<p data-end="309" data-start="290"><strong data-end="309" data-start="290">Article summary</strong></p>

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
<p data-end="896" data-section-id="ojaazg" data-start="792">Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.</p>

<p data-end="1358" data-start="1137">The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.</p>

<p data-end="1358" data-start="1137">[smartcode_project:default project_id=90059 project_image_fid=374075]</p>

<p data-end="1577" data-start="1360">Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.</p>

<p data-end="1781" data-start="1579">The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.</p>

<p data-end="1977" data-start="1783">The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.</p>

<p data-end="1977" data-start="1783">[smartcode_project:default project_id=90059 project_image_fid=374059]</p>

<p data-end="2314" data-start="1979">One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.</p>

<p data-end="2423" data-start="2316">Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.</p>

<p data-end="2519" data-start="2425">"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.</p>

<p data-end="2688" data-start="2521">"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."</p>

<p data-end="2688" data-start="2521">[smartcode_project:default project_id=90059 project_image_fid=374060]</p>

<p data-end="2840" data-start="2690">Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.</p>

<p data-end="2900" data-start="2842">"Materiality tells the story of a place," Williamson said.</p>

<p data-end="3105" data-start="2902">"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."</p>

<p data-end="3300" data-start="3107">Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.</p>

<p data-end="3300" data-start="3107">[smartcode_project_cta:default project_id=90059]</p>


Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

<p data-end="288" data-start="269"><strong data-end="288" data-start="269">Article summary</strong></p>

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289"><strong data-end="374" data-start="291">DVB Projects is preparing to launch its second Gold Coast apartment development</strong>, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443"><strong data-end="513" data-start="445">The 34-level tower will comprise just 49 ultra-luxury residences</strong>, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574"><strong data-end="646" data-start="576">The launch follows strong demand at DVB's nearby Sea Glass project</strong>, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718"><strong data-end="787" data-start="720">The development adds to the transformation of Old Burleigh Road</strong>, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<p data-end="1011" data-start="790"><a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.</p>

<p data-end="1296" data-start="1013">The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion</p>

<p data-end="1296" data-start="1013"><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" /></p>

<p>The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.</p>

<p>“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;</p>

<p>“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."</p>

<p>Brown says the site itself is "exceptional."</p>

<p>"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." /></p>

<p>The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.</p>

<p>A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.</p>

<p>Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" /></p>

<p>Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.</p>

<p>“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.</p>

<p>“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.</p>

<p>“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" /></p>

<p>Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.</p>

<p>With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.</p>

<p>[smartcode_project_cta:default project_id=145141]</p>


DVB Projects to launch second Broadbeach apartment tower as demolition commences

<p>A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.</p>

<p>Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.</p>

<p>While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.</p>

<p><img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" /></p>

<p>Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.</p>

<p>Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.</p>

<p>The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.</p>

<p><img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" /></p>

<p>The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.</p>

<p>In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.</p>

<p>Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.</p>

<p>According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.</p>

<p>Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.</p>

<p>The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a></em></p>

<p>&nbsp;</p>


Alfred Street the latest North Sydney pocket to be transformed by residential development

<p>Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.</p>

<p>For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.</p>

<p>Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.</p>

<p>"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374893]</p>

<p>Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.</p>

<p>The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;</p>

<p>Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.</p>

<p>Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=269527]</p>

<p>Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.</p>

<p>"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."</p>

<p>The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.</p>

<p>"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374892]</p>

<p>Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.</p>

<p>Construction is underway with completion expected in mid-2027.</p>

<p>[smartcode_project_cta:default project_id=7354]</p>


Boutique Gordon townhomes now come with a BMW iX3 50

<p>Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.</p>

<p>The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.</p>

<p>The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.</p>

<p><a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.</p>

<p>The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359521]</p>

<p>The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359527]</p>

<p><a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.</p>

<p>"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.</p>

<p>"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.</p>

<p>"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.</p>

<p>"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359523]</p>

<p>The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.</p>

<p>Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.</p>

<p>EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.</p>

<p>WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.</p>

<p>"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.</p>

<p>"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."</p>

<p>Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>[smartcode_project_cta:default project_id=145590]</p>


Vitale breaks Byron Bay records with EADE sales flurry 

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


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

<html><body>
<p>EXPERT OBSERVER</p>
<p>Markets in Regional NSW continue to head in the opposite direction to Sydney. While the Sydney market is showing increasing signs of decline (generally speaking – there are exceptions), the cities and towns of Regional NSW are delivering growth markets right across the state.</p>
<p>This is particularly evident in the price data. Hotspotting’s location-by-location analysis has revealed 150 Regional NSW locations where median prices have grown 5% or more in the past year, of which 65 locations have increased more than 10%.</p>
<p>In addition to the 150 places with 5%-plus price growth, there are another 67 locations with annual price growth between 1% and 5%.</p>
<p>The growth has been led by seven locations with growth of 20% or more: Crestwood (up 26%) Evans Head (up 23%), Kiama (up 22%), Catalina (up 21%), Berry (up 20%), Soldiers Point (up 23%) and the Shoal Bay unit market (up 31%).</p>
<p>The Newcastle region has been particularly strong on price growth in the past year. The LGAs of Newcastle, Lake Macquarie and Port Stephens all have multiple suburbs with solid to strong median price growth.</p>
<p>The Central Coast is another standout, with 13 suburbs with median price growth above 5%, including Ettalong Beach (up 17%), Kincumber (up 10%) and Wamberai (up 13%).</p>
<p>In terms of locations with rising demand, as measured by quarterly sales activity, our Summer survey has found 53 Regional NSW locations with markets trending upwards. This is slightly below the average of the past two years and is down on the 70 rising markets identified in the Spring 2018 sales survey.</p>
<p>The Queanbeyan-Palerang LGA just outside Canberra is the leading precinct, with five locations with rising demand. Leading locations include Crestwood and Queanbeyan East, where quarterly sales activity has been trending steadily upwards over the past 1-2 years. Crestwood’s median house price has risen 26% in the past 12 months.</p>
<p>The Newcastle region continues to stand out, although Newcastle itself is past the peak in terms of sales activity. There are only two Newcastle suburbs with rising demand but many with plateau markets. The previous strong demand is still delivering significant price growth and a number of suburbs (including Hamilton, Hamilton South, Mayfield, Wallsend and North Lambton) have risen more than 10% in the past year.</p>
<p>Outside Newcastle in neighbouring LGAs, Lake Macquarie and Maitland both have four suburbs with rising demand, while nearby Port Stephens has two. Out in the Hunter Region, Singleton, Muswellbrook and Scone all have increasing buyer activity. Muswellbrook’s quarterly sales have been 41, 52, 57, 74, 60 and 78 in the past 18 months – and its median house price has risen 8% to $305,000 in the past year.</p>
<p>Tamworth is one of the emerging markets. It now has four suburbs with rising demand, including North Tamworth where quarterly sales have been 17, 30, 34, 39, 34, 41 and 45 – with its median house price up 11.5% to $430,000 in the past 12 months.</p>
<p>There are towns with growth markets right across Regional NSW, including Casino, Kyogle, Cooma, Griffith, Parkes, Gunnedah, Cowra, Glen Innes, Inverell, Gloucester, Lithgow, Mudgee, Tuncurry and Broken Hill.</p>
<p>Some significant markets have passed their peaks in terms of sales activity, but still have strong prices. They include the Central Coast, Newcastle, Wollongong, the towns of the Wingecarribee LGA and the Tweed region near the Queensland border.</p>
<p>In the Tweed area, prices have risen strongly in the past 12 months in Bogangar (11%), Casuarina (19%) and Kingscliff (14%).</p>
<p><em>Terry Ryder is the founder of hotspotting.com.au, ryder@hotspotting.com.au, twitter.com/hotspotting</em></p>
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terryryder-YECXbqmri2

Regional NSW rising as Sydney falls: Hotspotting's Terry Ryder

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<p>EXPERT OBSERVER</p>
<p>According to the CoreLogic Home Value Index, dwelling values have recorded some substantial falls over the 12 months to January 2019. Four of the eight capital cities have recorded dwelling value falls while four of the seven rest of state markets have also experienced declines.</p>
<p><a href="https://www.corelogic.com.au/sites/default/files/inline-images/001%2012%20month%20change%20in%20dwelling%20vales.emf__0.jpg" target="_blank">Click</a> to enlarge.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/001%2012%20month%20change%20in%20dwelling%20vales.emf__0.jpg" alt="001 12 month change in dwelling vales.emf_.jpg" width="1050" height="559" data-entity-type="file" data-entity-uuid="f21356ec-de3e-4809-acaf-7e17f28fcdf4" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style=""></p>
<p>Nationally, dwelling values have fallen by -5.6% over the 12 months to January 2019 which is their largest annual fall since March 2009.</p>
<p>Combined capital city dwelling values were -6.9% lower over the past year while combined regional markets saw much more moderate value falls of -0.8%.  </p>
<p>For the combined capital cities, the -6.9% fall is the largest since February 2009 while the -0.8% fall across regional markets is the largest since October 2012.<br><br>The recent declines in dwelling values are very much a different situation to the one that has played out over the past 20 years.</p>
<p><a href="https://www.corelogic.com.au/sites/default/files/inline-images/002%2020%20year%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/002%2020%20year%20change%20in%20dwelling%20vales_0.jpg" alt="002 20 year change in dwelling vales.jpg" width="1012" height="542" data-entity-type="file" data-entity-uuid="7ab6cac4-2830-4ad3-b5d0-f34972df29df" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style=""></p>
<p><br><br>Over the past 20 years, national dwelling values have increased by 197.4% with the combined capital cities recording stronger total value growth (212.4%) than the combined regional markets (150.3%).  </p>
<p>Looking at the individual capital cities, Melbourne has recorded the greatest value gains over the period (274.6%) while Darwin value growth has been the most moderate (38.4%).  The weak growth in Darwin has been driven by values falling by almost 26% since peaking in mid-2014.  </p>
<p>Across the individual rest of state regions, growth has been strongest in regional NSW (185.6%) and weakest in regional WA (77.5%).  Darwin and regional WA were the only two major regions of the country where values have not doubled over the past 20 years.<br><br>Within the past 20 years there have been many housing cycles so the following graphs will show how each region has seen values change over the 20 years within five year increments.<br><br>The five years to January 2004 was the strongest five-year period for value growth over the past 20 years, with national dwelling values increasing by 80.2%.  Over the period, the total growth in values across the combined capital cities (79.6%) and the combined regional markets (82.0%) was remarkably similar.  In fact, it was also the only five-year period in which value growth was stronger in regional markets than in capital cities.</p>
<p><a href="https://www.corelogic.com.au/sites/default/files/inline-images/003%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/003%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="003 5 years change in dwelling vales.jpg" width="1088" height="579" data-entity-type="file" data-entity-uuid="55120ca7-ddde-48d9-a9d7-54abca62c8ae" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style=""></p>
<p><br>Over the five years to January 2004, capital city value growth was greatest within Canberra (110.9%) and weakest within Darwin (-3.9%). While values in Darwin fell, the next weakest growth in capital city values was Perth (63.5%).  Across the regional markets, values saw little growth over the five years in regional WA (24.4%) and regional NT (28.9%) while elsewhere value growth was quite strong with values doubling in regional NSW (108.8%).<br><br>Following the strong value growth between 1999 and 2004, the growth in dwelling values over the five years to January 2009 was generally much more circumspect.  Over the period, national dwelling values increased by 14.9% with a 15.2% rise across the combined capital city markets and a 14.2% increase throughout the combined regional markets.  While the headline figures show little growth, it was quite a different story within different regions with some of the smaller housing markets experiencing big gains.  </p>
<p><a href="https://www.corelogic.com.au/sites/default/files/inline-images/004%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/004%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="004 5 years change in dwelling vales.jpg" width="1016" height="541" data-entity-type="file" data-entity-uuid="07eba968-8ad9-4b1a-ae57-dacf97b00270" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style=""></p>
<p><br><br>Across the individual capital cities, Perth (52.3%) and Hobart (57.1%) recorded the strongest value growth over the five years to January 2009.  Sydney was the weakest capital city market for value growth over the five years with values falling by 4.6%.  In regional markets, regional WA was booming on the back of the mining boom with values increasing by 80.9% over the five years.  Although regional NSW recorded the strongest value growth over the previous five years, it was the weakest market during this period with values falling -3.4%.<br><br>The five years to January 2014 marks the period following the GFC and saw the mining boom come to an end.  Low interest rates and market stimulus saw values rise 20.3% nationally during the five years.  The growth in values over the period was almost entirely driven by the combined capital cities (25.3%) with very little value growth across he combined regional markets (4.8%).  </p>
<p><a href="https://www.corelogic.com.au/sites/default/files/inline-images/005%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/005%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="005 5 years change in dwelling vales.jpg" width="1041" height="554" data-entity-type="file" data-entity-uuid="25d6caea-fc23-4f56-bdc5-04cb6f5db9fd" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style=""></p>
<p><br><br>Across the capital cities, values growth in Sydney (36.5%) and Melbourne (32.3%) was much stronger than elsewhere with Brisbane (5.0%) experiencing the weakest growth.  In regional markets, values declined by -2.0% over the five years in regional Qld while regional NT (30.2%) experienced the greatest increase in values over the period.<br><br>Over the most recent five years, national dwelling values have increased by 19.4%.  The combined capital cities index has increased by 20.6% while the combined regional market index is 14.9% higher.  </p>
<p><a href="https://www.corelogic.com.au/sites/default/files/inline-images/006%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click </a>to enlarge.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/006%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="006 5 years change in dwelling vales.jpg" width="1003" height="534" data-entity-type="file" data-entity-uuid="65a12c3b-534e-469a-8054-05d3fb2a2272" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style=""></p>
<p><br><br>Across the individual capital cities, Perth (-15.6%) and Darwin (-24.4%) have recorded large falls while Hobart (35.1%) has experienced the strongest value growth.  In the regional markets, values have fallen in regional SA(-1.1%), regional WA (-22.6%) and regional NT (-7.3%) while regional NSW has recorded the largest value increase (28.2%).<br><br>While past performance is certainly not an indicator of future performance, the data shows that over the past two decades most regions have seen some substantial increases in dwelling values.  The data also shows that over five year increments, the best regions for growth in a given five-year period are typically the weaker areas for growth over the following five years.  Given substantial growth over recent years in markets such as Sydney, Melbourne and Hobart that may provide some insight into the performance of these cities over the coming years.<br><br>Of course, the housing market has a number of headwinds that have not been seen for some time.  Throughout most of the past 20 years, credit has been becoming easier to access, since late 2014 credit has increasingly become harder to access.  Furthermore, ongoing strong value growth in Sydney, Melbourne and Hobart has seen housing affordability rapidly deteriorate over recent years.  Finally, economic conditions outside of NSW and Vic have tended to be quite weak over recent years which has curtailed housing demand in these markets.</p>
<p><em><span>CAMERON KUSHER </span>is a property research analyst for CoreLogic.</em></p>
<div>
<div id="cpgAdsenseContainerId"><ins id="aswift_0_expand" data-ad-slot="3195360564"></ins></div>
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ckusher-ujnxiKuFQs

The Australian capital cities that saw substantial house price gains over past two decades: Cameron Kusher

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<p>Construction work done missed expectations in the fourth quarter shrinking by another 3 per cent to $51.1 billion. </p>
<div>That follows on from a significant contraction in Q3, so in the second half of 2018 construction work done slowed by about 7 per cent overall.</div>
<div> </div>
<div>Quite nasty on the face of it, although we were coming off a high base. </div>
<div> </div>
<div>The engineering construction work done figures took a 5 per cent hit in Q4, which sounds quite dire at first blush.</div>
<div> </div>
<div>To be fair, the ABS has never gone big on accruals accounting for one-offs like the LNG Prelude platform, and as the Gorgon and Ichthys projects drop off the headline figures will inevitably appear weak - yet the underlying figures aren't quite so bad.</div>
<div> </div>
<div>In fact mineral exploration spend has been on the rise, so investment and mine restarts will likely pick up, especially in Western Australia. </div>
<div> </div>
<div>Here are the trend figures for engineering, in chain volume measures terms (you can click to expand the charts).</div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-vHa4gkejwfc/XHXfv_tDHhI/AAAAAAAAutU/tZU6tx8YpQsd2_kiSR5ZznERJZye_7BAACLcBGAs/s1600/A1.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-vHa4gkejwfc/XHXfv_tDHhI/AAAAAAAAutU/tZU6tx8YpQsd2_kiSR5ZznERJZye_7BAACLcBGAs/s640/A1.jpg" width="640" height="374" data-original-height="803" data-original-width="1367"></a></div>
<p> </p>
<div>Residential construction work dropped by about 3½ per cent in the fourth quarter, although overall activity was actually still quite high on these estimates. </div>
<div> </div>
<div>A significant driver of the squeeze was slowing Sydney and Brisbane apartment construction, and there'll be plenty more to come here in 2019. </div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-iOylhEeJli8/XHXfwEaU6iI/AAAAAAAAutc/1WlaQhkwTqYA1J_O_tsLAYo-jm3j10fEwCLcBGAs/s1600/A2.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-iOylhEeJli8/XHXfwEaU6iI/AAAAAAAAutc/1WlaQhkwTqYA1J_O_tsLAYo-jm3j10fEwCLcBGAs/s640/A2.jpg" width="640" height="376" data-original-height="815" data-original-width="1387"></a></div>
<p> </p>
<div>For completeness, quarterly 'other residential' work done slowed by about 4½ per cent in H2 2018 from $8.2 billion to $7.8 billion.</div>
<div> </div>
<div>In my humble opinion there could well be another couple of billion of quarterly declines to come here in 2019 and beyond, even if Australia is moving more towards attached dwellings and medium-density living. </div>
<p> </p>
<div><a href="https://4.bp.blogspot.com/-_ipAqrmh5jM/XHXfvygOfhI/AAAAAAAAutY/eBW_Qxir5zgbz2qFMTYqJOok537AOZ0wQCLcBGAs/s1600/A3.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-_ipAqrmh5jM/XHXfvygOfhI/AAAAAAAAutY/eBW_Qxir5zgbz2qFMTYqJOok537AOZ0wQCLcBGAs/s640/A3.jpg" width="640" height="392" data-original-height="834" data-original-width="1361"></a></div>
<div> </div>
<div><strong>The wrap</strong></div>
<div> </div>
<div>Overall, a fairly ordinary miss on expectations. </div>
<div> </div>
<div>There are still too many partials to be reported for Q4 2018 to have any level of certainty, but while a technical recession perhaps remains unlikely, in per capita terms it looks very possible.</div>
<div> </div>
<div>Banks on strike; no chance of a hike.</div>
<div> </div>
<div><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></div>
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pwargent-M4siyDbqQY

Construction misses in Q4: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p>Mortgage rates in Australia have fallen sharply from around 8 to 10 per cent since 2008.</p>
<div>So it's reasonable to expect that housing rental yields would be considerably lower too.</div>
<div> </div>
<div>At the nadir, though, gross rental yields across the combined capital cities had sunk to below 3½ per cent, which is clearly far too low (and that's a gross figure). </div>
<div> </div>
<div>Here's an interesting chart from CoreLogic today, showing combined capital city yields tracking back quite quickly towards a rather more sustainable 4 per cent. </div>
<div> </div>
<div>Sydney has done some of that lifting, but with more pressure on its rental market the main driver has been Melbourne, with gross rental yields rising from near-record lows of 3.1 per cent in February 2018 to 3.6 per cent. </div>
<div> </div>
<div>Click <a href="https://2.bp.blogspot.com/-e8HYLNBoDoE/XHh_JygJXNI/AAAAAAAAuxY/aMPH6jBgzuQpI94mLAipxCfUG5l1kkXGACLcBGAs/s640/Yields.jpg" target="_blank">here</a> to enlarge</div>
<div> </div>
<div><img src="https://2.bp.blogspot.com/-e8HYLNBoDoE/XHh_JygJXNI/AAAAAAAAuxY/aMPH6jBgzuQpI94mLAipxCfUG5l1kkXGACLcBGAs/s640/Yields.jpg" width="640" height="414" data-original-height="538" data-original-width="829"></div>
<p> </p>
<div><em>(Source: CoreLogic)</em></div>
<div><em> </em></div>
<div>There has been a wide variation of results across markets, with demand largely coming from the bottom up thanks to first home buyer stimulus, but the upper quartile of the market seeing far fewer transactions on tight lending standards.<br><br>Negative equity hasn't featured too much in Australian housing in recent years, but with tighter credit holding down markets in Perth, Darwin, and some other regions, this is starting to become a factor of concern, especially as some borrowers are forced off interest-only mortgages.<br><br>Noted CoreLogic on the second wind for the Perth and Darwin downturn:<br><br>'This renewed downwards pressure on home values coincides with a softening in labour market conditions, with weaker housing market results likely compounded by credit scarcity.'</div>
<div>
<br>Perth's median price has fallen by about 20 per cent over a downturn now spanning more than 4½ years.<br><br><div><img src="https://1.bp.blogspot.com/-5wxI9592SwI/XHjwAsnWzuI/AAAAAAAAuyM/074mg4IqR4o3KHA-SG1XvyuEwjozIgyxQCLcBGAs/s640/Perth.jpg" width="640" height="408" data-original-height="842" data-original-width="1316"></div>
<br><div><em>(Source: CoreLogic)</em></div>
<div><em> </em></div>
<div><em><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></em></div>
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Rental property yields recovering: Pete Wargent

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<p>Australians are feeling much happier about their general health and wellbeing than they are about their finances, a new study has revealed – with home ownership being a key stress point.</p>
<p>A national Colmar Brunton survey has found that only 35% of Australians are satisfied with their financial wellbeing, while 59% are satisfied with their mental wellbeing, 50% with their social wellbeing and 45% with their health and physical wellbeing.</p>
<h2>Renters more financially stressed than property owners</h2>
<p>Owning a property versus renting a property has a direct effect on financial wellbeing, the study revealed, with renters (45%) much more likely to be dissatisfied.</p>
<p>According to social researcher Mark McCrindle, owning your own home or property is a perceived milestone that often affects people’s sense of satisfaction.</p>
<p>“Individuals compare themselves to their peer group and home ownership has been the wealth vehicle they have used,” Mr McCrindle told News.com.au. “Costs of living are going up and if they are still renting, rather than owning a house, it can add to their insecurities.”</p>
<h2>Australians feeling unprepared for the future</h2>
<p>One in three survey respondents said they did not have the financial freedom to make choices that would allow them to enjoy their lives.</p>
<p>A further 29% do not feel prepared for any potential financial setbacks or emergency events.</p>
<p>Funding retirement was top of mind for many respondents with 43% feeling their superannuation is not on track to allow them to maintain their standard of living into retirement.</p>
<p>The data also revealed that 36% of Australians believe they will need to keep working past the age of retirement.</p>
<h2>A taboo topic</h2>
<p><a href="http://www.ironfish.com.au/blog/2018/05/31/advocating-financial-literacy-wellbeing-workplace/" target="_blank">Experts agree</a><span class="Apple-converted-space"> </span>that the journey to financial wellbeing starts with education. And yet financial education is notably lacking – it is not commonly taught in schools, or the workplace – and therefore an individual’s financial education is completely dependent on social, familial or community structures and resources.</p>
<p>“Wealth is a taboo topic,” says Ironfish CEO &amp; Founder, Joseph Chou. “It’s not taught in school, we don’t talk about it amongst ourselves, or with friends or colleagues, generally speaking. And yet, we know from experience that wealth can be learned.</p>
<p>“That’s why it’s so important to us at Ironfish to inspire people to take ownership of their finances and achieve the financial freedom they need to enjoy life now and feel more confident about their future.”</p>
<h2>From renter to owner</h2>
<p>In our experience, most people already believe that property is a great investment and has a strong link to their sense of financial wellbeing.</p>
<p>Most people probably also wished they’d bought property years ago but lacked the confidence to make a decision about which particular property to purchase or felt it was too far out of reach.</p>
<p>At Ironfish, our aim is to simplify investment concepts, provide quality education, investor tools, service and properties – and share our collective investment experience to help you achieve your property goals.</p>
<p>Over 86% of our staff are property investors<a name="_ftnref1" href="http://www.ironfish.com.au/blog/2018/07/13/aussies-feeling-fit-well-just-not-financially-new-research-finds/#_ftn1">[1]</a> including first home buyers and<span style="text-decoration: underline;"> </span><span style="text-decoration: underline;"><a href="http://www.ironfish.com.au/blog/2017/10/16/thinking-beyond-sydney-rent-vesting-works/" target="_blank">rent-vestors</a></span><span class="Apple-converted-space"> </span>– so we have walked the path before.  </p>
<p> </p>
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jrobinson-rf4aSBido9

Aussies feeling fit and well – just not financially, new research finds: Ironfish

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<div>EXPERT OBSERVER</div>
<div> </div>
<div>OK, first things first. </div>
<div> </div>
<div>I am indeed a so-termed vested interest: I would like to see full employment, stronger wages and household income growth, the Aussie economy growing at least at trend or ideally above trend, and I don't want to see the housing market getting zinged unnecessarily. </div>
<div> </div>
<div>Yep, you got me on that one. </div>
<div> </div>
<div>With these formalities out of the way, I saw APRA's latest ADI exposures today described as 'red alert lending data', very 'concerning', a 'loosening' of lending standards, that should be 'ringing alarm bells' to APRA due to lenders 'breaking their own rules', among various other remarks (source: Digital Finance Analytics). </div>
<div> </div>
<div>For the record, while blog-flaming isn't really my bag, I must wholeheartedly disagree on each and every point!<br><br>Whatevs, I'll post a few deets and you can make your own mind up...</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Stock of IO loans plunges</span></strong></div>
<div> </div>
<div>Firstly, the flow of new interest-only (IO) loans in Q2 2018 was a meagre 16.6 per cent of residential term loans, absolutely miles below the initially proposed cap of 30 per cent (and a world apart from the 45.6 per cent record high of Q2 2015). </div>
<div> </div>
<div>With far fewer loans written overall from a year earlier in spite of a strong increase in the Aussie population, this represented a modest increase in percentage terms from the preceding quarter.</div>
<div> </div>
<div>However, the actual number of interest-only loans was some 52 per cent lower than in the corresponding quarter of the prior year - and almost 70 per cent lower than the number written at the peak of IO lending in 2015.</div>
<div> </div>
<div>A 'loosening'? Hardly.<br><br>But even if more IO loans were to be written henceforth I personally don't believe that would be <span>a bad thing.</span>
</div>
<div><span> </span></div>
<div><span>The last thing<span> we need <span>is $½ trilli</span>on of IO</span> mortgages being reset with undue haste - unless you actually want to see the housing market get stiffed, which of course many people do - and some breathing space would surely be welcomed by a portion of existing IO borrowers. </span></div>
<p> </p>
<div class="separator"><img src="https://4.bp.blogspot.com/-tFVWEE8Ibxg/W5kafR9EsAI/AAAAAAAAr3M/i525R8a2Vz0RTipYynJRdMnqcv0vtlPHwCLcBGAs/s640/IO1.jpg" width="640" height="372" data-original-height="803" data-original-width="1377"></div>
<p> </p>
<div>Regardless of your views on that, there was another enormous decline in the stock of IO loans in the June quarter, with IO loan balances outstanding now having plunged some $119 billion lower over the past five quarters. </div>
<div> </div>
<div>The share of IO loans outstanding through June 2018 was thus by some margin at the lowest level across the entire data series at about 29 per cent, down from close to 40 per cent in late 2015. </div>
<div> </div>
<div>Note that these numbers only run to the end of the 2018 financial year; at the current trajectory the share of IO loans will likely be around 26.9 per cent by the end of this month, a figure that was truly unthinkable only last year, and the lowest level in decades. </div>
<div> </div>
<div class="separator"><img src="https://2.bp.blogspot.com/-VvYLsKyPgs4/W5kafal-H0I/AAAAAAAAr3c/Z0gyForrg7IQlC8ki_SD-5ePZVQnPQW_wCEwYBhgL/s640/Io3.jpg" width="640" height="374" data-original-height="801" data-original-width="1367"></div>
<p><br><span>A loosening...very droll.</span><br><br></p>
<div>
<strong><span style="text-decoration: underline;">Less and less and less high-LVR lending</span></strong><br><br>Secondly, in relation to DFA's 'red alert' on lending standards, the loan-to-value (LVR) ratios on new loans have been tightening incrementally for the better part of half a decade now.</div>
<div> </div>
<div>Loan volumes are down, there was a miniscule change in Q2 for the share of new loans written at 80 per cent LVR or above, while loans written above 90 per cent LVR or above have never been as low as they are today since the available records began.</div>
<div> </div>
<div>'Red alert'? You must be having a giraffe, surely - we've literally never seen lending standards remotely like it!</div>
<p> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-myr13CMquKE/W5kafSp7IYI/AAAAAAAAr3I/yRholEdAVYs5ZbZ6AiRGWIEbZtAQeLy0QCLcBGAs/s640/IO2.jpg" width="640" height="368" data-original-height="796" data-original-width="1381"></div>
<div> </div>
<div>Thirdly, low-doc and other non-standard loans are also tracking at the lowest level on record. </div>
<div> </div>
<div>Fourthly, the quarterly flow of new investment loans plunged by the best part of $5 billion year-on-year, so how you conclude a sudden loosening of standards from that I can't fathom (automatic red card for anyone directly comparing volumes from Q1 to Q2). </div>
<div> </div>
<div>And fifthly, a word that is devilishly hard to spell at the best of times, DFA cites loans approved outside serviceability, noting that these should be ringing 'alarm bells' to the regulator.</div>
<div> </div>
<div>Fair suck of the sauce bottle, mate, but this almost certainly represents a timing issue and reflects <em><strong>tighter</strong> </em>lending standards, not looser.</div>
<div> </div>
<div>You can't tell me with a straight face that banks are blithely waving through marginal or borderline applications and then willingly reporting them as such in the current lending environment. Not happenin'.</div>
<div> </div>
<div>'I could go on...', as Jon Culshaw's impersonation of Russell Crowe might drily observe.</div>
<div> </div>
<div>Due apologies for the apparent curtness, but this stuff has a tendency to be uncritically reported by rote, so someone needs to chime in with a few of these inconvenient actualities.<br><br>Much obliged. As you were :-)</div>
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Interest-only loans running at 70 per cent down on 2015 peak: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p>As reported in the latest CoreLogic home value index results, the national property market slowdown is having a wider impact with regional dwelling value growth experiencing the flow-on effect.</p>
<p>I examined how values have changed over the past 12 months outside of the capital cities.</p>
<p>Overall, regional dwelling values recorded a 1.6% capital gain over the twelve months ending August 2018.</p>
<p>Although values have still increased over the past year, the pace of capitals has been slowing and the 1.6% increase is the slowest annual growth rate since September 2013.</p>
<p>Over the past year, dwelling values have increased across the non-capital city markets of every state except Western Australia (-4.4%).</p>
<p>In regional NSW (+1.4%) value growth is the slowest it has been since April 2013 while in regional Tas (+8.0%) annual growth is the strongest it has been since March 2010.</p>
<p>Drilling down, the sub-regions highlight the diversity of property market conditions across the broad regional areas of Australia.</p>
<p>Of the 42 regional SA4 regions, 24 recorded an increase in dwelling values over the past year with the remaining 18 recording a fall.</p>
<p>Geelong (11.8%) was the only region to record double-digit growth while Tasmania’s South East (9.9%) and Launceston / North East Tasmania (9.3%) were the only two others to record growth in excess of 7.5%.</p>
<p>Of those regions that have recorded growth over the year, nine are in NSW, five are in VIC, three are in QLD, two are in SA, one is in WA, three are in TAS and one is in NT.</p>
<p>Central Queensland (-7.7%) had recorded the largest value fall over the year followed by Bunbury I WA and Mackay-Isaac-Whitsunday (both 5.4%).</p>
<p>Unsurprisingly, WA along with Qld, dominates the list of regional areas in which values have fallen the most over the past year.</p>
<p>In general terms, the regions linked to the resources sector have continued to record value falls over the past year while lifestyle markets and those close to capital cities have recorded increases.</p>
<p>The main exceptions are Mid North Coast and Illawarra, which are slowing as Sydney slows and Toowoomba just to the west of Brisbane.</p>
<p>On a quarterly basis, the number of regions recording value falls is larger than the number recording a fall over the year, indicating a worsening in regional housing market conditions over recent months.</p>
<p><img src="https://www.urban.com.au/images/2018/9/13/Tim%20CL%20PP.JPG" alt=""><img src="https://www.urban.com.au/images/2018/9/13/Tim%20CL%20PP%202.JPG" alt="" width="635" height="610"></p>
<p><em>Tim Lawless is the head of research at CoreLogic</em></p>
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tlawless-5VLUrbAk9s

How the shift in dwelling values have affected regional areas of Australia: Tim Lawless

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<div><span>EXPERT OBSERVATION</span></div>
<div><span> </span></div>
<div><span>The Foreign Investment Review Board (FIRB) released its Annual Report for the 2017 financial year, and as expected it showed that investment in new apartments from mainland Chinese investors has been annihilated by a combination of fee charges and tighter capital controls.</span></div>
<div><span> </span></div>
<div>
<span>There's much more to the Annual Report than just the residential real estate investment aspect, of course, but this is a blog not an Encyclopaedia Britannica so let's crack straight into it.</span><span><br></span>
</div>
<div><span> </span></div>
<div><span>Although the impact on total foreign investment was played down in the report, the reality is that the number of residential approvals have been smoked, down by 67 per cent from the prior year. </span></div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-UMTpeaTHMM4/WwyhL22FvEI/AAAAAAAAqP0/8gaf_QtZb183rLkVwdH45jQUDJNGnkdRQCLcBGAs/s1600/FIRB1.jpg"><img src="https://2.bp.blogspot.com/-UMTpeaTHMM4/WwyhL22FvEI/AAAAAAAAqP0/8gaf_QtZb183rLkVwdH45jQUDJNGnkdRQCLcBGAs/s640/FIRB1.jpg" width="640" height="372" data-original-height="780" data-original-width="1337"></a></div>
<div>Similarly the value of residential approvals crashed 65 per cent lower from $72.4 billion to $25.2 billion. </div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-eeKkUWK9UlM/WwyhMNmDdLI/AAAAAAAAqP4/8tL55X2DYeMHxJaDttmNpm2Z3WPJ1uxcQCLcBGAs/s1600/FIRB2.jpg"><img src="https://2.bp.blogspot.com/-eeKkUWK9UlM/WwyhMNmDdLI/AAAAAAAAqP4/8tL55X2DYeMHxJaDttmNpm2Z3WPJ1uxcQCLcBGAs/s640/FIRB2.jpg" width="640" height="372" data-original-height="801" data-original-width="1376"></a></div>
<p> </p>
<div>The bulk of new approvals through this unprecedented cycle have been for new dwelling exemption certificates, mainly for Chinese investors.</div>
<div> </div>
<div>Looking at these numbers it's not hard to understand how Sydney now has more apartments approved but not yet commenced than at any time in its history, as <a href="http://petewargent.blogspot.com.au/2018/04/bust-looms-for-sydneys-apartment" target="_blank">detailed here previously</a>.</div>
<div> </div>
<div>The offshore buyers have dried up, demand from domestic investors has been stymied, and the demand from owner-occupiers is insufficient to get new development project finance across the line. </div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-NB_Pr0ox8ag/WwyhMFmGT_I/AAAAAAAAqP8/QW3ddVDDvDsLNYRsM8ydj3RaFs_WdVtqQCLcBGAs/s1600/FIRB3.jpg"><img src="https://2.bp.blogspot.com/-NB_Pr0ox8ag/WwyhMFmGT_I/AAAAAAAAqP8/QW3ddVDDvDsLNYRsM8ydj3RaFs_WdVtqQCLcBGAs/s640/FIRB3.jpg" width="640" height="376" data-original-height="798" data-original-width="1354"></a></div>
<p> </p>
<div>Statistically it appears to be a certainty that Sydney will experience the greatest number of failed apartment projects as these trends flow through. </div>
<p> </p>
<div class="separator"><a href="https://4.bp.blogspot.com/-oB--8HHlBVI/WwyhNNBYK4I/AAAAAAAAqQA/jcgvA_iBayUyUp_smd7mvblQxlk_NFajQCLcBGAs/s1600/FIRB4.jpg"><img src="https://4.bp.blogspot.com/-oB--8HHlBVI/WwyhNNBYK4I/AAAAAAAAqQA/jcgvA_iBayUyUp_smd7mvblQxlk_NFajQCLcBGAs/s640/FIRB4.jpg" width="640" height="378" data-original-height="801" data-original-width="1355"></a></div>
<p> </p>
<div>I expect to see plenty of apartment projects stalling, and increasing signs of discounting on new Sydney apartments.<br><br>Perhaps this was an inevitable end-game for this cycle, where development has been too much skewed towards apartments for investors, and too little towards the types of medium-density dwellings that people want to reside in.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>As noted, there is much more to foreign investment than just new apartment purchases, with total investment of $168 billion only 4 per cent below the level seen in the prior year. </div>
<div> </div>
<div>And indeed, investment in manufacturing, agriculture, ports, other commercial real estate, and resources has catapulted China to become by far and away the greatest investor in Australia at $38.9 billion in FY2017, miles ahead of the United States in second place at $26.5 billion.</div>
<div> </div>
<div>Nevertheless, these figures will have some significant impacts on the new apartment sector, construction trends, and the broader economy - and especially so in Sydney.</div>
<div> </div>
<div>
<span>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and </span><a href="https://petewargent.blogspot.com/" target="_blank">blogger</a><span>.</span>
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Local demand insufficient to get projects across the line as offshore apartment buyers dry up: Pete Wargent

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<p class="p1"><span class="s1">EXPERT OBSERVER</span></p>
<p class="p1"><span class="s1">The core task for investors is to find the growth locations, preferably before values rise significantly.</span></p>
<p class="p1"><span class="s1">It’s not an easy one because there’s a shortage of helpful information. Mostly the media and the research companies give us historical information and usually in a generalised way.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">This means they tell what’s happened recently, which doesn’t necessarily inform the future, and usually with a single growth figure to describe an entire major city.</span></p>
<p class="p1"><span class="s1">But something that came recently from CoreLogic was a little more helpful, because it provided some segmentation of sub-markets. Rather than simply tell us that Sydney and Melbourne prices are falling, it acknowledged that this is only true of some market sectors – and that others are still rising.</span></p>
<p class="p1"><span class="s1">There are some patterns with this data which are handy to observe and useful in deciding what happens next and where.</span></p>
<p class="p1"><span class="s1">One of the things I know to be true, from a scary number of years of experience, is that up-cycles often/usually begin in the inner-city areas. Over time they ripple out to the middle-ring suburbs and latterly to the outer-ring areas.</span></p>
<p class="p1"><span class="s1">Why is it so? One reason, probably the biggest single one, is that real estate markets are largely driven by local economic conditions – not by national factors like interest rate levels or taxation policies, but by what’s happening in the economy at a local level.</span></p>
<p class="p1"><span class="s1">This helps to explain why Sydney and Melbourne, underpinned by the No.1 and No.2 economies in the nation, have had booms while the cities afflicted by the weakest of the state/territory economies, Perth and Darwin, have had markets in reverse.</span></p>
<p class="p1"><span class="s1">When economies rise, the first people to notice are those in the business community – the ones earning the most money. They react before anyone else does and they tend to live in the millionaire suburbs. Those markets rise first and others follow over time.</span></p>
<p class="p1"><span class="s1">When you get towards the end of the cycle, those early adopters have passed their peaks and it’s the cheaper areas on the fringes that are experiencing the busiest markets and the strongest annual price growth.</span></p>
<p class="p1"><span class="s1">So, according to the recently-published CoreLogic figures, it’s overly simplistic to claim that Melbourne house prices are falling. CoreLogic’s analysis says that prices in the upper end of the market are down 3.5 percent (generally speaking), but prices at the affordable end are up more than 10 percent.</span></p>
<p class="p1"><span class="s1">This correlates with Hotspotting research which indicates that the outer-ring precincts in the Greater Melbourne area – suburbs in LGAs like Hume, Whittlesea, Casey, Melton and Wyndham – have strong sales activity and price growth. And this is what we would expect at this point in the Melbourne cycle.</span></p>
<p class="p1"><span class="s1">There’s a similar scenario in Sydney – the upper end price levels generally are falling but there’s still some growth in the cheaper outlying areas.</span></p>
<p class="p1"><span class="s1">The pattern for Hobart is interesting and informative, because it suggests that the Tasmanian capital is still pumping but that the peak might be near. The top end of the Hobart market is still rising (up almost 10 percent) but the cheaper end is up a lot more (around 18 percent, according to these figures).</span></p>
<p class="p1"><span class="s1">That suggests the market overall is still strong but the lower end is the strongest.</span></p>
<p class="p1"><span class="s1">In terms of how all this informs the future, Perth is a good case study. When I recently looked at all the numbers for Perth, one of the things that stood out was that many of the million-dollars suburbs had recorded good growth in their median house prices but elsewhere this was not the case.</span></p>
<p class="p1"><span class="s1">The CoreLogic figures would tend to confirm that, because they find that the upper end has risen but the cheaper end is still slightly in the negative.</span></p>
<p class="p1"><span class="s1">This, taken with other information, confirms for me that Perth is moving into a recovery phase in response to improvements in the local economy – and, as I would expect, the upper end areas are the first to react.</span></p>
<p class="p1"><span class="s1">I’ve seen evidence of a similar scenario in Adelaide, with many of the top end suburbs showing good annual price growth, ahead of what I expect to be a strong showing by the Adelaide market generally in the next 12-18 months.</span></p>
<p class="p3"><span class="s2">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s3"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s2"><em>twitter.com/hotspotting</em></span></p>
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Pinpointing where house values are rising and where they are falling

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<p>Looking at data for the 50 most populous non-capital city council areas, the majority of them have seen house and unit values increase over the 12 months to May 2017. </p>
<p>The data indicates that after a long period of soft housing market conditions following the financial crisis, housing demand is starting to pick up across many of the larger regional areas. </p>
<p>Those areas that are continuing to see values fall are in many instances linked to the mining and resources sector.</p>
<p>Of the non-capital city council areas analysed, the Wollongong council area is the most expensive for houses ($730,427) and units ($530,170) as well as having seen the greatest increase in house values and the fourth highest increase in unit value over the past year. </p>
<p>The Wollongong housing market has seen housing demand rise as demand ripples away from Sydney where affordability constraints are more pressing. </p>
<p>Additionally, prices are being pushed higher as more people seek out coastal and lifestyle properties.</p>
<p>In New South Wales in particular, regional areas of the state, particularly those reasonably close to Sydney are generally seeing strong value growth. </p>
<p>This is most likely linked to affordability relative to Sydney as well as Sydney home owners using the equity in their home to purchase investment properties in lifestyle markets.</p>
<p>The regional areas of Victoria, particularly those close to Melbourne, are experiencing value growth however, it is nowhere near the magnitude to which values are growing in those locations close to Sydney. </p>
<p>Although values are rising, the relatively softer growth can be linked to the fact that values have not risen as sharply in Melbourne as they have in Sydney and subsequently affordability hasn’t deteriorated as severely in Melbourne.</p>
<p>Queensland’s results are somewhat more mixed with the south-east corner generally seeing values rise while elsewhere growth is extremely mild or values have fallen.</p>
<p>Click to enlarge </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/2017/06/29/2017-06-23--pp1.jpg" alt=""></p>
<p>In fact, the Gold and Sunshine Coasts and Noosa are seeing more rapid value growth than Brisbane is. </p>
<p>It seems as if a lot of demand across these regions is coming from the accelerating internal migration to Queensland and buyers from Sydney and Melbourne that have substantial equity in their homes and are looking for lifestyle properties.</p>
<p>Of the areas that we looked at, each of the 24 regions we highlighted in New South Wales have recorded value growth for houses over the past year. </p>
<p>For units, only 4 of the 24 regions have recorded value falls over the past 12 months.</p>
<p>In Victoria we highlighted 10 regional council areas in the analysis. </p>
<p>Of these regions analysed, two recorded value falls over the year for houses and 2 regions also recorded falls for unit values. </p>
<p>Greater Shepparton was the only council area of the state which recorded value falls for houses and units.</p>
<p>Of the 13 regions highlighted for Queensland, five have recorded value falls for houses over the past year and seven have recorded declines for units.</p>
<p>Each of the regions highlighted in Western Australia have recorded value falls over the past year for houses and units.</p>
<p>Launceston was the only region analysed in Tasmania and it has seen house and unit values rise over the past year. </p>
<p>It should be noted while values have increased they have done so at a more moderate pace than those in Hobart.</p>
<p>Overall it seems that housing demand in regional areas of the country is rising. </p>
<p>While many regions are seeing value increase, the strongest demand appears to be in those areas within relatively close proximity to capital cities, particularly those which are coastal and tap into lifestyle demand.</p>
<p>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</p>
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