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GUEST OBSERVATION
A poster in the head office of a state planning agency claims: “Highest Housing Approvals in a decade: Keeping homes more affordable”. Indeed, the <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0" target="_blank">latest figures</a> show national housing approvals rose 16% between June 2013 and 2014. Given ongoing concern about housing affordability and supply in Australia, this sounds like good news. But that assumes increasing supply will fix affordability.
Some people liken houses to bananas. When the supply of bananas drops, prices rise. The Property Council of Australia has called this <a href="https://www.propertyoz.com.au/library/MR%20RDC%2007%20Banana_nomics%20housing.pdf" target="_blank">“banana-nomics”</a>. In 2007 it sent plastic bananas to state and federal MPs with a crib sheet on housing affordability. Recalling Cyclone Larry, which devastated fruit farms in Northern Queensland, its <a href="https://www.propertyoz.com.au/Article/NewsDetail.aspx?p=56&amp;mid=302" target="_blank">message</a> was simple – when there is a shortage of bananas, the price goes up. With housing, the disaster wasn’t a cyclone but rather “excessive delays”, “inconsistent planning” and inadequate land supply.
Banana-nomics does seem to explain the behaviour of fruit markets. When the next cyclone hit Northern Queensland (Yasi in February 2011) the price of bananas again <a href="https://www.woolworths.com.au/wps/wcm/connect/website/woolworths/about+us/woolworths-news/banana+prices+following+cyclone+yasi" target="_blank">skyrocketed</a> because of a shortage of supply. As predicted, when banana supply recovered (doubling from 200,000 cartons in week 44 of 2011 to 400,000 cartons in week 48 of 2011) net prices <a href="https://abgc.org.au/article-title-3/" target="_blank">reduced</a> for farmers by 61%.
But by way of contrast, between 2010/11 and 2013/14 when Sydney dwelling completions doubled from 14,000 to 28,000 dwellings, housing prices went up by 21%. In other words, a “just make more” strategy will fix the problem of expensive bananas, but not expensive houses.
Houses are not like bananas
Here are some reasons why.
<ul>
<li>Prices for housing are set by the total housing market, not just the 1-2% that are built every year.</li>
<li>When the price of bananas goes up, consumption goes down, and vice versa. Not so with housing markets – perversely, demand for houses in the short term often increases along with prices, due to expectations that prices will continue to rise and the fact that we all need somewhere to live. Aspiring homeowners and investors want to get into the market before it lifts further, both to minimise housing payments and to enjoy capital gains.</li>
<li>A rise in house prices is often accompanied by a decrease in interest rates. Home purchasers focus on the repayments they have to make and hence are not discouraged by rising prices, in some cases because they see their repayments reduce because of interest rate decreases.</li>
</ul>
 
Increasing housing supply is very important and price increases over the last few years would have been more severe if we hadn’t been able to double the supply of new stock in Sydney. The boom in inner-city apartments in Brisbane, Melbourne and Sydney is also leading to rents decreasing in some suburbs. And in some suburbs if we keep building high rise apartments, prices will correct.
But a simple policy of “let’s just build more housing” is not enough to meet the pressures falling on the shoulders of low and moderate income households.
Article continues on the next page. Please click below.
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The problem with industry-led policy
Industry <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Affordable_housing_2013/Submissions" target="_blank">submissions</a> to the pending Senate inquiry into housing affordability don’t seem to get this point. They continue to emphasise a supply-based response to the problem of housing affordability, calling for planning reform as the way to achieve this.
Where specific reforms have demonstrated impacts on housing supply, there are good arguments for wider replication.
One example is permitting accessory dwellings (a.k.a granny flats) as of right, on suburban lots in NSW. This enormously popular measure has resulted in a notable spike in dwelling approvals (around 1000 per year since its introduction in late 2009). Certainty has enabled manufacturers to prefabricate designs, bringing down costs and helping diversify and intensify housing options in existing neighbourhoods.
Another recent reform in NSW greenfield growth centres codifies integrated townhouse and other low-rise medium-density designs in new-release areas, over-riding the stagnant mono-zoning that has imprisoned Australian suburbia since the 1970s.
But the objective behind these and other planning strategies to increase housing supply – particularly through new medium- and high-density homes near public transport – is not really about lowering house prices. Rather, the policies aim to transform and expand the existing housing stock in response to changing demand.
Structural issues remain
More is needed to address the structural affordability barriers faced by low and moderate income earners. These barriers reflect unprecedented price rises enabled by financial deregulation in the 1980s, falling interest rates and rising household incomes in the 1990s, and, in the latter period, increased capacity for home owners to leverage this wealth in a competitive housing market.
Despite this demand-fuelled price inflation, Australia has generally avoided the speculative over-building that infected the US, Ireland and Spain before the global financial crisis. That’s a good thing, since in those countries oversupply weakened the housing industry overall and has undermined economic recovery. Worse, the crash didn’t correct affordability problems facing low and moderate income earners (hit particularly hard by the crisis).
Australia’s housing and development industry have (in general) moderated output to match changing market trends. That’s why we see increased housing production at the same time as rising prices.
Rather than pretending that more apartments in the inner city and greenfield estates on the fringe will correct the affordability barriers faced by low and moderate income earners, we need a commitment to increasing the supply of dedicated affordable housing – including approaches like the aborted <a href="https://theconversation.com/rental-affordability-scheme-fears-are-misplaced-24338">National Rental Affordable Housing Scheme</a>, and serious capital funding for social housing. Several of the submissions to the parliamentary inquiry call for these measures, including submissions by the Property Council and other industry representatives.
However, without widespread provisions to ensure social, rental and low-cost home purchase options are incorporated within major housing developments, particularly developments involving government land, our deepening affordability problems won’t go away.
Looking at recent projects such as Barangaroo in Sydney where affordable housing requirements are only 2.5% of total residential floorspace (and the developer is now trying to shift them off-site) provides reasons not to be optimistic. However, the public mood could be changing about this issue.
John Howard once said no one was going to complain about their house prices going up. Many parents in capital cities in Australia are realising that instead of using this housing windfall to fund their retirement, they are now going to have to use it to fund the housing and careers of their children. They are not happy about this. Their children are just as angry. The family coalition is looking for someone to blame. They want some action: not just glib slogans on posters or banana-nomics.
Nicole Gurran is associate professor at <a href="https://sydney.edu.au/" target="_blank">University of Sydney</a>.
Peter Phibbs is chair of urban planning and policy at <a href="https://sydney.edu.au/" target="_blank">University of Sydney</a>.
Nicole Gurran has received funding from the Australian and Housing Research Institute and the Australian Research Council.
Peter Phibbs has received funding from AHURI on related research.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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It's bananas! Increasing supply isn't enough to satisfy hunger for affordable housing

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Nineteen electrical retailers and wholesalers have recalled thousands of electrical cables that failed to meet electrical safety standards.
The Australian Competition and Consumer Commission said on Wednesday it estimates 40,000 households and businesses could be affected by the recall of the cables, which were supplied in all states and territories except the Northern Territory.
The Infinity cables, sourced from a company called Infinity Cable Co, were sold by 18 Masters Home Improvement stores and one independent wholesaler between 2010-2013 in NSW, between 2011-13 in the ACT, 2012-13 in Victoria, Queensland, South Australia and Western Australia, and in 2013 in Tasmania.
ACCC chairman Rod Sims said the recall is being co-ordinated by a taskforce of consumer agencies, building regulators and electrical safety regulators.
“Testing has found that the cables will degrade prematurely and if the cables are disturbed, the insulation could break and expose live conductors, resulting in possible electric shock or fires,” Sims said in a statement.
Households and businesses that had electrical work carried out during the relevant periods of time are urged to contact the responsible builder, electrical contractor or appliance installer to see if the cabling was used.
Further information is on the <a href="https://www.accc.gov.au/media-release/national-infinity-electrical-cable-safety-recall">ACCC website</a>.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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40,000 households and businesses affected by electrical cable recall

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A small construction company is aiming to tackle Tasmania’s high rates of obesity and cardiovascular disease by starting to change people’s attitudes to exercise and healthy eating in the workplace.
Ronald Young &amp; Co Builders in Hobart have been constructing homes in southern Tasmania for more than 40 years. Husband and wife duo Lisa and Paul Burnell purchased the business in 2011 and immediately recognised the importance of implementing a successful health and wellbeing program.
Lisa Burnell said research shows <a href="https://www.smartcompany.com.au/people/42402-one-in-five-workers-has-stayed-home-in-past-year-because-they-felt-mentally-unwell-study">healthy workers are nearly three times more productive than unhealthy workers</a>. In addition, they have fewer sick days and workers compensation claims.
“The benefits to our business have been that it’s been enhanced teamwork and workplace morale,” she said. “It demonstrates that we value a positive work environment.”
As part of the program, the company’s 10 permanent employees receive free health checks on site – such as blood pressure monitoring – and are encouraged to eat healthy and exercise.
“I’m a registered nurse so I have found it easy to incorporate this into our business,” Burnell said when describing the program. “I also develop an annual calendar of events and other initiatives – men’s health, prostate awareness, cardiovascular disease. There’s a lot of information out there.”
The business’s actions have not only improved their brand image but also their involvement in the local community.
“Tasmania has one of the highest rates of obesity,” she said. “Construction workers are blue collar workers and alcohol and smoking is high. So for me with my background it’s good to be able to try to initiate some health improvements.”
Burnell points out while a lot of SMEs don’t have the time or resources to implement a health and wellbeing program as extensive as theirs, if you are a business owner it is still worth putting health and safety high up on your list of priorities.
“The return on investment is high,” she said. “It’s not only our legislative obligations – and I think a lot of businesses are aware it’s good business.”
Burnell said if other small enterprises wanted to follow suit, then her top tips would be to include health and wellbeing in the business’s core values and to get staff involved.
“Do a needs assessment,” she said. “See what your health needs are in your workplace. Start off small and network with other businesses.”
This article first appeared on SmartCompany. 
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Meet the Tasmanian construction company giving its workers free health checks

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PARTNER CONTENT
Unfortunately, waiting until a development is completed is a sure-fire way to miss out on the best opportunities within the complex.
Buying a property off the plan may be one of the only options you have to purchase a property within a popular area. So here are six tips you need to know about buying off the plan properties to make sure you get the place you want.
<ol>
<li>
Take advantage of displays. Despite the fact that you can’t see the finished property, you need to find out what kind of quality you’re purchasing. The developer should have a display set up where you can see the finishes and fixtures you can expect within your new place. Then, ask for previous projects they’ve completed and how you can get in to inspect how they’ve lasted. 
</li>
<li>
Learn to understand floor plans. This may seem fairly basic, however it is essential to understand how large rooms are when buying off the plan. Measure it out in an existing property and work out what space you have. Does your bed actually fit into your new bedroom? A good tip is to mark out your new room and use newspaper on the floor to represent furniture sizes. 
</li>
<li>
Finance clauses are worthless, or are they? Due to the potentially lengthy time before completion of an off the plan purchase, banks are generally not willing to give unconditional approval on the loan in the event the market shifts. As such, if the market declines you could be dipping into your savings when you finally settle, so budget for this just in case. It is still a good idea to include a finance clause in your contract and get a valuation (‘as-if-complete’) when you’re getting your initial approval. This will allow you to gauge how the property stands within the current market, as well as how the bank views the area and the property’s potential.  
</li>
<li>
Befriend your council Most city councils have online databases with zoning, neighbourhood plans, infrastructure works and development application details. It’s quick and easy to check what’s going on around your potential purchase, as well as making sure your new view will stay the same, at least for the foreseeable future.  
</li>
<li>
Use the time wisely Buying off the plan can have benefits other than just getting the pick of the complex. Generally off the plan purchases only require a 10% deposit with the balance due at settlement; so you can keep saving until then to reduce your mortgage. Getting in early also allows you to customise your new place; ask the developer what finish options you can change to truly make it your own.  
</li>
<li>
Get early legal advice Even though settlement may be 18 months away, get legal advice as early as possible, preferably before you sign any contracts. Amongst other things make sure you understand the delivery timeframes of the projects, the sunset clauses and confirm what you’re actually purchasing.</li>
</ol>
By conducting your due diligence and taking your time, you can take advantage of what off the plan purchasing can offer buyers; a way to secure a quality property in the future, at today’s price.
ANDREW HERBERT is partner of <a href="https://myfirstplace.com.au/Property-Observer" target="_blank">My First Place</a>.
<a href="https://myfirstplace.com.au/Property-Observer" target="_blank">My First Place</a> is offering a buyers club to support buyers in finding their property. For August, club membership is free to Property Observer readers.
For First Home Buyers there’s a package worth $4,200 that covers solicitor fees, mortgage application fees, building inspection, insurance and utilities.
For investors the package is worth $3,350 and it covers solicitor fees, mortgage application fees, building inspection, landlord insurance and a depreciation schedule.
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Six tips you need to know about buying off the plan

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GUEST OBSERVATION
This article is a response to Property Observer article “<a href="/expert-insights/how-independent-is-a-property-valuer">How independent are property valuers?</a>” 
Q: How independent is a property valuer?
A: Very.
Propell prides itself not only their level of independence but also their commitment to quality. Propell valuers are all registered with the API and have received certified qualifications, and as rightly pointed out by Edwin Almeida in his Property Observer article 'How independent is a property valuer', valuers undergo years of university-level training to complete the jobs they do.
Propell’s well document quality management process is regularly communicated to clients, and updated to reflect changes in the market and property industry in general.
Time pressures are a reality in any professional services environment, however our valuers continuous commitment to quality is paramount.
Our staff are governed by the Australian and New Zealand valuation and property standards, as set out by the Australian Property Institute and these include strict guidelines in relation to independence, ethics, honesty and professional competency. The maintenance of these standards are not a matter of opinion, they are a professional requirement.
Propell valuers are accredited and experienced in the valuation industry and all work to ensure internal quality assurance and compliance to API standards. As stated by the API: “Following accreditation, CPVs continue to update their knowledge with regular professional development courses within the API. And this means that rather than dealing solely with statistics or relying on ‘gut feeling’, CPVs have a hands-on, professional approach and work with well-established processes and standards to produce valuations that are robust, reliable and independent.”
Our sophisticated valuer support department means our teams of valuers are backed up by a comprehensive and highly effective support model, allowing the maximum amount of time between appointments, always ensuring valuers have adequate time to appropriately assess the property in question and provide an accurate valuation figure.
We encourage owners to prepare information and do their homework when preparing for their property to be valued. The process of valuing a property is not at all simple, and the more information our teams have access to, the better. Our independent and internal research department also equips our teams with the most up-to-date and property intelligence, market information and factors affecting the areas, ensuring valuation figures are not only independent, but are sound, reflect the market but also comply with all standards as set out by the Australia Property Institute.
Bart Mead is CEO of <a href="https://www.propell.com.au/" target="_blank">Propell</a>. 
Mark Nassif is COO of <a href="https://www.propell.com.au/" target="_blank">Propell</a>.
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Property valuations aren't an opinion, they are a professional standard

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The National Australian Bank has reported its third quarter results, posting a $1.7 billion net profit.
Its cash profit rose 7% to $1.6 billion, while revenue fell 1% due to lower markets income amid volatility.
Business lending balances grew at an annualised rate of 5.5% over the quarter.
“The group achieved a satisfactory third quarter result,” said NAB chief executive Andrew Thorburn.
“Costs were well contained and asset quality continues to improve. While revenue growth remains challenging, Australian home lending continues to achieve market share gains and Australian business loan growth improved in what is traditionally a stronger quarter,” he said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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NAB reports $1.7 billion third quarter net profit

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GUEST OBSERVATION
The wealth profile of Australian households has changed phenomenally over the past 25 years, according to a <a href="https://www.fundingaustraliasfuture.com/sites/fundingaustraliasfuture.com/files/papers/Australian_Household_Sector_Finances.pdf" target="_blank">recent paper</a> from the Australian Centre for Financial Studies. Thanks to increases in asset prices and the introduction of compulsory superannuation in 1992, most households are much wealthier than those of previous generations. Total household wealth in 2013 reached $6,689 billion, six and a half times the level of household wealth in 1988.
From an aggregate point of view, as RBA data shows below, the net wealth trend line has been positive and increasing with one noticeable blip – the global financial crisis in 2007-08.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56576/area14mp/t9y8ht9g-1408070072.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56576/width668/t9y8ht9g-1408070072.png" alt=""></a>
Source: Author provided
As of the end of 2013, dwellings comprise more than half the value of household assets (54%); superannuation and life policies account for a further 25%; with consumer durables (such as motor vehicles and household furnishings) at 3%. This provides an interesting contrast with 1988, where again dwellings accounted for around half the value of household assets (51%); superannuation and life policies 17%; and consumer durables 10%.
While the value of assets has gone up, so too has household debt. In 2013, total household liabilities, mostly debt, stand at around half (49%) of the value of household financial assets, or around one-fifth (21%) of total assets. So, for every dollar in debt, households have, on average, about $2 in financial assets and around $5 in total assets.
This compares to the situation in 1988, when total household liabilities stood at around one-third (33%) of the value of household financial assets, or around one-eighth (13%) of total assets. In 1988, for every dollar in debt, households had, on average, about $3 in financial assets and around $8 in total assets.
By age and income
While overall household wealth is increasing, there are some very marked variations when the data is segmented by age and income levels.
An examination of net wealth by age group reveals a lifecycle pattern to consumption. This is well expressed by the figure below, which provides an excellent stylised view of the use of financial assets as a means of smoothing consumption through the lifecycle.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56577/area14mp/kt925q5k-1408070132.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56577/width668/kt925q5k-1408070132.png" alt=""></a>
Source: Corrigan and Matterson (2009), Author provided
Assets are accumulated through the use of human capital from the beginning of a working life. Debt is used to supplement income to further finance assets, which is then paid down pre-retirement. Net wealth is then expended in retirement.
In retirement, the capacity for an individual to support oneself through human capital is much reduced. Therefore, households need to ensure sufficient financial resources have been accumulated for consumption for discretionary purposes – especially in the more active early retirement phase – and to cover the potential increase in health-care costs in the later stages of retirement.
Just as Australians have been consolidating their wealth, a second major trend has been the rise in longevity. Life expectancy for men has risen from around 65 in the early 1900s to around 85 today. While increased wealth bodes well for financial well-being in retirement, steps must be taken to preserve and protect retirement savings to last for what can be around 20 years on average, after the completion of working life.
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56578/area14mp/f7csvq86-1408070203.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56578/width668/f7csvq86-1408070203.png" alt=""></a>
Household net worth by age profile ($’000, mean value, Australia, 2011-12). Source: Reserve Bank of Australia, 2013, Author provided
Article continues on the next page. Please click below. 
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A skewed distribution of net wealth
Within a defined contribution superannuation system, the need for both advice and products to assist consumers to manage investment and longevity risk to ensure a comfortable and self-reliant retirement is a priority.
However, for some households, managing wealth is not an issue. Australia, as in many OECD countries, has a skewed distribution of net wealth, with the bulk being held by a relatively small number of households. The wealthiest 20% of households hold around 61% of total household net worth, averaging $2.2 million per household.
On the other hand, the poorest 20% of households account for just 1% of total household net worth in Australia, with an average of about $31,000 per household. Mean household net worth in Australia for the period 2011-12 was around $728,000 (consisting of $858,000 assets and $130,000 of liabilities).
<a href="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56581/area14mp/7kj39ynk-1408076145.png"><img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/56581/width668/7kj39ynk-1408076145.png" alt=""></a>
Source: ABS, 2013
So not everyone in Australia is getting wealthier. Many households face financial exclusion where: "Individuals lack access to appropriate and affordable financial services and products - the key services and products are a transaction account, general insurance and a moderate amount of credit."
A 2013 Australian <a href="https://www.financialliteracy.gov.au/media/465159/nab_csi_measuring_financial_exclusion_in_australia_2013.pdf" target="_blank">study</a> found that 18% of the adult population were either fully excluded or severely excluded from financial services in 2012. Just over 1% of adults were fully excluded – they had no financial services products – and almost 17% of adults were severely excluded in that they only had one financial services product.
In all, this means more than three million Australians are either partly or fully financially excluded.
What do Australians need from financial services?
Despite the fact that Australians are getting wealthier, financial literacy is not increasing at the same rate. There is a gulf between what households actually do and what may be in their best interests to do. The complexity of the problem means that households need assistance in making these decisions.
The need for guidance is so critical that it must be available in multiple forms. In addition to traditional financial advice, embedded product and/or technology-based guidance may help nudge households toward better decisions.
Households are also exposed to a multitude of financial-related risks – market inflation, longevity, health, leverage and climate risks to name a few – which are simultaneously dynamic, complex and can manifest over different time horizons. In addition to improved guidance, households need a more complete menu of solutions to help manage these risks.
To make this guidance and risk management as effective as possible for households, they require a complete set of financial “building blocks”. Without these, some household risks loom large: for example, longevity risk remains a real consideration for households, increasingly so as the population ages.
Furthermore, there is an implicit assumption that all Australians have equal access to, and benefit equally from, the financial system. This is not the case. Large segments of the population suffer from financial exclusion: they have either limited or incomplete engagement with critical channels of the system. Measures specifically targeted at closing these gaps should be a priority.
Finally, to facilitate the innovation required to meet these challenges, regulation must be flexible, responsive and oriented towards meeting the needs of households. One immediate reform would be to promote further innovation in the area of retirement income products.
Building a financial system that serves Australian households requires a range of approaches if we are to build an inclusive and more equitable society.
Deborah Ralston is professor of finance and director at <a href="https://www.australiancentre.com.au/" target="_blank" style="line-height: 1.3em;">Australian Centre for Financial Studies</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Good financial planning is essential and millions of households are missing out

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PARTNER CONTENT
In discussions regarding buying property the question of what type of property to purchase invariably comes up. People have predispositions towards one type or another, although generally it’s toward a house. But in today’s property market, is a house a smarter option over a strata-titled property such as an apartment or townhouse?
The two main objections encountered regarding strata property come down to not wanting to pay strata fees (or levies), and land accruing value faster for capital growth. The concern regarding strata fees could be considered as understandable, until you look into what they actually are.
Strata fees cover the daily costs and maintenance of the common property within the complex. This includes your parking, gardens, stairs and lifts, exterior walls and recreational facilities (pool, spa etc.), amongst others. It also covers the insurances and rates for these areas, as well as any electricity and water costs. A sometimes unknown component of a strata fee is the compulsory savings plan, also known as the sinking fund.
The sinking fund is there for any expected, and unexpected, repairs within the complex’s common areas. This could range from new carpets in the entry foyer, to damage as a result of structural movement. Overall, the components that form strata fees can generally be aligned to similar costs involved with holding non-strata titled property, sometimes less due to the number of owners contributing to the potential expense.
With comparative expenses regarding ownership costs, the issue of land having greater capital growth should be looked at. Unlike apartments, houses generally have useable land that contributes towards rising values. Established dwellings in good suburbs are fetching higher prices, however with block sizes shrinking nationally, the likelihood of a new house creating growth by being improved (subdivided, developed or renovated) is growing slim. This restriction of use, as well as a social shift in lifestyle choice, is changing the way houses are being viewed. In fact, <a href="https://www.rpdata.com/research/monthly_indices">RP Data</a>’s Home Value Index shows that apartments, rather than houses, have experienced higher growth in the past 12 months in all major cities except Sydney, Melbourne and Darwin.
Strata titled properties are also generally located closer to commercial and retail centres, and include amenities that are not found in comparably priced houses. Rather than leaning toward a specific property type, consider whether that type of property is suitable for the demographic of the area. Each location is going to have a type that will appeal and support levels of growth better than others, especially if there is an employment node within the area that also supports that demographic. In some areas a house may be suitable, in others a townhouse or an apartment.
Overall, don’t rule out apartments or strata-titled properties despite your predisposition towards a house. Because the next generation of buyers is also here: The hard-working, time-poor, social and inter-connected Gen-Ys that want to be near cafés, transport and amenities are looking to buy. They want to continue the lifestyle they lead and to them, that means strata living.
ANDREW HERBERT is partner of <a href="https://myfirstplace.com.au/Property-Observer" target="_blank">My First Place</a>.
My First Place is offering a buyers club to support buyers in finding their property.
For First Home Buyers there’s a package worth $4,200 that covers solicitor fees, mortgage application fees, building inspection, insurance and utilities.
For investors the package is worth $3,350 and it covers solicitor fees, mortgage application fees, building inspection, landlord insurance and a depreciation schedule.
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House v apartment: What's the best option for your first investment?

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Australian real estate startup <a href="https://openagent.com.au/">OpenAgent</a> has closed a $1 million funding round, which included investment from Pete Flint, co-founder of US online real estate giant Trulia.
OpenAgent is a platform that provides rankings of all real estate agents based on past sales and customer reviews, and helps home owners connect to the best agent in their area when for their property.
OpenAgent co-founder Zoe Pointon says by and large it’s a service that real estate agents want.
“We’re not about naming and shaming, we’re really interested in putting a light on people that are doing a great job,” she says.
“Those people are thrilled to have an independent party backing up what they’re trying to say.
“Reaction from real estate agents has been really excellent, they are very conscious we can help them promote themselves and get more business.
“But anything that tries to put a bit of transparency into an industry that is lacking it, is always going to be a little bit controversial.”
The $1 million round, brings the startups total funding raised to $1.4 million, following on from an initial round of $400,000 last year.
The funds will be used to increase the OpenAgent team and its marketing presence.
“One of the challenges when you’re a super new service, you can’t just rely on pull type marketing, because there’s not enough people out there searching for free real estate agent reviews,” Pointon says.
“We’ve been testing a range of marketing channels, and seeing how to scale those.”
Other notable investors taking part in the fundraising round include One Big Switch co-founder Paul Hunyor, and Ellerston Capital advisory board member Anthony Klok, whose previous investments include Temando and Deals Direct.
Pointon says she and fellow co-founder Marta Higuera couldn’t have picked an investor more suited to OpenAgent than Flint, who recently sold Trulia to Zillow for $3.5 billion.
“Having Pete Flint come on board as an investor and advisor is just huge,” she says.
“Pete knows this space better than just about anyone, having built Trulia – one of the world’s biggest online real estate businesses – from the ground up.
“Pete loves what we’re doing, and clearly thinks OpenAgent has a bright future. You can’t get a better vote of confidence than that.”
This article first appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartUp Smart.</a>
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Real estate startup OpenAgent scores $1 million in funding

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GUEST OBSERVATION
So you were born between the late 70s and the early 90s - chances are housing affordability and home ownership is at the top of your list of priorities. We hear many of you asking, "How can I get in to the market?" It's too expensive; it's dominated by investors; I'm doomed to renting for the rest of my life.
However, this doesn't need to be the case. Here is how to crack it:
<ol>
<li>
What to do if you think you can't buy The worst thing you can do is make the assumption you can't buy and assume you have to rent. Chances are if you can be approved for a rental agreement, there is a chance you can be approved for a mortgage. Before you count yourself out, collect all of the funds you have that could be used for a deposit. Take note, that you don't need to put all of your equity in to your home. Take a longer mortgage out and take advantage of fixing your interest rate at the current very low levels. 
</li>
<li>
Make sure you bring an agent in from the outset  If you want to buy, you need to learn from experts. Agents live and breath the market daily, so call three or four local agents in the areas you are looking. Stipulate your price range, your must-haves, and your readiness to act. Then let them do their work. Tell them how much contact you want to achieve, if you are specific on only one type of property, tell them that is the only time to contact you.  
</li>
<li>
Remember to wait.... It's not urgent  Once you've made the decision to buy, remember that this is something that will take time. There is not a transactional element involved here, but do remember that whilst it most likely is your largest investment, don't be scared. Too many people sit back and wait for the 'perfect home', which doesn't exist. Speak to people who have been through the process and ask what worked for them, and what didn't. Set up alerts so it doesn't consume your life.  
</li>
<li>
Pick the neighbourhood, not the house  Before you start trying to pick a home, drill down on the hard facts of where you want to live. If there are multiple areas, try a map search with multiple suburbs. Before you do this, there is no use in looking at houses. Once you have concluded which areas you want to live in, and have factored in your approved budget you will be working with realistic purchases that are worth you spending your time on. 
</li>
<li>
Use the inspection wisely  Most people turn up to an inspection and walk through, for first home owners, because homes are generally small they finish this in five to 10 minutes. If you are serious, start thinking bigger picture. Measure walls, spaces and ask questions. Ideas such as if you can knock walls down, the expected monthly costs associated with a house of that size, and viewing the home with a builder are all ways to ensure you have a plan of attack, not just to live there, but also to add resale value.
</li>
</ol>
Todd Schulberg is marketing engagement and digital strategy executive at <a href="https://www.homely.com.au/" target="_blank">Homely</a>.
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Five tips to help Gen Y buyers crack the market

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

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