EXPERT OBSERVER

Our research for the upcoming Spring edition of The Price Predictor Index shows that Regional Queensland has set another record, with 171 locations with rising sales activity and 96% of all locations achieving price growth in the past year.

The total of 171 rising markets is the highest recorded in the six years of these quarterly surveys. From 2015 to 2020, the average number of rising markets in our surveys of Regional Queensland was 49. The three surveys in 2021 have recorded 157, 146 and 171 rising markets.

The latest increase in the number of upwardly mobile markets comes despite a further softening in the Sunshine Coast market. The Sunshine Coast Region and Noosa Shire combined still have 19 rising markets, but this compares with 25 three months ago and 37 six months ago. This distinct pattern of a softening market comes after three very strong years in this market, and prices are still rising.

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Elsewhere in Regional Queensland, it&rsquo;s very much a story of growth. The Gold Coast, Cairns, Bundaberg, Gladstone, Mackay, Rockhampton, Toowoomba and Townsville have all increased the number of suburbs with rising sales volumes.

The Gold Coast is the most prolific municipality in the nation: 37 of the 49 Gold Coast City suburbs ranked in this report have rising trajectories with sales activity. This is an incredibly strong market, thriving on the Exodus to Affordable Lifestyle trend and going to another level every time Sydney and Melbourne experience lockdowns. Southport is a particularly prolific market: quarterly sales have been 197 288 382 496 505.

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The other standout market is Toowoomba, where 14 of the 17 suburbs ranked in this report are categorised as growth markets.

In the Far North of the state, both Cairns and Townsville have buoyant markets. Cairns has 16 suburbs with rising sales activity and Townsville has 11. In Palm Cove in Cairns, quarterly sales activity has been 25 54 69 78 92.

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In Central Queensland, nine of the 10 Rockhampton suburbs in this report are rising, while 10 of the 14 Mackay suburbs have increasing sales activity. In Yeppoon, quarterly sales have been 41 73 99 107

Gladstone is continuing its revival after a long slump: 8 out of 12 suburbs now have rising sales activity and there is growing evidence of price recovery.

Bundaberg continues to emerge as a growth city, with 8 out of 11 suburbs delivering rising sales activity.

There is also rising momentum in the Whitsundays market.

PRICES: The Sunshine Coast region is the undoubted star of price growth performance in Regional Queensland, although the Gold Coast is also challenging.

Across Queensland, 96% of locations have recorded growth in their median house prices in the past year. Almost 60% of locations have risen more than 10%.

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Unit markets have also done well, with 85% of locations recording annual rises in their median unit prices.

Across the region covered by the Sunshine Coast and Noosa councils, there are 33 suburbs and towns where the median house price has increased by at least 12% in the past year.

Sunrise Beach is up 37% to $1.2 million, while Minyama has risen 29% to $1.5 million. Markets which have increased 20-22% include Coolum Beach ($850,000), Wurtulla ($745,000), Woombye ($635,000), Twin Waters ($970,000), Maleny ($750,000), Mt Coolum ($760,000), Mudjimba ($920,000) and Noosaville ($1.35 million).

The Gold Coast has 26 suburbs with annual growth in house prices above 12%, led by Currumbin (up 24% to $1.18 million) and Bundall (22% to $1.27 million). Tallai, Tugun, Coomera, Labrador and Miami have all lifted 18-19% in the past year.

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The Hervey Bay market is lifting, headed by the 25% rise in Pialba ($400,000), while six other suburbs have increased more than 12%.

Mackay has several growing suburbs, led by 30% in Sarina ($375,000) and 25% in East Mackay ($425,000). Gladstone&rsquo;s recovery continues, with double-digit median price growth in six of its suburbs.

In Far North Queensland, Cairns has multiple growth locations, including Palm Cove (up 30% to $770,000), Caravonica (30% to $500,000) and Port Douglas (27% to $750,000). The revival in Townsville is being led by the 30% rise in North Ward ($735,000).

Unit markets have also done well, with 85% of locations recording annual rises in their median unit prices

terryryder

The rise and rise of Regional Queensland property markets continue: Hotspotting's Terry Ryder

EXPERT OBSERVER

Adelaide is the best story in Australian real estate that never gets told. It&rsquo;s our most under-rated market and one that is delivering big time to those smart enough to see its potential.

For any investor who likes great value for money, high rental yields driven by ultra-low vacancy rates and great potential for growth underpinned by a rising economy, then Adelaide needs to be on their list of prime considerations.

My latest quarterly survey of sales activity and prices confirms that Adelaide is the big improver among the city markets. The previous quarterly survey found a record number of rising markets, but this new survey has topped that by a big margin.

Two-thirds of suburbs across the Adelaide metropolitan area now have rising sales activity. The number of rising markets identified in my five most recent quarterly surveys have been 52 62 93 104 125.

The continued rise of the Adelaide market has been led by several municipalities which increased the number of rising suburbs in this survey: Charles Sturt, Campbelltown, Tea Tree Gully, Marion, Onkaparinga, Mitcham, Holdfast Bay and Playford.

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But the leading LGA continues to be Port Adelaide Enfield, which has 14 suburbs with rising sales activity, including Blair Athol, Broadview, Croydon Park, Greenacres, Klemzig, North Haven, Windsor Gardens and Royal Park.

Close behind is the City of Marion, where the number of rising suburbs has increased from 8 to 13 in this latest survey. Growth markets include Park Holme, Plympton Park, Glengowrie, Dover Gardens, Mitchell Park and Morphettville.

Another big improver is Charles Sturt, where the number of upwardly-mobile suburbs has jumped from 6 to 12.&nbsp; Tea Tree Gully has almost matched that, with 11 rising suburbs, compared to 6 three months ago.

The LGA of Onkaparinga in the far south of Adelaide continues to feature, with 10 suburbs with improving sales activity, led by Happy Valley with quarterly sales of 38 54 60 79.

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There is growing demand in the affordable regions in Adelaide&rsquo;s north: the Playford LGA has rising sales activity in 12 of its 13 suburbs, while nearby Salisbury has 9 rising suburbs.

In the Playford LGA, quarterly sales in Andrews Farm have been 42 54 63 88 while Blakeview has recorded 38 46 49 48 54 67. In the Salisbury LGA, Mawson Lakes has recorded 67 80 87 115 122 and Paralowie has done 41 72 62 80 101.

Other improvers include the LGAs of Campbelltown (7 growth suburbs), Burnside (5), Holdfast Bay (5) and Mitcham (7). In the suburb of Campbelltown, quarterly sales have been 56 60 66 66 86 80 97, while in Somerton Park in Holdfast Bay sales have been 31 40 41 45 59.

Overall, there are 12 municipalities across the Adelaide metro area with at least five growth suburbs.

Prices in Adelaide have responded to the steady uplift in the number of rising suburbs, with 90% of locations across the city recording increases in their median house prices over the past 12 months. A similar number have risen in the most recent quarter.

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The most prolific municipality for price growth is the Onkaparinga LGA, noted earlier as an area with growth in the number of suburbs with rising activity: 12 suburbs in this LGA have delivered double-digit growth in their median house prices, led by Seaford (up 19% to $420,000) and Huntfield Heights (up 17% to $335,000). Most of these growth markets have median house prices below $450,000.

The Port Adelaide-Enfield, the leading LGA for the number of rising suburbs based on sales activity, is also seeing strong growth in median prices. Dernancourt ($530,000) and Largs Bay ($655,000) have both increased 18%, while Largs North ($515,000) has grown 17% and Kilburn ($475,000) 16%.

Charles Sturt, noted earlier as an LGA where the number of rising markets has doubled, has good price growth, headed by Henley Beach South (up 20% to $1,060,000), Brompton (up 18% to $595,000) and Grange (up 16% to $830,000).

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Suburbs with strong price uplift are distributed right across the Adelaide metropolitan area. Notable performance has occurred in Seacliff (Holdfast Bay), up 25% to $865,000; Toorak Gardens (Burnside), up 23% to $1,600,000; Craigburn Farm (Mitcham), up 22% to $860,000; Lockleys (West Torrens), up 24% to $810,000; and Fullarton (Unley), up 21% to $1,105,000).

In the cheaper areas of the city, Salisbury Downs ($355,000), Salisbury Heights ($455,000), Elizabeth Downs ($210,000) and Munno Para ($295,000) have all risen 16-17%.

But the No.1 suburb for annual growth in median house prices is Walkerville, which has increased 31% to $1,490,000.

Two-thirds of suburbs across the Adelaide metropolitan area now have rising sales activity

The rise and rise of Adelaide's property market: Hotspotting's Terry Ryder

The Perth market is pumping in a way that hasn&rsquo;t been seen since the end of the resources investment boom in 2013.

This is most starkly evident in the sales data. In the three years from 2018 to 2020, Perth recorded between 34 and 59 suburbs with rising sales activity in our quarterly surveys. But our three surveys in 2021 have found 118, 103 and 115 rising suburbs.

Our latest quarterly analysis has found improvement in many of the major municipalities across the Perth metropolitan area. Armadale, Bayswater, Belmont, Canning, Gosnells, Joondalup, Kwinana, Stirling and Wanneroo have all increased the number of suburbs with rising market activity, while Rockingham has maintained its position with all nine suburbs classified as rising markets.

The one notable under-achiever is the Melville LGA, where only three of 14 ranked suburbs are rising markets.

The two leading municipalities are Wanneroo and Stirling. In Wanneroo, 17 of the 21 ranked suburbs are classified as rising markets, headed by Butler (quarterly sales of 50 51 61 65 71 95 96 120 125), Landsdale (50 67 70 73 82) and Clarkson (58 64 63 99 101 114 120). In Yanchep, quarterly sales have risen from 35-40 in 2019 to above 100 per quarter now.

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Fifteen of the 23 ranked suburbs in the LGA of Stirling are rising markets, maintaining this area&rsquo;s track record as a place of sterling performance. Quarterly sales in Balga have been 59 77 83 83 101 while Mt Lawley has recorded 56 71 101 106 112 and Nollamara 53 99 94 109 115.

Rockingham is one of the few LGAs in the nation where every suburb is rising, headed by Baldivis (134 223 220 290 295) and Port Kennedy (48 48 76 85 91 112)

The always-steady Joondalup LGA has improved its ranking, with the number of rising suburbs increasing from six to nine in the latest survey, with a notable uplift in prices (see below). Quarterly sales in Craigie have been 33 39 50 59 67.

There has also been a significant improvement in the LGA of Bayswater, with the number of rising suburbs improving from two to six, including Bayswater, Bedford, Maylands and Noranda.

In the city of Cockburn, nine of the 13 ranked suburbs have upwardly-mobile markets, including Coolbellup, Coogee, Hamilton Hill and Spearwood.

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There has been notable improvement in several of the cheaper markets in the Perth metro area: Armadale (6), Canning (4), Gosnells (6) and Kwinana (5) have all increased the number of suburbs with rising sales.

The suburb of Armadale has recorded quarterly sales of 50 61 69 79 87, while Bentley in the Canning LGA has had 29 29 51 57 65 and neighbouring East Cannington has done 19 26 27 39 43. Quarterly sales in Gosnells have been 60 63 99 105 134 138.

In the Kwinana LGA, the cheapest market in Perth, Orelia sales have been 12 17 21 25 43 and Wellard 33 50 66 93 110.

Swan has maintained its steady position with five rising suburbs, led by Ellenbrook (88 96 96 131 153 159 165).

PRICES: It&rsquo;s been a long time between drinks, but prices are now moving strongly upwards in the Perth market &ndash; 97% of suburbs have recorded annual growth in their median house prices while 73% of unit markets have risen in the past year.

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There are only six suburbs in the Greater Perth area which have failed a record price growth in the past 12 months.

For several years we have ranked the Joondalup LGA as the precinct most likely to thrive when the Perth market recovered and now it&rsquo;s leading on price performance. Thirteen suburbs have had double-digit growth in their median house prices in the past year, led by the 21% rise to $595,000 in Currambine. Craigie ($465,000) and Duncraig ($750,000) have risen 15-16%.

Northern neighbour Wanneroo has also done well, with eight suburbs rising more than 10% in the past year, headed by the 16% rise to $400,000 in Banksia Grove. Girrawheen ($320,000), Marangaroo ($425,000) and Yanchep ($415,000) have all increased 15%. As the figures show, affordability is a feature here.

We have also predicted improvement in the ridiculously cheap suburbs in Kwinana LGA &ndash; Wellard ($410,000), Parmelia ($275,000), Leda ($290,000), Medina ($250,000) and Orelia ($265,000) have all risen more than 10%, with Medina (up 28%) the star.

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Further south, another affordable precinct, the Armadale LGA, has several good growth markets, led by Kelmscott ($340,000) and Armadale ($245,000), which have increased 21-22%.

Two middle market areas which have featured often in our Top 5 Perth Hotspots reports &ndash; Stirling and Melville &ndash; are both prominent now with good price growth. The Stirling uplift is headed by Joondanna ($710,000), Yokine ($650,000) and Osborne Park ($550,000), all up 15-16%. In Melville, Bicton has surged 31% to $1.13 million and other growth suburbs are Palmyra, Mt Pleasant, Bull Creek and Bateman.

Among the more expensive suburbs, the growth leaders are Claremont (up 34% to $1.7 million), City Beach (25% to $2.09 million), Floreat (21% to $1.57 million) and Cottesloe (20% to $2.3 million).

Our three surveys in 2021 have found 118, 103 and 115 rising suburbs.

The Perth property market continues its resurgence: Hotspotting's Terry Ryder

EXPERT OPINION

Multiple factors are driving our real estate markets but it can all be distilled down to this: we have shortages of everything.

Why are prices rising? Because there&rsquo;s a shortage of listings, relative to buyer demand.

Why are rents rising? Because there&rsquo;s a chronic shortage of rental properties.

Why are building costs rising? Because there&rsquo;s a shortage of everything and everybody involved in the creation of new dwellings.

Who&rsquo;s responsible for these situations? The politicians and bureaucrats who love to tinker at the edges of our property markets but never think beyond the press conference.

These shortages and their consequences create serious issues for Australians and they warrant urgent action. But there&rsquo;s no evidence that the politicians are even aware there&rsquo;s a problem.

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They&rsquo;re all obsessed with the pandemic and haven&rsquo;t noticed the multitude of tenants who can&rsquo;t find a rental property at any price or the prospective owners of a newly-built home who can&rsquo;t proceed because they can&rsquo;t find an available builder - or the one they have can&rsquo;t get the materials they need.

We have a serious undersupply of rental properties because investors have been discouraged by a series of decisions and policies by politicians and bureaucrats over the past five years.

Investors have been largely sitting on the sidelines and right now there are more investors selling than buying.

The shortage of rental properties is dire. Most postcodes across Australia now have vacancy rates below 1% and many are closer to zero than 1%.

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Anyone who makes a rental property available and stages an open house will have queues of applicants and people offering more than the asking rental.

That&rsquo;s why rents are rising. Those who react to the symptoms rather than the causes are calling for controls on rents, but that will make the problem worse, by further deterring investors who are an essential part of this equation.

Placing a cap of rentals is no help to desperate individuals and families who can&rsquo;t find a rental property at any price.

When it comes to building new homes, in desirable locations, there are crippling shortages of everything that forms part of the process. The first issue is getting your foot on a block of land. In many places, everything has been sold and it takes time for developers to create new supply of land that&rsquo;s ready to be sold.

If you do have a block of land with your name on it, the next issue is trying to find a builder who&rsquo;s not booked out for the next year or more.

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If you have a builder, it&rsquo;s highly likely they can&rsquo;t do the job any time soon because they can&rsquo;t get steel or timber or bricks. Supply chains have been disrupted by the heavy demand and by the pandemic.

This means the cost of building your home is rising by the week. A lot.

If you&#39;re fortunate enough to have a fixed price contract locked in, your builder has a massive problem because they may be forced to build the home at a significant loss because their costs are going through the roof, pun intended.

Having the cost and completion date locked into a contract is worth little if your builder goes broke in mid-project.

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Who caused this shemozzle? The idiot politicians who patted themselves on the back for bringing in the HomeBuilder handout, but didn&#39;t bother to consider the impact that would have on supply chains.

This has become a big problem for everyone in the market &ndash; consumers, builders, suppliers, selling agents, buyers&rsquo; agents, everyone.

It&rsquo;s all part of a dynamic mix of factors that is forcing up the price of real estate almost everywhere in Australia.

Multiple factors are driving our real estate markets, but it can all be distilled down to this: we have shortages of everything



Shortages of listings, rentals and approvals driving the property market: Hotspotting's Terry Ryder

EXPERT OPINION

It&rsquo;s time we stopped treating first-home buyers as a protected species and considered the importance of other cohorts in the housing market.

It&rsquo;s become a kneejerk response in mainstream media to cry outrage whenever property prices rise, with concern for first-timers as the justification for strident headlines.

Media seems to never tire of the &ldquo;young Aussies have been priced out of the market&rdquo; storylines. I have a database of articles going back decades showing that this theme has been bashed by media constantly over the years.

The current claims that young adults are doomed to lifetime of renting are a replay of the headlines from last month, last year, two years ago, five years ago, 10 years ago and indeed 20 years ago.

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Were they justified and accurate, the past 18 months would not occurred. Over the past year and a half, we&rsquo;ve seen record buying activity by first-home buyers.

The spectacular price growth seen in that period has been driven, not by investors, but by first-home buyers and other owner-occupier buyers. Helped by a high level of government assistance, they have pumped up demand at a time of low supply, hence the big price rises.

Rising prices make it harder for first-timers to get into their local markets, but otherwise there&rsquo;s never been a time when they&rsquo;ve had so much in their favour.

There are multiple federal and state schemes provided easy access to finance, cash hand-outs and special concessions on costs like stamp duty. The low level of mortgage rates is a bonus.

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Australia is already doing all that it needs to do to smooth the path for budding young buyers.

Beyond that, how about some consideration for other types of buyers.

What about second-time buyers? Consider this scenario: a young couple buys a small apartment as their first home &ndash; it&rsquo;s affordable, well located and suits their lifestyle.

Then they decide to start a family and they need to upgrade to a larger dwelling. For most, this means selling the existing home and buying something more appropriate.

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They&rsquo;re still young, aspirational Aussies seeking to navigate the property minefield of high competition, low supply, rising prices and prohibitive buying/selling costs. But what assistance does this country offer them? The answer is: nothing.

Once they&rsquo;ve bought that first home, they cease to be worthy of consideration or assistance. They&rsquo;re on their own.

So, what about down-sizers? Older Australians rattling around in the family home, with the kids grown and out in the world. The family home is now inappropriate to their needs &ndash; it&rsquo;s too big and it costs time, energy and money to maintain. Ideally, that older couple or individual would like to downsize &ndash; sell the big house and buy a comfortable low-maintenance apartment perhaps.

Many older Australians would like to take that step and we keep hearing politicians encouraging them to do so, to free up those big homes for young families.

But many don&rsquo;t take that step. Why not? Because the costs are prohibitive.

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Selling a home and buying another can easily cost $50,000, $100,000 or more in stamp duty, agents&rsquo; commissions, legal fees, relocation costs and more. When you&rsquo;re retired or approaching retirement, those costs are deal-breakers.

I&rsquo;ve considered making the downsizing decision myself. I won&rsquo;t be doing it any time soon because the costs are ridiculous.

Politicians urge older Australians to make this move, but how much assistance is provided by them in terms of easing the cost burdens? Exactly zero.

And how about some incentives for investors to get active in the market. We have a chronic shortage of rental properties in most locations across Australia because of a series of measures by politicians and bureaucrats over the past 5-6 years that have massively discouraged investors. Australia needs to change course and encourage investors to buy homes and make them available for rent.

We don&rsquo;t need to stop the world and reorganise how our markets work because potential first-home buyers are having a whinge about how tough things are for them. They already have huge levels of government assistance available to them.

Rather, we should be considering ways to help other cohorts in the housing markets who are equally worthy of assistance. 
&nbsp;

It’s become a kneejerk response in mainstream media to cry outrage whenever property prices rise, with concern for first-timers as the justification for strident headlines

The first home buyer conundrum and why other buyer segments matter: Hotspotting's Terry Ryder

Ten years of intense investment and premium growth - that&rsquo;s what the Olympics means to South-East Queensland real estate.

Confirmation that Brisbane will host the 2032 Olympics is a game-changer for the economies and property markets of South-East Queensland &ndash; and the state generally.

Property prices and rents are already rising in Brisbane, the Gold Coast and the Sunshine

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Coast but the Olympics announcement will turbocharge markets throughout the region.

Spending on major new infrastructure has been pivotal in generating economic activity, jobs and real estate demand in SEQ in the past year &ndash; but the prospect of hosting the Olympics in

10 years&rsquo; time will generate an elevated program of investment and development.

&nbsp;

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The real estate industry tends to spruik a property boom after a major event like the Olympics but all the evidence suggests that the greatest impact for property markets occurs in the lead- up to the event, not in the aftermath.

History shows that major international sporting carnivals generate big growth beforehand.

The Sydney Olympics in 2000 and the Commonwealth Games on the Gold Coast in 2018 provide templates for how these big events impact local economies and property markets.

The years leading up to the 2018 Commonwealth Games on the Gold Coast saw increased real estate activity, thanks to the rising levels of construction of infrastructure and facilities, the jobs this generated and the consequent demand for real estate accommodation.

There were similar outcomes around the 2000 Olympics in Sydney.

The Olympics announcement also creates increased media focus on the SEQ region and the affordable lifestyle it offers. And it starts now &ndash; and will extend over the next 10 years.

As a consequence, the next decade will be a period of out-performance for real estate across Brisbane, the Gold Coast and Sunshine Coast in particular.

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PIPA chairman Peter Koulizos has commented on what the 2032 Olympic Games may mean for the Brisbane property market.&nbsp;

&ldquo;Research shows that residential property prices do perform better as a result of an Olympic Games,&quot;&nbsp;he says.&nbsp;&nbsp;

&ldquo;A study on six host cities, from Los Angeles in 1984 to Sydney in 2000, suggests that the impact on the economy and residential property prices is not even. It depends on the planning and the scale of the Olympic investment.&nbsp;&nbsp;

&ldquo;Research on the London Olympics showed that areas close to Olympic facilities increased in value by 2% to 5% higher than other areas.&nbsp;

&ldquo;An investigation on the impact of the Sydney Olympics on the residential property market found that the markets of host suburbs experienced substantially higher growth during the bidding and pre-Olympic periods, but not after the Olympics were held.&nbsp;

&ldquo;PIPA has conducted research into Sydney&rsquo;s residential property prices pre- and post- Olympics that shows that from the time the announcement was made in September 1993 to the Olympics being held, Sydney was one of the best performing capital cities. However, post-Olympics, the rate of growth decreased significantly.&nbsp; &ldquo;Based on our research and analysis, it is obvious that Brisbane and South-East Queensland will benefit from hosting the Olympic Games.

&ldquo;However, the benefits will vary depending on the location of Olympic facilities and the new infrastructure to be built, especially infrastructure that will better link the Sunshine Coast and Gold Coast to Brisbane.&rdquo;

Ten years of intense investment and premium growth - that’s what the Olympics means to South-East Queensland real estate

What does the Olympics means to South-East Queensland real estate? Hotspotting's Terry Ryder

A key reason why fundamental problems in the housing market are never solved is because people seek to treat the symptoms rather than the cause.

This is true in business and in life, as much as it is in the housing market. It makes little sense to take medication for high blood pressure if the underlying cause is that you&rsquo;re overweight because you have a bad diet and you don&rsquo;t exercise.

People who hover around the sidelines of the real estate industry, sniping at things they don&rsquo;t like, are highly prone to demanding actions on the symptoms of a perceived problem when they should be addressing the underlying causes of the symptoms.

Treating symptoms, while ignoring causes, has a tendency to make problems worse. Right now, we have spectators to the housing market demanding controls on landlords because rents are rising.

Other spectators want draconian measures from regulatory authorities because prices are rising, bringing howls of outrage about housing affordability.

In both cases, their targets are investors, always a popular choice as scapegoats when there&rsquo;s growth in housing markets and it&rsquo;s characterised in media as a crisis.

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The natural impulse of the sideline whingers is to demand a crackdown aimed at investors, because they&rsquo;re always seen as the villains.

The reality for the issue of rapidly rising rents is that we need to be encouraging investors, not attacking them.

The symptoms of the problem are rising rents, but the cause is a chronic shortage of rental properties.

In my four decades of researching and writing about housing markets, I&rsquo;ve never seen vacancies so low in so many places.

Anyone genuine in their concerns (rather than having a whinge or grandstanding for political reasons) should be asking why we have such a shortage and how we can fix that fundamental problem.

Rental control is a quick fix medicine to treat the symptoms, while ignoring the underlying market health issues. It will make the problem worse by exacerbating the fundamental problem, which is that Australians have been massively discouraged from becoming investors.

Rental vacancies are a function of the activity of property investors. When people buy dwellings and make them available for rental in large numbers, there are ample properties for everyone who wants or needs to be a tenant, and rents are likely to be stable.

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But investors have been largely absent from the market in recent years. There has been a growing raft of disincentives to property investment over the past five or six years &ndash; including a series of negative measures by APRA, negative changes to depreciation rules and menacing political rhetoric at the last two federal elections, notably from the ALP which has been intent on scrapping negative gearing and increasing capital gains tax.

We&rsquo;ve also had state governments discouraging investors by hitting them with new taxes, fees and charges. The impact of all those different milestone events since 2015 has been a profound discouragement to investment. Some sections of media have characterised property investment as something akin to a criminal activity, abetted by politicians who have claimed the average investor is a rich greedy bastard who owns 15 or 20 properties and is ripping off the system &ndash; a blatant lie (the official data shows 75% of investors have average incomes and own only one or two properties) but lapped up by a careless media.

The short-term consequences include a rental shortage crisis and the long-term outcomes include fewer Australians who will be self-funded in retirement and will need to be supported in growing numbers by taxpayers. If governments respond to the twits on the sidelines and enforce controls on rental levels, rather than allow market forces to set them, that will be yet another disincentive to investors &ndash; and the problem will get worse.

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Limiting how much a tenant has to pay in rent is worthless if the prospective tenant can&rsquo;t find a vacant property at any price. That&rsquo;s the reality at the moment. There are so few vacant properties that there are dozens of applicants for every listing and people who desperately need a home keep missing out. Rents are rising because people are offering more than the asking rent in an effort to out-bid their competitors, not because landlords are asking extortionate rents.

And, as an aside, increasingly businesses can&rsquo;t fill job vacancies because willing applicants can&rsquo;t find anywhere to live. The only answer to this problem is to increase the supply of rental properties. And that means introducing measures that encourage property investors.

That will elicit further howls of indignation from the chattering economists and other sideline snipers, but it&rsquo;s the only way to fix this problem.

Rental control is a quick fix medicine to treat the symptoms, It will make the problem worse by exacerbating the fundamental problem, which is that Australians have been massively discouraged from becoming investors

Why is there a housing shortage and why will government controls make it worse? Hotspotting's Terry Ryder

One of most bemusing factors of modern media is that people with appalling credentials at forecasting things are given a free ride by journalists.

In a sensible world, only credible people would have their forecasts held up before the public as something worthy of attention. In this utopia, journalists would check on the track record of forecasters before publishing their latest predictions.

On that basis, the American doomsday merchant Harry S Dent would never feature in Australia media. Every time he visits, which sadly is often, he forecasts a disastrous collapse in our property prices in the next 12 months.

Nothing like that ever happens but each time he makes this recurring forecast, he gets acres of free publicity. No doubt he will next time as well. The reality is that few journalists care too much if the prediction is outlandish or if the forecaster is someone who invariably gets it wrong.

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The priority is the clickbait headline. Anyone seeking cheap publicity can make a wackadoodle prediction &ndash; prices will fall 40% or young families will never be able to buy a home ever again - safe in the certainty that no one will check later to see how their forecast turned out and hold them to account.

Here are some recent forecasts or observations about real estate matters which received widespread media attention but are doomed to be proven off target:- &ldquo;Missing migrants&rdquo; will &ldquo;choke&rdquo; the housing rebound&rdquo; (The Australian): &ldquo;Weak population growth due to low immigration could drive a slowdown in the housing market&rdquo; (The Courier-Mail): Economists and other non-specialists continue to obsess over the absence of overseas migrants and the view that this should be impacting housing markets. It&rsquo;s very naughty of property markets not to collapse on cue.

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One of the factors they&rsquo;ve overlooked is that returning ex-pats have more than compensated for the lack of overseas migrants buying homes. And when international borders do re-open, I believe there will be an avalanche of migrants heading to Australia, creating a second wave of buyer demand which will prolong the current upcycle.

One of the proponents of the population furphy in recent media coverage is the nation&rsquo;s worst forecaster of real estate outcomes, Shane Oliver of AMP Capital. Keep in mind that 12-15 months ago he was forecasting a collapse in property prices. &ldquo;FHBs will be squeezed out of property market by investors&rdquo; (The Courier-Mail) and many others: Media outlets struggling for a headline can always resort to the hardy annual that young Australians are doomed to a lifetime of renting, with investors the villains of the piece. This has been a recurring theme in Australian media for decades. And yet the past 12 months has been the most prolific period ever for first-time buyers, helped by high levels of government assistance.

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Prices are rising across the nation and somewhat inevitably media has turned this into a crisis because FHBs, allegedly, will never again be able to afford home. Investors, as usual, are the scapegoats

The reality is that this dramatic escalation in prices in the past 6-12 months has been generated by owner-occupier buyers, including FHBs, with investors largely absent. &ldquo;House price growth tipped to slow despite the RBA cash rate call&rdquo; (Smart Property Investor); &ldquo;End of the property boom, experts say&rdquo; (realestate.com.au); &ldquo;68% of experts says prices will peak this year&rdquo; (various media); &ldquo;Is the housing boom about to bust?&rdquo; (The Age) and many others: There appears to be an unofficial competition to be the first the call the end of the boom, with the level of interest rates the prime influence.

When the national average growth in property values was slightly lower in April than in March (according to one research source), &ldquo;experts&rdquo; rushed to declare the end of the boom. But May produced another uplift in the rate of growth. Oops. Then, again, when the rate of national growth in June was less than May, there was another &ldquo;the boom is over&rdquo; chorus. All this was, rather foolishly, based on month-to-month data from one source. Media is very liberal with its use of the word &ldquo;expert&rdquo;.

Finder&rsquo;s regular surveys of &ldquo;experts&rdquo;, which includes the one that found that &ldquo;68% of experts&rdquo; expect prices to peak soon, do not include many people who deserve the title of expert with regards to real estate. Most of them are economists and academics &ndash; there&rsquo;s hardly a genuine expert among them.

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&ldquo;Almost a third predict rate rise over 12 months &ndash; ANZ survey&rdquo; (Mortgage Business); &ldquo;Why interest rates could be set to rise in 2022&rdquo; (Fairfax Media); &ldquo;ANZ tips early rate hike&rdquo; (The Australian) and many others: Media is obsessed with interest rates and there is daily speculation that the official rate will rise.

The Reserve Bank governor Philip Lowe keeps repeating that he doesn&rsquo;t see an interest rate increase before 2024, but &ldquo;experts&rdquo; eager for media mileage persist with their speculation that the cash rate will go up much sooner. Apparently they believe Lowe is lying. I don&rsquo;t believe consumers share journalists&rsquo; fascination with the level of the official interest rate. For them, the day-to-day speculation is pointless and boring.

The implication in much of the coverage is that if the official interest does rise, the property boom will end. This is based on the mistaken belief that &ldquo;record low interest rates&rdquo; have caused the strong market, which is kindergarten analysis delivered by &ldquo;experts&rdquo;. There is also constant speculation about an intervention by APRA, although there is no indication that current lending standards would warrant it.

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&ldquo;Property buyer and developers should be quaking in their boot&rdquo; (AFR): This rather sensationalist article in the increasingly-tabloid Financial Review was based on the notion that &ldquo;sharply rising interest rates and falling population growth&rdquo; would precipitate a crash.

It was also predicated on the theory that we&rsquo;ve had a national property boom for the past 25 years and that FHBs can no longer afford to buy. Much of the rhetoric in the article was based on the thoughts of prolific media commentator&nbsp;Chris Richardson from Deloitte Access Economics, who loves an opportunity to deliver a pithy five-second grab for television and other media. Yes, another &ldquo;expert&rdquo;. This article was sensationalist and lacking in substance, like so much coverage of real estate.

In a sensible world, only credible people would have their forecasts held up before the public as something worthy of attention

Don't believe every property forecast you read: Hotspotting's Terry Ryder 

EXPERT OBSERVER

It&rsquo;s long overdue for real estate consumers to let go of the notion that proximity to the CBD matters.

Long before the pandemic and its impact on the Central Business Districts of our major cities, the relevance of the CBD in choosing where to live or invest was diminishing year by year.

The fallacy persists that most people work in the CBD. The reality is that, in all our capital cities, the vast majority work in suburban employment nodes.

There are, for example, over 2.1 million people employed in the Greater Melbourne area, but only about 20% work in the City of Melbourne (the CBD and near-city suburbs).

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For most people, when it comes to choosing a place to live, the CBD is irrelevant.

They don&rsquo;t work there, they don&rsquo;t shop there and their kids don&rsquo;t go to school there.

The average person has little reason to ever visit a CBD, although they may occasionally go to a CBD for entertainment or leisure.

But I still have people regularly raising, as an objection to a particular location, that it&rsquo;s a long way from the CBD.

Like many myths in real estate, this one just refuses to die.

In Sydney, the suburbs closest to the CBD are greatly under-valued, with median house prices well under $2 million (which is miserable by Sydney standards), like Redfern ($1.45 million), Newtown ($1.42 million), Glebe ($1.7 million) and Camperdown ($1.6 million).

The most prestigious suburbs, the ones with median prices above $3 million, are in many cases a long way from the tall office buildings &ndash; suburbs like Cremorne, Killara, Lindfield and Manly.

The Sydney locations with the best long-term capital growth rates, those where price growth has averaged more than 8% per year over the past decade, include many which a great distance from the Sydney CBD.

They include humble suburbs a long, long way from the City, like &hellip;

<ul>
	<li>St Marys out at Penrith,</li>
	<li>Minto and Macquarie Fields in the far south-west,</li>
	<li>Parramatta and North Parramatta,</li>
	<li>Marsden Park out near Blacktown,</li>
	<li>Middleton Grange in the precinct around Liverpool,</li>
	<li>Smithfield in the Cumberland LGA,</li>
	<li>Canley Vale in the Fairfield LGA,</li>
	<li>Kogarah in the Georges River LGA</li>
</ul>

They also include Northern Beaches suburbs like Seaforth, Avalon Beach and Dee Why, as well as north-of-the-harbour locales like Cremorne, Lindfield, North Willoughby and West Ryde.

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In Melbourne, if you want to find superior capital growth over time, you need to head a long way from the City centre, in most cases.

The greatest concentration of suburbs with long-term growth averages above 7% per year in the Greater Melbourne area is the Mornington Peninsula, where Bittern, Mt Martha, Tootgarook and Sorrento all have outstanding growth records.

The distance between Sorrento and the Melbourne CBD is over 100km, around an hour and a half by car. The median house price for Sorrento has risen almost 30% in the past 12 months. Nearby Tootgarook is a lot less expensive, despite a 20% rise in the median price in the past year.

Only slightly closer to the tall buildings is the new development suburb of Clyde North in the City of Casey, with a long-term growth rate close to 9% per year.

The suburb of Williams Landing down in Wyndham City in the far south-west also has a long-term growth rate above 8% per year &ndash; as does the suburb of Mickleham in the City of Hume in the far north of the Melbourne metro area.

Middle-ring areas with great growth rates include Box Hill, Brunswick East and Derrimut.

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All those places out-perform Toorak, Elwood, Elsternwick, Glen Iris, Kew and Malvern on capital growth rates.

Upmarket near-city locations which have outstanding growth rates &ndash; these are the exceptions rather than the norms &ndash; include Hawthorn, South Yarra and South Melbourne.

The key message is that the elements that drive values higher, because they attract buyers in large numbers, include affordability, infrastructure and lifestyle. Proximity to the CBD doesn&rsquo;t feature prominently.

So, if you&rsquo;re a home buyer or investor with a budget that forces you to buy in middle or outer ring areas, don&rsquo;t worry about it. There are way bigger things it&rsquo;s good to be close to, other than the CBD.

It’s long overdue for real estate consumers to let go of the notion that proximity to the CBD matters.

Nothing wrong with buying property away from the CBD: Hotspotting's Terry Ryder

EXPERT OBSERVER

The most predictable thing in real estate is the outrage that emerges from some sections of the community whenever dwelling prices rise. Equally predictable is the willingness of mainstream media to indulge the disaffected few 
who think politicians and bureaucrats should be taking action to stop the markets doing what they naturally do.

There was considerable media coverage last week of a &ldquo;report&rdquo; from the University of New South Wales which called for &ldquo;the immediate creation of a Royal Commission&rdquo; because rising prices constitute a national crisis and young Aussies are &ldquo;locked out of the market&rdquo;.

One headline based on this report declared: &ldquo;House prices a time bomb ready to erupt in the absence of immediate intervention&rdquo;.

The lead author was someone smart enough to attain the title of &ldquo;professor&rdquo; but not clever enough to understand the dynamics of real estate markets.

Here&rsquo;s one quote that demonstrates how little the report author knows:

&ldquo;Rampant price growth has&nbsp;returned to the&nbsp;larger cities&nbsp;and is now&nbsp;spreading to&nbsp;regional Australia. This&nbsp;is&nbsp;in&nbsp;part&nbsp;due to the pandemic-fueled work-from-home revolution&nbsp;but&nbsp;is&nbsp;also because so many younger Australians can no longer afford the life they want as homeowners in the larger cities.&rdquo;

There are several errors in that one short paragraph, which would tend to destroy the credibility of the commentator:

1. Price growth did not start with the big cities and spread to the regions &ndash; it&rsquo;s been the opposite. The regions have been leading on price growth for some time, alongside some of the smaller cities - and the big cities, notably Melbourne, have belatedly joined the party.

2. The work-from-home revolution is not an outcome of the pandemic. It&rsquo;s been under way for several years and has been fueled by technology and people&rsquo;s desire for a better lifestyle. Sydney has been losing population to internal migration for the past decade and Melbourne for the past four years. This is one reason why regional markets have been leading on price growth. The pandemic has provided further impetus to this trend but it certainly did not create it.

3. The statement that young people can&rsquo;t afford to live in the big cities has been plucked by the professor out of his fundamental orifice. First-home buyers have been in the market in record numbers of the past 12 months, boosted by federal and state stimulus measures, and have been buying in Sydney and Melbourne as much as anywhere else. They have been leading the market and have been prime instigators of the price rises.

But, in one sense, having a major parliamentary inquiry would be a great idea because it&rsquo;s a sure way to ensure that nothing fundamental will change. Royal Commissions can take years to produce a report and will provide photo opportunities for politicians, but real action is unlikely to result. Watch a few episodes of Yes Minister to see how it works.

We&rsquo;ve had inquiries into the housing market in the past. The most recent federal parliamentary shallow dive into housing affordability spent quite some time giving the appearance of being serious about solving the affordability issue, before taking the easy way out by scapegoating an unpopular minority, foreign investors.

This gave governments a licence to slug overseas buyers with new taxes and charges, providing a new revenue source, while changing nothing that mattered. Affordability did not improve because foreign investors would never the problem. Nor are negatively-geared Australian investors, the other popular choice by the disaffected minority to shoulder the blame for rising property prices.

The reality is that we&rsquo;ve had exceptional price growth over the past year or so, without any major involvement from investors, who collectively have been sitting on the fence for the past three or so years. They&rsquo;re only now starting to come into the market.

Investors never lead market cycles &ndash; they react to them, as they are right now. Those calling for a Royal Commission into the housing market are essentially demanding an inquiry into human behaviour.

If people behaved sensibly and rationally - and did real research to develop real knowledge of real estate - we wouldn&rsquo;t have the nationwide market upheavals we have every 15 or 20 years, including right now. Prices are rising at extraordinary speed because most people are essentially herd animals. They&rsquo;re diving feverishly into the market because everyone else is, not because their actions make sense.

But it&rsquo;s not supposed to make sense, any more than the startling highs and lows of the share market make any real sense. The smart people were buying 9-12 months ago, well ahead of the current frenzy, because they were informed and could see what was coming.

But most just follow the pack and right now the herd is stampeding. Prices are rising rapidly, but for many of our major markets it&rsquo;s the first real growth they&rsquo;ve shown in 5-10 years. Perth and Darwin last had a market peak in 2013 and have been in decline ever since. Now, at last, those cities are delivering some value growth to the long-suffering majority who own their homes &ndash; but self-absorbed Sydney academics would like to rob them of their long-overdue time in the sun.

Similarly, cities like Brisbane and Adelaide have been stagnating for much of the past decade. It&rsquo;s not a crisis for home-owners, including those who had the foresight to buy recently, that values are at last showing some growth. The real crisis in the housing market, and the one that truly does need government action, is the chronic shortage of rental properties.

The solution to this problem is to encourage property investors to do what property investors essentially do, which is create a pool of homes available for rental. That means we want them to be out there buying properties in large numbers.

The New Zealand Government recently had a major brain explosion and essentially wiped investors out of the market by scrapping tax benefits. This compounded the earlier decision to ban foreign investors. The outcome has been a shortage of rental properties even worse than Australia&rsquo;s. Australia risks making the same mistakes, if the politicians listen to misinformed academics.

Those calling for a Royal Commission into the housing market are essentially demanding an inquiry into human behaviour.

Why we don't need a Royal Commission in to surging house prices: Hotspotting's Terry Ryder

<a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> recently welcomed residents into Uno and Duo, marking the completion of the penultimate stage of its $1.2 billion West Village precinct in Brisbane's West End.

There are only two opportunities remaining in the two-tower stage known as The Allere Collection. Duo is fully sold out, but two penthouses have just been released in the sister tower Uno.

The sprawling penthouses, measuring upward of nearly 350 sqm, have been designed by renowned architecture firm Rothelowman to focus on multi-generational living. One penthouse has four bedrooms, the other five, as well as several living areas. A second entry to the apartments make them ideal for those with several generations living under one roof, allowing for greater independence and flexibility within the same home, an increasingly sought-after feature among extended families looking to remain connected without compromising privacy.

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Built by&nbsp;<a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, one of the best in the construction game, Duo forms part of a connected, pet-friendly vertical community that brings together two architecturally aligned towers with shared rooftop amenity.

Rothelowman Principal Jeff Brown previously described the design philosophy as centred on connection.

“When thinking of ways to nourish a soul one needs connection to self, to nature and to community,” Brown said.

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That ethos is expressed through Duo’s rooftop offering, which includes a pool and heated spa framed by mature planting, a private dining room and residents’ lounge, and BBQ facilities. On the lower levels, residents have access to&nbsp;work-from-home spaces, a workshop, and a pet parlour.

The rooftop captures views across the Brisbane River and back toward the city skyline, positioning it as both a retreat and a social anchor for residents.

[smartcode_project:default project_id=114215 project_image_fid=364091]

Owners in Duo also have access to Uno’s rooftop amenities, effectively doubling the shared facilities within the community. At Uno, residents can use a second rooftop pool, additional private dining and entertaining areas, a teppanyaki grill, and the Paw Pavilion, an off-leash space designed for residents’ dogs. The reciprocal access reinforces the project’s “vertical neighbourhood” model, where common areas are intended to extend the footprint of each apartment.

[smartcode_project:default project_id=114215 project_image_fid=5710]

The Allere Collection sits within West Village, a 2.6-hectare mixed-use precinct just 800 metres from the Brisbane CBD. Delivered progressively since 2016 on the former Peters Ice Cream factory site, the masterplan now integrates heritage buildings, retail and dining, health and wellness providers, and open green space into an established inner-west address.

Sekisui has released the final stage of the development, Callista on Park, set to be completed in Q2 next year. With the first release now 95 per cent sold out, limited large-scale three- and four-bedroom residences remain, priced from $2.6 million.

[smartcode_project_cta:default project_id=114215]

Joel Robinson

Allere Collection residents move in as multi-award winning West Village enters its final chapter

Construction is underway at <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a>, the boutique residential development by <a>Excelon Projects</a> on Stephen Street in Yarraville, following the appointment of <a href="https://www.apartments.com.au/builders/balmain-co">Balmain &amp; Co</a> as builder.

The milestone marks a significant step forward for the 53-residence project, designed by <a href="https://www.apartments.com.au/architects/six-degrees-architects">Six Degrees Architects</a> with landscape architecture by Simone Bliss Landscape Architects, conceived around a strong focus on community, craftsmanship and connection to nature.

<a href="https://www.apartments.com.au/developers/excelon-projects">Excelon Projects</a>’ vision brings together 41 one, two and three-bedroom apartments and 12 townhomes arranged around a central landscaped garden, prioritising liveability in a low-rise, low-density format.

[smartcode_project:default project_id=144913 project_image_fid=297728]

Open-air corridors, a light-filled lobby and generous setbacks are intended to enhance day-to-day comfort while reinforcing the development’s community-oriented design approach.

Car parking has been located underground to prioritise shared green space and pedestrian movement through the site, allowing the landscaped garden to form the central organising element of the development.

Interiors incorporate custom pieces by Melbourne makers including leadlight pendants by Adadaz, hand-turned timber door handles by Auburn Woodturning, and blown-glass lighting by Ruth Allen, embedding a layer of local craftsmanship throughout the homes.

[smartcode_project:default project_id=144913 project_image_fid=297736]

Sustainability has also informed the design approach, with Yarraville Green targeting an average 7-star NatHERS energy rating. Passive design measures such as cross-ventilation and thermal mass aim to reduce reliance on mechanical heating and cooling, while rooftop solar panels will supply power to common areas and harvested rainwater will be reused for landscape irrigation.

Positioned along the quiet, tree-lined Stephen Street, Yarraville Green sits between Yarraville and Seddon villages, placing residents within walking distance of cafés, dining, boutique retail and the Sun Theatre.

Seddon Station is also a short walk away, ideal for residents seeking an inner-west address with strong amenity and transport connections.

Completion of Yarraville Green is anticipated in 2027.

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Balmain & Co appointed builder as construction begins at Excelon Projects’ Yarraville Green

A long-stalled Mermaid Beach development site opposite Pacific Fair, previously earmarked for a twin-tower project, is set for a fresh development push with plans for a major mixed-use residential tower.&nbsp;

Billionaire garbo Ian Malouf's development company, REMI Residences, is proposing Project Elegance, a 44-storey tower with over 270 residential apartments and 88 short-term accomodation units at&nbsp;2065 Gold Coast Highway, Mermaid Beach, on the corner of Mermaid Avenue.

Malouf paid $23.76 million for the 3,783 sqm site in 2022, six years after it traded for $34.1 million when it was bought by Hubei United Investment Group.

 
<img alt="First Look: REMI Developments plans major mixed-use tower with 360 apartments at stalled Mermaid Beach site" data-entity-type="" data-entity-uuid="" data-widget="image" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Mermaid%20Beach%20da%20podium.png?VersionId=yRYSSPItvCA5ZeQ49LlwkQYVn7OhEqIC" /><img alt="" data-entity-type="" data-entity-uuid="" draggable="true" height="15" role="presentation" src="data:image/gif;base64,R0lGODlhAQABAPABAP///wAAACH5BAEKAAAALAAAAAABAAEAAAICRAEAOw==" title="Click and drag to move" width="15" />

&nbsp;

The design statement by DKO says Project Elegance "represents a holistic response to its coastal and urban context. It draws upon site, climate, and landscape to create a composed architectural outcome that prioritises occupant experience, public interface, and long-term viability via vibrant and active uses."

They say the subject site&nbsp;occupies a distinctive island parcel with three street frontages and prominent visual exposure to passing visitors.

"This unique position allows the development to form a panoramic dialogue with water and city, setting the foundation for a climate-responsive, site-specific architectural expression.&nbsp;The podium base, inspired by the region’s sandstone headlands and coastal setting, and adopts a sculpted and grounded character that provides a stable counterpoint to the slender tower above."

&nbsp;

<img alt="First Look: REMI Developments plans major mixed-use tower with 360 apartments at stalled Mermaid Beach site" data-entity-type="file" data-entity-uuid="4f088e10-6493-49d4-83cd-10fc039318ac" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Mermaid%20Beach%20da%20tower.png?VersionId=Sbglj0tNBqyvY5V_DlVH.bvjXi8kBbfl" />

Residents and guests would have access to multiple communal recreation levels. Plans include a shared recreation deck on level six, with a pool and three padel courts. There will be a residential-only pool on level seven, and an upper-level communal space only accessible by those buyers towards the top of the tower.

&nbsp;

Ground-floor commercial spaces are proposed to operate between 5am and midnight, contributing to an activated street frontage along the busy Gold Coast Highway corridor.

The site sits within the High Density Residential zone and a Light Rail Urban Renewal Area, where planning policy encourages higher-density development close to transport infrastructure and services. The planning report states the project aims to “ensure the efficient reuse of this centrally located property” and support the transformation of inner-city areas into “more vibrant, compact, interesting, connected and active” precincts.

&nbsp;

The proposal marks the latest attempt to unlock the high-profile parcel, which previously carried approval for the “Elegance” twin-tower development, a project that included more than 500 apartments but ultimately stalled after sales activity ceased in 2019.

REMI Developments has been increasingly active in the Gold Coast property market, with the Malouf-led group positioning itself around premium residential and lifestyle-focused projects as the region continues to attract both interstate buyers and international interest.

Malouf is one of Australia's most impressive entrepreneurs, having sold his waste business fore more than $500 million, having started only with a small truck at 18 years old.

First Look: Billionaire Ian Malouf plans Mermaid Beach tower

A State Significant Development proposal from Ecove Group could see two high-rise residential towers developed above an ALDI-anchored retail podium in Gordon.

The 28-storey towers, dubbed Eight 10, would become the tallest in the sleepy Upper North Shore suburb, which has been stirred by changes to the Low to Mid-Rise Housing Policy aimed at triggering greater density around transport hubs.

Ecove Group’s plans for 810 Pacific Highway, a 2,357 sqm site around 400 metres from Gordon railway station, include 180 apartments, 39 of which would be dedicated as affordable housing.

Architecture firm PBD said in its Design Report the site "presents an exciting opportunity to positively contributes to the surrounding context, enhances the overall urban experience."

<img alt="First Look: Ecove lodges State Significant Development plans for dual-tower “Eight 10” project at 810 Pacific Highway, Gordon" data-entity-type="file" data-entity-uuid="e50141fa-fb0b-44b3-bf9b-c6d87b993c3b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Eight%2010%20podium.png?VersionId=YTgQPBxNnmQwr6x2AJSpVZ1COqa.9oLQ" />

The site previously received approval for a development comprising 56 apartments above retail in 2018.

PBD noted in its report that the planning&nbsp;context for the site has "evolved significantly since the original consent was issued."

In April 2024, the Department of Planning, Housing and Infrastructure (DPHI) identified the site as being located within a Transport Oriented Development (TOD) precinct. In parallel, Ku-ring-gai Council progressed a preferred planning framework for Gordon Town Centre, including proposed amendments to the Ku-ring-gai Local Environmental Plan 2015 (KLEP 2015).

<img alt="First Look: Ecove lodges State Significant Development plans for dual-tower “Eight 10” project at 810 Pacific Highway, Gordon" data-entity-type="file" data-entity-uuid="cf65fb26-a163-41ea-a4d3-8ddbeabd67e4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Eight%2010%20MAP.png?VersionId=vrQJzXSg3xRH.APBmtth5mA2adPmUPjc" />

PBD said the proposed development "responds to the amended KLEP 2015 and, in addition, seeks to utilise the floor space ratio and height incentives available under Chapter 2, Part 2, Division 1 of the State Environmental Planning Policy (Housing) 2021."

Late last year the first project in Gordon through the NSW Government's Housing Delivery Authority was approved. That was for 106 apartments across two connected seven to eight-storey buildings.

Ecove plans 28-storey apartment towers in Gordon

<a href="https://www.apartments.com.au/developers/graya">Graya</a> has set its sights on one of Brisbane’s scarce remaining riverfront development opportunities.

They have spent $17 million on an 810 sqm site across 16-18 Sandford Street, where it is planning SILK, a 15-storey apartment tower with just 22 apartments.

Planning documents outline a single tower designed to take advantage of the site’s northerly outlook toward the river and Brisbane CBD.

There will be eight two-bedrooms and 14 three-bedroom apartments on offer, each either half- or full-floor.

<img alt="Graya" data-entity-type="file" data-entity-uuid="059e1aa4-695c-4556-bafa-e8b5970c06f5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-12%20at%203.07.50%E2%80%AFPM.png?VersionId=tEqwv_m8HYhrXSCStOMFHvGZZ5WgKfEx" />

&nbsp;

According to the Town Planning Assessment, the proposal "showcases a high quality architectural and landscape design outcome that is enhanced by the amenity of the Brisbane River… and provides a subtropical design response that celebrates Brisbane’s climate and lifestyle.”

Ground level includes landscaped communal areas facing the river alongside a gym and outdoor garden space, while the rooftop terrace will feature multiple leisure amenities like swimming pools,&nbsp;dining and barbecue facilities, as well as outdoor relaxation and yoga spaces.

<img alt="Graya" data-entity-type="file" data-entity-uuid="93982dbb-9f27-409b-a319-bd6f458f9ea7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-12%20at%203.09.05%E2%80%AFPM.png?VersionId=gCaaW82pEBxMvXkVkEm4TC_o7_UXA82p" />

Architecturally, the tower form draws inspiration from the movement of water along the river edge. Design documentation describes the building as “a form sculpted by flow, shaped by shifting water,” with curved forms, varied materiality, and sculptural elements used to soften the building’s visual bulk. Sandstone, an iconic material throughout St Lucia, is reinterpreted through a mix of refined and split-face textures across the façade.

The Sandford Street frontage is intended to present an articulated façade featuring vertical landscaping and sculptural architectural elements, helping the tower integrate with the evolving high-density character of the riverfront strip while maintaining visual interest from both the street and river corridor.

Graya has continued to expands its footprint across South East Queensland, with projects under construction across both Brisbane and the Gold Coast.

Terry Ryder

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