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Not much more can be said about Steve Jobs – he was the man who invented the future. He allowed consumers to move into the digital world where today we as individuals and businesses are much better off for that experience. One quote really stood out in my mind “Jobs concerned himself with making computers work the way people expected them to rather than making people learn how the computer wanted them to work.”
We marvelled at his creations: the MacBook, the iPod, the iPhone and the iPad – never before have we see such technologies that would change the way we conduct our day-to-day business. One only has to drive by a bus stop, or observe the day-to-day behaviours on a train platform in peak hour, where his legacies are connected in some shape or form to us every day, and we’re addicted.
Rupert Murdoch once said, “The internet has been the most fundamental change during my lifetime and for hundreds of years. Someone the other day said, ‘It’s the biggest thing since Guttenberg.’ And then someone else said, ‘No, it’s the biggest thing since the invention of writing’.”
In May this year Google broke the all time online record of reaching 1 billion in that month. Comscore, which collates this data, recorded that Google’s sites rose by 8.4% from 931 million (in May 2010) to just over a billion – 1,009,699,000.
In Australia our online trending is also changing – the Australian Bureau of Statistics released the latest June 2011 internet activity revealing that for the first time wireless is more popular than copper as the most preferred form of broadband in Australia.
<img src="/images/stories/simeonoct10.jpg">
At the end of June 2011, there were 10.9 million internet subscribers in Australia (excluding internet connections through mobile handsets). This represents annual growth of 14.8% and an increase of 4.4% since the end of December 2010. 
The phasing-out of dial-up continued, with 95% of internet connections being broadband.
Australians continued to access increasingly faster download speeds, with 87% of access connections offering a download speed of 1.5 Mbps or greater.
Mobile wireless internet (excluding mobile handset) connections (44%) now exceed Digital Subscriber Line (DSL) connections (41%) in Australia. Mobile wireless (excluding mobile handset connections) was the fastest-growing internet access technology in actual numbers, increasing from 4.2 million in December 2010 to 4.8 million in June 2011.
Overall, the number of Australians using some form of fixed-line service for their broadband connections remained just ahead of wireless once cable services were included.
It is becoming most obvious that we feel the need for speed, with Telstra just announcing its new mobile broadband network 4G. Unfortunately it is only available in capital cities, airports and some regional areas – those outside will have to stick with the 3G. Download speeds on the new network fluctuates from 2 megabits per second (Mbps) to 40 Mbps, which is 25 times faster than the previous speeds available on the 3G network. The number of consumer subscriptions for wireless and modem broadband jumped from 6.7 million to 9.6 million for the year to June 2011. Again wireless was the star performer with subscriptions jumping from 6.7 million to 9.6 million in 12 months.
This trending makes it difficult to see how the NBN Co will ever be able to break even (it requires a 71% consumer subscription to break even) for its fibre-optic installation costing taxpayers $49.5 billion.
Real estate businesses have benefited enormously from the Steve Jobs legacy, as the iPhone and iPad launches forced (most) real estate businesses to develop mobile and iPad websites so consumers could enjoy a happier experience. The most notable changes are that consumers have developed an increasing love for mobile phone apps and tablets (iPads), which explains why wireless has overtaken fixed line, and I can’t see this changing anytime soon.
The next big thing in the real estate world will be real estate agents and agencies engaging with their demographic markets on their very own .tv channels (some in Australia have already started rolling out this platform). Steve Jobs’ vision was all about delivering the visual presentation by using online to electrify your audiences. 
Yes – Steve Jobs invented the future, where today real estate agencies are now expected to be media companies as well. The new online lifestyle is challenging everyone today – I hope that the Steve Jobs legacy will provide more clues on where we need to be heading and how we get there. For the real estate industry it is becoming very clear that video is now a must with agency and property presentations. 
We keep reading “Comparing a Steve Jobs presentation to most presentations is impossible — he’s in a league all his own. Apple’s chief executive is arguably the most charismatic pitchman in business today. His presentations are brilliant demonstrations of visual story telling that turn customers, employees, and the entire computer industry into evangelists.” 
We can only learn from the best.
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" 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 href="https://www.rwm.com.au/news/" target="_blank" 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

Steve Jobs legacy: Real estate agencies now media companies

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Andrew Wilkie backed the Gillard government on the proviso that it would support his poker machine legislation, which now looks like never seeing the light of day. Independents Tony Windsor and Rob Oakeshott wanted a tax summit, which was supposed to be convened by June 30, 2011 – (better late than never) it will now be held over October 4 and 5. The taxing topics for discussion are state taxes, business tax, personal tax, social and environmental taxes and governance of the tax system. The federal government ducked and weaved on whether the GST would be included in the discussions, as too the proposed mining tax.
Yet again the 135 recommendations contained in the Henry review will be regurgitated, although the government had previously rejected them all – or let’s say conveniently placed in the “too hard basket.” Henry noted in his review that “Australia has too many taxes and too many complicated ways of delivering multiple policy objectives through the tax transfer system.”  In a nutshell Henry suggested just four tax bases: personal income, business income, private consumption and economic rents from resources and land. For this to eventuate: payroll, stamp duty, insurance, superannuation contributions taxes and income taxes on all pensions, allowances and benefits would be abolished.
Windsor suggested that the GST should rise by 1% to allow 115 “inefficient” taxes to be abolished but let’s not forget that when that GST was introduced in 2000 the platform was these “inefficient” taxes would be abolished – that promise never saw the light of day. Mr Windsor and fellow crossbencher Tony Crook also called for the GST to be closely examined at next month’s forum given Treasury warnings that the tax has now become increasingly inefficient.
It is clearly evident today that consumers are taking advantage of the high Australian dollar and spending much more via online tax-free items. Back in 2000 the government could be excused for not embracing this conundrum, but a decade on consumers moved their retail consumption to online models where today, retail in Australia is struggling to survive given it simply can’t compete.
So why, does the GST still remain a notable absentee from the forum’s discussion papers? A tax forum for –um, nothing, it would appear.
It is inevitable that our GST rate will eventually be increased to probably 12.5% given New Zealand has lifted its rate from 10% to 12.5% and it is now 15%. Britain will move its GST to 20% from January 2012. Lifting the GST to 12.5% would raise an extra $12 billion, climbing to $15 billion in three years’ time.
Treasury is forecasting exclusions from the GST this year to be $18.3 billion – of which $5.9 billion is because there is no GST on most food – and it reports that this will surge to $22.3 billion by 2013. As a direct result of these exclusions there is less available to the states and territories for crucial infrastructure spending – which is blatantly obvious today.
Australian Treasury head <a href="https://www.propertyobserver.com.au/tax/stamp-duty-still-unpopular-at-treasury-post-henry/2011092351665" target="_blank">Martin Parkinson has backed a move to wind back or abolish real estate stamp duties</a>. Parkinson noted that stamp duty (NSW property buyers paid $3.9 billion last year) makes buying and selling houses more expensive.  The Australian Housing and Urban Research Institute (AHURI) believes that by abolishing stamp duties in favour of a broad-based land tax – as suggested in the Henry review – would reduce land prices by up to 10%.
According to the National Housing Supply Council, Australia currently has a cumulative net shortfall of 200,000 dwellings (and growing annually). Housing in Australia this has become the biggest cost of living issue for Australians to such an extent that it is now a crisis – otherwise known as housing affordability.
In May this year the Australian government released a new national urban policy, Our Cities, Our Future to industry support. The only problem is this urban policy just like the Henry Review will also be filed in that congested too hard filing cabinet. In the last 10 years <a href="https://www.propertyobserver.com.au/residential/house-prices-outstrip-income-nearly-three-fold-affordable-housing-group/2011091951592" target="_blank">house prices have risen by 147% while incomes have risen by only 57%</a> and in the last five years rents have risen at twice the rate of inflation. In Sydney, it now takes 8.1 times the average income to afford the median house, up from 5.6 times in 2001.
Last week the Australians for Affordable Housing (AAH) reported that new home starts in NSW have plummeted 20.1%, which was worse than the 16.3% recorded earlier this year by flood-hit Queensland.
So I wouldn’t hold out for next week’s tax forum achieving anything so long as the GST is excluded from discussions.
Last week, an article in The Australian, “<a href="https://www.theaustralian.com.au/news/opinion/another-chance-on-tax-policy/story-e6frg71x-1226141172285" title="The Australian" target="_blank">Another chance on tax policy</a>”, noted: “The summit still looks like an exercise in tax reform avoidance rather than engagement with a policy area that is so central to prosperity.”
Yes – it is all for – um, nothing, just like the Henry Review was all for – um, nothing. But it will keep two independents happy and the government can’t afford that type of avoidance. 
Robert Simeon is a director of <a title="RWM" target="_blank" href="https://www.rwm.com.au/">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" target="_blank" href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Tax summit is much ado about nothing

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Finally some good news for NSW, with the newly elected government recognising that infrastructure spending is priority number one. For well over a decade infrastructure investment in NSW has all but been ignored, so last week’s budget announcement signals a much brighter future for an ailing NSW economy. Past governments have continually ignored that NSW was suffering from an inadequate supply of new homes, which in turn forced young families to relocate to other states in search of affordable housing and a better standard of living.
In the 2011-12 budget the government has committed $62.6 billion over the next four years, which they described as the biggest such commitment in the state’s history. A surplus of $292 million is forecast for 2012-13, and $156 million for 2013-14, with 2014-15 delivering a surplus of $152 million.
Finally NSW has an infrastructure map where not only the government but businesses and families can plan for their futures. All it took was an infrastructure vision.
Delivering his first budget Treasurer Mike Baird said: “A key part of rebuilding NSW is building the infrastructure our communities so desperately need. Nowhere in Labor’s infrastructure backlog felt more than in our hospitals which is why we have committed a record $1.08 billion to the health capital works program, along with $343 million set aside for new works.”
The budget invests $6.3 billion in infrastructure investment in roads and transport. Baird said: “The NSW government has increased spending on transport and roads infrastructure by nearly 10% on Labor’s last budget and we have invested more than $600 million on the northwest and southwest rail links. Since the election we have made good on our promise to fast-track the northwest rail link and today, we have backed those actions up with real money, with $314 million allocated this year to develop the line between Epping and Rouse Hill, including $222 million for land acquisition.”
Obviously this is a very expensive infrastructure spend, which explains the establishment of Infrastructure NSW, which has been set up to improve the way that infrastructure is assessed and delivered. Legislation has been passed to establish Restart NSW, the NSW Government’s key infrastructure fund of which one-third of all funding will be quarantined to deliver infrastructure in the regions.
The government has established Waratah Bonds, which are government-backed securities.  The aim is to attract the mum and dad investors, which is excellent timing given what’s currently happening to world financial markets. Instead of selling public assets, Sydney’s Port Botany shipping terminal will be leased for 99 years as will the desalination plant at Kurnell.
To kick-start the floundering construction industry <a href="https://www.propertyobserver.com.au/residential/nsw-scraps-stamp-duty-concessions-for-existing-homes-from-2012/2011090651441" target="_blank">the stamp duty exemption will be limited to newly built homes only</a> – as against the previous carrot for first home buyers where exemptions applied to all properties worth up to $600,000.
The last time Sydney had a big infrastructure announcement was back on September 23, 1993, when International Olympic Committee president Juan Antonio Samaranch announced from Monte Carlo that Sydney would be host for the 2000 Olympics. Our bid organisers budgeted $2.3 billion to run the Games, including $674 million on facilities and venues. In addition, the federal and NSW governments allocated $4.1 billion for transportation projects.
The $860 million makeover of Star City, which will now be called The Star, is Sydney’s first new five- star hotel since the Olympics which highlights the extent to which infrastructure in Sydney has frozen. I could add the Cross City and Lane Cove Tunnels which have turned out to be financial infrastructure disasters.
Finally, NSW has a structured infrastructure plan, and as they say in the movies, “I love it when a plan comes together.” Let’s hope that NSW becomes a box office hit again! 
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" 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 href="https://www.rwm.com.au/news/" target="_blank" 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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NSW infrastructure announcement a step in the right direction

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They’re at it again, yet another tax under the guise of the new green taxes for Australia. Little wonder governments at state and federal levels usually end up in Struggle Street when it comes to explaining the need for yet another new tax on property. It reminds me of a speech President George W. Bush made at a Gridiron dinner in 2001 when he said “you can fool some of the people all of the time, and those are the ones you need to concentrate on.”
As if a carbon tax is not enough to contend with, the federal government is proposing to introduce in 2012 a mandatory energy star rating for homes being sold or rented out. The Minister for Carbon Tax Greg Combet says “it will allow buyers and renters to better compare different properties, making it easier to identify a property which uses less energy or water and thereby save money.”
So vendors and landlords will have to pay around $200 to have their property assessed, the cost to home owners and property investors is approximately $1.1 billion over the next 10 years.
The Age reported last week Australian homes still the world’s biggest, and the latest figures show that the average new home built in Australia is still 10% bigger than its counterpart in the United States and 9% bigger in New Zealand. NSW still builds bigger houses than Northern Territory, Queensland then Victoria, at 246 square metres per residence. Maybe the Minister for Carbon Tax should watch the movie The Castle – “tell him he’s dreaming”. Australia currently has a dramatic shortage of housing evidenced by record low rental vacancy rates, which is driving up rents to all-time record highs. All an energy star rating for houses will achieve is a disincentive for investors, which contradicts the government’s affordable housing commitments.
To put this into perspective let me find another George W. Bush quote: “There’s a huge trust. I see it all the time when people come up to me and say, ‘I don’t want you to let me down again’.”
If there was a television show ‘Australia’s Dumbest Property Taxes’ the past NSW Labor government would be nominated for a Logie. A catastrophic government that resulted in annihilation at the March 2011 election, given its policy implementation was usually followed up with another backflip.
Let’s look at some of NSW’s worst property taxes (not in order of stupidity).
Premium Property Stamp Duty (still alive), where homes sold for more than $3 million will be taxed at 7% on the amount above $3 million. The Vendor Exit Tax, where investors were charged a 2.5% tax on the sale of investment properties (introduced 2004, axed 2005). The Premium Property Tax (abolished), where all properties with a land value above $1.97 million (including the family home) pay an annual speeding fine because their land value is increasing. The NSW Ad Valoreum Tax (introduced 2010 and abolished by the new Liberal government in 2011), a land transfer charge of 0.2% on sales between $500,000 and $1 million and 0.25% above $1 million.
In my opinion, state and territory governments have well and truly exceeded their use-by dates. When the Howard government introduced the GST in 2000, it was sold on the basis that the much-despised ongoing state stamp duties would be abolished. This has been obviously not the case given the much-awaited Henry Tax Review in 2009 was dismissed and placed into that politically convenient “too hard basket”. On August 19, Henry told an Economic Society forum in Sydney there was almost unanimous agreement submissions to his Australian Future Tax System  review that state-imposed stamp duties were bad and should be abolished.
Why, are property taxes charged as an upfront – when council and water rates are levied quarterly?
“I’ll be long gone before some smart person even figures out what happened inside the Oval Office.” – President George W. Bush, Washington, D.C., May 12,2008.
Sound familiar?
Remove local and state governments and bring in big business to drive infrastructure and make it accountable. Get superannuation funds to invest in Australia’s growth and development. Just because you own a property, propping up a government that struggles to make ends meet is a no-brainer.
Alternative business models would be very interesting to say the least – time to challenge Australia.
Robert Simeon is a director of <a title="RWM" target="_blank" href="https://www.rwm.com.au/">Richardson &amp; Wrench Mosman &amp; 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" target="_blank" href="https://www.rwm.com.au/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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Stupid property taxes should not be a revenue stream for weak governments

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Website developers in Australia have never been busier thanks to the insatiable consumer desire to shop online.
With the strong Australian dollar, local big-brand retailers have been caught asleep behind the counter given until recently online branding had been largely ignored. As a consequence, Australian retailers quickly observed significant drops in profits which have now prompted the battle of the homepage. Make no mistake: the online economy is booming with revenues increasing by up to 40% in 2010.
Apple recently reported that more than 15 billion applications have been downloaded for the iPhone, iPad and iPod Touch. Latest statistics show that in early 2010, about 25% of mobile phone users were shopping via their phones.
The online doubters now find themselves in a denial freefall given the total revenue from electronic payment systems in Australia was estimated at about $3.8 billion in 2010. When compared to 2009, virtual spending increased by 40% in 2010. The 2011 retailing results keep getting worse, and now they have been told that unless they quickly adapt, they will perish given consumers are sending out a clear message that their preference now is to shop online from home.
The latest findings by Macquarie Equities Research confirmed that 18% of shopping centre visitors are only there to check out prices and sizes before going home to complete the purchase online. In an amazing admission of defeat, Australia’s largest retailers are now turning their attention to finally building vast online platforms, but the question begs: what took them so long given the real estate industry has been selling real estate on property portals since the early 1990s?
With interest I have been reading a fascinating (and scary) <a href="https://www.business2.com.au/2011/07/project-rebellion-reas-problems-continue-with-accc-investigation-underway/">blog</a> on Business2, the real estate news and technology website, which follows up a recent story that appeared in the Australian Financial Review which investigated a revolt by real estate agencies across Australia against realestate.com.au. In short, some of Australia’s largest real estate groups are looking at starting up a combined property portal, which has been called Project Rebellion. While I support the concept of an industry website – I can also see many of the same mistakes in this concept that retailers are making at the moment. Aside from the reality that such a venture would require at least $1 million dollars to get it up and running, it certainly appears to me that such an exercise lacks vision. Simply put: the agent sentiment of dissatisfaction is built on the past, not the future.
Building websites if you don’t know what you are doing can be costly mistakes. Just look at the City of Sydney council, which is now spending a massive $1 million of ratepayers’ money tweaking their website – just six years after it was constructed. Anyone with the slightest online knowledge would see this as an embarrassing waste of money – given in another six years’ time they will be back at it again. Everything may be now moving to digital, however, the answer is providing clients with the best online experience that separates your online model ahead of your competitors.
The secret to search engine marketing (SEM) is not having the best-looking website. It is about having the best database. One vital component that has not changed over the past decade is that for any online platform to perform to its best ability, it must be connected to a database. This flows through to search engine optimisation (SEO) where the content on that particular website is collected by the search engines. The more content, the higher the search engine ranking. It should be every website’s goal to appear on page one of a Google keyword search.
There are many great success stories in Australia where amazing growth strategies are on display where we are only talking a few short years. Online shopping club Ozsale launched in 2007. Last week it reached two million members. More than 5,500 new members are signing up each day and exponential sales growth saw revenue grow by more than 300% last financial year.
In the real estate industry, businesses need to take ownership of their very own online models, rather than rely on third-party assistance. We measure our business growth on competing with the two major property portals: Domain.com.au and realestate.com.au. As this graph identifies, you need to be your first point of contact to your demographic market. Here is a typical report that we sent a vendor showing the first week’s activity for their apartment.
<img src="/images/stories/simeon-cropped.png">
Successful SEM and SEO allow a business to take ownership of their demographic markets where they become the online voice for that market. It does require a lot of work and dedication – blogging, database management, social media and constant email alerts. This is the new online platform for the real estate industry which explains why website developers have never been busier.
The choice of letting competitors control your market online is self-explanatory – they will make your market their new market, which is otherwise known as capturing market share. In this modern era, if you are not running your own website, you run the risk of being irrelevant – the internet already has made many businesses irrelevant, where via natural attrition, they have now closed – not by choice.
That is why your homepage must be your online ‘home sweet home.’
Robert Simeon is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM">Richardson &amp; Wrench Mosman &amp; Neutral Bay </a>(RWM) and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News">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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Why online presence has never been more important for estate agents

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Sydney has well and truly lost its X-factor, thanks to more than a decade of infrastructure paralysis where the vision was blinded by government incompetence and bureaucratic blunders. More ironic the name – New South Wales – given that nothing “new” has happened and a master plan is well overdue. The New South Wales economy is ranked last among the state and territories, according to the latest CommSec survey. The Australian Bureau of Statistics reported that final demand grew by just 0.4% in the March quarter of 2011. To make matters worse, the state coffers won’t be returning to surplus anytime soon – so where did all the money go, given the previous government has left very little to show following 15 years in office?
It was evident at the March 2011 state election that the constituents had had enough when the Coalition recorded a two-party preferred vote of 64.2%, an overall swing of 16.5%. Both the vote and swing are likely to be records for the post-war period. The Liberal Party polled 50.6% of the first preference voter in greater a Sydney, as opposed to 28.3% for Labor.
The late Joh Bjelke-Petersen once said “the strength of the state’s economy could be gauged by counting the cranes on the Brisbane skyline.” I don’t see many cranes in this 2011 aerial shot by <a target="_blank" title="Tim Mooney Photography" href="https://timmooneyphotography.com/">Tim Mooney</a>.
<img src="/images/stories/sydney-simeon.jpg" style="outline-style: none; outline-width: initial; outline-color: initial; padding: 2px; border: 0px initial initial;">
The latest ABS report has Sydney’s population at 4,575,532 and climbing yet, NSW infrastructure remains in the doldrums. NSW keeps falling behind the other states and territories, growing just 1.2% last year to 7,272,200. Last year 94,668 NSW residents decided to relocate to another state while 83,425 moved into NSW – a net loss of 11,243. Quite amazing that in this day and age NSW now finds itself in with more departures than arrivals.
The tools have been laid down, as construction in Sydney is well behind the other Australian cities – it is becoming quite clear that we no longer have a culture for construction. The ABS reports that last year 27,655 houses and apartments were constructed in NSW. Victoria recorded 50,700 (nearly double NSW), 31,611 in Queensland and 22,315 in Western Australia. To make matters worse just 16,118 new houses were built in 2010, Victoria led the way again with 37,218, Queensland with 21,764 and Western Australia constructed 18,442. Sydney has the lowest vacancy rate for rental properties in Australia, at just 1% – the general rule of thumb is that this figure should sit between 2% and 3%. The rental vacancy rate will continue to decline, forcing rents up further, given just 19,111 dwellings were approved for construction in Sydney between July 2010 and May 2011. Spiralling rents are forcing families further west as they seek rental relief affordability.
Bennelong MP John Alexander recently wrote in The Australian: “The national cost of traffic congestion through productivity and efficiency losses is estimated to be over $10 billion each year and growing exponentially. Sydney’s population has grown at a staggering rate. Policies of ‘urban infill’ with minimal additional infrastructure have led to additional cars forced onto congested local roads with no real plan to increase capacity. Australia’s largest capital city finds itself in a sad state as a result of a failure to plan for future growth compounded by sky-rocketing property acquisition costs to build necessary infrastructure.
“By example, a crucial heavy rail line to service the burgeoning north west of Sydney, the North-West Rail Link, was planned in 1998 and costed at $360 million. Thirteen years later, without a sod turned, and needing to include a few extra stations due to population growth, the cost is now estimated to be north of $7 billion and rising.”
So why is the Gillard government spending $50 plus billion on the NBN Co? Obviously the government believes that faster internet speeds are more important than faster transport infrastructures.
<img src="/images/stories/darling-harbour-simeon.jpg">
Darling Harbour was opened in 1988 (I’m hard pressed to think of another infrastructure initiative, aside from freeways), and the Sydney Olympics were in September 2000. Since the Olympics in 2000 it looks very much like it was not only the crowds and participants who left. Throw in GST receipts and the most expensive real-estate stamp duties in Australia – yet nothing to show.
Just like the NSW budget black hole – the once-named Premier State is now in a state of disrepair requiring the biggest drawing board in Australia’s history.
Robert Simeon is a director of <a target="_blank" title="RWM" href="https://www.rwm.com.au/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Richardson &amp; Wrench Mosman &amp; Neutral Bay </a>(RWM) and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a target="_blank" title="Virtual Realty News" href="https://www.rwm.com.au/news/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
<a href="https://timmooneyphotography.com/index.php" title="Tim Mooney" target="_blank">Tim Mooney</a> specialises in aerial photography, and he has a particular passion for property photography. 
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Nothing new about New South Wales

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The GDP contraction by 1.2% in the March quarter will, over time, be seen as either an economic blip or a sign that the Australian economy is no longer the star student at the World College for Economics. While the Queensland floods and Cyclone Yasi were unavoidable, it is becoming most clear that Australia’s annual growth rate is struggling to break through the 1% barrier (not to be construed as a natural disaster, rather an economic disappointment that requires greater scrutiny).
Although it is just not property prices that are caught up in this winter stew, it’s relevant to note that Australia’s housing market has a $4.2 trillion capital value. For this reason it is important that property remains on the boil, or at the very least, appetising to consumers. From 1985 to 1998, house prices doubled, then more than doubled from 1998 to 2007 (then the Global Financial Crisis arrived).
A recent report by RP Data-Rismark identified that property prices had been declining in “real terms” since 2004. CPI had been running at 3%, although housing growth in Sydney was recorded at just over 2.1%. Households are doing it tough. Spending is on the decline and savings rates are on the increase, moving to 11.5% from 9.7% in the March quarter (a clear consumer confidence indicator).
Household electricity bills are expected to skyrocket by up to 30% by mid-2013 (not including a carbon tax). An estimated $33 billion is the required spend on our ageing and inadequate power distribution networks. NSW is the worst offender. The previous government spent next to nothing in terms of upgrades to the extent that now, NSW electricity infrastructure is in a critical condition. This explains why we are now paying for it again.
Council rates are capped at annual increases of 2.8%, although the Independent Pricing and Regulatory Tribunal approved applications from 23 of the 152 councils to increase rates above the cap rate. North Sydney Council received approval to raise rates by 5.5% until 2018 – the only council to receive a seven-year increase approval.
If you are positioned within the mining economy, the future looks very bright, although in the non - mining sector it is looking very ill. No better example than households having greater concern over power bills than interest rates – an all-time first. Anecdotal data reveals that although households are using less power, bills are much higher.
Discretionary spending has not been under greater pressure since Australia’s last recession in the early 1990s.
Much is written about the Australian residential property markets, which are actually defined in three very different categories. Australia is no different from the rest of the world – you can rent, own with a mortgage and own without a mortgage. For years I have been somewhat mystified as to why these three key indicators are bundled together and not addressed separately. It will be interesting to see how this pie graph changes after this year’s latest census is conducted in August. We are working from data released after the last census in 2007 – for all Australian households.
<img src="/images/stories/rpgraphjune14.jpg">
The Reserve Bank of Australia meets on the first Tuesday of every month (except January) to discuss all things pertaining to monetary policy (an independent body removed from political spin). It should be noted that the RBA and Treasury have not seen eye- to- eye on all things economic for quite some time.
A big week ahead with the release of car sales, lending data and housing. RBA governor Glenn Stevens will discuss economic conditions and prospects at an Economic Society of Australia luncheon in Brisbane, where the RBA’s June quarter economic bulletin will be released.
Will there be any mention of a second June quarter GDP contraction and, if so, what will this do to the Reserve Bank’s interest rate outlook?
The latest Business Spectator Accenture CEO Pulse survey shows a 22% drop in optimism about the domestic economy. Surveyed chief executives who run companies with an average turnover of $100 million or more reported a decline in optimism to 51%, compared with 73% in the first quarter of 2011.
The CEOs' estimation of the government’s performance in managing the economy continues its downward trend, with an overall rating of 3.3 out of 10 – the lowest since the CEO Pulse was established.
It may just be a coincidence that freshly retired Treasury head Ken Henry has accepted a position as economic adviser to the Gillard Government. Given all that’s happening within the Australian economy, it remains to be seen if the NBN rollout and a carbon tax are economically (and emotionally) justifiable at this juncture.
Henry is reportedly the architect of the carbon tax, which is proving much harder to sell than real estate!
<div>
Robert Simeon is a director of <a target="_blank" title="RWM" href="https://www.rwm.com.au/">Richardson &amp; Wrench Mosman &amp; Neutral Bay </a>(RWM) and has been selling residential real estate in Sydney since 1985. He has also been writing real-estate blog <a target="_blank" title="Virtual Realty News" href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Real estate needs to stay on the boil

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Robert Simeon

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