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GUEST OBSERVER
Despite predictions of ‘doom and gloom’ by some property pundits, a buoyant Melbourne housing market is leading to healthy long-term investment options for savvy home buyers.
Solid auction results, strong population growth (the highest in Australia), good economic growth and APRA’s decision to lift home-loan restrictions on investor lending make the Melbourne housing market far less risky than its alternatives.
While this appears at odds with recent research by one real estate and investment group, which is predicting unit prices to fall less than 5% and house prices to ‘flatline’, RiskWise’s most recent <a href="https://www.riskwiseproperty.com.au/pdfs/ResidentialPropertyRisksOpportunitiesReport.pdf" target="_blank">Residential Opportunities &amp; Risks Report</a>, clearly shows that the housing market in Melbourne is in a far more healthy position than many experts believed.
Auction clearance rates – which are a strong short-term indicator to buyer sentiment – remain, overall, solid, in the beginning of 2018, particularly considering the end of the housing boom, negative media coverage and the beginning of autumn. 
The city enjoys strong population growth and exceptional overseas and interstate migration, meaning houses there are likely to continue having sustained demand, particularly in the middle suburban rings and affordable areas with good access to Melbourne CBD, such as the Western Suburbs.
This is coupled with strong gross state product growth rate of 3.3% and increasing private capital expenditure.
While the residential property market had cooled recently in Melbourne, overall houses in the Victorian capital city carried a low-medium level of risk and were projected, in the long-term, to deliver healthy capital growth.
Click here <a href="https://www.propertyobserver.com.au/images/2018/3/23/Gross%20State.jpg" target="_blank">to enlarge.</a>
<a href="https://www.propertyobserver.com.au/images/2018/3/23/Gross%20State.jpg" 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/2018/3/23/Gross%20State.jpg" alt=""></a>
The Melbourne property market is being looked at unfavourably by many so-called experts and this is having a dramatic impact on ‘mum and dad investors’ as well as policy makers. 
However, our research has shown that, in fact, Melbourne is a good option for investors, particularly the housing market in affordable areas, such as the western suburbs.
The report based its conclusions on the analysis of 30 variables grouped into seven categories to assess the short and long-term risk for houses and units in each state in Australia.
While it was true the Melbourne unit market carried a relatively high level of risk, housing in key areas, particularly the western suburbs, would enjoy healthy capital growth.
However, it seems the perception appears to be one of negativity due to people making generalisations about the market, over-reacting to slight fluctuations and taking a short-sighted approach instead of a long-term view. 
While many property experts are tipping price weakness in 2018, they fail to acknowledge there are many different markets, all with their own idiosyncrasies.
Click here <a href="https://www.propertyobserver.com.au/images/2018/3/23/Population%20growth.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/23/Population%20growth.jpg" alt="">
They also fail to distinguish between houses and units, rather using the term ‘dwelling’ for an all-encompassing view, ignoring that these property types are so different that RiskWise had to create separate heat maps for them.
It also doesn’t help that some commentators are suggesting there will be ‘5 to 10% price falls in 2018’. This just causes an over-reaction by investors who then become afraid to enter the market.
In addition, some forecasters were ignoring that about 78% of the houses in Melbourne were owner-occupied and had an estimated median net equity of $467,000. 
It is far more likely that with such equity they will get finance for an investment property, rather than being forced sellers. Therefore, the likelihood that houses in Melbourne will experience a significant correction is low. 
Many property investors were looking to “exotic investment opportunities”, such as North Queensland and Perth that carried a high level of risk and were projected to deliver a lower level of return. 
Others have a short-sighted approach focusing on quarterly, and in one case even weekly, data, applying principles that are common in the share market of short-term transactions. 
That approach ignores the fact that a typical house in Melbourne is held for 11.9 years.
Doron Peleg is CEO of RiskWise Property Research.
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j.ballantyne1990-6AQqhLzZaK

Melbourne housing market remains buoyant: Doron Peleg

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GUEST OBSERVER
Australia has a housing affordability problem. There’s no doubt about that. Unfortunately, one of the reasons the problem has become so entrenched is that the policy conversation appears increasingly confused. It’s time to debunk some policy clichés that keep re-emerging.
Is ‘zoning’ to blame?
It can be tempting to frame the housing affordability problem as all about inadequate new supply. According to this argument, the “demand side” drivers – such as low interest rates and tax incentives for property investment – have combined with population growth in the capital cities to fuel house prices, and new housing construction simply hasn’t kept up.
“Zoning” is often blamed. There is little hard evidence, though, to show systematic regulatory constraint.
Supply is at record highs, and in the right places
Australia’s new housing supply per capita is actually very strong by international standards. Over the past decade, supply of new units and apartments has been flowing in job-rich metropolitan areas with dense populations, which are also higher-value locations.
According to the cliché, this supply response should have cooled prices. Yet dwelling price inflation has surged even in metropolitan areas where new housing supply has exceeded population growth.
The fallacies of ‘filtering’
One of the great hopes underpinning the supply cliché is that new housing stock improves affordability even if these homes are not affordable for lower-income groups. This faith is based on a theory called “filtering” whereby older housing moves down to the affordable end of the market over time.
The empirical data on filtering are thin. Indeed, the academic literature has historically cast doubt on the theory. However, some commentators continue to claim that American rental housing markets provide evidence that “filtering” can occur in practice.
But whatever might happen in the US, in Australia there’s still no evidence to suggest new housing supply has filtered across the housing stock to expand affordable housing opportunities for low-income Australians, or that it will do so any time soon.
Prominent economists continue to produce data that suggest the potential impact of new supply on price is minimal. The shortage of affordable housing opportunities for low-income households in Australia remains persistent. And the evidence indicates that low-income working households in our cities consistently face housing costs well above accepted affordability levels regardless of the quality of the housing they live in.
Sustaining supply in a cooling market?
Some commentators cite cooling house prices as evidence that the supply response is taking effect. Whether or not that is so (above and beyond demand-side factors like higher interest rates for investor loans), expect the pipeline to start slowing down. Private sector development is driven by profit and risk and, as we have seen over many years, is characterised by speculative booms and busts.
Developers can turn off the new supply tap much more quickly than they can turn it on. Falling prices, weak consumer sentiment and economic uncertainty mean many developers will not follow through on building approvals until the market recovers.
This means that high levels of supply output are rarely sustained. Recent housing data in Western Australia provide a case in point. WA recorded rising completions in 2014, 2015 and 2016. But 2017 completion figures are expected to show a drop of around a third as prices have shaded off since the end of the mining boom.
Put simply, the market on its own will never solve Australia’s housing affordability problem. Expecting developers to keep building in order to reduce house prices is pure fantasy.
Planning reform is not an affordable housing strategy
We’ve written before about the political appeal of calling for planning reform instead of real solutions to housing affordability pressures. In fact, Australian states have embarked on more than a decade of planning reforms.
They have aimed to: standardise and simplify planning rules; promote mixed use and higher-density housing near train stations; and overcome local political opposition to development through the use of independent expert panels.
Housing targets for both urban infill and new greenfield areas have been a feature of metropolitan plans to drive dwelling approval rates since at least 2000.
These reforms have been effective in overcoming regulatory constraints. The scale of the recent supply response shows clearly that zoning and development assessment processes are not inhibiting residential development approvals in cities like Sydney and Melbourne.
But trying to accommodate Australia’s population growth in towers around railway stations will fail as an affordable housing strategy – even if “zoning” and height rules were completely scrapped.
Rather than narrow deregulation agendas, bigger picture reforms are needed. Aligning infrastructure funding with metropolitan and regional decentralisation is a critical long-term strategy. Reforms to deliver affordable housing in communities supported by new infrastructure are long overdue.
A bigger affordable housing sector is needed
Australia needs a more realistic assessment of the housing problem. We can clearly generate significant dwelling approvals and dwellings in the right economic circumstances. Yet there is little evidence this new supply improves affordability for lower-income households. Three years after the peak of the WA housing boom, these households are no better off in terms of affordability.
In part, this may reflect that fact that significant numbers of new homes appear not to house anyone at all. A recent CBA report estimated that 17% of dwellings built in the four years to 2016 remained unoccupied.
If we are serious about delivering greater affordability for lower-income Australians, then policy needs to deliver housing supply directly to such households. This will include more affordable supply in the private rental sector, ideally through investment driven by large institutions such as super funds. And for those who cannot afford to rent in this sector, investment in the community housing sector is needed.
<img src="https://counter.theconversation.com/content/92993/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">In capital city markets, new housing built for sale to either home buyers or landlords is simply not going to deliver affordable housing options unless a portion is reserved for those on low or moderate incomes.
Nicole Gurran, Professor of Urban and Regional Planning, University of Sydney 
Bill Randolph, Director, City Futures Research Centre, Faculty of the Built Environment, UNSW 
Peter Phibbs, Director, Henry Halloran Trust, University of Sydney 
Rachel Ong, Professor of Economics, School of Economics and Finance, Curtin University 
Steven Rowley, Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin University
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/affordable-housing-policy-failure-still-being-fuelled-by-flawed-analysis-92993" target="_blank">original article</a>.
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Affordable housing policy failure still being fuelled by flawed analysis

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Set at Queanbeyan, only minutes to main arterial roads to Fyshwick and Canberra CBD, a one bedroom unit has been sold by mortgagee for $170,000.
It was sold by the agents Peter Stumbles and Jon Stumbles from Elders Real Estate. 
<a href="https://www.realestate.com.au/sold/property-unit-nsw-crestwood-127212454" target="_blank">The 10B/17 Uriarra Road</a> home comes with living area with split system air conditioning, large private balcony and secured underground allocated car space.
It was a $300 a week rental.
Other features include stylish plantation shutters throughout and kitchen with stone bench tops.
The suburb's median unit price sits on $300,000 according to CoreLogic.
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Queanbeyan one bedroom unit sold by mortgagee

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A five-bedroom home in Manly fetch $9.71 million, the weekend's top result, when national auction levels hit all time highs in the pre-Easter sales rush.
The home at <a id="x_mcntLPlnk935992" href="https://www.realestate.com.au/property-house-nsw-manly-127729154" target="_blank" rel="noopener noreferrer">67 Bower Street</a> (pictured above), one of nearly 1100 to go under the hammer in Sydney on the biggest auction day so far of the year, sold for close to $2 million above the reserve.
Clarke &amp; Humel agents Michael Clarke and Cherie Humel indicated two buyers were especially keen.
There were six bidders registered, with four active after bidding started at $7 million for the house built in the style of a resort-like Mediterranean luxury villa.
Across the harbour, the prominent Sydney restaurateur Kingsley Smith and hotelier wife Natasha Stanley secured $8.45 million when their Vaucluse home went to auction.
The couple paid $5.01 million for the home in 2014. 
<a id="x_mcntLPlnk396873" href="https://www.realestate.com.au/property-house-nsw-vaucluse-127724238" target="_blank" rel="noopener noreferrer">The Vaucluse property</a> was custom-built by architect Ian Poole for former owners, with six bedrooms, separate guest accomodation, a study and a heated infinity edge swimming pool amid manicured gardens. 
McGrath Group had a guide of $8 million.
There was also a strong result in Sydney's inner west, where a six-bedroom Strathfield home on 1,359 square metres fetched $5.9 million.
The <a id="x_mcntLPlnk99289" href="https://www.realestate.com.au/property-house-nsw-strathfield-127692802" target="_blank" rel="noopener noreferrer">64 Redmyre Road, Strathfield</a> sale was $600,000 above reserve through Strathfield Partners agents Robert Pignatoro and Vanessa Kim.
The property had failed to sell in a campaign with other agents last year.
There’d been eight groups register, with The Sunday Telegraph reporting a local Chinese family were the successful purchasers with a local Vietnamese family the underbidders.
CoreLogic calculated the total of 3,967 auctions held across the combined capital cities exceeded the previous highest week on record - the week ending 30 November 2014 when 3,908 auctions were held. 
Sydney's preliminary clearance rate stood at 66.2% based on the initial 1037 reported results.
Click here <a href="https://www.propertyobserver.com.au/images/2018/3/26/caps.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/26/caps.jpg" alt="">
The weekend's cheapest sale was a one bedroom at 16/57 Kingsville Street, Kingsville in Melbourne's inner west.
<a id="x_mcntLPlnk166431" href="https://www.realestate.com.au/property-apartment-vic-kingsville-127744142" target="_blank" rel="noopener noreferrer">The updated top floor, second level 1970s apartment</a> sold for $247,000. Its price guidance had been $210,000 to $230,000.
It last sold in 2002 at $110,000. It had been a $240 a week rental until recently.
There was <a id="x_mcntLPlnk973418" href="https://www.realestate.com.au/property-house-vic-toorak-127690274" target="_blank" rel="noopener noreferrer">a $5.8 million Toorak sale</a> which was among the top Melbourne results.
The 725 square metres lot at 27 Linlithgow Road came with the option to complete the somewhat progressed luxury two apartment Tudor style re-development or start again on a single home. The price guidance has been $4.2 million to $4.6 million.
The owners were going to live upstairs and sell downstairs, but a dispute unfolded between them and the builder, resulting in work stopping around a year into the construction.
Four of the six bidders were Chinese with local residency. The buyer was a high net worth Chinese buyer, who lives in Toorak. 
A converted Fitzroy church hall at <a id="x_mcntLPlnk564346" href="https://www.realestate.com.au/sold/property-house-vic-fitzroy-127733910" target="_blank" rel="noopener noreferrer">182 Fitzroy St </a>— which featured as the home in Guy Pearce's TV drama Jack Irish — sold for $2,446,000 bettering its reserve by $446,000.
There had been $1.9 million to $2 million price guidance for the gold-rush-era Independent Hall which has served as a church, Aboriginal mission, kindergarten and film set.
Since 1973, it’s been a home, Nelson Alexander agent Rick Daniel said.
"Across Melbourne, a total of 2,078 homes were taken to market across making it a record busiest week in CoreLogic history; surpassing the previous record over the week ending 29 October 2017 when 1,983 auctions were held," Kevin Brogan, the CoreLogic auction analyst said.
Melbourne's preliminary auction clearance rate fell with these higher volumes to 67%, down from the previous week's 68.7%.
Canberra had the nation's highest preliminary auction clearance rate at 73.8%, based on the results of 107 of the 129 scheduled auctions. 
Canberra's top sale was <a id="x_mcntLPlnk182442" href="https://www.propertyobserver.com.au/https://www.allhomes.com.au/ah/act/sale-residential/16-hampton-circuit-yarralumla-canberra/1317500654011" target="_blank" rel="noopener noreferrer">a luxury Yarralumla residence</a> designed by architect Paul Tilse.
Its land value was put at $937,000 with a single level solar passive contemporary home that has a 6 out of 6 star energy rating. 
It was constructed in 2016 by builders Sutton and Horsley in the grounds landscaped by Foxy's Landscapes.
Brisbane reported a 49.2% preliminary clearance rate with 194 scheduled auctions, down from the final figure of 51.9% over the prior weekend.
Brisbane's cheapest sale was $320,000 in Hamilton. The 1/104 Windermere Road offering was last sold at $38,000 in 1980.
The Ray White selling agent Guy Horsley said the vendor was moving to a retirement home.
<a id="x_mcntLPlnk71733" href="https://www.raywhite.com/qld/hamilton/1841929/?lang=en" target="_blank" rel="noopener noreferrer">Set in a block, Coniston of only four units</a>, it came with three bedrooms and one bathroom with lock up car accommodation, with 125 square metres living space.
Adelaide's 67.3% success rate, with 143 scheduled auctions, was the second best across the capital cities.
But it was below the previous week's preliminary 69.7% figure which ended with a final revised tally of 64.3%.
Adelaide prices ranged from $395,000 at Trott Park to $1.62 million at Norwood.
The three bedroom sandstone <a id="x_mcntLPlnk273668" href="https://www.realestate.com.au/property-house-sa-norwood-127798658" target="_blank" rel="noopener noreferrer">105 George St, Norwood</a> offering through Toop &amp; Toop had been in the same family for six decades.
The four bedroom split level <a id="x_mcntLPlnk409846" href="https://aldinga.ljhooker.com.au/house-in-trott-park-sa-5158-au-ptgfd4#.Wra7d60ZPq0" target="_blank" rel="noopener noreferrer">46 Hessing Crescent, Trott Park</a> offering had come with $350,000 price guidance.
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Manly scores weekend top result in pre-Easter auction rush

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A Royal Commission-induced credit slowdown could push the next interest rate rise back to 2020, according to Shane Oliver, head of investment strategy and economics and chief economist at AMP Capital.
"We are only two weeks into the Royal Commission, but it seems a real risk around the issues of lax lending standards is that banks move to a far more rigorous assessment of applications for loans," Shane Oliver noted.
"This is most unlikely to cause a full-on credit crunch, but the end result could be much tougher lending standards and a slowing in credit growth.
"Its early days yet but it’s worth keeping an eye on.
"It could serve to further delay any move to higher interest rates by the RBA, into say 2020," Oliver suggested.
Oliver anticipates more rigorous attention to lending in terms of each applicant’s income, expenses, assets and other debts.
<div>
Rowena Orr, QC, the senior counsel assisting the Hayne royal commission, has already revealed serious breaches committed by the banks and mortgage brokers.
There have been instances where banks had breached their statutory obligations under the National Consumer Credit Protection Act as well as under the Corporations Act to provide financial services "efficiently, honestly and fairly."
There appears to have been a failure to ensure that customers were not disadvantaged by conflicts of interest.
</div>
<div>Bankers had not adhered to National Credit Act in making loans without making reasonable inquiries about the customer's financial circumstances.</div>
<div> </div>
<div>Bank staff frequently receive incentive payments based on the volume of products sold, rather than on ensuring that the bank met responsible lending obligations. It already seems likely Commissioner Kenneth Hayne will recommend sweeping changes to the country's home loan industry. </div>
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Royal Commission-induced credit slowdown could push interest rates rise back to 2020: Shane Oliver

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Sydney house prices stand a good chance of posting growth in 2018, property research group SQM Research managing director Louis Christopher anticipates.
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Christopher told the firm's annual conference in Sydney he was sticking to his forecast of a 4 percent to 8 per cent rise for Sydney and 7 percent to 12 per cent growth for Melbourne.
"APRA will loosen the market again because they are under instruction not to crash the market," Christopher said, according to The Australian Financial Review.
</div>
<div>"We think APRA will lift the credit growth limit limit, if that does occur, we think it will stimulate the investor market."</div>
<div>
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<div>"What the banks are doing is they have been lowering interest rates for property investment...the gap between owner-occupier and investor loans has now narrowed."</div>
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<div>SQM suggest in a worse case scenario - should investors not return - Sydney's house prices would fall only by about 1 per cent, buoyed by steady population growth.</div>
<div>
"I think the reality would be that the first quarter will be line-balled whether prices in Sydney and Melbourne have fallen or not.
"If they fall, it won't be more than 1 per cent," Mr Christopher said.
</div>
<div>"It's very hard to be bearish when you see strong population growth and low unemployment, unless we see a major credit default occur."</div>
<div>
Melbourne has a greater chance of a more severe downturn than Sydney, if a large correction happens.
"In absolute dollars, Melbourne is cheaper than Sydney, but compared to incomes Melbourne is more expensive and more susceptible to a downturn," Mr Christopher said.
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Prices can still go up in Sydney and Melbourne in 2018: SQM's Louis Christopher

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Having been held in one family ownership for three generations, some 79 years, Skastholm at 121 Stephenson Street in Sale is now for sale through agents Pat Rice &amp; Hawkins.
Offers close April 19 unless sold before with a sale guide price of $500,000 plus expected to be achieved.
The vendors have traditionally run about fifteen breeding cows on the productive pastures.
Water resources are significant to include a windmill plus direct access to the Flooding Creek, (a feeder stream of the La Trobe River system nearby), which forms one long boundary of the holding with unrestricted pumping rights for stock and garden requirements.
The property was first purchased by members of the Edwards family in 1939 to operate as a dairy.
It is held under an old riparian title with ownership extending to the middle of the stream.
With a land area of 8.7 hectares, or 21.6 acres, the property is located 2.5 kilometres south east of the central business precinct of Sale.
It is the prominent regional centre at the commencement of the Gippsland Lakes that has a current population in excess of 14,000 people.
The property is opposite the Sale Common and the noted wetlands and wildlife sanctuary.
<img src="https://www.urban.com.au/images/2018/3/21/PRH%20SKASTHOLM%20SALE.jpeg" alt="">
The restored Victorian style weatherboard cottage offers three large bedrooms, with high ceilings and two with open fireplaces retained.
There are all modern services installed while the home has a return veranda.
Domestic needs are met by the country style timber kitchen with a slow combustion stove, a conventional oven and a dishwasher with two adjacent living areas.
It comes with an oversized two car garage cum look up steel shed or workshop, plus an original dairy, a worker’s hut, two hay sheds, a storage building and a set of steel cattle yards.
All the boundary fencing is electrified and with a six paddock internal subdivision.
The vendor says that as she is the last of the Edwards family line and with no succession.
Pat Rice &amp; Hawkins selling agent Matt Childs says that Skastholm - seemingly suggesting a Scandinavian origin - was first established in 1903.
The home has been fully restored from the ground up including the major works of re-stumping, re-wiring, re-plumbing and with a new roof added to provide an executive style family home.
“For a hobby farmer or specialist animal enterprise there is the option to run almost any type of livestock on the well set up subdivision and additional support building,” Childs notes.
 
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Edwards family farm listed after 80 years on Sale outskirts

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A three bedroom house in Balwyn North, 10 km east of Melbourne's Central Business District, has been sold at auction for $2.3 million (pictured below).
It was sold by Meredith Plant and Mark Salvati from Jellis Craig.
<a href="https://www.realestate.com.au/sold/property-house-vic-balwyn+north-127580034">Located at 8 Corhampton Rd</a>, the Victorian home features three bedrooms, formal sitting and dining rooms, a central kitchen with breakfast area and an oversized family room.
It is conveniently close to Kew High School, Kew Golf Course, Macleay Park and Hays Paddock.
 
 
 
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Balwyn North three bedroom house sold at auction for $2.3 million

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After almost 700 days on the market, the Duffys Forest acreage of outdoor advertising boss Ray Balcomb and his wife Julie has been sold.
They undertook a substantial upgrade of the equestrian facilities, and added the main residence, landscaped garden and pool.
The sale price remains undisclosed by Sotheby’s Harriet France and Sydney Country Living’s Shayne Hutton, but it was on offer for more than $10 million.
It tops the Terrey Hills high of $9.5 million set in 2012 by the mansion known as Symingtonia.
The Wyong Road property was bought by the Balcombs for a then suburb high of $4 million in 2003 from Morgan &amp; Banks co-founder Geoff Morgan.
The stable complex at this property is considered one of Sydney's finest private facilities. 
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Duffys Forest equestrian estate sold after longtime $10 million listing

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Positioned between the town and coast, a Qunaba four bedroom house in Queensland has been sold by mortgagees for $325,000.
It was sold by Jonathon Olsen from LJ Hooker in the Bundaberg region.
It had last sold for $390,000 in 2013.
The rental price was $350 a week in 2015.
Set at<a href="https://www.realestate.com.au/sold/property-house-qld-qunaba-126846094" target="_blank"> 21 Panorama Drive</a>, the property comes with four bedrooms, timber kitchen, three bay remote control garage and outdoor covered entertainment area.
Other features include split system air-conditioner, panels solar and solar hot water system.
According to CoreLogic, the suburb's median house price sits on $335,000.
 
 
 
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Loss making Qunaba, Queensland four bedroom home, sold by mortgagee

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

[smartcode_project:default project_id=150414 project_image_fid=372744]

Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

[smartcode_project:default project_id=150414 project_image_fid=372742]

A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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[smartcode_project:default project_id=146717 project_image_fid=372212]

Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

[smartcode_project:default project_id=146717 project_image_fid=372227]

Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

[smartcode_project:default project_id=146717 project_image_fid=372225]

While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

[smartcode_project:default project_id=146717 project_image_fid=372222]

The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

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A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

[smartcode_project:default project_id=134323 project_image_fid=6390]

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Staff reporter

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