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GUEST OBSERVATION
Melbourne has defied the critics with better than expected post-GFC property price growth. The city boasts a wonderful cultural lifestyle, Australia's best town transport network, and year-round tourism.
But, is that enough to justify plonking money in to a market where the cost of accommodation is already significantly higher than two thirds of Australia?
A significant portion of Victorian government revenues over the last five to six years has been in the form of property-related taxes from an <a href="https://www.propertyology.com.au/wp-content/uploads/2014/04/2013.02.16_Propertyology_FieldOfDreams.pdf">over stimulated construction industry</a>.
<img src="/images/2015/01/30/pressley%20jan%2030%20one.jpg" alt="">
We have been increasingly concerned about an oversupply implication on Melbourne property markets. The data in our building approvals graphic shows that property supply has been significantly higher over the last five years than previous trends.
To date, the higher supply has been counter-punched by higher demand in the form of a swing in population growth. Population growth rates have come from two main sources: <a href="https://www.propertyology.com.au/wp-content/uploads/2014/04/InterstateMigration_2014-06.jpg" target="_blank">net interstate migration</a> and the international student market.
We believe that Melbourne’s property market is very delicately poised. We question the sustainability of Victoria’s ‘we’ll keep building and they’ll keep coming’ strategy. The market has been over supplied for some time. Rental yields are already the lowest in the country and vacancy rates will rise above where they are now.
In our opinion, Victoria has some significant economic challenges on the horizon. The state has a high exposure to manufacturing and the closure of Ford, Holden and Toyota during 2016-17 will inflict a lot of pain. According to a study conducted by University of Adelaide, 98,000 Victorian jobs will be lost. The city councils with the biggest exposure are Melbourne City (15,000), Hume (9,000), Dandenong (7,000), Hobsons Bay (6,000) and Geelong (5,000).
A new state government was elected in to office in November 2014 which resulted in the scrapping of one of the state’s very few major infrastructure projects – the $18 billion East West Link transport project.
With a waning manufacturing industry, fewer state-owned assets than the likes of New South Wales and Queensland, and a small infrastructure pipeline it remains to be seen how the jobs will be created to support a growing population.
Will the new government play the ‘just expand the public sector’ card?
<img src="/images/2015/01/30/pressley%20jan%2030%20three.jpg" alt="">
Even with the higher population growth rates, the rates of property supply are enough to be concerned about. Things could become quite ‘ugly’ if intervention doesn’t create the extra jobs needed to support population growth. We might see interstate migration trends do an about face over the next couple of years.
Simon Pressley is managing director of Propertyology, a 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 </a>works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.
<h2>How to purchase high-performing investment properties: a free Propertyology eBook</h2>
 
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spressley-sBoeMhannA

Melbourne oversupply is an increasing concern: Simon Pressley

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GUEST OBSERVATION
Much media attention has been centred on Brisbane as the next property hotspot.
With an inability to distinguish ‘reading’ from ‘research’, more and more property investors follow like sheep thinking all roads point to Brisbane, Logan, or Deception Bay.
For the record, we do believe that parts of Brisbane offer good investment potential over the medium-long term; <a href="https://www.propertyology.com.au/your-results/" target="_blank">we’ve helped many investors to purchase properties in Brisbane</a> over the past 12 months. That said, we’ve purchased a lot more properties in alternative locations - interstate and other parts of Queensland – because we feel confident that the potential is even better.
Over the last decade, Brisbane was a major beneficiary of net interstate migration. Post-global financial crisis (GFC), the rate of growth has been easing. We continues to monitor this path.
Brisbane had the biggest pre-GFC build up of oversupply out of all Australian capital cities. This, plus the infamous 2011 floods, resulted in property values declining by a combined 15% during 2011-12.
<img src="/images/2015/01/14/pressley%20jan%2014%20on3.jpg" alt="">
A poor climate for construction finance during 2009-2012 meant lower supply and a return to equilibrium.
<a href="https://www.propertyology.com.au/wp-content/uploads/2014/04/Supply-and-Demand-State-by-State_2014.11.pdf" target="_blank">Building approvals</a> are now at record levels again so pockets of oversupply and <a href="https://www.propertyology.com.au/inner-city-brisbane-not-spot/" target="_blank">investor no-go-zones</a> will catch out less informed property investors over the next couple of years. The CBD, West End, South Brisbane, Woolloongabba, Fortitude Valley, Bowen Hills, Newstead, Hamilton, Toowong, Nundah, Chermside, Fitzgibbon, North Lakes, The Gap, Calamvale, Narangba, Murrumba Downs, Hills District are all destined for high levels of new supply.
The jobs outlook for Brisbane is healthier than given credit. In November 2014, Brisbane’s unemployment rate of 5.8% compared favourably to the state and national rates of 6.7% and 6.1%, respectively.
<img src="/images/2015/01/14/pressley%20jan%2014%20two.jpg" alt="">
Brisbane City Council, Australia’s biggest LGA, has been proactive at engaging to do business with Asian countries. As a sign of the confidence that some private investors have in Brisbane, there are several new hotel developments which have added a combined 500 new rooms.
There are some significant major projects currently underway, including a $1.35 billion airport expansion, $1 billion gateway upgrade, $3 billion RNA showgrounds redevelopment, and $1.1 billion Moreton Bay Rail Link.
Pipeline proposals include a <a href="https://www.propertyology.com.au/brisbane/">$5.2 billion BaT Tunnel</a>, a $3 billion plus integrated resort and casino, and an expanded medical hub at Herston.
Exposure from November’s G20 Summit and the upcoming Commonwealth Games will also benefit Brisbane’s economy.
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).
<h2>How to purchase high-performing investment properties: a free Propertyology eBook</h2>
 
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Brisbane's looming oversupply will catch out poorly informed investors: Simon Pressley

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GUEST OBSERVATION
Located between the two large urban footprints of Brisbane and Gold Coast, property investors are often attracted to Logan’s low property entry price and higher rental yields. 
Demand for accommodation in Logan has been high based on its average annual population growth rate of 2.3% over the last decade - superior to the Australian average of 1.7%. This trend appears to be holding firm.
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="147">
Population Growth
</td>
<td valign="top" width="131">
2003-2013
</td>
<td valign="top" width="114">
2008-2013
</td>
</tr>
<tr>
<td valign="top" width="147">
 
</td>
<td valign="top" width="131">
(10yrs)
</td>
<td valign="top" width="114">
(Post-GFC)
</td>
</tr>
<tr>
<td valign="top" width="147">
Australia
</td>
<td valign="top" width="131">
1.7%
</td>
<td valign="top" width="114">
1.8%
</td>
</tr>
<tr>
<td valign="top" width="147">
Queensland
</td>
<td valign="top" width="131">
2.4%
</td>
<td valign="top" width="114">
2.1%
</td>
</tr>
<tr>
<td valign="top" width="147">
Logan
</td>
<td valign="top" width="131">
2.3%
</td>
<td valign="top" width="114">
2.2% 
</td>
</tr>
</tbody></table>
<img src="/images/2015/01/12/logan%20jan%2012.jpg" alt="">
Other than a spike in building approvals in 2010-11, Logan’s housing supply has been consistent with population demand.
<a href="https://www.propertyology.com.au/free-reports-articles-archive/" target="_blank">Our research</a> confirms that locations where developers are concentrating most on future supply include Jimboomba, Loganlea, Browns Plains, Waterford, and Beenleigh.
What Logan lacks most is sufficient local jobs. An unemployment rate of 6.4% is significantly above Brisbane’s 5.1%. According to Census data, of the 300,667 population 123,619 are employed although only 72,745 of these jobs are within Logan themselves.
The region’s biggest employment nodes are Springwood and Browns Plains and both catchments battle significant traffic congestion.
A largely blue-collar demographic, Logan’s biggest industries are:
<ul>
<li>Manufacturing ($4.9 billion output per annum),</li>
<li>Rental, hiring and real estate services ($2.4 billion),</li>
<li>Construction ($2.3 billion),</li>
<li>Retail ($1.1 billion), and</li>
<li>Wholesale trade ($1.1 billion).</li>
</ul>
Transport and logistics, food manufacturing, and health care have been described as ‘emerging industries’ although there is very little tangible progress.
While the local government has been gallant in trying to improve its reputation with a ‘City Of Choice’ campaign, it still has a high rate of crime and a distinct lack of attractions.
With the supply-demand equilibrium expected to continue, I believe that Logan will to continue to performer steadily although better investing can be found in select pockets of Brisbane.
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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Is it time for Logan to make its mark?

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GUEST OBSERVATION
I expect the Gold Coast market to surprise many pundits and become one of Australia’s best performers during 2015-2017. The storm clouds are gone, the sun is due to shine – and quite brightly. However, there is still some turbulence in the waters.
Tourism drives the Gold Coast’s economy. So, when the global financial crisis (GFC) hit in late-2008, consumer sentiment disappeared, jobs were shed and its property market suffered.
The Gold Coast’s only other industry of note is construction and a significant pre-GFC over-supply compounded things for its property market. In spite of having population growth (3.1% per annum during 2003-2013) of almost double that of the national average (1.7%), the Gold Coast was the worst performing market in Australia for a few years.
<img src="/images/2015/01/01/pressley%20jan%205%20one.jpg" alt="">
As the above graphic shows, building approvals declined considerably post-GFC and a lot of the surplus supply has now been soaked up. Vacancy rates have tightened. Sales volumes and property prices are already growing.
Consumer and business sentiment have improved over recent years. The new Gold Coast hospital plus a $1.8 billion passenger rail project have been good for jobs growth. Work has commenced on a $670 million expansion of Pacific Fair which will make it the largest shopping centre in Queensland.
The $500 million athlete’s village for the 2018 Commonwealth Games and a $1 billion luxury hotel by Chinese developer, Ridong, are other major projects.
<img src="/images/2015/01/01/pressley%20jan%205%20two.jpg" alt="">
The tourism boom which we predicted two years ago has arrived, meaning things will only get better for the Coast.
A decision on a proposed $7 billion mega resort is due in early-2015. An economic impact statement released by the proponent in September 2014 suggests that, if completed, tourism revenue could increase from $1.15 billion per annum to $8.9 billion; 15,000 jobs could be created.
By the end of 2015, I believe the data will show Gold Coast to have been one of the strongest markets in Australia.
But don’t be fooled, leopards don’t change their spots!
Gold Coast Mayor, Tom Tait, is a developer by trade and he is very pro-construction. There have been a number of large building applications lodged during the last 12 months. Significant oversupply is expected again in a few years time. Areas with a high concentration of new supply will include Southport, Coomera and Labrador.
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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Sun set to shine on Gold Coast property market

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GUEST OBSERVATION
Why have South East Queensland (SEQ) property markets been attracting such an increasing amount of positive press over the last year or so?
Every Tom, Dick and Harry seems to have an opinion, however few people can actually articulate any meaningful comment on what is likely to drive SEQ markets.
About a year ago, a couple people with high profiles made a comment along the lines of ‘Sydney and Melbourne markets have already moved so Brisbane must be next’. Such gibberish implies that markets perform like well-behaved children who take it in turns playing with their toys.
Other headline chasers try to sound intelligent by quoting generic stats such as changes in median property values, auction clearance rates, or people attending open homes and want to pass it off as ‘quality research’. Yawn!
People, especially investor, follow like sheep. Media momentum builds and, suddenly, a growing percentage of property investors are thinking ‘all roads point to Brisbane, Logan, Ipswich, or Deception Bay’.
Comforted by the fact that everyone appears to be saying the same thing, investors all around country have felt that they’re on a winner and have set about finding an expert with local knowledge to help them secure their own piece of south-east Queensland ‘gold bullion’.
The Propertyology team certainly isn’t going to reject the increased level of new business enquiry from this herd mentality. And, while we do think that parts of south-east Queensland have a healthy outlook, investors are often shocked when we remark that we feel that we can make their investment dollar work harder in locations outside of SEQ - interstate and other parts of Queensland. Be the shepherd, not a sheep!
Much of the rhetoric which gets reported on property markets relates to matters affecting housing demand. I recently conducted a keynote presentation at the Australian Property Institute Conference and discussed why housing supply and sentiment play an equally important role in fluctuations of property prices.
Since the turn of the century, equilibrium was maintained between Queensland dwelling construction levels (supply) and demand (population growth).
<img src="/images/2014/12/15/pressey%20dec%2015%20one.jpg" alt="">
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="160">
Population Growth
</td>
<td valign="top" width="141">
2003-2013
(10yrs)
</td>
<td valign="top" width="119">
2008-2013
(Post-GFC)
</td>
</tr>
<tr>
<td valign="top" width="160">
Queensland
</td>
<td valign="top" width="141">
2.4%
</td>
<td valign="top" width="119">
2.1%
</td>
</tr>
<tr>
<td valign="top" width="160">
Australia
</td>
<td valign="top" width="141">
1.7%
</td>
<td valign="top" width="119">
1.8%
</td>
</tr>
</tbody></table>
Whilst Queensland’s population growth rate is still above the national average, interstate migration is not what it used to be and growth rates have eased.
With the mining construction boom winding back, governments are looking at alternative measures to stimulate the economy. Incentives have been offered for new property purchases, more land has been released, and zoning changed. Australia is now in the midst of a construction boom.
Several locations will soon have considerably more housing supply than demand requires, followed by underperforming price growth and rental returns. The battle between ‘supply’ and ‘demand’ is on. Most sheep will end up in the wrong paddock!
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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Does South East Queensland really deserve all the attention?

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GUEST OBSERVATION
If there is one thing that I see on a daily basis that I get frustrated with it is that decision-making is a skill which few people have learned to do very well. And this, not one's salary or profession, is the primary reason why few people achieve anywhere near as much as they are truly capable of.
When taking on important projects, a lot of people's focus is too heavily weighted on how they can complete it at the lowest cost rather than focus on the outcome that they hope to achieve.
Good decisions are made with a clear mind and with a focus on 'why' you are doing it in the first place – the long-term objective as opposed to the current task. Tapping in to the best resources you can find, including input from someone whose core business is conducive to your longer-term objective, enhances decision-making quality. Regularity of good decisions is the cornerstone to success.
Getting something done is an accomplishment. Getting something done well is an achievement! Many people can lay claim to the accomplishment of buying a property. Fewer people have truly astute investment decisions on their list of achievements.
Those whose default behaviour is to save money ahead of doing something as well as they can are destined to compromise outcomes. We've all heard that saying "you get what you pay for". The first question that people ask when making enquiries about goods or services is "what does it cost?” when it should be “how can you assist me to achieve my objective?”
The client who appoints the accountant because he/she is the cheapest will never know that there were more creative strategies which would have saved them a lot of money.
I find it amusing when people chose to take that DIY option instead of paying a specialist.
Outsourcing to specialists creates more time to do more of the things that you are truly good at, enables you to make more money, and enhances the quality of your accomplishments.
The person who uses a DIY diagnosis for that constant sneeze and keeps going back-and-forth to the chemist, might have been able to overcome it very quickly from a trip to an allergy specialist – skill comes at a cost but the net result is usually worth it. A majority of property investors are like that DIY patient who never consults a true specialist!
There are only 24 hours in the day; it's what we do with them that counts! We can all make more money if we really want to but no one can make more time. No one!
If we want to achieve the very best that we are capable of for something that is important enough to do, then I suggest that's where the focus should be most, not on the easy option or the cost.
Instead of focusing on tasks associated with buying an investment property, focus on the primary objective of increasing your potential to make the most money possible. Are you a ‘property buyer’ or a ‘property investor’?
Article continues on the next page. Please click below.
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Seven common examples of poor decision-making made by property investors:
<ol>
<li>
Property selection Tax advantages and emotions dominate property selection decisions to the detriment of capital growth potential over the longer term. Hardly a day would go by without me hearing someone tell me that they want to buy a brand new property because of the extra tax incentives; or an attractive looking property to get a better tenant. A structurally sound established property, in a strategically chosen location, at a significantly lower entry-price has much more upside capital growth potential, whether it looks dated or beautiful. 
</li>
<li>
Building and pest inspections Why are some buyers so quick to terminate a purchase contract after an inspector discovers defects? The inspector’s job is not to comment on what they like; he / or she is only going to comment on the 1-2% of the property that might benefit from some best-practice attention. The long-term primary objective is to invest in a property in the right city, the right street, the most suitable dwelling style, and priced right. If you’ve already found that property and it happens to have several defects why would you be so keen to walk away? Good decision-making would be to explore how significant the defects are, the likely cost to fix them, and whether a deal could be done with the owner. What most see as risks, could actually be opportunities.  
</li>
<li>
House v apartment I wish I had a dollar for every time someone told me that they “don’t want to invest in an apartment because they don’t want to pay body corporate fees” or “land appreciates but buildings depreciate”. Narrow-minded statements such as these are living proof that too often people get distracted by small things which they don’t want at the expense of the real objective, the end result that they hope to achieve. The dwelling types within my own property portfolio have been strategically-chosen as a result of demographic and supply-demand research conducted within each city.  
</li>
<li>
Applying for an investment home loan The objective should be to get the most suitable type of loan, which compliments a professionally designed overall debt structure, has a strategy to deal with good debt and bad debt, and avoids cross-collateralising. In spite of this, the first question people usually ask is “what’s your interest rate?” A lot of borrowers are also creatures of habit who go back to the same bank because ‘it’s easier’. Banks are good at explaining features and benefits however their strategy skills generally leave a lot to be desired.  
</li>
<li>
Property management Property managers play an important role in helping investors to get the best out of their profit and loss statement. Why is it the first question investors ask is “what do you charge?” This is a classic example of how so many people lose sight of the primary objective - property management fees are only one line entry in the P&amp;L. When I interview property managers I enquire about office systems, staff turnover and ratios of properties to property managers. I ask questions about their processes to minimise vacancy periods and arrears, how they handle maintenance requests and I review samples of their rental advertisements. As with a majority of business decisions, it’s not so much as what a property manager charges, but what they do (or don’t do) for it.  
</li>
<li>
Organising insurance The point of having insurances is to protect ourselves from loss in the event of an unforeseen event. The focus should therefore be on what needs protecting, how much protection we need, and what the policy wording says that the insurer will / will not do in certain situations. When organising insurance, an overwhelming majority of people do little more than ring around and ask price-related questions (“what’s your premium, what’s your excess?”). How would you feel if a claim for flood or malicious damage was denied, or the payout following a major fire was insufficient to rebuild the entire house? If the insurer doesn’t come to the party at time of claim all of those insurance premiums that you’ve paid over the years are little more than a donation.  
</li>
<li>
Rental renewals Refusing to be flexible with the amount of rent charged without even contemplating current market forces is another example of poor decision-making which is all too common amongst property investors. What is the sense in insisting on a particular rental figure at the expense of a longer vacancy period? It is irrelevant how much rent you ‘want’, or how you justify it, unless the market is prepared to pay it. Astute property investors make good decisions through understanding that there are generally three factors which determine whether or not a property is rented: price, presentation, and promotion. Every market’s vacancy rates will fluctuate up and down from time to time and sometimes the best decision is to advertise the property for 5% less than your competition.  80% of something will always be more than 100% of nothing!
</li>
</ol>
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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Seven common examples of poor property investment decisions

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GUEST OBSERVATION
In our opinion, the single biggest driver of property markets is employment.
Australia was once renowned for its farming and ‘making stuff’. In 1985-86, agriculture and manufacturing represented 8.1% and 12.2% of total employment respectively in Queensland, whereas these industries now only represent 2.4% and 7.7% of all jobs.
Mining is a major revenue generator for government and business coffers, although it is not a big direct employer. Mining jobs have grown from 1.9% to 3.4% since 1985-86.
The biggest employers are tourism (419,100 Queenslanders are currently employed in retail trade and accommodation), health care (282,600), construction (230,700), manufacturing (178,500), and education (176,400).
The industries with the biggest employment growth since 1985-86 are health care (from 8.0% to 12.1%) and white collar professional services (3.8% to 7.1%).
Casting our mind to Australia’s core assets and the role which this country plays in the Asian Century, we believe that the industries with the largest potential for employment growth are:
<ul>
<li>Tourism (retail trade and accommodation)</li>
<li>Education (international students)</li>
<li>Construction (hotels, apartments, infrastructure, resorts, ports)</li>
<li>Health care (our aging population)</li>
</ul>
Australian towns and cities which have a strong presence in these industry sectors will have increasingly high demand for accommodation.
Specific to the state of Queensland, locations with these industry drivers include: 
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="188">
Tourism
</td>
<td valign="top" width="188">
Education
</td>
<td valign="top" width="188">
Construction
</td>
<td valign="top" width="188">
Health Care
</td>
</tr>
<tr>
<td valign="top" width="188">
Brisbane
Gold Coast
Townsville
Sunshine Coast
Cairns
</td>
<td valign="top" width="188">
Brisbane
Gold Coast
Townsville
Cairns
 
</td>
<td valign="top" width="188">
Brisbane
Gold Coast
Sunshine Coast
Cairns
Gladstone
Toowoomba
Mackay
Rockhampton
Ipswich
Logan
</td>
<td valign="top" width="188">
Brisbane
Sunshine Coast
Ipswich
 
</td>
</tr>
</tbody></table>
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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The Queensland locations with the largest potential for employment growth

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<div class="WordSection1">
GUEST OBSERVATION
Negative gearing is a form of financial leverage where the gross income generated by an investment is less than the cost of owning and managing the investment, including interest charged on the borrowings.The negative cash flow is then offset against personal incomes. 
</div>
Doesn’t negative gearing just help the rich get richer?
According to 2011-12 ATO statistics, there were 12,736,030 individual taxpayers in Australia and 1,897,668 (14.9%) of them owned one or more investment properties. 73% of property investors own one property and only 4% of investors own four or more properties. For a property to be negative geared there must be a significant debt against it (they don’t own it outright).
In other words, an overwhelming majority of investors are ordinary mums and dads; they are attempting to fund their own retirement, as opposed to being a burden on Australia’s taxation system via government-funded pension.
Doesn’t negative gearing reduce the amount of revenue available to governments each year?
A report produced by REIA in August 2014, mentioned that a total of $7,860 million in losses were claimed by Australian property investors in 2011-12. The ATO also charged extra taxes on the $5,939 million worth of investment property profits.
Should changes ever be made to negative gearing and results in fewer property transactions each year, governments would stand to lose a lot more tax revenue from stamp duties, infrastructure charges, land tax, construction industry payroll taxes, and more. The existing $71 billion (and growing) spent each year on tax-payer funded pensions and allowances will increase significantly. 
What impact would the removal of negative gearing have on Australia’s housing supply?
According to 2011 Census data, Australia has 9,117,003 residential properties and we are adding approximately 160,000 more each year. Negative gearing is a tax-policy linked to property – other policies include stamp duty, first home buyer incentives, tax rebates and incentives to purchase new property, land tax, and capital gains tax.
Tightening of any of these policies will directly influence consumer behaviour and become a disincentive to buying and holding property. As we’ve seen already with ‘new home building grants’, the introduction and removal of tax policies directly affects the construction industry (Australia’s biggest industry by direct and indirect jobs).
What about Australia’s social housing problem?
75% of residential properties in Australia are occupied by the owner. Of the remaining 25% that are rented only 5% are provided by governments. Governments can’t afford to fund social housing (some governments have actually been selling off parcels of properties in order to raise money for other reasons).
The National Rental Affordability Scheme (NRAS) is government admission of our social housing shortfall which governments can’t fund so they developed a policy designed to encourage others to do it for them. Removal of negative gearing would be a gross contradiction to this.
How might the removal of negative gearing affect Australia’s welfare system?
Australia’s financial literacy crisis is in our DNA - only 4% of people are financially independent by age 65. The federal government have said that we can't support our ageing population with our unsustainable reliance on tax-payer pensions. They have touted the possibility of the superannuation age increasing to 70. Stripping back incentives which encourage investment would only compound this country's problem.
Article continues on the next page. Please click below.
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Does negative gearing force property prices up and make it harder for first home buyers to get in to the market?
Property markets are affected by dozens of factors. The factors which affect property values the most are related to the general economy, employment, and credit policies, not tax policies). When property markets perform strongly, like they have in Sydney in 2013-14, it is not uncommon for segments of the community to blame investors for driving values up and making bit harder for others to get in.
Negative gearing has been in place for generations and it is no more responsible for Sydney’s property price growth in 2013-14 than it was for its flat-line performance from 2001 to 2008.
Doesn’t negative gearing make rents more expensive?
In July 1985, in response to claims that negative gearing was the primary cause of property rents rising uncontrollably, the Hawke government quarantined negative gearing. During the two years that the quarantine was in place, ABS figures show rents rose by an average of 22%. The policy was reversed in 1987 and rents still rose by 21% over the next two years. A similar trend occurred with property values. As mentioned previously, tax policies have a smaller impact on property markets (values and rents) than most people think.
What other potential impacts could occur if negative gearing was tinkered with?
Propertyology often describes property investment as a business – the business of providing accommodation – and the investor’s role is akin to that of a company director (to make responsible decisions which are in the best interest of your balance sheet and profit and loss statement).
Negative gearing involves claiming interest expenses from borrowings plus other costs associated with maintaining an asset in much the same way that more traditional businesses do. Similarly, a share investor will claim the interest expense from their margin loan. Time will tell whether property investors will be singled out or not.
A final word...
Rumours of negative gearing getting scrapped arise almost every year – either in the lead up to a federal budget or whenever there is a major review of Australia’s taxation policies. It is the responsibility of governments to periodically review everything; nothing lasts forever. The reality however is that negative gearing has existed in Australia for a few generations.
In the event that negative gearing was ever scrapped, there might be some short-term referred pain but the real estate body will eventually realign itself (once the dust settles, it will be business as usual again for most property investors).  The potential implications to scrapping negative gearing will be spread a lot further than property investor’s tax returns. Any government who is bold enough to make a change faces consequences far greater than the revolt of 1.9 million people at the election box. For these reasons, it is my view that negative gearing will survive further generations.
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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Scrapping negative gearing would have consequences far beyond an investor's tax return

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GUEST OBSERVATION
Rising world demand for gas, iron ore, and coal have already made a mark on several property markets across Australia over the last four to five years. Propertyology’s continuous investment in property economics has us questioning whether another commodity, nickel, might soon create other property investment opportunities.
While not as well known as other metals, nickel plays an important role in modern life. When mixed with other metals it helps create strong alloys that won't rust, can withstand high and low temperatures, and can be easily shaped into anything from thin wires to flat sheets.
One such use of nickel is adding it to iron to make stainless steel. Just ponder: with the existing western world and the fast rising Asian middle class, how much extra demand will there be for cooking utensils and kitchen equipment, surgical instruments, marine equipment, the construction industry, crank-shafts and axles in cars, washing machines, aircraft engines? What opportunities will this create for businesses with links to nickel? Where might all the new jobs be created?
Ponder this also: rising petrol prices, a push for cleaner energy and more advanced technology is expected to result in a major ramp up in production of battery-powered cars. It doesn’t require rocket science to figure out that a similar increase in production of portable devices such as smart phones and laptops is also expected to boom. Rechargeable batteries for mobile phones, cars, clocks, kid’s toys, and remote controls require nickel.
Get the picture? Now ponder this...
Australia is currently the world’s fourth largest producer (11.4%) of nickel, behind Russia, Indonesia and Philippines. If world demand for nickel intensifies as forecast, it might become even more prevalent that Australia is ranked number one in the world for nickel resources with 24.4% of known reserves.
Stock market analysts, Credit Suisse, recently placed a couple of Australian-based nickel mining companies on their ‘watch list’. Western Australia (refer Kalgoorlie) has the lion’s share of nickel resources. Other less significant resources are located in the central west of New South Wales, far northern tip of Tasmania, south of Gladstone and near Townsville. Property investors might consider placing a couple of these locations on their watch list, too.
<img src="/images/2014/08/12/nikel-deposits-aug-12-one.jpg" alt="">
Source: Geoscience Australia, '<a href="/news">Australia's Identified Mineral Resources 2013</a>'.
Buying an investment property in a remote location because of the potential for a single mine is something that Propertyology would consider to be very speculative. However, when we combine economic sustainability with some future upside we often get a really astute investment decision which stands out from the rest of the pack.
Sometimes the best investment results over the longer-term come from buying in the towns nearby to the mines, although an understanding of the higher volatility from commodity price fluctuations is important. In different situations the wisest investment might be in the large city (capital or regional) which will supply most of the goods and services to the smaller towns.
Perth, for example, has one of only two existing major nickel refineries in Australia. The BHP-owned Nickel West refinery at <a href="/news">Kwinana</a> processes most of Western Australia’s nickel and you’d have to think that there is considerable potential to increase upon its current 2,000 employees.
QCG Resources has just acquired the Avebury nickel mine in Tasmania for $40 million. The mine closed in 2009 due to floundering nickel prices. Due to the aforementioned rising demand for nickel, the commodity price has increased by a significant 34% since Christmas and QCG clearly see an encouraging outlook for nickel.
Clive Palmer will be as excited as anyone about the forecast demand for nickel. He may be controversial, however he didn’t become a billionaire by chance. Palmer owns the Queensland Nickel Refinery in <a href="/news">Townsville</a>. Queensland Nickel imports the commodity from mines in the Pacific, processes it, and then exports it out as a refined product. Whilst nothing has materialised as yet, Palmer has proposed a $1 billion upgrade of the refinery and supporting infrastructure. If that goes ahead there will be significantly more than the existing 1,000 people employed at the Townsville refinery. Townsville already has a lot to offer for property investors.
Palmer is also the major shareholder of Gladstone Pacific Nickel Limited (GPNL) which has proposed the establishment of a $3.5 billion nickel and cobalt refinery adjacent to the existing deepwater Port of Gladstone. GPNL already owns a nickel mine at <a href="/news">Marlborough</a>, near Gladstone. In spite of Gladstone’s current property market downturn, population growth forecasts are very strong and the surplus property stock will be soaked up before too long in Australia’s industrial powerhouse.
The future outlook may well be one of those ‘upside’ factors for Gladstone and Townsville – both are very strong regional cities with incredibly strong long-term property investment fundamentals. 
<img src="/images/2014/08/11/press-aug-11-one.jpg" alt="">
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).
Picture courtesy of Wikimedia Commons.
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Nickel could be behind the next mining boom: Here are the areas set to benefit

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GUEST OBSERVATION
Understanding the chain which leads to future property supply is an important consideration before deciding to invest in to a market.
Forecasting future property supply is arguably the single most difficult task for property analysts.
Analytically-minded property investors enjoy statistics. While statistics do play an important role for property analysts, some statistics have greater relevance than others. And then there's the skill in being able to interpret statistics. Building approval statistics play an important role in understanding property markets.
Building approvals are a lead indicator for future property supply. ‘Approved’ does not mean ‘built’. The property supply chain is such that lot owners must (first) apply to the local government authority and have the application approved, (then) secure the necessary funding, and (finally) begin construction. The time lag from building approval through to completion of construction often ranges from six months to two years.
Building approval statistics are relevant for property investors because they have a direct impact on that relationship between demand and supply.
<img src="/images/2014/07/16/building%20approvals.jpg" alt=""> 
Generally speaking, when there are a large number of buyers (demand) at a time when the levels of supply are low, increased competition is created; price growth then occurs. Conversely, when supply is high buyers have more choice and prices are discounted.
A lot of property investors don't understand the lag affect that building approvals have on property values. An investor might purchase in to a market a buoyant market and neglect to study the supply chain. Supply might be tight at the time of purchase however there might also be a large volume of new properties literally 'on the drawing board' and slated for construction completion in the near future. A much softer market might be just around the corner.
Take a look at Western Australia's building approval graph (remembering that 75% of WA's population is based in Perth). The volume of building approvals eased during 2010 and 2011. The lag affect of the declining number of new properties coming on to the market was one significant reason why Perth experienced above-average price growth in 2012 and 2013.
A significant rise in building approvals in Perth during 2013 means that a lot more supply is hitting the market this year.
Property developers will always find a way to build (their livelihood demands on it). A healthy construction industry generally means a healthy economy however there will always be a fine line to building too much. And statistics will only enable us to look so far in to the future.
Forecasting future property supply is arguably the single most difficult task for property analysts.
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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The property supply chain: The effect of building approvals on property values

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

Simon Pressley

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