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Some would suggest that the global financial crisis (GFC) is over. Some would rightly suggest that today, given many of the remnants that are still unresolved, it is far from over. <a title="Eurozone falls into second recession since 2009" href="https://www.smh.com.au/business/world-business/eurozone-falls-into-second-recession-since-2009-20121116-29fgm" target="_blank">Eurozone falls into second recession since 2009</a>, and then you have that minor issue called the "fiscal cliff". The cliff is a legislated bundle of government spending cuts and tax increases totalling $US608 billion that are due to take effect automatically on January 1.
So I was fascinated this week to read the latest buzzword – SMBC (small to medium business crisis). Alan Kohler wrote on Business Spectator – <a title="What crisis? This crisis" href="https://www.businessspectator.com.au/bs.nsf/Article/Dutch-disease-GFC-economy-SME-NAB-commodities-mini-pd20121114-ZZQR7?opendocument&amp;src=rss" target="_blank">What crisis? This crisis</a> – “Yesterday’s monthly business survey from NAB should be setting off alarm bells in Canberra and through every bank and big company boardroom in the country: Australia’s non-mining businesses are in serious trouble just as the resources boom ends. There will be nothing to take its place.”
“This is a genuine national crisis, but the problem is that it’s going largely undetected and unaddressed because it is not showing in the broad economic data, which is what the Reserve Bank sets interest rates by. That’s why rates were left on hold this month, and may be again in December.”
Personally, I see the end of Australia’s mining boom as a positive as it will allow our business sector to re-calibrate – especially the building sector, which put down tools on building sites to chase work at the then highly profitable mines. <a title="Mining’s double whammy to weigh on growth" href="https://www.smh.com.au/business/the-economy/rba-cuts-growth-forecast-for-third-time-20121109-2928n" target="_blank">Mining’s double whammy to weigh on growth</a> in its statement on monetary policy, the Reserve Bank said weaker spending in the resources sector had prompted it to drop gross domestic product (GDP) growth forecasts for 2013 to below 2.75 percent, compared to 3.0 percent in the August statement.
For a moment forget the mining sector. Australia’s alternate businesses, i.e. those that make up the SMBC, are simply being smashed by one predator – online!
Let’s look at the facts that clearly announce where business is headed – startling data I found on the internet.
<ul>
<li>There are 7 billion people on Earth, with 5.1 billion owning a mobile phone.</li>
<li>It takes 90 minutes for the average person to respond to an email. It takes 90 seconds for the average person to respond to a text message.</li>
<li>91% of all smartphone users have their phone within arm’s reach 24/7.</li>
<li>According to Google’s Our Mobile Planet, smartphone penetration in Australia is now at 52%; however a report by Telsyte predicts that nearly 90% of Australian mobile phone users will have a smartphone as their primary device in 2015.</li>
<li>Nearly 60% of smartphone users access the internet every day on their smartphone and 74% don’t leave home without it.</li>
<li>A massive 94% of smartphone users have researched a product or service on their phones, and only 59% look at first page results when searching on their smartphones.</li>
<li>Interestingly, the three most popular places where people use their smartphones, are home (98%), on the go (85%) and in the office (73%).</li>
</ul>
<img src="/images/stories/2012/11/simeonnov16.jpg" width="470">
 
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<a target="_blank" href="https://www.smh.com.au/business/online-mega-sale-to-lift-local-retail-20121112-298g3" title="Online mega sale to lift local retail">Online mega sale to lift local retail</a> – from Tuesday Australia will experience its first online frenzy when up to 150 retailers will slash their online prices – by between 15% and 90% for 24 hours. Shoppers will have to access <a target="_blank" href="https://clickfrenzy.com.au/" title="clickfrenzy.com.au">clickfrenzy.com.au</a> to access the retailers’ online deals, and this will be the first of many to come. What we are seeing with this is that finally retailers are acknowledging that online is the future.
As for the real estate industry, it will survive. However, the businesses with the dominant online platforms will succeed and those that don’t understand it will perish – like many other industries.
So what is happening with interest rates? Here is a clue.
<img src="/images/stories/2012/11/simeonnov161.jpg" width="470">
Despite the ‘World’s Greatest Treasurer’ believing that the lower the cash rate the better the economy, in 2013 Australia is looking at the lowest cash rates ever seen before. On that analogy, one can reasonably expect that 2013 will be another tough year in real estate.
If this proves to be correct then print advertising (as we know it) will collapse in 2013 and real estate advertising's major spend will be online. Newspapers are not that smart when it comes to real estate advertising expenditure – they need to focus on the little picture not the big picture. Newspaper advertising in the future is merely a point of introduction to online, not vice versa.
<img src="/images/stories/2012/11/simeonnov162.jpg" width="470">
Again the same story in Mosman, where we are seeing a reduction in volume compared with this time last year. This can be easily explained. It is too expensive to move given the trading costs, and when homes are sold for less than replacement value – it is not a coincidence that markets then stagnate. 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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robertsimeon-hRNTwJyXkQ

Aussie retailers finally acknowledge online is the future, and real estate must too

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The NSW O’Farrell government is facing an interesting dilemma – does it borrow and risk losing its precious triple-A credit rating or sell off state assets? I’m sure everyone has mixed feelings about which is the smarter alternative, although I must admit I favour losing the triple-A credit rating for one simple reason: it makes the government leaner and meaner.  Business is run under that economic philosophy, so why not the NSW government?
There is nothing wrong with <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-04/infrastructure-funding-questions/4295198" title="infrastructure funding questions">infrastructure funding questions</a> given that in previous governments the taxpayer waste defied all logic, e.g. the failed/aborted Rozelle Metro, for which the previous NSW government wasted $500 million and all for no gain. The O’Farrell government has $53 billion earmarked for transport and roads infrastructure and services over the next four years – <a target="_blank" href="https://www.transport.nsw.gov.au/media-releases/rebuilding-nsw-20-year-vision-transport" title="Rebuilding NSW: 20 – year vision.">Rebuilding NSW: 20-year vision.</a>
You may be surprised to learn that on November 19 to 20 the <a target="_blank" href="https://www.expotrade.net.au/events/nsw-major-projects-conference-2012" title="4th Annual NSW Major Projects Conference 2012 ">4th Annual NSW Major Projects Conference 2012</a> is being held, where they will state the obvious. “New South Wales is entering an exciting time of renewal as the challenges to build and exceed beyond its past achievements is reaching critical tipping point. The NSW economy has grown to become the largest and most diverse economy in Australia, contributing one third of the nation’s gross domestic product and is home to 32% of Australia’s population, with even more significant population growth on the near horizon.”
One would be correct in asking why NSW holding is just its fourth annual NSW major projects conference when it should be around the 24th. The simple answer is that due to "no infrastructure" under the previous government, in all probability it was formed from pure desperation to simply get something happening. <a target="_blank" href="https://www.smh.com.au/opinion/politics/city-might-appear-to-be-down-but-it-is-far-from-out-20121107-28y98" title="City might appear to be down, but it is far from out">City might appear to be down, but it is far from out</a>, which takes me to James Packer’s article – <a target="_blank" href="https://www.smh.com.au/nsw/for-the-good-of-sydney-back-this-plan-20121102-28p9t" title="For the good of Sydney, back this plan ">For the good of Sydney, back this plan</a> – a very interesting read, and I back his plan.
The biggest news for the property market this week was <a target="_blank" href="/news" title="Macquarie Group takes Yellow Brick Road into home loans market">Macquarie Group takes Yellow Brick Road into home loans market</a>, which will cause Yellow Brick Road to go  head-to-head with the big four banks. Under the deal, Yellow Brick Road will try to undercut the big banks by offering a 1.15 percentage point discount on all new homes in the first 12 months of the loan. The big four have actively acquired all the second-tier banks to protect their market share, which is approximately 80% of the Australian home loan market. It should also be noted that most of the biggest real estate agencies within Australia bank with Macquarie Bank (us included), so this announcement provides Macquarie Bank with direct access to Australia’s biggest and most successful real estate agencies. I will make a prediction Yellow Brick Road will be the first bank to respond to a rate cut by the Reserve Bank of Australia (RBA).
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We predicted last week that the RBA would keep the cash rate at 3.25%, which I believe is directly aimed at what happens in the United States of America following the re-election of Barack Obama –<a target="_blank" href="https://www.smh.com.au/world/us-election/superman-has-just-54-days-to-save-the-world-20121107-28yls" title=" Superman has just 54 days to save the world."> Superman has just 54 days to save the world.</a> The simple reality is that the <a target="_blank" href="https://www.smh.com.au/business/rba-holds-rates-but-with-a-loose-grip-20121106-28w3t" title="RBA holds rates but with a loose grip.">RBA holds rates but with a loose grip.</a> So the stark reality of the decision is quite simple:<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-rates-decision-Glenn-Stevens-commodities-dolla-pd20121106-ZS7EF?opendocument&amp;src=rss" title=" RBA keeps its powder dry."> RBA keeps its powder dry.</a> Congratulations to the ANZ economists, who have correctly called the RBA’s cash rate announcements seven for 10 thus far in 2012.
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<a target="_blank" href="https://www.smh.com.au/business/building-data-still-gloomy-outlook-brighter-20121107-28x8p" title="Building data still gloomy, outlook brighter ">Building data still gloomy, outlook brighter </a>although it should be noted that construction activity in Australia has now been in contraction for 29 months. If that is not a warning to the Gillard government then nothing is.  When the economic principle of supply v demand is applied, you don’t have to be Einstein to work out which demographic market is going to benefit.  Australia already is recording the highest ever rental markets, which are  being further driven by the Gillard government decision: <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/sydneys-rental-market-feeling-the-sting-of-changes-to-living-away-from-home-allowance-carlie-ziri/2012092556792" title="Sydney executive rentals stung by Living Away from Home Allowance reform.">Sydney executive rentals stung by Living Away from Home Allowance reform.</a> An idiotic decision that punishes business simply because our elected government is marred by reckless spending deficiencies – decisions are made solely on re-election not economic competence.
Fascinating that 12 months ago, <a target="_blank" href="/news">Mosman </a>houses and apartments reached their peak numbers for 2011. The same can’t be said for 2012, with house listings down 32% from 365 days ago. For property voyeurs, this clearly indicates a strong market and it will be interesting to see whether  the house numbers fall below 100. In 2011, Mosman recorded 38 weeks with house volumes below 100, the lowest recording being just 78.
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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Yellow Brick Road likely to be the first to respond to the next RBA rate cut

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It’s becoming more obvious that Australian politics is nothing more than smoke and mirrors. Fort Fumble this week released its <a title="Asian Century" href="https://asiancentury.dpmc.gov.au/" target="_blank">Asian Century</a> white paper. Australian business leaders doubt the government has the determination or resources to carry out the ambitious proposals – <a title="flat reception for white paper." href="https://www.smh.com.au/business/flat-reception-for-white-paper-20121029-28dsr" target="_blank">flat reception for white paper.</a> Alan Kohler wrote on Business Spectator <a title="White paper, wish paper " href="https://www.businessspectator.com.au/bs.nsf/Article/Australian-in-the-Asian-Century-white-paper-pd20121029-ZHRJS?OpenDocument&amp;emcontent_Kohler" target="_blank">White paper, wish paper</a>: "Reading the white paper called “Australia in the Asian Century” is a very surprising and uplifting experience: it lists all these wonderful things that are going to happen to our nation by 2025. I had no idea."
I did read the white paper, which took me back to the <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 last quarter the CEO scorecard for the government’s performance in managing the economy was steady at 2.9 out of 10.
Remember the aim of past Treasury secretary Ken Henry’s tax review was to have a root-and-branch look at the Australian tax system by designing something that would/should position Australia to best deal with the challenges that lie ahead? History shows that next to nothing eventuated from the proposals so I believe my cynicism is well founded. Australia’s governments are not in a financial position to fund such far-fetched, imaginary proposals.
I’ll keep harping on because I believe Australia’s infrastructure problems have now reached diabolical proportions simply because we can’t afford to fund progress.
<a title="Future Fund not an infrastructure dump ground: Costello " href="https://www.businessspectator.com.au/bs.nsf/Article/Future-Fund-not-an-infrastructure-dump-ground-Cost-pd20121026-ZFQH2?OpenDocument&amp;src=mp" target="_blank">Future Fund not an infrastructure dump ground: Costello </a>which is a very fair assessment – it should not be used as a “dropping pond” for bad assets. Biggest embarrassment of the week <a title="$1b error: NSW swings from deficit to surplus " href="https://www.smh.com.au/nsw/1b-error-nsw-swings-from-deficit-to-surplus-20121031-28j8s" target="_blank">$1billion error: NSW swings from deficit to surplus </a>– hello! Only incompetent fools could make such an embarrassing error.
This takes me to the best article of the week (in my opinion) by Robert Gottliebsen – <a title="Removing the bloat from the public service." href="https://www.businessspectator.com.au/bs.nsf/Article/Removing-the-bloat-from-the-public-service-pd20121030-ZJS22?OpenDocument&amp;src=mp" target="_blank">Removing the bloat from the public service.</a> “Today’s graphs from Accenture should scare every Australian. We can’t even contemplate being a leader in Asia until we tackle the abysmal state of our federal, state and local public services. The inefficiency and waste in these public services is sucking Australia dry and Accenture warn that unless we do something about it, our ageing population means that Australia faces a grim future funding squeeze.”
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Two weeks ago we reported that the number of Mosman houses on the market was 22% down on this time last year. Last week brought a slight increase to 23%, this week it has climbed to 27%. We still predict this figure will jump as high as 35% in coming weeks.
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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Australia's infrastructure problems have reached diabolical proportions

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Without a shadow of a doubt (in my opinion) the best critique of the Australian economy is the Business Spectator <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/full-coverage?openview&amp;restricttocategory=ceo+pulse" title="CEO pulse">CEO pulse</a>, where on a quarterly basis Australia’s leading chief executives deliver their (not sugar -oated) thoughts on just exactly how they see the Australian economy. CEOs on the Australian Economy:
<ul>
<li>CEO(s) remain far more optimistic about the prospects for their own organisation than they are about the Australian economy. Optimism about prospects for the Australian economy and their own organisations in the next 12 months have decreased slightly compared with quarter two this year and quarter three last year.</li>
<li>Expectations around employment, capital investment, profit, sales and operating expenditure in the next 12 months are down slightly from last quarter. The proportion of CEOs expecting increased profit over the next 12 months is down significantly to 49% from 64% last quarter.</li>
<li>CEO scorecard for the government’s performance in managing the economy is steady at 2.9 out of 10. While the longer-term trend is downwards, it is not significantly different from the score given at the same time last year.</li>
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Look at this how you want, however when a government can’t even reach a score of three out of 10 the resonating message is pretty clear. In February 2010, the scorecard peaked at 5.4 out of 10, and this has continued in a downward spiral reaching 2.6 out of 10 in September 2011.
Quote of the Week would have to go to Peter Costello, “Never in budget has history so little been promised so many times.” <a target="_blank" href="https://www.smh.com.au/opinion/politics/on-its-own-measures-labor-falls-well-short-20121023-283af" title="On its own measure Labor falls well short">On its own measure Labor falls well short</a>, an interesting assessment from a previous treasurer, who delivered 12 budgets. <a target="_blank" href="https://afr.com/p/national/swan_grip_on_surplus_gets_slippery_DtZ0lTolFYAQfrBR9Wh2SP" title="Swan’s grip on surplus gets slippery">Swan’s grip on surplus gets slippery</a>, which is exactly what we alluded to a few weeks ago when we suggested <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/Australia-budget-surplus-government-MYEFO-pd20121024-ZCTTM?OpenDocument&amp;src=sph&amp;src=rot" title="prepare for an early election">prepare for an early election</a>. Not surprising then are this week’s revelations that Wayne Swan and Julia Gillard’s MRRT has thus far posted a zero return. Obviously, the "big three" mining companies have executed the perfect sting on the government when they sat down to negotiate the MRRT.
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I love reading articles about the top-end property market – <a target="_blank" href="https://afr.com/p/blogs/christopher_joye/homeowners_confident_but_luxury_qkiXQ9ualbS7z2z8EX7neP" title="Homeowners confident but luxury market loses lustre.">Home owners confident but luxury market loses lustre.</a> A great read by Christopher Joye, which clearly identifies that NSW remains the most bullish top-end market in Australia. <a href="/news">Mosman</a> is arguably performing the best of Australia’s entire top-end suburbs, with reports our office has posted another double-digit sale getting stronger and stronger. When property markets are in a downward correction mode, the top-end gets punished the most, but when it starts to recover it always posts the fastest capital appreciation. Historically, top-end property markets perform at optimum levels when a Liberal government is in power, so we sense a hedging of bets on the basis that Australia will go to the polls in March 2013.
Last week we reported that the number of Mosman houses on the market was 22% down on this time last year, this week a slight increase to 23%. We predict this number will jump significantly in coming weeks to approximately 40%.  For example: <a target="_blank" href="https://www.rwm.com.au/140207/" title="45 Shadforth Street Mosman">45 Shadforth Street Mosman</a> sold in just one week – with a one-week settlement.
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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Mosman performing best of Australia's top-end property markets

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If you reside in NSW, you’d be excused for shaking your head in total disbelief. Not a case of where did they get the money for that? Rather, why is there no money for that? <a title="Public transport better in Mumbai than Sydney: PwC report" href="https://www.smh.com.au/nsw/transport-and-infrastructure-better-in-mumbai-than-sydney-pwc-report-20121015-27m08" target="_blank">Public transport better in Mumbai than Sydney: PwC report</a> Sydney ranks number four on the list of ‘worst major cities in the world for public transport’. Yet, <a title="Sydney the second most expensive city in the world " href="https://www.heraldsun.com.au/money/sydney-worlds-second-most-expensive-city-in-the-world/story-e6frfh5f-1226495524501" target="_blank">Sydney is the second most expensive city in the world, </a>which all sounds a bit rich (no pun intended) and for the record, Tokyo is the most expensive city in the world. If you look closely at NSW infrastructure, the general rule of thumb is that it is now 20 years behind best practice. So where then did all those billions of tax dollars go?
<a title="ousing shortage in NSW to reach 140,000 in four years" href="https://news.domain.com.au/domain/real-estate-news/nsw-needs-140000-new-homes-in-four-years-minister-20121015-27mi7" target="_blank">Housing shortage in NSW to reach 140,000 in four years</a>, which would explain statistics that show 30 percent of NSW dwellings are now rented. This just happens to be the highest recorded figure since 1958. Figures from RP Data show new rental listings dropped from 45,365 in the four weeks ending September 9 to 34,591 in the four weeks ending October 7. <a title="Rental listings down in every state in past month: RP Data" href="/news" target="_blank">Rental listings down in every state in past month: RP Data</a> NSW dropped from 12,390 to 9,018 – the figure was 11,560 this time last year.
Let’s be honest here – governments are not that smart. It’s almost impossible to entice property developers in NSW when Mumbai offers better transport than NSW. While <a title="Sydney on top of the property rich list " href="https://www.smh.com.au/business/property/sydney-tops-property-rich-list-20121011-27f56" target="_blank">Sydney is on top of the property rich list </a>with 19 of Australia’s most expensive 25 suburbs, they don’t really rely on public transport. It should be noted that <a title="Canberra’s big balancing act could hit negative gearing" href="https://www.smh.com.au/business/canberras-big-balancing-act-could-hit-negative-gearing-20121011-27fj4" target="_blank">Canberra’s big balancing act could hit negative gearing</a>. Should this happen and investors bail, our rents will skyrocket. Real estate markets need investors as do the third of Australians who are currently in rental accommodation.
<a title="Housing demand on the rise as population growth at highest rate in three years: Tim Lawless " href="https://www.propertyobserver.com.au/demographics/housing-demand-on-the-rise-as-population-growth-at-highest-rate-in-three-years-tim-lawless/2012101457076" target="_blank">Housing demand on the rise as population growth at highest rate in three years: Tim Lawless</a>,which is a compound property dilemma considering our record low interest rates will (not could) create a ‘mini-Sydney’ property boom. Rents are escalating at the highest rate and that in turn drives new purchasers into the marketplace – even though they may not want to be there. <a title="Adding air to a housing bubble" href="https://www.businessspectator.com.au/bs.nsf/Article/property-housing-equities-interest-rates-home-lend-pd20121017-Z5REL?opendocument&amp;src=rss" target="_blank">This could add air to a housing bubble</a>. Forget the global financial crisis. The ineptitude of Australian governments could well deliver a recession identical to that of the early 1990s.
Two graphs I grabbed this week identify the problems Australia faces.
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The Mosman housing market is going from strength to strength and Mosman houses today are 22% down on the numbers offered this week last year. I predict that over the coming weeks, this figure will climb as high as 40%. Heaven forbid: after years of that horrible GFC, we are now seeing a vendors’ market for houses. Who would have thought?
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 housing market going from strength to strength

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<a title="What if the GFC is permanent?" href="https://www.smh.com.au/business/what-if-the-gfc-is-permanent-20121005-273ch" target="_blank">What if the GFC is permanent?</a> Well, permanent is a tad over the top, although I do agree with IMF chief economist “that the world would not recover from the financial crisis until at least 2018”. When we look at our home front today, we see <a title="Australia’s growth straight jacket" href="https://www.smh.com.au/business/australias-growth-straight-jacket-20121010-27c0m" target="_blank">Australia’s growth straight jacket</a> given the peaking of the mining boom and historically low interest rates, which will result in increased debt in our housing markets. There is no mistaking we are in an entirely new business world where unemployment will increase as businesses engage and employ cheaper alternatives via the internet.
A classic example <a title="service sector crunched as jobs go overseas " href="https://www.smh.com.au/business/service-sector-crunched-as-jobs-go-overseas-20121009-27aet" target="_blank">service sector crunched as jobs go overseas </a>– over the last four years, 80,000 service sector jobs have left our shores. Thanks to the internet, businesses are faced with re-inventing themselves in order to remain competitive. Once upon a time, all a business required was an effective business model; however today, this business model must be paralleled with the online model. Capturing consumers is now based on electronic ingenuity where the focus has moved to electronic media. Our means of communicating are no longer home grown as our society now communicates through imported overseas products – namely Google, Apple and Samsung.
<a title="Australia Post bows to online shopping revolution" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-11/post-office-smart-lockers-rolled-out-for-online-purchases/4306946" target="_blank">Australia Post bows to online shopping revolution</a> and is about to open hundreds of 24-hour a day parcel lockers where purchasers will be sent a PIN code that will enable them to retrieve their respective purchases at a time to suit and not have to queue at a Post Office.
Last week, I made comment that Australia should be charging GST on online purchases over $100. <a title="Australian retailers securing more of the online retail pie: CommBank" href="https://www.propertyobserver.com.au/retail/australian-retailers-securing-more-of-online-retail-pie-commbank/2012100857042" target="_blank">Australian retailers securing more of the online retail pie: CommBank</a>. “With the debate over online GST still raging, the CBA points out imposing GST on purchasers above $100 would hit 57% of online transactions, against 4%.”
The <a title="IMF warns recession risk ‘alarmingly high’" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-09/imf-lowers-growth-forecast/4302666" target="_blank">IMF warns recession risk ‘alarmingly high’</a>, which is fair comment, considering that world trading has slumped. The volume of goods being shipped around the world increased just 3.2%, after growth of 5.8% last year and 12.6% the previous year. Now we’re talking just businesses and not taking into account the vast majority of governments across the globe that are drowning in debt as they wallow in budget deficits.
A few weeks ago I suggested to Virtual Realty News subscribers that we will be going to the polls in March 2013 because I believe it would be suicide for the Gillard government to call an election after it delivers the 2013 budget fiasco. <a title="Why we need an early election" href="https://www.businessspectator.com.au/bs.nsf/Article/Labor-coalition-Liberal-March-election-MYEFO-pd20121011-YXSSU?OpenDocument&amp;src=mp" target="_blank">Why we need an early election</a> “two rumours have been aired in the past week that one can only hope are true – that the midyear economic and fiscal outlook (MYEFO) will be released earlier than usual, and that a snap election will be held in March of next year. Both these decisions are made by the government, and the ring of truth to the rumours stems from the fact that without these decisions being taken, Labor is likely finished.” Remember where you read it first.
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<a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-04/janda-house-boom/4293828" title="As the mining boom ends, the housing boom begins ">As the mining boom ends, the housing boom begins </a>so in conjunction with a record-low cash rate (which possibly go lower) throw in yet another first-home buyer scheme. On October 1, NSW introduced a package of measures aimed at delivering around $35,000 to first-home buyers of new dwellings priced at or under $550,000. With new construction collapsing in recent years, incentive bribes to purchase new properties are dangerous, when history shows it is much like buying a new car – drive it from the showroom and it depreciates 20%. Australia will have a cash rate of 3% forever.
Now we are seeing <a target="_blank" href="https://www.propertyobserver.com.au/residential/home-buying-sentiment-surges-to-highest-level-in-three-years-westpac-melbourne-institute-index/2012100957068" title="home buying sentiment surges to highest level in three years: Westpac Melbourne Institute Index">home buying sentiment surges to highest level in three years: Westpac Melbourne Institute Index</a>, which also coincides with investors leaving the ‘shock’ market rising <a target="_blank" href="https://www.propertyobserver.com.au/landlords/rising-rental-yields-to-draw-investors-back-into-housing-market-rba-deputy-governor-philip-lowe/2012100957062" title="rental yields to draw investors back to housing.">rental yields to draw investors back to housing.</a> Again on the flip side, we are observing <a target="_blank" href="https://smh.domain.com.au/real-estate-news/record-in-high-house-rents-could-force-families-into-flats-20121010-27dl5" title="record in high house rents could force families into flats">record in high house rents could force families into flats</a>, which is a classic case of governments telling constituents what they are doing internationally. What about <a target="_blank" href="https://www.propertyobserver.com.au/landlords/rent-rises-to-outpace-house-price-growth-over-next-two-years-nab/2012101157090" title="rent rises to outpace house growth over next two years: NAB.">rent rises to outpace house growth over next two years: NAB.</a>
Once upon a time it was all about home grown. Australia has enormous housing issues, yet our leaders are more intent on debating sexism, text messages, speeches and prostitution on social media.
Australia’s politicians are more concerned about re-election and distractions via social media and are not addressing the hard (real) social issues that confront our country.
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Good news for Mosman sellers as stock levels are well down on volumes compared with this time last year. School holidays are now over, and it is somewhat surprising to see a minimal increase in the number of houses on the market in Mosman this week. Unlike many other markets, Mosman appears to have very little interest in selling.
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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Government bribes for first-home buyers to buy new properties are dangerous

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If there is one thing we have learned in 2012, it is that political parties from both sides will say and do anything to win an election, no matter what the consequences. If we are to learn just one thing from the global financial crisis, we must focus on one word – DEBT. What made the GFC even more contagious was government debt. So why do households and businesses react differently to governments when confronted with the same financial woes?
<a title="The debt we can’t pay is growing" href="https://www.businessspectator.com.au/bs.nsf/Article/David-Murray-Future-Fund-super-superannuation-Gill-pd20121004-YQUDS?OpenDocument&amp;src=sph" target="_blank">The debt we can’t pay is growing</a> a fascinating insight from Rob Burgess on Business Spectator, where he correctly refers not to an economist or business writer but the former head of the Future Fund, David Murray. Mindful of the fact that Commonwealth net debt is only 9.6% of GDP, combined state and federal debt is now around 29% of GDP. This quickly brought a rebuke from <a title=" Prime Minister - Comparing the Greek economy to Australia is ‘absurd’." href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-04/comparing-greek-economy-to-australia27s-is-27absurd27/4295674" target="_blank">Prime Minister – Comparing the Greek economy to Australia is ‘absurd’.</a>
Enter David Murray again, who believes “it is easily possible for Australia to suffer an economic downturn similar in magnitude to the one experienced by Greece”. The problem for the Gillard government is that its own debt continues to far exceed income and ignorantly, it refuses to cut its own overheads. On the other hand, businesses have cut costs, which explains why tax receipts are down and Australia finds itself in a state of hypocrisy. Let’s join those dots again.
This week we saw the Reserve Bank of Australia (RBA) lower the cash rate to 3.25% from 3.5%. A call to the cavalry – let the real estate market steer the economy to bigger and better things. Although – <a title="The RBA’s interest rate kryptonite" href="https://www.businessspectator.com.au/bs.nsf/Article/rates-RBA-China-slowdown-interest-Stevens-pd20121003-YPSKB?OpenDocument&amp;src=sph&amp;src=rot" target="_blank">The RBA’s interest rate kryptonite</a> “it is now clear that the Chinese comeback that prompted the RBA to raise the interest rate six times between October 2009 and May 2010, and then again in November 2010, was unsustainable. That 1.75 percentage point increase in the cash rate in 2009 – 10, while the Fed, the Bank of England, and the ECB and the Bank of Japan all left their rates on hold, helped lift the Australian dollar from 65 cents in early 2009 to 110 cents last year. The increase in lending rates for households and businesses knocked the stuffing out of the Australian economy”.
So here we go again, throw more lollies onto the highway and see who runs out to grab them.
<img src="/images/stories/2012/10/simeonoct91.jpg" width="470">
The correct unemployment rate in <a target="_blank" href="https://www.whocrashedtheeconomy.com/blog/2012/10/unemployment-hits-10/" title="Australia unemployment hits 10% ">Australia unemployment hits 10%, </a>which is almost double the Australian Bureau of Statistics’ (ABS) unemployment rate. The irony is, that businesses have corrected their profitability yet the federal government refuses to move with the times. This would also explain why the newly elected Queensland, NSW and Victoria governments are tightening their belts – <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/States-face-GST-squeeze-SP-pd20121004-YQU6A?OpenDocument&amp;src=hp30" title="States face GST squeeze: S&amp;P.">States face GST squeeze: S&amp;P.</a> <img src="/images/stories/2012/10/simeonoct92.jpg" width="470">
If the federal government were half smart (and our pollies are not) it would immediately bring GST into online sales above $50 (presently above $1,000). It won’t happen because the federal government is more concerned about losing votes with an election looming. When the GST was introduced in 2000 computers (online) were not even a consideration. Times have changed, yet our federal government won’t change!
The good news for vendors on the home front as our markets move from a purchasers’ market to a vendors’ market. Certainly another cash rate reduction will only further ignite the property markets. Having said that <a title="rate cuts shows Reserve Bank’s sober view of global economy" href="https://www.smh.com.au/business/rate-cut-shows-reserve-banks-sober-view-of-global-economy-20121002-26xdr" target="_blank">rate cuts shows Reserve Bank’s sober view of global economy</a> although it must be noted <a title="lower rates risk fuelling bubbles: ANZ" href="https://www.smh.com.au/business/the-economy/lower-rates-risk-fuelling-bubbles-anz-20121004-270qb" target="_blank">lower rates risk fuelling bubbles: ANZ</a> – a possibility, however, a tad early to call.
I believe our market is too smart to fall into that trap.
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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RBA's rate cut a call to the real estate cavalry

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I may have been deeply buried (surprise, surprise) when the Interactive Advertising Bureau (IAB) reported online advertising for the 2011-12 financial year had reached $3.14 billion, eclipsing the previous record by more than $549 million. The 21% jump also included $47.4 million in mobile advertising, which the IAB reported for the first time. <a title="Online ad spend jumps to $3bn" href="https://www.theaustralian.com.au/media/monday-section/online-ad-spend-jumps-to-3bn/story-fna1k39o-1226448698058" target="_blank">Online ad spend jumps to $3 billion</a> – other predictions are that online advertising will surpass television spending within 12 months, and print (the largest sector) will be eclipsed in 2014. Just five years ago, the breakdown in print to online spends was approximately 75% (print) and 25% (online).
<a title="Online advertising industry breaks through the $3b barrier with growth across all categories" href="https://www.iabaustralia.com.au/index.php?/news/story/online_advertising_industry_breaks_through_all_categories02" target="_blank">Online advertising industry breaks through the $3 billion barrier with growth across all categories</a>, which is an amazing achievement that demonstrates how quickly online is now dominating our markets. This month Google celebrated its 14th birthday which is all the more amazing given the role it plays in our day-to-day lives. I believed it was important to drill down to find the accelerant that ignited this online tsunami which I believe started on April 3, 2010, when Apple Inc released its brilliant tablet computer, otherwise known as the first generation iPad.
It is interesting to note that Apple Inc sold 3.27 million iPads in the third quarter of 2010, 4.19 million in the fourth quarter of 2010, 7.33 million in the first quarter of 2011, 4.69 million in the second quarter of 2011, 9.25 million in the third quarter of 2011, 11.12 million in quarter four 2011, 15.3 million in quareter one 2012, 11.80 million in the second quarter of 2012 and 17 million in the third quarter of 2012. This is phenomenal growth and also led the army of consumers to move from dumb phones to smartphones. In a nutshell, this translates into how our economies have now embraced technologies, which in turn will result in newspapers moving sooner rather than later into digital formats only.
Steve Maraboli said “As a business leader you have to ask yourself, am I creating a consumer environment that is conducive to loyalty? If the answer is no, FIX IT!”
It has been a while, although it was always going to happen. <a title="house prices to surge 15% by late 2013 as rates fall 100 basis points: Australian Financial Reviews David Bassanese" href="https://www.propertyobserver.com.au/residential/house-prices-to-surge-15-by-late-2013-as-rates-fall-100-basis-points-australian-financial-reviews-david-bassanese/2012092456754" target="_blank">House prices are set to surge 15% by late 2013 as rates fall 100 basis points, says the Australian Financial Review's David Bassanese</a>, which is a pretty fair assumption given <a title="Australian House prices surge in September." href="https://afr.com/f/free/blogs/christopher_joye/australian_house_prices_surge_in_vXMdu05e75yB7GJcaDWkcO" target="_blank">Australian house prices surged in September.</a>
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Australia (on the global property stage) has witnessed <a target="_blank" href="https://www.smh.com.au/business/banking-and-finance/borrowers-in-a-hurry-to-pay-off-mortgages-20120925-26ilm" title="borrowers in a hurry to pay off mortgages ">borrowers in a hurry to pay off mortgages, </a>the Reserve Bank of Australia (RBA) has found. Around half of all borrowers are ahead on mortgage payments. In total, the RBA estimated mortgage prepayment buffers in Australia were equivalent to around one and a half years ahead of scheduled repayments based on current interest rates. I don’t believe the RBA will cut the cash rate when it meets this week, although it was interesting to read <a target="_blank" href="/news" title="South – west Sydney mortgage borrowers lead RBA’s 15 most vulnerable localities.">South-west Sydney mortgage borrowers lead the RBA’s 15 most vulnerable localities.</a> <img src="/images/stories/2012/09/rbasept25.gif">
As we predicted the number of properties available is starting to subside, and this will continue until mid-October, when the market embarks on the final run to Christmas. Yes, Christmas.
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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Aussie borrowers in a hurry to pay off mortgages, and number of properties on the market subsides

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Take a snapshot (pun intended) of your business today – now think five years ahead and consider the very real possibility that more than half of small businesses will cease to exist as we know them today.
Five years ago in Virtual Realty News I predicted that David Jones and Myer would struggle to exist in 10 years’ time. The online tsunami has now ventured into fever pitch and it’s only going to get worse for the non-believers. Keep joining the dots and you will eventually join the chorus.
Online shopping is cheaper for consumers but much more expensive for the businesses marketing products because they now have to roll out state-of-the-art online platforms. <a target="_blank" href="https://www.smh.com.au/business/economy-is-better-off-with-digital-disruption-20120916-260b2" title="Economy is better off with digital disruption">Economy is better off with digital disruption</a>– “Instead, they show how established businesses facing huge technological change can get in all sorts of traps – thanks to something known as the 'innovators' dilemma'. The idea was developed in the 1990s by an American business guru, Clayton Christensen. In a nutshell, it explains why large companies often struggle to deal with revolutionary changes in technology.”
The simple reason is that in their ignorance, they just don’t understand.
“It goes a long way to understanding why so many companies at the sharp end of the digital revolution – media and retail in particular – are going through such upheavals. It’s also a lot more helpful than much of the public discussion of companies’ handling of technological change, which often falls into one of two categories. On the one hand, companies that innovate successfully are often surrounded by a type of mythology, with much of the credit going to an ambitious or brilliant chief executive.
"The popular tale of Apple’s late boss, Steve Jobs, seems to fit this mould. At the other end of the spectrum, there are the stories of the stubborn failure to change. When Kodak filed for bankruptcy this year, for instance, the narrative was that it refused to embrace digital cameras until it was too late.”
The real estate industry is now facing that “Kodak moment” – where I believe at least a third of agencies in Australia will be forced to close. How? <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/Key-Fairfax-publications-digital-only-by-2019-repo-pd20120912-Y2SUW?opendocument&amp;src=rss" title="Key Fairfax publications ‘digital only’ by 2019: analysts ">Key Fairfax publications ‘digital only’ by 2019: analysts</a> Commonwealth Bank of Australia analysts said in a report that, while some will cut sooner, titles including The Sydney Morning Herald, The Age and The Canberra Times will be “digital only” by 2019.
I believe this will happen much sooner given the huge debt that Fairfax Media is carrying. Which explains why the rumour mill is now running amok – <a target="_blank" href="https://www.theaustralian.com.au/media/fairfax-the-age-is-not-for-sale/story-e6frg996-1226477407061" title="Fairfax: The Age is not for sale.">Fairfax: The Age is not for sale.</a>
Real estate agencies have been judged by their print presence so what happens when this presence no longer exists? It’s very simple: they will be judged by their online presence, although those eyeballs were driven to their websites thanks to print media combined with online email alerts.
Real estate businesses have been totally dependent on print advertising (vendor paid) to promote their businesses – now the onus will be on the respective agencies to entice new business through their online models.
 
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It has been a long time coming given Richardson &amp; Wrench Mosman/Neutral Bay (RWM) was the first single agency to send out an email alert back in September 2000 and the only Australian agency to post over $1 billion in database sales.
We, like many other real estate agencies, are working on that new online model, which will cost six figures and upwards. The survival stakes for avoiding that “Kodak moment” within the real estate industry is set to sky rocket!
All I can say is, watch this space. I have been waiting impatiently for over a decade for this moment to arrive, when real estate agencies will have to completely re-think their marketing strategies. A case of do or die.
IT and video production will be the star performers over the next five years, as will the .tv websites, all of which RWM will be rolling out over the next six months (otherwise known as life after print advertising).
The next phase of real estate advertising will see the agents paying for it – not the vendors. The leading real estate agencies will offset these costs from third-party local advertising.
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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The real estate industry is facing its 'Kodak moment' and must embrace digital media or die

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I’m not sure about you, but it seems to me here we are in 2012 and every government in Australia is crying poor. Without drilling too deep, the common denominator is usually bad management and policies. So why are they stone motherless broke?
In fairness, it is not unique to Australia, it is a worldwide epidemic. Why is it that we have in our businesses and homes state-of-the-art technologies with the world’s highest electricity prices? This reminds me of the saying “politicians and nappies have one thing in common – both need to be changed regularly, and for the same reason”. Best practice is replaced with best guess where budgets are premised on a wing and a prayer.
<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/State-budgets-may-face-deficits-on-falling-commodi-pd20120903-XRRUL?OpenDocument" title="State budgets face deficits on commodity prices">State budgets face deficits on commodity prices</a> the WA and Queensland budgets could be thrown into deficit to the tune of nearly $2 billion dollars as falling commodity prices hit their resources dependent economies. <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/mining-royalties-queensland-coal-jac-nasser-gottli-pd20120913-Y3T6T?opendocument&amp;src=rss" title="The lies that blind and mining suffers ">The lies that blind and mining suffers </a>– “When is the duty of a state premier, or any leading minister, to tell the public the whole truth?” All we see with mining companies is the government's now taxing the bejesus out of them, so little wonder that pipeline of investment starts to be scaled down. Australia's politicians now find themselves in the position where <a target="_blank" href="https://www.smh.com.au/opinion/politics/promises-promises-now-its-time-to-do-the-sums-20120907-25jc6" title=" promises, promises, now it’s time to do the sums.">after the promises, now it’s time to do the sums.</a>
<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/Businesses-furious-over-govt-cuts-to-tax-breaks-pd20120907-XWR2Y?opendocument&amp;src=rss" title="Businesses furious over govt cuts to tax breaks">Businesses are furious over government cuts to tax breaks</a>. Corporate Australia has reportedly been told (despite its protests), Labor is planning to go ahead with cuts to tax breaks and incentives worth a total of $6 billion to help achieve budget tax savings. The federal budget has, collapsed which would explain why <a target="_blank" href="https://www.smh.com.au/opinion/political-news/poll-position-gillard-arms-labor-for-early-election-with-new-committee-20120904-25cor" title="Poll position: Gillard arms Labor for early election with new committee">Gillard is arming Labor for early election with new committee</a>, and the word on the street is a March election. The Gillard government won’t go to the polls after the May budget in 2013 due to a massive blow-out! <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/iron-ore-boom-federal-budget-Swan-China-GFC-pd20120910-XYRQH?opendocument&amp;src=rss" title="The bust that Swan didn’t see,">This is the bust that Swan didn’t see,</a> and remember where you heard it first!
{yoogallery src=[images/stories/2012/09/sept12altona]}
In real estate talk Altona (pictured above) is spoken as Australia’s premier property given its amazing pedigree.<a target="_blank" href="https://www.propertyobserver.com.au/news/altona-the-point-piper-harboufront-officially-listed-at-%24us569-million/2012091156517" title="Altona, the Point Piper harbour front, officially listed at $US56.9 million">Altona, the Point Piper harbourfront, has been  officially listed at $US56.9 million</a>, which is an amazing revelation or one huge faux pas on behalf by one listing agent, considering that up until now, the asking price has been somewhat of an industry secret.
Shock horror – <a target="_blank" href="https://www.propertyobserver.com.au/residential/residential-property-capital-growth-has-stalled-in-five-years-since-gfc-rp-data-s-cameron-kusher/2012091056482" title="residential property capital growth has stalled in five years since GFC: RP Data’s Cameron Kusher.">residential property capital growth has stalled in five years since GFC, says RP Data’s Cameron Kusher.</a> Apart from the economic factors, the slowdown in capital gains can also be attributed to the fact that consumers have increased their level of savings and have subsequently reduced their levels of spending (particularly for housing).
<img src="/images/stories/2012/09/capscombined.gif">
<a target="_blank" href="https://www.propertyobserver.com.au/land/unit-starts-boost-residential-construction-in-june-quarter-but-house-starts-fall-to-11-year-low-abs/2012091256526" title="Unit starts boost residential construction in June quarter but house starts fall to 11 – year low">Unit starts boosted residential construction in June quarter, but house starts fell to 11-year low</a>. There has been absolutely no government enquiry (to date) as to why. The pressure test for the top-end Sydney markets were dumbfounded this week when <a target="_blank" href="https://www.propertyobserver.com.au/developments/pacific-bondi-beach-buyers-riding-the-property-wave-through-to-the-2015-tide/2012090956465" title="Pacific Bondi Beach buyers riding the property wave through to the 2015 tide ">Pacific Bondi Beach buyers riding the property wave through to the 2015 tide, </a>where the first release (last weekend) resulted in 74 of the 76 apartments selling for the asking prices. The sales ranged from one-bedroom apartments for $1.9 million (70 square metres) to penthouses for $10.3 million. These are boom market results, although I agree with BIS Shrapnel's Frank Gelber that <a target="_blank" href="https://www.propertyobserver.com.au/residential/new-housing-construction-recovery-a-year-off-and-will-be-uneven-bis-shrapnel-s-frank-gelber/2012091356557" title="new housing construction recovery a year off and will be uneven: BIS Shrapnel’s Frank Gelber">new housing construction recovery a year off and will be uneven</a>.
<a target="_blank" href="https://www.propertyobserver.com.au/economy/with-interest-rates-and-unemployment-low-there-are-economic-positive-signs-all-around-mark-bouris/2012090956456" title="With interest rates and unemployment low, there are economic positive signs all around: Mark Bouris ">With interest rates and unemployment low, there are economic positive signs all around, says YBR's Mark Bouris,</a> which leads me to explain why. There is too much emphasis on what the Reserve Bank of Australia (RBA) does with the cash rate. Interest rates should be organically controlled through completion. This week, the home loans war got angrier when ME Bank cut its three-year rate to 5.39%, which is about 0.5 percentage points below the major banks. No RBA intervention because the bank knows rates will go a lot lower. ME Bank left the first clue – without RBA intervention.
The Mosman September marketing campaigns conclude over the next week (from Saturday) before the school holidays commence (again). If I’m reading the market correctly, the 120 houses on the market this week should start reducing.
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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Governments crying poor, some booming – if uneven – results in the housing market

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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