<p>Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.</p>

<p>Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.</p>

<p>The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372212]</p>

<p>Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.</p>

<p>"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.</p>

<p>"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372227]</p>

<p>Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.</p>

<p>A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.</p>

<p>The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.</p>

<p>Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372225]</p>

<p>While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.</p>

<p>The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.</p>

<p>The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.</p>

<p>[smartcode_project:default project_id=146717 project_image_fid=372222]</p>

<p>The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.</p>

<p>Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.</p>

<p>"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.</p>

<p>The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.</p>

<p>The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.</p>

<p>Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.</p>

<p>"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.</p>

<p>"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."</p>

<p>Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.</p>

<p>[smartcode_project_cta:default project_id=146717]</p>


Joel Robinson

Lowe Living launches Jardin House in Camberwell

<p>As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.</p>

<p>Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.</p>

<p>At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6395]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.</p>

<p>Rothelowman says the site itself shaped much of the architectural response.</p>

<p>“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6399]</p>

<p>Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.</p>

<p>The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.</p>

<p>Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.</p>

<p>“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=353235]</p>

<p>A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.</p>

<p>The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.</p>

<p>The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.</p>

<p>[smartcode_project:default project_id=134323 project_image_fid=6390]</p>

<p>“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”</p>

<p>At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.</p>

<p>ALAND has commenced construction, and is expecting a completion date in 2028.</p>

<p>[smartcode_project_cta:default project_id=134323]</p>


The Walden pairs house-scale living with North Sydney connectivity

<p>The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.</p>

<p>The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.</p>

<p>"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=350986]</p>

<p>The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.</p>

<p>The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.</p>

<p>New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.</p>

<p>While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.</p>

<p>The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.</p>

<p>The latest reform removes one of the final barriers facing first home buyers in Canberra.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=359152]</p>

<p>The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.</p>

<p>Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.</p>

<p>From July, those restrictions disappear.</p>

<p>Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.</p>

<p>Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.</p>

<p>Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.</p>

<p>"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.</p>

<p>"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.</p>

<p>"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."</p>

<p>Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.</p>


15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

<p>A rooftop pool and spa overlooking the Brisbane CBD, private dining spaces, expansive landscaped gardens and a residents' lounge are set to crown <a href="https://www.apartments.com.au/new-apartments/callista-on-park-west-end-49-mollison-street-west-end-qld-4101">Callista on Park</a>, the final residential building within Brisbane's West Village precinct.</p>

<p>The rooftop amenity collection has been designed as an extension of the lifestyle already established throughout West Village, providing residents with a series of indoor and outdoor spaces that capitalise on the building's elevated position above West End.</p>

<p>A swimming pool and heated spa form the centrepiece of the rooftop offering, surrounded by landscaped gardens developed through a collaboration between developer Sekisui House and ASPECT Studios. The design incorporates expansive lawn areas surrounded by English garden-inspired planting.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=370648]</p>

<p>Residents will also have access to two barbecue and outdoor dining areas positioned to take advantage of views across Brisbane's skyline, neighbouring Mollison Park, and the surrounding inner-city landscape.</p>

<p>For larger gatherings, the rooftop includes a private dining room centred around a substantial stone island bench, complete with a full kitchen and a 10-seat dining table set beneath four-metre-high ceilings. The space has been designed to overlook both the rooftop gardens and the Brisbane CBD skyline.</p>

<p>A separate residents' lounge provides an additional indoor retreat connected to the broader rooftop amenity offering, creating another space for residents to work, relax or entertain guests.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=370647]</p>

<p>The attention to detail extends beyond the rooftop.</p>

<p>Upon arrival, residents will enter through a lobby featuring a bespoke ceiling light installation developed in collaboration between Sekisui House and Alcorn Middleton Architecture. The arrival experience is complemented by private resident mailboxes and carefully considered interior finishes designed to reflect the premium positioning of the building.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=372541]</p>

<p>The amenity offering forms part of Callista on Park, the final residential release within the decade-long transformation of the former Peters Ice Cream Factory site into West Village, one of Brisbane's most established mixed-use communities.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and being delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a>, Callista represents the most premium residential offering within the masterplanned precinct.</p>

<p>Construction is now entering its final stages, with scaffolding beginning to come down and completion expected in the first quarter of 2027.</p>

<p>Prices for the three-bedroom plus MPR apartments start from just over $2.6 million.</p>

<p>[smartcode_project:default project_id=134800 project_image_fid=351535]</p>

<p>Callista will mark the final opportunity to purchase within West Village, where residents have direct access to more than 35 retail, dining, wellness and medical operators including Harris Farm Markets, Woolworths, Function Well and Goodlife Health Clubs, Metro Arts, and a growing collection of restaurants and cafés.</p>

<p>Located just 800 metres from the Brisbane CBD, the precinct also places residents within walking distance of South Bank, West End's dining scene, riverfront parklands and major public transport connections.</p>

<p>For Sekisui House, which has delivered more than two million homes globally, Callista serves as the concluding piece of the West Village masterplan, bringing together the precinct's heritage character, parkland setting and emphasis on walkability in a final collection of larger-format residences.</p>

<p>[smartcode_project_cta:default project_id=134800]</p>


Rooftop pool, private dining and skyline gardens to crown West Village's final apartment release, Callista on Park

<p><a href="https://www.apartments.com.au/developments/wahroonga-nsw-2076">Wahroonga</a>’s enduring appeal has long been tied to its balance of bushland, established amenity, and access to some of Sydney’s most respected education and healthcare institutions.</p>

<p>Along Fox Valley Road, that combination is becoming increasingly sought after by buyers looking to remain connected to the Upper North Shore lifestyle while prioritising walkability, wellbeing, and convenience.</p>

<p>Developer Capital Corporation's initial vision of a 62-hectare site on Fox Valley Road was that they could create their own walkable community, bordered by&nbsp;more than 25 hectares of bushland and adjoining Coups Creek.</p>

<p><img alt="Wahroonga" data-entity-type="file" data-entity-uuid="b84917a1-0d75-49b9-888c-ddf7ebfd6692" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/NEW2026_Wahroonga_Walkway.gif?VersionId=Gk3_xi5ssYfalmwuQQ5umQakddceC31j" /></p>

<p><a href="https://www.apartments.com.au/new-apartments/the-residences-at-wahroonga-estate-169-fox-valley-road-wahroonga-nsw-2076">The Residences at Wahroonga Estate</a> draws directly on the area’s natural landscape, with walking trails and green corridors linking into sections of Lane Cove National Park. The surrounding network of bushwalks, cycling tracks, and reserves reinforces the suburb’s long-standing reputation as one of Sydney’s most nature-oriented residential pockets, while still maintaining close ties to village retail and transport infrastructure.</p>

<p>The address places residents within minutes of Wahroonga and Turramurra villages, where cafés, local grocers, boutiques, and everyday services support a highly localised lifestyle. Popular nearby venues including The Fox Café and Breeze Valley Café provide easy options for morning coffee or casual dining, while longstanding retailers such as IGA Wahroonga Fresh and Novella Fine Books continue to anchor the area’s village character.</p>

<p>&nbsp;</p>

<p><img alt="Wahroonga" data-entity-type="file" data-entity-uuid="c4a950f7-4f05-4370-b360-b106359788e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/2026_Wahroonga_Entry_Gates.gif?VersionId=7n5kh9ymu.azYEYDemJkPgiIAfSw44oj" /></p>

<p>Healthcare access remains one of the defining locational advantages of the estate. Sydney Adventist Hospital, known locally as The San, sits directly adjacent and is one of the largest and most respected private hospitals in New South Wales. The hospital precinct incorporates specialist medical services, radiology, physiotherapy, and outpatient care, contributing to growing buyer demand from downsizers and owner-occupiers seeking long-term convenience and peace of mind.</p>

<p>Research commissioned by Capital Corporation found that health and wellbeing considerations are increasingly influencing downsizing decisions, particularly among buyers wanting to remain within familiar neighbourhoods while accessing medical infrastructure more easily.</p>

<p>Education has also historically underpinned demand across Wahroonga and the broader Upper North Shore. The estate sits close to several of Sydney’s leading private and independent schools, including Knox Grammar, Abbotsleigh, Barker College, Pymble Ladies’ College, Ravenswood School for Girls, and Loreto Normanhurst. Co-educational options including Wahroonga Adventist School and Sydney Adventist School further strengthen the area’s appeal to established families looking for long-term schooling pathways within a tightly held catchment.</p>

<p>[smartcode_project:default project_id=135247 project_image_fid=262183]</p>

<p>Transport connectivity supports the suburb’s liveability without compromising its quieter residential character. Wahroonga and Turramurra train stations provide direct rail access into the Sydney CBD, while the nearby Pacific Highway and M1 motorway strengthen links across the North Shore and broader metropolitan area. At the same time, the heavily treed streetscape and low-density character continue to distinguish the precinct from more urbanised parts of Sydney.</p>

<p>The Residences at Wahroonga Estate forms the first stage of <a href="https://www.apartments.com.au/developers/capital-corporation">Capital Corporation</a>’s broader masterplanned vision for the precinct, delivered alongside the Seventh-day Adventist Church.</p>

<p>[smartcode_project:default project_id=135247 project_image_fid=364995]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/coco-republic-interior-design">Coco Republic</a>, the development integrates landscaped communal spaces including a pet-friendly Green Spine, resident lounge, BBQ pavilion, and direct bushland access, reinforcing the project’s focus on outdoor connection and community-based living.</p>

<p>Now under construction by Gold Star iCIRT-rated builder <a href="https://www.apartments.com.au/builders/dasco-australia">DASCO</a>, The Residences at Wahroonga Estate will deliver a collection of one, two, and three-bedroom apartments priced from $990,000, with completion anticipated in 2027.</p>

<p>[smartcode_project_cta:default project_id=135247]</p>


Capital Corporation to cater to Upper North Shore downsizers by creating walkable community at The Residences at Wahroonga Estate

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


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

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<p><span>I recently spent a bit of time charting the death throes of the resources construction boom. </span></p>
<p><span>As you can see below, although the Northern Territory has been offered a temporary reprieve by the massive $34 billion Ichthys LNG project, engineering construction activity has been hit extremely hard almost everywhere else, particularly so in Western Australia (down by 24 per cent over the past year), Queensland (-38 per cent) and South Australia (-25 per cent).</span><span style="line-height: 1.3em; font-weight: bold;"> </span></p>
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<span>Moreover, despite a year-on-year decline of </span>more than 20 per cent<span> the downturn has miles to run yet before construction activity even gets close to its historical norm. The value of work commenced points to an accelerating decline.</span>
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<div><span>Moreover, with the Commodity Price Index having continued to weaken, we could easily overshoot to the downside, which terms-of-trade booms in Australia have historically tended to do.</span></div>
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<div>Given that the construction stage tends to be comfortably the most labour-intensive phase of resources projects, this must inevitably result in sharply declining demand around many regional areas of Australia.<br><br><strong><span style="text-decoration: underline;">Vacancies rising in resources capitals</span></strong><br><br>On a related note <em>SQM Research</em> released its latest July 2015 Vacancy Rates and asking rents data yesterday.</div>
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<div>Vacancy rates nationally held steady at <strong>2.4 per cent</strong> but the figures revealed a significant divergence between the resources capital cities and the rest.</div>
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<div>As you can see in the chart below, moving from left to right vacancy rates remain relatively tight in Hobart (1.2 per cent), Sydney (1.8 per cent) and Adelaide (1.9 per cent).<br><br>Hobart's vacancy rates have tightened over the past year from 1.5 per cent to 1.2 per cent despite a near total dearth of population growth - if you think carefully about it, you may come to your own conclusions as to why - while Sydney's vacancy rate of 1.8 per cent is unchanged from one year ago.<br><br>Brisbane city-wide vacancy rate is now recorded as being 2.6 per cent, and in fact in a number of apartment construction hubs vacancy rates are already considerably higher than that. </div>
<div> </div>
<div>Shifting across towards the right hand edge of the chart Darwin is now tracking at an elevated 3.5 per cent having spiralled from just 1.4 per cent a year ago.<br><br>Meanwhile vacancy rates in Perth have blown all the way out from 2.5 per cent in July 2014 to 3.8 per cent.</div>
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<div> </div>
<div>
<strong><span style="text-decoration: underline;">Asking rents follow vacancies</span></strong><br><br><span>Also reported in the </span><em>SQM</em> media release<span> was a massive 20.5 per cent fall in asking rents for houses in Darwin, as well as 15.2 per cent decline in asking rents for Darwin units.</span><br><br><span>Over the past year asking rents have also declined in Perth for both houses (-7.4 per cent) and units (-6.3 per cent), according to </span><em>SQM</em><span>'s index.</span><br><br><span>Of course, vacancy rates are expected to rise at this stage in the construction cycle, but it may take Perth and Darwin quite some time to absorb the excess stock.</span>
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<div> </div>
<div>
<strong><span style="text-decoration: underline;">Mining towns crushed</span></strong><br><br><span>This capital city market action is of course small fry compared to what is playing out in resources regions.</span><br><br><span>Following on in sympathy from an epic property crash in the Pilbara, the </span><em>Australian Financial Review</em><span> </span>reported<span> that investors in the Bowen Basin heartland are being sent broke with dwelling prices continuing to collapse dramatically.</span><br><br><span>Property prices in Moranbah have reportedly crashed by up to 70 per cent over the past three years, while prices in Dysart prices have crashed by closer to 50 per cent over the same period.</span><br><br><span>Instead of linking back to articles which promised untold riches from investing in mining towns, it is worth considering the two golden rules which nearly all of the most successful investors follow religiously:</span><br><br><strong>Rule 1 - Don't lose money.</strong><br><strong><br></strong><strong>Rule 2 - See Rule 1.</strong><br><br><span>When it comes to property investment, there is no easy way back from a 50 per cent drawdown, particularly if leverage is used.</span><br><br><span>Remember that the promise of higher returns often comes with correspondingly higher risks. </span>
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<div><span> </span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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SQM foreshadows mining downturn: Pete Wargent

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<div>One of the most notable aspects of this building approvals boom has been that it has been focussed on the building of high density housing to an unprecedented extent.</div>
<div> </div>
<div>If you want capital growth from property then I suggest that you should be wary of high rise stock since proportionately far too much of it is has been approved.</div>
<div> </div>
<div>Approvals in most instances do now seem to be pulling back, but the approvals pipeline has seen 4+ storey dwellings pushed through this cycle to date in unprecedented volumes.</div>
<div> </div>
<div>In August the number of approvals pulled back in Victoria from 1,766 to as the new <a href="https://petewargent.blogspot.co.uk/2015/09/building-approvals-boom-passes-peak" target="_blank">levy</a> takes effect, but the 12mMA trendline tells its own story...</div>
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<div><img src="/images/2015/09/30/HR1.jpg" alt=""></div>
<div> </div>
<div><span>In Queensland the number of 4+ storey dwelling approvals at 895 in August was well below the extraordinarily high volumes approved in 7 of the preceding 9 months, and the trendline peak now seems to be in...</span></div>
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<div><span><img src="/images/2015/09/30/QLD.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Being home to the largest capital city, New South Wales has typically approved the greatest number of high rise apartments, although here too approvals fell from an elevated 3,431 to 1,887 in August...</span></div>
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<div> </div>
<div> </div>
<div>
<div>Overall it seems that the great flood of approvals of high rise apartments is now easing as developers take note of the looming oversupply.</div>
<div> </div>
<div>The problem with the highest density tower blocks for investors is simply that there is no inherent scarcity value. </div>
<div> </div>
<div>Pass.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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The high rise apartment glut: Pete Wargent

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<p>We would all love a dollar every time the words “tax reform” have been mentioned over the past decade with countless inquiries and white papers presented where no reform ever eventuated.</p>
<p>So it was most interesting to see Prime Minister Malcolm Turnbull and freshly appointed Treasurer Scott Morrison flagging tax reform, income tax cuts and housing affordability again, much like that broken record of their many predecessors.</p>
<p>Yes the Australian economy has its fair share of problems much like the rest of the developed countries across the planet where the common problem is that they are their own worst enemies. The last major tax reform in Australia was the introduction of the GST back in 2000 where 15 years on the taxes and duties that were promised to be removed still remain in place. So it should come as no surprise that the NSW Premier Mike Baird is leading the debate on the GST being increased to 15 per cent.</p>
<p>Back in February 2015 I wrote about abolishing payroll tax to kick start the economy, so high on Malcolm Turnbull’s to – do list should be the abolition of payroll tax on the basis that each business then injects into their business over the next financial year the amount previously paid in payroll tax.</p>
<p>At last month’s Australian Financial Review Tax Reform Summit Malcolm Turnbull effectively put superannuation tax, negative gearing and capital gains tax concessions back on the discussion table. Respected economist Saul Eslake referred to Australia’s tax system as being a “giant Swiss cheese” riddled with holes that allow the wealthy to pay less tax through minimisation strategies. Based on those observations we can expect an intense debate in coming months where previous governments chose to side – step these issues as they were too contentious. We also need to bear in mind that we are approximately twelve months out from a federal election – so how will such a debate go down with voters?</p>
<p>Current Australian Bureau of Statistics projections have the Australian population growing at approximately 4 million people per decade, which places Australia with the fastest rate of population growth in the developed world. Sydney and Melbourne can expect an additional 100,000 new arrivals annually for the next 40 years which in itself requires massive planning although this may further explain the recent Federal portfolio announcement creating the Cities and Built Environment portfolio.</p>
<p>So now Australia’s tax reform discussion has begun in earnest although given the sheer magnitude that explains why this debate has been deferred for decades. Prior to the next Federal Election we can expect to be inundated with discussion groups and scare campaigns although nothing will really happen (if we do get tax reform) until the 2019 Federal Election given such reforms take years to plan then execute.</p>
<p>In the meantime if we are looking for clues we should note with interest that Scott Morrison has just appointed Phil Gaetjens as his chief of staff which should not be too much of a challenge as he was Peter Costello’s chief of staff from 1997 to 2007. Yes one of the key architects for the GST introduction 15 years ago so it really doesn’t require much joining of the dots to see what picture will appear on the canvas.</p>
<p>Although this time around if there is to be any reform the Australian voters will demand that the states and territories commit to honoring their word when it comes to removing taxes and duties in lieu of increasing the GST to 15 per cent. Somehow many are of the opinion that the states and territories will never agree to take payroll tax and stamp duties from their respective cash registers.</p>
<p>‘<br>The tax reform debate really needs to start at Commonwealth Heads of Government Meeting and wouldn’t you love to be a fly on the wall when the Prime Minister and Treasurer outline their bold tax reform agendas.</p>
<p>In NSW we are witnessing the amalgamation of councils because the state government is not happy with them, believing amalgamation will lead to more developments (land tax and stamp duties) – which it certainly will. So with Australia’s biggest ever tax reform finally now plated up on the table they might as well look at the three – tier – governments too.</p>
<p>Make that two as the council amalgamations have already been decided – just not announced.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 61</p>
<p>• Number of houses on the market last week – 51</p>
<p>• Number of houses on the market this week – 48</p>
<p>• Number of apartments on the market this time last year – 41</p>
<p>• Number of apartments on the market last week – 52</p>
<p>• Number of apartments on the market this week – 60</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 8</p>
<p>• Number of houses on the market last week – 5</p>
<p>• Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year – 19</p>
<p>• Number of apartments on the market last week – 21</p>
<p>• Number of apartments on the market this week – 23</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 5</p>
<p>• Number of houses on the market last week – 7</p>
<p>•Number of houses on the market this week – 9</p>
<p>• Number of apartments on the market this time last year– 43</p>
<p>• Number of apartments on the market last week – 28</p>
<p>• Number of apartments on the market this week – 21</p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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Times change, sadly politicians haven’t: Robert Simeon

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<p>The NRL and AFL grand finals, combined with a long weekend across many states last week saw auction activity take a backseat, however, this week auction volumes have more than tripled, with 3,062 residential properties going to auction across the combined capitals.</p>
<p>This week will be the third busiest for auctions across <strong>Melbourne</strong> this year, with 1,411 homes being taken to auction, compared to just 98 last week and 1,123 at the same time last year. Similarly, for <strong>Sydney</strong>, Australia’s second largest auction market, volumes will increase this week, with 1,230 auctions scheduled, up from 583 last week and 918 over the comparable week last year.</p>
<p>In all other capital cities, the number of auctions this week will also increase and volumes in each of the cities are higher relative to last year. There are 129 auctions in <strong>Adelaide</strong> this week, compared to 33 last week and 115 at the same time last year. <strong>Brisbane</strong> will be host to 186, the busiest week for the city since May this year, while there are 65 <strong>Canberra</strong> auctions scheduled and 34 across <strong>Perth</strong>.</p>
<p>In terms of the latest clearance rates, clearance rates fell further last week, down to 68.2 per cent across the combined capital cities, with Sydney recording a clearance rate below 70 per cent for the first time this year (69.9 per cent). With the increase in auction volumes this week it will be interesting to see how the clearance rate performs.</p>
<p>Mount Waverly in Victoria is host to 31 auctions this week, the highest number of auctions in any one Australian suburb. Following this is Reservoir (Vic) with 25, Glen Waverley (Vic) with 21, Mosman (NSW) and Northcote (Vic), both with 18.</p>
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Buzz across the capital city auction markets: CoreLogic RP Data's Shana Miller

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<p>CoreLogic-RP Data<span> reported a rebound in preliminary auction clearance clearance rates, with increases in Sydney (to 72.8%), Melbourne (74.1%), and Brisbane (59.4 %).</span></p>
<p><a href="/images/2015/10/12/A1.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/10/12/A1.jpg" alt=""></span></p>
<p><span>The trend in Brisbane improved slightly from 59.1% last week and 48.8% one year ago.</span></p>
<p><a href="/images/2015/10/12/A2.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/10/12/A2.jpg" alt=""></span></p>
<p><span> </span></p>
<div>Sydney's preliminary clearance rate of 72.8% from an elevated number of 1,141 auctions remained strong, but the market is clearly now a two-speed affair with the western suburbs, north west and south west all having slowed in recent weeks.</div>
<div> </div>
<div>The northern beaches recorded the strongest clearance rate this weekend (88%), with the eastern suburbs (85.5%) and city &amp; inner south (81.9%) all recording strong results.</div>
<div> </div>
<div>The eastern suburbs have proven to be particularly strong performers of late.</div>
<div> </div>
<div>Most properties with a Bondi tagline continue to sell well, while Bronte, Clovelly, Coogee, Darling Point, Maroubra etc. also remain rock solid...</div>
<p><a href="/images/2015/10/12/A3.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/10/12/A3.jpg" alt=""></span></p>
<p> </p>
<p><span>The real blockbuster sales this weekend, however, were seen on the lower north shore, specifically </span>in Chatswood<span>, with the previous suburb record being swept away...twice.</span></p>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Auctions on the rebound: Pete Wargent

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<p>I was interviewed for a great story in one of the property magazines, the article was called Keep and Reap and it examines the pros and cons of holding onto property after you finish developing it.</p>
<p>One of the biggest things to consider before you start a development is entry and particularly exit costs - if you are developing to sell.</p>
<p>Around the same time I received a call I had from a guy called Dave.  He said ‘Hi Jo, can you help me with a dual occupancy project’.  To that I replied...’sure Dave, we’d love to. Tell me a bit about your strategy and what you are hoping to achieve from a property development’. </p>
<p>'Well, my wife and I want to turn over a few developments, you know...complete one, sell and then use the profits to go again. Our aim is to use the proceeds to pay down the mortgage on our principal place of residence and keep investing’.</p>
<p>Dave certainly has a very good plan. As property development project managers, we are not qualified to give accounting or financial advice, but what I do like to check with anyone making this kind of enquiry is that they understand what <em>selling or exit costs</em> are involved.</p>
<p>Dave said he understood there’ll be agent’s selling commission and marketing costs to sell the new villas, we might have to pay some Capital Gains Tax and that’s it I think’. He said.   </p>
<p>My reply...’Are you sure Dave?’</p>
<p>If you take a look at the exit costs, then you may think twice about selling on completion, especially if it’s a small development like a dual occupancy.</p>
<p>In the Hunter Region of NSW where we manage developments for our clients, we can typically create around one hundred thousand dollars in equity on a dual occ project within twelve months. This sounds like a lot of equity to create and it is...if you are holding the properties you’ve built.</p>
<p>By holding on completion you'll not only get the benefits of depreciation and higher than average rental returns (everyone loves to rent a brand new property) but some clients choose to refinance and by doing this they can access some of the equity that’s been created through the development process.</p>
<p>But, if you are looking to sell on completion, then there is a whole list of costs you need to consider.</p>
<p>The big one is GST and as I explain this to Dave, I highly recommend he checks this out closely with his accountant.  GST is applicable when you sell new property, so Dave would need to ensure he pays 10% of his selling cost to the government. If he is not registered for GST, he can't claim back the GST he's paid over the life of the development so he's essentially losing 10% on his sales. However, if he holds the properties for five years, they are no longer deemed new and no GST is applicable.</p>
<p>Finance costs are another cost to consider. Dave needs to check with his lender what fees and charges may be applicable when he sells, these may include a prepayment fee, settlement fee, early exit fee or Government mortgage discharge fees.</p>
<p>There will be legal fees for your solicitor to prepare Sales Contracts and manage the conveyancing for you.</p>
<p>In some instances, Land Tax may also be payable on a property that is being sold.</p>
<p>Then of course, the sales agent's commission, marketing costs and perhaps auctioneer costs.</p>
<p>Also consider the holding costs. During the sales process you probably won't rent the villas and they'll be sitting empty on a fully drawn construction loan.</p>
<p>One of the advantages to holding and renting the properties on completion is that the interest you pay during the development process is tax deductible. However, if your intention is to sell on completion then you lose this important deduction during construction but also during the selling period.</p>
<p>I recommended Dave have a meeting with his accountant to make sure he understood the implications of selling.  A few weeks later, he called to tell me he's switched strategy and wanted to hold onto his properties. One of his reasons was to take advantage of the higher depreciation benefits and he wanted to build a property portfolio. His accountant showed him just how much income tax he could save himself as he was in a high tax bracket.</p>
<p>It wasn't long before we had found him a great site in Newcastle with a potential gross yield of 7%. This strong yield will make it easier for Dave to hold and continue on his property investment journey.</p>
<p>By going through the exercise of weighing up the pros and cons of holding, it helped Dave realise that if you are going to the trouble to develop property in the right location, you may as well hold to reap the immediate and future rewards. </p>
<p> </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Is it really worth selling on completion? Jo Chivers

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<p>Ipswich, once the capital growth leader for the Brisbane metropolitan area and a favourite target for property investors from around Australia, is mounting a comeback after three years in the doldrums.</p>
<p><span>Up until 2013, Ipswich City dominated the growth rankings for Greater Brisbane. In a report early in 2013, I wrote: “</span><span>I</span>pswich City is the capital gains star of the Brisbane metropolitan area. The municipality which encompasses the south-western fringe of the Greater Brisbane area has the top five suburbs for long-term capital growth. It has eight of the top 10 - and 15 of the top 25 suburbs.”</p>
<p>At that time, virtually every suburb of Ipswich had a long-term growth rate (average annual growth in median prices over the previous 10 years) above 10% per year. It had attracted home-buyers in large numbers and investors seeking affordable prices and above-average rental yields.</p>
<p>Today, after three down years, the same suburbs have long-term growth averages in the 4-5% range.</p>
<p>But the comeback has started, with the first compelling evidence seen in the latest quarterly figures. Hotspotting analysis of sales volumes shows that Ipswich City has belatedly joined the overall positive trend in the Brisbane market. The LGA now has eight suburbs with clear growth trajectories – double the number in the previous survey three months ago.<span style="line-height: 1.3em;"> </span></p>
<p>Brisbane’s real estate sector has been behaving quite differently to that in Sydney, where for much the past 2-3 years there has been double-digit price growth right across the metropolitan area.</p>
<p>In Brisbane, there has been growth in individual sectors, but it has not been widespread and the generalised growth figure for the city overall has been moderate at best. </p>
<p>The Brisbane North precinct was the first to get on a growth path about two years ago and many suburbs in that area recorded double-digit annual growth in median prices.</p>
<p>That market is no longer pumping to the same degree – sales activity has tapered off in most of those suburbs which were previously the market leaders of Greater Brisbane.</p>
<p>Now the southside has taken over. In our survey three months ago, Brisbane South was the market leader, with Logan City alongside. Now Logan City (the affordable urban bridge between Brisbane City and the Gold Coast) is the clear leader, with 18 growth suburbs, followed by Brisbane South with 13.</p>
<p>And starting to mount a challenge, well behind these other sectors in the cycle, is Ipswich City.</p>
<p>There was an inevitability about the Ipswich revival because this precinct ticks all the boxes. It is a perfect fit the “power combination” of factors that drives real estate markets – affordability plus infrastructure plus jobs nodes.<span style="line-height: 1.3em;"> </span></p>
<p>This area has a good supply of suburbs with median house prices in the $200,000s, ample land for future development, big government spending on infrastructure of all kinds, an ambitious and proactive council, and billions in investment from the private sector. </p>
<p>Many big businesses with major warehousing needs are based out there because the land is cheap and the transport links are good.</p>
<p>Entities involved in key current projects across Ipswich City include Mirvac, GPT, TNT Express, Devine, Lend Lease, Ramsay Health Care, the State Government, the Ipswich City Council and an array of major Asian companies.</p>
<p>As well as cheap entry prices, the area offers solid rental yields, typically in the 5.5% to 6% range.</p>
<p>Goodna is a fairly typical offering. It’s a modest but well-connected suburb, located on the Ipswich Motorway and the rail line to central Brisbane, close to multiple jobs nodes and not far from the extensive facilities of the Springfield master-planned community. It recorded 120 houses sales in the past year at a median price of $290,000 and median yield a little below 6%.<span style="line-height: 1.3em;"> </span></p>
<p>As the overall Ipswich City market rises, some suburbs are starting to deliver the kind of price growth that made Ipswich a capital growth star in the past. The suburbs of Ipswich, East Ipswich, Woodend and Yamanto have all had double-digit growth in median prices in the past 12 months, while others have grown between 5% and 10%.<span style="line-height: 1.3em;"> </span></p>
<p>I suspect it’s poised to return to the status that made it popular among bargain-hunting investors in the past.</p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
<p><em> </em></p>
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Brisbane's Ipswich mounting a property comeback: Terry Ryder

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<p>Finance has always been a key of the housing market, and as we have seen over the past few years, low interest rates have helped drive record demand and activity.</p>
<p>While this is not the most glamorous or interesting topic, finance is still a dominant part of the market.</p>
<p>Just a few years ago the suggestion that we might see 3+% for some of our home loan rates may have been unlikely, still today it’s a reality. (There are advertised rates of between 3.69% and 3.89% available for terms of 1-3 years.)</p>
<p>We are now seeing finance again in the main spotlight and there’s a lot going on that buyers need to be aware of and all the constant news about rates may be creating some confusion. As a result buyers entering the market could well be facing a dilemma, because on the one hand we still have record low interest rates, but we are also seeing the major banks move in one direction while smaller lenders move in exactly the opposite direction.</p>
<p>We also have APRA taking a hardline with the banks, while the RBA considers its next interest rate move and all of this commotion will possibly affect anyone looking for a loan, and that includes investors, SMSF and all owner-occupiers including first time buyers. Concerns being expressed by APRA might be unsettling or even seen as a negative, and so possibly causes buyers to be more cautious.</p>
<p>Against this background a number of Colliers International’s clients have recently introduced a special deposit offer based around a select number of projects with those clients accepting a 5% deposit, rather than the usual 10%.</p>
<p>The projects covered by this offer are Bay Pavillions – Lane Cove, Imperial – Hurstville, Atmosphere – Castle Hill, Altitude – Blacktown, The Chelsea – Kensington and 88 Alfred Street – Milsons Point. The offer has been well received in particular among buyers trading an existing property, where the costs of a move do mount up.</p>
<p>It’s not always possible to find $200,000- $250,000 as a cash deposit on a $2m plus apartment, and so the ability to exchange contracts on a 5% deposit has proved a popular idea, and similar offers are set to become more common.</p>
<p>Small Lenders Cut Rates</p>
<p>While the big four banks have recently increased their home-loan rates, ten smaller lenders last week cut some of their rates.</p>
<p>The cuts are for 1-3 year fixed mortgages rates, with cuts up to 74 basis points. This means that the gap between the highest standard variable rate and lowest 1-year fixed term is 260 basis points. It’s easy to appreciate why this is important when securing a $1 million mortgage.</p>
<p>It’s reasonable to expect that these cuts might spread as competition between lenders increases and institutions look to keep their customers and attract new ones. This competition usually involves a basket of products such as insurance, but is good news for buyers.</p>
<p>Still it does cause some head scratching as buyers weigh up the loans on offer and if the market slows other non-lender incentives may start to emerge.</p>
<p>The cuts by the smaller lenders are also a bet that they expect the Reserve Bank of Australia will make more rate cuts, or at least hold steady. Still while the prospect of an official interest rise looks very remote for some time, further cuts are not assured, because we may well be at the low point of the rates cycle. It remains common sense however that anyone looking for finance should do a lot of research and shop around for the best rate and terms.</p>
<p>Big Banks In Step With Rate Increases</p>
<p>The big four banks have all increased mortgage rates while the Reserve Bank of Australia is still expected to cut the cash rate, although this may roll over until 2016. And so where do the different banks now stand with their home loan rates?</p>
<p>ANZ Banking Group has raised interest rates by 0.18% points, its standard variable rate for owner-occupiers is now 5.56%, and for property investors 5.83%.</p>
<p>Westpac has increased its variable rate by 0.2% points. Commonwealth Bank has made a 0.15% point increase and National Australia Bank a 0.17% point increase.</p>
<p>These increases, although very modest, appear to have had the immediate effect on borrowers making them think twice about locking-in interest rates. The reason is that with rates so low on a pro-rata basis a further cut or increase of say 25 base points would be either a blow or a bonus for anyone on a variable rate.</p>
<p>One side result of all this jumping about with rates is that all lenders are also promoting incentives aimed at getting customers to switch between lenders with various cash and rebate incentives on offer. Borrowers can of course have a bet each way and combine fixed and variable rate, and this does appear to be a trend.</p>
<p>SMSF and Investors Face Controls</p>
<p>Tied up in this interest rate mix APRA has instructed the banks to reduce their lending to investors and SMSFs.</p>
<p>This move has had an immediate impact on demand from these two groups, and in part also introduced the requirement for bigger deposits. This tightening of lending restrictions has also seen some of the banks pulling out of this sector.</p>
<p>These changes come at a time when according to the ATO over the past two years there has been a more than five-fold increase in SMSF debt to about $15.6 billion.</p>
<p>The SMSF sector is larger and is estimated to have total assets of $562 billion currently under management and so changes among this group has the potential to impact demand for investment properties.</p>
<p>APRA Keeping Watch</p>
<p>All four banks have each blamed the recent home loan increases outlined on APRA’s requirement for them to hold more capital to cover each bank’s mortgage loan books, which now form a big chunk of their loans, with the extra funds earmarked as a potential buffer against any future financial shocks.</p>
<p>Still it’s the customer facing higher charges and in the housing market that always appears to be the case, as is demonstrated time and again with stamp duty.</p>
<p>APRA’s sharper surveillance of bank lending follows many years when the RBA had ascribed a positive view of the conservatism of Australia’s big banks, that view may have been relevant at the time, but now with so much exposure to the housing market possibly not now.</p>
<p>The tightening of bank lending standards since the global financial crisis has improved the underlying muscle of their loan books. This is an important result if adverse economic circumstances were to creep upon us again.</p>
<p>However a tighter rein on lending and a competitive interest rate outlook looks set to deflate any prospect of a housing bubble, which as demand softens now appears improbable, and that has to be seen as a positive.</p>
<p> </p>
<p><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></p>
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Finance back in the spotlight: Peter Chittenden

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<p>Last week one of my project managers used an interesting story to illustrate a point about being patient when developing property.   <span style="line-height: 1.3em;"> </span></p>
<p>Rich is a country lad brought up on a farm in rural NZ… no it wasn’t a sheep station. Lucky for me, he decided to ‘cross the ditch’ and settle in Australia to make his fortune in developing property in the Hunter Region of NSW. He was working with one of my builders when I discovered his expertise. It was some time later that we ended up working together. </p>
<p>The message from Rich’s story was simple – “Pushing too hard at the wrong time can cause problems rather than solutions.”  <span style="line-height: 1.3em;"> </span></p>
<p>The message came about whilst discussing how we could fast track lodgement of a particular Development Application.  As project managers I knew we were doing all we could.  I also knew that the other people involved; our builder and engineering consultants, were too.  We wanted to illustrate this to our client.  And then Rich sat down with a steaming cuppa in his hand and spun me a yarn.</p>
<p>I thought I’d share his tale because it made sense, even to a city gal like me.  Hope you enjoy it as much as I did...</p>
<p>Rich:  On the farm we never had a dog to move the cows into the milking shed. But our neighbours did and they were always in a hurry to get the milking done for the day. One day I asked Dad; “Why don’t we have a dog to chase the cows like our neighbours?” </p>
<p>He responded by saying, “Son, when a dog chases cows, by the time they arrive at the milking shed, they’re all nervous and tense because that dog has been snapping at their heels, barking and generally causing them grief. Because of this, those cows never milk for long and as a consequence, they don’t produce much milk.”</p>
<p>Rich explained that what those stressed out cows did was to produce a lot of crap. The cow manure mounted up quickly and ended up covering the shed while they stood waiting to be milked. <span style="line-height: 1.3em;"> </span></p>
<p>The neighbours with dogs always finished milking earlier than us, but spent more time cleaning up their milking shed at the end.  They produced very little milk. </p>
<p>When it was all washed up and done, we always finished around the same time as the neighbours. Although our cows milked longer, we had less to clean up and we always produced a lot more milk. </p>
<p>Relating this back to our property development situation, the bottom line was if we did things properly and not rush the procurement and planning stages of the process, the delivery and close out will move along smoothly and end up producing a better, more profitable ‘on time’ result. </p>
<p>My take out of Rich’s yarn: There are times for snappy dogs, but use them sparingly and intelligently. </p>
<p>Property Bloom understands the need for speed, as do our builders.  At the end of the day we all want to complete the project quickly.  But what we really want to ensure is a development that is well planned, delivered efficiently and on budget - and hopefully with very little crap to clean up at the end!</p>
<p><em> </em></p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Milking the property development process: Jo Chivers

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<div>The ABS released its Detailed Labour Force figures for October 2015 which provided further detail on the extraordinary rate of job gains in New South Wales, where employment has grown at an electric pace over the past year. </div>
<div> </div>
<div>Sydney recorded another strong month of gains and has created +85,000 positions over the year to October. Interestingly after a fairly dismal four years, the rest of the state has also created +51,000 new roles. </div>
<div> </div>
<div>Of Australia's other major labour markets Melbourne (+78,000) and lately the improving Greater Brisbane region (+43,000) have accounted for the bulk of new positions.</div>
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<div><a href="/images/2015/11/20/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/20/A1.jpg" alt=""></div>
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<div>By contrast over the past five years since October 2010 total employment in Adelaide has declined by 5,500.</div>
<br><strong><span style="text-decoration: underline;">Unemployment divergence</span></strong><br><br><div>Looking at capital city unemployment rates on a rolling annual basis shows that while unemployment rates are rising in Perth and Adelaide, elsewhere they have been declining.</div>
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<div><a href="/images/2015/11/20/A2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/20/A2.jpg" alt=""></div>
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<div>
<div>Sydney has been the king of employment gains in recent times, and as such recorded an unemployment rate for October of just 4.7 per cent across the Greater Sydney region.</div>
<div> </div>
<div>Over the past year some of the consistently lowest unemployment rates in Australia have been seen in Sydney's Northern Beaches (2.5 per cent), Eastern Suburbs (3.2 per cent), North Sydney &amp; Hornsby (3.7 per cent) and Inner West (4.3 per cent).</div>
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<div><a href="/images/2015/11/20/A3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/20/A3.jpg" alt=""></div>
<div> </div>
<div><span>At the other end of the scale the unemployment rate in Adelaide continues to trend up to well above 7 per cent, with further jobs losses subsequently reported in the month of November in the struggling state of South Australia.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/20/A4.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/20/A4.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>After a lift in unemployment as the resources capital expenditure boom passed its peak, Greater Brisbane has seen a pleasing improvement in its local economy.</div>
<div> </div>
<div>Employment gains have picked up to a solid pace and the rolling annual unemployment rate has trended down from 6.3 per cent to 5.9 per cent through this calendar year to date.</div>
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<div><a href="/images/2015/11/20/A5.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/20/A5.jpg" alt=""></div>
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<strong><span style="text-decoration: underline;">Mining regions suffer</span></strong><br><em><br></em><em>Commsec</em> put out a usueful reseach note which reported that mining regions - and coal mining regions in particular - have suffered, with jobless rates in the Hunter Valley and Mackay having broadly doubled.<br><br>This in itself comes as no great surprise - I predicted as much here on this blog 14 months ago.<br><br>Other regions with elevated levels of unemployment have included Wide Bay, Logan-Beaudesert, Adelaide North, Townsville, and Cairns.<br><br>The news for regional Australia is far from all bad, however.</div>
<div>
<br>While there is no doubt that many parts of regional Queensland are doing it very tough, there have been improvements in unemployment rates in the Wide Bay region, the Hunter Valley, Newcastle &amp; Lake Macquarie, and Geelong (and possibly several other regions, subject to the vagaries of sampling variability).<br><br>Indeed, after some ugly results early in the year the figures reported for regional unemployment have generally improved of late, so perhaps some of the mining fallout is now in the rear view mirror, as contractors migrate back to their respective capital cities.<br><br>That said, total regional employment growth outside New South Wales (and to some extent Queensland) has been weak, while new roles may also be lower paid than those which they replaced.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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