<html><body>
As the Sydney real estate markets start drawing the curtains on what has been a highly entertaining 2015 year it’s interesting to note some are framing 2016 as the recession year. 
However before we start nailing that coffin we need to look at what possibly may cause a recession and then look for what may avert a recession. Naturally there are many that opt for the let’s wait and see option although I’m of the opinion that we won’t see a technical recession.
Yes in some areas property prices are falling and in many other areas property prices are still performing well. Just last week we set (nearly doubled) the all-time record price for a Cammeray waterfront.  This week a developer released Chatswood Place, a $300 million boutique style development, and in just three hours set a new suburb record as well as securing $160 million in off the plan sales. This is the very same investment market which many were believing was well and truly finished.
Last week the Australian Bureau of Statistics (ABS) revealed that business investment spending in the September quarter had fallen 9.2 %. This quarterly result was the worst in the 28 year history of the survey of business investment. The ABS also released the GDP growth which identified growth of 0.9 % thanks to the highest exports in 15 years, an increase in consumer spending and of course the much publicised housing boom more particularly in apartment construction.
We also need to note that Treasury has cut the nation’s potential economic growth rate to 2.75 % down from 3.25 %. This follows three consecutive years of below – trend economic growth where the elephant in the room is the decline in mining.
Now for that beaming light at the end of this tunnel of misery – enter the very cashed – up NSW government. Unlike the vast majority of state and territory governments NSW has an overflow of coin and it’s all going into the biggest infrastructure spend in the state’s history. Over the next four years the NSW government has allocated a staggering $70 billion infrastructure spend which is unprecedented. This in itself will singularly underpin the Sydney housing market given nothing stimulates the markets and consumer confidence like a massive infrastructure spend.
The breakdown is $38 billion to be spent on new transport projects which will also include the second harbour tunnel, North West rail link, South East Light rail, Sydney CBD and WestConnex. The Transgrid lease which brought in a record $10,258 billion is still to be allocated although it has been confirmed that these monies will also be directed into new infrastructure projects.
Following the federal government crackdown on illegal foreign real estate acquisitions in Australia the Significant and Premium Investor Visas have been running at full – speed. It will be very interesting to see the next set of figures and whether there has been a significant spike in applications since the crackdown. The low Australian dollar is also enticing many offshore purchasers and expats and this is now a very strong emerging market within the Sydney real estate markets.
So when one takes the time to actually look at what is going on I find myself (as do many others) not too worried about this so called recession. The last recession was 25 years ago and they aren’t very nice but when you have a state government pouring $70 billion into the NSW economy it would appear that NSW has more Zoom than Gloom. 
To further highlight this the NSW government just appointed Lucy Turnbull (the PM’s wife) as chair of the NSW government’s newly created Greater Sydney Commission. The sole purpose of the Greater Sydney Commission is to stop the infighting at local councils and to speed up developments across the city although I still see councils incompetency as an on – going hurdle.  I’m reliably informed that the premier will hand his greater Sydney Commission special powers and the councils will not like what’s in-store.
Of course not everybody will be convinced but then again, that all adds to the theatre of debate. When the 2016 property markets kick off I’m of the view that the areas within a 15 kilometre radius of the CBD will do very well. But expect more than a few to tell a different tale.
MOSMAN – 2088
• Number of houses on the market this time last year – 103
• Number of houses on the market last week – 65
• Number of houses on the market this week – 55
• Number of apartments on the market this time last year – 66
• Number of apartments on the market last week – 60
• Number of apartments on the market this week – 51
CREMORNE – 2090
• Number of houses on the market this time last year – 13
• Number of houses on the market last week – 15
• Number of houses on the market this week – 11
• Number of apartments on the market this time last year – 25
• Number of apartments on the market last week – 18
• Number of apartments on the market this week – 17
NEUTRAL BAY – 2089
• Number of houses on the market this time last year – 10
• Number of houses on the market last week – 8
• Number of houses on the market this week – 8
• Number of apartments on the market this time last year– 42
• Number of apartments on the market last week – 33
*Number of apartments on the market this week – 30
 
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000. 
</body></html>

robertsimeon-hRNTwJyXkQ

Some framing 2016 as the recession year: Robert Simeon

<html><body>
If you thought the election debate on negative gearing was interesting watch the new property debates get a whole lot hotter with the Australian Taxation Office’s (ATO’s) latest bombshell announcement which guaranteed will send shockwaves through property markets. 
No doubt this is just the next step following the ATO being handed total ownership of the Australian property transaction register in mid – 2015, a role they had been champing at the bit to control for quite some time.
From Friday July 1 2016 (the day before the federal election) all sellers of residential and commercial property worth in excess of $2 million will be deemed as an overseas investor unless they can attain a special tax clearance. Failure to attain the special tax clearance certificate means the seller must deduct ten (10) percent from the purchase price which is immediately paid to the ATO.
No doubt lawyers, accountants and conveyancers would be rejoicing at these newly discovered revenue streams although what has not been announced is when a seller receives their compliant special tax clearance are the associated costs in receiving the compliance tax deductible?
This is all aimed at closing loopholes solely aimed at the leakage of tax revenues. Australian residents will get their tax clearance so long as they are up to date with tax returns, proving that they acquired the property within their declared earnings – which I see as a very good move.
When the ATO took over the property reins they quickly started extrapolating all property transactions back to 1985, so it will take a while to complete the register. This new legislation is simply closing the door on those who acquired property illegally either from proceeds of crime or as non – residents.
For the last five years foreign investors have been running amok buying Australian real estate. The federal governments have laid out the welcome mat when they raised off – the – plan purchase restrictions in 2008 from 50 percent to 100 percent.
This week Fitch Ratings warned that Australia clearly has a significant ‘hidden’ offshore property buyers risk. Andrea Jaehne, a director at Fitch Ratings, stated that she was shocked by the increase of foreign buyers since 2010, where the Foreign Investment Review Board experienced an eightfold increase in approvals up to 2015. She said that it was difficult to know the true number of properties being sold offshore because foreign investment rules did not require an approval for foreigners buying apartments off the plan.
The question that needs to now be asked is (with the recent property frenzy which conveniently replaced the mining boom) with all these new measures what will happen to property prices? Well foreign buyers will almost certainly now hold back and watch what happens to the Australian markets particularly Melbourne and Sydney – we can expect some big corrections in these investment markets.
With a further 250,000 apartments to hit the domestic markets within the next two years it is very difficult to see a happy outcome for these markets – more particularly as we have more evidence that these markets are significantly slowing. Then throw in the latest Australian Bureau of Statistics data which shows that Australian wages are growing at the slowest rate for at least 18 years.
Furthermore, we are now hearing that market analysts are now coming to the conclusion that low interest rates actually cause more damage to the economy. As one commentator said this week “very low interest rates around the world are inhibiting economic recovery rather than encouraging it.”
Australia is now just 44 days away from getting a clearer indication of what will happen to the markets more particularly with negative gearing. Now is not the time to start tinkering with investors clearly preferring existing properties. Agents will tell you that when an existing apartment comes onto the market the ratio of home buyers to investors inspecting is generally 50/50. Take away half the market and of course prices will come down – which in turn will drive rents up.
Of course the opposition treasurer could produce his modelling to show otherwise, however this has not been forthcoming so one can then conclude that no modelling is in existence.
With all that’s happening on the Australian property landscape the timing is a potential disaster. In the meantime, watch how many vendors try and offload their properties before the new ATO legislation comes into effect. No doubt the ATO will be watching too.
 
MOSMAN – 2088
Number of houses on the market this time last year – 65
Number of houses on the market last week – 55 
Number of houses on the market this week – 55 
Number of apartments on the market this time last year – 47
Number of apartments on the market last week – 50
Number of apartments on the market this week – 50
 
CREMORNE – 2090
Number of houses on the market this time last year – 5
Number of houses on the market last week – 7 
Number of houses on the market this week – 11 
Number of apartments on the market this time last year – 10
Number of apartments on the market last week – 23 
Number of apartments on the market this week – 22
 
NEUTRAL BAY – 2089 
Number of houses on the market this time last year – 6
Number of houses on the market last week – 8
Number of houses on the market this week – 8 
Number of apartments on the market this time last year – 29 
Number of apartments on the market last week – 21
Number of apartments on the market this week – 22
 
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
</body></html>

ATO quickly wields its big new property tax

<html><body>
Whilst property markets closely watch what can directly influence market sentiment in 2016 we should be watching very closely what will indirectly affect the market and just how big these influences may be.
I can nominate six (6) such influences that I believe will have significant repercussions on how we should be approaching the markets.
<h5>1. Illegal Property Acquisitions</h5>
I find this topic quite fascinating given I have always been of the belief that this practice is (or was) huge and I have not changed my opinion. In May, 2015 the then treasurer Joe Hockey set aside 60 investigators from the Australian Taxation Office (ATO) stating that from their initial investigations “they are just at the tip of the iceberg.”
Fast forward seven months where this week the ATO announced that it was now investigating an estimated 31 million records from 1985 to 2015. This order applies to all states and territories for not only sales transactions but also all rental agreements, landlords, weekly rents, length of lease and rental bonds. The biggest investigation into Australian real estate since 1993 when the ATO moved records to computer technologies and every real estate agency in Australia was forced into providing every transaction record.
So from this point forward I’m going to call this the “Please Explain Inquiry” given the ATO obviously believes that they have uncovered interesting irregularities.
It should also be noted that the Department for Rip Van Winkle otherwise known as the Foreign Investment Review Board (FIRB) have just appointed former ASIO director, general David Irvine, to the board. Two very big announcements in the space of a week – watch for some big announcements in 2016.
<h5>2. Underquoting Reforms in NSW</h5>
Not before time from 1 January 2016 real estate agents must quote the likely selling price at the figure(s) that appear on the Agency Agreement. The fines and penalties for failure to do so are severe. The NSW Government Office of Fair Trading will be out in force next year policing their prized new legislation that is a major win for consumers and ethical agents. This will also cause major problems for the habitual agents who love nothing more than buying listings through valuing properties at ridiculous prices. . Expect to see plenty of naming and shaming in 2016.
<h5>3. Off – The – Plan Purchases</h5>
It would be an understatement to suggest that investors are not skittish and squirming about their recent property acquisitions. What remains to be seen is how many pull the plug and walk – away from their purchases believing that Sydney’s apartment investment markets are facing a massive correction in 2016.
Again the NSW government has been busy rushing through more property legislation stopping developers cancelling existing contracts – sunset clauses, because the apartment prices have increased significantly. That loophole has been now shut for good.
<h5>4. Council Mergers</h5>
An announcement regarding the mergers is just days away although I am reliably advised that Mosman will not be forced into a merge and will stand alone. Having said that it will lose all powers regarding new apartment development approvals and this now will be handled by the state government.
<h5>5. 2016 Federal Election</h5>
They say that the Melbourne Cup stops the nation – well a federal election can stop the real estate markets. We can expect to hear plenty in 2016 about what’s now off the table and what’s now on the table. Two words will play a massive part and I’m not talking about negative gearing. No tax reform will be the keywords in 2016 although at this stage its anyone’s guess to what extent and just what lengths the Turnbull government will go. Whatever the case this will be a major distraction in 2016 where I’d love a dollar every time I hear the words Goods &amp; Services tax – GST.
This now leads me to the very big X Factor for 2016.
<h5>6. X Factor</h5>
The premier must have been reading my blogs with a new report from the NRMA confirming that planning is in the early stages to see a rail line from Sydney’s northern beaches through Mosman to Cremorne and Neutral Bay to the Sydney CBD.
The other key recommendation is for a tunnel under the Spit Bridge connecting with Seaforth and the Warringah Freeway linking up with the new harbour tunnel which eventually will connect to the WestConnex.
The report stated – “For decades, the northern beaches and the lower north shore has been the Bermuda triangle of transport infrastructure, where plans have come and gone to disappear without a trace.” It then went on to say “The chronic neglect has left our roads badly congested and buses at or over capacity. We believe the government must now take this opportunity to put the region back on the agenda as part of its overall drive to improve infrastructure across Sydney.”
The report revealed that Spit Road and Military Road were two of the worst in Sydney with higher traffic than Parramatta Road. On an average weekday, 70,000 vehicles use the Spit Bridge, 80,000 use Military Road and approximately 64,000 use Parramatta Road at Camperdown.
So you can expect to see high rise along Military Road and even more high density around the new suburb train stations.
Thank you for joining us in 2015 and we will be back with Virtual Realty News in 2016 – our 16th year. From all of us at Richardson &amp; Wrench Mosman/Neutral Bay we wish you a very Merry Christmas and a safe and happy New Year.
<h5>MOSMAN – 2088</h5>
• Number of houses on the market this time last year – 84
• Number of houses on the market last week – 55
• Number of houses on the market this week – 53
• Number of apartments on the market this time last year – 59
• Number of apartments on the market last week – 51
• Number of apartments on the market this week – 42
<h5>CREMORNE – 2090</h5>
• Number of houses on the market this time last year – 11
• Number of houses on the market last week – 11
• Number of houses on the market this week – 6
• Number of apartments on the market this time last year – 20
• Number of apartments on the market last week – 17
• Number of apartments on the market this week – 15
<h5>NEUTRAL BAY – 2089</h5>
• Number of houses on the market this time last year – 10
• Number of houses on the market last week – 8
•Number of houses on the market this week – 7
• Number of apartments on the market this time last year– 34
• Number of apartments on the market last week – 30
*Number of apartments on the market this week – 26
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000. 
</body></html>

Plenty of x-factor on the 2016 property menu: Robert Simeon

<html><body>
Quite remarkable that the Lower North Shore property markets are showing no signs of slowing as we edge closer to Christmas.
What is very clear is that all but guarantees another very strong March quarter for 2017, where beyond that would be anyone’s guess.
Whilst many expect that the Reserve Bank of Australia will cut the cash rate in the next six months we are now starting to witness some small Australian lenders increasing their rates which sends a loud signal that we may now be witnessing the end of the low rates. I made a phone call and was advised that ING have the lowest rate presently at 3.84 percent over five years fixed. ME head of home loans, Patrick Nolan, said: “The increases were based on increasing swap rates – up 40 basis points since the end of August – and increasing cost of deposit funding.”
Yes, there will be casualties, more particularly the interest only borrowers. I read a sage quote by a banker on Twitter who said: “If anyone is taking out a 20 – year mortgage and they don’t believe rates will rise, I’d ask them if they should be making this investment. It is an unrealistic proposition,” he said.
What needs to be factored in is that wages rose by 1.9 per cent during the September quarter, which was a record low according to the Australian Bureau of Statistics.
The NSW Government’s property development arm known as the Greater Sydney Commission released this week the first draft for the five – year housing targets by Local Government Area. A total of 23,250 new properties have been approved, with Mosman to build 300 new properties and North Sydney 3,000 and the Northern Beaches an additional 3,400.
<a href="/images/2016/11/28/Draft-Districts.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/28/Draft-Districts.png" alt="">
 
I really find this quite intriguing with present data suggesting that Sydney is now facing an imminent over – supply. NSW is in the process of building 55,000 new apartments with thousands more on the planning desks awaiting approval.
As these apartments are completed this will be a significant lever in reducing rents. When I look at Mosman I observed from CoreLogic that the rental median for a house in Mosman is $1,600.00 per week which is a 16.4 per cent increase over the last five years. The rental median for an apartment is $580.00 per week which is a 16.0 per cent increase over the last five years.
From an economic perspective, this is good news for NSW as it will drive employment as well as productivity. Property investors need to look closely at where their respective investment properties are within the Local Government Areas to ascertain what impact this unprecedented apartment building bonanza will have. One would have to say that in the short – term in the case of Mosman that apartment rents will be coming down. Even more so in North Sydney as they have a massive 3,000 apartments to be built over Mosman’s 300. For the fortunate ones if you own a residential development because it just doubled and trebled in value with the new high density legislation.
What needs to be acknowledged is this is what we call the new market and should not be confused with the established housing market as we are building apartments not houses. Although one point that springs to mind is that investors will be forced to renovate existing apartments if they are going to compete in the market on a rental dollar basis as they will be up against brand new apartments.
The building industry has never seen a better future although little consideration has been given to existing property owners who must contend with greater traffic congestion on our roads. So, if you thought our roads are congested now this week’s announcement will only make the situation worse.
Over time this will see more businesses moving to the suburbs, so a smart town planner must be marinating these development sites with a combination of commercial, retail and residential. Although we all know that this won’t happen as that would be the intelligent outcome to try and ease traffic congestion. Happy to bet now that these new developments will be strictly residential only although I will be more than happy to be wrong with this.
What is happening in Sydney will also see many leave Sydney for quieter and a more stable lifestyle. Whatever the outcome this will have plenty of Sydneyites re – considering their respective futures.
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
</body></html>

An insight into Sydney, now one big building site

<html><body>
For those predicting housing values to start dropping in the near future you should start rethinking that analysis.
Of course, the newly created investment market is facing severe headwinds and yes, it would be fair to assume that there will be a correction should a large number default on their respective acquisitions.
The mistake many continue to make is that housing affordability is actually about the established markets of households not the investment market.
If you were asked a simple question for those residing in NSW, do you want a second Sydney Airport or high-speed rail connecting Newcastle to Sydney, the Hunter Valley to Sydney and Wollongong/Southern Highlands to Sydney I am pretty sure what the answer would be.
With the second Sydney Airport estimated to cost between $6 and $8 billion it is comical that a second airport is prioritised over high-speed rail networks.
Everybody aside from politicians can see that high-speed rail networks would have an instant effect on housing affordability in NSW.
For those who disagree NSW is facing major problems over the upcoming decade that require immediate attention.
<a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.17%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.17%20am.jpg" alt="">
As a direct result of what is happening to Sydney rental markets and housing markets we are now starting to see the exodus of NSW residents to the more affordable Victorian markets.
This is happening to such an extent that Melbourne will surpass Sydney in terms of population to seize the title as Australia’s biggest and number one city.
<a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.40%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.40%20am.jpg" alt="">
It has been well documented that since that Sydney 2000 Olympics there has been next to no forward planning which explains exactly why Sydney is now overcrowded with our transport infrastructure at breaking point.
What makes this even worse is that there are no viable solutions – no drawing boards.
This then leads to the population considering alternate solutions to relocate simply because the financial pressures have become untenable.
NSW has had no succession planning where vision has simply been ignored, and now it is starting to pay the price for that ignorance.
In the established property markets we are now at levels never seen before.
Only last week, a garden apartment that was sold in Cremorne in September 2016 for $1,582,000 sold again less than eight months later for $1,970,000.
At a federal level, we are now witnessing the lowest annual growth rates in terms of government spending since the 1960’s.
Federal government overheads keep increasing so we are now witnessing cutbacks that will seriously damage growth as infrastructure continues to be ignored.
There is no collaboration between the states and territories with Canberra and this is fracturing growth given population growth continues to climb to record highs.
If elected politicians started displaying signs that Sydney was full 17 years ago then what do you think they should be displaying now?
With the federal government tightening the spending belts then the states and territories will start cancelling future projects simply because there is no available funding.
The latest Australian Bureau of Statistics figures reveal that approximately 2.3 million Australians earn the lowest legal rate of pay for what they perform.
Recently the Reserve Bank of Australia commented that “wage growth is low.
Although it seems unlikely that wage growth will slow much further, wage pressures are expected to pick up only gradually.”
There has been next to no political commentary about wage growth where one would think that elected politicians would make this a priority to find out exactly why Australia has such weak wage growth?
With record low wage growth how is it possible that we can have record high property rentals?
The Property Council of Australia recently released a five-point plan to assist the NSW government with housing affordability.
<ul>
<li>Turbocharging housing supply through increased land supply and planning reform.</li>
<li>Reforming state property taxes and reducing fees, charges, and red tape.</li>
<li>Better co-operation between all levels of government.</li>
<li>Bridging the deposit gap and supporting first home buyers better.</li>
<li>Supporting the rental market and fostering innovative, affordable rental product.</li>
<li>Whilst fine in principle – this simply won’t happen.</li>
</ul>
Sydney has a massive problem with no clear solutions in the short-term.
Common sense needs to prevail so put the second Sydney Airport on immediate hold and start building fast-train networks.
I am yet to see a better solution to tackle housing affordability. Have you?
MOSMAN – 2088
Number of houses on the market this time last year – 51
Number of houses on the market last week –56
Number of houses on the market this week –57
Number of apartments on the market this time last year – 41
Number of apartments on the market last week – 40
Number of apartments on the market this week –38
CREMORNE
Number of houses on the market this time last year – 10
Number of houses on the market last week – 6
Number of houses on the market this week – 9
Number of apartments on the market this time last year – 18
Number of apartments on the market last week – 16
Number of apartments on the market this week – 18
NEUTRAL BAY – 2089
Number of houses on the market this time last year – 8
Number of houses on the market last week – 2
Number of houses on the market this week – 3
Number of apartments on the market this time last year –23
Number of apartments on the market last week –21
Number of apartments on the market this week – 19
ROBERT SIMEON is a director of <a 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 href="https://www.rwm.com.au/"> </a><a href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
</body></html>

Politicians are doing nothing to fix housing affordability: Robert Simeon

<html><body>
It was only a matter of time before some property punters would cash in simply because property data is now pointing to a significant price correction.
The latest Reserve Bank of Australia (RBA) data has inflation adjusted wage growth sitting most uncomfortably around zero which spells disaster for households carrying excessively large mortgages. Time to cool the heels-cash in, and lock oneself into a lease for twenty-four months or so and watch what happens as there are some worrying signs out there, although some areas will see minimal change and others massive.
The RBA also announced this week that it was concerned how the financial system would handle a significant price correction in the apartment investment sector. Between now and June 30 there are a staggering 15,000 apartments settling so we are approximately 90 days away from knowing if the investment apartment sector is about to collapse.
With the clear majority of these sales to Chinese investors we will soon find out if they can raise the funds to settle without the assistance of the major banks who have walked away from overseas investors.
Li Ming, a co-director of Aussiehome, recently announced that “the off-the-plan apartment markets is now the worst I have seen in the last 10 years.” He then went on to say that almost 80 percent of Chinese buyers can’t settle on the Australian apartments they have purchased and now would prefer to walk away. In the clear majority of cases, these properties are now worth considerably less than when they were an artist’s impression on a glossy brochure.
Property is a confidence game so when we start reading negativity we also start seeing an immediate response in consumer sentiment. This would almost certainly explain why the RBA is now sounding clear warnings directed at the investment apartment markets. This usually only happens when their internal research is discovering anomalies in the markets so immediately they start sounding the fog-horns.
I well remember remarking back in December 2008 when Wayne “The World’s Best Treasurer” Swan strangely increased the off-the-plan ratio from 50 percent to 100 percent that this would not have a happy ending. Who knows I may well be wrong although I still stand by my predictions where nearly nine years on we are now starting to see the result.
This also coincides with Sydney house prices presently posting the highest annual growth in 14 years. We all know (well most anyway) that for property markets to change direction you need a trigger. Should Li Ming be correct about the apartment investment market this will have a significant impact on this newly created apartment investment market right across the eastern seaboard.
If this does happen our governments and banks need to play this intelligently by riding the storm out by becoming landlords. In the past, they have panicked (especially the banks) by engaging in massive sell offs which cause more problems. What should be happening now is the intelligent preparation of worst case scenarios where lenders should be looking at first home buyers to create lease and buy back packages.
Having said that the first problem with housing affordability is the rental markets despite governments going down the wrong track of building more homes. If rents are flat and even decreasing as was the case 15 years ago, then the pressure on tenants is removed as it then becomes cheaper to rent over owning. What we forget are the many solid arguments back then that clearly showed renting was a smarter option than buying – how quickly we forget.
Obviously with so many brand-new apartments set to hit the rental markets rents will fall – just imagine what would happen if the NSW government forced the 200,000 plus permanently vacant Sydney apartments onto the market?
The Victorian government has acted on this with the introduction of the Vacant Residential Property Tax (VRPT) which will address the permanently vacant properties across inner and middle suburbs of Melbourne. The VRPT will be levied at 1 percent, multiplied by the capital improved value of the taxable property. A property worth $650,000 would then be charged a VRPT of $6,500 which in my opinion is too low because the clear majority are wealthy which is why they are not interested in renting the property out in the first place.
The VRPT should be between 3 and 5 percent although the Victorian government knows only too well that a 1 percent VRPT won’t have a significant impact on overseas buyers which is why they introduced it.
On the flip side, the NSW government is looking to further increase stamp duty for foreign buyers which would be an absolute disaster – just ask the Canadian government who did precisely this and then managed to collapse their investment markets by upwards of 30 percent.
I don’t worry too much about the property markets, I worry more about how our elected politicians will respond to these challenges. Generation Rent should be watching these markets very closely.
ROBERT SIMEON is a director of <a 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 href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
</body></html>

The big property shift is fast heading to a sell recommendation: Robert Simeon

<html><body>
Up until now it’s very clear that federal and state politicians do not want a debate on property markets as they well know that a major overhaul is what’s required – consumers would be much better off and government revenues would be significantly reduced.
This would explain why the last significant taxation review in Australia, happened back in 2000, with the introduction of the goods and services tax (GST).
In 2008, the then Rudd Government commissioned the Henry Tax Review which was then published in 2010 – this was supposed to be Australia’s tax system reforms for the next ten to twenty years. Sadly, this review was binned and never saw the light of day as it threatened the longevity of a politician’s career. More recently, Ken Henry had another attempt to shed light on Australia’s housing affordability woes – the recommendations were immediately muted.
In December 2016, the Turnbull government completed its 20-month inquiry into home ownership in Australia. The conclusion was that Australia had no structural problem with housing affordability! This would have to be the most embarrassing finding over the last decade of Australian politics.
Australia urgently needs a property inquiry that does not include politicians or banks – this must be independent with the findings released six months before the next federal election. Then constituents can decide who they will vote for based on these findings, and the logical person to head this is Ken Henry, although our elected politicians would cringe at such a thought.
 
The Turnbull Government sixteen months ago agreed to implement many of the findings from the Murray recommendations relating to bank competition – to this day the legislation has been ignored despite publicly agreeing to act. Much like the Turnbull Government announcing that the Productivity Commission would formally investigate an inquiry into bank competition- this too, has mysteriously disappeared.
Treasurer Scott Morrison indicated this week that the government was working on a housing affordability package in the May federal budget although he has effectively ruled out most of the solutions available that must be included.
<a href="https://www.propertyobserver.com.au/images/2017/03/10/House-Prices-since-GFC.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/10/House-Prices-since-GFC.png" alt="">
Australia’s big banks testified at a parliamentary inquiry into banking this week and all found to much amazement that Australia’s property prices aren’t over-inflated. Of course, they are going to say that because if they said they hold grave fears (which they all do) then there would be a huge sell-off of their respective shares. Like just what are these inquiries supposed to achieve? Maybe a lie detector would be an intelligent start – where this graph has the banks not remotely concerned.
<a href="https://www.propertyobserver.com.au/images/2017/03/10/Mortgage-Nation.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/10/Mortgage-Nation.png" alt="">
Again the Reserve Bank of Australia (RBA) left the cash rate at 1.50 per cent which takes me to a topic that I have written about – why does Australia have a one fit cash rate that fits all property markets? SGS Economics principal Terry Rawnsley announced that they found if interest rates were presently set for each state and territory that there would be massive variations across Australia. Sydney would currently be at 3.75 per cent, Melbourne would be 3.50 per cent, Adelaide, Brisbane and Hobart at 0.25 per cent and Perth at 0.5 per cent. Why is the RBA not looking at these models? For example, if Sydney was at 3.75 per cent then the variable rate would be at 7.05 per cent – but we all know that this would not be good for the economy and the government’s economic standing in the global economy. I can tell you one thing, if Sydney had a variable rate of 7.05 per cent clearance rates would be half of where they sit today.
These are just a few of the discussions we should be having today, although a fair and true representation can only occur when vested and conflicted parties are not involved in the debate. Rather make the findings, and then have the much-overdue debate.
Although Canberra would rather let you know that they are steering Australia to absolute greatness. In less than a month, April 1 (and this is not an April Fool’s joke) Australia will lay claim and become the titleholder for the longest economic expansion ever recorded before once it posts our 104th quarter of economic growth.
Yep – there is a valid argument why Australia must not have any economic reform and this would explain why economic paralysis has spread so fast and wide in Canberra. They will also tell you this planning and research has enabled Sydney to post the strongest annual growth in house prices since 2003.
My-bad, I am obviously barking up the wrong tree.
ROBERT SIMEON is a director of <a 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 href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
</body></html>

The three p’s of property are now political, paralysis and persuasion: Robert Simeon

<html><body>
Like most people, Australians are past sick and tired of their elected politicians, simply because they do very little and collectively can’t solve problems – in fact, they now make them worse. 
Speaking at the 2017 Committee for Economic Development of Australia summit Henry was scathing. “Australia had become so paralysed by political inaction that it had gone from an optimistic nation which pioneered world’s best policy and nurtured world’s best institutions to a place that nobody looked to anymore to see how it should be done.”
“Have you heard a political leader addressing that question? Do you think anybody has a clue? At the very least, we are going to have to find radical new approaches for infrastructure planning, funding and construction.”
“Based on current estimates, Australia needs to build a city for two million people every two years or a city the size of Melbourne or Sydney every decade yet the only plan seems to be stuffing more people into Sydney and Melbourne.”
 
He went on to say that four priorities could be met by adopting, as a minimum, eight reform proposals. These are:
<ul class="ul1">
<li class="li1">Apolitical infrastructure planning and pricing, including the widespread use of road user charging;</li>
<li class="li1">A much lower company tax rate, or some other mechanism that reduces substantially the cost to Australian businesses of equity capital sourced from abroad, achieved much more quickly than is presently under consideration by our Parliament;</li>
<li class="li1">The removal of stamp duties on residential property;</li>
<li class="li1">Symmetrical tax treatment of interest and capital gains;</li>
<li class="li1">An overhaul of state-based royalties;</li>
<li class="li1">Market-based price signals to guide climate change mitigation and long term investment in the energy sector;</li>
<li class="li1">A broader base and higher rate of GST;</li>
<li class="li1">A substantial adjustment to roles and responsibilities between the Commonwealth and the states.</li>
</ul>
Stamp duty on residential property was supposed to be removed when the GST came in on July 1, 2000. How can you justify a duty that has increased by over 800 per cent over since 2000, when it was agreed that it would be removed? It is a no brainer that the GST has to be increased although this time around stamp duty has to be abolished.
This week, the NSW Premier Gladys Berejiklian announced that the tunnel from Manly Vale to the Warringah Freeway was still going to happen although she could not say when? We all know that this won’t be happening given the Liberal Party has now been promising this tunnel since 2002. So, thousands and thousands of new apartments are approved and the NSW government does nothing for transport infrastructure. Then, of course, the NSW government announced late last year the Ingleside development with 3,400 new homes – this is just ludicrous.
No politician responded to the announcement from a new global report which found Sydney the tenth most expensive city in the world for residential tenants. How are young Australians supposed to be getting into our property markets when they are forced to pay some of the highest rents on the planet, then factor in stamp duty plus add another 10 per cent to their previous 10 per cent deposit to qualify for a bank loan? Superannuation is not the answer that is just a dumb solution. Malcolm Turnbull needs to be talking to Ken Henry and urgently implementing his solutions.
If you want to see the impact of stamp duty on property markets look at the graphs that we have compiled – look at the dramatic reduction in people selling.
<a href="https://www.propertyobserver.com.au/images/2017/02/24/Mosman-House-Sales-2016.png" target="_blank">Mosman House Sales</a>
<img src="https://www.urban.com.au/images/2017/02/24/Mosman-House-Sales-2016.png" alt=""> 
<a href="https://www.propertyobserver.com.au/images/2017/02/24/Mosman-Apartment-Sales-2016.png" target="_blank">Mosman Apartment Sales</a>
 <img src="https://www.urban.com.au/images/2017/02/24/Mosman-Apartment-Sales-2016.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/02/24/Cremorne-House-Sales-2016.png" target="_blank">Cremorne House Sales</a>
 <img src="https://www.urban.com.au/images/2017/02/24/Cremorne-House-Sales-2016.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/02/24/Cremorne-Apartment-Sales-2016.png" target="_blank">Cremorne Apartment Sales</a>
<img src="https://www.urban.com.au/images/2017/02/24/Cremorne-Apartment-Sales-2016.png" alt=""> 
<a href="https://www.propertyobserver.com.au/images/2017/02/24/Neutral-Bay-House-Sales-2016.png" target="_blank">Neutral Bay House Sales</a>
<img src="https://www.urban.com.au/images/2017/02/24/Neutral-Bay-House-Sales-2016.png" alt=""> 
<a href="https://www.propertyobserver.com.au/images/2017/02/24/Neutral-Bay-Apartment-Sales-2016.png" target="_blank">Neutral Bay Apartment Sales</a>
<img src="https://www.urban.com.au/images/2017/02/24/Neutral-Bay-Apartment-Sales-2016.png" alt=""> 
Why do politicians keep crucial infrastructure a secret? Well, that would be as Ken Henry correctly pointed out, “Australia has become so paralysed by political inaction”. To fix the problem you first need a model, and we now have one – courtesy of Ken Henry.
You can watch with interest how our elected politicians respond to Henry and his critiquing of the Australian economy. My money is on nothing happening as today we have political paralysis.
ROBERT SIMEON is a director of <a 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 href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
 
</body></html>

To fix Australia’s housing affordability listen to Ken Henry

<html><body>
Quite surprising that nothing has been said when last Friday, the Australian government debt ticked just over $475 billion.
For the last twelve months, the government on average has been borrowing $6.35 billion each month, so what happens when they hit the debt ceiling of $500 billion? Will that then bring an end to Australia’s prized membership of the AAA – rated club?
Standard &amp; Poor’s, Moody’s and Fitch have just 9 countries in the AAA club – Australia, Canada, Denmark, Germany, Luxembourg, Norway, Singapore, Sweden and Switzerland. Should our membership be revoked that would mean that borrowing costs would increase overnight, which is not a good sign for the Australian economy. The Australian Taxation Office (ATO) currently estimates that Australian small businesses currently owe $13 billion in unpaid tax debts. Obviously, there is no impact on existing debt although when it comes time to refinance then that would be an entirely different story.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.03.18%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.03.18%20AM.png" alt="">
With the federal government recently weighing into the housing affordability debacle there are two things that I would immediately implement to critique our housing markets.
The ATO has taken over responsibility for being Australia’s biggest property manager so land banking must be the first point of call. It is estimated that Sydney now has well over 100,000 permanently vacant apartments so they should be rented out to ease the rental crisis. Look at the lost revenues the ATO is missing out on with these land banked properties, where the clear majority are owned by overseas investors. Land banking in Australia must be outlawed.
Reverse the ridiculous off-the-plan ratio back to 50 percent from 100 percent to overseas buyers. We are now going into the ninth year of 100 percent and the only clear impact we are seeing is that foreign investors have become a most dominant player. In 2016, Chinese developers acquired almost 40 percent of the Australian residential sites that were offered to the marketplace. All these properties are offered exclusively to Asia and these properties are not available for local buyers. Reducing the ratio back to 50 percent would have a big impact on housing affordability.
 
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.04.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.04.36%20AM.png" alt="">
A recent survey by Roy Morgan Research found that approximately 7 per cent of Australian mortgage holders have little or zero equity in their homes in the twelve months to October 2016. That would equate to approximately 300,000 properties across Australia. Western Australia has the highest number with 54,000, followed by South Australia with 27,000, Queensland with 63,000, Melbourne has 50,000, Victoria has 65,000, NSW has 73,000 and Sydney has 33,000. Tasmania came in with 5,000 – these are concerning numbers when you consider the east coast has enjoyed unprecedented capital appreciation.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.05.32%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.05.32%20AM.png" alt="">
Since 2009, Sydney home values have doubled and Melbourne have climbed 85 percent. In 2011, less than 10 percent of investors held multiple investment properties, according to Digital Finance Analytics. This has now grown to 16 percent nationally, and on the east coast multiple investment properties is now approximately 18 percent.
Really makes one wonder, just what data our elected politicians and policy makers are actually looking at or quite possibly, they don’t even understand this data?
The most recent data from CoreLogic shows that the rental yields in Sydney and Melbourne are on the decline. For Sydney, houses yield is 2.8 percent and units are 3.8 percent. In Melbourne, houses are 2.7 percent and units are 4.0 percent. It will be most interesting to see just how low these yields will go with all the new developments entering the market. It is quite clear that investors have been enjoying the unprecedented capital growth over rental yields in Sydney and Melbourne, although this is about to change.
With very few alternate investment opportunities, we don’t at this particular point in time expect to see investors retreating out of the market, although we do expect to see carnage in the CBD markets. This should not come as a great surprise as these markets have introduced thousands and thousands of new apartments, and many suburbs have constructed less than one hundred new apartments.
Whatever the case, if you like watching real estate machinations 2017 will keep you highly entertained.
To add to this, the Commonwealth Bank advised mortgage brokers this week, that from February 13, it will cease accepting refinancing applications for investment home loans. Will the other major lenders then follow suit?
ROBERT SIMEON is a director of <a 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 href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
</body></html>

The ticking time bomb in our property markets: Robert Simeon

<html><body>
When Malcolm Turnbull addressed the National Press Club this week I was really hoping that he was going to announce some major policy critiquing for all matters pertaining to Australia’s ongoing housing affordability woes. 
Sadly, very little was offered where he clearly laid the blame at the states and territories which simply identified that very little would be happening to this space.
We can then expect political huffing and puffing until November 2, 2019 which is when Australia must contest the next election. A very strong possibility that we will see a changing of the guard where negative gearing laws will be changed which will then probably coincide with a major property downturn. On that basis, it is clear to predict the game plan for the next two and a half years. Property investors will go -hard simply because they want to get in before the negative gearing rules are changed (should there be a change in government.)
There is no doubt that property prices will continue to rise in 2017 to the extent that we may well see the cumulative house prices reach 100 per cent gains in five years in some areas. The latest statistics from CoreLogic revealed this week, identified the January price rise results showed Melbourne up an additional 11.8 per cent and continues to run amok at 16 per cent. Since June 2012, the cumulative increase in house prices has been 70.5 per cent, CoreLogic reported.
Two things I was expecting announcements on this week were immigration and reducing the off – the – plan ratios to overseas buyers. CBA senior economist Michael Workman said, ‘’housing affordability is set to worsen without federal action. 
The Federal Government controls some of the significant demand factors for housing markets, namely population growth via migration and the spectrum of tax and foreign investment policies that significantly inflate demand for existing and new housing. Housing affordability can be improved, via stabilising growth in house prices and rents, by gradual reforms to both supply and demand issues.”
In the present property environment, there is no need for off – the – plan sales to foreign buyers to remain at 100 per cent and this ratio is controlled by the Turnbull government.
<a href="https://www.propertyobserver.com.au/images/2017/06/VRN-2.png" target="_blank">Click to enlarge </a>
<img src="https://www.urban.com.au/images/2017/06/VRN-2.png" alt="">
Despite the construction of thousands of new apartments, we are not seeing an easing of rents as was the expected case. Data analysis from the NSW Rental Bond Board identified that NSW has more tenants than ever before. No surprises to learn that the most expensive five suburbs are Manly, Waverly, Woollahra, Willoughby and Mosman.
We can therefore expect to see these areas hot – spotting with investors as they know these areas provide the best rental returns as well as capital appreciation. Investors will keep driving these markets simply because the federal government has tinkered with superannuation, and property markets are out-performing the share market.
Of course, we all know that this will change over time although the momentum is much stronger with our respective governments doing absolutely nothing aside from weekly lip service.
 
<a href="https://www.propertyobserver.com.au/images/2017/06/VRN-Statistics.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/VRN-Statistics.png" alt="">
 With much being written about money laundering within the Australian property markets the appointed watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), is investigating more than $3 billion in suspicious transfers from Chinese property investors last year.
This was further backed – up late last year when the major Australian lenders ceased lending to foreign buyers amid concerns. I was then surprised to read this week that foreign investors are again on the surge where this time they are paying cash to settle the full amount of the purchase.
Now many will be asking the obvious questions as to where all these monies are originating from based on recent announcements that the Chinese government had shut down money transfers from China?
Well, allow me to lay your concerns to rest – the smartest thing that Joe Hockey did when he was treasurer was to hand all data collection on every property transfer in Australia over to the Australian Taxation Office (ATO). You may have forgotten that some months later after reviewing the respective data an excited ATO announced that they were expanding their forensic property investigations back to 1985.
Just this week, I received a telephone call from one of the ATO investigators requesting purchaser contact information for a property we sold late last year. Nothing was said, I simply adhered to their request and provided the relevant information.
What this clearly tells us, is that every property transaction is scrutineered by the ATO and you can no longer beat the system.
With so many discussions on housing affordability this is one announcement that should please all those closely following the real estate movements. As each property settles all the data is then sent to the ATO for recording and investigation.
It has become very clear that everybody buying Australian real estate should know that each transaction is noted and investigated. And yes, they have the resources.
ROBERT SIMEON is a director of <a 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 href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
 
</body></html>

Why housing affordability is a political no – go zone: Robert Simeon

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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

Robert Simeon

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News