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]

Joel Robinson

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

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

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

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

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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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The number of Sydney residential properties listed for sale increased by 10.5% in February, bucking a 0.1% national decline in listings, according to the latest figures compiled by SQM Research. 
Canberra listings increased by 7.5% during February, while Melbourne listings were up by 2%. 
Listings were flat in Brisbane (0.2%) and Perth listings were flat (0.3%), while declines were recorded in Adelaide, Darwin and Hobart. 
Year-on-year Hobart has the highest increase in residential stock (up 36.5%), followed by Melbourne (19.8%), Canberra (12.8%) and Adelaide (12.1%).
Managing director of SQM Research Louis Christopher says there is more evidence “that stock levels have been peaking, particularly for the cities of Perth and Brisbane, which having been recording some signs of a recovery on other measurements”. 
“Overall we are cautious and perhaps a little more cautious than at the start of the year, given the lacklustre start to the auction season and the rise in interest rates by the major banks, which we believe has dented sentiment towards real estate,” says Christopher.
<img src="/images/stories/45423.gif">
The number of residential listings in Melbourne in February, up 2% in February and up 19.8% year-on-year
 
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The number of residential listings in Sydney in February, up 10.5% in February and up 4.2% year-on-year
 
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The number of residential listings in Brisbane in February, up 0.2% in February, but down 2.4% year-on-year
 
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The number of residential listings in Perth in February, up 0.3% in February, but down 7.5% year-on-year
 
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The number of residential listings in Adelaide in February, down 4% in February, but still up 12.1% year-on-year
 
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The number of residential listings in Hobart in February, down 2% in February, but still up 36.5% year-on-year
 
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The number of residential listings in Canberra in February, up 7.5% in February and down 12.8% year-on-year
 
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The number of residential listings in Darwin in February, down 2.9% in February and down 18.6% year-on-year
 
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The number of national residential listings in February, down 0.1% in February but still up 7.7% year-on-year
 
 
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lschlesinger-FZcF9M3vE6

Residential listings rise 10% in Sydney to 31,833 but stabilise nationally in February: SQM

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Residential building activity is forecast to pick up in the Northern Territory, Queensland and NSW later this year driven by “minerals-related investment”, according to 2012 economic forecasts by BIS Shrapnel. 
The report highlights the overall positive outlook for the Australian economy, but notes that “large disparities will persist, both regionally and between industries”. 
The biggest beneficiary of the mining boom will continue to be Western Australia, while Victoria is forecast to remain stuck in the slow lane of the two-speed economy, with growth slowing in 2012.
“Some of this [slowdown in Victoria] reflects the impact of the high Australian dollar on the manufacturing, finance and business services sectors, as well as the winding down after a strong period of dwelling building activity over the past couple of years,” says BIS Shrapnel senior economist Tim Hampton. 
“South Australia is doing it tough due to the high Australian dollar, but activity will be supported by a number of very large construction projects over the next few years, including the Olympic Dam expansion. 
“Tasmania will continue to struggle due to the high Australian dollar weighing on its manufacturing and tourism industries. 
“The Australian Capital Territory is likely to experience low growth as government departments rein in spending,” says Hampton. 
According to Hampton the rapid expansion of minerals-related investment is proving the most beneficial to the engineering construction industry as well as some areas of manufacturing, transport, wholesale trade, accommodation, and professional and business services. 
However, the “flip side” of the minerals boom is that record high commodity prices and the rise of the Australian dollar to near-record levels in real terms is having a detrimental effect on tourism, international education industries and many parts of the manufacturing industry. 
“Other industries are also suffering due to the high Australian dollar, including retail trade as Australian households spend more of their money offshore. Many firms in professional and business services are also under pressure because the high Australian dollar is encouraging firms to take these activities offshore,” Hampton says.
“The completion of the government’s construction stimulus package is weighing heavily on non-residential building activity throughout the country,” he says.
The report also notes the continued deleveraging of households, which begun following the onset of the GFC, and the “negative news coming out of Europe and the United States”, which has “weighed heavily on consumer and business confidence” and encouraged creditors to tighten lending standards.
“As a result, the household saving rate has increased to its highest level since the 1980s, housing credit growth has fallen to its lowest annual rate on record, and the level of business credit remains nearly 10% below its late 2008 peak.” 
BIS Shrapnel is forecasting annual average GDP growth just above 3% for the year to June 2012 and 3.5% for the year to June 2013, which should be sufficient to keep the unemployment rate around its current level just above 5% for the next six months, before it starts trending down to around 4.5% in the middle of next year.
 
 
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Resources boom to drive residential building recovery in NT, Queensland and NSW: BIS Shrapnel

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Today the RBA will likely keep its cash rate steady on the basis that it believes the economy is travelling around “trend”, inflation is sitting in the middle of its target band, and market lending rates are about where they need to be. To this line of thinking, rates are priced to perfection, or as close to perfection as one could reasonably expect to get.
And it is hard to see how Australia’s banks will undertake a second round of “out-of-cycle” hikes given that funding costs have plummeted since their spike in January. By way of illustration, CBA issued a AAA-rated covered bond at 1.75% over its benchmark rate in late January. Today the cost of that same bond is 50 basis points lower at circa 1.26% over.
As another indication, the Australian credit default swap index, which is a proxy for financial stress that measures market perceptions of the chance Australian companies will default on their loans, is today back around its July 2011 levels, and nearly 40% lower than its late 2011 highs.
Having said that, we know that the RBA’s complex board is not always unified around interest rate decisions (in striking contrast to what some media commentators have claimed). Outgoing board member Graham Kraehe revealed in The Australian newspaper several weeks ago that the seven non-RBA members of the board, which include six dovish private-sector representatives, had “regularly” rolled the governor’s (or “staff”) monetary policy recommendations:
“There have been a number of occasions when the basic recommendation from the staff hasn't been adopted… I would not suggest there has been an increase when the staff said there should be a decrease. But we (the non-RBA staff) have said, 'Let's not move, let's sit'… And that has happened reasonably regularly."
Note how Kraehe unwittingly concedes that the non-staff members of the board have never argued for higher rates and confirms their implicitly dovish bias. This week we also had the ALP-aligned economist Stephen Koukoulas inform us that there are “many” current board members who want to see lower rates:
“Whether the RBA cuts in March is not at all clear. There is no doubt it could (should) cut interest rate without fuelling a lift in inflation. This judgment is shared by many board members”
While the RBA’s meeting today should be something of a non-event for the economy, the data flows later in the week could have a decisive influence on the outlook.
The two key pieces of information we get are the fourth quarter estimate of real economic growth (or GDP) on Wednesday and the monthly unemployment rate update on Thursday. Recall that real GDP printed a “surprisingly” strong 1.4% and 1% in the second and third quarters, respectively.
The RBA has argued in its Statement on Monetary Policy that Australia’s economy was actually running slightly “above trend” in the second half of the year. In contrast, there are others, such as Koukoulas, who claim that the economy is actually much weaker than the RBA believes, and demonstrably “sub-trend”.
Tomorrow’s GDP results will help resolve this debate. The consensus economist prediction is around 0.7%, or a touch under 3% annualised. However, many analysts think that the risks are skewed to the downside. Goldman Sachs, for example, is forecasting just 0.4% growth. Merrill Lynch’s Saul Eslake is similarly minded. The guys at Goldman have even canvassed a 0% outcome, which they correctly contend would be a “game changer” for the RBA.
Of course, if real GDP prints at 0.8% or higher, and there are no fundamentally view-changing revisions to past data, the RBA’s comparatively optimistic position would be vindicated.
The GDP data could, therefore, materially alter the expected monetary policy path one way or another, which is obviously important for the highly interest rate-sensitive housing sector.
On Thursday we get another piece of the economic puzzle in the form of the monthly labour force data. In concert with recently robust GDP prints, the stubbornly low unemployment rate has frustrated those who were forecasting that the RBA would cut rates to as low as 3.5% by June this year. In the last three months Australia’s unemployment rate has fallen from 5.3% (initial estimate), to 5.2%, and, in February, to 5.1%. Yet the RBA and most economists still expect it to rise to around 5.5%.
As I have argued in these pages for months, a number of leading indicators insinuate that the labour market is healthier than many would have us believe. The much more comprehensive “unemployment benefits” (or “dole”) data fell for most of 2011. Likewise, the Department of Education, Employment and Workplace Relations’ leading indicator index (red line in the chart below) has painted a more positive picture than the ABS’s numbers.
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/march61.gif"><img src="/images/stories/march61thumb.gif"></a>
Finally, growth in ANZ’s closely followed “job ads” index has led its economists to conclude that the peak in the unemployment rate may, in fact, have already arrived (give or take the monthly volatility).
Notwithstanding this, many expect that the jobless rate will creep higher on Thursday. A surprisingly weak fourth-quarter GDP estimate packed with a significant increase in the unemployment rate could energise the RBA’s currently tenuous “easing” bias. Perversely, this would probably be good news for Australia’s housing market.
Based on RP Data-Rismark’s new daily hedonic home value index, Australian dwelling values rose 0.8% in February, but that only partly cancelled out a slightly larger fall in the seasonally weak month of January.
More encouraging are the partial housing data. Australia’s largest mortgage broker, AFG, has reported its best February month on record, processing $2.8 billion of new home loan applications. This compares with $2 billion in February 2011 and $2.2 billion in February 2010.
While some spin the ABS and RBA housing credit data by highlighting that it is at, or near, “all-time historical lows”, the truth is that new home loan growth is expanding at around the same pace as disposable household incomes. This is what one would expect, and is not a harbinger of housing Armageddon.
Finally, there are some tentative signs in RP Data’s weekly auction clearance rates that the housing market may find a more solid base in 2012. We only have six weeks’ worth of data to go on, but, as the chart below shows, February yielded the best auction results since March 2011. There is seasonality in this data, so it needs to be interpreted with care. The one thing we can say is that this is certainly much better than the counterfactual of clearly deteriorating conditions.
 
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/march62.gif"><img src="/images/stories/march62thumb.gif"></a>
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 


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Cash rate is priced to perfection: Christopher Joye

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What you need is a strategy to make absolutely sure you obtain the best possible price when you sell.
And you do this by creatively targeting investors, developers and potential owner-occupiers — through adopting a broad (yet cost-effective) marketing campaign, which draws out those buyers best suited to your property.
Choosing the best method of sale
The number-one secret for successfully selling any property is to promote the feeling among your prospective buyers that "they could miss out".
However, this is difficult to achieve with a straight private sale. In fact, this method generally takes far longer to achieve a result — as it fails to create any sense of urgency in a buyer's mind.
Plus, you are at a real disadvantage in having to nominate an asking price. Traditionally, you need to inflate this figure to allow for the expected level of negotiation. But that becomes a double-edged sword.
You could effectively deter potential buyers because your figure is considered to be too high. Or it could go the other way — you may end up selling at a figure below what buyers may have been prepared to pay, simply because your buyers were not put under any competitive pressure.
For my clients, I recommend either a public auction or tender as the most appropriate method of sale.
That way, prospective buyers are all heading towards a fixed end-date and there is no need for you to publicly nominate an actual selling price — so you maintain control all the way through.
How to market your property
As you'll appreciate, media advertising can be very costly. And there is also a limit to just how much you can actually say about the property in any one advertisement.
So the best approach has been to link the media ads to dedicated web pages for each property, which has proven extremely successful.
You will find most agents simply choose to place their properties onto the internet in a rather generic form using portal sites like realcommercial.com.au or commercialrealestate.com.au.
But this creates a problem for you, in that every buyer for your property needs to go through a lengthy search process on one or more of these portal sites.
And what's even worse (for you as a vendor) is that these buyers will probably discover several other properties they prefer along the way!
Bottom line: What works best is to create a dedicated website (or least several web pages) for your property. And then promote that specific web address via the media ads, the brochure and the board.
That means prospective buyers are able to home in on your property to view and download everything about it. And probably do this after hours, when your agent is actually closed.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
 
 
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How to market and sell your commercial property investment

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Rental rates across the combined capital cities grew by 6.3% in 2011, compared with a fall in home values of 3.6%. The superior growth performance of rents compared with values has been a consistent trend over the past five years.
Since the beginning of 2006, rental growth across the combined capital cities has outpaced the growth in home values. Over the period December 2005 to December 2011, capital city home values have increased by a total of 34.5% compared to rental rates having increased by a total of 46.8%. On an inflation adjusted basis, capital city home values have increased by 15.4% over the period and rental rates have increased by 27.7%.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/tlmarch51.gif"><img src="/images/stories/tlmarch51thumb.gif"></a>
Looking at the performance across individual years highlights the fact that you typically see either rents or values growing or in some instances both. Across each year highlighted, one of either values or rents has grown by more than 5%. The results also highlight that if value or rental growth slows, typically the other will increase; the markets tend to be counter-cyclical.
The results are also indicative of a disconnect between housing demand and housing supply given that in any given year values or rents are growing at a rate that is in excess of the growth in inflation.
Click to enlarge
<img src="/images/stories/tlmarch52thumb.gif">
Across individual capital cities over the five years to December 2011, house values have grown by as little as an average annual rate of 0.1% in Perth and by as much as 7.9% per year in Darwin. Across the combined capital cities, house values have increased at an average annual rate of 4.4% over the last five years.
In comparison, house rents have recorded average annual growth of as little as 2.8% per year in Adelaide and as much as 9.9% annually in Darwin. Across the combined capital cities, rental rates for houses have increased at an average annual rate of 5.8% pear year over the last five years, a full 1.4 percentage points higher than average annual value growth.
Focusing on units, they have enjoyed stronger value growth over the past five years than houses. Across the combined capital cities unit values have increased at an average annual rate of 5.5% per year over the period and have increased by as much as 12.5% per year in Darwin and by as little as 0.9% per year in Perth.
Rental growth for units has outpaced the growth in the value of units over the last five years. Unit rents have increased at an average annual rate of 6.2% annually over the past five years and have increased by as much as 11.9% per year in Darwin and by as little 3.1% per year in Canberra.
The average annual rate of rental growth for houses has outpaced that of units over the past five years in each city except Melbourne, Adelaide and Canberra. Duringthe same timeframe, rental growth for units has outpaced value growth in Sydney, Brisbane and Perth.
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<a href="/images/stories/tlmarch53.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/tlmarch53thumb.gif"></a>
Over 2012, RP Data expects that growth in rental rates will continue to outpace the growth in home values. The reason being that we are not anticipating any 'real' growth in home values. Additionally, tight rental market conditions accompanied by an insufficient supply of new housing is likely to result in superior levels of rental growth to that of home values.
As always, there is likely to be some disparity between rental growth across individual capital cities. Markets such as Sydney, Brisbane and Perth are anticipated to be the strongest performers for rental growth due to the large discrepancy between housing supply and demand and low rental vacancy rates. On the other hand, rental pressures are not expected to be anywhere near as strong in Melbourne and Adelaide due to higher rental vacancy rates and less of a disparity between housing demand and housing supply.
Tim Lawless is the director of research at <a href="https://rpdata.com/">RP Data</a>
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Why rents will keep rising: Tim Lawless

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Buyer demand and confidence eased in the pricey inner-Melbourne municipality of Stonnington during 2011, according to Jellis Craig's Annual Property Review, but the agency expects buyers to return to the market for blue-chip properties in 2012.
“In general, against some easing of demand and buyer confidence driven by European concerns, Stonnington held well in 2011. As the municipality takes in some of Melbourne’s highly sought, blue-chip suburbs, it is important to reflect on how specific areas have performed over the last three years, to put any projections for 2012 into context,” say report authors Damien Davis and Steven Abbott.
 
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<a href="/images/stories/ston1large.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/ston1.jpg"></a>
“Having peaked in September 2009, prices in Armadale and Toorak gradually declined over 2010/2011 back to those of early 2009 levels. However, the Armadale and Toorak price medians can be skewed by several significant sales in any one quarter, which needs to be taken into consideration in suburbs with a low turnover of property.
“Despite quarterly fluctuations in the market overall, the key drivers to the desirability of these suburbs are not investor led. Access to quality schools, parkland, the availability of public transport along with easy freeway access and the superb shopping restaurant and cafe facilities on offer, ensure that property across Stonnington is tightly held,” they say.
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<a href="/images/stories/ston2.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/ston2thumb.jpg"></a>
Source: <a href="https://www.jelliscraig.com.au/" target="_blank">Jellis Craig</a>'s Annual Property Review
“One of our most significant sales last year was a very large parcel of land at 343-345 Glenferrie Road, Malvern, near Stonnington Town Hall. This 2,063-square-metre allotment of prime residential property was offered with current plans and permits for quality apartments with basement parking and attracted keen developer interest. It was eventually secured by an international consortium baring testimony to confidence in longer-term development opportunities.
“Into 2012, the market in Stonnington has met with renewed enthusiasm. The amount of property enquiry is up significantly on that of late 2011, and we have already transacted a number of January and February sales, normally a quiet month in the sales calendar,” the report notes.
“Buyer sentiment is certainly significantly more positive, and we would expect this increased confidence to translate into competitive purchasing. While potentially decreasing interest rates are certainly a contributing factor to increased demand, we do not expect this to appreciably increase prices over the next 12 months but more contribute to a stabilised market best described as conservatively optimistic.”
 
 
 
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cknowlton-QnEa6ntUYP

Stonnington prices eased in 2011 but are likely to pick up in 2012: Jellis Craig

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There was a time when housing was seen primarily as a place to shelter loved ones, to keep possessions safe, to protect against the elements and through permanent settlement, stake a claim on the land, however securing this shelter has never been an easy road.  Historically, as soon as man began to “settle” housing became a luxury reserved for the rich.  You could argue that it hasn’t changed much – especially in Australia, where rising house prices and a shortage of “useable” accommodation has placed a strain on aspiring home owners thereby gradually reversing the trend from ownership to tenancy.
Since history began, housing was an integral part of the most valuable asset man desired, fought over, possessed and in many cases died for – land.  Land was – and has always been – used as a symbol of power and wealth.  Whether it be a means to make a living through effective cultivation, a form of wielding control over a resident population, a place to build the modern-day castle, or simply a speculative investment, it’s the most valuable commodity mankind owns – a valuable and finite commodity that becomes more so as the population expands.
Back in mediaeval times, there was no set system of ownership.  If you found it, you owned it, and if you wanted it, you fought for it. It didn’t come with recognised rights of ownership or tenancy laws protecting the resident population.  However all this changed on the most important date in <place><country-region>England</country-region></place>’s history – 1066.  When William the Conqueror took England, he declared all the land ownership of the Crown.  Keeping a quarter for himself as a personal holding, he gave a proportion to the church and split the rest into “manors”, which he distributed out under strict freehold conditions to barons.  He understood the value of land and the emotional envy it could inspire; therefore he was careful not to provide anyone a proportion large enough to invoke rebellion.
However, what he did provide was – as never before – the start of a recognised form of “free ownership” able to be split, used, sold and inherited as a personal holding.  In return for this generosity, the barons were required to pledge loyalty to the king in the form of monitory payment and – when required – military force.  After taking their share, the land was further subleased to knights, who thereby paid for their holding with a requirement to serve the barons’ combative needs.  The knights in turn subleased a percentage to serfs – who paid for their shelter in the form of food production and service on demand.  So started the evolution into the system we have today of “fee simple” ownership and land tenure – and thus, real estate became a valuable personal and recognised asset to be traded, sold and exchanged at the owners’ will.
Land has always equalled more than just a monitory value.  Unlike shares, the physical aspect of the asset and the emotional quality it holds have always underpinned its value.  The more potential the land holds for development or cultivation, the more value can be created.  It’s never been an asset easily liquidated, however because it’s essential to our basic needs, it stands right up there alongside food and water.  Of course, like any other investment, its value is assessed in terms of the demand created by location, potential use (the amount of accommodation it can provide) and health of the overall economy.  It follows the basic rule of any investment model – less supply fuels more demand and in Australia – particularly in the urban areas where most people want to reside – land value has increased through the continuous restriction and scarcity of supply and a population experiencing rapid, unprecedented growth.
You can debate the argument between shares vs property (land), as much as you want.  You can quibble over which will provide the best returns.  You can pull up charts, graphs, complex calculations and genuine examples to effectively win the argument for either side of the coin, because there is no doubt we have investors who have effectively wielded great wealth out of each model. However the one essential overwhelmingly obvious difference granted to investors of real estate is the personal control a privately held piece of useable land in a sought-after location provides – and it’s a lot more than a certificate of shares in the family safe.
 
<hr class="system-pagebreak">
 
It’s not just a case of deciding when to buy and sell; you can control other aspects such as renovation, extension, subdivision, and major development.  Providing you picked the right area to invest initially, the long-term risks of loss are extremely low. Sure, we can look out from our sunny side of the rainbow and wag a finger at Greece and the US as a shining example of “when it all went wrong”, however what went wrong wasn’t peoples need for shelter, or the emotional aspirations and value they placed on property.  Neither was it the mentality of those who invested with a cautionary approach for the long term.  What went wrong was a system that fuelled speculative greed.  A system that encouraged the population and big organisations to treat real estate as nothing more than a vehicle to trade with a get-rich-quick mentality. A system that encouraged lending of “non-recourse” “get out of jail free” 100%-plus loans granted to unqualified recipients.  The irresponsible lumping of mortgages into “pools” to be purchased, sold, sliced and traded, thereby treating property as nothing more than a company share with the unrealistic expectation that what goes up never comes down.  The result was understandably cataclysmal.
You will see it stressed with regularity by Property Observer’s resident panel of authors that real estate is a fantastic investment if basic rules are applied – the first being the rule of long-term holding.  We have fees associated with the purchase of real estate that make selling and buying expensive and therefore not encouraged.  As much as real estate is a sought-after form of equity – particularly in the inner-city suburbs, where land is now just a game of musical chairs between a growing number of players – it’s not one that gains quick profit from “flipping” (buying/renovating and immediate selling) <a target="_blank" href="https://www.propertyobserver.com.au/victoria/the-block-auction-a-dose-of-reality-which-sydney-finally-loved/2011082251240">as programs like The Block on Channel 9 have duly demonstrated</a>.
It’s not akin to a company that can increase its customer base considerably without length of time being a critical factor.  Rather, it’s a steadily climbing asset dependant on many economic factors – the most fundamental being peoples need for it.  Only those vendors who have owned their acquisitions for 10-plus years will have experienced substantial returns (even taking into account the recent downward phase of the property cycle.)  Furthermore, they have been protected from any US-style “crash” by Australia’s prosperous status of low unemployment, regulation of loans, a growing population and a sunny long-term economic outlook.
It must always be remembered that our best insurance against a housing crash is not an investor, but an owner-occupier – they make up 70% of home owners. In recent times owners, not suffering under any prospect of forced sales, have underpinned the overall value of the market.  Over the past year, those who have needed to sell have – in due course – dropped expectation (in some instances lowering prices by as much as 15% to 20%).  However, even though we bandy around that popular adage of a vendor needing to meet the market – we might as well be talking to the wall, because owners – most of whom are in gainful employment – simply don’t need to meet the market, they’re perfectly happy to hold until the next boom totters along.  So, all in all – so far as Australia’s concerned – property’s been a pretty safe bet – but maybe the tables are starting to turn?
Thus far, we’ve been used to measuring patterns of growth over a number of years, not the volatility of days. But this is all about to change with the introduction of <a target="_blank" href="https://www.propertyobserver.com.au/residential/rp-data-rismark-march-1-daily-index/2012030153640">Australia’s first “daily house price index suite”</a>, which will track timely market movements (without being unduly influenced by compositional biases).  It’s been put together by the most accurate real estate data provider we currently have – RP Data/Rismark.
Most property graphs show smooth lines of movement taken from data updated on a monthly or quarterly basis.  They have not been subject to the more volatile day-to-day movements that show clearly to all who work in the property.  By updating property sales as and when they are recorded, the line on the graph starts to look a little more unstable and provides a fascinating insight into a microscopic view of market sentiment.
However, while daily house price movements avoid the violent volatility associated with various companies floated on the share market, they have the potential to inspire a similar reaction.  Furthermore, the index has been produced with the prospect of being openly traded, thereby swinging it into the hands of large overseas hedge funds that want to start betting (hedging) against future movements our property market may take.  It’s not only large institutions who can play “casino” with the daily index, it’s everyday folk like you and me who don’t want to lay down a large deposit on the real thing (which is a growing demographic).
No one can be against the concept of having increased transparency in market movements.  Australia’s residential property market is worth about $4 trillion, so access to reliable timely data is critical for institutions such as the RBA. However, encouraging anyone to view property as something to take short-term bets upon is moving away from the fundamental understanding of property’s primary purpose, which is essentially a place for shelter. This has the dangerous potential to bubble and topple under a mentality that rides on “get-rich-quick” speculation.  Even though many will argue that on the current view, volatility is marginal compared with a day’s ASX trading, it does not take away the fact that we’re encouraging people to gamble on something that should never be used for such a purpose.  We’re effectively opening the gates to a different and dangerous mindset.
As I said above, the property market is underpinned by an owner-occupier mentality, but easily tradeable assets are not.  Furthermore, investors make up an increasingly dominating proportion of certain volatile sections of our real estate market (principally high rise and mining towns) and even in the “nothing safer than bricks and mortar” side of things they’ll be quick to bail if Australia hits that sticky point. Instead of looking at graphs, we should be encouraging real ownership by providing greater promotion of solid well qualified models such as the first-home savers’ accounts.  It might be an old-fashioned view, but it’s a much safer one that taking short-term bets in a property casino.
For those tempted, feel free to lay your chips on the table because based on the information so far, it doesn’t look overly dangerous.  However, I would heartily encourage you weigh long-term risks carefully.
Catherine Cashmore is senior buyer advocate, property manager and market analyst for Elite Buyer Advocates and also Channel Ten’s property expert on The Circle.  With extensive experience in all matters regarding real estate, <a target="_blank" href="https://www.elitebuyeradvocates.com.au">Elite Buyer Advocates</a> successfully purchases, assesses and negotiates more than $200 million worth of property each year for clients. 
 
 
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Australia's housing market could crash if property's primary purpose is forgotten: Catherine Cashmore

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Jellis Craig presents the change in house and unit prices in the inner-Melbourne municipality of Stonnington during 2011.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/stonmap.jpg"><img src="/images/stories/stonmapthumb.jpg"></a>
Source: <a href="https://www.jelliscraig.com.au/" target="_blank">Jellis Craig</a> Annual Property Review
Numbers in brackets indicate a decrease
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Annual median dwelling price changes in Stonnington: Jellis Craig

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The Housing Industry Association says it is looking forward to meeting with new Federal Housing Minister Brendan O’Connor to “discuss the many pressing policy areas that need to be addressed to revitalise the residential housing industry”. 
“Housing is a staple of life that drives both economic and social outcomes. Yet Australia is facing both a housing shortage and affordability challenge, which needs urgent attention.” says Graham Wolfe, chief executive of the HIA. 
O’Connor was named the new Minister for Housing and Homelessness as well as Small Business Minister as part of the cabinet reshuffle announced by Prime Minister Julia Gillard following her defeat of former foreign minister Kevin Rudd in the Labor Party leadership vote. 
The HIA welcomed O’Connor’s appointment as well as the combining of the two portfolios.
“The Australian housing industry is made up of around 85% small business,” says Wolfe. 
“By combining these two portfolios, Minister O’Connor has the unique opportunity to promote much needed policy initiatives and programs across small business and residential building. 
“It is also important that the housing portfolio has remained in cabinet, and it is likewise pleasing to see that small business has now been elevated to this level.” 
“The housing industry puts around 400,000 Australians into new homes every year and creates thousands of new jobs.” 
Lobby group Australians for Affordable Housing (AAH) also welcomed O’Connor’s appointment. 
It also applauded the move to retain the role of housing minister as a cabinet position. 
“This is recognition that housing is central to the wellbeing of every single Australian household and should be a concern for the highest levels of government,” says AAH campaign manager Sarah Toohey. 
“Housing is the biggest cost-of-living issue in Australia, and with one in 10 households in housing stress it is clear that our current housing system is failing too many people. 
“We need a national housing plan, to deliver affordable housing, right across the system, from public and community housing to home ownership. Retaining a single housing minister in cabinet is an excellent first step towards making sure the housing system works for everyone. 
“People in Minister O’Connor’s own electorate of Gorton, know too well the problem of housing affordability. Figures released by AAH late in 2011 show that the Local Government areas of Melton, Hume and Brimbank (which are either in or surround the seat of Gorton) are all in the top five areas of housing stress in Victoria,” says Toohey.
 
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Industry groups ask new Federal Housing Minister Brendan O’Connor for nationwide housing plan

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Recently I found myself thrown back into the rat race that is the Sydney rental market – as a hopeful renter. While I am an investor myself, I am actually not an owner-occupier at the moment, choosing instead to rent with a friend to both save on costs enjoy a change of scenery. But due to personal and work-related reasons, I'm looking to relocate to the other side of Sydney. So, I've once again found myself at mercy of leasing estate agents. And aren't they a tough lot! 
But this time around I bring with me a different perspective, one that has prompted me to write today to would-be and active investors out there, on the importance of tenancy selection. Both I and my flatmate-to-be are in our late 20s/early 30s and have long-term employment with decent salaries. We each have assets and a flawless rental tenancy history. We applied for a number of properties using as many tactics as possible, including the usual offering more money, providing more I.D, rental ledger and references, etc. than required in our application process. Where possible we also had our applications pre-completed, so upon favourable viewing we were able to submit them on the spot. 
For most of these rental applications, we weren't successful. Once we got over the usual “Why didn't they accept us – we're perfect tenants!” emotions, we did end up sourcing a place to live. 
However, the process made me reflect upon my own tenant selection experiences. Sure, as an investor you've likely taken out insurance to protect against tenant property abuse and loss of rental revenue, but finding good tenants offers so much more to an investor than just this. The “right” tenant will be longer term (ideally you'll get a good two or three years), saving you money on vacancy periods, stress and time wastage of finding new tenants, and above all, peace of mind. 
So I thought to myself, why not interview some of the agents who'd rejected our application in favour of others, to see what insights I can gain on the perception of what makes a “good tenant” by landlords in the Australian market? And what did I find? Some surprising things, some not so surprising. As a landlord myself, it came as no surprise to hear the agent say “Even though you offered $20 more per week in rent, the owner selected other tenants”. This is a strategy I encourage to all investors. If your leasing estate agent is worth his salt, after the open home, hi will have received a solid volume of applications, some of which will offer more money per week. Never let this be the defining factor to tenant selection. 
Instead, you should be looking for other things. Stability and longevity of income/revenue stream provides you the security and stability that the tenant won't skip town, leaving you months behind in mortgage repayments. This is important yes, but honestly, insurance can protect you for that. What insurance isn't so great at protecting against is vacancy. Treat vacancy like the plague – it is effectively “bad debt”. So look for applicants who stack up but also request longer-term leases, and applicants who have been in a previous rental for at least two years and a job for at least four. 
So, initial disappointment for me paved the way to logic and then self-assessment/reflection. Experiences you have “on the other side” of property investment can influence you and bring new perspectives. And that is something we can all take note of.
Cameron McEvoy is a property investor and maintains a blog, <a target="_blank" href="https://propertyspectator.blogspot.com.au/">Property Spectator.</a>
 
 
 
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