<p>Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.</p>

<p>Developer Big Projects brought in the renowned Sydney-based design studio YSG to craft the interiors for The Frederick, Big Projects' new Mermaid Beach project and YSG's first move into the multi-residential development space.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for Big Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of Big Projects.</p>

<p>“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.</p>

<p>"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”</p>

<p data-end="236" data-start="64">A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Architecture, with landscape design by LDG.</p>

<p data-end="951" data-start="762">SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its design flair/ appeal,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. Big Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Joel Robinson

Big Projects taps Sydney’s YSG for first multi-residential project at The Frederick Mermaid Beach

<p>Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;</p>

<p>Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;</p>

<p>The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;</p>

<p>The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;</p>

<p>Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" /></p>

<p>Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;</p>

<p>Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;</p>

<p>The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.</p>

<p>“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."</p>

<p>Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

<p>Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.</p>

<p>The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.</p>

<p>Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366285]</p>

<p>The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.</p>

<p>Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.</p>

<p>All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366277]</p>

<p>Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.</p>

<p>The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.</p>

<p>[smartcode_project_cta:default project_id=150128]</p>


Construction to commence at luxury Glen Iris townhome project, Orchard Mews

<p data-end="150" data-start="66">A rare new apartment development has been proposed on the fringe of St Ives Village.</p>

<p data-end="370" data-start="152">Developer Newquest Property has lodged plans for a low-rise apartment project designed by well-regarded architecture firm Warren &amp; Mahoney, which is best known for its work in the multi-residential sector in Melbourne.</p>

<p data-end="370" data-start="152">The building, proposed for a 1,916 sqm site on <a href="https://www.apartments.com.au/new-apartments/st-ives-residences-3-5-memorial-avenue-nsw-2075">Memorial Avenue</a> opposite St Ives Village Green, has been designed to blend into the surrounding natural environment.</p>

<p data-end="370" data-start="152"><img alt="St Ives" data-entity-type="file" data-entity-uuid="5c1c7437-2fba-4345-a6d7-05321714ad3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.28.46%E2%80%AFPM.png?VersionId=KrYyMaJvNqR7vbx0xbB3Ef8sJ6FuHpmn" /></p>

<p data-end="745" data-start="537">“Drawing inspiration from the pale trunks and flowering canopies of the scribbly gums and blue gums prevalent in the area, a considered material palette was developed,” the architectural design report states.</p>

<p data-end="912" data-start="747">“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”</p>

<p data-end="1185" data-start="914">Of the 33 apartments proposed, 21 will be three-bedroom residences. The remaining mix includes nine two-bedroom apartments, one one-bedroom apartment and two four-bedroom residences. The development will be supported by 62 car parking spaces and 33 secure bicycle spaces.</p>

<p data-end="1270" data-start="1187">The proposal would replace two single-storey brick buildings currently on the site.</p>

<p data-end="1270" data-start="1187"><img alt="St Ives" data-entity-type="file" data-entity-uuid="21422eaf-09a9-4439-9278-b9bd9daf22a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.38.10%E2%80%AFPM.png?VersionId=v.fXSgcUcEscvOZzqcjG5nk3gVqk_Amt" /></p>

<p data-end="1467" data-start="1272">St Ives remains a relatively untapped market for new apartment development. North Shore developer WINIM has a number of projects in the area, while INCA is nearing completion of Ellis Residences.</p>

<p data-end="1635" data-start="1469">More recently, Traders In Purple has lodged plans for one of the denser projects proposed in the suburb, a 75-apartment development on a 5,900 sqm site on Cowan Road.</p>

<p data-end="1635" data-start="1469">NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: NewQuest Property proposes new St Ives apartment development

<p><a href="https://www.apartments.com.au/developers/centa-property-group">Centa Property Group</a> has achieved two major milestones at its <a href="https://www.apartments.com.au/new-apartments/bilinga-house-107-golden-four-drive-bilinga-qld-4225">Bilinga House</a> apartment development in the sought-after southern Gold Coast.</p>

<p>They've almost sold 50 per cent of the Golden Four Drive building, while at the same time announcing the commencement of construction through reputable builder Greyburn Construction.</p>

<p>The boutique 10-storey building, with 47 two- and three-bedroom apartments, now has a mid-to-late 2028 completion date.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5333]</p>

<p>The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed project is positioned just 200 metres from Bilinga Beach and brings a relatively rare apartment offering to a market that has seen limited new supply in recent years.</p>

<p>Residences have been designed to maximise natural light and ventilation, with open-plan interiors, generous glazing, and material palettes that reflect the surrounding coastal landscape.</p>

<p>Interiors incorporate engineered timber flooring, stone benchtops, and custom joinery, with layouts designed to adapt to both permanent living and lock-and-leave use.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Rothelowman Senior Project Leader Matthew Tencate said the design approach centres on liveability and community.</p>

<p>“Providing curated on-site amenities and communal spaces for residents that facilitate a sense of community, liveability, and wellness,” Tencate said.</p>

<p>Residents will have access to a suite of private amenities including a pool, gym, sauna, and communal alfresco areas, alongside practical features such as surfboard storage and bicycle facilities.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Centa Property Group Director Jason Yuen said the project has been designed to appeal to a range of buyers seeking flexibility in how they use their property.</p>

<p>“Bilinga House is designed for those who want the best of both worlds – a modern beachside escape with the flexibility to generate income when you're not there,” Yuen said.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5338]</p>

<p>Bilinga remains one of the quieter pockets of the Gold Coast, sitting between the more established hubs of Coolangatta and Palm Beach. Its appeal has strengthened in recent years, supported by proximity to the Gold Coast Airport and the Oceanway coastal path.</p>

<p>[smartcode_project_cta:default project_id=150037]</p>


Bilinga House apartments snapped up as Greyburn commences construction

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
<p class="Body"><span style="line-height: 1.3em;">The image-makers who groom politicians think we’re simplistic creatures easily led. Primary school mantras like “stop the boats” will get us every time, apparently. Of course, if they were right, no one would ever lose an election.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Body">Queensland’s Premier Anna Palaszczuk, not the sharpest tool in the political shed, clearly thinks the “jobs, jobs, jobs” song sheet is the best one to sing from. She and her ministers are chanting this mantra in front of cameras every day.</p>
<p class="Body">But it doesn’t matter how good the song, if the singer is tone deaf it’s still going to jar with the listener.</p>
<p class="Body">So the Premier’s big pitch to justify a mining lease to Indian corporate villain Adani for a mega-billion coal mine - jobs for Queenslanders, jobs for locals, jobs for everyone north of the NSW border - had a hollow sound. You could see in her delivery at the press conference that she didn’t really believe it herself.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">She is no doubt aware of Adani’s track record of being big on rhetoric and small on delivery. Already the company is pulling back from earlier statements about starting work and there is unlikely to be any action in the next 12 months.</p>
<p class="Body">The company won’t even make the key investment decision until some time in 2017. It has been unable to find a bank willing to lend for the project and there will continue to environmental opposition and court challenges.</p>
<p class="Body"> <span style="line-height: 1.3em;">As one major newspaper commented: “Much is the wailing and gnashing of teeth at the move by the Queensland government to approved the project, but this approval is entirely political. It’s all about the appearance of commitment to jobs – jobs that will never occur unless the coal price doubles.”</span></p>
<p class="Body">If and when the project goes ahead, the modern trend of flying in your workers from distant locations and accommodating them in temporary workers camps will seriously dilute the economic and property market benefits in Central Queensland.</p>
<p class="Body">To recap, this week the Queensland Government issued the mining lease Adani needs to proceed with its Carmichael mega coal mine in the Galilee Basin. I’ve seen many different cost estimates for this project, anywhere between $8 billion and $15 billion.</p>
<p class="Body">Whichever way you look at it, it’s a massive project. The proponent says there will be 4,875 jobs in building and operating the mine, plus 1,520 jobs in building and operating the rail link to Abbot Point. There will be, allegedly, a $4.1 billion boost to the economy.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">But can we believe the numbers about jobs and economic benefits, and will it make any difference to ailing property markets in Central Queensland?</p>
<p class="Body">The mine site is a long way from major population centres. This will be a FIFO operation with temporary accommodation camps set up close to the mine. And we’ve seen what happens to local towns when mining companies bypass the local communities and hire workers from outside the area, flying them in from distant locations.</p>
<p class="Body">Moranbah, Gladstone and Emerald are examples. All attracted major development of new dwellings from builders who expected rising demand for local houses and services, not understanding that most would be flying in and staying in camps. Massive oversupply resulted, causing rents and property values to fall.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">The existence of major resources developments puts pressure on local towns, for example its medical services - but they derive few of the benefits because most of the workers don’t live locally and they don’t spend locally. They take their fat pay packets back home, which might be Brisbane, the Sunshine Coast, Sydney or Perth.</p>
<p class="Body">So the core message is that there will be no property boom, if and when Adani eventually does go ahead with its mega project.</p>
<p class="Body">And, in terms of jobs for locals – there will be few, if any.</p>
<p class="Body"><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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terryryder-YECXbqmri2

No property boom from Queensland's latest FIFO mining project: Terry Ryder 

<html><body>
<p>The number of homes being taken to auction is continuing to increase with 1,677 capital city homes scheduled to go under the hammer this week.</p>
<p>While Sydney had more auctions than Melbourne over the past two weeks, this week, Melbourne’s auction activity is set to rise, bringing the total number of residential auctions to 730, as opposed to the 624 scheduled for Sydney.</p>
<p>This week, auction volumes are higher than last week in the two major auction markets of Melbourne and Sydney, while they remain relatively steady across the remaining capital cities.</p>
<p><span style="text-decoration: underline;"><strong>Capital </strong></span><span style="text-decoration: underline;"><strong>City Auctions this week:</strong></span></p>
<ul>
<li>
<strong>Sydney</strong><strong>: </strong><strong>624</strong>
</li>
<li>
<strong>Melbourne: </strong><strong>730</strong>
</li>
<li>
<strong>Brisbane: </strong><strong>145</strong>
</li>
<li>
<strong>Adelaide: </strong><strong>70</strong>
</li>
<li>
<strong>Perth: </strong><strong>32</strong>
</li>
<li>
<strong>Canberra</strong><strong>: 65</strong>
</li>
</ul>
<p>The three busiest individual suburbs for auctions this week are all located in Melbourne, with 17 auctions scheduled to take place in Mount Waverley, 16 in Reservoir and 14 in Preston.</p>
<p><span style="text-decoration: underline;"><strong>Summary of last week’s results:</strong></span></p>
<p><a href="/images/2016/04/7/20160407-cc-table.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/7/20160407-cc-table.png" alt=""></p>
<p>Across the combined capital cities, clearance rates softened last week from 70.9 percent for the previous week to 66.6 percent last week. Much of the fall in clearance rates was driven by Sydney, which was the busiest auction market over the week, host to 664 auctions and recorded a clearance rate of 69.8 percent, far lower than the 77.9 percent over the previous week.</p>
<p>In Melbourne, the auction clearance rate remained relatively steady, down to 69.2 percent from 71.4 percent the previous week.</p>
<p><a href="/images/2016/04/7/20160407-graph.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/7/20160407-graph.png" alt=""></p>
<p>Despite the fall in Sydney’s auction clearance rate, there were some very strong sub-regions in the city. City and Inner South (91.4 percent) and Eastern Suburbs (90.5 percent) both saw clearance rates in excess of 90 percent, while in Parramatta only one third of auctions were successful.</p>
<p>The strongest clearance rate across Melbourne was 76.3 percent in the Inner East.</p>
<p>Of the other capital city auction markets, Adelaide was the best performer last week with 71.2 percent of auctions clearing, while in all other cities only around half of the properties taken to auction resulted in a sale.</p>
<p><a href="/images/2016/04/7/20160407-sub-region.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/7/20160407-sub-region.png" alt=""></p>
<p> </p>
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smiller-vwPjRHTkST

Melbourne auction levels outpacing Sydney: CoreLogic RP Data's Shana Miller

<html><body>
<p><span style="line-height: 1.3em;">In case it wasn't already obvious from reading this blog, I absolutely love analysing data flows, and I particularly love it when the numbers "just work"!</span></p>
<p>Immigration and population growth is a great case in point.</p>
<p>There was a huge surge in immigration and population growth to more than 450,000 per annum through the mining boom, which naturally slowed as the peak was passed and unemployment began to rise.</p>
<p>I've been hinting on this blog for a while that population growth probably bottomed out in 2015 and by now is probably rising again, though I haven't had any hard data to back that up just yet.</p>
<p>This is partly because a better performing Australian economy is now attracting more migrants - annual employment growth of about +2.3 per cent has been far outpacing population growth of about +1.3 per cent, helping the unemployment rate to cascade into a 28 month downtrend.</p>
<p>And secondly because, largely unrecognised by commentary, a relaxation of visa rules will see tens of thousands of international students acquire permanent residency through the "back door" of higher education.</p>
<div><strong><span style="text-decoration: underline;">Immigration rises again</span></strong></div>
<div> </div>
<div>There was a significant +14 per cent year-on-year jump in the number of permanent and long term arrivals in February to 91,590, while the number of permanent and long term departues wasn't much changed at +31,700, for a net monthly inflow of just under 60,000.</div>
<div> </div>
<div>I wouldn't read too much into one month of figures, granted, but mapping the data on a rolling annual basis showed a rise in net immigration for the first time in two years. </div>
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<img src="/images/2016/04/8/A3.jpg" alt=""><br><br><div>The share of settlers from Asia over the year to February continued to increase to its highest ever level at +58.1 per cent, largely at the expense of arrivals from the United Kingdom and New Zealand. </div>
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<img src="/images/2016/04/8/A4.jpg" alt=""><br><div> </div>
<div><strong><span style="text-decoration: underline;">Record short term arrivals help rebalancing</span></strong></div>
<div> </div>
<div>The lower dollar is very slowly but surely helping the rebalancing of the economy, with a record 7.55 million short term arrivals in the year to February.</div>
<div> </div>
<div>Australia is a wealthy nation when measured in per capita terms, yet provided the dollar stays low enough for long enough evenutally there could even come a time when short term arrivals match the number of our own overseas trips, as more Aussies opt to holiday at home, thereby boosting the economy. In the words of British Rail, "we're getting there".</div>
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<div class="post-body entry-content"> </div>
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<div>The annual number of short term arrivals from China, Hong Kong &amp; Taiwan (1.44 million) is poised to eclipse those from New Zealand &amp; Oceania imminently (1.49 million). </div>
<br><div class="separator"><a href="/images/2016/04/8/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/8/A1.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">Education arrivals going vert!</span></strong><br><br><div>With the share of overseas born Aussies now at a 120 year high, more than 2 million persons per annum are venturing Down Under to visit friends and relatives, which in turn reinforces the strength in the number of visitors from Asia. </div>
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<img src="/images/2016/04/8/A6.jpg" alt=""><br><div> </div>
<div>The most significant demographic shift of all has been the near-exponential surge in education arrivals, which bolted to another new record high of 95,100 in February, taking the annual total past half a million for the first time on record. </div>
<div> </div>
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<br><div class="separator">This is extremely significant, as in the years ahead tens of thousands of these international students will become permanent residents, largely in the largest capital cities.</div>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Well, it has certainly been a while coming, but February saw the first rebound in immigration in a couple of years.</div>
<div> </div>
<div>In truth, population growth never really slowed that much in the largest capital cities anyway - still chugging along at a thunderous 80,000 to 90,000 per annum - the slowdown was more of a resources and a regional thing. </div>
<div> </div>
<div>In any case from observing the ABS data and from mapping out official government forecasts it looks as though population growth probably bottomed out at around 310,000 per annum, and is set to increase to about 340,000 in 2016, and to beyond 400,000 per annum before the end of the decade.</div>
<div> </div>
<div>Perhaps just as relevantly, it is important to note that the population growth is becoming increasingly centralised and focussed on a handful of capital cities, a trend which will only accelerate thanks to Asian and international student migration. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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Population growth to rebound in 2016: Pete Wargent

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<p>I’m not sure if you are into New Age stuff, but in my experience it works. I’ve read a few books and I think most of us has seen the movie “The Secret” a few years ago which really bought it all into the mainstream.</p>
<p>The Law of Attraction is a belief based on the concept that ‘like attracts like’ and that focussing on positive thoughts you will attract positive outcomes. Negative thoughts will do the same, attract negative outcomes. </p>
<p>Whilst property developing is mostly all about numbers, if you don’t have the right mindset then you may find it hard to succeed. This goes for most things in life really.</p>
<p>I’ll tell you a little story. It’s been about 15 years since I started my business. Looking back, it was pretty crazy times. Not only did I transition from a career in marketing cosmetics to developing property, I also educated myself financially and bought a hand full of investment properties and had my first son all in the space of about a year.</p>
<p>I’ll always remember when I started Property Bloom as it was the year I also started a family. After discovering I was pregnant, I suddenly decided that we (my then husband and I) needed to build up our wealth in preparation for our retirements, still a way away but this must have been how my “nesting instinct” played out. When you are pregnant the increase in adrenaline in your system, alongside hormones and emotions makes mother’s-to-be very productive.</p>
<p>Rather than buying baby things, I started buying properties. Instead of cleaning out the cupboards, I sat in lecture theatres being inspired by all the strategies you can use to build wealth through property.</p>
<p>In the process of setting up our portfolio of investment properties, I realised just how much I loved property. I wanted to create a business where I could still do what I loved and have the flexibility to look after my little baby. After developing property for myself, a couple of friends asked me to project manager theirs and so that’s how Property Bloom came about. My little baby is turning 15 soon and so much has happened in this time.</p>
<p>The biggest, most challenging change for me came just two years ago when I became a single mum. Unfortunately, things didn’t work out for my marriage and after 19 years it was the biggest decision of my life to leave it. I had to weigh up many things and the most important being the kids. I have two beautiful sons and they are my priority. With the help of some good counselling and support of my awesome girlfriends, I made it through. The scariest thing was not fully knowing how I would manage financially.</p>
<p>But I needn’t have worried as during the last few years, I worked out how we can create and attract what we want. It’s all about having the right energy or mindset.</p>
<p>I was so unhappy I didn’t realise how much this sadness impacted on my daily life. I used exercise and keeping busy to cope but at the end of the day, I was finding it hard to keep a positive mindset. Then two massive life changing things happened. My elderly father died and then suddenly my younger mother-in-law died in the space of just a few months. These were the first deaths in my family and the harsh perspective they gave me was so powerful it literally kicked me into action.  Life was too short and I knew I had to make a massive change.</p>
<p>When I became happy after making that enormous and very tough decision, it was like the entire universe was on my side. My business was already doing well, possibly as I used it to focus on to get me through the tough times. But as a feeling of peace flowed through me, everything became brighter and it was easy to be positive.</p>
<p>I cherished the time I had with my boys and also the newly found time I had to myself when they were with their father. I’d never had much time to myself. Building a business and raising a family is time consuming and hard work. I used this precious time to recharge my energy levels, rebuild my self-esteem and focus on what I wanted.</p>
<p>In the meantime, my property development project management business that I love so much, was gaining momentum. Lots of clients were coming back to do a second and third project with us and new clients were attracted to the high level of service our boutique business offers. This meant I had no reason to feel financially worried despite taking out a massive mortgage on the family home so the kids and I could still stay there. Thank goodness for low interest rates!</p>
<p>After a while, I started thinking that the only thing missing was a partner to share my happy life with.</p>
<p>This is the fun bit. One New Year’s Eve, over a few glasses of champagne with my girlfriends, I wrote out a list of things I wanted in a new partner. This is much like writing out a list of goals. When you write them down, they become real and the more you go back and review them, the more energy and focus you are putting on them.</p>
<p>Almost a year to the day of writing that list, I met an amazing man. As we got to know each other, I was blown away that he was literally everything on my list, and more – no mean feat considering it was two pages long!</p>
<p>I’m ecstatically happy and very grateful, its amazing how awesome life is.</p>
<p>So how is your mindset right now? Make it positive and not negative, as remember like attracts like. Are there any changes (hopefully not as dramatic as mine) that you can make that will help you achieve your goals and have you written them down yet?  If something cannot be changed, you can still change your attitude about it. Get started on attracting what you want, perhaps it’s to get started on that development project you’ve always wanted to do.</p>
<p>Your mind is the most powerful tool you’ll ever need on a development site. </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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What’s the most important tool needed to develop property? Jo Chivers 

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<p>Next year could be the time for the quiet cities to shine.</p>
<p>While Sydney/Melbourne have been rising, and Perth/Darwin falling, the other four capital cities have been apparently dormant in the middle of the pack. </p>
<p>But sales activity patterns, taken with other indicators, suggest we can expect better things from Brisbane, Adelaide, Canberra and Hobart in 2016. </p>
<p>The Canberra market appears poised for recovery, the Tasmanian economy is improving and the Hobart market is producing increasingly positive statistics, while both Brisbane and Adelaide have sales momentum in specific precincts, which are likely to deliver growth in the New Year.<span style="line-height: 1.3em;"> </span></p>
<p>There is considerable movement in Brisbane markets. Within the Greater Brisbane area, the pecking order keeps changing and new markets keep emerging while others subside.</p>
<p>A year ago Brisbane North was strong, with many suburbs delivering double-digit price growth, but now the momentum is very much south of the CBD. </p>
<p>Logan City is the leading precinct with large numbers of growth markets, while the Brisbane South market has stepped up in the second half of 2015 and remains strong going into the New Year.</p>
<p>Logan City has 18 suburbs with rising sales trends, which is the second best in Australia (behind the resurgent Gold Coast).</p>
<p>The most noticeable gains recently have been made by Ipswich City in the south-west of the metropolitan area. Traditionally, Ipswich City has been the leading capital growth precinct in Brisbane. Now, after several down years, it’s making a comeback and is a market to watch, with a high level of affordability and a strong infrastructure spend.</p>
<p>Adelaide is a rising market, but to date significant price growth has been isolated to select precincts.<span style="line-height: 1.3em;"> </span></p>
<p>Sales activity in the past four quarters has been higher, in each case, than the corresponding period a year earlier. This includes the September 2015 Quarter, which produced the best sales result for this time period for the past four years.</p>
<p>The Adelaide market has been on a generally upward path for the past two years, without ever achieving boom status. The rise in activity has been gradual rather than dramatic – and to date price growth has been moderate – except in specific areas, notably in the middle-market precincts in the western suburbs.<span style="line-height: 1.3em;"> </span></p>
<p>Right now, Adelaide has twice as many growth suburbs as Sydney and looks good for better performance in 2016.</p>
<p>Tasmania keeps sending out signals that its economy is improving and that confidence is rising – and we are seeing glimmers of improved activity in property markets, as well as some solid numbers from Hobart in terms of growth in rents and prices.<span style="line-height: 1.3em;"> </span></p>
<p>Canberra sales activity in the September Quarter confirmed my previous assessment that the market had arrested its earlier decline, after two years of stagnating or decreasing sales in its markets. <span style="line-height: 1.3em;"> </span></p>
<p>There have been improvements in house sales levels, but the unit market remains weak. This is reflected in the latest price growth data from CoreLogic RP Data, which shows a 5.1% annual rise in the House Value Index but a 2.6% annual decrease for units. <span style="line-height: 1.3em;"> </span></p>
<p>In terms of total sales in the ACT, including both houses and units, every quarter this calendar year has recorded higher sales than in the same quarter in 2014. </p>
<p>Typically in Canberra, the December Quarter is the strongest period for house sales – and I expect the current trend of gradually rising sales activity to continue into the December 2015 Quarter.</p>
<p><em> </em></p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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2016 may be the year of the quiet city: Terry Ryder

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<p><span style="line-height: 1.3em;">Last week was the busiest week for auctions for the year with 3,729 capital city auctions held. The final auction clearance rate was 60.1%.</span></p>
<p><a href="/images/2015/12/4/20151206-time-series.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/12/4/20151206-time-series.jpg" alt="" width="679" height="283"></span></p>
<p> </p>
<p><a href="/images/2015/12/4/20151206-clearance-rate-table.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/4/20151206-clearance-rate-table.jpg" alt="" width="757" height="342"></p>
<p><span>Auction volumes this week are set to fall, however the auction markets will still be busy with CoreLogic RP Data currently tracking just over 3,300 auctions across the capitals. Over the 2015 year to date, there has been 7 weeks where over 3,000 auctions have been held across the capital cities. Last week’s final auction clearance rate was recorded at 60.1 %, with 3,388 results reported, showing that over 90 % of all auction results were captured. The capital city clearance rate for Spring was 65.5 %, compared to 68.0 % for Spring 2014.</span></p>
<p><span><strong>Sydney’s</strong> auction clearance rate last week fell to 56.2 % for the 9th consecutive week and show that Sydney’s clearance rate is now much lower than last year at 70.6 cent over the week. Despite the weaker result, there were still pockets in Sydney where the clearance rate maintained strength last week. Across the Eastern Suburbs, 73.7 % of reported results were successful, while Ryde (69.4 %), North Sydney and Hornsby (64.4 %) and Sutherland (63.6 %) each performed well above the city-wide bench mark. This week, Sydney is expecting to host 1,088 auctions, lower than both last week and last year (1,294).</span></p>
<p><span>Across <strong>Melbourne</strong> 1,670 auctions are scheduled this week, compared to 1,876 last week and 1,733 one year ago. Melbourne’s final auction clearance rate for last week was 65.9 %, the highest of any capital city. The best performing Melbourne sub-regions were Inner Melbourne and Outer East Melbourne, both of which recorded a clearance rate above the 70 % mark.</span></p>
<p><span>For <strong>Brisbane</strong>, last week’s clearance rate was 47.3 % and 210 auctions are scheduled for this week.</span></p>
<p><span><strong>Adelaide’s</strong> final auction clearance rate was 58.0 % last week, falling from 64.4 % the previous week. CoreLogic RP Data is currently expecting 137 auctions to be held across the city this week.</span></p>
<p><span>There are 85 <strong>Perth</strong> auctions scheduled this week, which will be the busiest week for the city so far this year. Perth’s clearance rate last week was 36 %, with 50 results reported and a total of 60 auctions held.</span></p>
<p><span>Across <strong>Canberra</strong>, 122 auctions will be held this week, compared to 98 last week and 87 last year. Canberra’s clearance rate was 50.6 % last week, the weakest result for the city since December last year.</span></p>
<p><span>Mount Waverley, Reservoir and Glen Waverley, all in Melbourne will each host 24 auctions this week, the most of any individual suburb nationally.</span></p>
<p><span> </span></p>
<p> </p>
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Auction volumes this week are set to fall: CoreLogic RP Data's Shana Miller

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<p><span style="line-height: 1.3em;">According to CoreLogic RP Data research analyst Cameron Kusher, currently private sector housing credit stands at $1.536 trillion; a 7.3% year-on-year increase to January 2016. Mr Kusher said.</span></p>
<p><span style="line-height: 1.3em;"> “Housing credit has done nothing but expand over the period shown (refer adjacent graphs).” </span></p>
<p>Mr Kusher makes note of the fact that historically, credit is expanding at a slow annualised pace. “Of course this is a function of the fact that with low interest rates households are paying back credit faster as well as the value of outstanding credit is so much higher than in the past. Housing credit has been expanding at annual rate of between 7.0% and 7.5% for the past 15 months,” he says. </p>
<p>Click to enlarge</p>
<p><img src="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.24.21%20PM.png" alt=""></p>
<p>Since January 1991, housing credit data has been split between houses and units with investor housing credit typically increasing at a faster pace than owner occupier credit. Over the past year investor housing credit increased by 7.9% which is its slowest annual pace of growth since February 2014; well down on the recent peak rate of growth of 11.0%pa.</p>
<p>Meanwhile, owner occupier credit growth is recorded at 6.9%pa which is its fastest annual rate of growth since October 2010. Between 1991 and 2015, investor housing credit has increased from 16.0% of total housing credit to 35.8%, highlighting how popular housing investment has become since the early 1990’s. </p>
<p>Mr Kusher said, “Late in 2014 the Australian Prudential Regulation Authority (APRA) provided guidelines to lenders that annual investor housing credit should not expand by more than 10%pa. These changes were largely implemented from the middle of last year. Given this it would seem there is some scope for lenders to ease their policies on investment lending and lift the level of lending for investment purposes given credit growth is now well below 10% per annum.” </p>
<p>The latest housing finance data to December 2015 (which tracks the value of new lending) shows that following a large fall over the second half of 2015, investor lending has started to pick-up a little. Meanwhile the value of housing loans to owner occupier has continued to trend higher. </p>
<p>Mr Kusher said, “Given the tentative signs of a pick-up in investor demand in the housing finance data, investor housing credit growth now well below 10%pa and home values still rising, why wouldn’t investor demand ramp back up?” </p>
<p>Mr Kusher cites several reasons why investor demand may not rebound and starts with investors. </p>
<p>“This group is now facing not only higher mortgage rates due to the out of cycle lift in mortgages rates by lenders last year but they are also experiencing an average of 30 basis points higher mortgage rates because they are an investor (due to the higher capital requirements for investment loans implemented by APRA in 2015). Secondly, he notes that the home value growth phase in Sydney and Melbourne is now very mature having run for almost 4 years, perhaps there is some concern as to how much longer it can run.” </p>
<p><a href="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.25.14%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.25.14%20PM.png" alt=""></p>
<p>“Elsewhere value growth is and has been moderate with values falling in Perth and Darwin. With potential concerns of a slowing of value growth, rental yields are virtually at historic lows with rental rates unchanged over the year with each acting as a potential disincentive. Alternatively, investors may still be attracted to housing because total returns are still substantially higher than all other asset classes. </p>
<p>“The Federal Opposition has signalled changes to negative gearing rules and it is unclear as to how investors will react to the policy should Labor be elected. Arguably the proposed changes to negative gearing may bring forward investment purchases due the grandfathering provision included in the Labor policy; but there is also the argument that the uncertainty in taxation policy relating to housing may act as a disincentive to prospective investors. There is still significant mortgage market competition so despite the recent increases in mortgage rates if borrowers are prepared to shop around they can still get extremely competitive home loan rates.” </p>
<p>“We anticipate that from here there may be a bit of a pick-up in investment borrowing largely because mortgage rates remain low and housing returns are much stronger than most other asset classes. Although a pick-up in investment activity is a possibility, it is unlikely that the annual rate of housing credit growth will return to or breach its 10% pa limit,” Mr Kusher said.</p>
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Will investor housing demand pick-up again? Cameron Kusher

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<p><span style="line-height: 1.3em;">A fairly simple development strategy for a first time developer wanting to boost their property portfolio is a dual occupancy project; buying land where you can build two dwellings and subdividing. </span></p>
<p><span style="line-height: 1.3em;"> The dwelling/villas may be attached or freestanding, either way you are basically halving the land cost for each and that is where the value lies.</span></p>
<p>Where Property Bloom develops, there is usually opportunity to create well over $150,000 in equity through a dual occ development, this is created within about twelve months and doesn't take into consideration the capital growth that also may occur during the development period.</p>
<p>The equity position of a project is determined when you take costs of the project away from the end value. However, be aware that you can't access the entire amount of equity created if you are refinancing on completion as the banks will most likely lend you around 80% of the value, leaving some equity in the project.</p>
<p>Timing your development can also boost the equity creation. If you are developing in an area experiencing good capital growth whilst your project is underway then you have timed your development well. Even if the market is flat, you can still manufacture some equity. Equity created is through the development and subdivision process because you are adding value to the land not with one dwelling but with two. By subdividing, you are halving the land cost for each dwelling.<span style="line-height: 1.3em;"> </span></p>
<p>Here’s an example of a dual occupancy project we recently completed:</p>
<p>Land cost: $270,000</p>
<p>Stamp duty: $2,940</p>
<p>($5,000 NSW New Home Grant* applied so the government contributes $5,000 this off sets the stamp duty cost)</p>
<p>Legal fees: $1,500</p>
<p>Build cost, including plans, council fees &amp; charges, subdivision costs, for duplex; three bedroom, two bathroom villas:  $450,000</p>
<p>Total cost:  $724,440</p>
<p>Actual end valuations:  $920,000 or $460,000 per villa</p>
<p>Equity created:  $195,560<span style="line-height: 1.3em;"> </span></p>
<p>Gross Yield 6.7% based on renting each villa at $480 per week. </p>
<p><span style="line-height: 1.3em;">If you are borrowing at around 4% then the project may be cash flow positive for you. This is when the rent and depreciation benefits combined cover the costs of interest, insurance, council, water rates and management fees.</span></p>
<p>There are strong depreciation benefits too, expected depreciation $20,000 Year 1 (using the diminishing method)</p>
<p>* <a href="https://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_nhg1.pdf" target="_blank">click here</a> for more.</p>
<p><span style="line-height: 1.3em;">Want to know how to do it? </span></p>
<p>Of course I'd recommend using an experienced project manager to guide you through but you can have a go yourself - it will depend on the resources or skills you have available; time, experience, knowledge, contacts with a bit of patience thrown in. </p>
<p>The steps involved in a dual occupancy development strategy are:</p>
<ol>
<li>Finance preapproval. It’s important before you start looking at development sites or any property, that you have a preapproval from a lender in place.</li>
<li>Understand the council requirements for dual occupancies in this area. Study the council’s Local Environment Plan (LEP) and Development Control Plan (DCP).  This will let you know the size of land you’ll need for your dual occ and what is permissible.</li>
<li>Conduct due diligence on the area you want to develop in; understand the zoning for dual occupancies. Having correct zoning doesn't always mean you can carry out a dual occ. There may be covenants on the land preventing building more than one dwelling.</li>
<li>Search for land that meets a number of criteria; size – look at the frontage and know what the minimum width is for your dual occ. Look at the depth and size to ensure the land is large enough to meet the DCP including the minimum outdoor private space requirements. Check the aspect, north facing living areas are desirable and will make meeting the BASIX requirements much easier. Make sure there are services to the site; electricity, sewer, gas. Then ensure the land is relatively flat with a slight slope to the street unless there is a drainage easement at the back. </li>
<li>Check the Planning Certificate to see if the land is in a bushfire or flood zone.  You can still develop in these areas but it will add to your build costs. </li>
<li>Have your builder look at the site. This is very important as the builder will look at the land from a different perspective.</li>
<li>Run a feasibility to ensure the project will be viable. Find recent comparable sales references to base your end value estimates on. Talk to agents about the current rental market and what rent could be expected and calculate the projected yield on completion. Most importantly, you need to have a good understanding of the build costs. The build costs will evolve over the design and planning process. Your builder can give you an estimate once a concept plan is available, but as the full Development Application (DA) plans and documentation is available, the builder will then need to run a full tender. Cross check this against your original estimate. If it’s in line, lodge the DA if it’s not, go back to the design and look at areas where you can reduce costs. Once the plans are approved, the builder may update their tender if council asked for any changes. If not, then a final tender will be generated once the engineer’s plans for the Construction Certificate (CC) are available.</li>
<li>When securing the land, request a long settlement period with permission to lodge a DA from the vendor. You can get all the design work and perhaps even have the DA and CC approved before you settle on the land, this will reduce your holding costs.</li>
<li>Once you have the DA &amp; CC approvals, you can then go back to your lender to obtain your unconditional construction loan. As soon as this is in place, construction can commence.</li>
<li>The build phase for a dual occ should be around three to four month, depending on weather. You need to be on site each week to check the builder’s progress and put out any ‘fires’ that may arise as you are under construction. I've heard some stories of build times taking up to twelve months, so make sure you conduct due diligence on your builder before appointing them.</li>
<li>Once the building works are completed, an Occupation Certificate will be issued. You can now have your villas tenanted. Don’t forget to order a depreciation schedule to maximise your tax rebates.</li>
<li>You can now apply for the subdivision certificate and once council issues this, you can register the subdivision (after your lender has signed off on it).  There is no need to register immediately if you are planning to hold and not planning to refinance as you may find costs such as rates may be a little less if the villas are kept on one title.</li>
</ol>
<p>I’ve summarised the process briefly, but it’s actually not that straight forward. You really do need the time to work on this development strategy closely as mistakes can be costly. If you're a first time developer, use an experienced property development project manager. Our clients enjoy the peace of mind that we've found the right location and development site for them and that their project is being managed efficiently, they also benefit from our long term relationship with our builder. All the fine details are reported to them in a written weekly report, so they are learning from the process but still have time for their own career and family. It's an easy option.</p>
<p> </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Boost your portfolio using this development strategy: Jo Chivers

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<p><span style="line-height: 1.3em;">Following recent policy announcements by the Federal Opposition, housing related issues such as affordability have come onto the political agenda. </span></p>
<p><span style="line-height: 1.3em;">Whether Labor’s policies would actually improve housing affordability, especially without supply and infrastructure reforms, remains to be seen. Nevertheless the following piece looks at affordability by analysing median house and unit values into bands across Australia’s suburbs in order to get a deeper look at the cost of housing.</span></p>
<p><span>House values tend to be more expensive in capital cities than in regional areas. This is highlighted by the fact that 51.2% of regional suburbs have a median value of between $200,000 and $400,000 compared to 15.4% of capital city suburbs. </span></p>
<p><span>Similarly just 0.6% of capital city suburbs have a median house value of less than $200,000 compared to 13.1% of regional suburbs. There is no value band that shows a clear majority across the combined capital cities however, the 33.1% of suburbs with a median value of between $400,000 and $600,000 is the band with the greatest share of suburbs.</span></p>
<div>
<h3>Suburb median house value bands, capital cities vs. regional areas, Dec-15</h3>
<p><a href="/images/2016/03/4/2016-02-29--image1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/4/2016-02-29--image1.jpg" alt=""></p>
<p>Across the unit markets, the greatest share of suburbs both across the capital cities and in regional areas have a median value between $200,000 and $400,000. There is a large difference between the two in that 71.4% of regional suburbs have a median unit value of between $200,000 and $400,000 compared to 41.2% of suburbs in the capital cities. Again when we look at the most affordable suburbs there is a large difference, just 1.7% of capital city suburbs have a median unit value of less than $200,000 compared to 13.3% across regional Australia. </p>
<h3>Suburb median unit value bands, capital cities vs. regional areas, Dec-15</h3>
<p><a href="/images/2016/03/4/2016-02-29--image2.jpg" target="_blank"> Click to enlarge</a></p>
<p><img src="/images/2016/03/4/2016-02-29--image2.jpg" alt=""></p>
<p>Focusing solely on the data across the capital cities really highlights just how expensive Sydney is relative to other cities.</p>
<p>For houses, 25.3% of Sydney suburbs have a median value of between $1 million and $1.5 million making it the largest single value band for the city. Across the other capital cities the value band with the greatest proportion of suburb median values is $400,000 to $600,000 with the only other exceptions Hobart ($200,000 to $400,000) and Darwin ($600,000 to $800,000).</p>
<p>Sydney, Melbourne and Darwin have no suburbs with a median house value of less than $200,000. In Sydney, 47.8% of suburbs have a median house value of more than $1 million compared to 20.5% in Melbourne, 2.6% in Brisbane, 3.8% in Adelaide and 12.9% in Perth.</p>
<h3>Suburb median house value bands across capital cities, Dec-15</h3>
<p><a href="/images/2016/03/4/2016-02-29--image3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/4/2016-02-29--image3.jpg" alt=""></p>
<p>It is a similar story for capital city unit markets with 33.1% of Sydney suburbs having a median unit value of between $600,000 and $800,000 making it the largest band for the city. In most other capitals, the highest proportion of suburbs have a median unit value of between $200,000 and $400,000 with the exception of Melbourne and Perth (both $400,000 to $600,000).</p>
<p>As with house values, no suburbs in Sydney, Melbourne and Darwin have a median unit value of less than $200,000. 8.8% of Sydney suburbs have a median unit value of more than $1 million compared to 0.3% in Melbourne, 0.4% in Brisbane, 0.0% in Adelaide and 0.9% in Perth.</p>
<h3>Suburb median unit value bands across capital cities, Dec-15</h3>
<p><a href="/images/2016/03/4/2016-02-29-image4.jpg" target="_blank">Click to enlarge </a></p>
<p><img src="/images/2016/03/4/2016-02-29-image4.jpg" alt=""></p>
<p>The data shows that particularly in our larger capital cities there is a critical undersupply of affordable housing options (even in the unit market). As a result an increasing number of residents are being locked out of home ownership or are being forced to purchase outside of the cities. Remember that although job prospects are generally better in the larger capital cities the difference in average wages across the capital cities is nowhere near as large as the differences in home values.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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Limited capital city housing options under $200,000: CoreLogic RP Data's Cameron Kusher

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<h3 class="post-title entry-title">GUEST OBSERVER</h3>
<div class="post-header"> </div>
<div id="post-body-5220327253665162227" class="post-body entry-content">
<div>
<strong><span style="text-decoration: underline;">Headline immigration slows</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
</div>
<div>The January <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3401.0Main+Features1Jan%202016?OpenDocument" target="_blank">Overseas Arrivals &amp; Departures</a> figures revealed that permanent immigration into Australia continued to slow into the beginning of 2016, with a net +268,400 permanent and long term arrivals now tracking more than a third below the peak.</div>
<div> </div>
<div>There were some 13,610 permanent departures in January, the highest on record, although ABS research shows that most "permanent" departures actually return to our shores within a year.</div>
<div> </div>
<div class="separator"><img src="https://3.bp.blogspot.com/-Nllm0CzUbOg/VtzVN9aLYzI/AAAAAAAAbsQ/j5EQ-HSsAYY/s640/ARR1.jpg" width="640" height="350"></div>
<br><div>The composition of immigrants continues to shift away from New Zealanders and Britons, and towards permanent settlers of Asian origin, now accounting for a record 57.7 per cent share over the past 12 months.</div>
<br><img src="https://4.bp.blogspot.com/-1w0a3JXsOt8/VtzVO6qsuFI/AAAAAAAAbsk/Ua4W6MM6LoA/s640/ARR6.jpg" width="640" height="350"><br><br><strong><span style="text-decoration: underline;">Record high 7.5 million arrivals</span></strong><br><br><div>Despite the soft headline figures those hoping for a significant decline in Australian population growth are likely to be disappointed, with the wider picture being that population growth will probably only slow from extremely strong to strong.<br><br>Indeed, after accounting for the rapid growth in student visas, total population growth in Australia is probably already rising again. </div>
<div> </div>
<div>In the year to January the number of short term arrivals blazed past 7.5 million for the first time in recording another strong +8.6 per cent rolling annual increase.</div>
<div> </div>
<div>The number of short term departures is still creeping up, but a much more sedate pace, implying an exchange rate driven rebalancing. </div>
<br><img src="https://2.bp.blogspot.com/-XRjxdNt05RE/VtzVN3S-ucI/AAAAAAAAbsY/SUn_byjPb0I/s640/ARR3.jpg" width="640" height="338"><br><div> </div>
<div>There was a huge increase in the number of holiday makers to Australia in the year to January of +442,000 taking the annualised total up to a fresh high of 3.57 million, while an additional +119,400 folk came to visit friends &amp; family, taking the total for this category up to a record 2.04 million. </div>
<br><img src="https://1.bp.blogspot.com/-bqgko3XUhEE/VtzVOrpQBMI/AAAAAAAAbsg/QSKZ6hUP6Gg/s640/ARR5.jpg" width="640" height="348"><br><div> </div>
<div>The key reason that population growth is unlikely to slow is the vast projected boom in international students. </div>
<div> </div>
<div>There were some 55,000 education arrivals in January, by a huge margin the biggest January on record, and it seems to be a nailed on certainty that 2016 will be the greatest ever year for the enrolment of international students. </div>
<div> </div>
<div>More relaxed visa rules mean that many thousands of these students will end up becoming permanent residents in time. </div>
<br><div class="separator"><img src="https://4.bp.blogspot.com/-MwGAtOVgnCU/VtzVN5KEkSI/AAAAAAAAbsU/BU61yN7ijtA/s640/ARR2.jpg" width="640" height="346"></div>
<div> </div>
<div class="separator">Last, but certainly not least, the explosion in visitors from China has virtually torn the roof off, with an astonishing +57.3 per cent increase from January 2015.</div>
<div> </div>
<div class="separator"><img src="https://3.bp.blogspot.com/-3RkQcEPt8YA/VtzVOttl-yI/AAAAAAAAbsc/JQFSsT-UH4w/s640/ARR4.jpg" width="640" height="348"></div>
<br><div>Naturally the most popular month in the calendar year for Chinese visitors will be February, due to the lunar year. The raw original data show that Chinese visitors in that month have ramped up at an astonishing pace:</div>
<div> </div>
<div><strong>Feb 2012 - 66,500</strong></div>
<div><strong>Feb 2013 - 110,400</strong></div>
<div><strong>Feb 2014 - 104,400 </strong></div>
<div><strong>Feb 2015 - 164,400</strong></div>
<div> </div>
<div>It seems likely that Febuary 2016 was another record-breaker, but we'll have to wait another month for the official confirmation of that. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>The full suite of figures appear to tie with DIBP forecasts of population growth bottoming out at somewhere close to 300,000 per annum, before increasing strongly over the remainder of the decade.<br><br>It is important to note that most of the population slowdown has been in mining and resources regions - the largest capital cities have barely experienced any slowing at all to date.<br><br>Evidently the composition of immigration moving forward will be very different, with Asia being the key driver of population and tourism growth.<br><br>---<br><br>Chinese iron ore, coke and rebar futures have all hit limit up during today's trade, while crude might even get back to $40.<br><br>Nice to see. A few mining stocks are going ballistic. </div>
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