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Well, the property is actually named Villa del Mare and I don’t really see the current owners having too much trouble as they correct their divestiture order.
The nightmare is actually faced by treasurer Joe Hockey given he now has to investigate millions and millions of property transactions – which we all know by now that such a task is impossible. First of all they don’t have the manpower nor the most important criteria – the data.
Let’s be honest here, the Abbott government decided to announce their ‘ferocious’ crackdown on foreign buyers simply to distract attention from its decision to back-flip on the Medicare co-payments, and what a smoke screen this proved to be.
Naturally, this was all tied into Foreign Investment Review Board (FIRB) statistics where it was revealed to The House of Representatives Standing Committee on Economics that in the first nine months of 2014 foreign investment had surged 44%. One would seriously have to ask the question is there a hotter real estate market in the world at the moment than Sydney?
For the federal government to forensically investigate all the property transactions and we are talking about millions and millions of transactions the answer is simple – no chance. In 2013-14 alone NSW recorded 860,000 property transactions.
So front and centre we have a $39 million Point Piper mansion that must now find a new buyer within the next 90 days. Well didn’t the media fall for that bait hook, line and sinker. I’m happy to bet that this property will not be offered for sale, rather the present owners will simply transfer the property into another name. At the heart of the problem is that Joe Hockey is totally wrong when he claims that: “Under the Foreign Acquisitions and Takeover Act 1975, foreign investors must notify the treasurer through the Foreign Investment Review Board before purchasing residential real estate.”
Sorry to tell you Joe, but foreign buyers have found much better ways to acquire residential real estate and yes, thanks to your crackdown, you’re about to find out just how. Although I am sure that there will be many cases of foreign buyers who have simply disregarded FIRB regulations and purchased properties without application.
The much preferred method that foreign buyers have pursued is to simply transfer funds to their newly appointed “trustee” who has Australian residency, and they then legally purchase a property. When it suits the foreign buyer they apply for Australian residency and once this is granted they then apply the <a href="https://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s18" target="_blank" title="Duties Act 1997 – Sect 18">Duties Act 1997 – Sect 18</a> which applies to “no double duty”. Given that they can prove that they actually provided all the funds to acquire the property to their appointed “trustee” they then pay a duty of $50 to have the property transferred into their name. So you see there is absolutely no need to advise the FIRB given this is totally legal in NSW – so Joe Hockey should be looking at all the legally available loopholes first.
At last count the treasurer’s FIRB consisted of just 10 staff, so given the recent announcements we may assume that this department has been increased tenfold so that they can energetically confront these serious concerns. In all probability this too will be placed in the too hard Canberra basket, although I believe everyone would agree that this is a serious problem that requires urgent attention.
The reality of the matter is that the FIRB is, as I have said on many occasions now, “hopeless’’ given they don’t even know where to start to take control of this crisis. For most obvious reasons the states and territories won’t exactly be energetically offering assistance given they are only concerned about protecting their “rivers of gold”, otherwise known as stamp duty.
The only way that the federal government can get to the bottom of these foreign acquisitions is to somehow get hold of the stamp duty records – which won’t happen anytime soon.
Like a bull at a gate Joe Hockey has opened up his very own house of worms without even realising the sheer magnitude of the job at hand. From past experience we all know only too well what happens next, don’t we.
Nothing happening here folks, move along, we have everything under control. Next question?
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robertsimeon-hRNTwJyXkQ

Treasurer Joe’s Villa del Nightmare: Robert Simeon

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As Australia faces the reality of life after its mining boom, now more than ever it’s vital that we embark on a path of prosperity and sound government – just don’t hold your breath (just yet).
First and foremost it’s imperative that NSW embarks on the greatest infrastructure expenditure in the state’s history – at the end of the day the upcoming election is all about economic reform. 
Based on the recent election results in Victoria and Queensland the word ‘privatisation’ has indeed become a dirty word. In the case of the Baird government strategy the proceeds from the sale of state ownership of the electricity network would be directed to the generation of pivotal capital works projects and not state debt reduction.
A 2013 report on the Electricity Network Regulation the Productivity Commission announced that electricity prices had risen 70% in real terms over the previous five years with structural problems most apparent in NSW. The Productivity Commission went on to say: “There are strong arguments for privatisation of those businesses. There is no evidence that the productivity, reliability, quality or cost performance of private – sector electricity network businesses is worse than their public sector equivalents. To the contrary, the evidence in Australia and internationally suggests that such private sector enterprises are more efficient.”
NSW Labor proposes to tax business more then cut and defer major projects whilst doing next to nothing to fix congestion in Sydney. Congestion is exactly what determines property prices in Sydney, which is why I have said if you own real estate within a 10 kilometre radius of the Sydney CBD you have nothing to worry about.
A recent report commissioned by the Property Council of NSW has found that Sydney is facing a housing crisis with an additional 190,000 homes needed to be constructed over the next 10 years. The report identified that since 2005 an average of just 17,002 homes had been approved by Sydney’s 43 councils each year. From a business perspective you’re not going to attract new housing projects unless you are rolling out massive new infrastructure community platforms.
<a href="https://www.rwm.com.au/files/2015/02/23-02-2015-9-11-41-AM.jpg"><img class="aligncenter size-full wp-image-389483" src="https://www.rwm.com.au/files/2015/02/23-02-2015-9-11-41-AM.jpg" alt="23-02-2015 9-11-41 AM" width="463" height="477"></a>
The above graph clearly identifies what happens to property prices when you’re closer to the CBD and highlights what happens when governments drop crucial infrastructure spending – <a href="https://www.businessspectator.com.au/article/2015/2/23/infrastructure/australias-train-nowhere" target="_blank" title="Australia’s train to nowhere. ">Australia’s train to nowhere. </a>More than anything we see glaring highlights as to what happens when governments fail to invest in crucial areas such as public transport. As a result house prices to those areas located within that crucial 10 kilometre radius of the CBD skyrocket.
NSW faces an additional 1.600 million people requiring housing over the next two decades – which in itself explains why now more than ever before infrastructure has to be the key ingredient into guaranteeing NSW’s prosperity into the future. Privatisation should not be a dirty word rather the dirty word clearly is lack of infrastructure spending by past NSW governments.
Sydney must absorb Newcastle, Wollongong and western Sydney into its business model by creating a world class metropolis. Given what’s been achieved in other countries there is no excuse why Sydney does not have a very fast train that connects all the cities.
Given that investors today are getting next to no return given the record low cash rate – investors can purchase syndicates that would allow them to invest in infrastructure projects <a href="https://www.businessspectator.com.au/article/2015/2/25/infrastructure/neat-fix-politics-infrastructure-funding" target="_blank" title="a neat fix to the politics of infrastructure funding.">a neat fix to the politics of infrastructure funding.</a>
Given that the self-managed superannuation funds are driving investment property in NSW due to a lack of choice such a proposal to attract these funds with infrastructure investment is a brilliant and a long overdue alternative. Naturally the big superannuation funds want as much of this pie as they can get so the state governments must offer allocations to ensure that everyone has equal investment opportunities.
From an investment perspective NSW can easily offer thousands and thousands of critical infrastructure investment funds for investors to diversify as against relying solely on the real estate markets.
Of course nothing can happen if we have a change in government given the alternative is simply too scary to contemplate. If NSW had previously had a strong infrastructure platform property prices would be nowhere near as high as they are today.
If the Baird government is successful at next month’s election and they stick to their infrastructure platforms there is a strong possibility they could become the most successful government in NSW history.
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Next month’s NSW election is the most important ever: Robert Simeon

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 Is NSW building a property crisis?
Well there are many arguments to this equation although I don’t really believe we will see a major downturn from a real estate collapse. 
Parts of Australia are doing exceptionally well and other parts such as Western Australia (which are not reported) are experiencing massive corrections. The heart of the problem is that Australia is now into its sixth year of a low cash rate that looks to go even lower.
It was not a good week with the Australian Bureau of Statistics (ABS) releasing the jobless rate this week which showed that the jobless rate had jumped from 6.1% to 6.4% between January and December. Australia now has the second highest unemployment rate in the English speaking world. 
Of course the Abbott government will point to the Senate blocking key budget measures which is in part true however those measures are not going to resurrect the jobless rate. As I wrote last week – <a href="https://www.rwm.com.au/2015/02/06/kick-start-the-economy-and-abolish-payroll-tax/" target="_blank" title="Kick start the economy and abolish payroll tax">kick start the economy and abolish payroll tax</a> given for years Treasury officials and commentators have expressed opinions that this tax is slowing down business growth and jobs.
NSW faces an election next month so imagine what would happen if NSW Labor announced that if elected they would abolish payroll tax? The NSW government has an extra $20 billion in the bank following the sale of poles and wires so it would be fair to see concessions made to their ugly taxes of stamp duty and payroll tax.
In 2013, 14 more than 860,000 real estate transactions were undertaken in NSW which in real terms equates to a windfall in stamp duty receipts. So what we have is the NSW government making hay whilst the sun shines, although I would issue a warning to them in that NSW will see fewer transactions given a large proportion of these transactions went to investors who are long-term investors. 
The other point that needs to be raised is that NSW and Victoria have the highest rates of stamp duty in the country where the rates have only ever gone up. In NSW the stamp duty paid on a median – priced home has grown to around 25% of annual disposable income per household, from close to 10% in 1991.
NSW is in the fortunate position that it has amazing upside with investors clamoring to buy bricks and mortar largely within a 15 kilometre radius of the CBD. These suburbs are gold plated where for the very first time they have multiple buyer demographics – overseas buyers, investors, home owners and first home buyers to a lesser degree.
One Mosman real estate agent incorrectly reported this week (no surprises there) that Asian buyers accounted for around 20% of Mosman house sales in 2014. Like most things we have read about real estate in recent times there is much more fiction than there is fact. 
I went to CoreLogic RP Data and noted that Mosman recorded 353 house transactions in 2014 and looked at the vendors names and noted that on 36 occasions the buyers had Asian names. So 36 transactions from 353 sales shows a market share of 9.8% and the vast majority of these would be Australian residents – although we will never really know.
You see it’s very easy for an overseas buyer to transfer money to an Australian resident to buy a property which is placed in the resident’s name. Down the track, when the overseas party is granted Australian residency, so long as they show proof that the buyer of the property was acting as their “trustee” and all the monies paid was theirs, then at a cost of $50 they can transfer the property into their name – it’s that easy. 
The Foreign Investment Review Board never hear or even see these stealth property transactions, but the state government does receive stamp duty from the transaction although many would argue that this loophole needs to be closed as a matter of urgency. The other problem is that the appointed authorities have no idea that this even exists or for that matter happening. If it’s a loophole then it should be closed.
So back to the cash rate, which has now been at record lows for six years and will in all probability stay at these lows for probably another six years. The average term for a mortgage is 25 years so what we are seeing is half that term (12 years) at record lows where nearly all are not on interest only repayments. So theoretically, when the cash rate does start increasing those households would have paid down the greater share of their respective mortgage.
A NSW Greens candidate has weighted into next month’s election by proposing significant changes to the rights of those renting:
<ol>
<li>Allow landlords to impose one increase in rent per year.</li>
<li>
Cap rent rises at the rate of inflation (or the CPI) which is usually around 2 to 3% each year.
</li>
<li>Not allow landlords to evict tenants without a valid reason.</li>
</ol>
So when it comes to property and taxes in NSW, we all must remember that our politicians know best.
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Is NSW building a property crisis?

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Abolish payroll tax and kick start the economy; it’s that simple! 
Problem solved – cue the Henry Tax Review which found that of the major heads of taxation revenue, payroll tax is more damaging to the economy than company tax. 
When Australia entered the global financial crisis, instead of handing out money, payroll tax should have been immediately abolished. If Australia wants to have strong employment then back the engine room that drives the economy, instead of greedy states and territories trying to destroy it.
If the Prime Minister wants to save his position he should act immediately on this given last week’s cash rate cut is not going to save the economy. What we are clearly seeing now is home owners and property investors being given the greatest free kick in Australian economic history with the majority well ahead of their respective mortgage repayments. Unless something is done we will see the cash rate at the current level and possibly lower for quite some time to come.
One only has to look at the NSW report on state finances for 2013-14 where a surplus of $1.247 billion was announced thanks mainly to residential and commercial sales. Nobody likes paying stamp duty on real estate transactions especially since they too were supposed to be abolished in 2000 when the GST was introduced. For those who follow the property markets closely ask yourself one simple question – where would real estate prices be today if stamp duty had been abolished? You’re right – they would be much higher.
Back to the 2013-14 NSW state finances report where government revenue grew by 9.8% and expenses grew by just 4.6%. Payroll tax receipts were $248 million which was much less than forecast – surprise, surprise.
The Abbott government needs to act decisively and fast given the budget is in such disarray that this week we saw the governor of the Reserve Bank and the new head of Treasury deliver a dire warning to Cabinet that unless the Senate passes the government’s spending cuts, the budget is at risk of never getting back to surplus. If payroll tax was removed the government would get back to surplus much faster as businesses can then re-invest much more back into their respective businesses instead of being fined for employing people.
If Tony Abbott wants to shirt-front something then there would be no better place to start than by abolishing this absurd tax that is dragging the economy down. What remains to be seen is whether or not our politicians in Canberra have the economic intelligence to recognise this anchor on the Australian economy and act forthwith.
Interesting to read <a href="/expert-insights/finance/what-central-banks-around-the-world-are-doing-with-interest-rates">what central banks around the world are doing with interest rates</a> given many are now predicting that the RBA will cut again when they meet next month. The RBA recently released their credit aggregates for December 2014 which identified that home lending is now up to a record $1.42 trillion. Total credit grew by 5.9% with housing posting 7.1%, business 4.8% and personal credit 0.9% in annual terms. If payroll tax were to be abolished business credit would almost double – which is exactly what our economy needs. Why is it that that elected governments fail to recognise this, given this would also drive up spending and GST receipts?
Maybe we need to do a test case, so where better to start than NSW – the best performing state in Australia. NSW also has a state election looming so it would be political suicide for either major party to fight such a decision.
The states and territories made a mockery of removing nominated taxes when the GST was introduced so it’s high time the electorates started reminding these governments that enough is enough.
Aside from politicians, I am yet to find anyone who supports payroll tax in Australia.
So what does that tell you?
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Abolish payroll tax and kick start the economy: Robert Simeon

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Last week the Domain Group published its house price report for the December quarter 2014 revealing that Sydney house prices rose 4.1% for the quarter up from 3.5% in the previous quarter.
Apartment prices also rose by 2.9% over the quarter which followed the September quarter which was also up 1.4%. Annually, Sydney house prices have increased by 14.1% and apartments have increased by 10.4%. All very interesting, however it means very little given this is the compiled figure for Sydney and is not representative across all households – even though many home owners believe it is.
For the first time that I can remember the top 10 Sydney house sales were all above $10 million mark, which is an amazing feat in itself.
No, I am not about to go into <a href="/expert-insights/sydney-top-end-sales-skewing-median-price-robert-simeon">how the top end sales skew the median prices</a> – given I treat this data with a grain of salt.
My preferred method is to look under the bonnet to see what actually is going on – by looking at the annual number of trades and the total volume of trades in dollar terms. I find this an interesting method which tells me much, much more about what exactly is happening in the marketplace for both apartments and houses.
This week I did just that – I broke down the figures for Mosman which has one of Sydney’s highest property turnover rates, and the figures are very interesting and in some instances quite amazing.
Mosman Houses
<ul>
<li>2014 – 329 recorded sales with a total value of $1,078,328,672 *</li>
<li>2013 – 379 recorded sales with a total value of $1,061,295,721</li>
<li>2012 – 286 recorded sales with a total value of $802,560,700</li>
<li>2011 – 271 recorded sales with a total value of $794,649,292</li>
<li>2010 – 316 recorded sales with a total value of $901,963,149</li>
<li>2009 – 279 recorded sales with a total value of $734,026,251</li>
<li>2008 – 247 recorded sales with a total value of $702,686,112</li>
<li>2007 – 376 recorded sales with a total value of $1,133,609,387</li>
</ul>
*This figure will increase as more sales settle in 2015
What this tells me is that Mosman house sales are getting back to where they were in 2007 (pre-GFC) given 2013 and 2014 both broke the $1 billion sales volume barrier.
Mosman Apartments
<ul>
<li>2014 – 467 recorded sales with a total value of $461,024,250*</li>
<li>2013 – 482 recorded sales with a total value of $478,346,540</li>
<li>2012 – 472 recorded sales with a total value of $396,810,977</li>
<li>2011 – 477 recorded sales with a total value of $387,294,595</li>
<li>2010 – 473 recorded sales with a total value of $391,925,992</li>
<li>2009 – 484 recorded sales with a total value of $411,218,407</li>
<li>2008 – 442 recorded sales with a total value of $323,799,406</li>
<li>2007 – 485 recorded sales with a total value of $400,122,811</li>
</ul>
*This figure will increase as more sales settle in 2015
So for the past eight years the number of apartments sold in Mosman each year has been between 442 and 485. Houses however have ranged from 279 to 379, so it is much easier to predict how many apartments will be sold in 2015 – 473. Now that is what I would call baffling data.
Back in 2007 the cash rate moved from 6.25% to 6.75% where today it sits at 2.50% with many suggesting a strong possibility it will be cut next week when the Reserve Bank of Australia meets – I don’t believe they will cut at this point although further cuts are inevitable.
<img src="/images/2015/02/03/simeon%20feb%203%20one.jpg" alt="">
Source Domain Group
I find this Domain Group graph fascinating as it clearly identifies what many already know: markets are always self-correcting. Brisbane, Adelaide, Darwin and Hobart apartments are identifying value declines and Darwin is the only state/territory identifying house value declines despite a record low cash rate.
Will the Australian property investors start investing in these areas that are in decline? Absolutely not; investors much prefer to invest in areas identifying capital growth over declining markets given concerns that these markets will decline further.
Sydney’s overall vacancy rate sits at a very tight 2.0% despite concerns that the bull run of investors into the market has not even put a dent in the vacancy rate.
Only when you break down the numbers in demographic property markets do we start to clearly identify how the markets speak in volumes.
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How the markets speak in volumes: Robert Simeon

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At the start of every New Year the first things we see for some strange reason are predictions.
 Even stranger when it comes to property there are only two possible outcomes: boom or crash. What exactly happened to the glass half full or half empty philosophy?
So my prediction for 2015 is that the Australian property markets will see some half full and others half empty movements. One would have thought that many real estate commentators were embarrassed and fooled by the Australian property markets in 2014 given their out of control ‘bubble’ declarations, only to find out it was investors driving the market not households (as they incorrectly reported).
So let’s move to the nitty gritty facing 2015 – a record low cash rate, low inflation and low GDP. This means again that investors will be faced with just the two alternate options; equities or the residential real estate markets. Real estate will again be the preferred investment strategy of choice in 2015 – more particularly as they continue to propel their self-managed superannuation funds.
After all it’s much easier to monitor the idiosyncrasies of the real estate markets than it is with equities – the latter are global markets where real estate is much more local orientated. Of course an argument will pop up that the global financial crisis (GFC) was global where property prices fell 25% on average approximately. In the vast majority of cases prices are now back (or close to) the 2007 benchmark prices.
When one then looks at the RUOK markets in 2015 – NSW looks like being the star performer again. Western Australia held the mantle for the last three years although with the mining decline and a working population shift it finds itself in correction mode having slipped to third place, with Victoria in fourth and Queensland fifth spot. NSW has now posted constant strong jobs growth which then ricochets to job security which then ricochets to consumer spending.
As a natural progression the high profile debating team of boom and bust will be front and centre in 2015 with the usual ‘Australia has the most expensive housing prices in the world’. Well one would have thought that if the situation was that dire the GFC average correction should have been much more severe – but it wasn’t.
Yes, Sydney prices over the last two years are reportedly up 30% but what conveniently keeps being omitted is that the formula applied is a ‘median’ price and Sydney has the most expensive top end residential real estate in Australia, so this figure is actually inconsequential given Sydney’s top sale for 2014 was $39 million. 
Housing markets can be irresponsibly skewed when you have Australia’s number one top end market or, better still, Sydney is using a top end steroid to drive up its median price. A shame this is not pointed out.
He’s baaaack! <a href="/news/steve-keen-says-the-australian-property-bubble-could-keep-going-through-2015">Steve Keen says the Australian property bubble could keep going through 2015 </a>– For some strange reason (again) I struggled to follow his line of reasoning as to what would prompt a decline in property prices. That nasty four letter word keeps popping up – debt. However, we should remember the word that always precedes debt is managed.
As I predicted last year we will see two 0.25% cash rate reductions in the first half of 2015 with the cash rate sitting at 2% as at 30 June 2015. Of course when the cash rate starts firming back up only then will we see some corrections in property prices as many will struggle to ‘manage their debt’.
We need to look closely at the DNA of those commentating on the Australian real estate markets – and I can’t go past Steve ‘Headline’ Keen. 
Back in September 2008, he told Jonathan Chancellor that he was listing his Surry Hills, Sydney apartment with $500,000 expectations. His reason for selling at the time, “partly to put my money where my mouth is and partly due to changed personal circumstances.” 
I’m sure based on current comparable sales he wouldn’t be that happy to observe that if he had held on, he would be up approximately 50% today from when he sold.
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Sydney top end sales skewing median price: Robert Simeon

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I made one glaring observation about the Australian property markets in 2014: many commentators have absolutely no idea how the markets work and persistently work and respond accordingly from incorrect data.
In 2014 there was no bubble that burst, there was no property boom, although Sydney in particular led the charge of the letterboxes given there is a misguided focus on median house prices. Of course it’s an absolute no-brainer when you constantly use the Sydney figure given the top three house price sales were three eastern suburbs homes for $39.000 million, $37.000 million and $32.000 million (approximately) which obviously skews the median prices to silly levels.
Commentators then force feed this data by suggesting that the Sydney median house price is surging and this is reflective for all price demographics. When you remove the elephants in the market – otherwise known as the investors – Sydney performed well although by no means a property boom/bubble.
I agree that Sydney luxury residential to run second only to New York in 2015: Knight Frank however if you removed the new overseas buyer surge Sydney would in all probability be in decline, given this is what is driving the top – end currently. It will be interesting to watch in 2015 if the report on foreign investment in residential real estate has any impact on the top – end property markets given the significant exposure this topic has received.
We auctioned an apartment last Saturday and a prospective buyer asked me if they could bid given this prospective purchaser did not have Australian residency nor FIRB approval (they must have seen my cameo on 7.30 recently). I advised them no and the only way they can legally bid is to put the property in the daughter’s name then transfer the name once approval was granted and then they would have to pay stamp duty again. They decided to pay double stamp duty if they were successful although they missed out.
2015 will be an extraordinary year for real estate given for the first time we will see new measures which, depending on how severe, are all aimed at tempering the insatiable appetite of property investors. Firstly, we will watch with interest how the macroprudential measures are applied and the effect this has on property investors. Short-term, we can expect to see a little hesitance although the investors will return bigger than ever. Of course the investor threshold has APRA concerned given it’s now well above the 10% comfort zone. The threshold is much like the inflation rate where the Reserve Bank likes to keep this between 2 and 3%.
The other big talking point in 2015 will be negative gearing given it is now being described as a class warfare –which is the last thing the federal government wants to hear. No doubt the Murray Inquiry will be front and centre for real estate debate given it was a sweeping review which made 44 recommendations with 13 taxes requiring attention.
Will this inquiry be treated with the same disdain as the Henry Tax Review whose many recommendations were quickly filed in the too hard basket? I expect much of the same given the Abbott government is struggling in the polls – although I would add that nothing would surprise me. In 2011/12 (yes, these are the current figures to work from) Australia had 1.9 million property investors, so one can only imagine how much this has increased given the huge role property investors have played in 2013/14. Whatever the outcome we can expect to see some form of tinkering with negative gearing although having said that nobody really knows for sure what impact this will have on property markets in general.
In 2014 very few got the cash rate predictions correct which remained unchanged for 2014 at 2.50%. Full marks to Australia’s head teller Glenn Stevens who was under all sorts of pressure from a multitude of peanut galleries to prick this property bubble. His reading of Australia’s property markets proved to be 100% correct, although sadly very few acknowledge the outstanding job he does by getting these crucial calls right.
It would not be an easy job given the vast majority of the Reserve’s decisions is made from incomplete and more often than not inaccurate data. Or as our head teller recently described this as “the vagaries of quarterly national accounting”.
I wonder what his thoughts are on the Sydney median house price given the methodology applied should be the definition of dumb and dumber?
Over to the Mosman market where the greatest number of houses on the market in 2014 (in any one week) peaked at 123 (on 20 November) Mosman on seven occasions had more than 100 properties for sale and that was from 23 October to 4 December. The greatest number of apartments on the market in 2014 was 76 on 27 November. Cremorne houses peaked at 21 on 16 October and Cremorne apartments peaked at 41 on 6 November. Neutral Bay houses peaked at 15 on 20 March and apartments peaked at 54 on 16 October.
On reflection these are small numbers in comparison to previous years (pre-GFC) so the local markets remain constant albeit somewhat docile – we don’t see any significant changes for 2015. Our policy is to call the market as it is – warts and all.
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In 2015, expect to see measures to temper investor demand

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The eagerly awaited <a href="https://www.aph.gov.au/~/media/02%20Parliamentary%20Business/24%20Committees/243%20Reps%20Committees/Economics/44p/Real%20Estate/Report/Front.pdf" target="_blank" title="Report on Foreign Investment in Residential Real Estate">report on foreign investment in residential real estate</a> was finally released last week and yes, the House of Representative committee has done a reasonable job with its findings.
Although with closer scrutiny, many questions remain both unclear and without a definitive answer.
The Chair’s forward starts with a predictable warm and fuzzy moment: “Buying into the Australian Dream doesn’t come cheap.” 
Only to proceed to the most amazing faux pas: “There is no simple explanation for the decline in housing affordability – although lack of land supply (a government responsibility), underdevelopment (a government responsibility), state planning laws and regulations (a government responsibility), local council red tape (a government responsibility) and stamp duty and tax arrangements (a government responsibility) likely all play a part.”
 What a fascinating admission that surely warrants another inquiry into these frank admissions.
“According to Foreign Investment Review Board (FIRB) statistics, in the first nine months of this financial year, FIRB approved foreign investment into residential property of around $24.8 billion, 44% higher than the $17.2 billion approved during all of 2012/13. Much of this investment is concentrated in the Melbourne and Sydney markets. Most of the increase is attributable to proposed investment in new property, which at $19.3 billion for the first 9 months of 2013/14 is 79% higher than 2012/13. The total number of established property approvals for the first 9 months of 2013/14 is 5,755 compared to 5,101 for 2012/13.”
Then the clanger: “First, there is no accurate or timely data that tracks foreign investment in residential real estate. No-one really knows how much foreign investment there is in residential real estate, nor where the investment comes from.” 
That being the case then how can the House Economics Committee find that foreign investment is not causing distortions in the Australian housing sector – when by their own admission they concede they have no idea how much real estate has been sold to foreign buyers?
Then of course: “During the course of the inquiry, it came to light that no court action has been taken by FIRB since 2006. During the entire Rudd-Gillard-Rudd government, not one divestment order was issued, which means that not one government sale of illegally acquired property was made. This compares with 17 divestment orders between 2003 to 2007 when foreign investment in residential real estate was at much lower levels.”
They quite conveniently failed to mention that for some strange reason the Rudd government abolished FIRB approvals to foreign investment during the course of the global financial crisis. At the time it was most unclear as to what was exactly happening as decisions based on FIRB appeared at best chaotic. How can you then prosecute when the Rudd government made this totally legal?
Of course the bull in the china shop (no pun intended) is those many loopholes that exist to overseas buyers in that it is very easy for a family member who resides overseas to simply transfer monies into an Australian bank account. The family member here goes out and buys a property in their name and when the overseas family member gains Australian residency they simply pay the stamp duty to transfer the property into their own name.
Alternatively, attaining Australian residency can take a few years so it is much easier to take up New Zealand residency – an almost immediate process. New Zealanders are permitted to buy all forms of Australian real estate so it is very easy to beat the system. It is just a shame that the Senate Inquiry missed many of the existing trap doors that remain open in the Australian property industry today.
Of course it is just a mere coincidence that the Chinese government requested a bipartisan arrangement with the Australian government to process the identities of all Chinese buyers who purchase Australian real estate. Cue the establishment of a national register of land title which still requires approval from the states and territories – who are yet to be consulted on this measure.
Then of course the recently announced Free Trade Agreement with China allows any Chinese national full access to acquire any commercial or agricultural property up to $1 billion. 
I’m really struggling to get my head around this.
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Foreign buyers inquiry leaves many questions unanswered

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Are you a vertical or horizontal analysis type?
Most would answer that they are not sure given they apply a number of metrics whilst attempting to draw a conclusion on a particular subject. Real estate is a classic example; there are so many suggested formulas that can be applied to draw a conclusion, yet there is no stand-out determination process.
I was asked this week: What is the best method within the real estate industry to better understand what exactly what is going on? I was also asked: Do I look at the markets from a vertical or horizontal position? 
The answer to that would be both. On a weekly basis I look at the stock number movements and the <a href="https://www.rwm.com.au/news/" target="_blank" title="weekly sales activity.">weekly sales activity.</a> Unlike the share market which closely watches the market capitalisation from its All Ordinaries Index, the real estate market is an entirely different beast and offers no decisive measures or methodology.
The residential and commercial investor stampede has been unprecedented in 2013 and 2014 prompting many to call this a property ‘bubble’. One should ask the question, if the ‘bubble’ theorists were investing in real estate would they still refer to this as a ‘bubble’. Of course not because they are simply commentators, not participants and there is a striking difference between the two. 
The investors are looking at the markets overall from a vertical position (which also encompasses their entire investment portfolio) whilst the commentators have adopted a horizontal position concerned only at what’s immediately before them.
To put these theories into practice one must apply what I call the <a href="https://www.abc.net.au/science/features/whyisitso/" target="_blank">Professor Julius Sumner Miller</a> analogy – “Why is it so?” Firstly, are the Australian real estate markets weaker or stronger post global financial crisis (GFC)? The answer to that is that the markets overall were much stronger pre-GFC, although for some strange reason this point is entirely missed in the debate (thanks to the horizontal observation). We need to remember that prior to the GFC, the Australian economy was basking in an unprecedented 20 plus years of economic growth.
Next, in the “why is it so?” analogy, trying to understand why the household and the investment markets bear no resemblance to what is happening in the property markets. In particular the Reserve Bank, which is actually now quite blasé with its outlook, especially when commenting on the Australian real estate markets. Why aren’t households trading-up to take full advantage of the historical low cash rates?
Look no further than the latest <a href="https://www.rba.gov.au/publications/smp/2014/nov/pdf/dom-eco-cond.pdf" target="_blank" title="Quarterly Statement on Monetary Policy ">Quarterly Statement on Monetary Policy</a>: “The forecast for output had not materially changed. GDP growth was still expected to be below trend over 2014/15, before gradually picking up to an above trend pace towards the end of 2016.”
It’s all very well to borrow more and upgrade the family home given record low rates, so what’s stopping the markets from jumping-in?
Look no further than annual wage growth, which is presently at the slowest rate on record. It’s all very well to increase the debt ratios in the present environment (horizontal analysis) but when one applies the vertical analysis there are severe headwinds ahead when rates start to rise again, which looks like 2016/2017.
The Reserve Bank pointed out in another one of their papers recently: “Nominal labour income has grown at an average annual rate of 2.7% over the past two years, compared with a decade average of 6.2%. And the widespread expectation is that wage growth will remain subdued for a time.”
Another clue is the rising rate of household borrowers who have preferred to pay back their loans via the interest-only option, which is not a positive sign for when the cash rate starts heading back to that pre-GFC thingummy called ‘normality’.
So this might go part of the way into trying to explain this thing called a ‘bubble’ – I prefer to call it a burp (due mainly to a lot of external wind).
On that basis we can expect to see the cash rate coming down further in 2015, only to (hopefully) see it start increasing late in 2015 to early-2016, as a best case scenario.  Watch annual wage growth statistics as they become available given this is an obvious trigger for increased action in the housing markets. For those on the interest-only option, you still have the best part of 12 to 18 months to strategise your best options going forward, history tells us it is not simply a case of 'who dares wins'.
So to answer (or should that be update) my preferred options when analysing the real estate markets: I am a confirmed vertical observer.
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What's the best method to understand the real estate market?

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The headline should not to be confused with Fifty Shades of Grey, although many would argue that the audiences are struggling to differentiate between fiction and nonfiction. 
Property is a best seller although it’s becoming quite evident that when some write about property market events you will attract more eyeballs and interest if one uses the stratagem approach – such is the competition today for audiences.
Easily the largest chapter in the 2014 edition of the Fifty Shades of Property has been that ‘bubble’ (although some weeks ago this plot lost credibility when data was released revealing that the majority of states and territories in Australia were reporting price retreats). 
What, no crash? This can’t be happening – we need a monumental property derailment in Australia like the rest of the world.
Of course Sydney has been the stand – out performer thanks wholly and solely to the investors. Although the authors maintain that touché mantra by referring to Sydney data as Sydney house prices – when in fact it’s well documented that the apartment market is the huge performer thanks to investor frenzy. Nonetheless, for the sake of the argument it will read better for the audience when we call this Sydney house prices – despite this really being nothing of the sort – so manipulate the headline to achieve another touché.
<blockquote>
Easily the largest chapter in the property story this year has been that ‘bubble’ (although some weeks ago this plot lost credibility).
</blockquote>
At this time every year we start to see new chapters being added, such as recession and massive unemployment for the year ahead – again fiction coming to the fore. Which takes me to a refreshing piece written by David Bassanese in The Australian Financial Review this week – <a href="https://www.afr.com/p/business/property/we_need_house_price_rises_to_grow_aWxB8rIXMqkj6p9X9o0nzM" target="_blank" title="We need house price rises to grow economy.">We need house price rises to grow economy.</a>
"The Australian economy has had an outstanding run over the past two decades and has admirably dodged a number of global upheavals that might have felled lesser economies. Any economist south of 40 – years – old has no working knowledge of what it feels like to fall into a wrenching recession.”
Now isn’t that the truth. As too, his critique of the Australian housing markets:
“More recently, an increase in commentary about a house price bubble has also been allowed to develop, when all we’ve seen to date is an overdue cyclical upturn in house prices – and in only a limited number of states – on the back of especially low interest rates.
"Surprisingly, even the Reserve Bank has been lulled into expressing concerns that the housing market has become ‘unbalanced’ between investors and first home buyers – so much so it’s threatening to dampen critical investor demand through new macroprudential controls.
“How serious are Australia’s housing problems? Relative to household income house prices are only nearing past cyclical peaks – and mortgage affordability is still better than average due to low interest rates.
“The fact that investors are more prominent in this cycle should be no surprise given the rental yields have remained attractive relative to interest rates, and rental vacancy rates are tighter than normal – helped in part by the fact that foreign students make up an important element of Australia’s rising population.
“To the extent the growing role of self-managed super funds and foreign investors raises concerns, these are best tackled at source by changes to laws.”
That is what I would call a nonfiction critique of what’s actually taken place and yes, Australian Treasury is presently investigating 33 potential foreign ownership breaches – although I can see many, many more chapters on this topic for the 2015 edition.
For the writers who unwisely decided to adopt a blood and thunder approach to Australia’s property markets, one can only hope they have learnt a valuable lesson from their embarrassing forecasting – given it’s very clear they have failed the credibility test.
As Mark Twain once wrote: "Most writers regard the truth as their most valuable possession and therefore are most economical in its use."
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Fifty Shades of Property: Where fact meets fiction

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Robert Simeon

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