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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

The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Robert Simeon

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