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The question that really needs to be asked is why investors have become so one dimensional? 
The answer is pretty easy given servicing household debt presently sits at the lowest level for the best part of a decade. Finally, as the dust settles commentators are starting to recognise that home owners and first home buyers have not been caught up in the Sydney property euphoria.
Property investors are simply following infrastructure trails such as the South West Rail Link, which is due to be opened early in 2015. What many forget is that such vital infrastructure is decades behind where Sydney’s cumbersome and tired transport networks should really be. These areas are high impact growth areas, although some see them as nothing more than an investor wave of speculation. Of course Sydney’s projected population explosion has no significant relevance in this debate.
One of Australia’s largest residential developers Meriton is <a href="/news/meriton-harry-triguboffs-12-billion-company">currently courting Chinese property developers</a> with the view to selling their entire operation to them – another clue.
Again key points keep getting missed here; the Sydney property market <a href="/expert-insights/the-real-estate-market-is-going-global">is now a global market.</a> We keep referencing what is happening in China, yet fail to point out the increasingly growing number of Chinese residents that now want to call Sydney home as well as a multitude of other nationalities. Sydney is envied as it continues to attract investor funds, which further drive ongoing infrastructure investment given its solid reputation for employment and population growth.
Then of course we must not forget the second Sydney airport which the federal government announced on 15 April, 2014 would be located at Badgerys Creek at a cost of $6-8 billion – again another colossal infrastructure spend. As quick as a flash investors jumped on to this newly created wave of speculation only to see local property prices post double – digit growth.
 What then happened was that the likes of RP Data and APM Price Finder released ridiculous property statistics heralding Sydney house price growth explosions, despite not even closely resembling what is happening in the Sydney markets overall, which if anything have been subdued. The reason is that they sell their respective suburb reports – so given that overall results are average to reasonable at best. They then manipulate key word statistics to on-sell their products. 
This takes me to that old saying pertaining to the use of statistics in the media: “Some people use statistics like a drunken man uses a lamp post – for support rather than illumination.”
<a href="https://www.rwm.com.au/files/2014/11/6-11-2014-9-15-54-AM.jpg"><img class="aligncenter size-full wp-image-223176" src="https://www.rwm.com.au/files/2014/11/6-11-2014-9-15-54-AM.jpg" alt="6-11-2014 9-15-54 AM" width="539" height="366"></a>
On 7 August, 2013 the Reserve Bank of Australia (RBA) decreased the cash rate from 2.75% to 2.50% where fourteen months on it still sits at 2.50%. In time we will see this cash rate become the longest ever hold in RBA history. As I have commented on numerous occasions before, the next move by the RBA will be down. There is a very strong possibility the first number of the cash rate will, in all probability, remain at 2.00 something for quite a few years to come – advantage investors.
Cue the much awaited Murray inquiry which is due for release this month with many agreeing not before time. There are, amongst many interesting recommendations that will be made, two in particular (but I’m speculating). 
The first – that Australian banks must hold more high quality capital to offset their risk weighting of housing loans. If proven true, this will quite possibly see investors move from bank stocks to residential real estate investment. 
Secondly, to offset that risk the Murray Inquiry will recommend negative gearing changes where investors can only claim against that particular asset, as against broad based investment deductions.
On that basis the Abbott government would accept all the recommendations given it would be much easier to sell and furthermore reduces the federal government’s financial exposure to negative gearing – which has become a major mover and shaker in the property investment market. With the benefit of hindsight it’s an embarrassment that the previous Labor government decided to completely ignore the Henry Tax Review recommendations.
It has become completely obvious that RBA ‘jawboning’ has not worked given investors are very, very short on investment choices. The Murray Inquiry ‘macroprudential’ lever will all but ensure that the Australian cash rate remains with a two in front for quite some time to come.
For those actively spruiking that imaginary ‘bubble’ conversation – your argument basically ceases to exist. Unless of course you’re from RP Data or APM Price Finder and you’re selling ‘suburb reports’.
The saddest part with this entire property critique is that property investors are mistaken in the vital role they play in the machinations of the Australian economy. Australian Census figures reveal that approximately one-third of the Australian population reside in rental properties.
The Murray inquiry will make for compelling reading where no doubt it will more than ruffle a few feathers.
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Sydney investor splurge is much ado about nothing

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The NSW government would be well advised to start planning immediately to ensure the state's momentum keeps moving forward well into the next decade – failure to do so would clearly indicate that managing the state of NSW is well beyond their capabilities. 
They say success leaves clues, so look no further than the Sydney property market which has delivered the NSW budget a $1 billion windfall thanks to stamp duty and other related property taxes. NSW Treasury has just announced the final result for 2013/14 with a surplus of $1.247 billion – well up from the June budget estimate of $988 million.
The reality is that property prices have started to cool and commodity prices down 20% this year. Hence, it’s time to start fast tracking the next phase of NSW growth with confidence building infrastructure approvals. On current projections, Sydney will (at a minimum) need to double its 1,673,800 homes over the next 50 years – so there is no time like the present to get started – carpe diem.
It’s well documented that massive growth spurts follow new infrastructure developments – former NSW state architect Chris Johnson has forecast that Sydney needs to build 11 new highrise apartment towers each year for the next 50 years to protect suburban life from being ruined by overdevelopment as the city’s population grows. 
“Five thousand new towers, containing 110 apartments each, would provide 550,000 new homes – that will accommodate only a third of our planned population growth over the next 50 years,” said Johnson.
It’s not hard to see where declines are quickly starting to take place with BIS Shrapnel pointing out this week: “The recovery to a net overseas migration intake of 242,800 in 2012/13 was underpinned largely by a rebound in such arrivals. However, with arrivals now trending downwards as resource sector investment slows, net overseas migration flows weakened to 235,800 in the year to December 2013 and monthly indicators since then suggest a further slowing.”
The latest figures from the Australian Bureau of Statistics reveal that Australia’s population increased by 160,000 births over deaths and a further 244,000 people through immigration – which is now the big driver in this demographic. NSW in 2013, had a natural increase of 50,000 extra people, net overseas migration added 68,000 extra people with 15,500 people deciding to reside elsewhere. As Chris Johnson pointed out: “The demographics for Sydney are clear. Growth is coming and is essential for the long-term prosperity of the city. It will keep house prices stable, it will provide jobs, it will support our ageing population and it will position us as a global city.”
Of course a major problem that requires immediate attention is Australia’s public transport which is hopeless given two-thirds of the country’s population resides in the capital cities. Everyone knows that the state and territory have neglected public transport for decades, so you can’t start announcing residential infrastructure initiatives without substantial public transport upgrades.
Cue the blame game between the states and federal government as to where these responsibilities lie. The latest in this ongoing debate is now clearly aimed at reforming Australia’s Federation – although this has major challenges in itself given the “vertical fiscal imbalance” with all the states and territories wanting more of the GST cake portions. This explains why a Federation white paper is being prepared to address Australia’s revenue and spending responsibilities of all governments.
In 2014 -15, NSW will receive 97 cents for every dollar of GST it pays, Victoria will receive 88 cents and WA will receive just 37 cents – so this explains why reforming the state and territories is such a difficult task.
In the case of NSW, you see businesses wanting to get going despite being constantly held back as they await the relevant approvals given NSW does not have a masterplan for development.
 The most obvious case is that in 2013/14 the NSW government pocketed $1.247 billion in taxes for doing next to nothing – just imagine what those revenues might be if they were to announce a residential real estate infrastructure plan? Who knows, first home buyers may even be able to get in given a significant number of apartment developments would actually bring prices down.
The only problem for the NSW government is that it has a long history of living in the past.
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It's time for NSW to stop living in the past and seize the day

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I have been following the latest run of property propaganda in the media with great interest. 
The only part that remains missing (by coincidence) is that the markets are in fact cooling. The reality is that, despite being an agent (the majority miss this point), I think this is a positive sign.
It should be noted that the Reserve Bank of Australia (RBA) have already made this observation some time ago. What, no bubble? Well that was property propaganda. 
Some are simply hellbent on misrepresenting the statistics that are quite simply totally irrelevant to the argument. No, let’s be polite and call it a discussion – albeit biased for personal gain.
Australian Property Monitors (which is owned by Fairfax Media) was quick to release its September quarter results noting that <a href="/expert-insights/buying/sydney-strength-drags-along-slowing-house-prices-apm">the national median house price was up 1.2%</a> in the last quarter. Who cares what the national median does; it’s totally irrelevant. If a vendor asked a real estate agent to appraise their property and they started quoting the national median price then the Sydney median price they would be laughed out of the home.
The national result was the lowest since March quarter 2013 and wait for it – house prices were down in Brisbane (-1.3%), Adelaide, Perth (-1.5%), Canberra (-1.7%) and Hobart. Darwin prices were up (2.9%), Melbourne struggled with just 1.0% and Sydney was up 3.8%.
Based on this data I’ll make three quick observations: Melbourne will in all probability be in negative growth territory by the end of the December quarter, Sydney will stagnate as investors are pumping this statistic and the next RBA rate move (sometime in 2015) will be down. 
So let’s stop for a moment and give credit where it’s due – the RBA have read the Australian domestic market perfectly.
Contrary to what property propaganda bashers would have you believe, this is a very soft landing with absolutely no bubble-pop or monumental crash of epic proportions. 
I’ve argued long and hard for years that it is only when you analyse the housing market statistics by a ‘single’ municipality that you get an accurate assessment. When you do critique the performances of, say, the 38 Sydney municipalities, there is nothing to write home about. 
<a href="/news/nsw/not-all-sydney-areas-are-booming-the-citys-three-worst-performing-regions">Not all Sydney areas are booming: The city’s three worst performing regions</a> – Yes! 
Breaking data down by region, which by the way is not politically but rather media incorrect, is not how they want demographic property markets displayed for human consumption.
The preferred media modus operandi is obviously to bundle market data given the media organisations (News Limited and Fairfax Media) rely heavily on newspaper advertising revenues.
 Unfortunately these statistics (median price growth) don’t include how much of this growth was attributed to the investor splurge (local and overseas) – although there are some important observations to be made from the following graphs.
<img class="aligncenter size-full wp-image-202706" src="https://www.rwm.com.au/files/2014/10/23-10-2014-12-05-51-PM.jpg" alt="23-10-2014 12-05-51 PM" width="613" height="321">
<img class="aligncenter size-full wp-image-202708" src="https://www.rwm.com.au/files/2014/10/23-10-2014-12-07-14-PM.jpg" alt="23-10-2014 12-07-14 PM" width="562" height="370">
Now it’s no coincidence that we see an almighty upward swing (above) from September 2012 in the second graph. Only when you cross reference this graph to the RBA Cash Rate Target data do you see that on 7 August, 2013 the cash rate dropped to the current position of 2.50%. Investor returns were being decimated in the financial markets, so a property investor assault was inevitable and continues to this very day.
Now we read that negative gearing needs to be abolished despite recent revelations that Sydney for the first time in decades is seeing rents declining – which again is a positive sign. It is inevitable that one day the government will critique negative gearing (just don’t hold your breath).
As strange as this may sound given Australia’s mining industry continues to decline and the real estate and associated industries remain the largest employer within Australia. Where would the Australian economy be today without negative gearing?
Negative by name, whilst positive by result!
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The market is cooling - and that's a good thing

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A question I have been asked on more than a few occasions: What are some of the real game changers that I have seen in my time selling real estate?
My first response is the obvious: how long have we got?
The greatest innovation for me was when the newly elected Labor government back in 2007 required the Reserve Bank of Australia (RBA) to be transparent (for the first time) by publishing the minutes immediately following their last meeting.
What we seem to forget (all too quickly) is that prior to this, all the RBA would do was advise that the cash rate had either remained the same, increased or decreased. That was it – so we were left to draw our own conclusions about the state of the Australian economy.
This greatly assisted the Australian economy, given just a few months later we were drawn into the Global Financial Crisis (GFC). It was an opportune time during this period of uncertainty to read the thoughts of Australia's central bank.
What has mostly managed to fly under the radar, until recently, is that Australian investors then decided that the best investment in Australia was 'bricks and mortar'.
This decision was certainly greatly assisted by the fact that the Australian government also provides the most generous tax relief via negative gearing.
This week, we heard RBA assistant governor Guy Debelle issue a stern warning that financial markets face a "violent" and rapidly escalating sell-off. This is otherwise known a crash.
Few would remember Black Monday, which also went on (for a brief period) to decimate property prices as many share market investors were wiped out. It's interesting to note that now the RBA is firing warning signs across the bows of the Australian economy – which again goes back to transparency.
It's interesting to note that the apartment market sales barely changed during the GFC, as investors went on a quiet rampage acquiring nearly everything that came on the market. The standout performers were those apartments within a ten kilometre radius of the Sydney CBD.
Nothing has changed since then, as investors keep marching on. However, we are now for the very first time in decades starting to witness a change in this property landscape.
In March this year the vacancy rate in the Sydney CBD area fell to 1.4%, which is at emergency levels – although since then they have been gradually increasing and now sit at 1.8% and climbing higher. It will be a fabulous result when the vacancy rate hits 2.0% and then hopefully 2.5% – although some will say what about the investors as rents are not increasing?
The latest Rental Report from Australian Property Monitors shows that Sydney recorded an annual growth of 2% for houses and 3.1% for apartments. The reality being  that property investors are interested in two things – a sound tenant who can pay their rent and long term capital appreciation.
They are simply insulating themselves from a global stock market crash and a piece of paper (share script) that is now worth next to nothing.
By moving back to 'bricks and mortar' during the GFC, these investors are now streets ahead, with many reinvesting back in, given Australia's property markets are now global. The National Australia Bank's latest residential property survey identified that foreign buyers are flocking to buy Australian property, with one in every six new home sales going to foreign buyers.
Based on these statistics this would make residential real estate apartments the number one investment buy in Australia – although this has easily been the case for the last seven years or so.
The reality that this market is now global simply reinforces the argument, given rents for the first time in decades are easing which then takes immense pressure of those renting who now have a greater opportunity to save more so that eventually they too can buy into the market.
No doubt there will be many who disagree with this, and are of the belief that a 'bubble' does exist and prices will be decimated. In the meantime, we can expect a monumental correction in the share market and property prices will continue to register modest gains.
Yes – you're right – I did say modest. Sydney is made up of 38 municipalities so when you look at each individually you will see that recorded capital appreciation has been modest to average based on previous years.
I guess the best way to settle the argument is to ask: Where would you want your investment capital at the moment?
Following this month's RBA meeting, property hardly rated a mention in the minutes, although the same can't be said for the stock market.
The most notable difference that we see today is differentiating where the safe money is – which explains why investors are all over real estate.
 
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Bricks and mortar are a safe bet for investors

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I've always liked the saying "can't see the forest for the trees".
It appropriately sums up so much of the distorted self-indoctrinated bias of opinion pertaining to real estate in Australia.
The debate has never been so fierce – especially when it comes to the definition of that 'bubble'. I am of the firm belief that it is those who are actual historians of the Australian property markets who are the ones with the greatest ability to call the exact path and outcomes.
If you want to end the 'bubble' debate simply ask the question: "So when do you see this bubble bursting?"
It's always the fastest way to draw the debate to a fast halt. History has shown when you closely analyse the property market machinations through the Reserve Bank of Australia (RBA) – Cash Rate Target interest rate changes only then can we see the significant market changes.
That being when the RBA increases the cash rate twice (not once) we are starting to see a new course being charted. Then it takes another two to four years for the affects to be seen given that is when households start to come out of their fixed mortgage periods into the higher mortgage agreements.
Given we are the best part of at least 12 months away from the first cash rate increase – which should send the alarm bells ringing – then depending on the next increase we won't start seeing any noticeable market price corrections until 2016 to 2019.
We also need to bear in mind that when the cash rate increases so does the exchange rate as that goes up in unison, which is the last thing the RBA wants to see given it's presently trying to get the exchange rate down.
We should consider that the RBA is well down the track to introducing its new macroprudential tools as well as waiting to receive (then implement) the findings from the Murray Financial System Inquiry.
No doubt the RBA would be very much looking forward to tinkering the markets with these tools so that (for the very first time) other than increasing the cash rate  it may just be able to manipulate the markets in a way never seen before. For the first time ever (as many would not be aware) we are witnessing history with these new real estate market initiatives.
Again, history will show whether or not they were effective. However, it will be fascinating to watch the outcomes.
So back to those fools on the hill who following this week's RBA decision to leave the cash rate on hold at 2.50% – they even managed to get that wrong. No it was not a record (as some declared). Even though 14 straight months is getting up there, the actual record is 17, not 16 as some would believe. Furthermore, you can only apply consecutive meetings as the RBA doesn't meet in January.
Having said that, when you go back through the history of the cash rate movements at the RBA we start to see fascinating stories evolve.
I have conducted my research on instances where the cash rate remained on hold for 10 or more consecutive meetings:
The first period of RBA cash rate holds started on 30 July 1993 when the cash rate was moved from 5.25% to 4.75%, where it remained until 27 July 1994 – in total 12 holds. Then on 17 August it was bumped up 1.25% to 5.50%.
The next run of holds, which is the equal record 17 holds, happened on 14 December 1994 when the cash rate increased from 6.50% to 7.50%, where it remained until 3 July 1996.
Then it fell to 7.00%. So we are seeing long holds followed by increases and decreases.
On 30 July 1997 we saw another 16 consecutive holds at 5.00%, to then see it drop to 4.75%.
On 5 June 2002 we saw 16 holds at 4.75%, to then see it increased to 5.25% in November 2003.
On 4 February 2004 we saw thirteen holds at 5.25%. When the cash rate was increased to 5.50% in March 2005, that was followed by another twelve holds that was followed by an increase to 5.75%.
Then on 8 December 2011 we had another ten holds at 4.75%, then saw the rate dropped to 4.25%.
We are now in the current hold pattern after fourteen meetings, so based on history it's anyone's guess what or when the next movement might be. I predict the current rate will be set for the longest period in RBA history as it will go well into the twenty something meetings.
So when you see the arguments mounting that many commentators were disappointed that the RBA hardly mentioned that ''bubble" following this week's decision – history clearly shows that the board members may not be that concerned about that "bubble".
Maybe they are more concerned as to why investors have steered clear of the stock market which, by the way, had a few massive corrections this week – although, wait a minute, nothing much was written about that either.
It all depends on what you are looking at – the forest or the trees?
As to be expected stock levels increased significantly this week – so now we finally get to see firsthand just how strong the markets really are.
Watching these numbers will be telling over the period leading up to Christmas, although I don't believe we will see anything that even resembles that imaginary 'bubble'. Time will tell!
 
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Want to know when the market will change? Keep an eye on interest rates

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If one was looking for a single word that is missing from the ongoing property debate, look no further than 'perspective'.
Some are looking at the property market from a perspective that has lead them to a conclusion which is totally and completely wrong.
Investors have got it completely right given (in the case of Sydney) we are suffering from a chronic undersupply which explains why the vacancy rate in a 10 kilometre radius from the CBD has sat below 2% for the best part of a decade.
Never before have we seen a better time to convene an inquiry into the Australian real estate markets because nobody has an accurate perspective as to what is actually happening. Earlier this year I was one of the first to write that something was not right with the influx of overseas buyers.
This brought about an inquiry (that is still going) although it has exposed the Australian Foreign Investment Board (FIRB) to be in total disarray.
Last week, Federal MP Kelly O'Dwyer told ABC Lateline:
"What we've found out though, through the evidence that our committee has received, is that these rules have simply not been enforced through prosecution since 2006 by the FIRB. I think there has been a failure of leadership of the FIRB on this. I think they have dropped the ball. I think if we have rules in place, those rules need to be properly enforced. That is the only way we can give confidence to the Australian people that our foreign investment framework's working as it should. So we would be looking to tighten up exactly what occurs in terms of enforcement penalties that can be applied, but also to make sure that FIRB is doing its job."
Well it's very clear that FIRB have not been doing their job, so in the meantime Ms O'Dwyer should be introducing a temporary ban on all overseas purchases until such time that the government can fully determine how big this matter is.
In my opinion there is no better person qualified to chair the inquiry than Bill Moss who is a former Macquarie Group banker and head of property. Speaking to The Weekend Australian, he said:
"This is the first (property) cycle we've seen where there's a deregulated global market,where capital is free to flow from Asia to Australia. We have a free floating dollar, equity makers are global and now our residential markets are going the same way."
The major concern in Australia is that nobody knows just how many properties have been acquired given nobody has a perspective as to the exact number.
Although, negative gearing presents a much bigger problem in the Australian property markets than overseas investors.
Another person who must be appointed to an inquiry is Saul Eslake, who this week called on Canberra to put an end to negative gearing for new investors as the best way to dampen frothy property markets in Sydney and Melbourne.
It should be noted that he referred to them as 'frothy' not a 'bubble'. He accepts that it is not politically feasible to abolish negative gearing because around 15%of voters are currently taking advantage of negative gearing – which explains why no politician should participate in the inquiry given they have vested interests.
Australian investors are smart and can sense a change to the property tax landscape in Australia, which I pointed out last week.
It is important to note the recommended measures are nothing more than temporary until such time that the government can get a correct perspective on the Australian property markets.
Bill Moss went on to say in his interview that our housing markets were better tackled at a state or local government level, with the federal government or the Reserve Bank of Australia's (RBA) macro prudential tools such as restricting how much banks can lend to investors. "Rather than react to what's happening, what the government needs to do is understand what is going to happen."
The interview keeps getting better, when he commented that "governments should look how to make money from a real estate bubble."
In my opinion, overseas buyers should be paying a much higher Stamp Duty and a Vacancy Tax for all properties where the owners decide to landbank by locking them up. All these taxes should be flowing into new infrastructure strategies.
The problem is that governments have neither perspective nor understanding about real estate machinations. So they need to establish an inquiry to better understand what exactly is going on as against merely flying from the seats of their pants.
 
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The new 'P' in property is perspective

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One does not need to be Albert Einstein to see that for decades and decades the Australian real estate industry has been running blind – so it's very interesting to observe that now a cavalcade of seeing eye-dogs have been brought in to add some vision and clarity.
Having said that, there is plenty of work to do, and the Federal and State Governments will have to do plenty of the heavy lifting for a change. Again, the spotlight keeps shining away from the main accelerants that have seen investors not just entering the market but dominating it, coupled with overseas investors lunging at every off-the-plan sale that hits the market.
Australia simply does not have enough property to meet demand given our population keeps increasing at a growth rate of 1.7%. In the year to March 2014 the Australian population increased by 388,400 to reach 23.4 million.
Instead of continually slugging the taxpayers, overseas investors should be hit with a surcharge and the investors who prefer to keep their properties vacant should be hit with a Vacancy Tax.
The Senate Inquiry into overseas investors has shown glaring holes in how the Foreign Investment Review Board operates (or attempts to) with a staff of under 10 people. Again, this highlights that Australia does not even have a Housing Minister – so who then is taking responsibility and managing this?
Yes – it's reasonable to suggest that Australia is fast becoming a country of landlords and renters, although one needs to ask, had the Rudd Government implemented the recommendations from the Henry Tax Review, how would the Australian property landscape look today? We will never know – however, isn't it time we had this conversation again?
We have the David Murray Financial System Inquiry deadline now just over two months away and there is much speculation about how much they will recommend the banks keep in their piggy banks. How much capital should the banks hold in the event of a property market downturn to avoid the domino effect?
This week the worst kept secret was all but confirmed, where the Reserve Bank of Australia (RBA) and the Australian Prudential Regulation Authority have almost certainly agreed to introduce macro-prudential policies in an attempt to ease property prices.
It's a start. However; the measures will hardly put a dent in prices.
This article continues on the next page. Please click below.
 
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To really have a closer examination; look no further than the report filed last year by Saul Eslake: 50 Years of Housing Policy Failure.
In a nutshell, he writes that cynical politics had kept policies in place that made it harder for people to buy their first home.
"While political parties and governments profess to care about first home buyers, the reality is that in a typical year fewer than 100,000 people succeed in attaining home ownership for the first time; whereas there are some 5.8 million households (and over eight million people) who already own at least one property."
This week RP Data revealed that the number of properties listed for sale in all capital cities, excluding Perth, is 11.6% lower than in September 2013. So introducing macro-prudential policies will hardly affect investors who are borrowing against their existing property portfolios.
<img src="/images/2014/09/30/24-09-2014-9-34-41-AM.jpg" alt="">
Property investors have entered the market with "eyes-wide-open" given that just a few years ago they witnessed firsthand what happens to property prices when we inherited the Global Financial Crisis (GFC) – this is a long term investment. Many are taking a safer punt on property and have walked away from the share market (which has had a shocking run of late) to lock and load into bricks and mortar.
There will be major changes ahead for Australia's tax system where many of the changes will be made to the property taxation benefits that investors are currently taking full advantage of. It's a win-win for the property investors given with all new taxes they are generally retrospective so the investors will be working from a 100 base – history shows this very clearly.
 <img src="/images/2014/09/30/24-09-2014-1-30-26-PM.jpg" alt="">
On the assumption that eventually the GST will be increased to 15%. construction will slow down further, which is exactly what happened in Australia previously following the introduction of the GST.
The developers wear the GST so that it then comes off their respective bottom lines by significantly reducing their profit margins – GST on construction has been a dismal failure which clearly explains why construction is in decline.
So there is a lot of method to the present investor madness – where for those looking at this from a different perspective the vast majority are on a win-win property formula.
No doubt they will be smiling even more when the read a recent article in The Economist, Birth Right – Where to be born in 2013, where Australia was ranked second from the top.
 
 
 
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A broken system: investors are laughing all the way

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For some very strange reason property commentators are struggling to differentiate between the investor property market and the household property market. 
Treasurer Joe Hockey was right when he commented this week: “It is just an easy mantra for international commentators and for analysts based overseas to say ‘well there’s a housing bubble emerging in Australia’; it is a rather lazy analysis because fundamentally we don’t have enough supply to meet demand.” 
I have been saying this for the best part of 12 months now, given the figures provided are a bundle of property sales where the demographic markets are not broken down – simply because they are lazy and you get a meatier headline by using the bundle method.
During the global financial crisis (GFC) we kept hearing the ongoing reference to “green shoots” emerging where today some are attempting to decimate the Australian real estate industry. Many forget that the Australian real estate industry is directly one of the largest employers in Australia and there is a very strong argument that it is playing a major role in keeping our economy buoyant.
I don’t really buy the argument about the low interest rates although in five years’ time we in all probability will see distress sales as the cash rate moves up and home buyers come out of their fixed periods – that is inevitable and should not be used as some sort of shock therapy. Many are forgetting that the Australian banks borrow a substantial amount from overseas so when the cost of lending increases it won’t be the Reserve Bank of Australia (RBA) dictating the rates rather the banks will be increasing regardless of the cash rate setting. 
With the ‘Big Four’ banks holding 80% of Australia’s mortgage book they won’t be waiting for guidance from the RBA – they’ve done it before and they will do it again. Although mysteriously the commentators have the RBA front and centre whilst constantly missing the big picture. The cash rate might well remain at 2.50%, but we miss the point that the lenders are hedged to their funding costs which are not determined by the RBA.
To put Joe Hockey’s ‘lazy analysis’ theory to the test this week I went back through Mosman House sales from 2000 to 2014 which shows a very interesting story given Mosman has approximately 4,800 houses and semis.
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="72">
Year
</td>
<td valign="top" width="98">
Number of Sale
</td>
<td valign="top" width="140">
Total Volume Sold
</td>
<td valign="top" width="307">
Average House Price
</td>
</tr>
<tr>
<td valign="top" width="72">
2000
</td>
<td valign="top" width="98">
325
</td>
<td valign="top" width="140">
$471,065,300
</td>
<td valign="top" width="307">
$1,449,429
</td>
</tr>
<tr>
<td valign="top" width="72">
2001
</td>
<td valign="top" width="98">
381
</td>
<td valign="top" width="140">
$650,971,860
</td>
<td valign="top" width="307">
$1,708,588
</td>
</tr>
<tr>
<td valign="top" width="72">
2002
</td>
<td valign="top" width="98">
408
 
</td>
<td valign="top" width="140">
Could not use these figures as they are 3 times the average
</td>
<td valign="top" width="307">
 
</td>
</tr>
<tr>
<td valign="top" width="72">
2003
</td>
<td valign="top" width="98">
371
</td>
<td valign="top" width="140">
$842,768,432
</td>
<td valign="top" width="307">
$2,271,613
</td>
</tr>
<tr>
<td valign="top" width="72">
2004
</td>
<td valign="top" width="98">
307
</td>
<td valign="top" width="140">
$653,170,490
</td>
<td valign="top" width="307">
$2,127,591
</td>
</tr>
<tr>
<td valign="top" width="72">
2005
</td>
<td valign="top" width="98">
304
</td>
<td valign="top" width="140">
$714,776,000
</td>
<td valign="top" width="307">
$2,351,237
</td>
</tr>
<tr>
<td valign="top" width="72">
2006
</td>
<td valign="top" width="98">
394
</td>
<td valign="top" width="140">
$965,744,130
</td>
<td valign="top" width="307">
$2,451,127
</td>
</tr>
<tr>
<td valign="top" width="72">
2007
</td>
<td valign="top" width="98">
408
</td>
<td valign="top" width="140">
$1,170,279,387
</td>
<td valign="top" width="307">
$2,868,333
</td>
</tr>
<tr>
<td valign="top" width="72">
GFC
</td>
<td valign="top" width="98">
 
</td>
<td valign="top" width="140">
 
</td>
<td valign="top" width="307">
 
</td>
</tr>
<tr>
<td valign="top" width="72">
2008
</td>
<td valign="top" width="98">
217
</td>
<td valign="top" width="140">
$731,805,612
</td>
<td valign="top" width="307">
$2,700,390
</td>
</tr>
<tr>
<td valign="top" width="72">
2009
</td>
<td valign="top" width="98">
306
</td>
<td valign="top" width="140">
$778,113,751
</td>
<td valign="top" width="307">
$2,542,855
</td>
</tr>
<tr>
<td valign="top" width="72">
2010
</td>
<td valign="top" width="98">
340
</td>
<td valign="top" width="140">
$932,342,149
</td>
<td valign="top" width="307">
$2,742,183
</td>
</tr>
<tr>
<td valign="top" width="72">
End of GFC
</td>
<td valign="top" width="98">
 
</td>
<td valign="top" width="140">
 
</td>
<td valign="top" width="307">
 
</td>
</tr>
<tr>
<td valign="top" width="72">
2011
</td>
<td valign="top" width="98">
285
</td>
<td valign="top" width="140">
$814,681,792
</td>
<td valign="top" width="307">
$2,868,598
</td>
</tr>
<tr>
<td valign="top" width="72">
2012
</td>
<td valign="top" width="98">
384
</td>
<td valign="top" width="140">
$1,064,397,721
</td>
<td valign="top" width="307">
$2,771,869
</td>
</tr>
<tr>
<td valign="top" width="72">
2013
</td>
<td valign="top" width="98">
373
</td>
<td valign="top" width="140">
$1,033,783,221
</td>
<td valign="top" width="307">
$2,771,537
</td>
</tr>
<tr>
<td valign="top" width="72">
2014*
</td>
<td valign="top" width="98">
196
</td>
<td valign="top" width="140">
$616,615,916
</td>
<td valign="top" width="307">
$3,146,000
</td>
</tr>
</tbody></table>
*Denotes we are two thirds of the way through the selling year and stock levels are well down on previous years – so try explaining that “bubble”?
Sources:Australian Property Monitors and RWM Research
<a href="https://www.rwm.com.au/files/2014/09/16-09-2014-11-41-51-AM.jpg"><img class="aligncenter size-full wp-image-153741" src="https://www.rwm.com.au/files/2014/09/16-09-2014-11-41-51-AM.jpg" alt="16-09-2014 11-41-51 AM" width="658" height="311"></a>
Another reason as to why we have a strong property market is that rental vacancy rates in the Sydney 0 to 10 kilometre range can’t get above 2% yet we forget that twenty years ago they sat between 3.50% and 4.00%. Back in those days landlords were offering one month’s free rent to entice tenants. It needs to be pointed out that the problem we have is on the supply side, which is why I don’t see the slightest problem with this niche market.
The problem is misinformation and yes some markets have reached unprecedented record prices, which in time as interest rates correct property values adjust accordingly based wholly on demand. The interesting part in this is when the property markets are in decline the purchasers decline too, despite the fact that the markets are what we call a buyers’ market. We are currently in a vendors’ market where the buyers are happy to pay over and above the market value.
Real estate has always been a long-term hold, so for the vast majority what prices do is not really a major concern. There are clear patterns evolving where the majority now are not trading up given from a cost basis analysis it makes more sense to renovate – which is exactly what we are seeing today. In the case of Mosman if you take the present 14 year average of yearly house sales in Mosman, we get 321, so the average number of owners selling each year equates to 6.7%. Based on that data an enormous number of house owners would have to find themselves in very serious financial trouble to see the “Mosman Bubble” burst.
Those are the cold facts.
</body></html>

The cold hard facts about Australia's red hot property market

<html><body>
Without a doubt it’s one of the most confused and manipulated demographics within the Australian economy – yet year in and year out we have commentators both here and afar trying to solve this puzzle. 
What is clear is that very few can solve this puzzle given they quickly get lost deep in the permutations of the mathematics by focusing too much on theory and not enough on the practice.
Bubbles, booms and bonanza – and yet for some strange reason they have this creative ability to conjure this monumental market disintegration creating this almighty property Armageddon. 
This week, I was particularly interested to read commentary from Fabienne Michaux, head of Standard &amp; Poor’s Rating Service Australia and New Zealand. In particular: “One of the peculiarities of the Australian system is our huge reliance on foreign debt and most of that is channeled through the banking system.”
“Although the rise in house prices didn’t look like a speculative bubble the market is certainly looking fully priced and possibly a little overpriced, particularly in Sydney and Melbourne which account for such a large percentage of the national stock.” 
Finally, an assessment that I totally agree with, “fully priced and possibly a little overpriced”.
When the Murray inquiry is released later this year, many of the answers to solving the Australian property Rubik’s Cube will be answered – all that remains to be seen is whether or not the Abbott government will act on the findings. 
The major problem for Australian property is that the governments ignore the problems preferring to feed from these highly profitable property ”rivers of gold” – which is keeping the governments’ heads above water due to the ongoing taxes. Capital gains tax, land tax, stamp duty, rates – the list keeps going on.
GST was introduced by the Howard government on 1 July 2000, replacing the previous federal wholesale sales tax system and designed to phase out a number of various state and territory government taxes, duties and levies such as banking taxes and stamp duty. Well hello!!  We still have them today despite the promise that they would be removed. Actually, on the property side these taxes have mysteriously been increased since the GST was introduced.
Back in 2010 when the Henry tax review was handed down the Treasurer Wayne Swan responded that “Labor would never reduce the existing tax concessions on negative gearing and capital gains tax”. What we were seeing back then was an approximate 20% rise in house prices over that year where it was obvious from the report that tax breaks were inflating house prices. At the time former New South Wales auditor – general commented: “It doesn’t do Australia any good to have a government which, when they see these rational arguments from a very well experienced team, give it three minutes’ thought and then just ditch it.”
<a href="https://www.rwm.com.au/files/2014/09/10-09-2014-1-31-59-PM.jpg"><img class="aligncenter size-full wp-image-143882" src="https://www.rwm.com.au/files/2014/09/10-09-2014-1-31-59-PM.jpg" alt="10-09-2014 1-31-59 PM" width="681" height="394"></a>
If we are to try and solve this Australian property Rubik’s Cube the next inquiry Mr Murray should be given is does Australia need middle and third tier governments? The problem here is the governments rely totally on the multitude of taxes which keeps them in jobs so that on retirement they can collect a handsome pension. Making such a decision like those contained within the Henry tax review would be committing some type of political treason.
You very simply can’t solve the problem when the politicians who make the decisions have a clear vested interest of self-preservation. This can’t be solved until such time as Canberra admits that we have a problem – despite reports confirming that change is needed, the preferred option is to then ignore it, which is confirmed when you see that the Abbott government does not even have a Housing Minister.
<a href="https://www.rwm.com.au/files/2014/09/8-09-2014-2-25-50-PM.jpg"><img class="aligncenter size-full wp-image-143883" src="https://www.rwm.com.au/files/2014/09/8-09-2014-2-25-50-PM.jpg" alt="8-09-2014 2-25-50 PM" width="632" height="278"></a>
So let’s just think about this and how we can possibly solve this dilemma? Imagine the Liberals and Labor offering bipartisan support for the creation of (let’s get creative and call it) the Australian Economic Master Plan (AEMP). So let’s appoint David Murray as the chairperson, then appoint another nine pre-eminent business people to join this committee to actually closely investigate and then recommend what such a AEMP should look like, what needs to be implemented and what needs to be removed, which let’s say may take 12 months to determine. That would leave twelve 12 to discuss, then it is presented at the next federal election by referendum.
The problem previously has been that these conversations were quickly placed in the too – hard basket (for political reasons). It’s clearly time now to remove the politics by listening to what a totally independent body recommend – that way we just may solve the Australian real estate Rubik’s Cube.
Whatever the case we at least need to start this conversation – as it’s long overdue.
</body></html>

Bubbles, booms and bonanza – Solving the Australian property Rubik's Cube

<html><body>
When it comes to real estate in Australia there is no better saying than, “if you want to make a mountain out a molehill – just keep adding dirt.” 
So when we were conveniently advised this week that Sydney house prices rose 5% for the three months to the end of August, resulting in a 16% year-on-year growth, my immediate thought was: what a complete load of rubbish.
Here’s why this figure is misleading and a complete distortion of the truth.
So this week I called one of Sydney’s leading auctioneers and asked, “if we break down the Sydney housing market into municipalities, given there are actually 38, which are the peak performers?” His response was “Sutherland, Hurstville, Bankstown, Marrickville, Holroyd, Parramatta, Blacktown, Fairfield, Liverpool and Canterbury are my stand – out performers.” 
On a scale of one to ten they would easily be an eight plus and of the remaining 28 municipalities some would struggle to reach a five and the rest somewhere from five to seven. The only reason why all 38 municipalities are not listed individually is that there would be no headline.
So I placed a call to Jonathan Chancellor, editor at large of <a href="https://www.propertyobserver.com.au/" target="_blank" title="Property Observer">Property Observer</a>, whom I have been in regular contact with for the past thirty years. We recalled an article that was published in The Sydney Morning Herald  back on October 18, 2008 where Sydney was fighting the global financial crisis (GFC). It needs to be mentioned that at the time when the article was written the Reserve Bank of Australia (RBA) had its cash rate at 7.00%, although the real damage started back on December 5, 2001 when the Reserve Bank of Australia dropped the cash rate to 4.25% which was the lowest in RBA history. 
So back to the story where I was quoted as saying, “Everyone is pulling in their belts a bit, but we haven’t got the tourniquet out yet. Out west it’s tourniquet time.”
Another interesting observation back then: “What the Sydney property market is telling us that while the economic turmoil is driving property prices down almost everywhere, it is the tale of two cities: the top end of the market is faring much better than the bottom.” 
A real estate agent from the west commented: “It’s not uncommon for us to sell a property for 40% less than what somebody bought it for five years ago. I have a lot of people who bought in the 2002 boom period and basically they come back to us asking for opinions. Nine times out of 10, they are looking at a loss.”
“So why are the poor being hammered so much more than the rich?”
<a href="https://www.rwm.com.au/files/2014/09/2-09-2014-2-22-30-PM.jpg"><img class="aligncenter size-full wp-image-134060" src="https://www.rwm.com.au/files/2014/09/2-09-2014-2-22-30-PM.jpg" alt="2-09-2014 2-22-30 PM" width="701" height="394"></a>
“Experts say the most important factors are location, supply, interest rates, social circumstances, infrastructure and the fact a seller can only charge what a buyer can afford to pay. Perhaps the easiest factor to understand is location.” 
To add more to this 2008 piece, Brian Redican, a senior economist with Macquarie Bank said: “There has been a tendency for banks to be much more cautious in lending in those suburban areas. So instead of getting a loan of 80 per cent of the property’s price, you can only get a loan for 60 per cent of the price. The seller then has to drop his price to match what people can pay. Prices fall, so banks become more cautious and so it goes on.”
Banks are picky, too, about which mortgage defaulters they target. It will surprise few that there is one rule for the rich and another for the poor.
<a href="https://www.rwm.com.au/files/2014/09/4-09-2014-10-57-55-AM.jpg"><img class="aligncenter size-full wp-image-134062" src="https://www.rwm.com.au/files/2014/09/4-09-2014-10-57-55-AM.jpg" alt="4-09-2014 10-57-55 AM" width="635" height="408"></a>
<a href="https://www.rwm.com.au/files/2014/09/4-09-2014-10-56-58-AM.jpg"><img class="aligncenter size-full wp-image-134063" src="https://www.rwm.com.au/files/2014/09/4-09-2014-10-56-58-AM.jpg" alt="4-09-2014 10-56-58 AM" width="638" height="411"></a>
What’s also missing in this is just how much the investors are driving the market which we wrote about last week. From Roy Morgan Research: "Over the last four years, the number of investment loans in Australia has grown by 37% compared to an increase of only 4% in the number of owner occupier loans."
 This week I went back to Roy Morgan Research to look at superannuation performance, which just so happens to be at the highest level since the GFC.
<a href="https://www.rwm.com.au/files/2014/09/2-09-2014-9-45-00-AM.jpg"><img class="aligncenter size-full wp-image-134065" src="https://www.rwm.com.au/files/2014/09/2-09-2014-9-45-00-AM.jpg" alt="2-09-2014 9-45-00 AM" width="630" height="451"></a>
Satisfaction with the financial performance of superannuation in the six months to July 2014 was 55.7% up 6.9% since July 2013.
 Self-managed Super Funds (77.9%) remain the clear leader, followed by Industry Funds (56.2%) and Retail Funds (54.2%). These are the latest findings from the Roy Morgan Research ‘Superannuation Satisfaction’ report based on over 30,000 interviews with people per annum with Superannuation.
It’s common knowledge that the Self-managed Super Funds are driving the property investment market, which further distorts the figures pertaining to Sydney house prices. We would all get a much better perspective about exactly where house prices were if Australian Property Monitors and RP Data broke down the mountain into 38 molehills – which is exactly what they should be doing.
</body></html>

For my next trick: A mountain out of a molehill

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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