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EXPERT OBSERVER
The RBA will stay on hold in February, using the recent improvement in the unemployment rate to buy time – suggesting the bank will continue to react to the accumulation of evidence very gradually.
It is important to note that the framework for monetary policy still suggests that rates should be lower.
Inflationary pressure remains weak and recent headwinds – particularly for consumption and business investment - are likely to persist. Notwithstanding the recent dip in the unemployment rate, a large degree of spare capacity remains in the labour market with little progress having been made over the last year in reducing unemployment.
Nonetheless, unless the RBA wishes to move against market expectations, the February cut appears off the table.
Consequently, we have moved the timing of the next cut to April followed by a second cut around mid-year. Beyond that the risk of a move to ‘unconventional’ policy in H2 2020 will depend critically on whether the labour market deteriorates more significantly than we forecast.
By April, the RBA will have confirmation of another quarter of weak consumer spending with further evidence that interest rate and tax cuts to date have not done enough to boost spending.
We will review our GDP forecasts over the next week or so as more information comes in on the indirect effects of the bushfires and coronavirus on activity and ultimately the labour market. 
The stronger than expected December labour market data has provided time for the RBA to further assess the data flow. While the RBA staying on hold in February is expected by the market, we still think the RBA will regret not moving earlier this year – as was also the case in 2019 – as consumer spending trends remain very soft. The December NAB survey also suggests that private sector economic momentum, while it didn’t collapse in late 2019, remains stalled. 
Ultimately the RBA’s policy path will depend on where the economy and the labour market goes from here. We remain of the view that the economy – and consumer spending in particular - will continue to underperform and probably more than the RBA expects – albeit new RBA forecasts will be published later this week and will likely contain a softer near-term growth outlook. 
An early estimate of the short-term bushfire impact could well see average GDP growth in 2020 slow to around 1.5% or lower, with unemployment starting to rise to around 5.5% by H2 2020. While we will be assessing the indirect disruption effects of the fires over coming weeks it seems likely that Q1 GDP will be negative. We are quite worried that the January NAB Survey will further highlight that the indirect effects were larger than most expect.
Internal data on income growth suggests that wages growth may have weakened in late 2019. Indeed, our analysis suggests household cash flows weakened further in late 2019. It is too early to assess the impact of the Coronavirus but clearly it will also not be a positive. Next week we will formally review our GDP forecasts ahead of the next NAB business survey release. 
The bushfire rebuild will add somewhat to growth in the out years but we do not see that as significant in 2020 – rather it is likely to be a 2021 issue. Also, the fiscal outlay on the fires (at $2billion over two years) is not likely to be a game changer in terms of the near term macroeconomic outlook.
We still see scope for more support from a material fiscal package. That does not appear to be on the government’s agenda. Similarly, we think there is a need for renewed focus on structural policy to lift productivity growth over the medium term, which would in turn provide support for wage growth.
Whether the RBA moves to unconventional policy will very much depend on whether the economy strengthens in H2 2020 and unemployment continues its recent gains. We fear that will not be the case. Beyond that, the shape of the 2020/21 Federal Budget will be important.
While we can understand the RBA’s position of taking more time to assess the outlook, that in our view is only sustainable for a short period. By April it will be clear that private sector growth continues to flat line, consumer spending remains soft and potentially that recent unemployment gains are not sustained. That combination means that further stimulus will be needed.
ALAN OSTER is NAB Group's Chief Economist
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j.ballantyne1990-6AQqhLzZaK

NAB push back RBA rate cut prediction: Alan Oster

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House prices continue to rise solidly, supported by easier access to credit and lower interest rates, according to the latest ANZ Housing Update report.
The housing update found a combination of pent-up demand and low volumes looks to have been a key driver of the larger than-expected rebound.
While the initial strength was concentrated in Sydney and Melbourne, the pick-up has broadened across the capital cities. In December, prices rose in all capital cities bar Perth (where they were flat) and Darwin.
Looking at the nation as a whole, ANZ predict that prices will rise solidly in 2020 but the pace of monthly gains will moderate.
Felicity Emmett, Senior ANZ economist said, "we have revised up our forecasts a little and now expect prices to rise 8% on average through 2020, and 4% in 2021."
Building Approvals
Building approvals have fallen sharply, driven by a steep decline in high-rise apartment building approvals. Some of this decline can be attributed to the recent cladding and cracking crises which have lead to a lack of faith in apartment developers.
The decline in approvals suggests construction will fall for some months yet.
Felicity Emmett said, "leading indicators are turning, suggesting activity will pick up later this year. Finance for construction, both for households and businesses, is picking up strongly, while property developers are more confident about the construction outlook."
"Build quality concerns, particularly in NSW, may dampen the eventual upswing."
"We expect activity to trough in mid-2020 before picking up," she forecast.
Housing Credit &amp; Loans
 
Adelaide Timbrell, Economist ANZ said, "Housing credit growth is at a historical low of 2.3% y/y, as households use rate cuts to pay down debt faster, rather than reduce repayments. The expiry of interest only loans is also leading to faster debt repayment."
"Recent data suggest arrears rates are now declining, helped by the improved housing market. Despite higher WA arrears and IO loan switching increasing debt repayments by up to 40%, Australian arrears are low by international standards," she added.
First home buyer loan sizes are at historical highs and affordability concerns may emerge as housing prices continue to rise.
Rising rents are squeezing low-middle income earners, who take up an increasing share of the private rental market, atleast when compared to two decades ago.
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Property recovery spreads, building approvals may bounce back in late 2020: ANZ

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The Members Equity Bank's findings from its fourth Quarterly Property Sentiment Report reveals that the rising house prices are yet to crush the home ownership dreams of First home buyers.
The survey of 1,000 Australians in the property market took place in at the start of the month - the first quarter of 2020. 
Compared to the second quarter of 2019 where only 38 per cent of FHBs intended on buying property, FHBs' hopes of breaking into the market have jumped dramatically with 51 per cent of FHBs planning to buy property in the next 12 months. 
ME’s general manager Andrew Bartolo said, “Rising property prices carry the risk of squeezing first-home buyers out of the market, however they also signal a healthier market that presents a worthwhile long-term investment. 
“In the case of FHBs, the recent property price recovery has likely nudged them to get in while they can – as though it’s ‘now or never’ – and has created a sense of FOMO.
“Low interest rates and commentary in the market for the support of FHBs may have also contributed to an increase in home-buying intentions.” 
Over half predict house prices will continue climbing.
Recent property prices across Australia’s key property markets aren’t expected to halt any time soon, according to Australians in the property market. 
55 per cent of respondents expect prices to rise over the next 12 months. This is a massive leap from the mere 38 per cent who predicted price rises in the third quarter of 2019 when the market first began to turn. 
Strong house value growth is predicted by Victorians more than any other state, with 67 per cent of Victorian respondents predicting prices to go up. This is a 10 percentage point jump from last quarter’s prediction, and a 34 percentage point jump from their prediction for the second quarter of 2019.
All other major cities had a more optimistic outlook on prices than last quarter, including WA where more were predicting price falls than rises in the last quarter.
Positive house price expectations were seen across owner occupiers, FHBs and investors. 
Overall property market sentiment improves.
The report shows sentiment towards the property market has improved for the third quarter in a row, increasing to net positive 21 per cent. This is 3 percentage points up from the fourth quarter in 2019, and up 14 percentage points from the second quarter in 2019 when the report first started.
“Considering a combination of market factors including the buzz of home value growth, a solid spring selling season, plus rate cuts and signs from the RBA that rates will stay lower for longer, it’s no surprise overall property sentiment has improved,” said Bartolo. 
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Investor optimism has dipped slightly and is now on par with that of owner occupiers, as rising prices present a potential barrier to this cohort. 
Spending habits take another hit.
ME’s report revealed price positivity and overall market sentiment isn’t flowing through to spending habits. 
Recent property price movements have negatively impacted ‘willingness to spend on discretionary items’ for another quarter in a row. It remains the only area of personal finances that has stayed net negatively impacted - sliding deeper from net negative three per cent to net negative eight per cent over the past quarter. 
All other areas of personal finances analysed such as sense of wealth, financial confidence, savings behaviour and debt situation, remain net positively impacted by recent price movements. 
“Despite market positivity and a stronger sense of wealth, there’s less willingness to spend on discretionary items – a trend that bucks the wealth effect theory. Much broader economic dynamics are obviously at play,” said Bartolo. 
Growing optimism eases financial worries, but affordability remains an issue 
Growing optimism over the past quarter has eased most financial worries, but housing affordability still tops the list. 
Ninety-two per cent of respondents agree that ‘housing affordability is a big issue in Australia’, up from 89 per cent in the forth quarter of 2019. 
ME’s report explored level of personal worry towards affordability, as well as acknowledgement of the issue, for the first time and found net 14 per cent agree with the statement ‘I’m worried about property becoming unaffordable’ – making it the top worry. 
All other perceived worries in ME’s report have eased to the lowest point since the survey began in the second quarter of 2019. 
Tight credit policies are becoming less of a concern with only net six per cent agreeing it’s a worry, which is down from net agree 16 per cent last quarter. 
Concern over negative equity has dropped dramatically to net disagree 34 per cent, from net disagree 12 per cent last quarter. Likewise, worry about being forced to switch to interest only payments also slid to net disagree 30 per cent from net disagree 12 per cent last quarter.
Not enough choice in the market 
The report also compared the perception of choice in the property market. Forty-six per cent of respondents believe there is not enough choice, with this figure jumping to 57 per cent among FHBs. 
“Housing supply has picked up slightly, but with prices rising and demand outweighing supply, there’s no wonder that almost 1 in 2 Aussies don’t think there’s enough choice available,” said Bartolo. 
“With so many FHBs planning to buy in 2020, yet most stating choice in the market is a barrier, addressing this issue should be a focus in the year ahead.” 
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Rising prices yet to crush first home buyers ownership dreams in 2020: ME Bank

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GUEST OBSERVER
Bushfires have killed <a href="https://www.theguardian.com/australia-news/2020/jan/24/bushfires-death-toll-rises-to-33-after-body-found-in-burnt-out-house-near-moruya" target="_blank">33 people</a> and destroyed nearly 3,000 houses across Australia so far this fire season. Canberra is under threat right now.
It isn’t only houses. Significant commercial buildings have been destroyed, among them Kangaroo Island’s iconic <a href="https://www.smh.com.au/national/there-s-just-nothing-left-iconic-tourist-site-will-rebuild-as-fires-threaten-premiums-20200110-p53qed" target="_blank">Southern Ocean Lodge</a>.
In New South Wales alone, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-01-16/nsw-fire-affected-schools-will-be-safe-for-returning-students/11870494" target="_blank">140</a> schools have been hit. Many require <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2019-11-29/wytaliba-students-return-to-classroom-after-bushfire/11746188" target="_blank">extensive</a> work.
The <a href="https://www.abcb.gov.au/Connect/Categories/National-Construction-Code" target="_blank">National Construction Code</a> provides false, and dangerous, hope.
It requires new homes (Class 1 buildings) built in declared “bushfire-prone” areas to be built to either <a href="http://www.as3959.com.au/" target="_blank">Australian Standard 3959</a>, the National Association of Steelframed Housing standard “<a href="https://www.nash.asn.au/shop/product/nash-standard-for-steel-framed-construction-in-bushfire-areas/" target="_blank">Steel Framed Construction in Bushfire Areas</a>”, or a “performance solution”, which could be anything that in the opinion of a qualified person complies with the performance requirements of the code.
It also applies to Class 2 buildings (apartments) and Class 3 buildings (hotels and guesthouses) in bushfire-prone areas.
Disturbingly, the code does not apply to community buildings, such as schools.
The standard does not fireproof buildings
The definition of “bushfire-prone” varies from state to state, as do the procedures for enforcing it.
Confused? So are many construction professionals.
The sad truth is that any practical building that is exposed to an intense bushfire will probably burn down, whether it complies with Australian Standard 3959 or not.
Worse still, the available evidence suggests there is a significant risk that the people sheltering in it will not survive without an effective refuge, which Australian Standard 3959 does not mandate or consider.
The standard speaks for itself:
Although this Standard is designed to improve the performance of buildings when subjected to bushfire attack in designated bushfire-prone areas, there can be no guarantee that a building will survive a bushfire event on every occasion. This is substantially due to the unpredictable nature and behaviour of fire and extreme weather conditions.
More importantly, while a building constructed to Australian Standard 3959 might be less likely to burn down, Standard 3959 in its current form might not protect the people within the building.
Worse, it might not protect people
The highest aim of any system of building regulation ought to be life and safety, followed by the protection of adjoining properties and then, a long way back, by the protection of the property itself.
In the case of bushfire, the <a href="https://abcb.gov.au/">Australian Building Codes Board</a> and its political masters appear to have put the protection of buildings first, when it should be last.
If a house is under threat by bushfire, the best advice is to evacuate early, whether it complies with Australian Standard 3959 or not.
By encouraging people to believe they can defend a structure compliant with Australian Standard 3959 we could be putting more people at risk than if we simply told them to evacuate.
Residents and firefighters defending houses have accounted for a large percentage of the deaths this fire season.
It’d be better to rethink where we build
We may need to have difficult conversations about whether our subdivision practices are appropriate. Allowing people to build in areas that are bushfire-prone, particularly where buildings are effectively built into the bush, might be creating unmanageable problems for the future.
If there is no such thing as a bushfire-proof house, as Australian Standard 3959 seems to concede, we might need to focus on evacuation and shelters.
In the United States, rather than requiring houses to resist tornadoes or wildfires, the Federal Emergency Management Agency encourages the provision of shelters. State and local authorities often make these mandatory.
People are more important than structures
Having attended one funeral for a person killed defending their home this fire season, I have had enough. We should not be worrying about protecting buildings until we have worked out how to protect human life.
The <a href="https://www.industry.gov.au/regulations-and-standards/building-and-construction/building-ministers-forum">Building Ministers’ Forum</a> and the <a href="https://abcb.gov.au/">Australian Building Codes Board</a> should either embrace a policy of early evacuation or mandate fire shelters in bushfire-prone areas for both new and existing houses.
The board and the states should also make every effort to regulate to ensure all buildings and places designated as refuges of last resort can properly fulfil their intended function, whether they are new or not.
If we are going to have another fire season similar to this year, and so far the CSIRO predictions on this have been totally accurate, we will need to sort this out quickly, preferably before next summer.<img src="https://counter.theconversation.com/content/130165/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/geoff-hanmer-90647">Geoff Hanmer</a>, Adjunct Lecturer in Architecture, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>
This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/building-standards-give-us-false-hope-theres-no-such-thing-as-a-fireproof-house-130165">original article</a>.
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Building standards offer false hope, fireproof houses don't exist: Geoff Hanmer

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EXPERT OBSERVER
Dwelling prices have reached the bottom in Adelaide as buyer confidence rises alongside auction clearance rates.
According to the latest RiskWise Property Research Risks &amp; Opportunities Report, housing finance in South Australia is showing signs of improvement with an increase of 8.6 per cent since February 2019 after a reduction of 6.6 per cent relative to August 2018.
In recent years the market had delivered modest capital growth for houses and poor capital growth for units.
While the labour market has improved in the past couple of years, the effective unemployment rate in South Australia is still above 9 per cent and the employment market is still soft.
This has a strong connection with low population growth (only 0.8 per cent per annum) and, therefore, low demand for dwellings.
While serviceability measures have improved due to the RBA’s interest rate cuts (with another expected sometime in the new year), the relatively high unemployment rate increases the risk of credit defaults.
That, combined with some properties that suffer from low demand, require special attention in relation to credit provisioning.
However, he said in some high-demand areas the housing market was showing some evidence of recovery, particularly those with steady recent price growth rates.
Buyer confidence has increased in South Australia, particularly Adelaide. This has also improved auction clearance rates and, consequently, it appears dwelling prices have reached the bottom.
However, while South Australia enjoys high levels of public and private expenditure, in the short term, the economic growth is projected to remain relatively low, around the 2 per cent mark.
Long-term economic growth will be a slow process and with a soft labour market no significant changes to demand are expected in the short to medium term, with less popular areas experiencing modest growth only.
He said despite low building approvals, demand for houses was projected to remain moderate with, therefore, only moderate capital growth forecast.
However, he said the growth rate was projected to vary greatly across the state with houses in areas close to the Adelaide CBD, such as Adelaide Central and Hills, likely to deliver better growth.
Houses in areas that do not enjoy good growth drivers still carry a risk of delivering poor / negative capital growth. For example, according to CoreLogic, the median house price in the Barossa - Yorke - Mid North area declined by 0.2 per cent in the past 12 months.
He said while South Australia offered healthy rental returns for both houses and units, demand for units among owner-occupiers, despite good affordability, was generally low.
In addition, units in some suburbs are subject to voluntary lending restrictions by the major lenders, such as lower loan-to-value ratio (i.e. higher deposit) due to oversupply,
Units are not considered a popular dwelling option among families especially off-the-plan units in high rises, and these carry the highest level of risk. Overall, units in South Australia are likely to deliver poor capital growth.
Adelaide Central and Hills has the highest rate of oversupply in South Australia with 2696 units in the pipeline (an 8.2 per cent increase to the current stock). This unit oversupply has led to a price decline of 0.3 per cent in the past year.
DORON PELEG is the CEO at RiskWise
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Adelaide house prices bottom out with growth projected: RiskWise's Doron Peleg

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EXPERT OBSERVER
The Northern Territory's poor economy continues to play a part in its subdued property market with 15.6 per cent price reductions for houses in the past five years and a massive 29.4 per cent for units.
According to the latest RiskWise Property Research Risks &amp; Opportunities Report, much of the negative capital growth in recent years is due to population decreases following the end of the mining boom and lack of employment, leading to high interstate emigration.
RiskWise CEO Doron Peleg said the territory was the only state in Australia that experienced population loss in 2017-18.
While dwelling supply in relation to population growth is low and dwellings are very affordable, the low demand for housing makes the Northern Territory a risky area especially given the low level of private investment that is significantly below the growth levels during the mining boom.
According to CoreLogic, Darwin house prices peaked in 2014 and fell 15.6 per cent over the past five years. However, improved housing affordability slightly reduces the risk associated with houses from medium-high to medium.
He said it was likely houses in the Northern Territory would deliver poor or negative capital growth in the short to medium term.
However, as more than 67 per cent of houses in the territory were owner-occupied and held for a long period of time, he said they carried a lower level of risk than units.
Units carry a very high level of risk to deliver negative capital growth, due to the combination of oversupply, lending restrictions and low demand.
The current supply of units, while not considered high in relation to population growth, still exceeds the low demand for them.
This is particularly the case in areas with a high concentration of off-the-plan units, such as Darwin with 2034 units in the pipeline (10.2 per cent increase to the current stock). They delivered -33.7 per cent capital growth over the last five years.
DORON PELEG is the CEO at RiskWise
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Northern Territory's poor economy continues to subdue the property market: RiskWise's Doron Peleg

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A Noosa Heads trophy home in the prestigous Witta Circle has been sold for $7.55 million.
The five bedroom, three bathroom home sitting on a 621 sqm block was listed with an asking price of $7.9 million.
Featuring a 23 metre frontage, the house has undergone an extensive renovation and presents as new. It also has an infinity edge pool and authentic timber burning fireplace.
Situated at <a href="https://www.realestate.com.au/sold/property-house-qld-noosa+heads-132481842" target="_blank">39 Witta Circle</a>, the home was sold by Eric Seetoo of Tom Offermann Real Estate.
<img src="https://www.urban.com.au/images/2019/12/17/Witta%20Circle%202.JPG" alt="">
It was listed as a rental as recently as 2013 seekin $1,200/pw.
Located on Witta Circle island the home is fringed with a sandy beach and an outlook across the river.
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Waterfront Witta Circle Island trophy home in Noosa Heads sold

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A Crestmead, Queensland mortgagee home has been sold for $285,000, a $45,000 loss.
The three bedroom, two bathroom house last sold for $330,000 in 2009.
Situated at <a href="https://www.realestate.com.au/sold/property-house-qld-crestmead-132420382" target="_blank">135 Waratah Drive</a>, Griffiths and Gunn of Your Address Real Estate marketed the home.
Set on 600 sqm, the home was built in 1980.
Following an unsuccessful December 2019 auction, the holding was listed for $290,000.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median sale price for a home in <a href="/news">Crestmead</a> is $325,000, according to the latest CoreLogic data.
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Creastmead, Queensland mortgagee home sold for $45,000 loss

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A Rosbery, Northern Territory mortgagee has been sold for $300,000, an $80,000 loss.
The house was last sold in 2008 for $379,000.
It was unsuccessfully listed in 2010 when it sought $465,000 and this latest campaign ran from October 2018 to December 2019.
Michael Keith and Tim Mackenzie of O'Donoghues marketed the property.
Situated at <a href="https://www.realestate.com.au/property-house-nt-rosebery-129631770" target="_blank">1 Granites Drive</a>, the home was originally listed for $399,000 but after an unsuccessful October 2019 auction, sought $300,000.
Set on 801 square metres, the three bedroom one bathroom house was listed as a rental for $385 per week in 2013.
Built in 1988, it is located only a short stroll to the Rosebery Primary School as well as Palmerston College, there are also shops close by and just minutes drive to the new Bakewell Shopping Centre, as well as the Palmerston CBD.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median sale price for a home in <a href="/news">Rosebery, NT</a> is $502,500, according to the latest CoreLogic data.
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Rosebery, NT mortgagee home sold for $80,000 loss

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A Franklin, Australian Central Territory mortgagee apartment has sold for $280,000.
The January 2020 sale follows an unsuccessful November 2019 auction.
The one bedroom, one bathroom apartment was sold for its asking price.
Hugo Mendez Rauana Smith of LJ Hooker marketed the property.
Situated at <a href="https://www.realestate.com.au/sold/property-apartment-act-franklin-132149578" target="_blank">31/92-98 Henry Kendall Street</a>, the apartment also features a parking space.
Built in 2012, the 50 sqm unit holds views over Franklin.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median price for a house in <a href="/developments/franklin-act-2913">Franklin, ACT</a> is $365,000 according to CoreLogic. 
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Franklin, ACT mortgagee home sold after unsuccessful auction

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

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ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

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Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

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Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

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The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

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Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

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Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

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The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

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The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Staff reporter

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