Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Joel Robinson

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

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.

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;

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.

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.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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" />

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

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.

<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" />

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.<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" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

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;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

<html><body>
The fledgling recovery in the Gold Coast industrial market is at risk as Gold Coast City Council prepares to end its Construction Kickstart program.
That is the conclusion of a new CBRE ViewPoint, which shows that industrial land sales and new construction projects are already in decline as they anticipate the program ending.
<img src="/images/stories/2013/09/04/yatala_sept_5.png" width="470" height="307" alt="yatala_sept_5">
CBRE Associate Director David Corke describes the report’s findings as ‘’extremely worrying’’ and he urges the council to extend the stimulus program to further bolster the industrial market and encourage new investment.
“While the program has been a great success, we are already seeing a decrease in land sales and design and construct projects across all Gold Coast industrial precincts as the program draws to a close,” Corke says.
“The past five years have been an extremely difficult period for the industrial market and there are tough times ahead.
‘’It would be great to see the Kickstart initiative continuing to maintain the momentum generated and to give Gold Coast businesses the confidence to expand while encouraging interstate businesses to locate in South East Queensland.”
The Kickstart initiative introduced last September aimed to boost industrial development which had been in the doldrums since the onset of the global financial crisis.
Two short term stimulus measures aimed to foster development:
<ul>
<li>
A 100% discount for transport, recreation facilities and storm water infrastructure projects with substantial commencement between October 2012 and the end of April 2013, to be finished by the end of March 2015.
</li>
</ul>
<ul>
<li>
A 50% discount for projects with substantial commencement between March and the end of September this year with completion by the end of March 2015.
</li>
</ul>
The timeframe of the 100% discount was extended by a month after poor weather at the start of this year.
Figures from Gold Coast City Council highlight a significant boost in activity during stage one of the program with 248 development applications approved and 170 projects starting by the deadline.
However, with phase 2 about to end, Corke says there are signs activity is declining, particularly in the Yatala Enterprise Area – the biggest industrial precinct on the Gold Coast.
“While receivers moved in on numerous large Yatala land holdings in the aftermath of the GFC, this market has now turned the corner,” Corke says.
“National and international companies are now moving into the area on a large scale, perceiving real benefit in locating midway between the Brisbane and Surfers Paradise/ Broadbeach CBD’s on the M1 Pacific Highway. However, this pick-up in activity could come under threat at the conclusion of the stimulus program.”
CBRE’s ViewPoint shows that 119 serviced industrial lots were sold in the Yatala Enterprise Area between 2007-2012.
<img height="307" width="470" src="/images/stories/2013/08/yatala_aug_26.png" alt="yatala_aug_26">
More than 50 sales were transacted in 2007, over about 25 hectares, with the average sale price $310 per square metre.
However, activity dropped to just five sales in 2010 and seven sales in 2011 – equating to just 4.2 hectares in total. The average value dropped to a low of $202 per square metres – about 35% below the 2007 peak.
The Construction Kickstart initiative helped drive 11 sales of serviced industrial land in 2012. While this is still modest, Corke says the area of land sold - 9.3 hectares - was the most since 2008. The average price recovered to $260 per square metres – the highest level since 2007.
That momentum continued into this year and CBRE has identified almost 80,000 square metres of likely development completions, including Caterpillar’s 59,000 square metre distribution centre almost ready after receiving a $500,000 fee discount under the Kickstart initiative.
Other projects to benefit include:
<ul>
<li>
Geofrabics completed 8500 square metre facility at 69 Motorway Circuit
</li>
<li>
Tradetools 4000 square metre development under way at 77 Motorway Circuit
</li>
<li>
Marbletrend’s 3700 square metre facility in the Access Business Park, and
</li>
<li>
Uni-Quip Australia with a 1200 square metre facility at 4 Binary Street,
</li>
</ul>
A further 60,000 square metres of new supply has been DA approved for mooted completion by the end of next year.
“The savings generated by Construction Kickstart have proved to be a key factor in the financial viability of many recent projects,” Corke says.
“This has encouraged new businesses into the Gold Coast market and given existing operations the confidence to expand. There would be clear benefits if the program was to be extended and we would urge the Council to reconsider the end-date of phase 2 to help further stimulate the Gold Coast market and encourage new investment into South East Queensland.”
Yatala precinct serviced industrial land sales: 2007-2012
Source: CBRE
The fledgling recovery in the Gold Coast industrial market is at risk as Gold Coast City Council prepares to end its Construction Kickstart program.
That is the conclusion of a new CBRE ViewPoint, which shows that industrial land sales and new construction projects are already in decline as they anticipate the program ending.
CBRE Associate Director David Corke describes the report’s findings as ‘’extremely worrying’’ and he urges the council to extend the stimulus program to further bolster the industrial market and encourage new investment.
“While the program has been a great success, we are already seeing a decrease in land sales and design and construct projects across all Gold Coast industrial precincts as the program draws to a close,” Corke says.
“The past five years have been an extremely difficult period for the industrial market and there are tough times ahead.
‘’It would be great to see the Kickstart initiative continuing to maintain the momentum generated and to give Gold Coast businesses the confidence to expand while encouraging interstate businesses to locate in South East Queensland.”
The Kickstart initiative introduced last September aimed to boost industrial development which had been in the doldrums since the onset of the Global Financial Crisis.
Two short term stimulus measures aimed to foster development:
<ul>
<li>
A 100% discount for transport, recreation facilities and storm water infrastructure projects with substantial commencement between October 2012 and the end of April 2013, to be finished by the end of March 2015.
</li>
</ul>
<ul>
<li>
A 50% discount for projects with substantial commencement between March and the end of September this year with completion by the end of March 2015.
</li>
</ul>
The timeframe of the 100% discount was extended by a month after poor weather at the start of this year.
Figures from Gold Coast City Council highlight a significant boost in activity during stage one of the program with 248 development applications approved and 170 projects starting by the deadline.
However, with phase 2 about to end, Corke says there are signs activity is declining, particularly in the Yatala Enterprise Area – the biggest industrial precinct on the Gold Coast.
“While receivers moved in on numerous large Yatala land holdings in the aftermath of the GFC, this market has now turned the corner,” Corke says.
</body></html>

staylor-63KgDrKwoY

Gold Coast Council’s Construction Kickstart program recovery is at risk 

<html><body>
The Sydney weekend auction market has 404 offerings this weekend - well up on last weekend’s 331 and the 308 auctioned on the same weekend last year.
Excepting holiday weekends, the lowest winter weekend this year was 280 auctions on a Saturday in early July.
The upper north real estate market tops the regions at 73 listings, according to Australian Property Monitors.
The normal Saturday hive of activity, the inner west has 66 auctions followed by Sydney’s south with 36, the west with 34 and the city and east with 33 auctions.
Blacktown in Sydney's west and Balmain in the inner west both have six auctions followed by Ryde, Leichhardt, Marrickville and Bella Vista all with five offerings.
Pre-auction sales continue including landscaper William Dangar's house at Bondi Beach which sold through the GoodyerDonnelley estate agency.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/landscaper-will-dangar-secures-strong-bondi-beach-price-well-ahead-of-the-spring-season/2013080163821">William Dangar, one of Australia’s leading landscape designers, and his wife Julia</a>, were expecting to sell for $1.6 million plus and secured $1.7 million.
Seller activity Sydney rose sharply this July compared to July last year as vendors unsurprisingly decided to take advantage of the strongest winter housing market experienced on record.
Australian Property Monitors data showed a 75.9% July success rate - the highest July ever – and the second-highest ever recorded for any month, apart from April 2002 which was 78.3%, APM senior economist Andrew Wilson noted.
Including mid-week auctions the most popular region for auction listings in Sydney over July was the city and east with 315 followed by the inner west with 270 and the upper north shore with 206, according to APM's Dr Andrew Wilson.
He noted seller activity Sydney rose sharply this July compared to July last year as vendors "unsurprisingly" decided to take advantage of the strongest winter housing market experienced on record.
Sydney July auction listings were up 16.5% over the year to 1577 compared to last July’s 1344 listings.
The biggest rise in listings came from the south, the lower north, the inner west and the northern beaches suburban regions.
The south had an increase over July of last year of 48%, with the lower north up 34%, the inner west 30% and the northern beaches up 25%.
Dr Wilson noted seller activity continues to increase with auction listings up by 32% over the first two weeks of August compared to the same period last year.
</body></html>

jchancellor-FAypfDUnLy

Spring in the step as Sydney winter weekend auction numbers move above 400 offerings

<html><body>
Underutilised Commonwealth government land could make way for thousands of new homes, increasing property supply levels and improving housing affordability, according to a report by urban development peak body Urban Development Institute of Australia.
The report suggests that the Commonwealth government should undertake thorough regular audits of its land assets in order to effectively identify and determine surplus land spaces available for housing development.
“There are numerous examples of redundant or underutilised commonwealth land such as defence sites occupying prime city locations,” said UDIA national president Julie Katz.
“They’re often in older, established areas, and already have good access to transport, employment and community infrastructure such as schools and shops, making them perfect for infill development.
“Development of surplus sites could provide a rapid and cost effective way of bringing much needed new housing to market, improving affordability and supporting jobs in the process,” Katz said.
Currently, there are 16 properties listed on the <a href="https://www.finance.gov.au/property/lands-acquisition/register-surplus-commonwealth-land">Register of Surplus Commonwealth Land</a>. The Department of Finance and Deregulation advises that the register “is not a full list of surplus Commonwealth land holdings”. 
The UDIA has highlighted two sites that could potentially provide an additional 1000 homes in Queensland and 750 homes in South Australia.
The Bulimba Army Barracks at 167 Apollo Road measures around 23 hectares.
The UDIA’s policy officer Liam Foley told Property Observer the site has “the potential for a mixed use retail/residential precinct, which could yield over 1000 dwellings at 50+ dwellings per hectare.”
In addition, the Keswick Army Barracks in Unley measures around 12.5 hectares, with the potential to house 60 dwellings per hectare.
“The city of Unley have done considerable work on this site by preparing a mixed use scheme. They have discussed it with the Commonwealth and it was mooted for release at one stage, but there has been little recent activity,” Foley said.
According to the <a target="_blank" href="/news">latest RP Data report</a>, the median sale price for houses in Bulimba is $880,000, up 3.5% on last year. The average discount required to sell a house is 11%, while private treaty sales average 99 days on market. 
The median asking rent for Bulimba houses is $585 per week, while gross rental yield currently stands at 3.5%. 
The median sale price for units in Bulimba is $565,000, up 4% on last year. The average discount required to sell a unit is 6.7%, while private treaty sales average 122 days on market. 
The median asking rent for Bulimba units is $500 per week, while gross rental yield currently stands at 4.6%. 
According to the <a target="_blank" href="/news">latest RP Data report</a>, the median sale price for units in Keswick is $295,000, up 24.9% on last year. The average discount required to sell a unit is 6.5%, while private treaty sales average 93 days on market. 
The median asking rent for Keswick units is $245 per week, while gross rental yield currently stands at 4.3%.
</body></html>

dleow-BGaNPbHWyK

Surplus Commonwealth Government land should be used for housing: UDIA

<html><body>
The housing market is one of the bright spots in an economy that continues to perform "below trend" the RBA has said in its monthly monetary policy statement.
The economy is now expected to grow by 2.25% this year down 0.5 percentage points on an earlier May forecast. Growth is expected to pick up to 2.5% for the 2013/14 financial year.
The RBA reports a "slightly weaker" global economic outlook than a few months ago "reflecting, among other things, the assessment that growth in China is now unlikely to pick up much, if at all, in coming quarters" and that the Australian economy has performed "below trend over the first half of this year".
In addition, the RBA notes "softer conditions in the labour market", "softer growth in incomes" and "weak growth of consumption over recent months" as the Australian economy transitions away from mining investment to non-mining sectors.
But "in contrast", the RBA said that "conditions in the housing market continue to improve".
"Dwelling prices increased further in recent months and auction clearance rates remain high.
"This has been accompanied by an increase in housing loan approvals in response to low interest rates.
"These factors, along with strong population growth and the relatively low level of dwelling investment for some years now, point to a continued rise in dwelling investment in the period ahead.
"Indeed, residential building approvals, especially for detached housing, increased in the June quarter and it seems likely that this will continue," says the RBA.
</body></html>

lschlesinger-FZcF9M3vE6

Housing market conditions improving: RBA

<html><body>
While it could hardly be called “fast-tracked” the pace of signficant investor visas issued by the Department of Immigration appears to have picked up of late.
The department has now issued 10 so-called “golden ticket” visas which are available to wealthy offshore investors who are able to invest $5 million in compliant schemes including commonwealth and state bonds and managed investment schemes.
A spokesperson could not say where they have been issued but are likely to be in Victoria and NSW given the pattern of visa applications to date.
This is up from just two issued between the November 24 start of the SIV scheme and July this year – one to a Chinese toy manufacturer investing in Victorian state bonds and another to an Asian investor making compliant investments in Queensland.
Despite the issue of eight visas over the last month, the Department of Immigrations has more than 300 applications to assess and it could be months or even years before some are approved.
Between November 24 and June 30, the Department of Immigration has received 544 expressions of interest from offshore investors and has invited 409 investors to submit applications.
Of those invited to apply for the visa, 305 have lodged applications with NSW (138) and Victoria (129) getting the vast bulk of these followed by Queensland (24), WA (16) and three in South Australia.
In June, the Department of Immigration told Property Observer it would take between six to nine months to process applications under a "business as usual" scenario.
Direct property investment is not among the qualifying investments under the program, but indirect property investment is possible with the likes of property fund manager Centuria offering investment in its unlisted property trusts that are now compliant.
In addition, the wealthy individuals who qualify for visas are in the market for expensive prestige real estate in Sydney, Melbourne and Brisbane with reports that some are looking for waterfront homes in the $30 million plus price bracket.
In June Macquarie Bank launched a new investment fund specifically targeted at providing SIV-qualifying investment options.
Others to offer complying investments include financial services group IOOF.
Last month, the Financial Standard reported that fund manager Legg Mason was packaging its four Significant Investment Visa (SIV) complying funds as a ready-made solution for private wealth advice firms.
</body></html>

Significant investor visa numbers finally hit double figures as fund managers ramp up compliant offerings

<html><body>
The decision by the WA state government to increase the first-home owners grant to $10,000 for those who purchase a new home (with only $3,000 for existing homes) from September 15 brings it into line with the other state and territory governments as part of plans to boost the take-up of new homes as the population expands.
From September 1, the ACT government will replace the $7,000 first-home owner grant  with a $12,500 grant for new homes only.
For first-home buyers, these are the grant handouts available in their state and territory markets currently as well as what’s about to change in the coming months:
<div>
<div>
(Click on the state names for links to the relevant state revenue office pages).
<a href="https://www.osr.nsw.gov.au/benefits/first_home/" rel="nofollow" target="_blank">NSW</a>
The NSW state government offers a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000 up until January 2016.
<a href="https://www.sro.vic.gov.au/sro/sronav.nsf/alltitle/First%20Home%20Owners?open" rel="nofollow" target="_blank">Victoria</a>
The Victorian government offers a $10,000 grant to build or purchase a new home under $750,000.
<a href="https://www.osr.qld.gov.au/first-home-owner-grant/index.shtml" rel="nofollow" target="_blank">Queensland</a>
The Queensland government offers a $15,000 great start grant for first-home buyers buying or building a new home valued under $750,000.
<a href="https://www.finance.wa.gov.au/cms/content.aspx?id=344" rel="nofollow" target="_blank">Western Australia</a>
The WA government currently offers the $7,000 first-home owner grant for both existing homes and new homes. A cap limits the total value of properties (i.e. total value of home and land) to $750,000 or less, or if the home is located north of the 26th parallel to $1,000,000 or less. From September 15 the firrst-home owners grant will increase to $10,000 for those who purchase a new home with only $3,000 for those who purchase an existing home.
<a href="https://www.revenuesa.sa.gov.au/fhog/index" rel="nofollow" target="_blank">South Australia</a>
The South Australian government offers a FHOG of $15,000 for new homes. For first home buyers buying an existing home there is a First Home Owner Grant (FHOG) of $5,000, which expires on June 30 2014.
<a href="https://www.revenue.act.gov.au/home_buyer_assistance" rel="nofollow" target="_blank">ACT</a>
The ACT government offers a $7,000 grant to first home buyers buying both existing and new homes capped at the total value of home and land of $750,000 or less. This expires on August 31. From September 1 first-home buyers in the ACT will receive $12,500 if they buy or build a new home or buy one that has been substantially renovated.
<a href="https://www.sro.tas.gov.au/fhog" rel="nofollow" target="_blank">Tasmania</a>
The Tasmanian government currently offers a one-off FHOG payment of up to $7,000. The grant is not means tested and there is no cap on the value an eligible home.
There is also a First Home Builder Boost (FHBB), a payment, in addition to the FHOG, of up to $8 000. It is available for eligible applicants, purchasing a newly built home or who are owner-builders between 1 January 2013 and 30 June 2014 and who meet the required time frames for commencement and completion of the house.
Both these grants will end on June 30, 2014.
From July 1 2014, Tasmanian first-home buyers who build or buy a new home (including off-the-plan) will be entitled to a $7,000 FHOG.
<a href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default%20220213.aspx" rel="nofollow" target="_blank">Northern Territory</a>
The Northern Territory offers a first-home owner grant for both new and established homes that remains ongoing.
FHOG is not means tested however, from 1 January 2010 eligibility ceases to apply if the consideration for, or the value of the home is more than the transaction eligibility threshold (see table below). This includes the unencumbered value of the land on which a home is to be built. The amount of the transaction eligibility threshold is determined based on the commencement date of the eligible transaction.
The commencement date of an eligible transaction is:
for a contract to purchase or construct a home, the date when the contract is made; or
for an owner builder, the date the laying of the foundations commenced.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="318">
Commencement date of eligible transaction?
</td>
<td valign="top">
Transaction eligibility threshold?
</td>
</tr>
<tr>
<td valign="top" width="318">
On or after 4 December 2012?
</td>
<td valign="top">
$600 000?
</td>
</tr>
<tr>
<td valign="top" width="318">
From 1 January 2010 - 3 December 2012?
</td>
<td valign="top">
$750 000?
</td>
</tr>
<tr>
<td valign="top" width="318">
Prior to 1 January 2010?
</td>
<td valign="top">
No threshold applied?
</td>
</tr>
</tbody></table>
The amount of the grant increased on 4 December 2012 in relation to eligible transactions that commenced on or after that date. From that date, the amount of the grant also varies depending on the type of transaction and location of the property.
If the commencement date of the eligible transaction is on or after 4 December 2012, the amount of the grant is the lesser of the consideration actually paid for the eligible transaction, or:
a) $12 000 if the home is an established home in the urban area;
b) otherwise - $25 000
If the commencement date of the eligible transaction is before 4 December 2012, the amount of the grant is the lesser of the following:
a) the amount of consideration actually paid for the eligible transaction;
b) $7000
An established home is one that has been previously sold or occupied, and is lawfully fit for occupation.
An urban area means all land located wholly within the boundaries of:
<ul>
<li>the Darwin, Palmerston or Litchfield municipalities;</li>
<li>Wagait Shire;</li>
<li>the Darwin Waterfront Precinct;</li>
<li>the “prescribed area” for the Darwin Rates Act.</li>
<li>any other area prescribed by regulation.</li>
</ul>
Carrots photo courtesy of Rahims/flickr.
<ul></ul>
</div>
</div>
</body></html>

The new house and apartment buyers' guide - state-by-state first-home owner grant availability

<html><body>
Western Australia has followed the example of the other states by incentivising first-home buyers if they choose to buy a new home over an established home.
In the state budget released yesterday, treasurer Troy Buswell announced that from September 15 FHBs that purchase new homes will be eligible for a $10,000 first-home owner grant while those who purchase an existing home will only get $3,000.
This means that first-home buyers wanting to purchase an existing home have just over a month to access the existing $7,000 grant.
At the same time, those FHBs considering buying a new home may delay their purchase until after September 15 to take advantage of the bigger incentive.
NSW, Queensland and South Australia offer a $15,000 grant for FHBs building or buying a new home and Victoria offers $10,000 for those who buy or build a new home.
From September 1 first-home buyers in the ACT will receive $12,500 if they buy or build a new home or buy one that has been substantially renovated.
From July 1 2014 Tasmania will offer the $7,000 first-home owners grant for new home purchases only.
The Northern Territory offers a first-home owner grant for both new and established homes providing $12 000 if the home is an established home in the urban area or $25,000 everywhere else. 
Also as part of WA’s Housing Supply Package - designed to increase the supply of housing in a state, which has the fastest growing population - the state government intends to expand the number of affordable rental properties by committing an additional $47.8million for an extra 1,000 homes under the National Rental Affordability Scheme (NRAS).
It will also aim to streamline residential planning and building approvals processes to ensure the supply of new housing is not held up in red tape.
</body></html>

WA bumps up first-home owner grant to $10,000 for new homes

<html><body>
As Australian housing prices have boomed over the last decade and a half, there has been much discussion over whether a bubble exists in the residential property market.
More recently, <a target="_blank" href="https://www.afr.com/p/national/rba_risks_house_price_bubble_msTaCxp5WxDtcy0xPJz2LM">the concern is</a> the record-low interest rate of 2.5% may cause a housing bubble.
Conspicuously absent in the debate over the housing bubble within the mass media is a clear definition of what constitutes a bubble. This is not only the fault of the media, as a bubble is often vaguely defined within the academic literature, usually on the basis of “irrational exuberance” or “animal spirits” or chasing capital gains, rather than in terms of specific and measurable metrics.
An outside observer may find this difficult to believe, particularly given the history of regular booms and busts in the land and share markets, as recent events in the US, Ireland and Spain have shown. Mainstream economists typically claim bubbles can only be recognised in hindsight, but not identified beforehand.
Without a concrete definition, it is impossible to find something because one does not know what to look for. It is similar to telling a blind person to choose the blue pill instead of the red. Accordingly, how can a reasonable definition of a bubble be determined?
One economist did provide a straightforward definition of an asset bubble: <a target="_blank" href="https://en.wikipedia.org/wiki/Hyman_Minsky">Hyman Minsky</a>. He belonged to the post-Keynesian school of economic thought, a heterodox school with an alternative theory of how financial markets and the banking system interacts with assets, typically shares and real estate.
One of the centrepieces of Minsky’s work is the “Financial Instability Hypothesis” (FIH) which argues financial markets are intrinsically chaotic and inefficient, eventually sowing the seeds of their own destruction. According to the FIH, a bubble is defined on the basis of how an asset class is financed.
This is important, as it allows us to assess whether overvaluation exists within any particular asset class, or in this case, real estate. According to Minsky, the <a target="_blank" href="https://www.levyinstitute.org/pubs/wp74.pdf">state of financing</a> can be described as either hedge, speculative, or Ponzi.
With hedge financing, asset income flows are sufficient to pay down both principal and interest on the debt used to finance the asset purchase, and prices are based upon fundamental or intrinsic value. The second state is speculative finance, where income flows cover only interest repayments but not principal, requiring debt to be continually rolled over from the current time period to the next.
The terminal phase is that of Ponzi finance, as income flows cover neither principal nor interest repayments. This leaves owners completely reliant upon escalating asset values to realise substantial capital gains upon sale to meet the cost of debt and expenses. In the case of real estate, if property investors can’t profit from rental income, then realising capital gains becomes the only avenue.
As investors speculate, the debt used for asset purchases inevitably rises as both the cause and response to price increases, creating a positive feedback loop between prices and debt. Put simply, for the residential property market to meet Minsky’s definition of a bubble, three conditions must be met: increases in real (inflation-adjusted) housing prices and mortgage debt, along with persistent rental income losses.
There is evidence to show all three conditions exist. From the trough in 1996 to the apparent peak in 2010, real housing prices increased nationwide by 123%, the mortgage debt to GDP ratio rose from 35% to 87% over the same period, and from 2001 onwards, aggregate rental income could not cover running expenses and interest repayments on aggregate, let alone principal.
(It’s worth pointing out that Australia’s <a target="_blank" href="https://theconversation.com/its-time-to-abolish-negative-gearing-9879">negative gearing policy</a> amplifies aggregate rental income losses by providing an incentive for investors to run their properties at a loss while expecting capital gains. Investors should not be profiting from capital gains but long-term rental income. While it can be argued negative gearing is an unjustified subsidy (tax expenditure), it should be banned on the basis that it amplifies financial instability through helping to create asset bubbles.)
<figure></figure><figure></figure><figure></figure><figure></figure><a href="https://c479107.ssl.cf2.rackcdn.com/files/28884/area14mp/rnvbfzwt-1375925545.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/28884/width668/rnvbfzwt-1375925545.jpg"></a> <figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><a href="https://c479107.ssl.cf2.rackcdn.com/files/28885/area14mp/b8v6d5z8-1375925545.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/28885/width668/b8v6d5z8-1375925545.jpg"></a> <figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><figure></figure><a href="https://c479107.ssl.cf2.rackcdn.com/files/28886/area14mp/r9t9nmtq-1375925547.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/28886/width668/r9t9nmtq-1375925547.jpg"></a> <figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figcaption></figcaption><figure></figure><figure></figure><figure></figure><figure></figure> 
<hr class="system-pagebreak">
Minsky’s FIH has some predictive power as the data shows all three conditions were met during the late 1980s, as a small residential bubble arose on the back of a colossal commercial real estate bubble. Real housing prices increased by 39% between 1987 and the peak in 1989, before falling 8% by 1991. The mortgage debt to GDP ratio also increased during this period, and aggregate rental income was negative from 1989 to 1992.
There are eight measures of <a href="https://www.macrobusiness.com.au/2013/02/the-history-of-australian-property-values/" target="_blank">property valuation</a> that show a substantial increase since 1996, collectively peaking in 2010. They are: nominal prices to inflation, mortgage debt to GDP ratio, rental income flows, gross yields (or P/E ratio), price to income ratio, Kavanagh-Putland Index (aggregate property sales to GDP ratio), aggregate land values to GDP ratio, and housing stock value to GDP ratio.
There are two primary reasons why definitions of bubbles aren’t used in the mass media and academia. Self-interest is the obvious motivation; Australia’s residential property market has a <a href="https://www.macrobusiness.com.au/2013/05/the-history-of-australian-property-values-part-2/" target="_blank">bubble in prices</a>, creating around $2 trillion in paper (phantom) wealth. This has made the finance, insurance and real estate (FIRE) sector fabulously wealthy, and government at all levels have benefited from rising property taxes.
Mainstream economists don’t like the idea of bubbles because the highly unrealistic theory they teach to promote policies of privatisation, deregulation and liberalisation have resulted in the largest asset bubbles in history, in direct conflict of the allegedly efficient outcomes markets supposedly create. When theory and the real world conflict in economics departments, data are dismissed because it doesn’t fit the models.
The doctrines of conventional economic theory – such as equilibrium, rational expectations and optimising behaviour – <a href="https://www.amazon.com/Debunking-Economics-Revised-Expanded-Dethroned/dp/1848139926/ref=sr_1_1?ie=UTF8&amp;qid=1375873369&amp;sr=8-1&amp;keywords=debunking+economics" target="_blank">are empirically false</a>. Economists’ models of markets are like that of an astronomer who creates an incorrect model of the solar system by excluding the sun and moons. Given the deleterious state of economy theory, it should come as little surprise the economics profession cannot identify colossal asset bubbles right in front of them.
Elite Harvard-MIT-Princeton economists in the US not only missed the obvious dot-com and housing bubbles, but put a significant amount of effort into denying these bubbles existed. On this basis, there is little hope for Australian economists, especially for those who work for government and the FIRE sector.
In the debate over the housing market, it is important for those who have vested and conflicts of interest to avoid using definitions of an asset bubble so as to create confusion regarding this matter. Further, it is difficult to claim the presently low interest rates could risk causing a housing bubble when it is readily apparent one has existed since 2001.
Philip Soos is a research Masters candidate at the School of Management and Marketing, Faculty of Business and Law at <a target="_blank" href="https://www.deakin.edu.au/">Deakin University</a>, and is a researcher for the <a target="_blank" href="https://blog.lvrg.org.au/">Land Values Research Group</a>, Melbourne.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/property-bubble-thats-the-theory-anyway-16814">original article</a>.
 
 
</body></html>

psoos-uR5EGb6SbQ

Australia's phantom property wealth: why the mass media, academia and economists don't get the residential price bubble

<html><body>
What’s the right investment strategy for this stage of the property cycle? Michael Yardney    
Great news for those interested in property investment and another blow for the property bears (yes they’re still out there waiting for the sky to fall) – capital city dwelling values rose a further 1.6 % in July, according to <a href="https://www.rpdata.com/research/housing_values_continue_to_move_higher_in_july">RPData</a>.  
However, despite the fact that residential home values have made a cumulative recovery of 6.5% since the market bottomed out in May last year, this property cycle is likely to be different to the past – one where capital growth is likely to be lower.  
Interestingly, most commentators agree that we are unlikely to see the type of housing boom that sparked a massive rise in personal wealth last decade.  
This has many investors asking: what’s the right investment strategy this time round?
Firstly it’s important to understand property investors make their money in four ways:
<ol>
<li>
Capital growth – the increase in value of their properties
</li>
<li>
Rental returns – which provide cash flow
</li>
<li>
Tax benefits – such as depreciation allowances and negative gearing
</li>
<li>
Forced appreciation – this is where an investor ‘manufactures’ capital growth through renovations or development.
</li>
</ol>
  Of course, strategic investors benefit from a combination of all of these.  
Despite the lower predictions for this property cycle, you can still get capital growth.  
RPData recently reported the following capital growth for our capital cities over the last 12 months:
<ul>
<li>
Perth 8.3%
</li>
<li>
Sydney 6.5%
</li>
<li>
Melbourne 4.3%
</li>
<li>
Hobart 2%
</li>
<li>
Canberra 1.4%
</li>
<li>
Adelaide 1.1%
</li>
<li>
Brisbane 0.8%
</li>
<li>
Darwin -0.9%
</li>
</ul>
 But these figures don’t tell the full story.  
In all states our property markets are very fragmented and there are some pockets that have significantly outperformed and many have underperformed the averages.  
If you dig deeper you’ll find that in most states there is a group of suburbs that exhibited double digit capital growth last year. Within those areas there will be some properties that grow strongly in value while others perform poorly.  
 
<hr class="system-pagebreak">
Where have  the properties that outperform the average been?  
In many cases these were areas going through gentrification; suburbs where a new demographic was moving in spending large amounts of money on renovating or extending their homes.  
You’ll also find stronger capital growth in suburbs where growth in wages outpaces the average, meaning the locals can afford to pay more for their properties.
A positive cash flow property is where the rental income received covers all of the property’s expenses (including interest) leaving money in your pocket each month.  
In general properties with higher capital growth have lower rental returns.  
This means you can’t find cash flow positive properties in the higher growth locations of our capital cities.  
You must look to regional areas or mining towns where buyers require a higher rental yield (cash flow) to make up for the lack of capital growth.  
Buyers with lower loan to value ratios, such as those who put more money in the deal, may also experience positive gearing.  
The problem is that they miss out on the benefit of leverage.  
Which strategy is better – capital growth or positive cash flow?  
There’s no simple answer. Clearly if both strategies exist there is a place for both of them.  
I see more beginner investor going for cash flow positive properties.  
On the other hand I tend to see more successful investors, those who have built a substantial asset base, grow their portfolio through leveraging off the capital growth of their investments.  
Obviously property investment should be part of a wealth creation strategy, not just a purchase in isolation.  
So if you are considering property investment to build an asset base to one day replace the salary from your day job, then I would invest for capital growth every time.  
The few dollars a week your positive cash flow properties might bring in immediately is not really going to make much difference to your lifestyle or your ability to acquire and service other, more desirable properties for your portfolio.  
Interesting, best-selling author Steve McKnight, renowned for writing a book on how he built a very substantial portfolio of positive cash flow properties, explains in his latest book, From 0 to financial freedom- how to do it today, that the strategy of buying cheap cash flow positive properties no longer works today.  
The problem is that you can’t save your way to wealth – especially on the measly after tax positive cash flow you can get in today’s property market.  
And when interest rates increase – as they will again some day - a property that is cash flow positive today may be cash flow negative tomorrow.  
Think about, real wealth is not derived from income.  
It is achieved through long-term capital appreciation and the ability to refinance to buy further properties.  
 
 
<hr class="system-pagebreak">
 
If you seek a short-term fix with cash flow positive properties, you’ll struggle to grow a future cash machine from your property investments.  
But here’s the trick, you can’t turn a cash flow positive property into a high growth property because of its geographical location.  
But you can achieve both high returns (cash flow) and capital growth by renovating or developing high growth properties.  
This will bring you a higher rent and extra depreciation allowances, which convert high growth, relatively low cash flow properties into high growth, strong cash flow properties.  
This means you can get the best of both worlds.  
Of course investing in negatively geared, high growth property means you have to cover the cash flow shortfall each month.  
One way of doing this is to set up the correct loan structure.  
A line of credit or offset account could be used to supplement the rental and to pay the interest on the investment loan and property expenses.  
This buys an investor time.  
The line of credit is often set up to cover the shortfall for three or more years until the property’s value grows sufficiently to refinance the loan out of the extra equity.  
To use this investment strategy, correct asset selection is critical because to make it worthwhile you need the property’s value to increase significantly more than your outstanding loan balance increases.  
This means you need to be investing in high quality assets so that you can maximise the chances of enjoying strong capital growth.  
This strategy is not without risks and the four main one are:
<ol>
<li>
Poor capital growth – that’s why correct asset selection is so important.
</li>
<li>
Interest rate increases – which can be addressed by fixing interest rates on some or all of your debt.
</li>
<li>
Poor rental growth – which highlights the importance of owning properties in continuous strong demand by a wide demographic of tenants.
</li>
<li>
Lack of financial discipline – never use your financial buffers for uses other than covering your property related expenses.
</li>
</ol>
 I can understand why beginner investors would be keen to buy a property with positive cash flow. They tend to be cheaper so it is easier to purchase and support this type of property.  
While they may give you short-term income, these properties will never allow you to accumulate the equity necessary to become truly wealthy.  
And while the rent may seem relatively high initially, it is the ongoing capital growth of your property that will underpin its long-term rental income. This means that if you buy in low capital growth areas, your rents won’t rise as much as rents in high growth areas.  
And over the long-term the value of capital gains other investors will enjoy will blow comparable cashflow returns out of the water.  
Remember, as a property investor your focus should be on safely building your asset base so you can eventually develop the passive income from your assets that will allow you to enjoy the financial freedom you desire.  
Michael Yardney is a director of <a href="https://www.metropole.com.au/" rel="nofollow">Metropole Property Strategists</a>.
 
</body></html>

myardney-DFoGhGbSJX

Finding suburbs with a new demographic: What's the right investment strategy for this property cycle?

<html><body>
This week I’ve been thinking about legacies and what we can do to leave a meaningful one.
Sadly we had another death in our family, with the sudden passing of my beautiful mother-in-law Sue last month and after my dad dying earlier in the year, I’ve been reeling a little.
During the lovely tribute my husband prepared for his mum, I found myself reflecting about really how little time we have (she was only 70) and sometimes when a death is sudden, it jolts you into action.
The questions I asked myself were: “Am I living the best life possible? What do I want to achieve in my life? What will I leave behind for my kids? or what will I be remembered for?”  
This bought me to ask: "What will be my legacy when it’s my time to go?”
A legacy is something that is left behind after a person has passed.
Commonly people think of bequeathing money or property or other things of value.  To me, a legacy is more about sharing what we have learned, not just what we have earned, and bequeathing values over valuables. I think that material wealth is only a small fraction of a legacy.
Until now, I didn’t realise it but I have been working on material legacies.
Coming from a working class family, my parents taught me how to make money from hard work.  I leant you’d be payed a good salary for a good days work.
I wanted to break the earn from working cycle for my family so that our income could come from investments and managing our mone, and from the business. 
I also do not want to rely on the government to dictate my retirement.
My aim was to set my family up for financial freedom and retire with money.
But upon reflection, whilst sitting in Sue’s funeral service, I realised that there is much more to life.
Yes we need money to live and support our families but what is beyond that? 
You can achieve a material or monetary legacy quite easily if you focus on it. Within a space of 10 years I have done that; built a property portfolio and a successful business. It wasn’t easy but I feel really pleased that all the hard work is paying off now.
But more importantly, I realised that the real value is in what I’ve learnt in the last 10 years. 
This may be of use to others and I hope particularly to my kids.  I hope that what they learn from my life will enhance their life.  Maybe they won’t see the same value I do to be financially independent?  I can’t do much about how they perceive life and their wants and needs. All I can do is live my own life to the fullest on my own terms. They’ll take out from it what they need.
Just what is it that I want my sons and step daughter to be mussing over when they are sitting in my funeral service?
I hope my life’s message will be that you can do anything in this wonderful world of ours, just be persistent and focussed and follow your dreams.
So what’s your legacy going to be?
I love this quote:
Go confidently in the direction of your dreams. Live the life you have imagined”
- Henry David Thoreau
Jo Chivers is director of <a style="font-size: 14px;" title="Property Bloom" href="https://www.propertybloom.com.au/" rel="nofollow" target="_blank">Property Bloom</a>, which manages property development. 
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News