<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

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<p>In the Clarence Valley there are opportunities for first home buyers to purchase a property that is ripe for renovation, according to HTW’s <em>Month in Review: March 2017</em>. </p>
<p>The valuation firm says there is a range of townhouses available below $400,000 in Yamba and in Maclean, where less than 30% of recent recorded sales were over $400,000.</p>
<p>“Residential development in Townsend is creating an appealing product marketed to first home buyers,” it says.</p>
<p>“This locality has both vacant land and house and land packages available for less than $500,000.”</p>
<p>HTW suggests these areas for home buyers:</p>
<p>• Townsend – Suited to first home buyers that are interested in a brand new product. Townsend creates a perfect environment for vacant land as well as land and housing packages - that are available for less than $500,000.</p>
<p>• Maclean – Suited to first home buyers in the market for perhaps an older product, holding the potential/opportunity for renovation</p>
<p>• Yamba – Suited to first home buyers that are in the market specifically for townhouses/ units. This area provides the most opportunity/widest range of different units for sale.</p>
<p>“Often a premium is paid for brand new product and this may not always be recouped at the time of the next sale if the market has not continued to benefit from capital gains,” HTW says.</p>
<p>“However, there are no overwhelming dangers for these buyers given current market conditions.</p>
<p>“The biggest mistakes that you see first time buyers making in this area is that it is possible that they may overcommit or forget the illiquid nature of property as an asset.”</p>
<p>A three bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-maclean-124709222" target="_blank">57 Woodford Street</a>, Maclean (above) has been listed for $315,000.</p>
<p>Similarly a two bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-townsend-124631734" target="_blank">32 Jubilee Street</a>, Townsend (below) has been listed for $227,500.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/09/32%20Jubilee%20Street.jpg" alt=""></p>
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jonathanchancellor-7SQnKwU6yx

Townsend, Yamba and Maclean affordable options for first time buyers: HTW

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<p>A wide gap exists between media-generated perceptions about real estate issues and the reality revealed by research.</p>
<p>Examples abound. Media serves a regular diet of “affordability crisis” stories while the major affordability indexes published quarterly tell a quite different story. The annual survey by Property Investment Professionals of Australia, in which most of the major findings contradict common perceptions, provides another case in point.</p>
<p>The latest Adelaide Bank/REIA Housing Affordability Report finds that affordability (the national average situation) has improved to the best levels in seven years. Continuing reductions to interest rates and (small) increases to incomes have improved home-buyers’ capacity to repay their mortgages, while the overall rate of price growth has diminished.</p>
<p>The proportion of the median family income needed to repay an average loan in the June Quarter was 29.4 percent – down 0.6 percentage points from the March Quarter, and the lowest level since June 2009.</p>
<p>Those figures tell a very different story to the general theme of daily media coverage, which portrays a crisis, the death of the Great Australian Dream and a generation doomed to a lifetime of renting.</p>
<p>The proportion of family income needed to meet loan repayments improved in all state and territories in the past 12 months. NSW remains the most expensive place to service a home loan (35.4 percent of family income) while the ACT is the cheapest (19.4 percent of income).</p>
<p>The report makes a pertinent observation about the level of activity by first-time buyers. Most media reports bemoan the apparent low numbers of first-home buyers, based on highly-misleading loan statistics. The Adelaide Bank report points out that while first-home buyers are 14.3 percent of the owner-occupier market, if you exclude re-financing loans they make up 22.5 percent of the owner-occupier market </p>
<p>And there’s another component to first-time buyer activity not discussed here – the number of first-time buyers who buy an investment property as a first purchase. </p>
<p>The report highlights another point often overlooked by media when discussing the ability of young people to buy homes. The weighted average median house price in the capital cities is $698,000, according to this report, but the average loan size for first-home buyers is $328,000.</p>
<p>This reinforces the view that quoting city medians (especially the very high ones for Sydney) in the context of affordability for first-home buyers is misleading, because first-timers buy at the lower end of the market, as they have always done. First-timers don’t buy mid-range homes, not in Sydney nor anywhere else.</p>
<p>The second annual <em>Property Investor Sentiment Surve</em>y by Property Investment Professionals of Australia (PIPA) shows that 71 percent of respondents think now is a good time to invest in property. This figure is up by five percentage points compared with last year.<br>  <br> While 32 percent of investors say recent changes to lenders’ investment policies have affected their ability to secure finance, 58 percent are nonetheless looking to buy a property in next 6-12 months.<br>  <br> According to the survey, 72 percent of investors are unconcerned about the potential removal of negative gearing and only 2 percent think that negative gearing concessions are a key attraction of real estate investment. This would tend to contradict general media perceptions that investors are piling into real estate, allegedly forcing up prices, because of the tax breaks.</p>
<p>Indeed, the survey shows that almost half of property investors are positively-geared and two-thirds of those who are currently negatively-geared expect they will become positively-geared within five years.</p>
<p>Close to nine out of ten prefer to buy existing properties rather than new, which would suggest the ALP plan to restrict negative gearing to new properties to encourage construction activity would be ineffective (especially given the oversupply of new apartments).</p>
<p>Another myth-buster is the finding that only 13 percent of investors see record low interest rates as the key reason to get into property investment. Most media commentary (usually sourced from economists) would have us believe that the key driver of the mythical “national property boom” has been record low interest rates.<br>  <br> PIPA chair Ben Kingsley says the survey results confirm that property investors remain focused on the long-term benefits of property investment and are not distracted by fleeting media issues like negative gearing, alleged bubbles and looming oversupply in some markets.</p>
<p>As an interesting sidelight from the general theme, investor views on which cities now provide the best investment prospects have the capital cities ranked in this order: Brisbane, Melbourne, Sydney, Adelaide, Perth, Hobart, Canberra and Darwin. Half of the survey respondents voted for Brisbane.</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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terryryder-YECXbqmri2

Quoting city medians for first-home buyers misleading

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<div>
<p>Fairly in line with market forecasts dwelling prices rose by +2.0 percent in the June 2016 quarter according to the ABS with Sydney (+2.8 percent),  Melbourne (+2.7 percent), and Brisbane (+1.1 percent).</p>
<p>Of the smaller capitals, Canberra also showed a solid increase of +2.2 percent. </p>
<p>The ABS indexes run back to September 2003 with the median house price (+98 percent) and attached dwelling price (+93 percent) having increased since that time. </p>
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<div align="justify">This latest move takes the total value of residential dwellings to beyond $6 trillion, an increase of +$1.6 trillion or +36 per cent since June 2012.</div>
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<div align="justify">The market is now accelerating in the third quarter according to Alan Oster, Chief Economist of National Australia Bank (you see what I did there?).</div>
<div align="justify"> </div>
<div align="justify">Auction clearance rates have again approached record highs again in Sydney, and Oster predicts a substantial +4 percent gain in the harbour city for Q3, as well as +3.5 percent for Melbourne. </div>
<div align="justify"> </div>
<div align="justify">Large capital cities lead</div>
<div align="justify"> </div>
<div align="justify">House prices rose by +3.2 percent in Sydney in the June quarter, with attached dwelling prices showing a much steadier trajectory (both up and down) through the course of this cycle in rising by a further +2.0 percent. </div>
<div align="justify"> </div>
<div align="justify">After six months of house price declines Sydney's all dwellings index hit a fresh all-time high, being +83.7 percent higher than in December 2008.</div>
<div align="justify"> </div>
<div align="justify">Brisbane notched up its sixteenth consecutive quarterly gain with prices rising by +1.1 percent.</div>
<div align="justify"> </div>
<div align="justify">Since Q3 2012 prices in Brisbane have recorded a studious recovery to rise by +18 percent, while Adelaide (+13 percent) and Hobart (+13 percent) have followed a similar, if slightly more subdued, trajectory. </div>
<div align="justify"> </div>
<div align="justify">In the resources capitals prices have declined since the beginning of 2015 (click charts to expand).</div>
<div align="justify"> </div>
<div align="justify"><a href="/images/2016/09/23/A3.jpg" target="_blank">Click to enlarge</a></div>
<span style="font-size: xx-small;"><span style="font-size: xx-small;"><span><br><img src="/images/2016/09/23/A3.jpg" alt=""><br></span></span></span>
<div align="justify"> </div>
<div align="justify"><strong><span style="text-decoration: underline;">State versus state</span></strong></div>
<div align="justify"> </div>
<div align="justify">At the state level over the year to June the mean price has continued to rise in New South Wales (+$35,400), Victoria (+$31,100), Queensland (+$10,100), and South Australia (+$16,800). </div>
<div align="justify"> </div>
<div align="justify">On the other hand the median price in Western Australia has retraced by $37,300 with a notable collapse having taken place up in the Pilbara, and there was also a decline in the Northern Territory mean price of $20,500. </div>
<div align="justify"> </div>
<div align="justify"><a href="/images/2016/09/23/A7.jpg" target="_blank">Click to enlarge</a></div>
<div align="justify"> </div>
<div align="justify"><img src="/images/2016/09/23/A7.jpg" alt=""></div>
<div align="justify">The total value of dwelling stock has increased significantly over the past four years in New South Wales (+$819 billion), Victoria ($+453 billion), and Queensland (+$169 billion).</div>
<div align="justify"> </div>
<div align="justify"><a href="/images/2016/09/23/A2.jpg" target="_blank">Click to enlarge</a></div>
<div align="justify"><img src="/images/2016/09/23/A2.jpg" alt=""></div>
<span style="font-size: xx-small;"><span style="font-size: xx-small;"><span><br></span></span></span>
<div><strong><span style="text-decoration: underline;">Supply response</span></strong></div>
<div align="justify"> </div>
<div align="justify">Finally, the total number of residential dwellings increased by +46,900 in Victoria and +40,600 in New South Wales over the 2016 financial year. </div>
<div align="justify"> </div>
<div align="justify">There are now more than 9.7 million dwellings in Australia.</div>
<div align="justify"> </div>
<div align="justify">Over the past four years Victoria (+7.9 percent) has been far more successful at increasing the total size of its dwelling stock than New South Wales (+4.9 percent). </div>
<div align="justify"> </div>
<div align="justify">From a lower base the uplift has been considerably more pronounced in the Northern Territory (+10.4 percent) and the ACT (+10.4 percent).</div>
<div align="justify"> </div>
<div align="justify"><a href="/images/2016/09/23/A6.jpg" target="_blank">Click to enlarge</a></div>
<div align="justify"><img src="/images/2016/09/23/A6.jpg" alt=""></div>
<span style="font-size: xx-small;"><span style="font-size: xx-small;"><span><br></span></span></span>
<div align="justify"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div align="justify"> </div>
<div align="justify">Overall, there were solid price gains in Q2 which generally matched market expectations.</div>
<div align="justify"> </div>
<div align="justify">The ABS figures are retrospective, so market participants will be watching the market closely to see whether recent gains are sustained.</div>
<div align="justify"> </div>
<div align="justify">In the 2015 calendar year in part due to cooling macroprudential regulatory measures the Sydney auction market softened considerably in the lead up to Christmas, before limping over the line. </div>
<div align="justify"> </div>
<div align="justify">There are still a dozen weekends to go yet this year. </div>
<div align="justify"> </div>
<div align="justify">
<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>
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pwargent-M4siyDbqQY

Capital city prices rose in Q2: Pete Wargent

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<p>As expected SQM Research's figures showed vacancy rates declining in August in every capital city, and rents jumping in the big cities. </p>
<p>Hobart's vacancy rate fell to just 0.5 percent, while both Sydney (1.7 percent) and Melbourne tightened (1.9 percent) despite talk of an oversupply.</p>
<p>Asking rents for units were up by +4.5 percent in Melbourne and +4.0 percent over the year to August, suggesting that "landlords are in control of the market" according to SQM. </p>
<p>Vacancy rates also declined in August in Brisbane, Adelaide, Perth, Darwin, and Canberra. </p>
<p><a href="/images/2016/09/23/SQM1.jpg" target="_blank">Click to enlarge</a></p>
<div id="x_post-body-4621751620857808479" class="x_post-body x_entry-content">
<div class="x_separator"><img src="/images/2016/09/23/SQM1.jpg" alt=""></div>
<div> </div>
<div>Smoothing the data on a 4mMA basis shows that Canberra's market has also tightened substantially, with asking rents soaring by +12 percent. </div>
<div> </div>
<div>The smoothed figures show that Darwin is on the mend, but Perth still has a 5 percent vacancy rate to chew through before rents can rise again. </div>
<div> </div>
<div><a href="/images/2016/09/23/SQM2.jpg" target="_blank">Click to enlarge</a></div>
<div> <img src="/images/2016/09/23/SQM2.jpg" alt="">
</div>
<br>According to Louis Christopher of SQM Research:<br><br><div><em>"Sydney is likely to remain a landlords' market, as the city's growing population creates demand for new stock".</em></div>
<div> </div>
<div>Only in one sub-region of Sydney has SQM recorded an increase in advertised vacancies. </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>
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Vacancy rates drop everywhere, big city rents jump

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<div>There are certainly some weird ideas out there about property supply.</div>
<div> </div>
<div>Take the example of Pyrmont, if only because I lived there for many years, and as a property owner in the suburb, it's one of the locations I know pretty well. </div>
<div> </div>
<div>From time to time I've heard it said that suburbs like Pyrmont have "too much supply".</div>
<div> </div>
<div>I guess I can kind of see why you might think that if you'd just landed in Sydney, for with about 13,000 residents jammed in to one tight square kilometre, it's the densest suburb in Australia.</div>
<div> </div>
<div>Thing is, the bit of the suburb where people want to live was developed about 25 years ago now!</div>
<div> </div>
<div>There's been very little of note lately, though. </div>
<div> </div>
<div>From memory that was a little unit development on Pyrmont Bridge Road, and there's been a bit going on at Ultimo. </div>
<div> </div>
<div>Oh, and then there was Lend Lease's 391 apartments in the new 40-storey tower at Darling Square, although they sold out in, what, five hours?</div>
<div> </div>
<div>If you were to fast forward to a decade's time I expect that Wentworth Park and White Bay will be developed with apartments, probably the fish markets too one day, while if Mirvac get their way there will be a commercial/residential tower on top of what is now the Harbourside tourist trap.</div>
<div> </div>
<div>These types of developments can take years to become a reality, though. </div>
<div> </div>
<div>At the end of the day, there isn't an oversupply issue here because more and more people want to live in the area by the year.</div>
<div> </div>
<div>Ultimately there are shedloads of people like me who'd enjoy a lazy 5-minute stroll into the city in the morning instead of driving through miles of petroleum fumes and vehicular logjam. </div>
<div> </div>
<div>After accounting for the inevitable frictional vacancies, vacancy rates in Pyrmont are essentially zero. </div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-xBc8yaCwwn0/WG7AugNs4OI/AAAAAAAAhDw/tWnNA8e6WNEx3TzLnbLqoU-3wbKYLHcVgCLcB/s640/PYMRONT.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<p><a href="https://4.bp.blogspot.com/-xBc8yaCwwn0/WG7AugNs4OI/AAAAAAAAhDw/tWnNA8e6WNEx3TzLnbLqoU-3wbKYLHcVgCLcB/s1600/PYMRONT.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-xBc8yaCwwn0/WG7AugNs4OI/AAAAAAAAhDw/tWnNA8e6WNEx3TzLnbLqoU-3wbKYLHcVgCLcB/s640/PYMRONT.jpg" width="640" height="340"></a></p>
<div>Source: SQM Research</div>
<div> </div>
<div>There will be the new developments over time, but we're more or less always playing catch up with demand. </div>
<div> </div>
<div>You could say the same of, say, Coogee in the beachside eastern suburbs, or Manly to the north. Stacks of demand, not much of note being built. </div>
<div> </div>
<div>Even in inner-city Erskineville, which has seen development aplenty both within the suburb and all around it, vacancy rates are very tight, because it's such a convenient and popular location to live in. Loads of demand.</div>
<p><a href="https://4.bp.blogspot.com/-xyZE02fQnNE/WG7ArXnXA-I/AAAAAAAAhDk/9JLq0Ia5jekQu87qnSXqg03szTeCAM9LACLcB/s640/ERKO.jpg" target="_blank">Click to enlarge</a><br><br><a href="https://4.bp.blogspot.com/-xyZE02fQnNE/WG7ArXnXA-I/AAAAAAAAhDk/9JLq0Ia5jekQu87qnSXqg03szTeCAM9LACLcB/s1600/ERKO.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-xyZE02fQnNE/WG7ArXnXA-I/AAAAAAAAhDk/9JLq0Ia5jekQu87qnSXqg03szTeCAM9LACLcB/s640/ERKO.jpg" width="640" height="342"></a></p>
<div> </div>
<div>Source: SQM Research</div>
<div> </div>
<div>Those are the kind of suburbs I don't mind owning property forever in, through the cyclical peaks and troughs.</div>
<p>Apartment glut<br><br> Now, this is not to say that things aren't a little different elsewhere.</p>
<div>Where exactly? Follow the cranes!</div>
<div> </div>
<div>Wentworth Point is just a mass of new apartments, and without being unkind, I can't imagine what it would be like to live there.</div>
<div> </div>
<div>I guess you'd soon get used to it, though, since as far as I could tell there's only one road in and out (like the Twiglet zone: "Easy to enter, impossible to leave")!</div>
<div> </div>
<div>Vacancy rates are up, up and away...</div>
<div> </div>
<div><a href="https://3.bp.blogspot.com/-Ahyf5FSt0-A/WG7KfKxVcCI/AAAAAAAAhEA/zs6zwtQHABUHOvMA4r_2xAmvBDSm6quigCLcB/s640/Wentowrth%2Bpoint.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><a href="https://3.bp.blogspot.com/-Ahyf5FSt0-A/WG7KfKxVcCI/AAAAAAAAhEA/zs6zwtQHABUHOvMA4r_2xAmvBDSm6quigCLcB/s1600/Wentowrth%2Bpoint.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-Ahyf5FSt0-A/WG7KfKxVcCI/AAAAAAAAhEA/zs6zwtQHABUHOvMA4r_2xAmvBDSm6quigCLcB/s640/Wentowrth%2Bpoint.jpg" width="640" height="350"></a></div>
<div> </div>
<div>
<div>Source: SQM Research</div>
<div> </div>
</div>
<div>In Parramatta, there have been high rise towers going up all over the show throughout the last year, a huge concentration risk of generic, high rise, shoebox apartments. </div>
<div> </div>
<div>With net multi-unit completions rising fast in 2015 and 2016, vacancy rates have already increased to well above 3 per cent, and there's always an inherent risk of understatement in reported vacancy rates at this stage in the construction cycle. </div>
<div> </div>
<div>There were another 3,500 dwellings approved in the last financial year too, and overwhelmingly, they were multi-unit in nature at 2,750. Golly gosh...</div>
<p><a href="https://1.bp.blogspot.com/-TEDIDC6V4OI/WG7AtXKDdgI/AAAAAAAAhDo/chxzk69LiMoioCMQi8YHsNZgVBCO_LCqQCLcB/s640/PARRA.jpg" target="_blank">Click to enlarge</a></p>
<p><br><a href="https://1.bp.blogspot.com/-TEDIDC6V4OI/WG7AtXKDdgI/AAAAAAAAhDo/chxzk69LiMoioCMQi8YHsNZgVBCO_LCqQCLcB/s1600/PARRA.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-TEDIDC6V4OI/WG7AtXKDdgI/AAAAAAAAhDo/chxzk69LiMoioCMQi8YHsNZgVBCO_LCqQCLcB/s640/PARRA.jpg" width="640" height="356"></a><br><br> I also read somewhere this week that Blacktown is about to "boom".</p>
<div>Hmm, well that depends how you define 'boom', I guess! A construction boom, maybe. A boom in traffic congestion?</div>
<div> </div>
<div>That too! I'm somewhat less than convinced about there being a 2017 property boom in the conventional sense, though. </div>
<div> </div>
<div>One thing that you can say in favour of the LGA of Blacktown is that at least there is a level of diversity of development stock between apartments and detached dwellings. </div>
<div> </div>
<div>Even so, with more than 11,700 dwellings approved over the last three years and a huge construction pipeline, it looks likely to me that vacancy rates will only be heading north putting more downward pressure on rates.</div>
<p><a href="https://4.bp.blogspot.com/-TF-oPQjYAWw/WG7AuciggyI/AAAAAAAAhDs/TFT0_qDYPbIDlgfzuRJlH8xW199o2Y31gCLcB/s640/BLACKTOWN.jpg" target="_blank">Click to enlarge</a></p>
<div><a href="https://4.bp.blogspot.com/-TF-oPQjYAWw/WG7AuciggyI/AAAAAAAAhDs/TFT0_qDYPbIDlgfzuRJlH8xW199o2Y31gCLcB/s1600/BLACKTOWN.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-TF-oPQjYAWw/WG7AuciggyI/AAAAAAAAhDs/TFT0_qDYPbIDlgfzuRJlH8xW199o2Y31gCLcB/s640/BLACKTOWN.jpg" width="640" height="340"></a></div>
<div> </div>
<div>There are plenty more suburbs like Parramatta and Blacktown that face a surfeit of new stock as mentioned here previously, including in the Hills District. </div>
<div> </div>
<div>And that's before we even mention the wild exuberance in Western Sydney house prices, with suburb records being smashed by the month in 2016 just as mortgage rates are now beginning to creep back up. </div>
<div> </div>
<div>It'll be very interesting to watch all of this play out in 2017. </div>
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Stock versus flow in inner-Sydney apartments: Pete Wargent

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<div id="post-body-4107984278909140699" class="post-body entry-content">
<div>Retail trade turnover missed expectations in rising by a seasonally adjusted 0.2 percent to $25.66 billion, although this was the first miss in four months and came off the back of a 0.5 percent gain in October. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/11/A1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/11/A1.jpg" alt=""></div>
<br><div>The annual rate of turnover growth has eased back to 3.3 percent, comfortably below the half decade average. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/11/A2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/11/A2.jpg" alt=""></div>
<div><span style="text-decoration: underline;"> </span></div>
<div><strong><span style="text-decoration: underline;">Around the traps</span></strong></div>
<div> </div>
<div>There were decent gains in November in New South Wales and Victoria, but not much to write home about elsewhere. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/11/A3.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/11/A3.jpg" alt=""></div>
<br><div>The Australian Capital Territory has long been the leader in annual retail turnover growth since the opening of the Canberra IKEA, with New South Wales slotting into second spot, but growth has stalled in Western Australia. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/11/A4.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/11/A4.jpg" alt=""></div>
<br><div><strong><span style="text-decoration: underline;">Smashed avo rally over?</span></strong></div>
<br><div>The best performing sector this month was 'threads 'n' treads' - clothing and footwear - and the worst, surprisingly enough, was eating out!</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/11/A5.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/11/A5.jpg" alt=""></div>
<br><div>Still, I wouldn't read too much into one month of figures - the trend figures show a 14.21 per cent share of total retail accounted for by takeaway food and eating out. It's never been higher. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/11/A6.jpg" target="_blank">Click to enlarge</a></div>
<br><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/11/A6.jpg" alt=""><br><br><div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>A somewhat underwhelming result for retail trade this month, though when spending on services are included Commsec estimated that spending was galloping along at its fastest level since the financial crisis. </div>
<div> </div>
</div>
<div class="post-footer"><em><span>PETE WARGENT </span>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></div>
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Retail trade consolidates: Pete Wargent

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<p>Will Rogers probably didn't have Sydney's inner west in mind when he famously said "don't wait to buy land; buy land and wait", but it would have been an apt observation if this has been the case.  </p>
<p>The New South Wales Valuer General reported that total land values had risen yet again by 11.3 percent in the 2016 financial year to $1.5 trillion.</p>
<p>The value of the state's land is up by more than 57 percent in only four financial years.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/17/NSW4.jpg" target="_blank">Click to enlarge</a></p>
<div id="post-body-8533436492725214477" class="post-body entry-content">
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/NSW4.jpg" alt=""></div>
<br><div>Unsurprisingly the gains were driven by residential land values which rose by 11.1 percent to $1.2 trillion.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Inner west land pressures</span></strong></div>
<div> </div>
<div>Caution should always be exercised when interpreting residential land value figures, which were calculated from a sample of more than 38,000 sales in the 2016 financial year. </div>
<div> </div>
<div>This is particularly so at the Local Government Area (LGA) level, where median values can be skewed higher by sites with development potential, particularly at this advanced stage in the cycle.</div>
<div> </div>
<div>As usual the most valuable residential land was the in the leafy LGAs of Mosman to the north ($1.84 million median) and Woollahra to the east ($1.82 million) which remain very much the domain of the wealthy, but most of the serious gains have been seen in the inner west of Sydney.</div>
<div> </div>
<div>No fewer than 16 LGAs now have a median residential land value of more than $1 million, which will result in hefty land tax levies. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/17/NSW1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/NSW1.jpg" alt=""></div>
<br><div>Not everywhere saw large gains in land values, with often only moderate changes in regional and coastal New South Wales, and the Blue Mountains, for example. </div>
<div><span> </span></div>
<div>
<span>There were declines too in mining locations. </span><br><span><br></span><span>Broken Hill and the mining areas of the Hunter (the LGAs of Muswellbrook, Singleton, and the Upper Hunter) recorded drops in land values ranging from around 8 per cent to 15 percent.</span>
</div>
<br><div>On the other hand, the greatest gains in the financial year were seen in Burwood, with land values up by no less than 37.5 per cent, a location which saw the sale of a number of development sites in both the centre of the suburb and along Parramatta Road. </div>
<div> </div>
<div>Over the past four financial years there have been crunching gains in half a dozen or more LGAs located to the west of the Sydney Central Business District.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/01/17/NSW2.jpg" target="_blank">Click to enlarge</a></div>
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<br><div>We live in a nominal world, as the saying goes, and when looking at the greatest dollar value increase in median residential land values, top of the pile was Strathfield which has recorded an astronomical increase of $723,000 since FY2012.</div>
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I can't think of anything pithy to say about these numbers, so I'll leave the last word to Will Rogers:<br><br>"Find out where the people are going and buy the land before they get there."<br><br>Indeed.
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<div class="post-footer">
<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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NSW land values rise again to $1.5 trillion: Pete Wargent

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<div>If it seemed that the big capital city housing markets were strengthening into Christmas then so it was, with a massive 4.9 percent jump in investment loans to a 17-month high of $13.3 billion, up 21.4 percent from a year ago in seasonally adjusted terms. </div>
<div> </div>
<div>It never pays to get too excited about month to month changes, but even with the ABS drilling its trend line through the figures it's clear than investors were resurgent. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/18/HF1.jpg" target="_blank">Click to enlarge</a></p>
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<div>Total housing finance increased by 2.2 percent in the month to a strong $32.7 billion.</div>
<div> </div>
<div>Ex-refinancing, the number of owner-occupier loans picked up in the month, but the real story is the huge flip back to investment loans. </div>
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<p>Average loan sizes are now clearly trending up again, having been knocked back by the first salvo of macroprudential measures to curb investor lending. </p>
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<p> </p>
<div>In the owner-occupier markets, Melbourne and to some extent Queensland are seeing strong mortgage volumes for owner-occupiers. </div>
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<div>The number of first homebuyer loans jumped from 7,302 to 8,281 in November in original terms, but overall it's a tough environment for first homebuyers in Sydney (which in part accounts for why so many are turning to investment property as a first purchase).  </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/18/HF5.jpg" target="_blank">Click to enlarge</a></p>
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<p><br><strong><span style="text-decoration: underline;">The wrap - $1 trillion of home loans</span></strong><br><br></p>
<div>Investment loans increased for the sixth time in seven months, and this one was a big leap, taking the year-on-year increase to above 21 per cent, the highest such percentage increase since the peak of the Sydney boom in Q2 2015. </div>
<div> </div>
<div>In part thanks to net loan reclassifications and some cases of 'switching' of loan purpose, the stock of outstanding investor loans increased by only 3 per cent over the year to November.</div>
<div> </div>
<div>Owner-occupier loans outstanding on the other hand surged by more than 9 per cent to pass $1 trillion.</div>
<div> </div>
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<div>Regardless of the blurred classification of outstanding credit, the key takeaway is that investors were pouring back into the market in late 2016, particularly in Sydney and Melbourne,</div>
<div> </div>
<div>I'll look as those investment loans in more detail and by state. </div>
<div> </div>
<div><em><span>PETE WARGENT </span>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></div>
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APRA shrugged? Investments loans up 21 percent: Pete Wargent

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<div>No data release seems to create quite as much confusion as the building activity figures.</div>
<div> </div>
<div>Construction work in the residential sector is always apparently either booming or crashing, depending on who you believe, or commonly it's both. </div>
<div> </div>
<div>Still, where there is discord may we bring harmony, by breaking it all down into three simple parts, starting with...</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 1 - Commencements ease back</span></strong></div>
<div> </div>
<div>Commencements fell again by 2.8 percent to 55,070 in the September 2016 quarter, following a 7.2 percent decline in the June quarter. </div>
<div> </div>
<div>Dwelling starts fell in most states, even in New South Wales where the appetite for building is strongest, although the 'trend' figures still show NSW arcing higher. </div>
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<div>Following on from sharp falls in unit and apartment approvals, it's no surprise that it was declines in this sector which have led the fall in commencements, particularly in Melbourne.</div>
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<div>This in part represents nervous developers backing away from flooding the apartment markets further, as well as a failure to secure pre-sales in some cases. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 2 - Completions</span></strong></div>
<div class="separator"> </div>
<div>Despite the huge boom in building work done over recent times, completions still hadn't run too high by the end of September, with 51,070 completions in the quarter, split between 27,773 houses and 22,666 units. </div>
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<div class="separator">The main reason for this is simply that it takes considerably longer to build a block of apartments than it does a detached house. </div>
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<div>Despite this, apartment completions are starting to flow through in the most populous states, particularly in New South Wales and Queensland, although Victoria dropped back in the quarter as some developers reportedly moved into a "go slow" mode. </div>
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<p> </p>
<div><strong><span style="text-decoration: underline;">Part 3 - The pipeline</span></strong></div>
<div> </div>
<div>The most important thing to note from this release is that although the appetite for commencing new developments has cooled substantially, there were still more than 221,000 dwellings under construction as at the end of Q3 2016, including more than 150,000 units, townhouses, and apartments. </div>
<div> </div>
<div>Although some small inroads had been made into the apartment construction pipeline, the bulk of multi-unit project completions had yet to hit the market. </div>
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<div>Given the sheer scale of the pipeline, perhaps it shouldn't be a surprise than an unprecedented number of approvals have not yet seen a shovel lifted in anger, with 42,591 approvals sitting in housing market Limboland.</div>
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<div>Of course, there will always be some approvals waiting in this phase, yet 42,500 is just way, way above the historic norm. These are not normal times! </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall, the market does seem to be correcting itself gradually with developers pulling back on new project commencements, and slowing the rate of completions in some cases to allow capital city population growth to play catch up.</div>
<div> </div>
<div>What the figures do show is that the full impact of the high rise boom had barely even begun to take shape by September 2016, so watch out for weakening apartment rents and and prices as 2017 rolls on. </div>
<div> </div>
<div>The value of residential work done in Q3 declined, contributing to an awful negative GDP print for the quarter, and the sector is likely to become a headwind for the economy as the year progresses. </div>
<div> </div>
<div><em><span>PETE WARGENT </span>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></div>
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High rise boom has barely begun so watch out for weakening apartment rents and and prices in 2017: Pete Wargent

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<p>Yes, those two words that keep trending every day on the 24-hour news cycle for 365 days each year – housing affordability.</p>
<p>So why can’t anyone come up with a logical explanation on how to fix this ever-growing Australian curse? Well first, nobody is really drilling down to find the precise definition and what will lead to the likely cure and allow me to tell you that massive new high density construction in the major cities is not going to fix the problem.</p>
<p>Sydney is a prime example although first we need to pin point a year when housing affordability really started to change for the worse and for me that year would be 1990 which is when the Australian economy embarked on its unprecedented 25 years of economic growth.</p>
<p>Yes house prices boomed in 1987 to 1989 which really was Sydney’s last massive housing boom which then was brought crashing down with the recession of the early 1990’s. In the late 1980’s our population was not really going anywhere, for example in Mosman in 1987 Cremorne Girls’ High School closed its doors to then see it acquired by SCEGGS Redlands.</p>
<p>In 1989, Balmoral Beach Infants’ School was closed and mysteriously sold to Queenwood Girls’ School the night before the site was due to go to public tender. Beauty Point Public School, Middle Harbour Primary School, Mosman Primary School and Mosman High School all were facing closure as attendance records were well below the Department of Education acceptable levels for operation requirements.</p>
<p>Today, all these schools are at maximum attendance levels. The closure of schools over this period was happening all over NSW – it was not an isolated event.</p>
<p>Back then property prices in Mosman were ten to fifteen times lower than where they find themselves today. The cash rate was sitting at 17.00 to 17.50 per cent on 23 January 1990 where today it sits at 1.50 per cent.</p>
<p> </p>
<p>The “Baby Boomers” born the decade after World War II (now roughly aged 47 – 65) were all jumping into that family tradition of buying real estate. The problem here is that the strong concentration of the boomers all wanted to live in the Sydney CBD – which remains the same patterns that we see today. The missing link here in this housing affordability discussion is that transport infrastructure was frozen to the extent that 25 years later despite a massive upswing in our population we are still using the same archaic transport infrastructure.</p>
<p>For the past 25 years, our elected politicians have all been caught up in a transport infrastructure brain freeze where sadly today there is no big picture for Sydney, although we could name an abundance of other major cities around the world who have successfully addressed growing populations with transport infrastructure.</p>
<p>This explains exactly why we now have raging property prices today, which certainly would not be the case if we had a transport infrastructure where a 200-kilometre radius around Sydney was inter connected with state of the art fast train services. It really should not be that difficult to pinpoint the problem. Although it is very clear why so many have extreme difficulties when attempting to define housing affordability and what needs to be done to correct these huge problems facing so many Australians.</p>
<p>Exorbitant stamp duties payable on the purchases of properties have played a major role in seeing record low stock levels across Sydney, although there is another part of this mystery puzzle that keeps sailing under our property radars. Look again at the baby boomers who would be Australia’s largest property owners in the home ownership and investment portfolios. They are astute businesspeople who know that they will not get any returns with cash sitting in the bank where we now have the lowest cash rate on record. In recent years, they have been enjoying huge capital gains on their principle place of residence, so they have held – off selling for most obvious reasons.</p>
<p>This in turn has significantly impacted the supply side of the equation where such collaborative actions have driven prices higher, and in all probability this will continue in 2017. Although having said that all eyes will be on Trump, Brexit and how Europe reacts together with the goings – on in China and Russia. Of course, we can’t ignore this week’s unemployment rate which hit 5.8 per cent being the worst calendar year result since 2013.</p>
<p>It is hard to see the Reserve Bank of Australia lowering the cash rate further from the present 1.50 per cent so it would be fair to suggest that we are at the lowest possible rates.</p>
<p>So, in 2017, I will be closely watching the baby boomers simply because at the first sight of severe head – winds they will be first to cash – up which in turn would see stock levels increase significantly. In the meantime, we just sit back and observe the property market machinations with great interest.</p>
<p>Next week, NSW will appoint its seventh premier in 12 years – what does that tell you? No doubt the allergy to economic reform will remain in isolation.</p>
<p><em>ROBERT SIMEON is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. </em></p>
<p><em>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000.</em></p>
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