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It is quite apparent that many have already taken the Global Financial Crisis (GFC) for granted despite it being the largest and sharpest capitulation in global markets in over twenty years.
What many forget is that a large number were still at school when Australia experienced the recession “we had to have” in the early 1990s. Top-end property markets were the hardest hit as to the personal losses so this would explain why this demographic market remains lethargic to say the least.
The GFC brought about a re-calibration of asset prices which divulged an over-extension of debt which then saw for the first time in Australia for many years a complete turnabout where consumers cut back on spending and therefore lifting their savings.
The same applied for businesses that embarked on radical cost-saving initiatives combined with in-depth business analysis to seek new markets by establishing aggressive new online platforms.
This new platform has resonated further where consumers are now all over online shopping as they look for savings – the mantra “greed is good” is no longer the case and won’t be for some considerable time either.
The world for businesses and consumers dramatically changed when Apple released their iPad on April 3, 2010 – that insatiable desire to acquire has re-invented consumer behaviour.
The online superhighway has progressively moved from two lanes to ten lanes and growing fast to such an extent that the way we do business today in the real estate industry will bear no resemblance to the way we do business in 2018.
With the benefit of hindsight in years to come the GFC will be looked back on as a renaissance period that modernised business platforms where technology emerged not just as an add-on but rather the key ingredient to guarantee business longevity.
Simply put: in this modern age if your business is not online-savvy the chances of survival are terminal.
The GFC has proved to be an enormous learning curve – where today businesses are now paying enormous catch-up.
What we are seeing anecdotally is consumers changing their behavioural spending patterns to such an extent that it is not that far off when the majority of vendors spend more on online than they do in print.
When that happens the number of real estate agencies in Australia will reduce by a quarter given that 25% (that’s conservative) are IT illiterate.
On another matter 2012 was an abysmal year for Australia’s construction industry with more than 80 firms entering administration – although just the one <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/nsw-building-inquiry-recommends-construction-trusts-to-protect-sub-contractors/2013012859005">inquiry</a>.
<a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/nsw-building-inquiry-recommends-construction-trusts-to-protect-sub-contractors/2013012859005" title="NSW building inquiry recommends construction trusts to protect sub – contractors."></a>The Housing Industry Association (HIA) report for the December quarter 2012 – “Total residential building volumes in the final quarter were up by 1.7 percent on the previous quarter.” In 2013 it is already looking <a target="_blank" href="https://www.propertyobserver.com.au/commercial/construction-industry-to-contract-4-over-next-three-months-and-no-improvement-long-term-bci/2013031259831">quite different</a>.
<img src="/images/stories/2013/03/simeonmarch18one.jpg" width="470" height="291" alt="simeonmarch18one">
<img src="/images/stories/2013/03/simeonmarch18two.jpg" width="470" height="299" alt="simeonmarch18two">
A slight improvement in the number of new listings on the market for Mosman houses this week although well down on the same time last year.
The same can be said for Mosman apartments where we believe households are consolidating and paying down debt levels with no future plans of taking on more debt.
A valuable lesson learnt from the GFC – on top of that concerns for employment remain first and foremost.
It is also interesting to note that First Home Buyers remain in decline where it remains at 14.9% for the second consecutive month. This is the lowest since June 2004 – the long-run average is 20.1%. It is obvious that our record-low cash rate is failing to attract this market demographic.
<a title="Investors scramble as rental crisis bites" href="https://www.smh.com.au/money/investing/investors-scramble-as-rental-crisis-bites-20130312-2fxj1" target="_blank">Investors scramble as rental crisis bites</a> the number of suburbs where it is cheaper to buy a home on a variable rate mortgage than to rent rose to 494 in December, up from 388 two months earlier. What we are seeing is First Home Buyers struggling to build a deposit due to climbing rents and a construction industry going into reverse: a recipe for disaster.
Source: Domain Property Monitors
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time 2012 – 141 • Number of houses on the market last week – 103 • Number of houses on the market this week – 108 • Number of apartments on the market this time 2012 –114 • Number of apartments on the market last week – 76 • Number of apartments on the market this week – 78
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time 2012 – 17 • Number of houses on the market last week – 17 • Number of houses on the market this week – 15 • Number of apartments on the market this time 2012 – 24 • Number of apartments on the market last week – 15 • Number of apartments on the market this week – 12
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time 2012 – 19 • Number of houses on the market last week – 14 • Number of houses on the market this week – 12 • Number of apartments on the market this time 2012 – 64 • Number of apartments on the market last week – 43 • Number of apartments on the market this week – 41
For this week’s sales in Cremorne real estate, Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Neutral Bay real estate, Cammeray real estate, <a target="_blank" href="https://www.rwm.com.au/news/">click here</a>.
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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robertsimeon-hRNTwJyXkQ

Property consumers changing their behavioural spending patterns to online: Robert Simeon

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As we predicted, two Reserve Bank of Australia meetings have passed and the cash rate has not budged from 3%.
One only has to read the <a target="_blank" href="https://www.rba.gov.au/media-releases/2013/mr-13-04">statement by RBA governor</a> to see: "In Australia, most indicators available for this meeting suggest that growth was close to trend over 2012, led by very large increases in capital spending in the resources sector, while some other sectors experienced weaker conditions. Looking ahead, the peak in resource investment is approaching. As it does, there will be more scope for other areas of demand to strengthen."
I stated in previous posts that I can’t see the official cash rate going below 3% and I now lean towards <a target="_blank" href="/news" title="no rate cut in April as HSBC pencils in rate hike towards end of the year. ">no rate cut in April as HSBC pencils in rate hike towards end of the year.</a>
<a target="_blank" href="/news" title="no rate cut in April as HSBC pencils in rate hike towards end of the year. "></a>HSBC chief economist Paul Bloxham says low inflation (currently well within the the RBA’s target of 2% to 3% band at 2.2%) means an easing bias still remained and the RBA could cut rates if necessary, but he highlighted the following comment by RBA governor Glenn Stevens in the monetary policy statement, which suggests a brighter outlook.
"During 2012, there was a significant easing in monetary policy. Though the full impact of this will still take more time to become apparent, there are signs that the easier conditions are having some of the expected results."
Australia is fortunate that the RBA has a positive cash rate, with which they can act where necessary. This is in contrast to other central banks that have no room to stimulate their economies given their cash rates are stuck on zero.
The debate has now turned to <a title="major banks can and should cut variable rates independently of RBA: Bernie Fraser" href="/news" target="_blank">major banks can and should cut variable rates independently of RBA: Bernie Fraser</a>, which I don’t believe will happen as it is becoming increasingly obvious that the big banks are doing private sweetheart deals with clients.
<a title="Borrowers should not be paying more than 6% on their home loan: RBA charts" href="/news" target="_blank">Borrowers should not be paying more than 6% on their home loan: RBA charts</a>. Further proof is that <a title="one in four looking to split their home loan between fixed and variable: Loan Market" href="/news" target="_blank">one in four looking to split their home loan between fixed and variable: Loan Market</a>. The mortgage-broking group says that over the past four weeks 27% of their inquiries have been from borrowers wanting to split a portion of their loan between fixed and variable. This is a 70% increase on the number of borrowers looking to split their home loan a year ago. On that basis it would be reasonable to suggest that we can expect this number to increase further in the months to come.
<img alt="simeonmarch11one" height="259" width="470" src="/images/stories/2013/03/simeonmarch11one.jpg">
<img alt="simeonmarch11two" height="346" width="470" src="/images/stories/2013/03/simeonmarch11two.jpg">
<a title="Economic optimism ‘unjustified’: Westpac economist" href="https://www.businessspectator.com.au/bs.nsf/Article/Economic-optimism-unjustified-Westpac-economist-pd20130306-5JMT5?OpenDocument&amp;src=hp30" target="_blank">Economic optimism ‘unjustified’: Westpac economist</a> is an amazing commentary, in which Westpac Banking Corp Ltd's senior London economist James Shugg says: “We have a situation where $US 85 billion ($A82.6 billion) a month is being pumped into the US economy, interest rates are at record lows and the economy is only growing at 2%.”
<a title="Canberra facing long – term budget deficits: report " href="https://www.businessspectator.com.au/bs.nsf/Article/Aust-facing-long-term-budget-deficits-report-pd20130304-5FRNS?OpenDocument&amp;src=tnb" target="_blank">Canberra facing long – term budget deficits: report </a> states that “Australia faces deficits until 2025 without policy changes, as modelling for the Minerals Council of Australia shows the impact of the removal of higher commodities prices and changes in the economic cycle on the budget.” One only has to see how this proposition is fractured due to massive bungles by Wayne Swan and Treasury (<a title="Five fractures in Swan’s treasured friendship" href="https://www.businessspectator.com.au/bs.nsf/Article/swan-treasurer-politics-parkinson-khmlani-pd20130304-5FS8L?OpenDocument&amp;src=sph&amp;src=rot" target="_blank">Five fractures in Swan’s treasured friendship</a>). It should be noted that Australia’s public debt – which has grown 150% since 2007 –  currently sits at $265 billion, third only to Iceland and Ireland.
To put this into perspective, <a title="BCA warns Labor that its budget plan is failing " href="https://www.businessspectator.com.au/bs.nsf/Article/Labors-budget-plan-failing-business-says-5HH66?OpenDocument&amp;src=hp3" target="_blank">BCA warns Labor that its budget plan is failing </a>– the federal government risks damaging economic growth if it stoops to ad hoc new taxes and revenue grabs in this year’s budget. This would be further explained in the latest edition of <a title="CEO Pulse " href="https://www.businessspectator.com.au/bs.nsf/full-coverage?openview&amp;restricttocategory=ceo+pulse" target="_blank">CEO Pulse </a>where the CEO’s scorecard for the government’s performance in managing the economy is up slightly to 3.3 out of 10. A woeful score!
In the March 2012 quarter Mosman houses peaked at 144; now we see volumes are already declining to 103. It is just not Mosman – the pattern is common for all of our demographic markets.
Source: Domain Property Monitors
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time 2012 – 144 • Number of houses on the market last week – 105 • Number of houses on the market this week – 103
• Number of apartments on the market this time 2012 –115 • Number of apartments on the market last week – 76 • Number of apartments on the market this week – 76
<h4></h4>
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time 2012 – 19 • Number of houses on the market last week – 17 • Number of houses on the market this week – 17
• Number of apartments on the market this time 2012 – 25 • Number of apartments on the market last week – 20 • Number of apartments on the market this week – 15
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time 2012 – 20 • Number of houses on the market last week – 15 • Number of houses on the market this week – 14
• Number of apartments on the market this time 2012 – 65 • Number of apartments on the market last week – 39 • Number of apartments on the market this week – 43
For this week’s sales in Cremorne real estate, Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Neutral Bay real estate, Cammeray real estate, <a target="_blank" href="https://www.rwm.com.au/news/">click here</a>.
For this week’s open for inspections, <a target="_blank" href="https://www.rwm.com.au/sales-list/open_times_sales/">click here</a>.
<img src="/images/stories/2013/03/simeonmarch11three.jpg" width="470" height="245" alt="simeonmarch11three">
<a target="_blank" href="https://www.afr.com/p/business/companies/rba_quietly_increases_banks_bailout_ksLcB6WlebkzfQ89p3pPAK" title="RBA quietly increases banks’ bailout buffer">RBA quietly increases banks’ bailout buffer</a> is a fascinating read for those intrigued by the new Basel III requirements.
The only institution that I see defaulting at this point of time is the federal government on its latest spending promises. The CEO’s competency score of 3.3 out of 10 says it all.
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. 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. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Government struggles as business improves: Robert Simeon

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What a difference a week makes! Yesterday the Australian stock market posted a 53 – month high where the benchmark S&amp;P/ASX 200 index lifted 1.34 percent to 5104.1 points, and the All Ordinaries index rallied to finish at 5120.4 points. Who would have thought – there she blows?
The most challenging dilemma facing the business community in 2013 is actually navigating the many markets that determine our economy – after all everyone is always seeking an opinion. The best way I’ve found to circumvent this is to religiously read – <a title="CEO PULSE." href="https://www.businessspectator.com.au/bs.nsf/Business-Spectator-GA-Research-CEO-Pulse-Report-Qtr4-2012.pdf" target="_blank">CEO PULSE.</a> The views from Australia’s leading chief executives on:
<ul>
<li>Predictions for 2013</li>
<li>Economic Outlook</li>
<li>Outlook for their organisation</li>
<li>What keeps them awake at night</li>
<li>What advice they’d give to Julia Gillard and Tony Abbott.</li>
</ul>
<a title="CEO PULSE: Snapping the wallets shut" href="https://www.businessspectator.com.au/bs.nsf/Article/CEO-Pulse-capex-profits-AUD-Australian-dollar-Gill-pd20121211-2UQN5?OpenDocument&amp;emcontent_ceopulse" target="_blank">CEO PULSE: Snapping the wallets shut</a> – Australian CEO’s are much more confident in 2013 although the survey found that those expecting a rise in operating expenditure rose from 33 to 49 percent and those expecting a decrease in operating costs dropped from 37 to 29 percent. It is most apparent that many Australian businesses are being hit hard by the high Australian dollar – <a title="RBA documents show bank considers $A overvalued" href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-documents-show-bank-considers-A-overvalued-pd20130228-5BVF7?OpenDocument&amp;src=hp4" target="_blank">RBA documents show bank considers $A overvalued</a> by 4 to 15 percent. In unison to the CEO thoughts in CEO PULSE it came as little surprise to see <a title="CAPEX falls against expectations in December." href="https://www.businessspectator.com.au/bs.nsf/Article/CAPEX-falls-in-Dec-quarter-pd20130228-5C2FU?OpenDocument&amp;src=hp3" target="_blank">CAPEX falls against expectations in December.</a> According to the Australian Bureau of Statistics (ABS) CAPEX fell 1.2 percent in the December quarter seasonally adjusted to $40.988 billion during the quarter. Private capital expenditure is now 10 percent higher than it was in the previous December quarter.
<a title="Steady growth forecast for Aussie economy " href="https://news.smh.com.au/breaking-news-national/steady-growth-forecast-for-aussie-economy-20130227-2f5ei" target="_blank">Steady growth forecast for Aussie economy </a>– “The economy holds a large amount of offshore debt, households retain substantial debt because of high house prices and its banks are reliant on foreign investor funding.’’ They went on to say – “Our base case is that Australia’s economic growth will remain close to trend over the coming years.” Macquarie Bank recently stated in their Global market outlook for 2013 – according to Macquarie Private Wealth, there are four investment themes that will drive the investment market in 2013.
<ul>
<li>The commodity price boom is over – It’s now clear that the commodity boom ended in 2011 – but that isn’t necessarily bad news for investors because that doesn’t necessarily mean that China has stopped growing</li>
</ul>
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/03/simeonmarch4.gif" rel="shadowbox"><img src="/images/stories/2013/03/simeonmarch4thumb.gif"></a>
<ul>
<li>The rise of the Chinese consumer – While large – scale Chinese demand continues, the composition of Chinese growth is changing. A historic shift away from investment spending and towards consumer spending will require investors to think very differently about ways to gain exposure to China</li>
</ul>
<ul>
<li>Markets learning to live with a Europe in crisis – While the European debt crisis is far from over, the level of investor concern has dwindled.</li>
</ul>
<ul>
<li>Is this the beginning of a US housing recovery? – It’s no secret that the US economy continues to face some hurdles, including high unemployment of more than seven percent and the impact of austerity measures, but evidence of a housing recovery continues to build. The potential benefits to employment and investor confidence may prove to be some of the positive surprises for markets in 2013.</li>
</ul>
<a title="Let the good times roll again, says Bair" href="https://www.smh.com.au/nsw/let-the-good-times-roll-again-says-baird-20130224-2ezmk" target="_blank">Let the good times roll again,</a> says Baird – an improving international outlook means the backdrop for the state economy is better than at anytime since the beginning of the global financial crisis six years ago. <a title="With $40b of profits in the bag, the recovery gains momentum" href="https://www.brisbanetimes.com.au/business/earnings-season/with-40b-of-profits-in-the-bag-the-recovery-gains-momentum-20130227-2f69p" target="_blank">With $40b of profits in the bag, the recovery gains momentum</a> it is quite apparent that earnings growth has well and truly moved into the positive.
Click to enlarge
<a href="/images/stories/2013/03/simeonmarch4one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/03/simeonmarch4onethumb.gif"></a>
Again volumes are down with patterns emerging that our demographic housing markets remain in a holding – pattern. Something will eventually break so my prediction is that we will see a run on the property market. There won’t be a cash rate reduction when the Reserve Bank of Australia (RBA) meets this month as <a title="Global housing hots up." href="https://afr.com/f/free/blogs/christopher_joye/global_housing_hots_up_rvHOwz4IGhU782PDMb9SRL" target="_blank">Global housing hots up.</a>
Source: Domain Property Monitors
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time 2012 – 139 • Number of houses on the market last week – 103 .Number of houses on the market this week – 105
• Number of apartments on the market this time 2012 –126 • Number of apartments on the market last week – 80 .Number of apartments on the market this week – 76
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time 2012– 17 • Number of houses on the market last week – 15 .Number of houses on the market this week – 17
• Number of apartments on the market this time 2012– 23 • Number of apartments on the market last week – 21 .Number of apartments on the market this week – 20
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time 2012 – 22 • Number of houses on the market last week – 14 .Number of houses on the market this week – 15
• Number of apartments on the market this time 2012 – 63 • Number of apartments on the market last week – 38 .Number of apartments on the market this week – 39
For this week’s sales in Cremorne real estate, Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Neutral Bay real estate, Cammeray real estate. • <a title="Click Here" href="https://www.rwm.com.au/news/" target="_blank">Click Here</a>
For this week’s open for inspections. • <a title="Click Here" href="https://www.rwm.com.au/sales-list/open_times_sales/" target="_blank">Click Here</a>
 <a title="Signs of rebound in property " href="https://www.theage.com.au/business/property/signs-of-rebound-in-property-20130224-2ezik" target="_blank">Signs of rebound in property </a>keep watching the clearance rates which are closing in on 80 percent which previously indicated that property markets are booming. This time around following the Global Financial Crisis (GFC) it is apparent that the lower end markets are booming with the top – end markets showing much more caution. Having said that, there are clear indications – <a title="Views and lifestyle lure buyers back to waterfront properties." href="https://smh.domain.com.au/real-estate-news/views-and-lifestyle-lure-buyers-back-to-waterfront-properties-20130222-2ewta" target="_blank">Views and lifestyle lure buyers back to waterfront properties.</a> It should be noted that the vast majority of Mosman’s top – end acquisitions have gone to Chinese buyers.
With Australia (and other institutions) focused on what is happening in China it must be reassuring that Chinese buyer’s see our property markets as a ‘buy recommendation’ – There she blows &amp; there she goes!
Robert Simeon is a director of <a target="_blank" href="https://www.rwm.com.au/" 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 target="_blank" href="https://www.rwm.com.au/news/" 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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Navigating markets a key challenge for 2013: Robert Simeon

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Oops. We referred in last week’s edition to the Australian <a in_rurl="https://i.trkjmp.com/click?v=QVU6MjkxMDg6NzI2OnN0b2NrIG1hcmtldDo3OWMwOWNmYzMxZTY0OGMxODFjYTE4NGNlMDVlODIxNDp6LTEwNjMtMTAzMTczOnd3dy5yd20uY29tLmF1OjIzODQ4OjkwOGVjZmFiMzRkMDU1YmE1NTM1ZDJmNGM3ZWU1ZmI1" href="https://www.rwm.com.au/news/" title="Click to Continue &gt; by Browse to Save" id="_GPLITA_0" target="_blank">stock market</a> being off to a swashbuckling start when it broke the psychological 5000 barrier – what a difference a week makes. Last Thursday, the 'shock market' wiped $30 billion although I am at a loss to understand why this would be termed ‘Super Thursday’? I would think a more appropriate name would be ‘Hedge Thursday’, given it was the hedge funds who were cashing in. Investors who have ventured back into the 'shock market' are only in pursuit of fully franked yields – which are a long-term hold. The benchmark S&amp;P/ASX200 index fell 2.03% to 4995 points. Alas, no fear – by the time you're reading this those ‘psychological’ 5 points will have been found. Problem solved!
That’s enough of the 'shock market' for us, given our property markets are identifying a completely different market response. In years gone by, the share market would boom then the profits were realised and then transferred into the property markets. We have not seen this trend for quite some considerable time, so we very much doubt this will happen in 2013, nor anytime over the next five years. Baby Boomers are focused on their super funds, hence chasing fully franked yields. The entry markets (otherwise known as First <a in_rurl="https://i.trkjmp.com/click?v=QVU6MzM5ODQ6MTk5NTpob21lOjc5YWM1MmVhMDhmODBmOGI5ZjQyM2Q2YzhlNzk5OGI2OnotMTA2My0xMDMxNzM6d3d3LnJ3bS5jb20uYXU6MzQyNzM6ZWFlZTQ3NTJmOGJlYTgzYTcxMTk0ZmNlMWY5ZThiZGE" href="https://www.rwm.com.au/news/" title="Click to Continue &gt; by Browse to Save" id="_GPLITA_2" target="_blank">Home</a> Buyers) have left property markets –<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/First-home-buyers-fail-to-shine-in-2012-4X9ZA?OpenDocument" title=" rate cuts, incentives fail to lure first home buyers. RP Data reported"> rate cuts, incentives fail to lure first home buyers. RP Data reported</a> figures showed an annual average of 117,686 housing commitments to first home buyers between 2000 and 2012. Housing finance activity by first home buyers (in 2012) was 17% below the average.
So where have they gone? <a target="_blank" href="https://www.propertyobserver.com.au/residential/rental-market-tightens-in-january-to-national-vacancy-rate-of-19-mainly-due-to-seasonality-sqm/2013021959430" title="Rental market tightens in January to national vacancy rate of 1.9% mainly due to seasonality: SQM. ">Rental market tightens in January to national vacancy rate of 1.9% mainly due to seasonality: SQM.</a> The national vacancy rate tightened by 0.4 percentage points from 2.3% to 1.9% over January, with just over 54,000 properties available for rent across the eight capital city markets, compared with 63,000 in December. It should be noted that our total markets are approximately divided into thirds – one third rent, one third own a home without a mortgage and the final third own with a mortgage.
Last week, APM Research released their <a target="_blank" href="https://www.domain.com.au/content/files/Camilla/Domain%20market%20update%20report%20Jan%202013.pdf" title="Housing Market Report">Housing Market Report</a> – Australian capital cities and Gold Coast property market. In a nutshell, “positive signs continue to emerge in 2013 – Australia’s housing markets will build on the improved performances recorded in 2012”. Let me preface that with when the housing market booms it historically takes approximately a decade before we see over – heated markets again. This would then suggest that we won’t see a bull property market in Sydney until 2017.
<a target="_blank" rel="attachment wp-att-7452" href="https://www.rwm.com.au/2013/02/first-home-buyers-going-going-gone/21-02-2013-10-34-18-am/"><img height="167" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/02/21-02-2013-10-34-18-AM.jpg" alt="21-02-2013 10-34-18 AM"></a>
<h4>SYDNEY</h4>
<ul>
<li>The Sydney market continues to provide positive indications of increasing buyer activity although the prestige markets remain dormant.</li>
<li>Latest ABS data for November 2012 revealed the highest monthly loans approved for non – first home buyers in New South Wales for five years.</li>
<li>By contrast first home buyers in New South Wales have gone missing with the latest ABS loan numbers at the lowest level for 20 years. This result is however no surprise given the surge in demand from first home buyers at the end of 2011 and into 2012 motivated by changes to state government buyer incentive programs.</li>
</ul>
<a target="_blank" rel="attachment wp-att-7453" href="https://www.rwm.com.au/2013/02/first-home-buyers-going-going-gone/12-02-2013-10-40-10-am/"><img height="319" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/02/12-02-2013-10-40-10-AM.jpg" alt="12-02-2013 10-40-10 AM"></a>
<a target="_blank" rel="attachment wp-att-7454" href="https://www.rwm.com.au/2013/02/first-home-buyers-going-going-gone/12-02-2013-10-26-48-am/"><img height="557" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/02/12-02-2013-10-26-48-AM.jpg" alt="12-02-2013 10-26-48 AM"></a>
Hallelujah – Mosman houses finally score a century, albeit a month behind 2012 data.
Robert Simeon is a director of <a 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 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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Mosman houses finally score a century albeit a month behind 2012 data: Robert Simeon

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Australia’s financial markets are off to a swashbuckling start in 2013, hitting a 33-month <a href="https://www.businessspectator.com.au/bs.nsf/Article/Aust-stocks-open-at-fresh-33-month-high-pd20130213-4UV59?opendocument&amp;src=rss">high</a> and thus conquering a psychological barrier. This was quickly followed by another <a href="https://www.businessspectator.com.au/bs.nsf/Article/Aust-stocks-open-pd20130214-4VV5M?opendocument&amp;src=rss">breakthrough</a>, which was the benchmark index's highest point since August 2008. The most interesting point is that investors were running scared last year, but once they saw the coast was clear they came flocking back in. You see the same behavioural pattern in real estate: when the market is booming, buyers are prepared to pay well over the reserve, but when the market is falling they are mesmerised by fear.
<a title="As banks’ cash piles grow, so does the pressure to share with investors" href="https://www.smh.com.au/business/as-banks-cash-piles-grow-so-does-pressure-to-share-with-investors-20130211-2e8u2" target="_blank">As banks’ cash piles grow, so does the pressure to share with investors</a>. Last Wednesday, the country’s largest lender the Commonwealth Bank announced it was headed for another year of record earnings. It’s hard to fathom why gloomy former <a title="RBA board member Bob Gregory predicts cash rate to fall to 1.5%" href="/news" target="_blank">RBA board member Bob Gregory predicts the cash rate to fall to 1.5%</a> (although other bank economists are more circumspect). Given the Reserve Bank of Australia (RBA) currently has the cash rate at 3.00% - which is what the bank terms “emergency levels” - one can only assume that at 1.50% our economy would be in intensive care. I can’t see that happening, however. The only positive is that at 3.00 % the RBA still has plenty of fat to cut from the cash rate. Weak outlook <a title="Weak outlook weighs on business confidence: CEO’s" href="https://www.businessspectator.com.au/bs.nsf/Article/Weak-outlook-weighs-on-business-confidence-CEOs-pd20130208-4QQNP?opendocument&amp;src=rss" target="_blank">weighs on business confidence: CEOs</a>, although the RBA is preparing for a slightly weaker economy.
So our fascination with markets continues to confuse given the balance of arguments are both for and against, which translates into the dreaded consumer confusion. <a title="Housing values maintain build – up" href="https://afr.com/f/free/blogs/christopher_joye/housing_values_maintain_build_up_N2u1LtLLkNmHCKvZXOxlFJ" target="_blank">Housing values maintain build – up</a> where the much-maligned “housing affordability” presently sits at a ten year low. Australia’s property markets consist of thousands and thousands of individual niche markets, as shown in the graphs below.
<a href="https://www.rwm.com.au/2013/02/mirage-markets-continue-to-stifle-consumer-confidence/bb67f820-71a0-11e2-8dce-b19ab989915d_09p29sm_joye/" rel="attachment wp-att-7429"><img alt="bb67f820-71a0-11e2-8dce-b19ab989915d_09p29sm_joye" src="https://www.rwm.com.au/wp-content/uploads/2013/02/bb67f820-71a0-11e2-8dce-b19ab989915d_09p29sm_joye.png" width="470" height="244"></a>
<a href="https://www.rwm.com.au/2013/02/mirage-markets-continue-to-stifle-consumer-confidence/12-02-2013-10-25-46-am/" rel="attachment wp-att-7423"><img alt="12-02-2013 10-25-46 AM" src="https://www.rwm.com.au/wp-content/uploads/2013/02/12-02-2013-10-25-46-AM.jpg" width="470" height="796"></a>
In the late 1980s, the Mosman property market was dominated by property developers who were eventually wiped out in the early 1990s with the "recession we had to have". Our markets were benign until 1995 when Sydney was announced as the host of the 2000 Olympics, marking the rise and rise of merchant bankers – a group who were to be severely impacted by the Global Financial Crisis. The new dominant buyer in Sydney’s top–end markets <a href="https://www.propertyobserver.com.au/trends/chinese-signal-property-buying-intentions-in-australia-as-permanent-arrivals-numbers-rise-and-visitor-numbers-jump-dramatically/2013020659187">are the Chinese</a>. According to the Australian Bureau of Statistics (ABS), 17,580 Chinese people settled permanently in Australia in 2012, up from 15,780 in 2011 and 14,720 in 2010. We have seen anecdotal evidence at the top–end that the Chinese are the new main players, which explains why last week we added a Chinese translation to our website.
Yet again, vendors in Sydney's lower north shore are not being drawn into selling, with numbers of houses and apartments well down on this time last year. Given the volumes in 2012 were significantly up when compared to 2013 it is indeed difficult to explain why vendors are not attracted to sell. We believe the reason is many people think that property markets are set to jump significantly and, given the low stock levels, they are concerned about selling and then seeing prices jump and being caught in a vacuum. This takes me back to what I said earlier: you see the very same behavioural patterns with real estate. When the market is booming, buyers are prepared to pay well over the reserve, butwhen the market is falling they are mesmerised by fear.
Robert Simeon is a director of <a 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 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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Fear of price jump holding back north shore vendors

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Making predictions pertaining to our residential property markets has been challenging since 2007 – however it appears that in 2013 that task won’t be as difficult (I hope). The Reserve Bank of Australia (RBA) gave a clear indication that their manoeuvring of the cash rate in 2013 will be closely reflective of Australia’s property data. <a target="_blank" href="/news" title="Housing prices have moved higher: RBA governor’s statement ">Housing prices have moved higher: RBA governor’s statement</a>, which confirms my prediction last week that I believe the official cash rate will not go below 3% in 2013.
<a target="_blank" href="https://www.theage.com.au/business/the-economy/next-rate-cut-up-to-the-banks-20130205-2dw23" title="Next rate cut up to banks ">Next rate cut up to banks, </a>which is exactly what the RBA would be hoping,so it did not take long before <a target="_blank" href="https://www.propertyobserver.com.au/news/westpac-lead-the-big-banks-below-5-on-nfixed-home-loans/2013020659208" title="Westpac lead the big banks below 5% on fixed home loans">Westpac lead the big banks below 5% on fixed home loans</a>. It’s over to the others now – the NAB’s lowest fixed  rate is 5.34% for its one-year home loan, the Commonwealth Bank offers a one-year fixed of 5.19%, while ANZ offers a two-year fixed rate at 5.49% – so watch with interest should they decide to sharpen their respective pencils next week. If you’re planning on selling you should not sign  up, given when you are fixed you then qualify for break fees should you sell during your fixed term.
So the good news for property owners is that the <a target="_blank" href="https://afr.com/f/free/blogs/christopher_joye/house_price_recovery_under_way_I3OkqQO7imoCeJQYb1x3AN" title="house price recovery under way">house price recovery under way</a>, which overall is a pleasant change given for once, the <a target="_blank" href="https://www.propertyobserver.com.au/residential/for-once-the-statistics-agree-that-property-prices-are-rising-terry-ryder/2013020659198?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=upperright" title="statistics agree that property prices are rising">statistics agree that property prices are rising</a>. Having said that, we are of the opinion that we will see a gradual albeit minimal capital appreciation throughout 2013. Further evidence is that <a target="_blank" href="/news" title="AFG reports record January figures with $2.2 billion ">AFG reports record January figures w</a><a target="_blank" href="/news" title="AFG reports record January figures with $2.2 billion ">ith $2.2 billion </a>mortgages approved which represents their highest cumulative value ever recorded for the group. Australia’s population has a firm foot on the accelerator.
For those watching the Australian All Ordinaries closely, it currently sits at just below the 5,000 mark – historically when the All Ordinaries is north of 5,000 our property markets are booming. Although I foresee that what we are seeing presently is a false economy given investors have moved from protecting their cash reserves to re-investing back into the shock market. <a target="_blank" href="https://www.smh.com.au/money/investing/all-ords-at-17000-just-rally-round-this-forecast-20130106-2cb24" title="All Ords at 17,000? Just rally round this forecast">All Ords at 17,000? Just rally round this forecast</a> well that is a prediction for 2030 – so don’t panic.
<a rel="attachment wp-att-7402" href="https://www.rwm.com.au/2013/02/2013-a-different-market-get-on-with-online/7-02-2013-3-47-34-pm/"><img width="470" height="438" src="https://www.rwm.com.au/wp-content/uploads/2013/02/7-02-2013-3-47-34-PM.jpg" alt="7-02-2013 3-47-34 PM"></a>
As we reported last week the Mosman, Cremorne and Neutral Bay volume of listings is down considerably on previous years. Interestingly, this statistic is not only restricted to our demographic markets, as <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-property-listings-fall-by-surprising-6-in-january-to-lowest-level-since-april-2010-sqm/2013020359117?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=latestnews" title="Sydney property listings fall by ‘surprising’ 6% in January to lowest level since 2010: SQM.">Sydney property listings fall by ‘surprising’ 6% in January to lowest level since 2010: SQM.</a> It is interesting to note that Mosman house listings continue to hover at the moment at approximately 25% down on this time last year. It will be fascinating to watch how these figures alternate through 2013.
However, our <a target="_blank" href="https://news.theage.com.au/breaking-news-business/construction-sector-continues-to-shrink-20130207-2e08j" title="construction continues to shrink ">construction </a><a target="_blank" href="https://news.theage.com.au/breaking-news-business/construction-sector-continues-to-shrink-20130207-2e08j" title="construction continues to shrink ">continues to shrink</a><a target="_blank" href="https://news.theage.com.au/breaking-news-business/construction-sector-continues-to-shrink-20130207-2e08j" title="construction continues to shrink ">,</a> which just so happens to be the 32nd month of contractions within our building industry.
Robert Simeon is a director of <a 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 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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Gradual, minimal house price appreciation in 2013

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For the first time in five years we are somewhat upbeat about what lies ahead despite it being an election year. With the election date being announced – September 14 – this is good news for the property markets as it removes uncertainty and speculation.
We are already we are starting to see a more positive approach, with <a title="CEO confidence in global economy returning: PWC " href="https://www.businessspectator.com.au/bs.nsf/Article/Top-CEOs-less-gloomy-about-global-economy-47S8P?OpenDocument&amp;src=tnb" target="_blank">CEO confidence in global economy returning: PWC</a>, with a major survey pointing to stronger confidence. This is critical given confidence has been the missing ingredient within our economy. <a title="Aust stocks gain 12.74% over 2012" href="https://www.businessspectator.com.au/bs.nsf/Article/Aust-stocks-open-half-a-per-cent-lower-pd20121231-3GV3J?OpenDocument" target="_blank">Aust stocks gain 12.74% over 2012</a>, which is important given investors abandoned our financial markets as a direct result from the global financial crisis (GFC). With interest I read a Eureka Report article by Alan Kohler – <a title="Five reasons why I’m bullish in 2013." href="https://www.businessspectator.com.au/bs.nsf/Article/markets-economy-2013-RBA-China-Rio-Tinto-US-pd20130122-478ZT?OpenDocument&amp;src=mp" target="_blank">Five reasons why I’m bullish in 2013.</a> He points out “All of which means the returns from cash are miserable and falling. Time to invest then, which means taking more risk, but not too much risk – thus, bank shares returned 25% in the second half of 2012.
"In my view this trend has just begun. For five years investors everywhere have been more concerned with not losing their capital than with making a return, and gradually this is changing; they are moving out along the risk curve.” Property markets and financial markets run in parallel lines, then throw in an all time record low cash rate of 3%, and the evidence is overwhelming that our property markets are at a precipice.
Back to the cash rate, which I don’t believe will go any lower, despite <a title="Steve Keen and Macquarie Group tip cash rate of 2% by year end" href="/news" target="_blank">Steve Keen and Macquarie Group tipping a cash rate of 2% by year end</a>. Should that be the case this prediction means that the Australian economy is cactus. I’m with <a title="HSBC’s Paul Bloxham the lone rider tipping interest rates to rise in 2013." href="/news" target="_blank">HSBC’s Paul Bloxham, the lone rider tipping interest rates to rise in 2013.</a> No doubt each and every one of you has your own thoughts on which direction the cash rate is headed.
It’s difficult to allow the facts to get in the way of a good story – Australian Property Monitors published its December quarter 2012 findings:
<h4>KEY POINTS</h4>
• The national median house price rose by 1.9% over the December quarter and is 2.1% higher than at the end of 2011. • Sydney house and unit prices are now at record levels. • All capitals recorded house prices over the quarter for the first time since March 2010.
Bear in mind also many of the top-end sales are still to filter through – for example, this week we had a Beauty Point residence settle for $12.8 million, which is the new record for a non-waterfront.
<img alt="simeonfeb1" src="/images/stories/2013/02/simeonfeb1.jpg" width="470" height="398">
 
We can also expect fierce rivalry in the home loan market, where the big four banks would have been horrified to read <a title="A third of borrowers would ditch the Big Four banks for 50 basis point discount: CUA" href="/news" target="_blank">a third of borrowers would ditch the big four banks for 50 basis point discount: CUA</a>. Just as fascinating <a title="Banks laughing all the way to the ...bank " href="https://www.smh.com.au/business/banks-laughing-all-the-way-to-the--bank-20130128-2dgw3" target="_blank">Banks laughing all the way to the …bank </a>“In a confidential note to its institutional clients, Westpac describes the fall in wholesale funding costs as ‘extraordinary’ “. The days of blaming “high funding costs” are now it would appear irrelevant.
<img alt="simeonfeb12" src="/images/stories/2013/02/simeonfeb12.jpg" width="470" height="308">
 
It is all about confidence.
This takes me to the most remarkable property data I have ever seen before!
For some strange reason vendors in <a href="/news">Mosman</a>, <a href="/news">Cremorne </a>and <a href="/news">Neutral Bay</a> appear to be not even remotely interested in selling in 2013. We have never before seen such a tight market with available properties for sale the lowest we have ever seen – otherwise known as a Vendors’ Market. So why would the Reserve Bank of Australia (RBA) even consider lowering the cash rate?
Robert Simeon is a director of <a 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 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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Property market the tightest it's ever been in Mosman and Cremorne

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For many businesses 2013 will go down as a complete disaster – the disaster is actually their business model, not the markets. The question that businesses need to face is a simple one: face the truth and then dare to be different.
Next year will identify market shifts from the previously dominant print advertising market to online advertising marketing campaigns. <a target="_blank" href="https://www.smh.com.au/technology/technology-news/internet-use-rockets-as-australians-dependence-grows-20121206-2ax3g" title="Internet use rockets as Australians’ dependence grows">Internet use rockets as Australians’ dependence grows</a> – Australians, it seems, are increasingly addicted to the internet: a report from the communications regulator shows we are sucking down hundreds of thousands of terabytes more than we were a year ago. In the year to June 30, 2012, Australians downloaded 421,147 terabytes of data, an increase of 52%, while total internet subscribers increased to 28.23 million. Nearly half of us (10.8 million) are going online at least once a day, and the typical Aussie spends 82 hours a month on the internet.
Follow the bouncing eyeballs, where <a target="_blank" href="https://www.smh.com.au/business/online-shopping-costs-thousands-of-jobs-says-retailer-20121204-2at82" title="online shopping costs thousands of jobs, says retailer ">online shopping costs thousands of jobs, says retailer, </a>which is directed at the Gillard government’s decision – <a target="_blank" href="https://www.brisbanetimes.com.au/opinion/political-news/threshold-for-online-goods-stays-20121203-2ar4m" title="Government rules out immediate cut to GST on online purchases.">Government rules out immediate cut to GST on online purchases.</a> At some point in time this will come to fruition given approximately 58 million online purchases each year take advantage of this GST loophole. Given it is an election year in 2013 watch for a major backflip on this decision to grab the small business vote.
Should businesses not have a reinvigorated online marketing platform strategy in place for 2013 it will be yet another dismal year to such an extent by this time next year in all probability their doors won’t be open. In 2013, Richardson &amp; Wrench Mosman &amp; Neutral Bay (RWM) will be rolling out our <a target="_blank" href="https://www.rwm.com.au/" title="Mosman.tv">Mosman.tv</a> site as well as <a target="_blank" href="https://www.rwm.com.au/" title="Cremorne.tv ">Cremorne.tv </a>and <a target="_blank" href="https://www.rwm.com.au/" title="Neutral Bay.tv">Neutral Bay.tv</a> online platforms. Some years ago, we acquired these URLs with the knowledge when online evolves these platforms would be the next must have online positions.
<a target="_blank" href="https://www.rba.gov.au/speeches/2012/sp-dg-051212" title="What is Normal?">What is Normal?</a> a very good question given so many businesses are struggling in the “new normal” ? This can be addressed quite simply: truth or dare! Australia’s markets have moved to the online models. Real estate markets are struggling simply because the property pie is getting smaller as fewer transactions are being recorded given the high cost of moving. Last week, we noted that apartment sales in Mosman have reduced by 22% when compared with 2011. <a target="_blank" href="https://www.propertyobserver.com.au/residential/wednesday-catherine-cashmore/2012120458282" title="Real estate agents doing it tough amid economic woes and vendor – led marketing alternatives: ">Real estate agents doing it tough amid economic woes and vendor – led marketing alternatives: </a>this reality being that real estate agents and agencies simply don’t understand or comprehend this “new normal”.
Click to enlarge
<a href="/images/stories/2012/12/rpdec3.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/rpdec3thumb.jpg"></a>
<a href="/images/stories/2012/12/rpdec31.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/rpdec31thumb.gif"></a>
<a href="/images/stories/2012/12/rpdec32.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/rpdec32thumb.gif"></a>
We have <a target="_blank" href="https://www.smh.com.au/business/property/house-prices-on-bumpy-road-of-recovery-20121203-2apzv" title="house prices on bumpy road to recovery">house prices on bumpy road to recovery</a> although it is important to note that top-end markets are now being valued at 2004 base dates. Property markets are simply being recalibrated given the dominance of investment bankers who drove top-end property values from 2004 – 2008. They, like the property values, are no longer there today and are being substituted by the new market, that being Chinese investors. Fascinating how property markets change and evolve. Once upon a time home buyers struggled to compete with property developers (now extinct), then it was merchant bankers (now fighting for survival), where today the fastest growing market is the Chinese buyer demographic.
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" 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/" 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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Real estate businesses must dare to be different or perish in 2013

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The OECD this week declared the bleeding obvious. The world economy is slipping back towards recession! It was made very clear who was to blame for this slide and yes, you guessed it, politicians!
<a title="Kicking the can towards a global recession" href="https://www.businessspectator.com.au/bs.nsf/Article/OECD-economy-recession-Greece-debt-crisis-GDP-pd20121128-2FRNG?OpenDocument&amp;src=mp" target="_blank">Kicking the can towards a global recession</a>, a sensitive issue where re-election is paramount over effective policy strategy. “The Australian economy is forecast to grow by 3.25% in 2013, but it ‘remains marked by substantial sectoral disparities’." The government may need to slow budget consolidation and will definitely need to boost “productivity by pursuing reforms in taxation, infrastructure and innovation”. Unlikely, as 2013 is an election year, which will be all about promises that will never see the light of day.
Coincidentally, this week marked the 22nd anniversary of the Paul Keating-led ‘recession Australia had to have’ and this week it was announced <a title="recession possible in 2014, economist warns" href="https://www.smh.com.au/business/recession-possible-in-2014-economist-warns-20121127-2a4jy" target="_blank">recession possible in 2014, economist warns</a> – a theory I don’t doubt for one single moment. What needs to be closely scrutinised here is how businesses have adapted to the brave new online world where consumer behaviour has radically changed the “acquisition” mentality.
I may have been harping on with this conspiracy theory for over a decade however, I predict that 2013 will be the year of online and I will have more to say about this next week. Follow the bouncing ball has now been replaced with eyeballs. <a title="Online shopping in Aust growing rapidly " href="https://www.smh.com.au/small-business/trends/online-shopping-in-aust-growing-rapidly-20121128-2acz8" target="_blank">Online shopping in Aust growing rapidly, </a>the National Australia Bank’s Online Retail Index shows that online sales grew 26% year-on-year to October, compared with 14% year-on-year, in May. Consumers have now moved to cyber shopping markets, and the problem within Australia is that traditional markets simply don’t get or understand this seismic shift to the new cyber markets.
Recently, I suggested that at a bare minimum, 30% of Australia’s 10,000 + real estate agencies will be broke within 24 months simply because the cost of property transactions within Australia is too expensive. This takes us directly to the Australian OECD warning regarding taxation. Australian consumers are now saving and not spending!
<img src="/images/stories/2012/12/simeondec3.jpg" width="470">
<img src="/images/stories/2012/12/simeondec32.jpg" width="470">
No better example than <a target="_blank" href="/news" title="smaller banks and non – banks to offer borrowers better mortgage deals in 2013: Delloitt">smaller banks and non – banks to offer borrowers better mortgage deals in 2013: Delloitte</a>, simply because consumers are eyeballing the cyber markets from the comfort of their homes as against making appointments to be interviewed by a bank manager. Further evidence<a target="_blank" href="https://www.smh.com.au/business/boom-days-are-over-for-banks-kelly-20121128-2ae60" title=" boom days are over for banks: Kelly"> boom days are over for banks: Kelly</a>, where Westpac’s chief executive announced the days of Australian banks posting returns on equity of 20% or more are long gone.
Let’s look at the <a target="_blank" href="/news">Mosman</a> example, where this week we extrapolate the data for Mosman 2012 apartment and townhouse sales – and yes, the market this further declined.
<ul>
<h4>MOSMAN APARTMENT AND TOWNHOUSE SALES – 2010, 2011 AND 2012</h4>
Source: Domain Property Data
<li>2012 Sales – 370*</li>
<li>2011 Sales – 472</li>
<li>2010 Sales – 467</li>
*Sales still being compiled although it would be reasonable to suggest that sales will be significantly down on previous years. On these figures sales are 22 percent down on 2011.
<li>2012 Total Value – $296,096,984*</li>
<li>2011 Total Value – $379,388,525</li>
<li>2010 Total Value – 379,388,525</li>
*Sales still being complied although on this data another 22 percent reduction on 2011.
<li>2012 Average Price – $800,262</li>
<li>2011 Average Price – $803,789</li>
<li>2010 Average Price – $848,928</li>
</ul>
Next week, we will examine Mosman house data comparisons.
Property listings in Mosman keep declining and Mosman houses fell below the dreaded 100 mark this week. It is most obvious that that the 2010 and 2011 housing markets bear no resemblance. There is a strong argument that in the 2012 market, “the price is right”. Next year, we will have a federal election, and property confidence is generally much stronger under a Liberal government.
Another grubby week of politics <a target="_blank" href="https://www.smh.com.au/opinion/political-news/gillard-abbott-in-pitched-battle-over-awu-affair-20121129-2ah0u" title="PM responds ‘So what?’ to new AWU claims">PM responds ‘So what?’ to new AWU claims</a> where despite four files conveniently going missing, the major file is in Seattle. Former Slater &amp; Gordon partner Nick Styant-Browne conveniently copied the file and keeps drip feeding the Australian media. I think PM Julia Gillard is gone. The Gillard government spent a motza to get a seat on the United Nations General Assembly then abstained on its first vote. <a target="_blank" href="https://www.smh.com.au/opinion/political-news/gillard-reassures-israel-of-backing-despite-un-vote-20121128-2ae77" title="Gillard reassures Israel of backing despite UN vote">Gillard reassures Israel of backing despite UN vote</a>. More a case of <a target="_blank" href="https://www.dailytelegraph.com.au/news/gillards-un-vote-backdown-to-save-her-job/story-e6freuy9-1226525284024" title="Gillard UN vote backdown to save her job">Gillard UN vote backdown to save her job</a>, which would explain precisely what the OECD was alluding to.
The Reserve Bank of Australia (RBA) meets tomorrow for the final meeting of 2012. My prediction? The cash rate will be dropped -0.25 points to 3% to match the global fiinancial crisis (GFC) rate in April 2009 at 3%. The ‘World’s Greatest Treasurer’ will announce that under Australian Labor, it delivers the lowest interest rates. Some may conclude that it is more a case of its economic policies – refer OECD for example A.
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" 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/" 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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One-third of real estate agencies likely to go broke in next two years

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Surprise, surprise – <a target="_blank" href="https://www.heraldsun.com.au/ipad/australians-increasingly-disillusioned-with-federal-system-and-national-tier-of-government-newspoll-finds/story-fnbzs1v0-1226518603337" title="Australians increasingly disillusioned with federal system and national tier of government Newspoll finds">Australians increasingly disillusioned with federal system and national tier of government, Newspoll finds</a>. According to the third biennial constitutional values survey, two-thirds of Australians do not believe state and federal governments are working well together, with confidence in the federal government as the most effective level of government falling from 50% in 2008 to 29% in 2012.
Griffin University’s Professor AJ Brown, the survey’s lead researcher, said “the declining faith in governments suggested Australia was headed for a 'crisis of confidence' unless greater political priority was again given to issues of federal co-operation and longer-term reform”.
Alas, we constantly hear the buzzword “reform”. For those closely watching the Independent Commission Against Corruption (ICAC) <a target="_blank" href="https://www.afr.com/p/national/nsw_politics_ugliest_years_hWqSgkNBODtPIVpCXFlTIJ" title="NSW politics’ ugliest years">NSW politics’ ugliest years</a>, the allegations of corruption are the most frightening in Australia’s political history. The allegations of greed are incomprehensible although not surprising, as suspicion has always overshadowed NSW Labor.
NSW is not alone, and the federal ALP has more than a few pending court cases to defend, with the latest (the one where four files conveniently went missing) being <a target="_blank" href="https://www.smh.com.au/opinion/political-news/bank-letter-links-pm-to-house-mortgage-20121122-29ssd" title="bank letter links PM to house mortgage.">bank letter links PM to house mortgage.</a> It has started to get very ugly for the declining ALP support machine. Australia’s Prime Minister will have to deliver a plethora of explanations to convince the Parliament that statements she has made previously were not misleading. Much speculation that her days in the top gig are numbered, and I predict a resignation over another knifing.
<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/Funding-crisis-looms-banks-must-access-supers-Clyn-pd20121113-ZZQ68?OpenDocument&amp;src=hp20" title="Funding crisis looms, super could be the answer: Clyne ">Funding crisis looms, super could be the answer: Clyne </a>an interesting proposition given a restriction on lending is assured of sending an economy into recession.  Australia needs to be investing in new markets although the costs of doing business within Australia is or should be of enormous concern. <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/Australian-dollar-construction-unions-mining-gas-S-pd20121122-29SWV?OpenDocument&amp;emcontent_Gottliebsen" title="Blame CEOs for national cost explosion ">Blame CEOs for national cost explosion, </a>which points out that it is three times more expensive to build a mining plant in Australia than in the United States. This is further evidenced within the declining manufacturing industry, which is constantly in decline and propped up by taxpayers. I doubt that within 10 years, Australia will have a manufacturing industry.  Australia will become an import, not export economy, which means that unions won’t survive either.
<img width="470" src="/images/stories/2012/11/simnov23.jpg">
The good news for consumers is that the big four banks are now under increasing pressure given <a title="China’s biggest bank, ICBC, moves on Australian expansion plans" href="https://www.smh.com.au/business/chinas-biggest-bank-icbc-moves-on-australian-expansion-plans-20121112-298co" target="_blank">China’s biggest bank, ICBC, moves on Australian expansion plans</a> and is now increasing and opening branches all over Australia. According to Wikipedia, Australian residents identified as having Chinese ancestry make up 4% of Australia’s population or approximately 865,000 people as at 2011. Throw in <a title="Macquarie Bank doubles loans in first nine months of 2012: APRA figures " href="/news" target="_blank">Macquarie Bank doubles loans in first nine months of 2012: APRA figures, </a>so we are seeing a change within the banking landscape.
Sydney is Australia’s most densely populated city – its established inner and middle suburbs averaged 3,244 persons per square kilometre in 2010, up 13% from 2001. Just like our manufacturing decline, it is the cost of living that is determining our economy.
<img width="470" src="/images/stories/2012/11/simnov231.jpg">
The best example (I love graphs) is this:
<img width="470" src="/images/stories/2012/11/simnov232.jpg">
Which brings us back to the Newspoll findings – modern-day governments just don’t get it. Australia needs to quickly adjust to the enlightenments of the modern world. Just look at the dumb and dumber <a title="Click Frenzy" href="https://www.clickfrenzy.com.au/" target="_blank">Click Frenzy</a> launch this week where the servers crashed. Only an incompetent wouldn’t know that this website needs its own dedicated servers to cope with the demand – not shared servers.
The Mosman housing markets continues to contract much faster than we witnessed last year – which is more to do with the state of the economy than anything else. Although it was pleasing to see that yesterday, Australian stocks jumped through the 4,400 point barrier. One should bear in mind that when it breaks 5,000, house prices go into boom mode. This is a scary proposition (even for a real estate agent) given my belief that the last thing our property markets need is a property boom when, at best, we see so many dysfunctions in our overall economy.
Robert Simeon is a director of <a 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 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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Dysfunction in overall economy, but property could be heading into boom mode

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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