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Employment trends can be a precursor to property market trends.
Having spent much of the last week analysing the latest employment data for locations right across Australia we’ve found some interesting discoveries which might shape property market performance over the next year or two.
At a base level knowledge of becoming an astute property investor is recognising that property is shelter. Wherever there is demand for a job there is demand for shelter. It is thereby logical to expect that wherever there is demand for more jobs in the future there will be demand for more shelter. This simple philosophy is something which is engrained in Propertyology’s research mindset and why we are full-time students of Australia’s economy.
Actual job numbers (as opposed to unemployment rates), drilling down to individual cities (as opposed to generic state data), and observing data trends over a time series provide us with interesting insight in to probable future performance of property markets.
There can often be a lag of 12-18 months before what’s occurring on the jobs front produces a material impact in real property data. In addition to economic development (jobs), the factors which have the biggest influence on property prices are affordability, sentiment, and supply.
At a national jobs level, the data paints a much rosier picture than what the doomsayers elect to report. After creating a meagre 12,849 extra jobs during 2013, a credible 389,518 jobs were created during the 2014 calendar year. This has been backed up this year with 239,765 new jobs for the eight months to August (annualised 359,647). There has been an increase in total Australian jobs over the two years to August 2015 of 3%.
Against this national benchmark, it would surprise few to learn that New South Wales has outperformed with a 4.0% increase in jobs over the last two years. On the back of a raft of positive economic news over the last couple of years, Tasmania was easily the best performed state with a 5.5% increase in jobs growth. Northern Territory (4.1%) was the other state / territory to bat above the average.
<a href="/images/2015/10/07/Screen%20Shot%202015-10-07%20at%208.42.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/07/Screen%20Shot%202015-10-07%20at%208.42.10%20PM.png" alt="">After a strong job recovery year in 2014, Brisbane had a sluggish start to 2015 however, figures from the last few months suggest that momentum might be back. Propertyology’s forward estimate for Brisbane is for a steady performance although there is nothing suggesting that a boom is on the immediate horizon.
Darwin produced the biggest jobs growth of Australia’s eight capital cities with an 8.3% increase over the last two years. It is worth noting that much of this growth occurred during first half of this period and Propertyology’s research suggests that the trend could be reversed in the next year or so when construction on the Ichthys LNG project finishes. Perth (2.4% growth) and Adelaide (0.8%) were both below the national benchmark while Canberra has 2.2% less jobs now than two years ago.
The truly astute property investors don’t have the blinkers on and they recognise that 8 million Australians elect to live and work in alternative locations to capital cities. There are some really interesting job numbers unfolding in regional cities. Oh, and for those who missed the memo, housing is much more affordable in these locations.
<a href="/images/2015/10/07/Screen%20Shot%202015-10-07%20at%208.45.22%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/07/Screen%20Shot%202015-10-07%20at%208.45.22%20PM.png" alt="">
In New South Wales, Coffs Harbour (13.8%), Central Coast (12%), Illawarra (8.7%), the Mid-North Coast (8.0%), and Richmond / Tweed (5.0%) have all been superior to the State’s capital. And if you think they are impressive numbers, the biggest jobs growth in all of Australia over the last two years was in the Orana region with a 32.6% increase.
<a href="/images/2015/10/07/new_gosford.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/07/new_gosford.jpg" alt="" width="942" height="610">
With 5.6% more jobs now than two years ago, the Hume region has been Victoria’s biggest improver. Most of regional Victoria is struggling though, with a decline in total job numbers over the last two years in the North West (19.2%), Bendigo (12.6%), Geelong (10.9%) and Ballarat (2.9%). In Tasmania’s North West zone, which includes Burnie and Devonport, there was a 16.7% increase in jobs while the North East (Launceston) has increased by 4.6%. Go Tassie!
Queensland has produced mixed results. As forecast by Propertyology at the start of this year, the Gold Coast economy is very strong – there’s been a 15% increase in jobs – boom! Ipswich (8.2%), Moreton Bay North and Wide Bay (both 7.7%) have also been solid improvers. A decline in total jobs has occurred in Mackay (9.7%), Logan (9.4%), and Townsville (7.1%).
It won’t surprise anyone that job losses have occurred in Western Australia’s Pilbara and Kimberly regions; Perth (where thousands of mining administration jobs are based) has also felt the brunt. But, WA is a big state and it’s not entirely about iron ore and gas. In the state’s south, tourism and agriculture have been drivers behind 13% jobs growth in Bunbury. 
SIMON PRESSLEY IS MANAGING DIRECTOR OF <a href="https://www.propertyology.com.au/" target="_blank">PROPERTYOLOGY</a>, AN REIA HALL OF FAME INDUCTEE, PROPERTY MARKET ANALYST, ACCREDITED PROPERTY INVESTMENT ADVISER, AND BUYER’S AGENT. PROPERTYOLOGY WORKS EXCLUSIVELY WITH PROPERTY INVESTORS TO PURCHASE PROPERTIES IN STRATEGICALLY CHOSEN LOCATIONS ALL OVER AUSTRALIA.
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Employment trends a precursor to property market trends: Simon Pressley

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GUEST OBSERVER
Recognised for its wilderness, tourism, and mining, the local government authority (LGA) of West Coast has officially produced the best total property investment return of all Tasmanian LGA’s over the last fifteen years.
The population of West Coast has declined over the last ten years and, according to 2014 Census, is a mere 4,527 people. When combined with its high unemployment and rather remote location it’s unlikely that even the most astute property investor would even bother typing ‘West Coast’ in to their search engine. But, the actual returns on investment have been absolutely spectacular.
$21,750 is what one would have paid for a typical house at the start of 2000 and, even though properties declined by 34% over the last 6 years, it would now be worth $70,000.  As they say, small fish taste sweeter!
West Coast’s average annual capital growth of 9.4% is well above the 8.0% national average for the same period. An 11.1% rental yield means that its total return of 20.5% has it ranked number four in Australia over the last 15 years. Yes, 4th out of 550.
Propertyology conducted a study to compare the historical property market performance of each of Australia’s 550 local government authorities between 2000 and 2014. Given that some property markets have higher rates of growth and others have higher rental yields, Propertyology calculated the ‘total return’ (average annual growth rate plus rental yield) and we then ranked the LGA’s from 1 to 550 based on this performance.
Of the seven LGAs which make up the Greater-Hobart capital city, Derwent Valley was the highest ranked LGA at 24th – impressive stuff! Hobart City was ranked a very respectable 147th (ahead of every LGA in Sydney and Melbourne). Sorell (55th) and Glenorchy (58th) were ranked in the best 10% in Australia over the last 15 years.
29 of the total 550 Australian LGA’s are in Tasmania. Twelve of those LGA’s featured in Australia’s Top 100 (the best 20%). Australia’s smallest state bats well above its weight in respect to property market performers over the last 15 years.
These results are further proof that, in isolation, population growth is not a magic potion for property price growth. Data from ABS confirms that Tasmania’s population grew by an average of 0.8% per annum, the lowest of all states and well below the national average of 1.7% per annum.
Tasmania’s north performed particularly well. Kentish (32nd), Burnie (59th), Devenport (113th), Launceston (87Th), and West Tamar (153rd) were strong performers. 
<a href="/images/2015/10/02/StateScorecard_Tas.1.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2015/10/02/StateScorecard_Tas.1.JPG" alt="">
SIMON PRESSLEY IS MANAGING DIRECTOR OF <a href="https://www.propertyology.com.au/" target="_blank">PROPERTYOLOGY</a>, AN REIA HALL OF FAME INDUCTEE, PROPERTY MARKET ANALYST, ACCREDITED PROPERTY INVESTMENT ADVISER, AND BUYER’S AGENT. PROPERTYOLOGY WORKS EXCLUSIVELY WITH PROPERTY INVESTORS TO PURCHASE PROPERTIES IN STRATEGICALLY CHOSEN LOCATIONS ALL OVER AUSTRALIA.
 
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Tasmania’s property market scorecard: Simon Pressley

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In spite of Sydney’s recent boom, property markets in the central western New South Wales region of Orana have performed better than its big brothers in metropolitan Sydney.
Propertyology recently completed a 3-month study to compare the historical property market performance of each of Australia’s 550 local government authorities between 2000 and 2014. Given that some property markets have higher rates of growth and others have higher rental yields, Propertyology calculated the ‘total return’ (average annual growth rate plus rental yield) and we then ranked the LGA’s from 1 to 550 based on this performance.
Four of the LGA’s from the Orana region featured in Australia’s Top 40% for property market performance over the last fifteen years. None of the forty-three LGA’s from Greater-Sydney claimed such status.
Cobar was the region’s best performed property market, ranked a very impressive 15th out of 550 LGA’s in Australia. The median house value of $227,500 as at December 2014 has increased by an average of 10% per annum from $45,000 at the state of 2000. Average rental yields as at December 2014 were 6.8%. 
Cobar’s economy is heavily influenced by mining, specifically the diverse range of metals such as gold, copper, zinc, silver and lead. The average age of 35 is below the 37 national average. It’s a worker’s town and the $1,259 per week average household income is better than the $1,234 national average, and housing is significantly more affordable than big cities.
The LGA of Wellington produced an equally impressive result, ranking 30th overall. Narromine (154th) and Dubbo (217th) also featured in the best 40% of Australian property markets over the fifteen year period 2000 to 2014. 
The Orana region covers more than one quarter of NSW’s total land mass. Fertile soils, plentiful water supply, and natural resources are in the region’s economic DNA of agriculture, mining, and tourism.
With quality infrastructure including tertiary education campuses, high class health facilities, and a large retail sector, Dubbo is the primary service centre for the 120,000 population region. For the price of a typical house in Greater-Sydney one could today buy three houses in Dubbo where the median house price grew from $115,000 to $312,130 over the last fifteen years and the average rental yield was 5.7%.
Dubbo also won the battle of regional rivalry with Orange, which ranked 351st (amongst Australia’s middle 20%). 
Greater-Sydney’s best performing LGA over the last fifteen years was Blacktown, ranked 276th.
<a href="/images/2015/09/22/Dubbo1-2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/09/22/Dubbo1-2.jpg" alt="">
Simon Pressley is Managing Director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, REIA Hall of Fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent.
 
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 Central western NSW Property Scorecard: Simon Pressley

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GUEST OBSERVER
The property markets of ten out of the thirteen local government authorities (LGAs) which make up the New South Wales region of Northern Inland are ranked in Australia’s Top 30% property markets over the last fifteen years.
Gunnedah and Liverpool Plains were the equal best performing markets in the region with a national ranking of 38th out of the 550 LGA’s in Australia. 
<a href="/images/2015/08/24/Screen%20Shot%202015-08-24%20at%203.14.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/24/Screen%20Shot%202015-08-24%20at%203.14.32%20PM.png" alt="" width="545" height="495">
The median house price in Gunnedah increased from $80,000 at the start of 2000 to $290,000 by the end of 2014. The average annual growth rate of 9.6% plus the 5.8% rental yield equates to a total annual return of 15.4%.
Liverpool Plains’ median house price increased by an average of 7.9% per annum and its average rental yield is 7.5%.
Propertyology conducted a study to compare the historical property market performance of each of Australia’s 550 local government authorities between 2000 and 2014. Given that some property markets have higher rates of growth and others have higher rental yields, Propertyology calculated the ‘total return’ (average annual growth rate plus rental yield) and we then ranked the LGA’s from 1 to 550 based on this performance.
Glen Innes (ranked 70th), Narrabri (49th), Moree Plains (81st), Guyra and Inverall (equal 92nd) all featured in Australia’s Top 100.
Tamworth had the highest population growth rate in the region – 1.1% per annum for the last ten years compared to the 1.6% national average. Propertyology regards Tamworth as an exceptional strong regional service centre with an economy which is comparable to capital cities in regards to industry diversity. Tamworth’s property market was equal 163rd (with Uralla), making it amongst the best 30% based on overall historical performance for the last 15 years.
Tenterfield (107th) and Armidale (173rd) out of 550 also performed exceptionally well.
Propertyology’s study concluded that population growth doesn’t have the big influence on overall return as many think. The historical evidence shows numerous locations performed strongly in spite of modest, or even no, population growth. For example, Moree Plains’ population declined by an average of 0.6% per annum and both Narrabri and Liverpool Plains had zero population growth, yet they all performed better than each of the 43 LGA’s in Greater-Sydney. Affordability and lifestyle are the common denominators.
The Northern Inland region contains locations which tick a lot the boxes that Propertyology looks for when helping mum-and-dad investors to take advantage of the many opportunities that Australian property markets have to offer.
Gwydir was the region’s worst performing property market, ranked 417th.
Simon Pressley is Managing Director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, REIA Hall of Fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent.
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Northern inland NSW property scorecard: Simon Pressley 

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Since the winding back of the federal government’s post-GFC stimulus package, Australian property markets have broadly produced underwhelming returns.
Over the last two years, Sydney and Melbourne have been strong. Conversely, Perth and Darwin markets are receding and it is likely to be some time before the clouds lift.
Approximately 70% of properties throughout Australia are worth much the same today as they were five years ago.
Recent jobs data for Sydney and Melbourne has been impressive an I believe that there will be further growth in to the New Year, albeit at more moderate levels than we’ve recently seen.
First home buyers who are concerned about being squeezed out of Sydney and Melbourne markets might reconsider what they are wishing for.
We’ve observed a refreshing trend wherein more people are realising that rent-money isn’t necessarily dead-money.
Deposit monies can be made to work harder through investing it in one of the (strategically-chosen) 9.6 million properties across the country as opposed to limiting the potential return on investment by choosing a property that must meet the specific personal requirements of a family home.  
While our research provides us with great confidence about the outlook for Sydney’s economy, the lack of housing affordability will result in lower rates of growth over the medium term compared to many other locations.
Melbourne is a different story; I have consistently stated we have considerable concerns about the impact which the closure of three car manufacturing plants will have on Melbourne’s market from late-2016 onwards.
Record low interest rates combined with the FOMO (fear-of-missing-out) effect amongst Sydney and Melbourne residents has resulted in heightened investor activity.
A large majority of client enquiries received over the last six months have been from southern-based investors looking to invest in Brisbane.
While we believe Brisbane’s outlook is sound, its economy is not as robust as Sydney and Melbourne.
We have done some investing in Brisbane however, Propertyology has been actively helping investors to get in to alternative markets around Australia that we believe have better potential.
Generally speaking, market fundamentals across the country are sound although the missing ingredient continues to be confidence.
Building approval data from the last couple of years have been at record levels and most of the new supply is focused on capital cities. This, combined with APRA enforced tighter credit conditions, is likely to result in moderated rates of price growth. 
An eventual reduction in property transaction volumes will mean lower taxation revenues for all levels of government. Regulators appear to have over-reacted by applying across the board policy changes in attempt to de-stimulate markets in 30% of the country (Sydney and Melbourne) whereas the other 70% of the country would actually benefit from stimulus.
With the level of investor stock expected to rise in Australia’s biggest cities pressure on rents is likely to ease and rental yields will soften.
Four of the six cities which Propertyology is currently investing in are strong regional locations which have a diverse mix of industry drivers, very affordable housing, and controlled rates of supply.
Whilst Propertyology does not publicly disclose exactly where we are investing, we believe that the stronger markets over the medium term will contain specific industries within their economic profile. These include agriculture, international students, tourism, manufacturing of premium goods, health, and professional services.
 
Simon Pressley is Managing Director of Propertyology, a REIA Hall Of Fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent. <a href="https://www.propertyology.com.au/more-than-a-buyers-agent/" target="_blank">Propertyology works exclusively with property investors</a> to purchase properties in strategically chosen locations all over Australia.
 
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Fear-of-missing-out investor activity driving Spring outlook: Simon Pressley

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Western Australia contains Australia’s two best performed property markets and four in the top ten. Since the year 2000, the property markets of the local government authority of East Pilbara (Newman) and Port Hedland have performed better than any other market in Australia, while Capel and Kwinana ranked ninth and tenth.
Propertyology conducted a study to compare the historical property market performance of each of Australia’s 550 local government authorities between 2000 and 2014. Given that some property markets have higher rates of growth and others have higher rental yields, Propertyology calculated the ‘total return’ (average annual growth rate plus rental yield) and we then ranked the LGA’s from 1 to 550 based on this performance.
132 of the total 550 Australian LGA’s are in Western Australia. Eleven capital city LGA’s and 19 regional LGA’s were ranked in Australia’s Top 100. The regional LGA’s include Derby (17th), Roebourne / Karratha (18th), Collie (23rd), Wyndham (30th), Carnarvon (43rd), Murray (64th), and York (92nd). Geraldton (135th), Broome (123rd), and Mandurah (117th) also ranked amongst Australia’s best 25%.
Whilst there will always be a segment of Australia’s population who frown upon investing in mining communities the indisputable facts are that a large proportion of Australia’s best performed property markets over the last 15 years have a mining flavour within their economy. WA’s iron ore and gas sectors were the prominent growth drivers, especially during the period 2004 to 2012.
In spite of 16.6% and 13.9% declines in median house values in Newman and Port Hedland, respectively, during 2014 they are still streets ahead of the rest of the country. Double digit price growth occurred in nine of the last fifteen years. Over the nine year period to December 2012, median house values increased by 9.1 and 5.5 times, respectively. And, even though there has been a spike in vacancy rates of late, rental yields remain well above average.
Kwinana is the highest ranked capital city LGA in Australia for total return over the period 2000 to 2014. The affluent Peppermint Grove ranked 184th.
Perth was the second best performing capital city over the 15-year period (behind Darwin). The median house value for Greater-Perth has increased from $248,583 as at the start of 2000 to $898,844 by December 2014. Over the 6 year period to December 2007, Greater-Perth’s median house value increased 2.89 times. 
You can view an infographic for the entire Western Australian Scorecard here.
<a href="/images/2015/08/13/StateScorecard_WA.1.JPG" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/13/StateScorecard_WA.1.JPG" alt="" width="559" height="551">
 
SIMON PRESSLEY is managing director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, a full-time property market analyst, accredited property investment adviser, and Australia’s (REIA) Buyer’s Agent of the Year (2012+2013+2014).
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Western Australia’s property market scorecard 2000-2014: Simon Pressley

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While some of Adelaide’s fundamentals are solid, a big question mark hangs over an important industry sector. A distinct lack of economic drive continues to underwhelm. All things being equal, Adelaide’s property market is likely to follow a steady-as-she-goes path.
Greater-Adelaide’s average annual growth in median property values of 8.1% (houses) and 8.3% (apartments) for the last fifteen (15) years compares to Australia’s capital city average of 8.4% and 7.6%, respectively. The best performing Adelaide local government authorities over the last fifteen years were Port Adelaide Enfield (9.2%), Salisbury (9.0%), Campbelltown (8.8%), Marion (8.8%), Onkaparinga and Playford (both 8.5%).
With median house and apartment values of $533,000 and $333,000 respectively accommodation in Adelaide is the second most affordable of all Australian capital cities (after Hobart). This low entry price and the controlled rates of new housing supply meet two important investment fundamentals.
As strange as this may sound, the opening of the redeveloped Adelaide Oval in early 2014 played a significant role in creating an ‘energy’ which has improved Adelaide’s general sentiment.
Fundamentals like these plus a low interest rate environment has been the catalyst for growth in 2014 median property values of 6.1% (houses) and 4.0% (apartments). 
Adelaide’s 1.22 million people represents 72% of the entire state’s population. There are approximately 530,000 dwellings in Greater-Adelaide.
The future for Adelaide’s property market rests in the fate of its economy. South Australia’s key industries are manufacturing, agriculture, mining, and tourism. It also has a significant representation of defence force personnel.
Significant concerns beckon for manufacturing in the state. According to a report produced by University of Adelaide, 24,000 jobs will be lost in South Australia as a result of closures of car manufacturing plants by Ford (2016), Holden and Toyota (both 2017). A cloud also hangs over the careers of thousands of employees at Defence Material Organisation (DMO) and Australian Submarine Corporation (ASC) which play a major role in the manufacturing and maintenance of Australia’s military fleet.
A federal government white paper on Australia’s defence force published in 2011 flagged unprecedented levels of investment in military fleet expansion plus an increase in personnel; Adelaide was to be the primary beneficiary. Subsequent federal budget pressures and Australia’s obvious inability to compete on price with international manufacturers of equipment such as submarines means that neither of these bold targets would come close to being realised.
A significant economic boost is needed to increase demand for goods and services in South Australia. While there is an abundance of opportunities to leverage its agriculture and tourism industries off the Asian Century there is nothing tangible at present to suggest that prosperity is just around the corner.
South Australia’s unemployment figures have consistently been trending above the national average for some time. The job creation data for Greater-Adelaide contrasts the impressive 246,121 jobs created in 2011 to a net jobs loss of 71,813 in 2014. The north and west of Adelaide have the highest unemployment rates. 
Adelaide’s largest infrastructure project is the $2.1 billion Royal Adelaide Hospital. Once completed in 2016, an estimated 14,000 people will occupy the new medical precinct and adjoining university in the north-west corner of the CBD.
The $1.5 billion Adelaide Riverbank project is likely to commence in 2016. This major urban renewal project will further position the inner-north as a world class entertainment precinct with an expanded Festival Centre, an upgrade of Adelaide’s casino, new hotel, restaurants, and parking.
Construction on the new $900 million 3-lane super highway along South Road will commence this year. The project will reduce congestion along the southern corridor once completed late-2018.
The only other large project is the $1 billion expansion of the Adelaide Airport. In January 2015, the federal government signed off on funding for the project which includes increased terminal capacity, a 250-room hotel, and office complexes. 8,500 people already work in the airport precinct (the state’s largest employer); the expansion is expected to increase this to 17,500 by 2020.
Aside from these major infrastructure projects, the only thing currently on the horizon to stimulate Adelaide’s economy is the possible expansion of the Olympic Dam mine. Only time will tell whether BHP, the world’s biggest mining company, will finally bite the bullet after 30 years of planning and give the green light to the Olympic Dam mining expansion to create the World’s biggest mine. If this ever did occur there is potential for more than 10,000 new jobs to be based in Adelaide, directly working for BHP and indirectly providing support services.
The long term subdued nature of Adelaide’s economy is directly reflected in South Australia’s modest population growth figures – an average of 1.0 % per annum over the last decade compared to a 1.7% national average. 
When Propertyology zoomed the microscope in for a closer look at population figures of the eighteen (18) individual LGA’s which make up Greater-Adelaide, it became apparent that the highest growth is in the LGA of Adelaide City (3.8%). 
Building approval data also shows that the extra demand for accommodation in Adelaide City is being adequately supplied by a big spike in apartments (1,306 apartments approved during the eight months from July 2014 to February 2015). Hindmarsh and Woodville are two other locations with a notable increase in apartment approvals.
The next biggest increases in population growth have been further out in Playford LGA (2.2%), Port Adelaide (1.7%), Gawler (1.7%), and Salisbury (1.6%). 
Population growth is one thing however, employment opportunities is the biggest piece of the property investment puzzle. 9,000 of the job losses from the car manufacturing sector will be to residents of the northern Adelaide LGAs of Salisbury, Playford, Tee Tree Gully, and Port Adelaide Enfield. Residents of the Onkaparinga LGA in the south of Adelaide are also expected to lose 3,000 jobs from the demise of the car manufacturing industry. The DMO and ASC defence force factories are located in the suburb of Osborne. 
While Adelaide’s uninspiring economy is likely to continue to limit housing demand, building approval data shows that housing supply has been kept in check. There are approximately 530,000 existing dwellings in Greater-Adelaide. Generally speaking, between 6,000 and 8,000 new dwellings are approved each year. The highest volume of new housing stock are in Paradise, Gawler South, Craigmore, Davoren, Angle Vale, Enfield, Northgate, Windsor Gardens, Parafield Gardens, Salisbury North, Aldinga, and Seaford.
With housing affordability as the pillar of Adelaide’s property market, and provided housing supply remains in check, Propertyology expects the Adelaide market to produce steady growth again in 2015. 
Unfortunately, the Adelaide market beyond 2016 looks somewhat gloomy. The pending challenges with Adelaide’s manufacturing sector are significant; government intervention is required. Propertyology’s current expectations is that employment opportunities are likely to significantly diminish and pressure on property values will go with it. 
<a href="/images/2015/08/10/Adelaide_CarManufacturing_LGAs.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/10/Adelaide_CarManufacturing_LGAs.jpg" alt="">
 
Simon Pressley is Managing Director of <a href="https://www.propertyology.com.au" target="_blank">Propertyology</a>, a REIA Hall Of fame Inductee, property market analyst, accredited property investment adviser and Buyer’s Agent.
 
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Adelaide property market just steady as she goes: Simon Pressley

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$224,387 – that was the price of a typical house in Greater-Melbourne at the start of this Century. Scary, isn’t it? So, how has Melbourne’s property market performed since then and which have been Victoria’s best performers over the last fifteen years?
With a population of 4,085,849, Greater-Melbourne is fast catching up to Sydney. The 2.0% average annual population growth rate is above the 1.7% national average.
Melbourne’s median house value has increased from $224,387 to $683,599 during the fifteen year period. 2000-2014, 2001-2003, 2007 and 2010 all produced double-digit price growth.
As impressive as this data sounds, the average annual growth rate of 8.3% per annum is just below Australia’s combined capital city rate of 8.4% over the period.
Propertyology has recently completed an extensive study of the performance of property markets for each of Australia’s 550 local government authorities (LGAs). Given that some locations have higher growth and others have better yields, we’ve ranked the LGA’s from 1 to 550 based on their total return (average annual growth rate plus rental yield).
The regional town of Ararat (median house value $190,000) was Victoria’s best performing LGA and ranked an impressive 27th across all of Australia. And, if that surprises you, you’ll probably be shocked to hear that Ararat’s population actually declined from 11,510 to 11,184 over the last decade. Corangmite and Southern Grampians were equally surprising.
In stark contrast, the highly desirable location of Richmond (LGA of Yarra, median house value $934,000) experienced population growth above the national average yet was ranked 318th in Australia for total property return. ‘Affordability’ trumps ‘population growth’!
The best performing Victorian capital city LGA was Greater-Dandenong which ranked just scraped in to Australia’s Top 20% (98th out of 550 LGAs). The LGA of Knox was next best at 246th.
<img src="/images/2015/06/22/StateScorecard_Vic.1.jpg" alt="">
 
Every one of Victoria’s Top 10 performing LGA’s are regional locations. 
SIMON PRESSLEY is managing director of Propertyology, a REIA Hall Of fame Inductee, property market analyst, accredited property investment adviser, and buyer’s agent.
<a href="https://www.propertyology.com.au/more-than-a-buyers-agent/" target="_blank">Propertyology works exclusively with property investors</a> to purchase properties in strategically chosen locations all over Australia.
 
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Victoria’s 15 year property market scorecard: Simon Pressley's hits and misses

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Here is a fact which will play with the minds of many property investors: the northern inland New South Wales rural township of Narrabri experienced zero population growth over the last ten years yet its property market performed significantly better than the Melbourne local government authority (LGA) of Wyndham, which had the fifth highest population growth in Australia. 
There is a plethora of ill-informed claims which so-called property gurus make to justify their reasoning for investing in a particular location; investing where population growth is highest is one such claim. And, I’m here to tell you that this claim is flawed!
Now, before you start questioning my sanity, let me first say that historical evidence – facts – back up my statement!
Propertyology has recently concluded a comprehensive study of the historical property market performance of each of Australia’s 550 local government authorities (LGAs) since the turn of the century. 
Someone who purchased a typical 3-bedroom house in Narrabri in 2000 would have paid $96,250. That property would have subsequently grown in value by an average of 8.1% per annum over the last 15 years and today would be worth $287,500. When adding the current rental yield of 6.9%, the total return of Narrabri is a handsome 15.0%. The latest data from ABS shows that Narrabri’s 2014 population of 13,764 was 20 people fewer than 10 years earlier. Yet, in spite of the completely stagnant population, Narrabri is officially ranked the 51st best performer out all LGAs in Australia (top 10% in the country).
Population Growth Rate : Property Return (growth + yield)
Ararat (Vic)-0.3%15.0%
Central Goldfields (Vic)0% 14.1%
Corangmite (Vic)-0.6% 13.7%
Hinchinbrook (Qld)-0.3% 13.9%
Moree Plains (NSW)-0.6% 14.4%
Narrabri (NSW)0% 15.0%
North Burnett (Qld)-0.1% 15.9%
Southern Grampians (Vic)-0.6% 14.5%
York Peninsula (SA) -0.4% 14.1%
Population Growth Rate : Property Return (growth + yield)
Ararat (Vic)-0.3% 15.0%
Central Goldfields (Vic)0% 14.1%
Corangmite (Vic)-0.6% 13.7%
Hinchinbrook (Qld)-0.3% 13.9%
Moree Plains (NSW)-0.6% 14.4%
Narrabri (NSW)0% 15.0%
North Burnett (Qld)-0.1% 15.9%
Southern Grampians (Vic)-0.6% 14.5%
York Peninsula (SA) -0.4% 14.1%
Narrabri’s performance is no fluke. There are in fact 9 locations in the Top 100 (Australia’s best 20%) which have experienced zero (or even negative) population growth over the last decade.
But wait. Here’s some further facts to challenge the credibility of those property gurus. 
Did you hear the one about capital cities being better investments than regions? The facts say that 69 of Australia’s Top 100 property markets over the last 15 years have a population of LESS than 100,000 people.
11 of Australia’s Top 20 property markets (and 42 of the Top 100) had a population growth rate which was LESS than the Australian average.
11 of Australia’s Top 20 property markets have a population of less than 25,000 people.
Average annual population for the City of Hobart over the last decade of 0.4% was well below the capital city average of 1.8%. In contrast, Hobart’s average annual price growth of 9.2% is superior to the capital city average of 8.5%.
Don’t get me wrong, population volume and population growth are considerations for selecting a sustainable location to invest in; an increase in population means higher demand for housing. However, if supply is equally matched through broad acre land release and / or higher density then price growth will be constrained. LGA’s such as Melton VIC (6.3%), Boddington WA (6.2%), Melbourne City (5.5%), Whittlesea VIC (4.2%), Adelaide City (3.8%), and Canada Bay NSW (3.0%) all have very high population growth rates yet their total property returns relative to the national average is underwhelming.
Population growth is not the only driver. Affordability is a significantly bigger driver of property price growth than increasing population. The policemen and hairdressers in regional towns like Ararat and Gayndah probably earn just as much as the same workers in capital cities; yet the cost of accommodation is vastly different.
Population is one of over 30 factors which astute property investors will consider when selecting a location to invest in. It is the sum of all these factors which is important.
Propertyology periodically conduct studies like this to uncover the common-denominators of good and bad market performance. Propertyology then uses the findings from these studies to refine our selection criteria for suitable towns and cities across Australia.
Simon Pressley is Managing Director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, REIA Hall of Fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent. 
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Australia’s population over-achievers: Simon Pressley

<html><body>
Improvements to Cairns’ economic mix has resulted in increased employment opportunities and improved confidence in the region. This has directly contributed towards a 31% increase in the number of property transactions over the last two calendar years. 
In the past, Cairns’ economy had been a one-trick-pony, riding the wave of tourism’s booms and busts. While tourism still plays a very important role today, the economy now offers diversity through agriculture, education, health care, and mining.
With a population of 160,000 people and 66,000 dwellings, Cairns is Australia’s eleventh biggest city. Over the last ten years, Cairns’ population has grown by 2.6% per annum compared to Brisbane’s 1.9% and Australia’s 1.7%.
There are a number of major projects which will improve infrastructure, amenities, and employment opportunities:
<ul>
<li>Rio Tinto South of Embley Project (Weipa) – $1.45 billion development of alumina mine, involves a new mine and processing plant. 950 jobs are expected to be created one Rio Tinto give the green light on construction jobs. A further 1275 direct jobs, and even more indirect jobs, are expected upon completion of the three year project. Most of the goods and services will be supplied by Cairns.</li>
</ul>
<ul>
<li>Cairns Airport - $1 billion redevelopment plan was approved March 2013 with a 20-year implementation.</li>
</ul>
<ul>
<li>Bruce Highway - $300 million major upgrades to improve access, including flood proofing. </li>
</ul>
<ul>
<li>Sheraton Mirage Resort - $200 million major refurbishment (a new six-star guest resort plus a new golf course).</li>
</ul>
<ul>
<li>Cairns Aquarium – $35 million new tourist attraction in Cairns CBD, set to open in July 2016.</li>
</ul>
<ul>
<li>Aquis Casino Resort - $8.15 billion integrated resort at Yorkeys Knob. Preliminary approvals are held however there are still a couple of hoops for Hong Kong billionaire, Tony Fung, and his team to jump through. Direct jobs during construction are anticipated to be 9,300; 10,000 jobs will be created upon completion</li>
</ul>
<ul>
<li>Aspial Corporation - $400 million CBD apartment complex consisting of six towers. The Singaporean developer will start construction mid-2015.</li>
</ul>
Too much new housing supply in 2005-2007, especially apartments, had an adverse impact on Cairn’s property market. 
The onset of the GFC proved to be the wake-up call that the construction industry needed. Supply has since been more controlled.
Vacancy rates have consistently been at or below 2% for a few years. There is a seasonal component to vacancy and unemployment rates which is directly linked to peak tourism seasons. 
Rental yields are currently 5.2% and 6.8% for houses and apartments, respectively.
Simon Pressley is Managing Director of <a href="https://www.propertyology.com.au" target="_blank">Propertyology</a>, a REIA Hall Of fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent. Propertyology works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.
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Cairns not a one-trick-pony: Simon Pressley

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

Simon Pressley

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