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 shine appears to be wearing off the Pilbara region as a property investment hotspot with rents falling around 20% on average over the past year and with rental vacancies rising steadily.
This, however, needs to be put into context.
Rents in Pilbara – principally the towns of Port Hedland and Karratha plus smaller surrounding towns like Dampier, Newman, Tom Price – remain very high by national standards with some landlords still seeking in excess of $3,000 per week for three, four and five bedroom houses.
And investment in the region continues with Leighton Contractors this week awarded a $1.3 billion contract variation to mine the Kings deposit at the Solomon Hub for Andrew Forrest's Fortescue Metals Group, taking the total value of work under the Solomon Hub agreement to $2.8 billion, the largest single contract award in the history of Leighton Contractors.
However, evidence is emerging of a broader correction and the seemingly unthinkable: some Pilbara landlords reducing rents by up to 40% to secure tenants.
These figures (below) prepared by the Real Estate Institute of Western Australia show that the Karratha unit market in particular has been hard hit with rents almost halving in the past two years from $1,600 per week to $850 per week.
In Port Hedland, the rental market appears to have peaked in the June quarter of last year.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td width="123">
Karratha
</td>
<td width="123">
Overall median rent $ p/week
</td>
<td width="123">
Houses only
</td>
<td width="123">
Units, apartments, villas only
</td>
</tr>
<tr>
<td width="123">
June Q 2010
</td>
<td width="123">
1,500
</td>
<td width="123">
1,550
</td>
<td width="123">
1,050
</td>
</tr>
<tr>
<td width="123">
June Q 2011
</td>
<td width="123">
1,600
</td>
<td width="123">
1,650
</td>
<td width="123">
1,600
</td>
</tr>
<tr>
<td width="123">
June Q 2012
</td>
<td width="123">
1,500
</td>
<td width="123">
1,550
</td>
<td width="123">
1,250
</td>
</tr>
<tr>
<td width="123">
Current
</td>
<td width="123">
1,200
</td>
<td width="123">
1,200
</td>
<td width="123">
850
</td>
</tr>
<tr>
<td width="123">
Port Hedland
</td>
<td colspan="3" width="370">
 
</td>
</tr>
<tr>
<td width="123">
June Q 2010
</td>
<td width="123">
1,350
</td>
<td width="123">
1,400
</td>
<td width="123">
1,100
</td>
</tr>
<tr>
<td width="123">
June Q 2011
</td>
<td width="123">
1,500
</td>
<td width="123">
1,600
</td>
<td width="123">
1,425
</td>
</tr>
<tr>
<td width="123">
June Q 2012
</td>
<td width="123">
1,800
</td>
<td width="123">
1,900
</td>
<td width="123">
1,575
</td>
</tr>
<tr>
<td width="123">
Current
</td>
<td width="123">
1,675
</td>
<td width="123">
1,800
</td>
<td width="123">
1,400
</td>
</tr>
</tbody></table>
Source: REIWA
 
<hr class="system-pagebreak">
Property Observer has found a number of examples of properties in Port Hedland where asking rents have been reduced substantially.
Most notable is a 2012-built six bedroom house at <a href="https://www.realestate.com.au/property-house-wa-port+hedland-410520339" target="_blank">79 Dowding Way</a> (pictured below), which, according to RP Data was advertised for rent at $5,500 per week in June last year, and which is now on the market for $2,500 – a 54% reduction – through Shayne Macaulay-Smith of Crawford Realty – South Hedland.
<img alt="pilbarajune25one1" height="337" width="470" src="/images/stories/2013/06/pilbarajune25one1.jpg">
Macaulay-Smith is also seeking tenants for an elevated three-bedroom house at <a href="https://www.realestate.com.au/property-house-wa-port+hedland-410473539" target="_blank">8 Trembath Street</a> (pictured below), “a short stroll from Cemetery Beach” with an advertised weekly rent of $1,500 down from $2,500 per week in May last year (when the listing was held by Jan Ford Real Estate- Port Headland).
<img src="/images/stories/2013/06/pilbarajune25two.jpg" width="470" height="321" alt="pilbarajune25two">
Jane Aspey from Hedland First National - Port Hedland is seeking tenants for a centrally-located three-bedroom house at <a href="https://www.realestate.com.au/property-house-wa-port+hedland-410411143" target="_blank">113 Anderson Street</a> (pictured below) with an asking rent of $1,200.
<img src="/images/stories/2013/06/pilbarajune25three.jpg" width="470" height="304" alt="pilbarajune25three">
This rental provides a good proxy of the recent performance of Port Hedland rental market – the property was first listed for rent at $1,000 per week in 2009, peaking at $1,550 per week in mid-2011 with asking rent reduced to $1,500 per week in November 2012 and now down to $1.200.
 
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This reduction in rents is being driven by greater choice with the REIWA reporting that at the end of February 2013 there were 164 rental listings in Karratha, up 4% on December and up a significant 56% from a year earlier.
In Port Hedland, the REIWA records 144 listings at the end of February. Currently there are 215 properties listed for rent on realestate.com.au, suggesting a rise comparable with Karratha.
On the forum propertyinvesting.com discussions about the Pilbara market focus on a correction and on the monthly rises in properties available for rent.
One participant warns that investors who paid between $600,000 and $800,000 for one-bedroom apartments off the plan, paid “crazy money for them”.
“There were heaps of them…they're now trying to get around $1300 - $1,500 per week. Good luck with that.”
One forum participant, writing from personal experience, attributes the rise in vacancies and the reduction in asking rents to a number of factors including seasonality (the extreme heat from October to February), BHP laying off contracting groups in September and October (partly in response to “spiralling rents) and a large number of new dwellings coming on to the market at the same time.
This writer says it will take another bull run for one-bedroom apartments asking $1,850 per week to be taken up and says investors should "avoid them with a barge pole”.
“I was caught in this perfect storm. I bought a property and the reno wrapped late October 2012 - and it lay empty until January 1 and is on a one year lease. The rent last year would have been $3,800 per week - the rent is now $2,800 per week.”
Another contributor warns that investors “have to be careful to stay away from any off-the-plan properties or transportable homes posing as new builds”.
The writer adds that there is “definitely a lot of trepidation in the market at the moment which makes it a buyers’ market” – she is currently negotiating on a less than 12 month old four-bedroom, two bathroom unit in a new subdivision returning $2,700 per week.
The most recent figures from BIS Shrapnel forecast a 36% reduction in new dwelling commencements over the next 12 months with 984 starts expected compared with 1,531 a year ago.
This slowdown in supply appears welcome given the rise in rental vacancies and fallen rents.
However, according to the REIWA’s Pilbara branch chair, Jan Ford, while there has been a 20% correction in rents, she still expects some properties to top $5,000 per week by 2014.
“We already have a few $3,000 to $4,000 per week houses in top locations. They are rare, large, new, modern, spacious, multi bedrooms and bathrooms, multi-keyed and designed to appeal to mature professional singles who are sharing and prefer the privacy and comfort of a residential house.
“These are not average rents as we don’t have enough of them.
“Average rents have dropped around 20% after rising 30%.
“Houses are always in higher demand than single units but price often dictates what people take,” she says.
Looking ahead Ford suggests investors and developers consider adaptable living by building large houses that can be separated, with dual or multi keyed for several tenancies during construction and single families in the long term.
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Pilbara rental market starts to lose some of its sparkle

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Never one to shy from giving his opinion on the property market, Sunrise presenter and financial journalist David Koch, believes that the property market moves in cycles of between seven to 10 years.
However, within the overall market cycle, each city and even down to the city block can be in its own cycle, which investors need to understand so they buy at the right time.
"Knowing where you are on a property cycle means following a strict process of understanding the macro and micro elements affecting your decision," writes Koch in an advice column for news.com.au.
For example, while the overall housing market is considered to be undergoing a moderate recovery, Kochie believes the Gold Coast is oversupplied with apartments - many of which have been on the market for a long time - meaning <a target="_blank" href="https://www.propertyobserver.com.au/queensland/gold-coast-basket-case-a-good-bet-for-property-bargains-kochie_online/2013061462238">there are bargains</a> to be snapped up by investors.
He suggests astute investors make themselves aware of such things as "local influences" such as new infrastructure in the works or the release of plans for new housing, "property condition" (the extent and cost of any future improvements), "city variances"(local economic and demographic factors) and the overall economic indicators like consumer confidence, interest rates and unemployment, which can all impact on demand for property.
Most importantly, Kochie says investors must understand the four property phases, which he labels as:
Opportunity Phase
This he says is the best time to buy, at the beginning of cycle when the market has bottomed out (not always easy to pick)
<div>Growth Phase</div>
<div></div>
<div>This is the point when investors are most confident and prices start to rise. 
</div>
 <div>Peak Phase: </div>
<div></div>
<div>When the best gains have been achieved, this is the point, says Kochie, when "inexperienced and timid investors pile in".</div>
<div></div>
<div></div>
<div>Correction Phase</div>
<div></div>
<div>This he says is when buyers over extend themselves and banks start to tighten credit, making it harder to get a mortgage or refinance.</div>
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The four property phases you need to know according to David Koch

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I can remember playing junior rugby when a can of Coke after the game cost 10 pence and a packet of chips (or crisps as we say in England) cost even less.
By the time I was at high school in Huddersfield (Yorkshire) the price of a can of Coke was 30 pence, which felt a little unfair, although perhaps not as unfair as living in Huddersfield (ohh, joke).
These days if you go to a service station we can get hammered for several dollars for a small bottle of Coke. In my head, though, 30 pence still feels like a fair price.
And, for a product like Coke, it probably is! The product costs only a few cents per can to produce. What we are paying for is the astronomical advertising and promotions budgets.  
The Money Illusion
In 1928, Irving Fisher wrote an important book called <a href="https://en.wikipedia.org/wiki/Money_illusion" target="_blank">The Money Illusion</a>, which explained how we as humans tend to think in currency in nominal terms rather than real terms.
It’s an illusion, particularly because now in the modern era we have fiat currencies – the currency itself has no intrinsic value, so we should instead think in terms of its purchasing power and how that shifts over time.  
The idea was popularised further by the great John Maynard Keynes.
What are the outcomes?
Sometimes contracts are not indexed for inflation and sometimes, though not always, prices can be ‘sticky’ – they don’t move up smoothly in line with inflation.
Studies have shown that while we want to move heaven and earth as and when we are given a 2% pay cut, yet if we are given a pay rise of 2% when inflation is cruising along at 4% that somehow feels more ‘fair’ to us.  
The Money Illusion in Australia
Is there an illusion happening in Australia today? Well, to some extent, but I think it’s a little more complex than that.
Adam Creighton recently highlighted in Charter magazine (geeky mag for Chartered Accountants) that over three decades, incomes have outstripped price growth across all income groups in Australia.
Since 2003, he notes, the poorest fifth of houses holds are $42 better off and the richest fifth $576. The ‘Money Illusion’ dictates that we instinctively focus on nominal price increases rather than real price movements after accounting for inflation.
That said, the cost of living in Australia is definitely now high and there is some debate as to whether the CPI data released by the <a href="https://abs.gov.au/" target="_blank">ABS</a> represents this fairly.
I’ve recently been looking at getting a short-term let in Sydney’s CBD – and while I probably to some extent am being suckered by the Money Illusion, those prices are not completely illusory! Australian cities are expensive places to be a renter these days.  
Investment markets
It’s popular to talk of “the share market being at a 5 year high” and you sometimes also hear property market commentators say that “shares have returned nothing in 5 years”.
<img src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xao&amp;pi=Index&amp;ct=3&amp;tf=M10&amp;ovs=&amp;si=Code%20not%20supplied&amp;tima1=0&amp;tima2=0&amp;bi=2&amp;bima=0&amp;comt=index&amp;ds=xao&amp;dovs=0&amp;ex=ASX&amp;ex2=ASX&amp;val=1&amp;stmp=20130524095905420" width="400" height="275">
Source: ASX
 
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This is deceptive on two counts.
Firstly, partly due to inflation and partly due to rebalancing you would expect the share market indices to move higher over time.
For this reason it makes more sense when assessing if the market is expensive or cheap (rather than to focus on the headline index figure) to look at other measures such as average PE ratios and prevailing dividend yields.
Secondly, commentators from a non-financial background seem unaware that shares are an income asset. You buy shares for the dividend stream with attached franking credits not purely for the potential capital gain – so to say that “shares have returned nothing” shows a clear misunderstanding of the asset class.  
Australian property
In property, it is commonly said that “prices are at unprecedented highs” or similar. Prices are indeed high but it’s not quite as simple as that here either.
<img alt="Dwelling Prices graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6bl-dwelpri-small.gif?accessed=2013-05-24-09-21-28">
If you look at dwelling prices on a city-by-city basis you can see that all is not equal.
There is no question that Melbourne has been a massive outperformer, although there is more than one ‘market’ within the city as I’ll consider bellow.
Prices in Canberra shot upwards in the period to 2010 and look set for a weaker period as the number of ACT employees in the public sector seems set to fall.
Dwelling prices in Adelaide have been mostly dead in the water for more than four years, and similarly Brisbane has had a weak run since its last strong appreciation some half a decade ago.
Regional prices are going nowhere fast.
In Sydney, while prices are around all-time highs, if you wind the chart back to 2003 you will see that prices have only increased by 25% since that time whereas household incomes have increased by around around 15% more than this during the same time period. So while there is much talk of “unprecedented” prices, in fact, in real terms median prices have fallen over the last decade.  
 
<hr class="system-pagebreak">
So where does the bubble talk come from?
So taking all of the above into account, how can Australia be in a bubble as some claim? Especially given that interest rates have been dumped from 17% to just 2.75% which surely must result in higher household leverage? The problem stems from the fact that so many of us want to live in just a few locations, and particularly in only two cities. And, more than almost any other equivalent country, we want to live in urban locations:
<img alt="Graph 6: Urban Population" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph6-small.gif">
Our lack of population density is absurd when compared to other countries – millions of us are crammed into a few urban areas, and people wonder why prices are driven up…
<img alt="Graph 7: Urban Population Density" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph7-small.gif">
 
<hr class="system-pagebreak">
RBA studies show that the price of greenfield land in cities such as Melbourne, Brisbane and Perth is cheap (see chart below), although construction costs and government levies wrench the median price of detached housing higher. In Melbourne, the cost of greenfield land spiked during the first homebuyers boost and then receded again.
<img alt="Graph 8: Construction Costs" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph8-small.gif">
The city markets are multi-speed, however. In Melbourne some CBD markets have performed very poorly, and as noted, in the fringe suburbs where land value appreciation is weak, prices remain relatively cheap.
However, the price of Melbourne’s established dwellings in the popular suburbs have powered ahead, and until we change our thinking, little else seems likely to change in this regard. We need better transport, planning, approval processes, construction and infrastructure. Simply building more dwellings does not work in a country with a booming population if nobody wants to buy or live in the new builds.  
Sydney
In Sydney, it’s a similar, although slightly different story. Investors have cottoned on to the trend and are flying back into the market, and are focussing heavily on established, medium-density dwellings in the inner and middle ring, as well as terraced houses in certain inner western suburbs.
The cheapest and the fringe suburb sectors of the market and particularly the premium priced dwellings are underperforming, however, and as a result the median dwelling price data for May will show moderate losses.
Investors will doubtless love this because it will likely cause the RBA to keep its hand away from the interest rate trigger for longer. But ask those who actually work in the industry what is happening in the established middle market and you will see a different pattern emerging, which is growth and prices pushing through to all-time highs.
Crashniks and housing bears will no doubt mock this observation – but before you scoff, I’d ask you to point me in the direction of any median- or mid-priced property which has fallen significantly in price in the eastern suburbs, the north shore or in the inner west? It hasn’t happened in any meaningful way and nor does it appear likely to.
Prices in the broad middle market are on the move and with the cash rate being cut yet again in May serviceability is close to its best level in years.
<img alt="Graph 11: Repayments on New Housing Loans" src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph11-small.gif">
<a href="https://www.propertyobserver.com.au/residential/investor-demand-could-spur-10-gain-in-mid-market-sydney-property-prices-in-2013-apms-dr-andrew-wilson-docandrewwilson/2013052361556?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">APM predicts</a> 10% price gains in Sydney’s middle-market for these reasons.
It’s not a bubble yet, but we could well end up with one as appropriate supply lags a booming demand and Australia’s grand plan continues to focus on packing ever more of us into a few popular suburbs. It hasn’t worked to date and I doubt it will in the future.
Pete Wargent holds a range of finance and property qualifications and is the author of <a href="https://petewargent.blogspot.com.au/" rel="nofollow" target="_blank">Get a Financial Grip – a simple plan for financial fr</a><a href="https://petewargent.blogspot.com.au/" rel="nofollow" target="_blank">eedom.</a>
 
 
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No Australian property bubble yet but it's on the cards: Pete Wargent

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With a huge number of investors active in the Australian property market, John McGrath of McGrath Estate Agents has compiled a list of tips on reorganising debt for investing.
Tip 1: Principal and Interest Loans vs Interest-Only Loans A typical scenario for investors is that they will own their own home, with a mortgage, and will plan to use the equity available to fund or partly-fund an investment purchase.  Most owner-occupiers will have a Principal and Interest loan on their home. P &amp; I loans are excellent for owner-occupiers because your equity increases as you pay off the principal. If you’re going to remain living in your home, staying on a P &amp; I loan is a good idea because the interest is not tax-deductible so that’s the debt you want to pay off first with spare cash. However, the interest on the loan for an investment property is tax deductible, so you might like to take out an interest-only loan on your investment property. Because you don’t pay off any of the principal, the regular repayments are less than a P &amp; I loan. Thus, you have more cash in your pocket, which allows you to borrow more and buy more property!  Tip 2: Freeing up cash flow Freeing up additional cash flow is a priority for most investors. One of the things you could do is convert the home loan on your principal place of residence to interest only as well. This would put more money in your pocket, but the downside is you won’t be paying off any of the principal and the interest remains non-tax deductible. But what if you moved out?  Tip 3: Take advantage of tax deductibles If you moved out of your home and rented it out, while renting somewhere cheaper yourself, you could free up a lot of cash flow. If you converted the loan to interest only, you’d have even more cash available and the interest would be 100% tax deductible too. Plus, you could claim all the expenses of the property, such as strata levies, council rates and water rates, as a tax deduction too. But what about capital gains tax, I hear you say?  Tip 4: Use the six year rule to avoid capital gains tax If you rent out your principal place of residence, the Tax Office will allow you to do this for six years with no exposure to capital gains tax (CGT). You receive all the benefits, such as rental income and deductibility of expenses and loan interest, but you won’t have to pay capital gains tax if you sell it within six years. After six years is up, you can move back in and re-qualify for another six years if you move out again. This is a generous opportunity that could save you thousands in capital gains tax if you ever decide to sell the asset. (Click here to read more about the six year rule.) Tip 5: Variable vs Fixed Rate Loans Finally, a word on fixed and variable rates. Fixed rates give you peace of mind but little flexibility. But today’s fixed rates are extremely attractive and well below variable rates, so it might be worth considering locking in below 5% for a couple of years while you’re getting used to having not only a home loan but also an investment loan to manage too.  McGrath advises as each situation may differ, it is best to discuss individual circumstances with financial advisors.
McGrath's tips were published on the financial planning website <a target="_blank" href="https://www.switzer.com.au/the-experts/john-mcgrath-property-expert/re-organising-your-debt-to-invest/">Switzer.</a>
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John McGrath's 5 tips for reorganising your debt to invest

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Australia's big four banks have been ranked the most profitable in the developed world for the third straight year, but all that money hasn’t improved their offerings to small business.
The Swiss-based Bank for International Settlements published figures today showing the pre-tax profits of the big four banks – the Commonwealth Bank, Westpac, ANZ and NAB were equal to 1.18% of their total assets.
This puts Australian banks well ahead of those in the other developed countries on the list such as Canada, the US and Britain, with only lenders in the emerging economies of Brazil, Russia, India and China making better returns.
The Bank for International Settlement’s figures also show Australian banks have lower costs than most of their peers and enjoy wider interest margins – a measure of profitability from lending.
So what are the banks doing with all that profit?
Not lending to small business, that’s for sure.
The big four claim they are eager to lend to SMEs, but <a target="_blank" href="https://www.smartcompany.com.au/financial-services-and-insurance/055527-half-of-small-business-loan-applications-knocked-back">just under half of all credit applications made by small and medium businesses in the past ye</a>ar were not granted.
In fact, the banks have been milking small business, with bank fees for businesses <a target="_blank" href="https://www.smartcompany.com.au/financial-services-and-insurance/056145-rba-banking-data-sparks-anger-among-small-businesses-as-it-reveals-bank-fees-have-soared-in-the-past-three-years">jumping 23.9% over the past three years</a> despite fees for consumers falling.
They also failed to pass on the RBA’s interest rate cuts in full to business.
There’s a distinct lack of competition in Australia’s banking sector which small business is paying the price for.
We need an alternative.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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Australian banks still most profitable in developed world but still turning down many SME loan applications

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Often times when we are presenting our research findings we find there is sometimes confusion about the geographic boundaries we are reporting on.  Take our standard indices reporting for example, which is typically across capital city boundaries.  As a default, whenever we are reporting on capital cities we use the respective capital city statistical division boundary.
It’s easy to understand why there can be some confusion though, as most people aren’t familiar with standardised boundaries that are provided and maintained by the Australian Bureau of Statistics.  Take my home town of Brisbane as a case point.  When people refer to ‘Brisbane’ they could be talking about the suburb of Brisbane, the Brisbane Local Government Area, the Brisbane Statistical Division or more recently the Brisbane Greater Capital City Statistical Area.  As you can see from the map below, the regions are vastly different in their geographic scope and area; property market conditions will be quite different depending on which region is being analysed.
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Brisbane-examples.jpg"><img height="284" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Brisbane-examples-580x350.jpg" alt="Brisbane examples"></a>
The maps below provide a further summary about which council areas and statistical subdivisions are included within each of the capital city statistical division boundaries that we report on.
The Sydney statistical division extends north to the border of Lake Macquarie, south to Wollongong and west to include the Blue Mountains.  The Sydney statistical division contains 43 council regions, the largest number of municipalities of any capital city.
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Sydney-LGA.jpg"><img height="284" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Sydney-LGA-580x350.jpg" alt="Sydney LGA"></a>
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Sydney-SSD.jpg"><img height="283" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Sydney-SSD-580x349.jpg" alt="Sydney SSD"></a>
 
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The Melbourne statistical division extends out to the border of Geelong to the west, to the Bass Coast to the South, West to Baw Baw and north to the Macedon Ranges and Mitchel council regions.  There are 31 council regions across the Melbourne statistical division, the second highest number of capital city municipalities after Sydney.
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Melbourne-LGA.jpg"><img height="280" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Melbourne-LGA-580x345.jpg" alt="Melbourne LGA"></a>
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Melbourne-SSD.jpg"><img height="280" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Melbourne-SSD-580x345.jpg" alt="Melbourne SSD"></a>
The Brisbane statistical division contains just 5 local government area boundaries, all of which are very large compared with most other capital city council areas.  The region is bordered by the Sunshine Coast to the North, Gold Coast to the south and Somerset / Lockyer Valley / Scenic Rim to the west.
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Brisbane-LGA.jpg"><img height="288" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Brisbane-LGA-580x356.jpg" alt="Brisbane LGA"></a>
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Brisbane-SSD.jpg"><img height="284" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Brisbane-SSD-580x351.jpg" alt="Brisbane SSD"></a>  
 
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The Adelaide statistical division is the third smallest of the capital city statistical divisions (after Canberra and Hobart) at just 1,826 square kilometers.  The region includes 18 council areas and is bordered by the Adelaide Hills, Barossa and Mount Barker council regions to the east, Mallala to the north and Yankalilla to the south.
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Adelaide-lga.jpg"><img height="283" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Adelaide-lga-580x349.jpg" alt="Adelaide lga"></a>
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Adelaide-ssd.jpg"><img height="283" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Adelaide-ssd-580x349.jpg" alt="Adelaide ssd"></a>
Perth is home to six out of ten of the smallest local government area boundaries across the capital cities.  The Peppermint Grove council region is just 1.06 square kilometers in area, East Fremantle is 3.1 square kilometers and Cottesloe is 4.4 square kilometers.  The Perth statistical division includes 30 council areas, the third highest number of capital city municipalities.  The borders of Perth statistical division extend north to the Gingin and Chittering Shire Councils, east to the Northam, York and Beverley council regions and south to Mandurah and Murray.
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Perth-lga.jpg"><img height="281" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Perth-lga-580x347.jpg" alt="Perth lga"></a>
<a rel="wp-prettyPhoto[g2162]" href="https://blog.rpdata.com/wp-content/uploads/2013/06/Perth-ssd.jpg"><img height="284" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/06/Perth-ssd-580x351.jpg" alt="Perth ssd"></a>  
Hopefully the maps provide some more context about the regional specification of our reporting.  Capital city boundaries (and regional boundaries for that matter) are broad in geographic scope, and similarly, the housing market statistics across these regions should be considered to be fairly macro in their analysis.  For anyone involved in the industry or who is active in the market, you need to keep in mind that housing markets can perform quite differently at a more granular level (which is why we have plenty of indices available at smaller geographic aggregations including council regions, suburbs, postcodes and even streets).
Note that we are in the process of releasing our flagship hedonic indices suite across the new ASGS boundaries and our capital city reporting will eventually be across the GCCSA (Greater Capital City Statistical Areas).  <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/1270.0.55.001" target="_blank">Check out the ABS geographic pages for more information on the standardised geography we report on</a>.
Tim Lawless is national research director of <a rel="nofollow" href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
 
 
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Navigating geographic boundaries when reporting real estate statistics: Tim Lawless

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The bounce to prestige property markets anticipated from the approval of signficant investor visas (SIV) could take a long time to filter through given very long processing times and a backlog of applications.
The Department of Immigration says that once it has developed the “organisational expertise for the new visa” it will take between six to nine months to process applications under a "business as usual" scenario.
Checks include assessing an applicants source of funds among a range of the usual background checks a spokesperson told Property Observer.
"The time to process each case will be different."
The department has revealed just two visas issued since the scheme was launched in November – one to a Chinese toymaker - with around 222 invitations issued to investors up to early June, 212 of them to Chinese investors.
The visas are available to offshore investors with at least $5 million to invest in approved schemes, which include Commonwealth, State or Territory government bonds, ASIC-regulated managed funds with a mandate for investing in Australia; and direct investment into Australian proprietary companies.
In NSW, applicants must invest a third of the $5 million in state government Waratah bonds, with the state hoping to use the scheme to fund infrastructure and road projects.
Direct property investments do not qualify, but <a target="_blank" href="/news">Dominic Ong, who heads up a new Knight Frank special significant visa team</a> specifically targeting wealthy Chinese investors, told Property Observer last month that he was showing Asian clients around some of the most expensive Sydney waterfront real estate.
The visas qualify the recipient with four-year’s residency without needing to be proficient in English or meet other traditional visa requirements. Following this period they can then apply for permanent residency.
<a target="_blank" href="/news">Property Observer has previously written</a> that the issuing of the first two visas had generated a seemingly disproportionate amount of press coverage with the Department of Immigration seemingly in no hurry to approve applications despite a pipeline of more than 400 applications.
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Significant investor visas to take up to nine months to process

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Australian feels more confident about buying residential property and of its potential to build wealth, the latest QBE LMI Mortgage Barometer report has found.
The survey or more than 1,100 home owners and prospective homebuyers also found a distinct shifting in buying tastes with a higher percentage of first-home buyers, second homebuyers and investors contemplating buying a new house or apartment rather than an existing one.
Thirdly, there also appears to be a shift towards buying units with respondents considering buying detached houses in 2013 than in 2012.
Nearly one in three (32%) of those surveyed believe the next six months is the best time to buy residential property, up from 26% in 2012 while more than half believe the next 12 months is the best time to buy, up from 40% in 2012.
“This sentiment is in line with almost half of respondents (47%) thinking that property prices will increase strongly in the next three years and more than a third believing prices will be at least 10% higher in 2013,” says Jenny Boddington, chief executive officer of QBE LMI.
Other results also point to the belief that property will be a better investment vehicle in the coming years with 17% of those surveyed classifying it as a “reliable blue-chip investment” – up from 16% in 2012; 14% considering it as a way to build wealthy relatively quickly (up from 8% in 2012) and 22% considering it an investment to fund retirement (up from 19%).
In addition, significantly fewer respondents now believe property should only be one part of a diversified portfolio (17% in 2013 versus 29% in 2012) - in other words more Australians believe that the asset class can stand on its own as an investment vehicle.
<img width="470" height="223" src="/images/stories/2013/larry_uploads/perceptions.jpg" alt="perceptions">
“The slow recovery of the share market post-Global Financial Crisis (GFC) has likely had a large part to play in these perceptions, with dwelling values outperforming the ASX 200 Index on capital appreciation over the last decade to 2012, and proving to be far more stable (largest 12-month fall of 5% vs. 40%+ for shares),” notes the report. 
While buying an existing home remains the most popular choice for all buyers, the survey did find a rise in appetite for new homes across first-home buyers, owner occupiers and investors.
 
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In 2013, more than a third of respondents (35%) said they were looking to buy a new house compared with 29% in 2012.
Interest is a new home highest among first-home buyers, which is not surprising given the changes in first-home owner grants in NSW and Queensland, incentivising only new home purchases, with Victoria, the ACT, South Australia and Tasmania all to follow suite in the coming months and years.
Nearly one in two (49%) first-home buyers are considering a new home compared with 34% in 2012.
Among owner-occupiers, more than a third (34%) are considering a new home over an existing one (up from 26% in 2012) and among investors, 32% are considering a new home (up from 27% in 2012).
Perhaps signalling a desire for a more affordable property, but possibly also reflecting the rise in apartment living in capital cities, the survey found a distinct shift towards purchasing units among owner occupiers and investors with demand for generally more expensive detaching housing falling.
Desire for an apartment remains high among first-home buyers at 32%.
<img width="469" height="456" src="/images/stories/2013/larry_uploads/existing_homes.jpg" alt="existing_homes">
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Homeownership sentiment improves as demand for new homes rises: QBE LMI survey

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AMP Capital’s chief economist Shane Oliver <a target="_blank" href="https://www.ampcapital.com.au/tv/Where-to-for-the-Australian-economy">discusses the outlook</a> for the economy as interest rates and the dollar fall.
<iframe src="https://player.vimeo.com/video/68588907" width="470" frameborder="0"></iframe>
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AMP Capital's Shane Oliver explores the outlook for the Australian economy

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There has been plenty of subject matter on our ageing population and it's clear Australia faces challenges ahead.
Allowing for a few fluctuations - since 1907 to present day, the fertility rate has fallen from around four newborns per woman, to 1.88 (a little above the record low of 1.73 in 2001.)  Significantly, this figure is below ‘replacement level’ which is considered to be 2.1 babies per female.
According to the United Nations, life expectancy in Australia is equal fourth in the world – coming in alongside Switzerland for the same recorded period (2005-2010) – and from most recent ABS data, a man and woman can be expected to live well into their eighties with one in five Australians expected to last into their nineties.
It’s worth noting, the proportion of overseas born Australian residents has also added significantly to our age weighted demographic with a median age - as of 2010 - of 44.7 years – a figure attributed to the large number of migrants who inundated Australia’s shores as post-war ‘boat people’ when the last major call went out to ‘populate or perish.’
The number of older Australians aged 85 years and over has doubled over the past 20 years and is expected to increase as a proportion of the population, to 18% in 2036.
Add to this the stark reality that in 2012, 250,000 Australians reached retirement age with an estimated 5000 reaching the age 65 weekly – and it’s clear Australia’s capacity to fund its population’s needs as the number of working aged individuals decreases, is being severely stretched.
In this respect, when you lift the blanket on unemployment data the trends are concerning and certainly not as good as the headline rate suggests.
Full time job growth is weak and both hours worked along with levels of underutilisation are deteriorating.  As the mining construction boom unwinds, non mining industries underperform, and we pull in our belts with fiscal consolidation, it’s likely we’ll see little change over the months ahead. The short term data is volatile and somewhat unreliable albeit, the long term trend is clear.
In 2009-2010 financial year 26% of the government’s budget was directed towards age related services (health, age related pensions, and aged care) – however, according to treasury projections, this figure’s expected to increase substantially over the next 40 years <a target="_blank" href="https://archive.treasury.gov.au/igr/igr2010/report/pdf/IGR_2010.pdf">“pushing the share of spending to almost half.”</a>
<img src="/images/stories/2013/06/cashmorejune24one.png" width="470" height="310" alt="cashmorejune24one">
As a result, each and every policy decision Australia makes in the years ahead will be – or rather should be – influenced by the necessity to fund an ageing demographic.
For those currently reaching retirement, it’s hoped most will be able to provide for their own needs through a combination of superannuation, working past the age of 65, and tapping into their assets – the biggest of which is housing.
Some will downsize, some will look towards various financial products, such as a reverse equity loan for example – but a majority will have the good fortune of doing so in a house free of debt.
There’s no doubt baby boomers worked as hard as any modern first-time buyer to purchase their principal place of residence.  They made significant sacrifices in a high interest rate environment often working, more than one job to achieve the dream of ownership – and in this respect, it’s never been easy.
However, they were lucky enough to get in at the beginning of the lending boom.
 
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Over the years - financial deregulation, the emergence of duel income households, and the very real realities of our ‘golden decade’ of growth – which essentially gave purchasers a ‘get out of jail free’ card, knowing they could sell into a rising market if the going got tough - provided a layer of protection against loss of equity.
The outer suburbs were some 10km outside of established job and commercial hubs, not the 40km+ we see today – and as the population went through various phases of rapid expansion and different financial products were created, the number of buyers increased and mortgage lenders reaped the benefits.
However, the family home was not the only property acquisition from which this demographic drew benefit.  By 2009-2010 the total value of investment housing owned by our baby boomer generation was 57% – a majority no doubt purchased with the tax advantage of negative gearing.
Baby boomers hold roughly half of Australia’s housing stock – a mix of owner-occupied dwellings and investments.  If Australia was to experience any significant downturn in house prices – or demand, it’s the generations heading toward retirement that would suffer most.
Thus far, population growth has somewhat supported the economy – however, due to woeful planning on both the part of state and federal governments, we’ve evolved into a country gripped to its capital cities which play host to the highest accommodation prices in the country.
Furthermore, our environment has changed considerably.  From an atmosphere where a job was for life and family units were formed early, to a set of differing cultural conditions with fairly fluid fluctuation between periods of ownership and tenancy as buyers and renters migrate through various stages of their ‘employment’ career.
As a result, first-home buyers purchase later in life, marry later in life, start their family later in life, and significantly, tap into their housing equity to fund rising costs of living and lifestyle, earlier in life.
An increasing number of first-home buyers are rummaging into mum and dad’s equity pot - reducing the retirement income stream of the current middle aged populous, and evidently - as census results project - it’s now expected future generations will reach retirement still paying down this principal debt with superannuation used to fund the difference.  Subsequently, the age at which most folk can easily retire, will extend well into the seventies.
It’s all very well making the call to ‘populate or perish’ as some of our industry commentators regularly do however, it is notoriously difficult to predict changes in both natural and migrant fluctuations in growth.
In an excellent study by Jessica Brown and Oliver Hartwich entitled “Modelling Australia’s Demographic Future” it was found that increased migration on its own could not provide a viable solution to our ageing population – significantly, it’s our falling fertility rates that are the biggest cause for concern.
As the paper points out, the current European Union average is 1.5 children per female – and if we were to match it with the downward trend in fertility rates, under the best case scenario (with continued high migration growth) the median age today – currently 37 years - will rise close to 46 years with the number 80 year olds set to reach around 2 million by 2050.
Furthermore, as mining investment scales down – unless there’s a considerable uptick in other areas of our economy – a scenario which is looking increasingly dire as manufacturing struggles and job losses continue to filter in from in various regions, it’s highly likely we’ll see a drop in net migration which will exacerbate the problem.
 
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All in all – is it doesn’t matter what we do – whether we throw open our boarders (unlikely under current political opinion) or take a sustainable ‘steady as she goes’ rhetoric – which in essence means little, because even with a strict migration policy and a further fall in the birth rate, Australia’s population would still lead to over 29 million bodies by 2050 – we’re heading toward an ageing tsunami.
Evidently, this presents significant challenges.  In years when house prices were booming, it followed that the level of consumer spending increased and credit growth was strong.
In a study by Australian Housing and Urban Research institute in 2007 (the height of the boom) it was found for every $100,000 increase in housing wealth, there was a bounce back in consumer consumption of $1000 to $1500 per annum.
It was all going swimmingly whilst the market remained rampant.  However, following the backdrop of GFC, households are saving more – spending less – and a marked proportion of those who purchased at the ‘peak’ of 2010 remain in negative equity.  As it stands, national turnover of sales remains weak.
The reducing number of first home buyers as a percentage of the buying market is significant.  As noted from a recent <a target="_blank" href="/news">QBE LMI survey</a> – and certainly shared by my own anecdotal evidence – first home buyers perceive prices ‘too high.’ Their budget is typically around $300,000 which will barely purchase a one bedroom inner city apartment in either Sydney or Melbourne, and is less than the average ‘new’ house price on the fringe ($400,000.) 
They also recognise they will need to hold their properties for a longer period of time to advantage from an increase in equity. In other words – it will take longer, before an ‘upgrade’ is possible.
For those looking to downsize, the challenges are also evident.  Retirees don’t generally look at the apartment market when <a target="_blank" href="https://www.propertyobserver.com.au/residential/there-s-little-evidence-to-suggest-a-downsizing-rush-catherine-cashmore/2013041460355">downsizing</a>. Evidence shows most preference low maintenance single level, independent units, close to transport, shops, doctors and hospitals, ideally with space enough to hold the lifetime’s worth of accumulated memories.
However, the majority stock currently being developed consists of high density ‘squeeze as many on the block as possible’ apartments, double story townhouses – or new house and land packages – hence why the tendency to remain in their principal place of residence is strong.
It’s clear the property needs of home buyers must be addressed by urban planners if we’re to free up the market stagnation which will increasingly affect city dwellers as the population expands.
Adequately funding infrastructure for our fringe suburbs to boost the construction sector as well as reducing hefty development overlays which are passed onto the buyer, addressing policies to constrain investor and foreign acquisition into the established sector which does little to increase supply, not to mention the recent trend of land banking vacant blocks which could be subdivided into homes ideally suited to both the downsizer and young family buying demographic - all need addressing.
But the bottom line remains that politicians are not going to be able to control the inevitable - in the future the dependency ratio (the relationship between the working age and non working age) is projected to be roughly 60% – therefore we need to foster improvements to workforce participation if we stand any chance of offsetting this imbalance.
Demands on the taxpayer will be immense, and with one in seven Australians a property investor, and one in ten, negatively geared it remains a key drain on revenue.
It won’t be politically popular, but this – along with other poor tax strategies – should be reviewed if we’re to survive the inevitable.
All in all – we’re playing ‘catch up’ as we head toward our ageing headwind.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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