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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[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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Anyone following the slew of property market data that has been released of late could be forgiven for being more than just a little bit confused as to how capital city housing markets have truly performed in the last quarter and over the past year.
This week the <a target="_blank" href="https://www.propertyobserver.com.au/residential/capital-city-house-price-slide-slows-in-december-quarter-with-melbourne-worst-performer-abs/2012020153211">ABS put out its capital house price for the December quarter</a> to round off a quartet of research houses (the others being RP Data-Rismark, Residex and Australian Property Monitors) to provide benchmarks on how our key property markets are performing.
While clearly each uses its own statistical methodologies in determining house price changes and median values, surely no property investor (no matter how savvy) has the time to study complex mathematical formulas and make an assessment as to which figures are the most accurate.
Two analysts looking at the<a href="https://www.propertyobserver.com.au/residential/december-quarter-housing-data-roundup-four-sets-of-statistics-give-divergent-outlooks/2012020153215" target="_blank"> </a><a href="https://www.propertyobserver.com.au/residential/december-quarter-housing-data-roundup-four-sets-of-statistics-give-divergent-outlooks/2012020153215" target="_blank">different data sets</a> could come to quite different and legitimate conclusions about where a particurlar market is heading.
Take, for example, the case of Melbourne house prices.
Looking at the different data sets, one could come to believe that the house prices in the city are rebounding, slowly declining or in rather steep decline.
Australian Property Monitors says Melbourne prices rose 1.1% over the December quarter to be down only 3.1% for the year; Residex says they fell 1% over the quarter and are down 3.28% for the year and RP Data-Rismark says they fell 1.8% for the quarter and are down 6.8% for the year.
The research houses also come to very different conclusions about median house prices.
There’s more than a $100,000 difference between the RP Data-Rismark’s Sydney median house price of $535,000 and APM’s Sydney median house price of $637,000.
Darwin has a median house price is as high as $579,000 (according APM) or as low as $484,500, (according to Residex).
And then there are the revisions, which usually come a month or so after the data is released which can change the picture yet again.
For example, RP Data-Rismark revised November capital city house price growth from 0.1% to 0.4% (a four-fold increase), with economist Christopher Joye expecting Melbourne and Perth figures to improve when fuller house price data is released by tardy state valuer generals.
No doubt, property spruikers will welcome the divergence in data – they can just pick and choose which figures to quote at their next investment seminar and paint a thoroughly convincing picture.
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lschlesinger-FZcF9M3vE6

Divergent housing data raises more questions than answers

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The rate of decline of capital city house prices slowed in the final quarter of 2011, according to December quarter ABS House Price Index.
Preliminary estimates show the price index for established houses for the weighted average of the eight capital cities decreased 1% in the December quarter 2011 following a decline of 1.2% in the September quarter.
Melbourne and Adelaide replaced Brisbane as the weakest capital city housing markets, with both recording a 1.6% drop over the quarter.
<img src="/images/stories/absfeb11.gif">
Source: ABS
For the year (December 2010 to December 2011), capital house prices are down 4.8% led by Brisbane (down 6.7% for the year), Adelaide (6.4%) and Melbourne (6.1%).
Canberra (-2.6%) and Sydney (-2.7%) were the strongest performers over this period.
Perth was the strongest performer of the major capital city markets with a 0.5% increase a strong turnaround from a drop 1.3% recorded in the September quarter.
There were also house price gains in the smaller markets of Hobart (0.8%) and Canberra (0.7%)
Sydney house prices declined by 1% over the quarter.
The pace of house price depreciation in Brisbane slowed from a drop of 2.5% in September to a decline of 1.3% in the December quarter.
<img src="/images/stories/absfeb12.gif">
In the previous September quarter survey, Brisbane was the weakest capital city market (-2.5%), followed by Melbourne (- 1.7%) and Perth (-1.3%). Sydney (-0.2%), and Darwin (-0.4%) were the strongest performers.
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Capital city house price slide slows in December quarter, with Melbourne worst performer: ABS

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Housing market sentiment improved in the December quarter, with market participants now forecasting a modest 0.4% drop in house prices over 2012 compared with expectations of a 1% annual decline in the September quarter, according to NAB’s Quarterly Australian Residential Property Survey.
The outlook is brightest for New South Wales and Western Australia, with respondents forecasting growth of 0.8% and 0.1% respectively.
However, expectations for WA have dropped significantly since the last survey (the previous forecast was for growth in WA of 1.5%), which respondents attributed to “global uncertainty impacting on buyer confidence”.
According to NAB, the relative strength in NSW market reflects “the underlying lack of housing and associated costly rental market”.
The national average is being be held down by continued price weakness in Victoria (-1.3%), South Australia/Northern Territory (-1.2%) and Queensland (-1%).
Click images to enlarge
<a href="/images/stories/nabfeb11large.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/nabfeb11.gif"></a>
<a href="/images/stories/nabfeb12.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/nabfeb12thumb.gif"></a>
The market is forecast to perform more strongly in 2013, with the NAB survey forecasting national house prices increasing by 1.2% by December 2013, compared with the previous quarterly forecast of 0.5% growth for the same time period.
By 2013, Western Australia is forecast to be the strongest market, with house price growth of 3.2% while Victoria is expected remain the weakest market with growth of just 0.3%. This is still a marked turnaround from a drop of 2.1% forecast in the previous survey.
Demand for all types of existing property strengthened slightly in the December quarter, while prospects for capital growth continue to be significantly stronger in the more affordable sub- 500,000 market than in the higher end of the market.
However, inner-city housing remains the only property type where demand is considered to be marginally “good”, led by strong demand in NSW. Demand for all other property types was categorised as “fair”.
Click to enlarge
<a href="/images/stories/nabfeb13.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/nabfeb13thumb.gif"></a>
First-home buyers’ share of existing property rose slightly to 20% (up from 18% in the third quarter) “suggesting that lower interest rates and improved housing affordability may also be drawing new buyers into this market”.
“First home buyers were seen as being most active in NSW and least active in SA/NT,” says NAB.
The survey found that demand from Australian resident investors for existing property was unchanged at 21%, although investment demand was somewhat stronger in WA and Queensland. “Our survey suggests that these trends will continue over the next year, with a small fall in first-home buyer demand being offset by slightly stronger investment demand,” says NAB.
Overall, the NAB’s Residential Property Index – which is a combination of house price and rental expectations – moved back into positive territory in the December quarter with a reading of +1 point, after negative readings of -14 points in the third quarter and -5 points in the second quarter.
“This turnaround was supported by an improvement in overall market conditions in all states,” says NAB.
NSW (+31 points) and WA (+18 points) were the only markets recording a positive index with Victoria (-22 points) the weakest market, though up from -35 points in the third quarter.
Sentiment also improved in Queensland, though still in negative territory, rising from -40 in the September quarter to -18 in December.
According to NAB, the state is still feeling the impact from last year’s natural disasters.
The quarterly survey, which NAB has been conducting since April 2010, is based on a large external panel of respondents comprised of real estate agents/managers, property developers, owners/investors, asset/fund managers and valuers. 
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Housing market sentiment up in December quarter, with NSW brightest: NAB

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New home sales fell in December 2011, according to the Housing Industry Association.
The survey of Australia’s 100 largest builders recorded a 4.9% decline in seasonally adjusted sales during the month.
“New home sales were essentially flat over the December 2011 quarter, inching up by 0.2%,” HIA chief economist Dr Harley Dale says.
Building approvals will record a fall for the December quarter and new home loans will likely do the same, Dale says.
“Leading new housing indicators therefore ended 2011 on a weak note.”
<img src="/images/stories/hiafeb1.gif">
Detached house sales fell by 7.7% in December 2011 but rose by 2.1% over the quarter. Multi-unit sales jumped by 29.4% in the final month of last year, but dropped by 15.7% over the December 2011 quarter.
“The intensification of bad news regarding Europe, question marks over labour market prospects in Australia, and avoidable delay and uncertainty as to whether banks were going to pass on the Reserve Bank’s second rate cut conspired to drive a fall in new housing contracts as the holiday season approached,” Dale says.
He suggests the weakness revealed in the HIA - JELD-WEN New Home sales report reflects a combination of subdued demand and an excessive cost base driven by high and inefficient taxation.
“Short-term monetary and fiscal policy stimulus together with a revitalised program of longer-term structural reform is required in early 2012,” he adds.
The volume of detached house sales declined in three out of five mainland states in December 2011, falling by 4% in New South Wales, 10.5% in Victoria and 20% in Queensland.
Sales increased by 12% in South Australia and by 6.8% in Western Australia.
 
 
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New home sales fell nationally in December 2011 but picked up in South and Western Australia: HIA

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The prestigious Aria Restaurant premises – occupying the prized position overlooking Sydney Opera House – is for sale through Colliers agent Stephen Kovacs.
The information memorandum indicates the restaurateurs Matthew Moran and Peter Sullivan retain an ongoing 10-year lease, which was signed in 2009.
The vendors are well-known eastern suburbs property investors Greg Shand and Danny Goldberg.
It’s a two-level strata space in the Opera Quays precinct underneath the Bennelong Apartments on Macquarie Street.
<img src="/images/stories/aria1.jpg">
The current annual rental is put at $889,000, plus an envisaged $319,000 annual turnover rental given the estimated $14 million turnover.
The turnover rent is based on recent trading figures arising from an 8% turnover rental above $10.5 million turnover, and at 10% above $12.7 million turnover.
<img src="/images/stories/aria2.jpg">
After expenses its projected net income for the landlord is put at $1.01 million during 2012.
The main outgoings are $106,000 in strata levies, $42,000 in land tax and $39,000 in council rates.
<img src="/images/stories/aria3.jpg">
It comes with 694 square metres of space, with the bulk of it being its 577-square-metre mezzanine level.
Depreciation items have a written down value of $655,000.
Aria, which has a two coveted chef’s hats, has been trading since 1999.
Offers close March 6 with Stephen Kovac.
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Landlord lists Aria Restaurant premises, but the two-hatted chefs are staying put in the kitchen

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What is the best news Australian residential property owners and share investors have received in the first month of 2012? That mainland Chinese have not deserted the inner-city apartment markets of Sydney and Melbourne.
You will remember that last November, Chinese purchases of inner-Sydney and Melbourne apartments off the plan suddenly halved (<a target="_blank" href="https://www.propertyobserver.com.au/economy/the-sting-in-a-china-property-tale/2011112252489">The sting in a China property tale</a>, November 23).
The 2012 return of the Chinese to inner-city apartment buying will underpin the brighter figures we are seeing in the overall Australian dwelling market, as explained by Christopher Joye (Sydney housing streaks ahead of national market January 31).
Clearly the Chinese feared the severity of the funding squeeze back home, which made their Australian adventures so much more risky.
There was danger that if the squeeze on domestic China funding had gathered momentum, then the Chinese apartment downward trend would have accelerated, affecting the wealth of many Chinese property owners. 
Almost certainly that would have translated into further reductions in new Australian contracts. But if the China squeeze was severe enough, it might have also caused a large number of Australian partly-completed apartments – where the Chinese have paid 10% deposits – coming onto the market, because the Chinese walked away from the contracts as Australians did on the Sunshine Coast. And almost certainly, if events in China caused a pullback on Chinese buying of our apartments, then it would have also been reflected in much lower commodity prices as exports slowed. In turn that would have affected the share market. The man who exposed this danger, Australia's largest apartment developer, Harry Triguboff, says that while January is always a confusing month because there are two New Year celebrations, the Chinese are back in the Sydney market. Moreover, Sydney rental yields are rising. Australians were not major buyers of inner-Sydney apartments in 2011 but are now making inquiries. Triguboff says that another half a per cent fall in interest rates will bring Australians back in the market. Of course, while a half a per cent fall in the Reserve Bank’s official rate is on the cards for the first half of 2012, the turmoil in Europe has put the cost of overseas borrowing by the big banks above local Australian term deposit rates (<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/Interest-rates-deposits-RBA-house-prices-Mike-Hirs-pd20120127-QVQZQ?opendocument">Don't bank on mortgage rate cuts</a>, January 27). That means that mortgage rates will not fall by the same amount as official interest rate falls. As I have pointed out before, the Australian government can borrow overseas close to two per cent below the rates banks pay so, if they want to, the Australian government can borrow and lend the money to Australian banks, lower Australian rates, and take a nice profit on the way. But the Chinese don’t need Australian money to buy apartments and they are beginning to understand that landlords in Australia gain a much greater yield than those in China.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
For more on Chinese investment in Australian property, <a href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets" target="_blank">download our free eBook.</a>
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Harry Triguboff says Chinese buyers back in Sydney market in January: Gottliebsen

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There is something a little asymmetric about the RBA's response to a period of expected high inflation and one characterised by, say, target (i.e., not even low) inflation. Once the RBA lifted the cash rate to “mildly restrictive” in late 2010, it continued to forecast serious inflation problems right out to 2013. It was quickly confronted with those inflation challenges in both the first and second quarters of 2011. As previously parsed here, it got the yips and decided not to touch its rates lever (having, by its own admission, teetered on the precipice just before the August board meeting). At the end of 2010, and all through the first half of 2011, the governor of the RBA, Glenn Stevens, told parliamentary inquiries and anyone who would listen that future rate hikes would be few and far between. Words to the effect: expect long pauses between each increment higher. This is what the financial markets were pricing, and he did not want to disavow anyone of it. As it happened, we got no upward movement at all. We will only really learn in 2012 whether the bank has presided over a second major policy-setting error – the first being the 2006-2008 episode – by getting behind the curve on consumer price pressures. When the RBA is forecasting, say, trend or slightly less than trend economic growth, and inflation at or near the mid-point of its 2% to 3% target band, it has not hesitated to cut interest rates pre-emptively, not once but twice, into unequivocally stimulatory territory. After almost every economic metric it referenced when it last met in December has improved, and 2011 core inflation has remained stubbornly in the top half of its target band (not the bottom half as many hoped), a third, consecutive rate cut in February would imply a highly reactionary and pre-emptive effort to ward off slight softness in the Aussie economy. At a time when Australia's unemployment rate remains at a stunningly low 5.2%. It would suggest to me that the RBA has an asymmetric double standard when responding to inflation. It finds it hard to get rates high enough when inflation rises given community and political resistance to restrictive rates and the extremely dovish complexion of its board, which is dominated by private sector business leaders. But it finds it awfully easy to cut rates at the first sign of a deceleration in inflation – because, of course, all these vested interests naturally embrace lower rates. Cutting rates is an easy thing to do. The test of a central bank, as the Bundesbank knows, is keeping rates where they ought to be in the face on assorted community pressures. Glenn Stevens and Phil Lowe: this, my friends, is your legacy to make or break.
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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February interest rate countdown: Is the RBA weak at the knees?: Christopher Joye

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<img src="/images/stories/darwin.gif">
Median unit price of $395,000, reflecting a 6% rental yield
 
<hr>
  
<img style="border-style: initial; border-color: initial;" src="/images/stories/brisbane.gif">
Median unit price of $375,000, reflecting a 5.6% rental yield
<hr>
 


<img src="/images/stories/canberra.gif">
Median unit price of $420,000, reflecting a 5.5% rental yield 
 
<hr>
 
<img style="border-style: initial; border-color: initial;" src="/images/stories/sydney.gif"> 
Median unit price of $445,000, reflecting a 5.2% rental yield
 
<hr>
 
<img style="border-style: initial; border-color: initial;" src="/images/stories/perth.gif">
Median unit price of $395,000, reflecting a 5.2% rental yield


 
<hr>
<img src="/images/stories/hobart.gif">Median unit price of $275,000, reflecting a 5% rental yield
 
<hr>
<img src="/images/stories/adelaide.gif"> 
 Median unit price of $320,000, reflecting a 4.7% rental yield 




 
<hr>
<img src="/images/stories/melbourne.gif"> 
Median unit price of $425,000, reflecting a 4.3% rental yield




 
<hr>
<img src="/images/stories/allcapitals.gif"> 
Median unit price of  $420,000, reflecting a 5.1% rental yield
 
The RP Data-Rismark median price is based on settled sales over the December 2011 quarter. Indicative rental yields are as at December 2011.


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Residential investment property: Capital city unit rental yields from best to worst

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<img src="/images/stories/darwin.gif">
Median house price of $490,000, reflecting a 5.6% rental yield
 
<hr>
 


<img src="/images/stories/canberra.gif">
Median house price of $535,000 reflecting a 5% rental yield
 
<hr>
<img src="/images/stories/hobart.gif"> 
Median house price of $340,000 reflecting a 5% rental yield 


 
<hr>
 
<img src="/images/stories/brisbane.gif">
Median house price of $435,000 reflecting a 4.8% rental yield


 
<hr>
<img src="/images/stories/sydney.gif"> 
Median house price of $535,000, reflecting a 4.5% rental yield


 
<hr>
 
<img src="/images/stories/perth.gif">
Median house price of $465,000, reflecting a 4.5% rental yield

 
<hr>
<img src="/images/stories/adelaide.gif"> 
 Median house price of $385,000, reflecting a 4.3% rental yield 


 
<hr>
<img src="/images/stories/melbourne.gif"> 
Median house price of $485,250, reflecting a 4% rental yield


 
<hr>
<img src="/images/stories/allcapitals.gif"> 
Median house price of  $470,000 reflecting a 4.4% rental yield
 
 
The RP Data-Rismark median price is based on settled sales over the December 2011 quarter. Indicative rental yields are as at December 2011.


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Residential investment property: Capital city house rental yields from best to worst

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Melbourne and Brisbane have assumed the “mantelpiece” of Australia’s poorest-performing capital city housing markets, according to RP Data senior research analyst Cameron Kusher.
The December Rismark-RP Data Hedonic house price index shows that Melbourne dwelling values are down 6.1% for the year and the same amount from their end of 2010 peak, while Brisbane values are down 6.8% for the year and 8.7% from their end of 2007 peak.
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Kusher says both markets are now undergoing corrections after extended periods of capital growth.
“Melbourne had a very good run between 2007 and the middle of this year,” Kusher told the Australian Financial Review.
“We are seeing values in Melbourne declining fairly quickly. We expect the market to remain soft over the next 12 months, if not longer.”
Kusher says while the rate of decline in Brisbane has slowed somewhat, “dwelling values have not done much since the end of 2007, when values increased that year by about 35%”.
“Much like Perth did, Brisbane is undergoing a correction,” Kusher says.
Sydney was the strongest housing market in 2011, with values down just 0.3%, and Kusher tips Sydney to continue to be the best-performing market in 2012.
“[In Sydney] there are still problems with getting new supply out of the ground. There is still strong demand, even though population growth has slowed across the board – a lot of people are still moving to Sydney,” Kusher says.
According to Kusher, Perth has undergone something of a turnaround in the last quarter of 2011 and is now no longer performing worse than the Brisbane, as it has during the last four years.
Kusher also provided some insights into the oft-neglected Adelaide market, which saw a 0.1% drop in dwelling values in December and a moderate 2011 decline of 4.4%.
“The Adelaide market is fairly flat… The market tracks fairly closely what is going on in other capital city markets,” he says.
Taking a look at the market as a whole, Kusher says there is unlikely to be much property value growth over 2012.
“There may be some slight growth if we get further interest rate cuts but any growth will be below the rate of inflation,” he says.
“A market like Sydney will continue to plod along quite well comparatively speaking and later in 2012 we will start to see some improvement in the Brisbane market.
“[Overall] the performance of the housing market in 2012 will be slightly superior than 2011.”
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