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Last week, Louis Christopher from SQM Research declared the “Sydney though is turning into a beast unto itself. We have a strong conviction that the ABS will record 15% to 20% house price rises next year for that city. Such a rise will create a large dilemma for the Reserve Bank of Australia (RBA), especially if the national economy is running below average growth.”

What a bold announcement given he left out what will actually influence this price proliferation. Even more remarkable is that Sydney consists of approximately 650 suburbs – so what a huge call!
This then prompted the dialogue to move to the words “boom and bubble.” Personally, I believe the word bubble is best left to describing champagne given the Sydney property market has been defying analysts for decades. Over the global financial crisis Mosman property prices fell up to 30% – smaller at the lower end and much greater at the top – end. So projected increases of 15 to 20% would realign the market back to where it was in 2007.
If you really want to look when Sydney had its last (what I call property boom) cast your mind back to 1988 – when the bubbles were really popping as Australia celebrated its bicentenary – in that case under the influence.
Prices rocketed by 75% to 100% which then led to the “recession we had to have”. When I look back to 1988 I can identify just five agents in Mosman who were selling back then of which Steve and I, nearly make up half. The cash rate back in 1988 varied from 13.50% to 15.00%. In 2004, we had another buoyant market with the cash rate remaining stable at 7.50% and again in 2007 where the cash rate bounced from 6.25% to 6.75%. One would not need to be a genius to see that with a cash rate of 2.50% eventually (despite ongoing conflicting global influences) we will see a stronger return back to bricks and mortar.
<a target="_blank" href="https://www.businessspectator.com.au/article/2013/9/18/economy/housing-bubble-you-bewdy">Alan Kohler wrote last week</a> “investing in property is a no-brainer at the moment. Prices have bottomed, auction clearance rates are on fire, especially in Sydney, and you can get a fixed rate of 4.8% with 100% gearing, 70% in your super fund.” The dominant players in the current market are definitely the investors with an insatiable diet for apartments.
<img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; max-width: 100%; display: block;" height="333" width="470" src="https://www.rwm.com.au/files/2013/09/17-09-2013-12-55-56-PM.jpg" alt="17-09-2013 12-55-56 PM" class="aligncenter size-full wp-image-8196">
This week marked the fifth anniversary of <a target="_blank" href="https://www.smh.com.au/business/world-business/the-day-lehman-brothers-hit-the-canvas-and-stayed-down-20130913-2tqbg" title="The day Lehman Brothers hit the canvas and stayed down ">the day Lehman Brothers hit the canvas and stayed down </a>which destroyed the modern theory that banks can’t go broke.
Of greater influence <a target="_blank" href="https://www.theatlantic.com/business/archive/2013/09/5-years-later-weve-learned-nothing-from-the-financial-crisis/279506/" title="5 Years Later, We’ve Learned Nothing From The Financial Crisis">five years later, we’ve learned nothing from the financial crisis</a> which then fuels speculation – <a target="_blank" href="https://www.theage.com.au/business/world-business/why-the-financial-crisis-could-return-20130913-2tqbh" title="why the financial crisis could return.">why the financial crisis could return.</a>
When we look at what’s influencing the top-end of the Mosman market our RWM Research can reveal that over the last twelve months there have been twenty sales over $5 million. Of those twenty sales Chinese buyers have acquired 40% and growing.
Richardson &amp; Wrench Mosman (RWM) posted 7 of the 20 sales including the top three sales. The Chinese buyers purchased five properties in Beauty Point and three in Balmoral.
A strong week’s activity for <a target="_blank" href="https://www.rwm.com.au/news/" title="sales in Mosman">sales in Mosman</a> with house volumes still down 33% on this time last year and apartments down 40%.
The <a target="_blank" href="https://www.smh.com.au/business/rba-deflates-talk-of-housing-bubble-20130918-2tzp7">RBA stepped into the ‘bubble and boom” debate</a> this week although it was also quick to <a target="_blank" href="https://www.theage.com.au/business/rba-issues-warning-over-cheap-credit-20130917-2tx8e" title="RBA issues warning on cheap credit">issue a warning on cheap credit</a> and say that it was <a target="_blank" href="https://www.theage.com.au/business/reserve-worried-about-smsf-property-gearing-20130917-2twlg" title="Reserve worried about SMSF property gearing ">worried about SMSF property gearing </a>given investors are by far the biggest players in the current property run.
Just as interesting was <a target="_blank" href="https://www.afr.com/p/national/economy/momentum_builds_for_home_loan_limits_0pOasL2qGiKlMIkr1B5OrL" title="momentum building for home loan limits ">momentum building for home loan limits </a>so it would be fair to say that this time around our regulators have their respective eyes – wide open.
What I would add is that the vast majority who keep pushing the “bubble and boom” are more than likely under the influence.

<hr>
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow" style="font-size: 14px;">Virtual Realty News</a> since 2000. 
 
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The only talk of property bubbles should be about popping champagne: Robert Simeon

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What a difference a week makes given Australia has a change of leadership and – woe and behold – all of Australia’s problems are removed.
If only it were that easy although consumer confidence is a key factor. National Australia Bank’s (NAB) monthly business survey, conducted prior to the September 7 federal election, showed <a href="https://www.businessspectator.com.au/news/2013/9/10/australian-news/business-confidence-surges-august-nab" target="_blank">business confidence rose</a> nine points to six, up from the -3 in August 2013.
NAB chief economist Alan Oster said while an August rate cut and lower dollar may have helped sentiment “it appears more important were political factors – including an expectation of political change and more certainty about the future policy framework.” From the election results it is most clear that Tony Abbott has a clear mandate to reform that he must fulfill and the consumer backlash will be unforgiving should there be attempts to block and delay.
In all probability the Labor party will find itself in opposition for the next six years where it is hoped in time they will learn from the mistakes they made over the past six years. Since the election it is pleasing to note that all three ratings agencies have reconfirmed Australia’s AAA credit ratings.
Following the election of a majority government this should see <a href="https://www.news.com.au/business/housing-key-to-retail-recovery-deloitte/story-e6frfm1i-1226716490137" target="_blank">retail spending pick up</a> in the September quarter, with a more sustainable improvement kicking into 2014/15. Consumers just want to read and hear good news and it was a good news week – Westpac Melbourne Institute Index of Consumer Sentiment increased by 4.7% in September to 110.6, its highest point since December 2010.
So where to now with interest rates being a good start. I really can’t see any more cash rate reductions by the Reserve Bank of Australia given the change in government. Chris Joye makes some very interesting revelations when he wrote about <a target="_blank" href="https://www.afr.com/p/blogs/christopher_joye/why_we_should_be_worried_about_australia_9gqc2CPE2hrAcikkRvyOGM" title="Why we should be worried about Australia’s housing market">why we should be worried about Australia’s housing market</a>:
"The RBA’s rate cuts have gone too far. And if they stay this low for too long, there is a real chance Australia could, belatedly, have an acute housing crash with real consequences for the economy.
"While this is not my current central case, several factors give me pause. The first is that households have not really deleveraged despite much spruiking about our “cautious consumers”.
"This highly leveraged consumer is an artefact of Australia’s even more leveraged banking system. The major banks are leveraged about 80 times across their $1 trillion home loans books. Put differently, they are only holding about $1.25 of true loss – absorbing capital against every $100 – as opposed to the “risk – weighted” value of their assets.
"A third issue is that the banking system is under tremendous pressure to maintain its internationally lofty returns on equity.
"A stunning 33% of new home loans are today being advanced with LVR’s greater than 80%. In some countries they don’t even allow banks to lend at these levels, period.
"A final concern is Australia’s housing supply challenge. We do need to build many more new homes to accommodate the circa 15 million additional residents that will live here within 35 years."
<ul></ul>
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/09/13/simeon-sept-13-one-big.jpg" rel="shadowbox"><img src="/images/stories/2013/09/13/simeon-sept-13-one-small.jpg"></a>
Source: RP Data, Australian Financial Review
The release this week by the Housing Industry Authority revealed <a href="https://www.macrobusiness.com.au/2013/09/hia-sees-construction-green-shoots/" target="_blank">residential building approvals</a> have embarked on what can be best described as a variable path of recovery over the past 12 months, illustrated by the graph below. With the 2012/13 financial year recently concluded, and the first update to approvals in the new financial year generating much comment and conjecture, it seems timely to conduct a comprehensive update on residential building approvals across the country.
Total residential building approvals reached 158,111 in the financial year 2012/13 quite a modest increase of 5.5 % on the very weak year that was 2011/12. Following two consecutive monthly declines at the end of 2012/13, approvals started the new financial year with a partial recovery, increasing by 10.8% in the month of July 2013.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/09/13/simeon-sept-13-two-big.jpg" rel="shadowbox"><img src="/images/stories/2013/09/13/simeon-sept-13-two-small.jpg"></a>
People quickly forget that the mining boom enticed many from our building industry where today, as mining projects slow down, these very same builders are back doing what they did before the mining boom.
Well, Mosman stock levels went backwards this week despite a change in government. If you look at the volume of houses on the market this time last year to this week our Mosman houses are down 36% and Mosman apartments down 40%.

<hr>
Robert Simeon is a director of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
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Change of leadership not a fix-all, but signs for economy positive: Robert Simeon

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If the recent federal election is anything to go by – a pivotal role that has emerged has been the aggression expressed on social media – yes, our new digital economy. This in turn has led to the most combative and often under handed strategies ever seen before on the political arena. If this is what is now to be the new norm the next three years will be very interesting.
In the run-up to Saturday’s election the economy was rightfully front and centre, where it should be noted that the Australian economy is performing very well when compared to other western economies.
The <a href="/news">RBA has left interest rates on hold</a> which opens the question – has the cash rate bottomed? Certainly the job would be easier to scrutinise if economic and financial forecasting could suddenly turn out to be more accurate for Australia’s $1.6 trillion economy. One thing you can be assured of is that now the LNP have won the election, they won’t be sucker–punched into providing a date when the budget is likely to return to surplus.
A recent report noted that <a href="https://www.theage.com.au/business/the-economy/manufacturing-declines-for-26th-month-20130902-2szkd" target="_blank" title="Manufacturing declines for 26th month">manufacturing has declined for a 26th month</a> and one can only expect to see a slight improvement with this sector given the Australian dollar has depreciated around 15% from earlier this year.
The Australian economy continues to grow at a sluggish pace with the Bureau of Statistics revealing this week the economy grew 0.6% in the June quarter. The annual growth rate is now 2.6% with the trend growth sitting at 3% so we are growing at below trend growth. Whilst we remain at below trend one can rest assured that governments won’t be in a hurry to return the budget to surplus. Of particular interest when the GDP figures were announced was the household savings rate continues to remain high – economists predicted a savings ratio of 10.7% to see it come in at an increased 10.8%.
<img class="aligncenter size-full wp-image-8177" src="https://www.rwm.com.au/files/2013/09/31-08-2013-10-42-35-AM.jpg" alt="31-08-2013 10-42-35 AM" width="470" height="304" style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;">
I am not of the school of thought that <a href="https://www.businessspectator.com.au/article/2013/9/2/election/abbott-will-trigger-housing-boom" target="_blank" title="Abbott will trigger a housing boom ">Abbott will trigger a housing boom; </a>“the looming Coalition landslide win on Saturday is now virtually certain to trigger a series of housing booms in Australia. In some areas the boom is not waiting for September 7.”
I agree that some areas are certainly experiencing a mini–boom which we have seen plenty of times before. Presently within a 10 kilometre radius of the CBD we are seeing apartment markets posting very strong sales data although the same can’t be said for housing which remains slow and steady.
One of the problems is that Fairfax Media and News Limited online platforms and newspapers are talking it up in an attempt to get those advertising revenues up in their respective newspapers. Once again easily one of the biggest problems our real estate markets face is <a href="https://www.propertyobserver.com.au/news/australian-stamp-duties-the-fourth-highest-in-world-for-luxury-home-purchases/2013080563842" target="_blank" title="Australian stamp duties the fourth highest in the world for luxury purchases.">Australian stamp duties are the fourth highest in the world for luxury purchases.</a>
I read a report in this month’s REINSW Journal that “stamp duty costs Australian property market 40,000 sales”. Just goes to show how state governments are so economically illiterate when a new study, "<a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;ved=0CDEQFjAA&amp;url=http%3A%2F%2Fpeople.anu.edu.au%2Fandrew.leigh%2Fpdf%2FStampDuty.pdf&amp;ei=81otUv_gIYG4iQf4x4CYDQ&amp;usg=AFQjCNFrpFyDhTdWJgdyFtF9dy_k4oDT-g&amp;sig2=Uabno-1c72YyW-292Au5wQ&amp;bvm=bv.51773540,d.aGc" target="_blank">How do stamp duties affect the ousing market?</a>", authored by Ian Davidoff and Andrew Leigh – has found a correlation between stamp duty and the stagnation of housing sales in Australia.
According to the study’s findings, an increase in stamp duty rates from 1993 to 2005 led to approximately 39,000 forgone sales in Australia. The study revealed that the short – term impact of a 10% increase in stamp duty is to the lower house prices by 3%.
If the property market is supposed to be booming this theory is certainly not reflective in the property volumes we are currently seeing in Mosman, Cremorne and Neutral Bay, which where yet again down this week. All three demographic markets are significantly down on the same time last year. To put this into perspective the Mosman housing market peaked at 168 last spring/summer yet this week it hovered around the high 70’s to finish at 80. Mosman apartments peaked at 112 this time last year and this week they sit at 61.
I would offer this interesting observation; buyers aren’t seasonal – vendors are!
 
<hr>
 Robert Simeon is a director of<a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay</a>and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog<a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow" style="font-size: 14px;">Virtual Realty News</a>since 2000.  The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Buyers aren't seasonal, but vendors sure are: Robert Simeon

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It would be fair to say that the vast majority are well and truly over all the policies on the run that our politicians keep throwing at us on a daily basis.
Nearly all will never see the light of day (well not in our lifetimes anyway) which would explain why the general public are over the electioneering over promising and generally taking electorates for fools.
Unemployment is an obvious concern with the three M’s struggling – manufacturing, mining and motor vehicles all facing challenges in the short–term. Of great concern, and this in my opinion should be priority number one although it barely rates a mention out on the hustings, is that <a title="The wheels have fallen off the construction industry." href="https://www.propertyobserver.com.au/economy/the-wheels-have-fallen-off-the-construction-industry-michael-matusik/2013082864637" target="_blank">the wheels have fallen off the construction industry.</a>
“Here is a good question for you. Which industry is Australia’s largest? One might think it would be mining, given the amount of airplay it gets. But with about 8,500 business operations you would be way, way off. Have another go. Public administration? Wrong. Professional services? Incorrect. Retail? No."
“The answer is construction, with just over 350,000 businesses operating across the country. One in every sixth business in Australia builds something. Sadly, however, the building game must be on the nose because 5,575 construction – related businesses stopped trading over the last twelve months,” said Michael Matuisk.
You never heard it mentioned in the debates that Australia’s construction industry finds itself at record lows.
On the flip side it is reassuring to see that NSW has turned the corner thanks to a state government focussed on infrastructure. Premier Barry O’Farrell announced that the number of properties being constructed in Sydney has reached a 10–year high.
The majority of these works are happening exactly where they should be – Parramatta, Camden, Liverpool and the Hills District – the flow-on affect following the North West and South West Rail Links, WestConnex and M5 widening.
The Australian Bureau of Statistics (ABS) latest data identified the value of construction in the June quarter of 2013, registered a seasonally adjusted – 0.3% fall and 0.9% over the year. Analysts had predicted a 1.0% increase over the quarter.
One of the reasons why construction is suffering, along with manufacturing, mining and motor vehicles is blatantly obvious in the graph below.
<a href="https://www.rwm.com.au/files/2013/08/20-08-2013-3-48-58-PM.jpg" style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #be002d; text-decoration: none;"><img class="aligncenter size-full wp-image-8167" alt="20-08-2013 3-48-58 PM" src="https://www.rwm.com.au/files/2013/08/20-08-2013-3-48-58-PM.jpg" width="470" height="352" style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;"></a>
One part of the electioneering I have found interesting is discussions about technology and how our economy will now be described as the digital economy according to Malcolm Turnbull.
Delloitte recently released an intriguing report <a title="Connected Small Business - how Australian small businesses are growing in the digital economy" href="https://www.deloitte.com/view/en_AU/au/insights/browse-by-content-type/media-releases/353dcb8dd760e310VgnVCM1000003256f70aRCRD.htm" target="_blank">Connected Small Business – how Australian small businesses are growing in the digital economy</a>. It is well acknowledged that Australia faces enormous challenges in the foreseeable future competing with overseas products – and that's why all businesses need to adhere to a strict online platform if they are to succeed; “The online world opens up huge opportunities for small business across the country and holds the potential for a broader economy – wide transformation."
More particularly “Australia’s substantial small and medium–size business sector… contributed $530 billion to the economy in 2010–11, over half of private sector economic activity, and employed over seven million people, generating more than two thirds of private sector employment.
“A national survey of 500 small businesses measured their level of digital engagement, such as having a website with business information or the use of digital marketing to attract customers.”
“Small businesses making full use of the internet with high digital engagement enjoy better business outcomes, with a $350,000 or 20% increase in annual revenue. “
Digital engagement of Australian small business:
<ul>
<li>
16% – SMB’s making the most of the web with high digital engagement. (I would place our business in this category.)
</li>
<li>
25% – SMB’s that have medium digital engagement.
</li>
<li>
24% – SMB’s have low digital engagement
</li>
<li>
35% – SMB’s that have very low digital engagement and do not use the internet at all
</li>
</ul>
I would suggest that if you fall into the bottom two categories your business will be closed within three years’ time. I think the digital economy is one of the most important and exciting transformations that the world has ever seen. I remember reading about a decade ago “Get e–based or e–rased.”
 
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Over to the Mosman, Cremorne and Neutral Bay property markets which again remain in a holding pattern albeit interesting to note that when you look at <a title="this week’s sales " href="https://www.rwm.com.au/news/" target="_blank">this week’s sales </a>it is quite apparent that vendors and purchasers are engaging based on sales evidence, thus far. 
<a title="What will happen to housing prices in the wake of a federal election?" href="/news" target="_blank">What will happen to housing prices in the wake of a federal election?</a> Anecdotal evidence clearly points to our housing markets performing much better under a Coalition government where we expect the market to be robust, more so after Saturday week.
<p style="margin-top: 0.825em; margin-bottom: 0.5em; border: 0px; outline-width: 0px; font-weight: normal; font-size: 1.25em; font-family: DINMediumRegular; vertical-align: baseline; color: #666666; line-height: 18px;">MOSMAN – 2088
• Number of houses on the market this time 2012 – 104
• Number of houses on the market last week – 84
.Number of houses on the market this week – 83
• Number of apartments on the market this time 2012 – 92
• Number of apartments on the market last week – 63
Number of apartments on the market this week – 58
<p style="margin-top: 0.825em; margin-bottom: 0.5em; border: 0px; outline-width: 0px; font-weight: normal; font-size: 1.25em; font-family: DINMediumRegular; vertical-align: baseline; color: #666666; line-height: 18px;">CREMORNE – 2090
• Number of houses on the market this time 2012 – 22
• Number of houses on the market last week – 7
.Number of houses on the market this week – 8
• Number of apartments on the market this time 2012 – 19
• Number of apartments on the market last week – 13
.Number of apartments on the market this week – 19
<p style="margin-top: 0.825em; margin-bottom: 0.5em; border: 0px; outline-width: 0px; font-weight: normal; font-size: 1.25em; font-family: DINMediumRegular; vertical-align: baseline; color: #666666; line-height: 18px;">NEUTRAL BAY – 2089
• Number of houses on the market this time 2012 – 17
• Number of houses on the market last week – 13
.Number of houses on the market this week – 12
• Number of apartments on the market this time 2012 – 45
• Number of apartments on the market last week – 36
• Number of apartments on the market this week – 36
Source: Australian Property Monitors
It has been widely acknowledged that small business is the engine room of our economy, so why has the ALP government treated this portfolio as a half – way house? Since the 2007 election the ALP has now appointed five small business ministers, which in all probability explains why small business has turned on the government.
Next week’s federal election will be the fifth covered by Virtual Realty News and I must say that yesterday’s announcement by “Sportsbet has declared the federal election as a one – horse race and we’re paying out all bets on the Coalition nine days before Australia goes to the polls.” Currently they have the Coalition at $1.03 and the ALP at $11.00 which is the highest price since betting markets opened.
Sportsbet have the Coalition favourites in 90 electorates and the ALP favourites in 56 electorates. So how good is their form guide? In the 2010 federal election 147 Sportsbet favourites out of 150 seats went on to win the seat.
On that basis Kevin Rudd is gonski.
 
<hr>
 Robert Simeon is a director of <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
 
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Real estate vendors need to embrace the digital age: Robert Simeon

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By all accounts when one reads the news our property markets are apparently booming.
As they say if you want to make a mountain out of a mole – hill just keep adding dirt. It’s very easy to use the boom word just as its very easy to use the word bust. What the vast majority forgets is that real estate is not an exacting science, if it’s such a great time to buy now then why did the markets fail to react from 2008 to 2010 when prices dropped by 30%?
<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/sydney-s-property-bubble-hysteria-is-unfounded-terry-ryder/2013081964362" title="Sydney’s property bubble hysteria is unfounded ">Sydney’s property bubble hysteria is unfounded </a>where it was correctly pointed out by Terry Ryder that “three years ago BIS Shrapnel, which makes part of its living from mis – forecasting property markets, declared in 2010 that capital city prices would continue to rise strongly. By 2013 Perth would be up 22% and both Sydney and Adelaide would have added 20%. Nothing of the sort happened, of course. Three years on, Perth is up about 7% and Sydney a meagre 4%. Adelaide is still down 3%. These are not statistics that support bubble theories.”
The capital growth rates (average annual growth in median prices over the past ten years) have Mosman at 2.4%, Cremorne at 2.8% and Neutral Bay at 3.5%. Our demographic property markets are performing currently at their highest level in six years albeit with the tightest stock levels not seen before in decades. If you are, for example, looking to buy a house presently in Mosman, Cremorne or Neutral Bay you have a choice of 110 homes, for apartments your choice is 112.
<a target="_blank" href="https://www.propertyobserver.com.au/hotspots/sydney-property-market-is-a-bit-like-the-porridges-of-the-three-bears-in-goldilocks-too-hot-or-too-cold-and-some-just-right/2013081264127" title="Sydney’s property market is a bit like the porridges of the three bears in Goldilocks – too hot or too cold and, for some, just right">Sydney’s property market is a bit like the porridges of the three bears in Goldilocks – too hot or too cold and, for some, just right</a> – I would put our market in the just right category; “Data from Australian Property Monitors shows 40% fewer homes selling in the $4 million to $6 million price range in the first half of this year compared with the same period in 2010 when the market was enjoying a fillip.”
The top four suburbs with the highest number of $4 million to $6 million sales in the six months to June 30, 2013:
1. Mosman (19 sales) 22 sales in the 2010 fillip
2. Vaucluse (9 sales) 14 sales in the 2010 fillip
3. Bellevue Hill (6 sales) 15 sales in the 2010 fillip
4. Woollahra (5 sales) 5 sales in the 2010 fillip
All up sales of $4 million to $6 million sales in Sydney, in six months to June 30, 2010: 187 compared to in six months to July 30, 2013: 111.
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #be002d; text-decoration: none;" href="https://www.rwm.com.au/files/2013/08/20-08-2013-9-26-03-AM.jpg"><img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="331" width="470" src="https://www.rwm.com.au/files/2013/08/20-08-2013-9-26-03-AM.jpg" alt="20-08-2013 9-26-03 AM" class="aligncenter size-full wp-image-8156"></a>
 
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The last time the Reserve Bank of Australia (RBA) moved the cash rate up was back on November 3, 2010 to 4.75%, so it’s little wonder that we are seeing engagement in the property markets given today it sits at 2.50%. 
<a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/interest-rate-increase-a-risk-for-borrowers-fitch-warning/2013081664269" title="Interest rates increase an eventual risk for borrowers: Fitch warning">Interest rates increase an eventual risk for borrowers: Fitch warning</a> – monthly home repayments will rise 40% if interest rates return to 2008 highs and banks might not be taking this into account when lending. Since October 2011 the RBA has now delivered eight cuts so it’s inevitable that they will start increasing the cash rate – <a href="https://www.propertyobserver.com.au/news/rba-tells-banks-dwelling-price-boom-was-its-greatest-fear-robert-gottliebsen/2013082164435" target="_blank">the warning signs already are starting to appear</a>. 
<a style="margin: 0px; padding: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #be002d; text-decoration: none;" href="https://www.rwm.com.au/files/2013/08/20-08-2013-2-32-21-PM.jpg"><img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; display: block; max-width: 100%;" height="306" width="470" src="https://www.rwm.com.au/files/2013/08/20-08-2013-2-32-21-PM.jpg" alt="20-08-2013 2-32-21 PM" class="aligncenter size-full wp-image-8157"></a>
When I want an accurate gut – feel for our property market I look no further than the available stock levels which still remain in decline. For houses Mosman is averaging a twenty% decline on previous years and to be honest I can’t really see this changing anytime soon.
MOSMAN – 2088
• Number of houses on the market this time 2012 – 99
• Number of houses on the market last week – 85
.Number of houses on the market this week – 84
• Number of apartments on the market this time 2012 – 99
• Number of apartments on the market last week – 59
.Number of apartments on the market this week – 63
CREMORNE – 2090
• Number of houses on the market this time 2012 – 15
• Number of houses on the market last week – 3
.Number of houses on the market this week – 7
• Number of apartments on the market this time 2012 – 18
• Number of apartments on the market last week – 17
.Number of apartments on the market this week – 13
NEUTRAL BAY – 2089
• Number of houses on the market this time 2012 – 17
• Number of houses on the market last week – 11
.Number of houses on the market this week – 13
• Number of apartments on the market this time 2012 – 45
• Number of apartments on the market last week – 30
• Number of apartments on the market this week – 36
Source: Australian Property Monitors
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Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a style="font-size: 14px;" title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Forget talk of a boom, Sydney's property market is just about right: Robert Simeon

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I can’t ever remember seeing as many conflicting reports on the state of the Australian economy as we are seeing at the moment.
Maybe in 23 days time when the outcome of the federal election is known we may be in a better position to get a true reading on exactly what is happening or to that extent where our economy is headed. At this juncture in time it’s anyone’s guess depending on your political persuasion.
Just over a week ago the Reserve Bank of Australia (RBA) singlehandedly attempted to steady the economy when they dropped the cash rate to a record low of 2.5%.
Only history will be the judge as to whether this decision was the right or wrong way to go – albeit already we are seeing some very scary symptoms emerging with the property markets. 
<a target="_blank" href="https://www.propertyobserver.com.au/news/sydney-secures-its-sixth-80-plus-weekend-auction-success-rate-sort-of/2013081764295?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=newsplus" title="Sydney auctions in 80% plus overdrive for fifth consecutive weekend ">Sydney auctions in 80% plus overdrive for sixth consecutive weekend </a>where it should be noted that previously it has been acknowledged that when clearance rates hit 80% plus, the markets are in what is known as a technical boom.
This time around it appears that it is the lower end markets participating in this buyer frenzy, with the top end markets not seeing anywhere near the same excitement.
Just look at this week’s <a target="_blank" href="https://www.rwm.com.au/news/" title="Mosman and Neutral Bay Sales Watch">Mosman and Neutral Bay Sales Watch</a> which hardly suggests that our demographic markets are actually booming.
In some ways I agree with Robert Gottliebsen’s comments in Business Spectator this week "<a target="_blank" href="https://www.propertyobserver.com.au/news/robert-gottliebsen-forecasts-mother-of-all-dwelling-booms-driven-by-property-investors/2013081864307?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" title="Beware of the mother of all housing booms.">Beware of the mother of all housing booms</a>":
<a target="_blank" href="https://www.businessspectator.com.au/article/2013/8/13/economy/beware-mother-all-housing-booms" title="Beware of the mother of all housing booms."></a>“If we are not very careful Australia is going to have the mother of all dwelling booms. What we are seeing is a three – pronged boost to prices. First is a dramatic push to lift the demand for dwellings by banks offering cut mortgage rates thanks to the Reserve Bank Governor Glenn Stevens. But second, and just as importantly, there is reluctance by banks to fund new supply. In any commodity if you inflate demand and squeeze supply, prices go through the roof. Thirdly taxpayers will subsidise the boom via a massive increase in the use of negative gearing via both personal and superannuation tax breaks.”
Again it should be noted that investors (in the vast majority of instances) only invest within the lower end of the market so we don’t expect to see this resonate through to the top – end markets. BIS Shrapnels' Angie Zigomanis said that <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/rental-and-price-growth-to-drive-more-investors-to-sydney-inner-city-apartment-market-bis-shrapnel-s-angie-zigomanis/2013072363162">rental and price growth will drive more investors to Sydney inner city apartment market.</a>
<a href="https://www.rwm.com.au/files/2013/08/10-08-2013-11-51-00-AM.jpg"><img height="321" width="470" src="https://www.rwm.com.au/files/2013/08/10-08-2013-11-51-00-AM.jpg" alt="10-08-2013 11-51-00 AM"></a>
Which then permits the next school of thought to enter the property debate.
As <a target="_blank" href="https://www.theage.com.au/business/china-slowdown-threat-to-house-prices-sp-20130813-2rtur" title="China slowdown threat to house prices: S&amp;P">China's slowdown poses a threat to house prices</a>, Australia’s banks’ credit ratings would be cut by up to two notches and house prices would fall by 25% if China’s economy were to slow sharply, Standard &amp; Poor’s says.
Well that could be true to an extent although I would also add that presently certain Australian property markets are experiencing unprecedented investor action.
Having said that Australia’s four major banks currently hold 80% of Australia’s banking assets and a staggering 88% of residential mortgages.
In the meantime <a target="_blank" href="https://www.propertyobserver.com.au/news/lower-bad-debts-and-stronger-profit-margins-on-loans-trigger-cba-s-record-%2478-billion-profit/2013081464201">lower bad debts and stronger profit margins on loans trigger CBA’s record $7.8 billion profit</a> – just take a look at how the CBA has performed since the Global Financial Crisis:
<a href="https://www.rwm.com.au/files/2013/08/14-08-2013-2-23-32-PM.jpg"><img height="263" width="470" src="https://www.rwm.com.au/files/2013/08/14-08-2013-2-23-32-PM.jpg" alt="14-08-2013 2-23-32 PM"></a>
Now take a look at <a target="_blank" href="https://www.theage.com.au/business/investors-are-bracing-but-iron-ore-price-stays-steady-20130811-2rq7z" title="investors bracing, but iron ore price stays steady">investors bracing, but iron ore price stays steady</a> this time last year the iron ore price was in a dramatic free fall hitting a September low of $US86.70 ($94.10).
The iron ore price has been creeping higher since late June, and spent most of last week in a positive trajectory towards $US133.10 ($144.45) per tonne; a very comfortable price for most Australian miners, made even better by the local currency trading well below parity.
<a href="https://www.rwm.com.au/files/2013/08/12-08-2013-9-43-11-AM.jpg"><img height="253" width="470" src="https://www.rwm.com.au/files/2013/08/12-08-2013-9-43-11-AM.jpg" alt="12-08-2013 9-43-11 AM"></a>
 
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But wait, there’s more, a <a target="_blank" href="https://www.propertyobserver.com.au/land/new-home-building-recovery-at-risk-of-running-out-of-steam-hia/2013081364196">new home building recovery is at risk of running out of steam</a>, according to the HIA.
HIA estimates housing starts rose 8.3% last financial year to 157,108 following two consecutive years of decline.
Yes, decline, so it is hardly neither likely nor credible that we will see any sort of property crash. After all if we were going to see the mother of property collapses we would have as a result of the GFC which turned out to be a correction not a crash. Then again some will no doubt argue this was in fact a crash.
Whilst on crashes the only crashes we have seen of late within our Mosman, Cremorne and Neutral Bay real estate markets has been a crash in volumes not prices.
For the very first time in 13 years of Virtual Realty News we missed a couple of editions when I was overseas so let’s catch – up.
On July 12 Mosman recorded its lowest ever number of houses on the market at 59, which then moved to 64, 68, 76, 88 and this week 85.
Apartments went from 61, 62, 68, and 62 to 59 this week.
In Cremorne houses went from 7, 5, 6, 8, 7 to 3 this week – the lowest ever number.Cremorne apartments recorded 15, 18, 17, 18, and 20 to 17 this week.
Neutral Bay houses 5, 7, 8, 11, 12 and 11 this week. Neutral Bay apartments 34, 28, 26, 28, 34 to 30 this week.
MOSMAN – 2088
• Number of houses on the market this time 2012 – 89
• Number of houses on the market last week – 88
.Number of houses on the market this week – 85
• Number of apartments on the market this time 2012 – 85
• Number of apartments on the market last week – 62
.Number of apartments on the market this week – 59
CREMORNE – 2090
• Number of houses on the market this time 2012 – 12
• Number of houses on the market last week – 7
.Number of houses on the market this week – 3
• Number of apartments on the market this time 2012 – 15
• Number of apartments on the market last week – 20
.Number of apartments on the market this week – 17
NEUTRAL BAY – 2089
• Number of houses on the market this time 2012 – 15
• Number of houses on the market last week – 12
.Number of houses on the market this week – 11
• Number of apartments on the market this time 2012 – 46
• Number of apartments on the market last week – 34
• Number of apartments on the market this week – 30
Source: Australian Property Monitors
<a href="https://www.rwm.com.au/files/2013/08/15-08-2013-4-27-07-PM.jpg"><img height="269" width="470" src="https://www.rwm.com.au/files/2013/08/15-08-2013-4-27-07-PM.jpg" alt="15-08-2013 4-27-07 PM"></a>


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Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" rel="nofollow" target="_blank">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" rel="nofollow" target="_blank">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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Despite Sydney's auction clearance rates, the demographics are not booming: Robert Simeon

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Historically real estate markets never over–perform during elections so it comes as no surprise consumers are confused and frustrated as Australia endures the longest election period ever seen before.
Given September 14 has now been ruled out (following its February announcement) it is anyone’s guess when Australia is headed to the polling booths.
This was confirmed by the Melbourne Institute and Westpac this week when they announced consumer sentiment had edged down by 0.05 % in July from June, when it rose 4.7%.
There is a very strong and loud argument that the upcoming election must be held sooner rather than later, given such delays historically impact consumer sentiment and furthermore stall the economy from natural growth.
The unemployment figures were released this week to reveal that the rate rose to 5.7 % from an upwardly revised 5.6% in May which is the highest level since September 2009. The true unemployment figure is actually 13% which was also revealed by the Australian Bureau of Statistics (ABS) this week.
This new analysis combines the official unemployment rate with “discouraged” jobseekers, the “underemployed” and those who want to start work within a month, but cannot begin immediately. This new analysis is much more accurate than counting people as employed should they work more than one hour a week.
The ABS report shows the labour under – utilisation rate fell steadily between 2001 and 2008 but “increased sharply” when the global financial crisis hit in 2009, from 10.6 % to 14.3%.
So it would be fair to assume that in 2013/14 the Australian economy won’t be setting any growth records given it’s becoming very clear that the mining industry has peaked and our economy adjusts. The Fairfax Media half–year economic survey identified that the Australian economy is unlikely to reach its official growth forecasts. The survey was compiled from the views of 27 economists.
<a href="https://www.rwm.com.au/wp-content/uploads/2013/07/6-07-2013-10-35-21-AM.jpg"><img height="264" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/07/6-07-2013-10-35-21-AM.jpg" alt="6-07-2013 10-35-21 AM"></a>
 
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Here are the findings:
<ul>
<li>
The panel is far less optimistic about export prices. While Treasury predicts that the terms of trade – the ratio of export prices to import prices – will largely hold its ground in the next 12 months, declining only 0.8 per cent.. The panel predicts it will fall by 4.9%, implying further pressure on Australia’s high – cost mines.
</li>
<li>
The budget assumed that the peak of the mining boom is still ahead, tipping business investment to rise a further 4.5% in 2013-14, generating an extra $12.5 billion of output. Since then, the March – quarter national accounts have shown business investment peaked last September, making the panel far more pessimistic On average, the panel forecast business investment to decline by 0.6 %in 2013 – 14, cutting $1.5 billion off the nation’s output. After a decade in which business investment grew on average by more than 10% a year, that would be a dramatic change, especially in the resource states.
</li>
<li>
Treasury budget forecasts assumed that lower interest rates would reignite consumer spending, which it predicted would grow by 3% in 2013 – 14. Again, recent data suggests the ‘green shoots' celebrated in January and February have withered since. The panel is less sanguine than the budget, on average tipping consumers to buy only 2.4% more in 2013 – 14 than they did last year.
</li>
</ul>
Interesting to see what happened to Mosman apartments for the period 1 January 2013 to 30 June 2013 then compare the results to the same period in 2012. Only a minimal change which confirms our previous predictions that prices overall remain in a holding pattern.
<ul>
MOSMAN APARTMENT SALES TO 30 JUNE 2013
<li>
Total Number of Sales – 191
</li>
<li>
Total Value Sold – $181,629,964*
</li>
<li>
Median Price – $722,500*
</li>
<li>
Average Price – $950,942*
</li>
<li>
Auction Clearance Rate – 66%
</li>
<li>
Adjusted Clearance Rate – 58%
</li>
MOSMAN APARTMENT SALES TO 30 JUNE 2012
<li>
Total Number of Sales – 216
</li>
<li>
Total Value Sold – $186,321,820
</li>
<li>
Median Price – $661,500
</li>
<li>
Average Price – $862,601
</li>
<li>
Auction Clearance Rate – 37%
</li>
<li>
Adjusted Clearance Rate – 26%
</li>
</ul>
*Denotes this figure will increase as Confidential Prices are recorded.
Who would have thought that Mosman houses would for the very first time since we started recording this data drop below 60 houses on the market? Again, (I keep saying this) it will be interesting to see how low this figure goes as we don’t anticipate to see increased stock levels until early – mid August.
Source: Australian Property Monitors
<ul>
MOSMAN – 2088
• Number of houses on the market this time 2012 – 70 • Number of houses on the market last week – 63 • Number of houses on the market this week – 59 • Number of apartments on the market this time 2012 – 83 • Number of apartments on the market last week – 54 • Number of apartments on the market this week – 54
CREMORNE – 2090
• Number of houses on the market this time 2012 – 9 • Number of houses on the market last week – 7 • Number of houses on the market this week – 7 • Number of apartments on the market this time 2012 – 18 • Number of apartments on the market last week – 14 • Number of apartments on the market this week – 15
NEUTRAL BAY – 2089
• Number of houses on the market this time 2012 – 14 • Number of houses on the market last week – 9 • Number of houses on the market this week – 5 • Number of apartments on the market this time 2012 – 54 • Number of apartments on the market last week – 36 • Number of apartments on the market this week – 34
</ul>
It’s that time of the year where I take a couple of week’s break so hopefully Steve and Richard will write the weekly editions in my absence. Hopefully, early next week we will roll out our latest media platform which has some amazing new technologies. I must admit one of the most exciting parts of running a big online platform is reinvesting into smarter and newer technologies.
After all – media platforms are all about pleasing and enticing the consumers.
Robert Simeon is a director of <a target="_blank" rel="nofollow" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a target="_blank" rel="nofollow" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Consumers frustrated by the longest election period ever seen: Robert Simeon

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Another classic week where the long markets went cruising along and the short markets were in mayhem again. When the Reserve Bank of Australia (RBA) met and decided to leave the cash rate at 2.75% – <a style="padding: 0px; margin: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #003d7d; text-decoration: none;" title="Subdued but increased demand for finance: RBA Governor’s July meeting statement." href="/news" target="_blank">Subdued but increased demand for finance: RBA Governor’s July meeting statement.</a>
<a style="padding: 0px; margin: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #003d7d; text-decoration: none;" title="Subdued but increased demand for finance: RBA Governor’s July meeting statement." href="/news" target="_blank"></a>When the governor Glenn Steven commented about the decision to leave the cash rate on hold – “deliberated for a very long time” this sent the Australian dollar tumbling.
Just goes to show how fickle our short term markets are. A preoccupation with global economies, currencies and politics – none of which to be resolved (it would appear) in the near-term.
Hard to fathom why these markets are so skittish given the availability and ease of accessing so much data with big data storage expected to hit eight zettabytes (ZB) by 2015.
One ZB =1 000 000 000 000 000 000 000 bytes = 1000 7 bytes = 10 21 bytes = 1000 exabytes = 1 billion terabytes.
As at April 2012, no storage system had achieved one zettabyte of information. So with so much information available it is quite clear that human panic still remains the determining factor for the short markets.
The long markets (real estate) are doing very well both locally and overseas – finally we are seeing a recovery in US home prices with a jump of 12.2% in May, the highest recorded over the past seven years.
<a style="padding: 0px; margin: 0px; border: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; vertical-align: baseline; color: #003d7d; text-decoration: none;" title="A built in bonanza for house prices" href="https://www.businessspectator.com.au/article/2013/7/3/economy/built-bonanza-house-prices" target="_blank">A built in bonanza for house prices</a> – According to the Knight Frank global house price index, Australian house prices over the year to March 31 have risen 2.6% while the US house prices have risen by 10.2%. But the Australian dollar has fallen by almost 15% – we have taken part of the value correction on the currency’s chin.
It is not very often that I find myself agreeing with <a title="House grants a ‘’poisoned chalice” that create bubbles and leave buyers worse off: Steve Keen." href="/news" target="_blank">House grants a ‘’poisoned chalice” that create bubbles and leave buyers worse off: Steve Keen.</a>
<a title="House grants a ‘’poisoned chalice” that create bubbles and leave buyers worse off: Steve Keen." href="/news" target="_blank"></a>When you look at the First Home Owners Grant (FHOG) this scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership.
It is a national scheme funded by the states and territories and administered under their own legislation. When you have record low interest rates and record high rents of course consumers are enticed to make the big switch, although what many confuse is that owning real estate is a long term hold and rates will go higher (much higher) as global economies recover.
Just look at what is happening to US property prices at the moment.
The positive is that we can expect strong capital growth over the next three years so those struggling will be selling in a positive market as against a declining market. I was interested this week to see this graph “Individual’s interest in rental properties”.
<img alt="simeonjuly8one" src="/images/stories/2013/07/simeonjuly8one.jpg" width="470" height="269">
<img alt="simeonjuly8two" src="/images/stories/2013/07/simeonjuly8two.jpg" width="470" height="295">
 
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Interesting to see what happened to Mosman houses for the period 1 January 2013 to 30 June 2013 then compare the results to the same period in 2012.
<h4>MOSMAN HOUSE SALES TO 30 JUNE 2013</h4>
<ul>
<li>Total Number of Sales – 131</li>
<li>Total Value Sold – $358,891,500*</li>
<li>Median Price – $2,280,000*</li>
<li>Average Price – $2,739,630*</li>
<li>Auction Clearance Rate – 46%</li>
<li>Adjusted Clearance Rate – 40%</li>
</ul>
<h4>MOSMAN HOUSE SALES TO 30 JUNE 2012</h4>
<ul>
<li>Total Number of Sales – 143</li>
<li>Total Value Sold – $393,237,200</li>
<li>Median Price – $2,080,000</li>
<li>Average Price – $2,749,910</li>
<li>Auction Clearance Rate – 24%</li>
<li>Adjusted Clearance Rate – 19%</li>
</ul>
*Denotes this figure will increase as Confidential Prices are recorded.
Next week we will do the apartment sales.
The most significant change I can note from this data for houses is that when the economy is booming Mosman historically trades ten per cent of the total number of houses which is approximately 500 sales per year.
Since the GFC volume levels have been down on average approximately 40% per annum. In the boom years the Total Volume Sold averages $1,000,000,000, yet since the GFC we see it averaging $800,000,000 which represents a 20% change.
This week we see the number of houses in Mosman for sale drop to 68 which is the lowest number we have ever recorded (since we started collecting this data). We expect this number to remain low until mid – August although it would certainly help all the markets if Kevin Rudd would put his ego to one side and announce the federal election date.
Source: Australian Property Monitors
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time 2012 – 80 • Number of houses on the market last week – 71 • Number of houses on the market this week – 68 • Number of apartments on the market this time 2012 – 89 • Number of apartments on the market last week – 56 • Number of apartments on the market this week – 52
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time 2012 – 11 • Number of houses on the market last week – 7 • Number of houses on the market this week – 9 • Number of apartments on the market this time 2012 – 19 • Number of apartments on the market last week – 7 • Number of apartments on the market this week – 9
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time 2012 – 15 • Number of houses on the market last week – 9 • Number of houses on the market this week – 12 • Number of apartments on the market this time 2012 – 51 • Number of apartments on the market last week – 33 • Number of apartments on the market this week – 33
<a title="Surging Sydney to lead “uneven” recovery in residential property market over next three years: BIS Shrapnel " href="https://www.propertyobserver.com.au/residential/surging-sydney-to-lead-uneven-recovery-in-residential-property-market-over-next-three-years-bis-shrapnel/2013063062842" target="_blank">Surging Sydney to lead “uneven” recovery in residential property market over next three years: BIS Shrapnel </a>– The Sydney median house price is expected to rise by an average of more than 6% per annum. Given we have record low interest rates it would be quite surprising to see prices only go up – it should also be noted that the strongest growth in property prices is recorded under Liberal governments.
It would be nice to think that the next government will place a high emphasis on infrastructure and housing more <a title="new dwelling needed but we’re still “lucky”: Glenn Stevens. " href="https://www.propertyobserver.com.au/economy/more-new-dwellings-needed-but-were-still-lucky-glenn-stevens/2013070362945" target="_blank">new dwelling needed but we’re still “lucky”: Glenn Stevens. </a>Australia needs to build more houses and apartments than it has done in the past as population growth picks up, interest rates remain low and dwellings remain more affordable.
Instead of propping up an ailing manufacturing industry the government of the day would be much better served incentivising our building industry. This is further explained by Infrastructure Australia which is about to release a seven – point plan to reform more than $100 billion in federal infrastructure spending intended to make Australia more competitive in Asia.
With China slowing down there needs to be a greater concentrated effort on developing our ‘home grown’ economy which has now been dormant for way too long. Australians these days prefer overseas made cars yet it is impossible to have overseas made houses. So why is the government so confused on this no brainer?
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" rel="nofollow" target="_blank">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" rel="nofollow" target="_blank">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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Mosman prestige activity at record half-year lows: Robert Simeon

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So there we have it – another spill in Canberra culminating in the resurrection of a past prime minister who reportedly has found his way again. The only positive that I could draw from this complete fiasco was that both parties challenging agreed beforehand that the loser would retire from politics at the next election (whenever that now may be). Wouldn’t it be nice in future if all parties applied the rule that if a spill is brought on the loser agrees to bow – out at the next election?
Alan Kohler posted a cracking assessment on Business Spectator – <a target="_blank" href="https://www.businessspectator.com.au/article/2013/6/27/politics/year-two-elections" title="The year of two elections ">The year of two elections </a>“We will have a new prime minister, deputy prime minister and treasurer as well as new ministers for trade, communications, climate change, industry, agriculture and education – at least. What’s more, in an attempt to distance themselves from their unsuccessful predecessors, this new group will try to bring a different approach to government, as if they were a different party.”
“And then in a few short months there will probably be another change of government (still) with a whole new mob moving into the big offices, and a whole new approach. This time laws will be repealed and policies really changed.” I could not agree more with this critique “The conventional wisdom is that Rudd and Wayne Swan handled the crisis well and saved Australia from recession, but it was mainly Treasury secretary Ken Henry and Reserve Bank Governor Glenn Stevens who did that. Rudd and Swan were bumblers, messing up the implementation of important tax reform, and fiscal policy more generally.”
In a perfect world (if that exists) Kevin Rudd should bring the election forward and allow Australia to go the polls on either August 10, 17 or 24.
If you want to see an unbelievable government stuff – up look no further than <a target="_blank" href="https://www.smh.com.au/business/visa-delays-stall-foreign-investment-20130623-2oqpf" title="visa delays stall foreign investment">visa delays stall foreign investment.</a> Where more than $1.7 billion in foreign investment, including crucial government infrastructure projects, remain in limbo due to a slow visa approval process by federal authorities. More than 350 investors, each pledging at least $5 million or more, have been nominated by Victorian, NSW, Queensland and Western Australian governments since the program began in November. So, why the delay, one might respectfully ask? Governmental bungling would be the precise answer.
<a target="_blank" href="https://www.smh.com.au/business/visa-delays-stall-foreign-investment-20130623-2oqpf" title="Australian housing bubble risk “overblown” with prices to peak in March 2014: Citi ">Australian housing bubble risk “overblown” with prices to peak in March 2014: Citi </a>– Under its expected baseline scenario, which assumes no further rate cuts until the second quarter of 2014, Citi Research expects nominal house prices to rise 3% between now and March 2014 and then start to fall slightly, driven downwards by among other things a slowing Chinese economy, a weaker Australian dollar and reduced Chinese migration.
<a href="https://www.rwm.com.au/wp-content/uploads/2013/06/25-06-2013-3-37-22-PM.jpg"><img height="319" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/06/25-06-2013-3-37-22-PM.jpg" alt="25-06-2013 3-37-22 PM"></a>
It’s just a matter of joining the property dots as evidenced this week when Australian Property Monitors released their Housing Market Report. Sydney is now clearly the best performing local economy, with an unemployment rate of 4.9 percent in April, the lowest of all major capitals. Other leading indicators of economic activity, such as retail sales, also position Sydney as a leading economic performer. Investors and mid – range upgraders are currently highly active in Sydney, with both the first home buyer market and the prestige market remaining relatively subdued.
. Confirmation of that analysis is that the Mosman house and apartment markets are today running at the lowest levels in terms of properties presently on the market. The lowest number of houses that we had previously recorded was 70 – this week it came in at 68 and going lower given we have an election pending and we are entering that time of year where property listings go into their annual hibernation period.
Source: Australian Property Monitors
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time 2012 – 80 • Number of houses on the market last week – 71 • Number of houses on the market this week – 68 • Number of apartments on the market this time 2012 – 89 • Number of apartments on the market last week – 56 • Number of apartments on the market this week – 52
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time 2012 – 11 • Number of houses on the market last week – 7 • Number of houses on the market this week – 9 • Number of apartments on the market this time 2012 – 19 • Number of apartments on the market last week – 7 • Number of apartments on the market this week – 9
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time 2012 – 15 • Number of houses on the market last week – 9 • Number of houses on the market this week – 12 • Number of apartments on the market this time 2012 – 51 • Number of apartments on the market last week – 33 • Number of apartments on the market this week – 33
My love and fascination of online is no secret so it was great to read this week that <a target="_blank" href="https://www.businessspectator.com.au/news/2013/6/27/technology/australians-lead-world-online-entrepreneurship-study" title="Australians lead the world in online entrepreneurship: study">Australians lead the world in online entrepreneurship: study</a>. Analysing data from their customer base, e – commerce platform BigCommerce also found that Australians are leading the charge for online spending, with the average customer spend increasing 20 percent from $118 per order in 2011 to $142 in 2013. We are witnessing a very clear pattern here where businesses recognise (giving online customers what they want) given this is all about increasing and pleasing consumer participation with your online business model.
Shortly, we will be rolling out our latest online strategy which is very exciting – the latest technologies are simply amazing – for example, if you are browsing our website and you like a property, the simple click of the button will record an inspection entry straight into your online diary.
Our business model is to keep improving our relationships with our clientele both in person and online. What our industry needs to identify is that our clientele spend 80 percent of their time engaging with us online so that in itself identifies exactly why all successful online businesses are constantly reinventing their online platforms.
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Keeping on top of technological change is key in today's real estate industry: Robert Simeon

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I was reading an article last week in Technology Spectator – <a title="Going native in search of an online ad antidote " href="https://www.businessspectator.com.au/article/2013/6/20/technology/going-native-search-online-ad-antidote" target="_blank">Going native in search of an online ad antidote </a>which immediately had me thinking. “They say that for change to occur in an industry or an organisation three things must happen.”
“One, the organisation or industry must be dissatisfied with the current conditions. Two, an appropriate alternative must exist. Three, the organisation or industry must believe in their capabilities to implement this alternative.”
My mind went back the ‘’recession we had to have” in the early 1990s, the real estate industry was severely impacted due to our inability to communicate because of the high cost of print advertising. The birth of the online revolution (internet) in the mid-1990s has significantly changed how we communicate today, we now promote our businesses and products much more cost effectively through this online medium. Some businesses adopted this change with more vigour and passion, like most things there are the leaders and the followers.
So it should not be that disconcerting to then read that <a title="Saul Eslake joins the recessionista " href="https://www.macrobusiness.com.au/2013/06/saul-eslake-joins-the-recessionista/" target="_blank">Saul Eslake joins the recessionista </a>where he put the odds of Australia slipping into recession in the second half of 2015 at 25%, with an expectation that gross domestic product will rise one per cent in 2015 and shrink 0.1% the following year.
<a title="Australia not heading into recession, says Clyne" href="https://www.smh.com.au/business/markets/australia-not-heading-into-recession-says-clyne-20130617-2odem" target="_blank">Australia not heading into recession, says Clyne</a> “business confidence remained low, with companies holding back investment plans. One bright spot remains consumer confidence which was holding up. “Consumer confidence is less of a problem than business confidence,” Mr Clyne said.“Generally there is always an uptick in consumer confidence after an election”. “Because by definition the party that wins, most people voted for and they feel good about the outcome.”
I guess having Australia’s longest ever election is only compounding the problem. As I have written on many occasions the Australian economy is recalibrating as <a title="Aust dollar drops below 93 cents" href="https://www.businessspectator.com.au/news/2013/6/20/australian-dollar/aust-dollar-holds-below-93-us-cents" target="_blank">Aust dollar drops below 93 cents</a> which then brought about an immediate warning <a title="prices to soar as dollar falls, economists and retailers warn " href="https://www.smh.com.au/business/prices-to-soar-as-dollar-falls-economists-and-retailers-warn-20130620-2okqv" target="_blank">prices to soar as dollar falls, economists and retailers warn </a>the days of cheap overseas travel and attractive online prices are over. Petrol, whitegoods and electronic equipment prices are expected to rise by up to 10%. I’m not sure what this will do for consumer confidence?
<a title="Dollar’s decline sends a clear warning" href="https://www.businessspectator.com.au/article/2013/6/20/economy/dollar%E2%80%99s-decline-sends-clear-warning" target="_blank">Dollar’s decline sends a clear warning</a> – “World markets are warning Australians that the glory days are over and that we must start the painful adjustment process. The good news is that in many diverse areas Australians are showing signs that they are prepared to adapt.” Adapting is the key ingredient as our economy changes although it would come as no surprise if the mining industry experienced a turn-around following the election of a new government.
<img src="/images/stories/2013/06/simeonjune24one.jpg" width="470" height="392" alt="simeonjune24one">
<img src="/images/stories/2013/06/simeonjune24two.jpg" width="470" height="217" alt="simeonjune24two">
 
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<a title="Overvalued, unaffordable property keeping first-home buyers on the sidelines: QBE LMI survey" href="/news" target="_blank">Overvalued, unaffordable property keeping first-home buyers on the sidelines: QBE LMI survey</a>. I must admit I have never been a fan of these grants and I remember an analogy that it is like “throwing lollies onto a highway”. What we are seeing within the property industry is a severe shortage of stock, in Mosman, Cremorne and Neutral Bay there are just 87 houses on the market and 96 apartments. These figures are almost 50% down on previous years and the markets remain in conservative mode although the market up to $2.500 million is very strong.
One of the obvious reasons as to why the property markets have plateaued is that unlike previous years, capital appreciation in property no longer exists. Fundamentally, consumers were all over property simply because prices were constantly increasing where today the markets (houses especially) have been in a reverse swing. This also means that the previous tax-free capital gains in trading property are for the moment a thing of the past.
That’s not to say that it won’t happen again, our property markets are just taking their time adapting to the new market conditions. The positive is that vendors are not panicking, this is obvious when analysing the stock levels which continue to drop – although it should be noted that this is a seasonal transformation.
Source: Australian Property Monitors
MOSMAN – 2088
• Number of houses on the market this time 2012 – 85
• Number of houses on the market last week – 76
• Number of houses on the market this week – 71
• Number of apartments on the market this time 2012 – 89
• Number of apartments on the market last week – 60
• Number of apartments on the market this week – 56
CREMORNE – 2090
• Number of houses on the market this time 2012 – 14
• Number of houses on the market last week – 9
• Number of houses on the market this week – 7
• Number of apartments on the market this time 2012 – 20
• Number of apartments on the market last week – 9
• Number of apartments on the market this week – 7
NEUTRAL BAY – 2089
• Number of houses on the market this time 2012 – 17
• Number of houses on the market last week – 13
• Number of houses on the market this week – 9
• Number of apartments on the market this time 2012 – 50
• Number of apartments on the market last week – 34
• Number of apartments on the market this week – 33
Last week, I predicted a political spill (I was a week ahead of myself) I still believe it will happen during the course of the week.
When we enter the colder months it is the perfect time to roll-out new online platforms and get rid of all the associated bugs before the market heats-up again and the peak selling markets reappear. It is all about adapting to new market conditions and having the latest and best technologies behind your brand; it is definitely the way to go.
Robert Simeon is a director of <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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Tax-free capital gains in trading property are for the moment a thing of the past: Robert Simeon

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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