Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

Joel Robinson

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<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" />
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.

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.

[smartcode_project:default project_id=90059 project_image_fid=374075]

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.

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.

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.

[smartcode_project:default project_id=90059 project_image_fid=374059]

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.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"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."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"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."

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.

[smartcode_project_cta:default project_id=90059]

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

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<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.

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

<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" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“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;

“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."

Brown says the site itself is "exceptional."

"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.”

<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." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

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.

<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" />

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.

“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.

“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.

“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.”

<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" />

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.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

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

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

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One of the most commonly accepted wisdoms about property management is that landlords are price sensitive and that a business has to compete on fees.
I reject this outright. Before going into it, I ask that you first print out a copy of your management agreement and have a read of it with fresh eyes.
Most management agreements follow the same formula. Someone has gone off and read the legislation and faithfully copied out the fields that the law says must go into each agreement. For example, in NSW, an agent may specify whether or not the agency will do routine inspections, and whether they will disburse money to owners. The agency has to specify whether bills will be paid on the owner’s behalf.
Curiously, the fee section of the agreement is in another part of the agreement. It sits by itself, crammed into a corner. Most agents write “See Schedule X” and then copy out the standard agency fee card into that schedule.
Now, with these documents in hand, imagine you are a landlord negotiating the services your agency will provide. Imagine too that you have three different proposals from three different agencies.
We have ended up in a situation where the core document that sets out what you will do for a landlord is identical to every other agency. Of course, you and your competitors will have ticked all the required boxes. Yes, you will do inspections. Yes, you will disburse money. These are, in practice, non-negotiable. To a landlord, you’re all offering the same service.
Worse, the only part of the agreement that is subject to any negotiation is the fee card. No other part of the agreement can logically be changed or negotiated.
No wonder that landlords choose to negotiate fees – there is nothing else to discuss!
I believe we have been poorly served by these standard forms. They have set things up so that we are forced to negotiate on fees only. Much better to start again and negotiate service levels. You want daily disbursements? Fine, that will be more. You are happy with monthly disbursements? Fine, that will be less. You want three inspections a year? Fine, that will be an extra $50 per inspection. You want photos with the inspection? OK, that will be an extra $25 per inspection. Want us to pay your bills? No problem, that will be $1 per bill processed.
Each service you provide, and the level to which you promise to provide it, should be negotiated as a whole. It doesn’t make sense to negotiate fees without regard to the service level you promise. To do so just corrupts the whole negotiating process and leaves everyone worse off.
I believe the future of our industry will be unlocked when agencies move beyond fee cards and start designing genuine service packages that are tailored to the different types of landlords. Some landlords will want some services and will pay for them, others won’t. Each landlord will choose a service package that works for them.
I know this is the future for our industry because it has, or is happening, in every other service industry. I don’t know a restaurant that lets you order what you want but then charges everyone the same. I don’t know an airline that is afraid to charge more for a business class seat and then serve different food in each cabin. Why should it be any different for us?
How to move to this world? Start by throwing out the management agreement template you have and start again. Think about a logical set of service offerings that you can provide and price them to perceived value, not to cost. Be creative in the way you charge for services, and be prepared to move beyond a simple “percent of rent” fee that covers everything. And get rid of the fees and charges mentality.
Ben White is non-executive director at <a target="_blank" href="https://www.raywhite.com/">Ray White</a>. He will be presenting at the <a href="https://wealthconference.com.au/" target="_blank">Wealth Conference </a>on June 3 and 4 on the Gold Coast, a property management conference. 
 
 
 
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bwhite-5ofBWq32Cz

Property managers should offer different levels of service for different fees

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Getting into the property market for the first time is tough, there’s no doubt, but there are many factors impacting on why people view this as a major problem.
 
High expectations
Gen Y are living at home longer than ever before. They are saving longer and accruing bigger deposits. Interest rates are low. So why can’t they afford to buy? 
In many cases it’s not that they can’t afford to buy property, it’s that they can’t afford to buy what they want. Expectations are too high. Many people expect to be able to buy a reasonable property in a desirable location close to the lifestyle amenities they want. This, obviously, is very difficult. There is a sense of wanting to have it all straight away. Australian households are paying more than they can afford for housing, with more than 740,000 renters and over 380,000 mortgaged home owners reporting significant financial stress. Sometimes you just have to take baby steps. 
This aversion to moving out of the inner city (where the lifestyle amenities are) is going to lead to a generation of renters, and the Aussie dream of home ownership will be sacrificed for lifestyle. This of course, will push up rents because of the simple rules of supply and demand. 
More than 75% of Australians live in and around our major cities along the eastern and south-eastern coastal areas. And that’s where they want to stay. The limited land available in these locations, along with a growing population of buyers and immigrants, naturally puts pressure on Australia’s metropolitan prices.
Small will become the new big
That leaves two options: a bigger property in an outer-ring location, or a (much) smaller property that is more centrally located. Gen Yers are willing to sacrifice space for location, so will more and  more opt to live in high-density housing (apartments, etc.) that are located close to where they work and play than a bigger place further out.
Governments will need to help out
If affordability issues are pushing people to the ‘burbs, governments will need to create business activity centres where people can work close to home in the outer areas. Lack of infrastructure is still a problem in many outlying areas, and this is preventing people from wanting to relocate to outer-ring suburbs.
In addition, the federal government should be looking at introducing a flexible and secure savings scheme for first-home buyers that is tax free and places no limits on the entry or exit time frames and amounts held in the account. This would go a long way to assist first-home buyers.
Banks need to drop interest rates
Banks will also need to play their part in solving the affordability crisis. The Reserve Bank does its bit to keep rates low and try to stimulate the economy but it’s up to individual banks to pass on those rates to consumers. The GFC, the lending crisis in the US and the experience in parts of Europe have left our banking sector overly cautious when it comes to lending. It’s harder now to get a loan than it has been in a long while. Although I don’t agree with the former US approach of basically handing out an unsecured loan to anyone who asks, if lending criteria were loosened up a bit more people would be able to jump into the property market much more easily.
We have to remember, however, that overall, interest rates are a lot lower than they were 20 years ago. Gen Y didn’t live through that. They don’t understand the pressure of the threat of losing your family home to the bank. 
Housing isn’t that expensive
Speaking of the rest of the world, on international standards, housing is Australia is still relatively affordable. 
If affordability was a real issue, then why do we have so many investors continuing to buy up residential property?  Again, the issues lies with first-home buyers, not the market overall. 
Growth is good!
We want our economy to grow and we want our property market to grow with it. It’s good for the whole country. Many people are doing very well investing in property and will continue to do so. Ultimately, people need to lower their expectations, bite the bullet and start off with a property they can afford while still making a good purchase decision in terms of potential for capital growth. There are lots of great, affordable properties out there. You just need to be prepared to live in one of them!
Melissa Opie, aka “The Property Lady”, is  a multi-award-winning buyers’ advocate, bestselling author and managing director at <a href="https://www.kpi.net.au/">Keyhole Property Investments</a>.  The team at KPI act for investors and owner-occupiers Melbourne wide from $400,000 to $5,000,000. You can follow <a target="_blank" href="https://twitter.com/thepropertylady">“The Property Lady” on Twitter.</a>
 
 
 
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mopie-oqKqoZWZ7D

Housing is not too expensive, but Gen Y expects to have it all

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The Reserve Bank has come under fire from Channel 7 Sunrise host David Koch for not taking swifter action in response to the current challenging market conditions and plans by the federal government to deliver a surplus in the May budget.
“I’ve been a big fan of the Reserve Bank and the way it handled the global finance crisis.
“But I’m concerned the RBA board has been too slow in responding to the recent downturn,” says Koch in his latest blog post, written before the latest RBA minutes were released.
“If the federal budget is contractionary then interest rate settings have to be expansive to compensate.
“And they have to move quickly and decisively,” he says.
Koch has criticised the RBA despite naming Stevens as one of his “idols” in a list that includes Meriton boss Harry Triguboff, rap star Nelly and his own father.
Koch even includes a photo of himself smiling alongside a typically dour-faced Stevens, whom he describes as the “perfect type of person” to lead the central bank.
“The self-proclaimed ‘most boring person in Australia’, [Glenn Stevens] is the ultimate finance nerd. A man with immense intellect, he lives and breathes the job but is very conscious of the responsibility the role brings,” writes Koch on kochie.com.au.
According to Koch, the RBA cannot afford to be slow to react when the federal government is looking to cut spending in the next budget.
“The next six months could be a dangerous time for the economy and the financial health of Australians.
“Because if the federal government and the Reserve Bank don’t get it right, it could prove to be tipping point for the economy to slide in to a recession,” he says.
Kochie warns that there are signs that the resources boom is slowing (two consecutive months of trade deficits) and it “may not be able to offset the sluggishness of the lower speed sectors of the economy”.
Furthermore, he says, “consumers continue to borrow and spend less but save more as they continue to stay in the bunker”.
Figures released by the ABS today show that total lending finance fell by 6.5% in February meaning total lending commitments are up just 0.9% on a year ago after being up 3.5% in January.
According to CommSec economist Savanth Sebastian, the slump in lending seems to be gathering momentum.
“On a trend (smoothed) measure, the pace of lending has now fallen for five consecutive months with the 1.7% slide in February marking the biggest monthly fall since mid-2008 – a period that was at the height of the global financial crisis,” he says.
Sebastian says lending finance figures are a forward indicator of spending further down the track with the current lack of lending “clearly a dampener on future activity”.
 
 
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lschlesinger-FZcF9M3vE6

Kochie slams RBA as too slow in responding to economic downturn 

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Australia's black economy could be worth up to 30% of the nation's gross domestic product, according to research presented yesterday by RMIT.
Researchers have highlighted ''transfer pricing'' – the manipulation of payments and invoices between Australian companies and related companies in tax havens to minimise tax – as a major drain on government revenue.
Sharif As-Saber, deputy head of research and innovation at RMIT University, says the black market was estimated at around 13 to 15% of the economy but that was just taking into account tax evasion.
“If you add illegal transactions like human trafficking and drugs it could be much higher than this,” says As-Saber.
“These kinds of illegal activities are actually rising which is not actually accounted for in the official estimates.”
The researchers found international business crimes today include a wide range of acts which go beyond the traditional corrupt practices such as piracy, bribing and transfer pricing and may include illegal sports betting, illegal ship breaking, high-sea piracy, human trafficking and money laundering.
They can also involve intellectual property theft, counterfeiting and illegal trading of drugs, arms, artefacts, live endangered animals and even human body parts.
As-Saber says the researchers are working towards a new definition of the black economy and what they term “black international business”.
“We would like to come up with a different perspective within international business because at the moment we just look at businesses that are legal and what we have found out is that there are businesses that are not legal entities and they are also involved in some kind of business across borders,” says As-Saber.
As-Saber cautions that all illicit businesses are not illegal, for example he describes the contracts that US companies got after the Iraq war as “all legal but probably illicit”.
As-Saber says it is difficult to point to one industry or sector which is particularly involved in black international business.
“All industries are involved in this kind of activity,” he says.
As-Saber says it is a “difficult question” to determine what should be done to combat the international black economy.
“Any government actions are reactionary in nature and given the sophistication of technology and all sorts of things, the criminals and gangs are advancing very fast,” says As-Saber.
“The response of governments and the international community is not as fast and they are always lagging behind and that is the problem.”
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Australia’s black economy worth up to 30% of nation's gross domestic product: Research

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For some time now, the RBA has been as assuring us of the flow-on benefits soon to reach the non-mining states of Victoria and New South Wales.
However, these benefits may not be very easy to recognise. Let's attempt to make things a little clearer.
The mining boom has been keeping the Australian dollar high for some time now, due to the record levels reached by our terms of trade.
Accordingly, the prices you and I pay for a whole host of manufactured goods have barely altered from what we paid for them 10 years ago. And in some cases, they have fallen.
Yet household incomes have actually grown by more than 60% over the same period.
Therefore, stable prices for many items, together with increased disposable income, has meant those of us living in Sydney and Melbourne now have more to spend upon services and entertainment.
And that then probably helps to explain the extraordinary explosion in restaurants and cafes over the last few years.
Are there other signs of growth?
The latest ANZ jobs survey showed advertisements rose by 1% during March — and have risen by some 12% for the year.
Click to enlarge
<a href="/images/stories/langapril17.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/langapril17thumb.gif"></a>
If next month's figures show a further increase in job ads, this will provide clear evidence of a return of confidence, within the economy.
Bottom line: <a href="https://www.propertyobserver.com.au/commercial/next-year-will-be-good-for-commercial-property-investment/2011112152466" target="_blank">Another recent article </a>touched on the current high level of accumulated household savings.
These are poised ready to re-enter the economy, as soon as this growing confidence is finally confirmed.
And if the RBA trims the cash rate (as is widely predicted to occur in May), be prepared for a sudden surge in investment activity — which will inevitably include commercial property.
 
 
 
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chrislang-EQKojcgJPV

How the mining boom is translating into more cafes in Melbourne and Sydney

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Well, aren’t all those economists just great at getting things right!  Employment rose by 44,000 in March, yet the dismal science predicted a drop in employment, with some economists guessing at job losses as high as 10,000 for March.  Most expected the unemployment rate to increase, and the talk was of a 0.5 percentage point fall in the cash rate next month.
Yet the ABS figures show a healthy mix in new jobs, with part-time jobs rising by 28,000 during March and full-time positions lifting by 16,000.  The jobless rate remained steady at 5.2%.  We even worked more hours in March and also over the last 12 months.
At first glance the latest employment figures are heartening. But the result needs to be put into perspective. The latest March result follows the modest fall in employment in February and a more sizeable fall December. In fact over the past five months employment growth has totalled just 36,400 positions – or around 7,000 jobs a month.  Yet it is still the case that an additional 44,000 workers now have jobs compared with a month ago.
In the current environment people are still more likely to be saving rather than spending. From a business perspective trading conditions will remain difficult, especially given the strength of the Aussie dollar and the mountain of government red (and green) tape. The federal election cannot come fast enough!
The March result suggests that businesses will hold onto current staff rather than adding to their workforce.
The yield curve suggests that the cash rate will drop by 0.25 percentage points in May, giving the banks some cover – i.e. don’t expect mortgage rates to drop much.  For mine – and this isn’t advice – we are at the bottom of the interest rate cycle.  I fixed my investment loans earlier this month for a five-year period.
Oh, and by the way the most jobs over the last 12 months were created in Western Australia (45,000), followed by 23,000 across Queensland.  Close to 23,000 positions were lost across Victoria over the last year.  South Australia lost 2,000 jobs and the was little change in the new jobs created across New South Wales during the 12 months to March 2012.
Three things drive the property cycle – confidence, supply versus demand and full-time job creation.  Perth has a slight oversupply of new stock.  In contrast the Queensland new housing market is <a href="https://www.matusik.com.au/chartsDetail.php?Where-art-thou-supply-15" target="_blank">under-supplied</a>, jobs are being created and the state has a new government, which appears to be making the right moves to restore business and consumer confidence.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition.  Michael has launched a new initiative, called<a href="https://www.matusik.com.au/" target="_blank"> Think Matusik</a>.  Think Matusik brings together expert opinion and select property opportunities.
 
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michaelmatusik-49YzLvdmNv

Employment is up, particularly in Queensland and WA, as economists guess wrong

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There’s an old Jewish proverb, which – as a rough translation – says: “People come to poverty in two ways: accumulating debts and paying them off.” Perhaps our politicians should take note, because it’s clear we’re becoming a society split down the center of “those who have” and “those who have not”. You don’t need the brain of a statistician to work out why the polls are so low.  It’s not just about lowering hospital waiting lists and reducing ever rising electricity bills, which are always on the agenda for any state or federal government in power. Neither is it about handouts to “appease” changes in policy such as the carbon tax, or other “nanny” initiatives.  No – it’s as simple as an effective policy to provide shelter for those unable to commit 50% or more of their wages to accommodate for their needs – let alone that of a growing family.
I admit to being a bit of an ABC junkie, always tuned into one of the various news stations.  I listen to MPs’ voices coming over the airwaves daily, reminding me of Australia’s “sunny” outlook in the light of Europe’s economic woes. I hear our Prime Minister remind me that by 2013 we’ll have a surplus and I read reports of the flood of “economic” migrants flocking to our shores to take advantage of our low unemployment status.  This is all fair enough and on the face of it, not untrue.  However, while there’s no shortage of “those who can” in the divide of the “wealthy” and the “struggling” – there’s an increasing shortage of “those who can’t”.
Most recently I read of an English northerner, a hard-working former paper-mill operator by trade, who refused to go on the dole in the UK to provide for the needs of his family of dependents (all 13 of them).  Frustrated with the lack of opportunity in the UK, he’s taken to the seas and like a pioneer – determined to make a new life for his family – has moved to Queensland.  Staying with relatives, he believes our “positive portfolio” will provide opportunity here, which he’d be unable to furnish elsewhere – and he’s probably right.  However, what he may not have factored in is the cost of housing.  With 12 children among his dependents, finding a house to comfortably accommodate his needs won’t be easy – or cheap. Especially if he wants to be within cooee of transport, schools, and shopping facilities.
But it’s not just about purchasing; the rental market in every capital city is stressed to the max. You may pull me up here and emphasise certain media reports quoting figures “indicating” that Melbourne’s vacancy rate has “softened” under the boom of construction.  If so, it’s worth remembering most of this new construction is in the form of high-rise accommodation, which offers neither affordable rent nor (for those on an average wage) a quality lifestyle.  Investors, looking for good yields, have purchased most of the smaller apartments and you’d be hard pressed to get a studio flat with no parking facilities for less than $300 per week – hardly affordable for those on an average wage. 
While writing this, I have just paused to have a conversation with a young girl about to vacate from her current accommodation due to the current owners wanting to move in.  We spoke briefly about an established two-bedroom apartment that has just been let.  Such was the demand for this relatively small unit, numerous applications had been fielded, offering some $50 per week above the advertised yield (which isn’t by any means an unusual occurrence for apartments in boutique blocks of this type).  It doesn’t just happen in affluent locations, it happens in the poorer areas also. Suburbs in the outer-western Melbourne regions where the market’s arguably more affordable also fall under high demand for an increasing number unable to save for their own homes.
During the conversation we touched on the subject of the current “abundance” of high-rise apartments currently sitting vacant in the CBD (SQM has the vacancy rate sitting at 4.6%); however her comments were along the lines of “small, expensive and anything but appealing”. 
I was then told how she always offers three months rental in advance (not including the bond, which would be an additional cost).  However, even this is often not enough to beat the competition.  For those unable to provide such incentives, it makes you wonder how low-wage recipients and the unemployed cope with finding appropriate shelter. Perth’s vacancy rate has now dropped below 1%, Sydney 1.5%, Adelaide 1.3%, Canberra 0.7%, Darwin 0.7% and Brisbane 1.6% (all figures courtesy of SQM). Possibly the only capital offering a marginally easier terrain is Hobart, with a vacancy rate of 2.4% – however, it’s sparse comfort. 
Tenants who are knocked off the rental ladder (a frighteningly increasing statistic nationwide) confront a truly dire situation.  In 2010 – even after a tightening of the rules of who could, and couldn’t, apply, there were 248,419 people on the waiting list for government-assisted accommodation. The recent McKell institute’s <a href="https://mckellinstitute.org.au/">‘Homes for All’</a> report cited the increased and very real need for public housing.  The latest <a href="https://www.nhsc.org.au/supply">‘State of Supply’</a> report highlighted similar issues.
A recent and damning audit commissioned by the Victorian government <a href="https://bit.ly/HMBtVI">‘Access to Public housing’</a> reads like a company about to go into administration.  Apparently, Victoria has “a $17.8 billion property portfolio, housing 127,357 Victorians”; however, there is a massive 42% gap between income and rental expenses.  Furthermore, the deficit is set to “more than double from $56.4 million in 2011, to $115.1 million in 2015.” Victoria’s apparently “facing a cash crisis with all cash reserves expected to be exhausted during the 2012–13 financial year based on current budget estimates”!  The report can’t even pinpoint where it all became “unsustainable” – “because the division has funded deficits by deferring acquisitions and maintenance and using cash received in advance for long-term programs, along with unspent cash from capital programs.” Recent news confirming the waiting list for public housing in Victoria has fallen by 1,582 is no light on the horizon in the face of such a dire situation, especially considering there are in excess of 38,500 still stuck in “limbo”.
To be fair on the current Victorian government, this is the most detailed report I can find on the subject in the Auditor’s archives.  It’s therefore evident the crisis spanned back well into the previous government’s term and was never adequately addressed or assessed. In light of this, it’s positive that such a review was indeed commissioned, however it’s yet to be seen if the “insurmountable” problem is able to be resolved in the near or long term.
They are all facts and figures that make up part of one of many public reports – reports that have been addressed previously – reports that cost taxpayer money – reports that result in little if any change no matter who’s in power. 
Of most concern is the national review on how housing affordability has been managed.  On the Australian National Audit Office’s <a href="https://bit.ly/IBJrQi">website</a> you can source a damming overview into the administration and implementation of the federal government’s “Housing Affordability Fund (HAF)”.  The objective of this fund was to increase the supply of new homes whilst also reducing their cost, with the key focus being on the “reduction of housing development costs associated with infrastructure projects”.  This is an issue that sorely needs addressing, yet the report is an embarrassment to read. The funding was to be in the form of $500 million over a five-year period from 2008-09 to 2012-13, with a further $12 million allocated for administration costs. Qualification for the funds was assessed on a strict “needs” basis looking at the number constructed, against the projected savings to the home buyer.  In other words, the funds would not be rationed equally across all states. 
All was going OK, until a shortfall in spending to the tune of $12 million was brought to light.  There followed an administration nightmare, with funds allocated to projects that fell clearly outside of the assessment criteria.  Projects that should have been funded weren’t, and those that failed the assessment guidelines and should have been rejected were approved.  Furthermore, it was clear that funded projects did not make evident the amount of savings passed onto the buyer, and neither were the results of those funded fully assessed on completion.  All in all, considering the result to date has only assisted 749 home buyers for an outlay of $12 million in administration costs and a promised $500 million for the projects, it’s clear better strategies could and should have been implemented.
Comparing property markets across the world is difficult due to the way statistics are collated, with some markets substantially less transparent than others.  However, in the <a href="https://www.demographia.com/">International Housing Affordability Annual Survey</a>, the only market that eclipses Australia in terms of income-to-housing cost is Hong Kong.  The survey rates each country by dividing the median house price by the annual median pretax wage.  Australia has a score of 6.7; however, Hong Kong has a score of 12.6.  While there’s plenty of healthy debate over how the figures are calculated, <a href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-more-affordable-than-demographia-suggests/2012012953158">showing that it’s not quite as black and white as it seems</a>, there’s no doubt Hong Kong stands out and it’s therefore worth looking how affordability has affected its most needy – especially considering we’re well on our way to a similar level of disparity.
The country is one of the most densely populated in the world – and with such a finite source of land, it’s no wonder the existing real estate holds its price. Hong Kong has no option but to build upwards – high-rise living is therefore widely accepted, and apartments are small by our standards.  However, since 1953 when the first public housing scheme was initiated, the number of people living in government-assisted accommodation has now reached 50% of the total population. The split between those who can and those who can’t purchase has led to a range of initiatives aimed at providing adequate shelter for not only the poorest, but for increasing numbers of low- and even middle-income recipients not qualifying for public housing, but still sandwiched out of ownership. 
Schemes now include public rental housing estates, home ownership scheme estates, tenants purchase scheme, flat-for-sale schemes – the list goes on. None of the above mentioned has been a “cure” for which statistics of “homeless” have now been replaced with those “caged” in high-rise accommodation.  Accommodation where the standard of living is no better than battery farmed chickens in a coop.  However, action has been taken and to date, it seems to far exceed Australia’s efforts. 
Here we are fast losing the battle altogether, however unlike Hong Kong we have one of the least densely populated countries in the world with an abundance of land – land we haven’t properly used! Furthermore there are a growing number who, like those in Hong Kong, are “sandwiched” – unable to qualify for housing assistance (for which application rules have been tightened) and yet can’t afford adequate rental accommodation close to the transport facilities they need for employment.  Yet we’re told daily how prosperous Australia is in comparison to other nations as if everyone is ‘enjoying’ the ride.
Do we really want to end up like Hong Kong with 50% of the population needing government-assisted housing simply because successive governments haven’t gone far enough to action effectively the recommendations of their various multimillion-dollar funded reports?  Planning rules must be relaxed in outer-suburban areas.  There needs to be a fresh look at the requirements to build “green”, which I’ve previously spoken about <a href="https://bit.ly/rrfUxd">here</a>.  Provision of facilities, making regional locations feasible for home buyers working in central towns and cities, need to be timetabled and implemented (another issue I’ve addressed – along with others – on numerous occasions). 
We don’t need an “HAF” that helps fewer than 1,000 recipients for an outlay costing hundreds of millions. Nor should we be giving out “nanny” incentives, which place inflationary pressure on existing real estate such as the FHOG (first-home owners’ grant). Instead, we should remove stamp duty on new dwellings and consider a change in policy on negative gearing and other such recommendations cited in the <a href="https://bit.ly/HMDOjA">Henry Tax review</a>. 
We may be rolling along on a mining boom, which looks great on paper.  Nevertheless, like the “unsinkable” Titanic on calm waters, no one seems to be flagging the great iceberg ahead. 
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://ten.com.au/the-circle.htm">The Circle</a> and a senior consultant for <a href="https://www.nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs – Australia wide – for home buyers and investors.
Iceberg photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
 
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catherinecashmore-6LXia3pPQj

Unless we address affordability, Australia's property market will hit an iceberg: Catherine Cashmore

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Properties in just one locality in the City of Ipswich have changed in value since last year, according to the Queensland Valuer-General’s annual valuation.
Medium prices in the rural locality of Deebing Heights increased 1.3% from $197,500 in 2010 to $200,000 in 2011, according to Valuer-General Neil Bray.
Bray found medium prices in Ipswich’s 66 other localities stayed the same from October 2010 to October 2011.
Over the whole region prices increased 0.1%, reflecting the static market in the area.
Bray says allowances made in 2010 for flood-affected properties had been carried for into the new valuations.
“Apart from isolated changes to reflect environmental changes or local sales evidence residential valuations are predominantly unchanged,” Bray says.
“Minor changes were recorded in commercial values with some neighbourhood shopping centre values increasing slightly.”
The City of Ipswich recently topped an RBA list of the regions with the highest rates of mortgage arrears.
<table border="0" cellspacing="0" cellpadding="0" width="460"><tbody>
<tr>
<td width="91" valign="top">
Residential localities
</td>
<td width="133" valign="top">
Previous median value ($)
</td>
<td width="120" valign="top">
New median value ($)
</td>
<td width="116" valign="top">
Change in median value (%)
</td>
</tr>
<tr>
<td width="91" valign="top">
Deebing Heights
</td>
<td width="133" valign="top">
197,500
</td>
<td width="120" valign="top">
200,000
</td>
<td width="116" valign="top">
1.3
</td>
</tr>
<tr>
<td width="91" valign="top">
Amberley
</td>
<td width="133" valign="top">
86,000
</td>
<td width="120" valign="top">
86,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Ashwell
</td>
<td width="133" valign="top">
97,500
</td>
<td width="120" valign="top">
97,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Augustine Heights
</td>
<td width="133" valign="top">
207,000
</td>
<td width="120" valign="top">
 
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Barellan Point
</td>
<td width="133" valign="top">
202,500
</td>
<td width="120" valign="top">
202,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Basin Pocket
</td>
<td width="133" valign="top">
131,000
</td>
<td width="120" valign="top">
131,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Bellbird Park
</td>
<td width="133" valign="top">
148,000
</td>
<td width="120" valign="top">
148,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Blackstone
</td>
<td width="133" valign="top">
140,000
</td>
<td width="120" valign="top">
140,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Booval
</td>
<td width="133" valign="top">
132,000
</td>
<td width="120" valign="top">
132,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Brassall
</td>
<td width="133" valign="top">
152,500
</td>
<td width="120" valign="top">
152,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Bundamba
</td>
<td width="133" valign="top">
128,000
</td>
<td width="120" valign="top">
128,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Calvert
</td>
<td width="133" valign="top">
67,000
</td>
<td width="120" valign="top">
67,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Camira
</td>
<td width="133" valign="top">
182,500
</td>
<td width="120" valign="top">
182,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Churchill
</td>
<td width="133" valign="top">
136,000
</td>
<td width="120" valign="top">
136,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Chuwar
</td>
<td width="133" valign="top">
165,000
</td>
<td width="120" valign="top">
165,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Coalfalls
</td>
<td width="133" valign="top">
144,000
</td>
<td width="120" valign="top">
144,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Collingwood Park
</td>
<td width="133" valign="top">
127,000
</td>
<td width="120" valign="top">
127,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Dinmore
</td>
<td width="133" valign="top">
115,000
</td>
<td width="120" valign="top">
115,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
East Ipswich
</td>
<td width="133" valign="top">
126,000
</td>
<td width="120" valign="top">
126,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Eastern Heights
</td>
<td width="133" valign="top">
149,000
</td>
<td width="120" valign="top">
149,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Ebbw Vale
</td>
<td width="133" valign="top">
123,000
</td>
<td width="120" valign="top">
123,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Ebenezer
</td>
<td width="133" valign="top">
93,000
</td>
<td width="120" valign="top">
93,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Flinders View
</td>
<td width="133" valign="top">
155,000
</td>
<td width="120" valign="top">
155,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Gailes
</td>
<td width="133" valign="top">
115,000
</td>
<td width="120" valign="top">
115,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Goodna
</td>
<td width="133" valign="top">
124,000
</td>
<td width="120" valign="top">
124,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Grandchester
</td>
<td width="133" valign="top">
68,500
</td>
<td width="120" valign="top">
68,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Haigslea
</td>
<td width="133" valign="top">
130 750
</td>
<td width="120" valign="top">
130 750
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Ipswich
</td>
<td width="133" valign="top">
150,000
</td>
<td width="120" valign="top">
150,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Ironbark
</td>
<td width="133" valign="top">
108,000
</td>
<td width="120" valign="top">
108,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Karalee
</td>
<td width="133" valign="top">
172,500
</td>
<td width="120" valign="top">
172,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Karrabin
</td>
<td width="133" valign="top">
124,000
</td>
<td width="120" valign="top">
124,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Lanefield
</td>
<td width="133" valign="top">
93,000
</td>
<td width="120" valign="top">
93,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Leichhardt
</td>
<td width="133" valign="top">
125,000
</td>
<td width="120" valign="top">
125,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Lower Mount Walker
</td>
<td width="133" valign="top">
100,000
</td>
<td width="120" valign="top">
100,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Marburg
</td>
<td width="133" valign="top">
94,000
</td>
<td width="120" valign="top">
94,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Moores Pocket
</td>
<td width="133" valign="top">
107,000
</td>
<td width="120" valign="top">
107,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Mount Forbes
</td>
<td width="133" valign="top">
70,000
</td>
<td width="120" valign="top">
70,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Mount Marrow
</td>
<td width="133" valign="top">
156,250
</td>
<td width="120" valign="top">
156,250
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Muirlea
</td>
<td width="133" valign="top">
141,000
</td>
<td width="120" valign="top">
141,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Newtown
</td>
<td width="133" valign="top">
150,000
</td>
<td width="120" valign="top">
150,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
North Booval
</td>
<td width="133" valign="top">
120,000
</td>
<td width="120" valign="top">
120,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
North Ipswich
</td>
<td width="133" valign="top">
125,000
</td>
<td width="120" valign="top">
125,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
North Tivoli
</td>
<td width="133" valign="top">
87,000
</td>
<td width="120" valign="top">
87,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
One Mile
</td>
<td width="133" valign="top">
125,000
</td>
<td width="120" valign="top">
125,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Peak Crossing
</td>
<td width="133" valign="top">
93,500
</td>
<td width="120" valign="top">
93,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Pine Mountain
</td>
<td width="133" valign="top">
183,000
</td>
<td width="120" valign="top">
183,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Purga
</td>
<td width="133" valign="top">
132,000
</td>
<td width="120" valign="top">
132,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Raceview
</td>
<td width="133" valign="top">
138,000
</td>
<td width="120" valign="top">
138,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Redbank
</td>
<td width="133" valign="top">
130,000
</td>
<td width="120" valign="top">
130,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Redbank Plains
</td>
<td width="133" valign="top">
142,000
</td>
<td width="120" valign="top">
142,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Ripley
</td>
<td width="133" valign="top">
136,000
</td>
<td width="120" valign="top">
136,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Riverview
</td>
<td width="133" valign="top">
110,000
</td>
<td width="120" valign="top">
110,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Rosewood
</td>
<td width="133" valign="top">
119,000
</td>
<td width="120" valign="top">
119,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Sadliers Crossing
</td>
<td width="133" valign="top">
155,000
</td>
<td width="120" valign="top">
155,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Silkstone
</td>
<td width="133" valign="top">
134,000
</td>
<td width="120" valign="top">
134,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
South Ripley
</td>
<td width="133" valign="top">
80,000
</td>
<td width="120" valign="top">
80,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Springfield
</td>
<td width="133" valign="top">
165,000
</td>
<td width="120" valign="top">
165,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Springfield Lakes
</td>
<td width="133" valign="top">
160,000
</td>
<td width="120" valign="top">
160,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Tallegalla
</td>
<td width="133" valign="top">
117,000
</td>
<td width="120" valign="top">
117,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Thagoona
</td>
<td width="133" valign="top">
108,500
</td>
<td width="120" valign="top">
108,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Tivoli
</td>
<td width="133" valign="top">
107,000
</td>
<td width="120" valign="top">
107,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Walloon
</td>
<td width="133" valign="top">
150,000
</td>
<td width="120" valign="top">
150,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
West Ipswich
</td>
<td width="133" valign="top">
120,500
</td>
<td width="120" valign="top">
120,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Willowbank
</td>
<td width="133" valign="top">
134,000
</td>
<td width="120" valign="top">
134,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Woodend
</td>
<td width="133" valign="top">
142,000
</td>
<td width="120" valign="top">
142,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Wulkuraka
</td>
<td width="133" valign="top">
139,000
</td>
<td width="120" valign="top">
139,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
Yamanto
</td>
<td width="133" valign="top">
157,500
</td>
<td width="120" valign="top">
157,500
</td>
<td width="116" valign="top">
0
</td>
</tr>
<tr>
<td width="91" valign="top">
All residential localities
</td>
<td width="133" valign="top">
139,000
</td>
<td width="120" valign="top">
139,000
</td>
<td width="116" valign="top">
0
</td>
</tr>
</tbody></table>
</body></html>

awalsh-7Ub9EypybQ

Land values on hold in past year in Ipswich, mortgage arrears capital of Australia

<html><body>
With Easter 2012 over, many of you will be suffering withdrawals not just from chocolate but also from information about the property market – and more importantly from a lack of homes to look at.
Winter 2012 seems to have come early in terms of lack of properties listed for auction. Even with the holidays now over, there are still only a handful of auctions listed for the weekends left in April. In fact this is shaping up as one of the lowest mid-year auction months that I can remember for some time.
That doesn’t mean that there are no properties on the market at all. There are still plenty of off-markets (unadvertised homes), pre-markets (before they get to market), private sales with no advertising and stales (homes that were advertised a year ago and are now either off the net or on the very last page of the listings).
However, what this does mean is that if you are a buyer looking for an A-grade result in April 2012 you aren’t going to get the best deals by sitting back, thumbing through the glossies and turning up on a Saturday.
As a buyer it is important you understand what is going on, and you are not necessarily going to get that from the Sunday papers. With no public pointers such as meaningful $1 million-plus clearance rates you are going to have to look deeper than the dailies for your market indicators.
For instance, I am still surprised at the number of market watchers who talk to me mid-week in coffee shops or at Sunday sport who think that because they’ve heard the market is OK that prices must have been going up. In 90% of the 400 or so transactions we’ve looked at this year, the sale price has in fact been at or below vendor expectations of last year, not above. And while there has been a good spread of solid auctions, they have rarely exceeded “trade” price expectations. The main reason the market was healthy pre-Easter was because vendors were meeting the market, not because buyers were leaping to ridiculous heights to grab the gold.
On the other hand, when demand is still strong and stock is down as it is right now, prices tend to stay firm. Before Easter our demand indicator Bidderman, which shows an average number of bidders per auction, showed us that there is a healthy level of demand out there when the 3Ps are right – price, property and position. So there is still plenty of competition out there when the property comes up at the right price.
Hence, to use a sailing analogy, your search for a $1 million-plus home in bayside and Melbourne’s inner east in the next few weeks may require you to change tack. As with sailing, you will need to look for the winds in different spots and possibly away from the crowds.
So, what can you do to maximise your chance of finding your dream home at a good price this month?
1)      Do your own research. You need to look past the highlighted sales results that skilled agents will present you. These may not be giving you the full picture. As an informed buyer you need to balance out this information with that from results not highlighted by the selling agent. As a buyer it is incumbent on you to do your own independent homework if a good decision making process one of your home-buying goals.
2)      The early bird who has clear and relevant goals catches the worm – it might seem a worn-out saying, but it’s super relevant in this market. Yes, turning up is three-quarters of life, but you still need to perform. Your winter home searching effort needs to include weekly phone calls to agents, short, sharp emails, letterboxing, Excel spreadsheets. The good homes are not just going to fall into your lap as they did before Easter or in previous years. If you do, you may get some chances other don’t.
3) Get a rental. With very limited stock on offer, you’ll need an extra level of patience to avoid making a mistake. If your dream home is not there, it’s not there. In that case a six-month rental strategy may be far better in the long term than a ‘quick draw McGraw’ 10-year buying strategy.
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
Winter photograph courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
</body></html>

maljames-vHwm28JUAa

Buying property in early winter demands a change of tack: Mal James

<html><body>
In the last three weeks a dramatic event has taken place in the Australian residential apartment market – the mainland Chinese have suddenly increased their “off the plan” buying of inner Sydney, Melbourne and even Brisbane apartments.

The Chinese have been the main buyers of Sydney and Melbourne inner-city apartments for some time (they were not normally Brisbane buyers) but, according to Australia’s largest apartment developer, Harry Triguboff, the level of buying over the last three weeks is without precedent. 
It underlines the fact that substantial parts of the Australian residential market are dependent on what happens in China. Some of this avalanche of Chinese apartment buying will spill over to wider residential markets, although, because so much of it is off the plan, it effects construction activity rather than the pre-owned residential market. There are a substantial number projects in the pipelines, so this buying will avoid what was potentially a glut in all three cities.
It seems that Chinese apartment investors have been quietly told that the Chinese government wants a subdued Chinese apartment market and that they would much prefer the investors to buy offshore (which also helps keep the Chinese currency down).
In recent months there have been substantial swings in Chinese demand for Australian apartments.
Last November, Chinese purchases of inner-Sydney and Melbourne apartments off the plan suddenly halved (<a href="https://www.propertyobserver.com.au/economy/the-sting-in-a-china-property-tale/2011112252489" target="_blank">The sting in a China property tale</a>) – a move which, if it had continued, would have had a major effect on apartment prices. At that time, the severity of the funding squeeze in China greatly increased the risk of Australian purchases by mainland Chinese because their investments in China could be jeopardised.
Over the Christmas break the China credit squeeze eased and in January the Chinese returned to inner-city apartment buying (<a href="https://www.businessspectator.com.au/bs.nsf/Article/China-apartments-Australia-housing-market-RP-Data--pd20120201-R2QQZ?OpenDocument" target="_blank">Will China trigger a property revival?</a>).
Although the Chinese have been the main buyers of inner-city Sydney and Melbourne apartments in the past the buying was spasmodic. Most of the buyers were those educated in Australia.
The latest buying is much more concentrated. Given that the Chinese are buying the apartments off the plan, it means that apartment building is going to be strong well into the future irrespective of the level of Australian interest rates. Nevertheless, the recent lower Australian rates and the expectation of further falls has kindled interest by Australian buyers.
So the market has become much stronger.
In the past the Chinese concentrated their purchases in Sydney and Melbourne, but this time the force of the buying is so much stronger that it has spilled over to Brisbane, where the prices are cheaper. It has not extended to the Gold Coast.
The Chinese find that Australian yields from apartment rents are much higher than those in China.
This article originally appeared on <a target="_blank" href="https://www.businessspectator.com.au/">Business Spectator</a>.
For more insights into Chinese buyers and their effect on the Australian property market, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets">download our free eBook.</a>
 
 
 
 
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