s 2 million landlords did not have a substantial portfolio – 72 per cent had one property in the 2015-16 financial year and 90 per cent had two or fewer.
Daley said those with large portfolios – such as 10 or 20 investment properties – would be more inclined to offer long-term leases and stability for tenants.
“There are very few big landlords and very few long-term tenancies.”
He said while the idea of portfolio investors helping the market was “counter-intuitive”, it did not make sense to blame housing affordability on a small number of multiple property owners.
BIS Oxford Economics senior manager residential Angie Zigomanis said a cap was not a good idea.
“If someone wants to add more properties to the rental stock, I don’t think we should be stopping them,” Zigomanis said.
Limiting deductions that could be claimed was more effective, as it would “reduce the willingness of an investor to pay top dollar for the property”, he said.
Domain Group chief economist Andrew Wilson said any moves to interfere and reduce investment activity would be a “disruption in the rental market” – whether from altering the tax mix or limiting how many properties investors could buy.
“It would cause higher rents, and we already have a tight rental market,” Dr Wilson said.
</body></html>

Industry divided over idea of cap on investment properties for negative gearing 

<html><body>
High taxes are taking a toll on new house and land packages built in Sydney’s South West, with taxes comprising about 30% of the cost to produce them, according to research by developer The Monarch Investments Group (Monarch). 
Taxes for an average sized house and land package include GST of $65,909, stamp duty of $26,813 and council and state contributions $30,500, Monarch said in a media release.
Monarch chief executive Peter Icklow said the government should look at various measures to improve housing affordability for the younger generation. 
These include reducing the GST on new houses, perhaps placing that shortfall of revenue on all houses and lowering stamp duty as well as reducing infrastructure levies, he said. 
"Ten years ago in Macquarie Links Estate a house and land package on a 800 square metres lot was $700,000, today it is over $1.1 million for the same size home,” Icklow said.
"The tax percentages have remained the same however, with the increase in land and house prices the amount the government is pocketing is vastly different.
"They are billions of dollars richer from the capital growth in property and land.
"Since 1955, we have developed over 6,000 land lots in our masterplanned communities, with over 50 per cent located in South Western Sydney. The biggest change we have witnessed is the shrinking land lots."
Ten years ago the average sized lot in Macquarie Links was 800 square metres, whereas now Monarch is building triplexes on 180 square metres at The Meadows. 
“Land is simply too expensive. We are building smaller lots to meet purchaser demand,” he added.
“The first home buyer market is alive and well in the South West. In recent years, we have witnessed first home buyer city dwellers renting apartments now moving into the suburbs. They are after space to raise children and good infrastructure and facilities. The South West is providing this with billions of dollars being spent in the region from both the private and public sector,” Icklow continued.
He said first home buyers have bought more than 90% in The Meadows in Bardia while at the finished Ingleburn Gardens Estate, their proportion was 80%. 
“We are finding that downsizers from inner city locations that have built up good equity are also now starting to move out. Many people are selling homes worth around one to two million, purchasing a new home in the South West for around $700,000 and then using the excess for holidays or hobbies.”
The Meadows will have 210 houses and more than 30% is already sold. It is located directly beside Monarch’s Ingleburn Gardens Estate and across the road from the company’s first flagship development in the area, Macquarie Links Estate.
The development will have a swimming pool, playground and recreational facilities. 
Prices start from $669,950 to $789,950 (average $709,950) for a three bed duplex and range in lot size from 230 square metres to 300 square metres. 
 
</body></html>

Taxes take 30% of south-west Sydney land and house packages: Monarch

<html><body>
The changing dynamic of home ownership in the US post-GFC, where Generation Y have transformed into Generation Rent, offers opportunities for Australian investors, says a study by AMP Capital.
The demographic shift leading to a steady decline in home ownership and its implications for real estate investors and the opportunities within the US apartment REIT sector has been dealt with in AMP Capital’s whitepaper, Generation Rent, authored by its Client Portfolio Manager for Global Listed Real Estate Chris Deves.
“The ever-changing consumption pattern of real estate, juxtaposed against its status as perpetual imperative for a functioning society, presents an interesting dynamic and is precisely that which offers a wide range of opportunities for long-term investors,” says Deves.
The rise of the millennial generation and its implications for the residential market in the United States is a case in point, he adds.
“The greater propensity for millennials to rent isn’t necessarily a surprise. After all, this is the same generation that pioneered the ‘sharing economy’, a collaborative approach to consumption, which draws heavily on the notion of renting,” said report author Chris Deves.
Millennials are opting for proximity to nightlife, restaurants and the workplace along with access to shared spaces and amenities, which is translating into greater demand for rented apartments in the urban core, he says. 
“As a demographic cohort, the strong willingness of millennials to relocate in the pursuit of new career opportunities necessitates flexibility and mobility, which is also more conducive to renting over owning.”
The paper shows this is an important tailwind for US apartment REITs, which make up roughly 8 per cent of the global listed real estate benchmark or more than US$100 billion of equity market capitalisation.
The development in American dwelling habits is a positive for residential landlords, which in turn is investible via the listed institutional apartment operators. 
US-based apartment REITs make up roughly 8 per cent of the global listed real estate benchmark, or more than US$100 billion of equity market capitalisation, the third-largest US sector behind mall and office owners. The apartment REITs are generally of high quality and have seen significant consolidation in recent times – five such REITs have been acquired or have merged during the past three years alone – leaving an investible set of large, well-capitalised companies with seasoned management teams, according to the AMP report.
“This has made apartment REITs attractive for real estate investors with a long-term investment horizon,” Deves said.
<a href="https://www.propertyobserver.com.au/images/2017/04/19/USHomeOwnership.jpg" target="_blank">Click to enlarge</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/USHomeOwnership.jpg" alt="">
The assets held by these listed apartment REITs are predominantly located in the urban core where renting is most common. The change towards rentership (and, thus, migration into the city) is a positive for increasingly dense and difficult-to-build-in urban property markets. Additionally, an increasing focus on public transportation links should further benefit the high-quality apartment names.
Enter the Millennials
According to the white paper, the fall in the homeownership rate in the aftermath of the GFC was in part due to the rise in defaults on home loans. Though the default rate has recovered to 4 percent in 2016 from 11.3 per cent in early 2010, the declining trend of home ownership has sustained over the longer term.
Now, America is undergoing a major demographic shift. Millennials – or those born between 1980 and 2004, according to the US Census Bureau – are now the largest share of the American workforce, as depicted in Figure 4. By 2025, Millennials will represent 75 per cent of the American workforce [Source: US Bureau of Labor, 2016]. As the largest source of new demand for housing, be it home sales or rentals, this cohort wields significant influence over the residential real estate market.
The most important trend underlying the Millennial demographic is a greater propensity to rent, particularly in the urban core, at the expense of homeownership. 
The movement of the prime renter demographic into the city centre will have an impact on apartment values. Cities have historically had a larger share of renters compared to suburban areas. So it is not surprising to see that the populations of US cities have become increasingly composed of renter households alongside the national increase in renters. Of the 11 largest US cities, nine had more renters than homeowners in 2014 versus just six of these same cities in 2006. 
As a result of this migration away from the suburbs and towards the city, the apartment business has become a more attractive full-cycle investment. A bigger pool of renters means a more stable business at a given level of supply; additionally, an increasingly older tenant mix (Millennials rent later into life) should improve affordability ratios and allow for healthier rent increases. 
Lastly, because of land and entitlement constraints in dense, urban areas – which will become increasingly more onerous over time – high quality, core product will become scarcer as demand from renter households continues to increase, and thus, should appreciate at a faster pace. 
<a href="https://www.propertyobserver.com.au/images/2017/04/19/USAptReits.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/19/USAptReits.png" alt="">
However, millennials won’t rent forever.
“The American dream of home ownership is not dead and buried. Gen Y are just as likely to head for the suburbs as previous generations, and starting a family is often an important catalyst. The key difference is that we are seeing this occur increasingly later in life,” said Deves.
“Cyclical affordability issues and demographic change has and will support demand for apartment rentals in city centres. During the property cycle, the US apartment REITs should therefore be in a stronger position to push rents, and quality management teams with insight into the needs of millennials will be best placed to deliver value for investors of all sizes.”
While the story is similar for Australian millennials, investing in the US could be an ideal way to play this trend for local investors as it offers the largest, highest quality, and most liquid set of listed apartment landlords, according to the report.
“Australian investors should consider a global strategy for listed real estate in order to access these kinds of thematics, which may not be as readily investible in their local market. A global approach also offers geographic diversification for the real estate portfolio,” concluded Dewes.
</body></html>

As US home ownership declines, opportunity arises for investors: AMP Capital

<html><body>
A long-standing motel in Brisbane’s inner suburb of Hamilton has been sold through Savills for an undisclosed sum, although the transaction is believed to be around $2.5 million.
The Kingsford Riverside Inn at 114 Kingsford Smith Drive comprises 25 rooms, a manager’s residence, reception area and other utilities. The 3 Star rated motel is also conveniently located opposite a 24 hour service station.
The four-storey motel was built in 1957 and has been owned and operated for the past 17 years by a local Brisbane couple who are now heading for retirement. It was bought for $450,000 by Daniel and Jane Doyle, according to CoreLogic RP Data.
The freehold motel property is set on an area of 663 sqm. 
The sale to private Sydney-based buyer was brokered by Nic Simarro and Tim Packman of Savills. 
The new owners have promised an extensive refurbishment, according to The Courier Mail.
Simarro said the property attracted much buyer interest due to its prominent high-exposure location on Kingsford Smith Drive. It is close to the airport and Brisbane CBD.
“Given the location, substantial landholding and favourable zoning, the property provides excellent medium-term redevelopment potential,” Simarro said.
Packman said the riverside setting provides panoramic views of the Brisbane River.
He said the site is prime for repositioning as it is zoned ‘High Density Residential (Up to 8 Storeys)’ and provides an opportunity for future redevelopment, subject to Council approval. 
“The underlying land rich nature of the site presents great flexibility in future uses to capitalise on the high level of infrastructure and development activity in the surrounding area,” Packman said.
</body></html>

Landmark riverside motel in Brisbane’s Hamilton sold through Savills 

<html><body>
A mortgaged three bedroom home is the Australian norm, according to a preview of the 2016 census released by the Australian Bureau of Statistics.
In 2016, the ‘typical’ Australian home is owned with a mortgage as opposed to outright ownership in 2006. But this varies across the country, according to the preview of the 2016 Census of Population and Housing that highlights the key characteristics that make the ‘typical’ Australian in 2016 and highlighting the country’s diversity.
The first Census data release is scheduled for June 27, 2017. This will include datasets for all national, state/territory and capital cities, along with datasets for small population groups and small geographic areas such as suburbs and local government areas.
The Australian home varies from state to state, says the ABS. For example, the ‘typical’ home in Tasmania and New South Wales is owned outright, while the ‘typical’ Northern Territory home is rented. In 2006, the ‘typical’ Australian home was owned outright.
The 2016 Census says the ‘typical’ Australian is a 38-year-old female who was born in Australia, and is of English ancestry. She is married and lives in a couple family with two children and has completed Year 12. She lives in a house with three bedrooms and two motor vehicles.
The age of the ‘typical’ Australian varies across the states and territories. 
The ‘typical’ Australian male is 37 years old.
In 2016, the ‘typical’ migrant in Australia was born in England and is 44 years old; a decade ago they were aged 46. There are however some differences between the states – the ‘typical’ migrant in Queensland was born in New Zealand, while in Victoria the ‘typical’ migrant was born in India. The ‘typical’ migrant in New South Wales was born in China.
The June release will follow the completion of the ABS’ usual data quality assurance process and the Census Independent Assurance Panel’s quality assurance work.
The Census process, conducted on the night of August 9, headlined the news soon after after the ABS website was hit with cyber attacks forcing a shut down for two days. 
The ABS will release data regarding employment, qualifications and population mobility from October 17,  2017. 
The lists below show when data related to each Census topic will be released, ABS said in the release. Each topic will have a number of data items associated with it.
JUNE 2017
Sex
Age
Residential status in non-private dwelling
Registered marital status
Aboriginal and/or Torres Strait Islander origin
Usual residence at Census time
Australian citizenship
Country of birth
Year of arrival in Australia
Country of birth of parents
Main language other than English spoken at home
Proficiency in spoken English
Ancestry
Religious Affiliation
Need for assistance
Attendance at an educational institution
Highest year of schooling completed
Number of children ever born
Income
Unpaid work
Address on Census night
Family relationship (and Social marital status)
Number of motor vehicles garaged
Number of bedrooms
Tenure type
Landlord type
Housing costs
Dwelling internet connection
Dwelling structure
Location of private dwelling 
Type of non-private dwelling
 
OCTOBER 2017
Internal migration (address of usual residence 1 year ago and 5 years ago)
Non-school qualification
Labour force status
Status in employment
Occupation
Public or private employer indicator
Workplace address (Journey to work)
Industry of employment
Hours worked
Method of travel to work
</body></html>

ABS census preview says mortgaged three bedroom home is the Australian norm

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Prateek Chatterjee

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News