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


Joel Robinson

Lowe Living launches Jardin House in Camberwell

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


The Walden pairs house-scale living with North Sydney connectivity

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


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

ACT abolishes stamp duty for first home buyers

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


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

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


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

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


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

<html><body>
<div>Total construction work done in Australia has declined by 3.7% over the past year in seasonally adjusted terms. Let's take a look in two short parts at what this actually means.</div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Part 1 - Total construction</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
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<div>Total construction work done in the third quarter of 2015 declined by 3.7% to $49 billion on a seasonally adjusted basis. </div>
<div> </div>
<div>Despite a lift in residential building work done (+2.0%), there was a decline in non-residential building (-1.9%), and as widely expected engineering construction fell sharply (-7.3%) to be -11.7% lower over the year.<br><br>The green shaded area which records construction work done in chain volume measures terms shows that the unwinding of the resources construction boom has a way to run yet. </div>
<div> </div>
<div>Quarterly engineering construction work done has declined from a peak of $34 billion to around $25 billion, but given the weakness in commodity prices - and given that in the same quarter a decade ago activity was just $13 billion - the decline surely has a long way to go.</div>
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<div>
<div>The decline in engineering construction this quarter was driven by an overdue reversal in Western Australia, and to a lesser extent a decline in Queensland, as mega-projects begin to wind down. </div>
<div> </div>
<div>Activity in the Northern Territory continues to track at a historically exceptionally high level of $2 billion, accounted for primarily by the massive Ichthys LNG project.</div>
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<div><a href="/images/2015/11/26/A2.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/11/26/A2.jpg" alt=""></div>
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<div>
<div>While non-residential building and major renovations have contributed little of significance to the rebalancing of the economy, new house building and "other residential" building (apartments, units, townhouses) have effectively done everything that could have been expected of them in response to low interest rates.</div>
<div> </div>
<div>Total building work done of $24 billion represents a solid 6.4 per cent increase over the year, with no thanks to the non-residential sector.</div>
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<div><a href="/images/2015/11/26/A3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/26/A3.jpg" alt=""></div>
<div> </div>
<div>
<div>These high level numbers should present an idea of some of the challenges facing the economy given that housing starts are projected to decline from pretty much now, while the decline in engineering construction may only be half way done. </div>
<div> </div>
<div>Even now I'm still not sure anyone really has a satisfactory answer for what is going to fill this gaping hole while commodity exports ramp up. Given the expansion of Australia's population the obvious answers should come under the heading of "infrastructure" but if there's a coherent plan for that being discussed anywhere I haven't heard of it.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 2 - Building work by state</span></strong></div>
<div> </div>
<div>Victoria has been the king of building work through this cycle, with New South Wales following in second place, these states being home to the two capital cities with the strongest dwelling price gains.<br><br>Indeed, Melbourne is a fine illustration of why it is important for market analysts to pay close heed to both demand and supply factors when forming their views. The Victorian capital has been building both houses and units like billy-o since 2010 - the source of a thousand crash predictions - yet vacancies and stock on market are both falling, and the market seems to be gathering momentum again.</div>
<div> </div>
<div><a href="/images/2015/11/26/A4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/26/A4.jpg" alt=""></div>
<div> </div>
<div><span>While there has been a reasonable response from the house building sector since 2012, approvals data shows that this market is running out of puff for the cycle, and has probably all but peaked already.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/26/A5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/26/A5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>On the other hand the "other residential" sector continues to surge to record heights (this has been visible in the largest cities to anyone with a working pair of eyes...always knew those gauges were dodgy!), the new high rise building boom being the defining dynamic of this market cycle.</span><br><br><span>Building work in this sector is at historical highs in Victoria, New South Wales, Queensland, and Western Australia, with over-building of high rise apartments evident in parts of Brisbane and Melbourne.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/11/26/A6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/26/A6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>If you've been following this blog for the last couple of years, you will appreciate that the systemic risks in the housing market are obviously apparent and buried within this final chart. Would-be market shorters should dig deeper here.</div>
<div> </div>
<div>There have long been indicators of overbuilding in the high rise markets of inner city Melbourne and Brisbane, with a high proportion of new build sales being made offshore, especially to China.</div>
<div> </div>
<div>The storm clouds were gathering for off-the-plan buyers well before APRA's intervention, but recent tightening measures to lending procedures could well be the factor which nails on the correction for this sector. </div>
<div> </div>
<div>How many buyers who put down trifling holding deposits will fail to settle if lenders demand a 20 per cent deposit prior to completion? Perhaps up to a third could be in trouble, and will be juggling personal finances as we speak. </div>
<div> </div>
<div>Could get messy. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Construction trends (off-the-plan mess) Pete Wargent

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<p><span style="line-height: 1.3em;">Property Bloom has been developing property in New South Wales Hunter Region for almost fifteen years now and it still amazes me the sheer potential this region has to offer. </span></p>
<p>As we near our one hundredth property development, I took some time to reflect on this magnificent region after some light bedtime reading I came across this week. I've shared some of these research links with you.</p>
<p>The Hunter Region has everything going for it; beautiful environment, awesome beaches, fabulous mountain ranges and bush settings, wineries, diverse economy, dynamic industry, vibrant restaurant scene, affordable housing and amazing people and community. It continues to reinvent itself and there is now great focus on making it an information technology and professional services centre. </p>
<p>Did you know that the Hunter is the first Australian region to measure it's innovation performance on a world scale?  </p>
<p>Measurements included:</p>
<p>Introducing new or significantly improved methods and processes <br> Introducing marketing or organisational innovations<br> Innovative businesses collaborating with others <br> Businesses innovating in-house</p>
<p>You can check it out <a href="https://rdahunter.org.au/initiatives/2014-hunter-innovation-scorecard" target="_blank">here</a>.</p>
<p>This week the NSW Government released its new twenty year Draft Plan for Growing  the Hunter City and it confirms all that I hoped for and more.  Hunter City is defined as ..." the metropolitan area extending from Toronto and Swansea in the south to Raymond Terrace in the north and from Newcastle Harbour in the east to Lochinvar in the west. It has emerged from the expansion of Newcastle and its surrounding towns and has a rich history and strong growth prospects for the future." </p>
<p>It has identified Newcastle or the Hunter City as they've coined the area, as Australia's next major city. Of course Newcastle is already a Australia's seventh largest city by population according to population experts </p>
<p><span style="line-height: 1.3em;">When you are researching an area in which to invest in, then reading these types of government plans is key to getting a real feel for what is planned for the area. </span></p>
<p>The draft plans released identify visions, goals and actions that will guide the strategic planning of the region over the next twenty  years.  They aim to:</p>
<ul>
<li>protect the region’s most important asset, the environment</li>
<li>grow and diversify the economy to create local jobs</li>
<li>create thriving, liveable centres</li>
<li>deliver greater housing choice</li>
<li>in collaboration with councils, establish a committee to drive the coordination and delivery of the actions in the Plan. </li>
</ul>
<p>The public have been invited to have a say in this direction and you can do that here: https://www.planning.nsw.gov.au/hunter</p>
<p> Maybe Property Bloom will be celebrating our century of property development sooner than expected, based on what I read about the plans for Australia's next major city; Hunter City. </p>
<p><span style="line-height: 1.3em;"> </span></p>
<p><span style="line-height: 1.3em;"><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em> </span></p>
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Where is Australia's next major city? Jo Chivers

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<div>Last week Reserve Bank Governor Stevens disclosed that he had discussed with his underlings whether the Reserve should do away with its apparently precise central growth, unemployment and inflation forecasts, in favour of publishing only their 'fan charts' and ranges in tables. </div>
<div> </div>
<div>By way of an example the November Statement on Monetary Policy (SOMP) forecasts showed GDP growth returning to 3 to 4% by the year ended December 2017, with the unemployment rate forecast to decline gradually, but the fan charts show that even the 70 per cent confidence intervals are surprisingly wide. </div>
<div> </div>
<div><a href="/images/2015/11/30/RBA3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/30/RBA3.jpg" alt=""></div>
<div>Noting that accurate forecasting is impossible, Stevens lamented that even if even if the central lines were to be left off the fan charts altogether, those awkward commentator folk would simply back it of the charts, which seems rather unfair.<br><br>In short, the most powerful central bank or econometric modelling can't forecast accurately what will happen over any meaningful time horizon, and neither can you!</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Ponzi scheme</span></strong></div>
<div> </div>
<div>Also last week a macro market report hit the headlines likening the Australian property market to a Ponzi scheme. Australians would be forgiven for thinking that they've heard such warnings before, for the simple reason that they have, more or less continuously since 2001.<br><br>I haven't read the report in question, so am in no position to critique the content, but to his credit Lindsay David of LF Economics has previously made predictions that are <strong>specific, measurable </strong>and <strong>time-bound</strong>, and so his predictions can be judged accordingly. </div>
<div> </div>
<div>Co-author Philip Soos has nothing if not longevity, rolling out his crash predictions for such a long period of time that they are threatening to see off their fifth Prime Ministerial term of office (his views were expressed in some detail in the piece "Bubbling Over: The End of Australia's $2 Trillion Housing Party" which predicted a 40 per cent crash for housing values nationally). </div>
<div> </div>
<div><span>The last time anyone bothered to check the value of Australian dwelling stock had swelled to $5.8 trillion with the latest available data implying that $6 trillion is a shoo-in, probably before the end of the calendar year.</span></div>
<div> </div>
<div><a href="/images/2015/11/30/Resi1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/30/Resi1.jpg" alt=""></div>
<div> </div>
<div>
<div>To be fair, on the one hand dwelling prices have indeed corrected sharply in any number of mining towns and regions: Gladstone, Port Hedland, South Hedland, Dysart, and Moranbah spring to mind, and no doubt there are plenty of others.<br><br>On the other hand figures released by <em>Residex</em> at the end of last week showed that Sydney's median house price has increased from $668,000 at the end of 2010 to $1,058,500 by the end of October 2015, an increase of more than 58 per cent or nearly $400,000.<br><br>Buried under the emotive rhetoric Soos has made a number of robust arguments, in particular the illusory nature of housing shortages, which are seemingly apparent when the economy is humming along, but can wondrously vanish into thin air when market downturns happen.<br><br>These simple points highlight the perennial challenges facing macro property market research reports and forecasts: market timing and granularity.</div>
<br><strong><span style="text-decoration: underline;">Timing</span></strong><br><br><div>While macro research can identify downside risks and probabilities, history suggests that it is very difficult to forecast housing markets accurately over any meaningul time horizon.</div>
<div> </div>
<div class="separator">
<span>Famously Case &amp; Shiller called the US real estate bubble in July 2003 when its index read 142.99, yet the index ran all the way to 206.52 in July 2006 before reversing all the way back from whence it came to 134.07 in March 2012 (t</span><span>he latest Case-Shiller reading in 2015 showed the index to be 28 percent above the level it was tracking at the time of the original bubble call, while homeowners have continued to benefit from housing services throughout).</span>
</div>
<br><div>
<span>There would be similar tales in Northern Ireland where average house prices all but tripled from <span>£</span>88,000 to <span>£</span>226,000 between 2002 and 2007 before crashing all the way back to <span>£</span>125,000. An obvious bubble, sure, but the timing was difficult (if not impossible) to pick. The average price today has increased again to </span><span>£</span><span>162,000, approaching double the average house price in 2002.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/11/30/Ireland.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/30/Ireland.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>In London we have heard crash predictions for at least the past decade-and-a-half, while despite downturns and recessions house prices in some boroughs have tripled...and still there has been no crash.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/30/London.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/30/London.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>
<span>Few would disagree that parts of Australia's housing market are seriously expensive, but timing the downturns is rarely as easy as it appears in hindisght.</span><br><span><br></span>
</div>
<div>
<strong><span style="text-decoration: underline;"><span>Granularity</span></span></strong><br><strong><span style="text-decoration: underline;"><span><br></span></span></strong>
</div>
<div><span>The state level data shows that since September 2011, New South Wales (+57 per cent) and Victoria (+23 per cent) have accounted for 80 per cent of the increase in the total value of dwelling stock, while the figures for the June 2015 quarter showed that prices are declining in Western Australia and the Northern Territory.</span></div>
<div><span> </span></div>
<div><span>Click to enlarge</span></div>
<div><span><img src="/images/2015/11/30/Resi2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>The obvious point here being that there is no "Australian property market", rather a series of sub-markets which cover 9.6 million dwellings and demonstrate very different characteristics and fundamentals.<br><br>Having observed the history of bubble predictions Scott Sumner once concluded that: <br><em><br></em><em>"</em><em>If we notice market movements that seem to align with our initial forecasts we tend to pat ourselves on the back and assume the forecasts were correct. This is one of many cognitive biases that human beings are prone to. Pay no attention to bubble forecasts. They are useless. Indeed the entire bubble concept is useless."</em><br><div> </div>
<div><strong><span style="text-decoration: underline;">Risk markets</span></strong></div>
<div> </div>
<div>Last year Soos wrote that due to it having the strongest yields Darwin has the smallest property bubble, a theory which might hold some sway in an academic vacuum, but shows a worrying lack of understanding of the real world and what caused the Top End's housing boom in the first place. </div>
<div> </div>
<div>In fact, in my opinion at any rate, Darwin appears to be the capital city with by far the greatest risk of a genuine price crash, with rents now in freefall and vacancy rates rising sharply (cf. the illusory supply shortage identified by Soos himself). </div>
<div> </div>
<div><a href="/images/2015/11/30/SQM.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/30/SQM.jpg" alt=""></div>
<div> </div>
<div>
<div>Thin property markets such as Darwin with a relatively small population are more prone to shifts in dynamics at the margin, and as population growth switches into reverse gear by the end of this calendar year the results to the downside could be spectacular. </div>
<div> </div>
<div>Other high risk markets include any number of regional areas with a residual resources capex footprint, with mining capex now collapsing, while parts of inner city Melbourne and Brisbane are suffering from overbuilding of new apartments, with APRA's lending crackdown set to leave many off-the-plan buyers short. </div>
<div> </div>
<div>Even within capital city markets there are sub-markets which can be expected to experience diverging fortunes. </div>
<div> </div>
<div>For example, with the population still expanding rapidly, Sydney has a number of inner city markets for which demand is so high that any correction in prices will be met by a wave of new buyers. On the other hand, price inflation in some of the outer western Sydney locations over the past few years has been so far beyond absurd that even a 40 per cent correction might represent a neutral scenario.</div>
<div> </div>
<div>Property Observer recently reported on the report by LF Economics comparing Australia's housing market to a Ponzi scheme, which you can read here.</div>
</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Forecasting real estate myths: Pete Wargent

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<p>If there's one thing I've learnt from developing property, it's that you definitely need a 'can do' attitude.</p>
<p>This week, I've come across so many 'can do' people that it's inspired me to write about them.</p>
<p>So what's the definition of 'can do'?  It's basically, when everything goes to shit and things seem totally not doable, then a person with a 'can do' attitude always finds a way.  So today, this goes out to the many people who've I've crossed paths with and who've reminded me of how we really can achieve anything we put our minds and hearts to.</p>
<p>Meet Bob from Port Macquarie, he's an older gentleman who has been emailing me for the past five years on and off. Every now and then I'll get a message from Bob. He may be responding to one of my Property Observer stories or our newsletters, but he always asks different questions. Well, this week Bob decided to take a big step and to be the property developer he'd wanted to for some time. His purpose?  Well, it is to use the equity he creates to help his daughter buy her first property.</p>
<p>Then there's my step daughter who rang me today to tell me that whilst planning her thirtieth birthday party she'd also set herself the goal to buy her fourth investment property by the time she turns thirty. Her birthday is in May 2016 and my heart sang as she described the type of property she's looking for.  Go girl, you have the 'can do' attitude.</p>
<p>This goes out to a dynamic young couple who called my just a week ago and who were so focussed they made calculated decisions to be able to secure their development site within a week and are now Property Bloom clients. They explained they have their sites set on building their wealth quickly and they've asked me to find their next site soon. Did I mention they also have seven dual occupancy projects underway in Queensland?</p>
<p>This goes out to my little brother who celebrated twenty-five years in the NSW Police Force this week and whom I proudly watched being awarded special things from Commissioner Scipione. His focus and hard work has seen him rise through the ranks, raise a family and build their dream home.</p>
<p>This goes out to the client who was recently turned away from the four big banks, despite being on a $300,000 plus salary because of the ridiculous changes in their serviceability calculators. I referred him to Rams who more than welcomed his business and gladly offered him the finance he wanted for his development project with Property Bloom.</p>
<p>This goes out to my project manager who after approaching many lenders has used creative strategies to source finance for her first development project.  She has drive and determination which comes from her desire to become financially independent.</p>
<p>This goes out to my builder and the amazing staff who always use the 'can do' attitude which means we'll be completing many of our development projects before Santa arrives this year.</p>
<p>Finally, this goes out to all of you reading this who refuse to let life's ups and downs stop you from driving forward with your goals and dreams. You all have the 'can do' spirit. As the famous Walt Disney said "If you can dream it, you can do it." </p>
<p> </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Keeping a can-do attitude in the property game: Jo Chivers

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<div>An unusual looking Building Approvals data release from the ABS, which showed a seasonally adjusted 2.1% increase in monthly approvals to 18,900 (21.4% year-on-year) but the trend result declining by 1.8% for the month to 18,309 (to be up by just 6.8% year-on-year).</div>
<div>
<br>The trend result led to various reports of the building boom being over. Confusing? It certainly was, with the trend result evidently applying negative "tail weights" to the strong run of monthly approvals at the beginning of the year.</div>
<div> </div>
<div>Ultimately monthly building approvals figures will always and forever be lumpy, and the trend weights arguably add limited value here.<br><br>Below I have instead charted the original unadjusted data by month for houses and other dwellings - no seasonal adjustments and no trend weights, just a moving average whacked through the middle - so you can make your own mind up.<br><br>So, have building approvals peaked or not? In short, detached house approvals have probably peaked for the cycle. On the other hand townhouses, units and apartments may not <span style="text-decoration: underline;"><strong>quite</strong></span> yet have peaked, but given tighter lending criteria being applied for investors and waning rental yields, the peak of the cycle appears likely to be imminent.</div>
<div> </div>
<div><a href="/images/2015/11/4/BA.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/4/BA.jpg" alt=""></div>
<div> </div>
<div>
<span>The rolling annual data shows that over the year to September a record total of 230,296 dwellings was approved, with some 114,218 of them being attached dwellings, which is also a record.</span><br><br><span>Incredibly, the annual total number of attached dwelling approvals is approaching the number of houses approved, something that nobody was predicting three years ago.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/11/4/BA1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/4/BA1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator"><span>Indeed some folk predicted there would be no material increase in approvals period, which just goes to show how unpredictable cycles can be at times.</span></div>
<div class="separator"> </div>
<strong><span style="text-decoration: underline;">Across the capitals</span></strong><br><div class="separator"> </div>
<div class="separator">House approvals continue to trend up steadily in Sydney and Melbourne, but are flatlining in Brisbane, and are now trending down in Perth, Adelaide and Canberra. </div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2015/11/4/BA2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2015/11/4/BA2.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">
<div>Over the past 12 months Sydney has seen four big months for attached dwellings approvals ranging from 3,111 in May to a record 4,260 in July, but approvals tailed away again in September to just 1,835.</div>
<div> </div>
<div>Melbourne waved through another 2,842 units in September for a fresh rolling annual high of 34,726 approvals.<br><br>Meanwhile Brisbane had another whopping month of high rise approvals, also sending its annual unit approvals to a new high of 18,301. This figure is up from an equivalent total of just 5,412 three years ago - again, think back to the commentary at the time, did anyone predict this surge in approvals or Chinese capital?<br><br>The Brisbane Central Business District is set to "benefit" from new high rise towers which will nudge against the city's 274 metre height limit, a restriction set for aviation regulations.</div>
<div> </div>
<div><a href="/images/2015/11/4/BA3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/11/4/BA3.jpg" alt=""></div>
<div> </div>
<div>
<div>What more is there to say on this point that I haven't already said over the past two years?<br><br>Whether or not all of these apartments are built, steer clear of the obvious areas of oversupply in Melbourne and Brisbane in particular, and be even more wary than usual about buying expensive off-the-plan or new build units. </div>
<br><strong><span style="text-decoration: underline;">High rise gluts power on</span></strong><br><br><div>In particular, the number of high rise (4+ storey) units being approved continues to defy common sense in Victoria...</div>
<div> </div>
<div><a href="/images/2015/11/4/BA4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/11/4/BA4.jpg" alt=""></div>
<div> </div>
<div><span>...and in Queensland, which saw its greatest ever month for high rise apartment approvals in September. The ratio of new stock to existing stock in a number of Brisbane's inner suburbs is exceptionally high, as documented here previously.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/4/BA5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/11/4/BA5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Meanwhile, New South Wales may have passed its cyclical peak in respect of high rise approvals, although due to necessity crowded Sydney will continue to approve more of this dwelling type in future. Nevertheless the higher-density sector is one I'd mark down to "underperform".</span></div>
<div><span> </span></div>
<div><a href="/images/2015/11/4/BA6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/11/4/BA6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">Overall, despite talk of the building boom being "at an end" thanks to the prplexing ABS trend data, this was a reasonably strong headline result for building approvals, though once again skewed towards high-density projects. </div>
<div class="separator"> </div>
<div class="separator">With the macroprudential screw tightening it seems increasingly likely that unit approvals could soon drop off too, and a significant percentage of approved developments may never make it through to the completion stage.</div>
<div class="separator"> </div>
<div class="separator">Accordingly the dwelling starts data series will be one to watch closely. Note that there can be a significant lag between approval and completion for multi-unit developments, perhaps up to several years. </div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Building boom all over bar the grouting? Pete Wargent

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<p><span>The past few weeks have been hectic for real estate with headlines about a possible shift in market sentiment as the major banks all increased their home loan rates and we also saw a drop in auction clearance rates below 65%. </span></p>
<p><span>And so somewhat lost among all of these headlines is the news about the passage into law of the long-awaited review of Strata Title Legislation in NSW.</span></p>
<p><span>The Strata Scheme Management Bill and Strata Scheme Development Bill have both passed the Legislative Council. The two bills contain more than 90 changes to how strata agreements are governed.</span></p>
<p><span>Long after the other headlines start to fade these changes are going to impact the market for many decades.</span></p>
<p><span>I think that the correctly described as a ‘once-in-a-generation reform’ to the state’s strata title laws after much debate will come into force from July 2016. The Minister for Innovation and Better Regulation (interesting title) Victor Dominello who has been responsible for the bills, said that the laws are an important step forward for the state.</span></p>
<p><span>He noted that more than two million people live and work in strata and that the new laws will cater for the needs of 21st century strata living.</span></p>
<p><span>“The new laws will modernise collective decision making processes, increase protections against unresolved building defects and improve out-dated regulation impacting on renovations,” he said.</span></p>
<p><span>The key changes have received a deal of publicity and have also attracted a lot of emotional comment but I think the case and need to renew many older buildings has been fairly established.</span></p>
<p><span>Across Sydney there are pockets of development from the 1960’s and 1970’s that fall a long way behind modern standards and amenity. If we fail to make it possible to redevelop these buildings then this paralysis can have a detrimental impact on urban standards and possibly create disadvantaged areas, where values fall and we see a cycle of neglected investment. In a dynamic city this sort of urban renewal is vital to the city’s livability.</span></p>
<p><span>Now of the nearly 100 changes in the updated legislation, most notable is the requirement that only 75% of owners will need to agree for an apartment building to be sold.</span></p>
<p><span>One of the other key points addressed is a move making it easier for owners to complete cosmetic and minor renovations to their apartments, again this is important to keep apartments modern and with the services and facilities that owners require without being consumed by over regulation and far too much red-tape.</span></p>
<p><span>The changes will also prevent proxy farming, and while the extent of proxy farming is hard to measure, it can often be used to set up long-term appointments and policies in a building that do not always work for the owners. This change should be a welcome move.</span></p>
<p><span>Then we see another key change, which has also attracted a great deal of industry comment, which will see the introduction of a defects bond to fix building defects early in new developments. In the past we have seen some poor quality buildings leaving the owners corporation with a major headache and on some counts big repair bills that sometimes came on top of big legal bills because of a disagreement with a developer or their insurance company.</span></p>
<p><span>The new bill has a requirement of developers to lodge a bond of 2% of the contracted price of the building as a form of security to fix any defective work.</span></p>
<p><span>Here again the changes should be welcome and should not be seen as a threat among well-regarded developers. The suggestion that the introduction of these bonds might further inflate prices is a bit of a bluff as experienced developers have to their credit always understood the importance of delivering quality buildings, and most already do so.</span></p>
<p><span>The new provisions have also taken on some house-keeping issues to tackle that can have an annoying or even detrimental impact on people’s daily lives. These include the addressing of the perennial issues of (illegal) parking, pets and smoke drift.</span></p>
<p><span>According to The Minister the over-riding objective has been to modernise our strata laws to better reflect the way people live and work in 2015 and beyond, and as everyone is aware the numbers of people living in strata developments is now massive and growing.</span></p>
<p><span>In some parts of Sydney in areas like Rhodes, Chatswood, the CBD, Zetland and Pyrmont, plus many other spots, the concentrate of apartments and the density of population really dictates that the rules need to be keeping up with the pace of modern development, and to date they have not.</span></p>
<p><span>It is more than 20 years since the last major amendments to strata law were made and over those two decades we have seen how and where many people live change dramatically. Today’s strata landscape is also much more varied than a three-level walk up building and now includes city high rises, sometimes very large scale buildings, townhouses, dual occupancies, offices, retirement villages, mixed use and tourism.</span></p>
<p><span>According to published figures there are currently over two million people, including 25% of Greater Sydney’s population, living or working in more than 75,000 strata schemes across NSW.</span></p>
<p><span>But what is a very interesting figure is the prediction that by 2040, half of all Sydneysiders will be living or working in strata and that single static alone underlines the urgency and importance of the current review. The new Strata Scheme Management Bill and Strata Scheme Development Bill follows a comprehensive community consultation, with over 3,000 individual submissions received.</span></p>
<p><span>With the bill soon to become law it’s a good idea to take a keen interest as the development industry and buyers are all going to be impacted for many years to come but I think the laws do go a long way to creating a better outcome for strata buyers and developers and their passage ends a long drawn out process.</span></p>
<p><span> </span></p>
<p><span><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></span></p>
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New strata rules set to have big impact: Peter Chittenden

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<p><span>The Australian Bureau of Statistics (ABS) released building approvals data for July 2015 earlier this week. According to the data there were 19,298 dwelling approvals over the month which represents an increase of 4.2% over the month and a year-on-year rise of 13.4%. Monthly dwelling approvals reached a record high of 20,260 approvals in March 2015 and the July 2015 result represents the fifth largest monthly number of dwelling approvals on record.</span></p>
<p><a href="/images/2015/09/02/Chart-1.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/02/Chart-1.jpg" alt=""></span></p>
<p> </p>
<p>Over the month there were more unit approvals than house approvals. In fact it was only the seventh time on record that there were more units approved over the month than houses, five of which have happened in 2015. Although unit approvals outnumbered house approvals over the month it is important to note that they tend to be much more volatile than house approvals and are ultimately less likely to be built than houses (approximately 85% of all unit approvals proceed through to a completion historically). Although this is the case, particularly for larger unit development, the economic benefit is extended over a longer period because they take much longer to complete.</p>
<p>In July 2015 there were 9,479 houses and 9,819 unit approvals over the month. House approvals fell by -2.6% in July and were -2.1% lower year-on-year.  Meanwhile, unit approvals increased by 11.7% in July (following a fall of -13.3% in June) and were 33.8% higher year-on-year.  On an annual basis there has been a record high 224,121 approvals to July 2015. To put the recent ramp-up in approvals into perspective, three years ago there were just 148,449 approvals over the year.</p>
<p><a href="/images/2015/09/02/Chart-2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/02/Chart-2.jpg" alt=""></p>
<p><span>As the number of approvals has increased, the greatest rise has occurred across the multi-unit segment. Over the past 12 months a record high 48.3% of all approvals were for units. If you look just at the capital city markets 55.7% of all dwelling approvals were for units.  </span></p>
<p><span>The rise in unit approvals is reflective of changing lifestyle patterns with more and more people preferring to live closer to the city centre and along transport spines where most of these units are located. It also shows that developers are enjoying a level of confidence by seeking approvals for a record high number of units.  </span></p>
<p><span>Another factor contributing to the rise in higher density dwelling approvals is changes in town planning policies where governments are aiming to maximise existing transport infrastructure by allowing higher densities along existing and planned transport corridors and mixed use precincts.</span></p>
<p><a href="/images/2015/09/02/Chart-3.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/02/Chart-3.jpg" alt=""></span></p>
<p> </p>
<p>If we look at the types of units that are being approved it is interesting to note the sharp rise in high-rise approvals, that is units in a block of four or more storeys.  Over the past 12 months, a record high 63.4% of all unit approvals were within high-rise projects while a record low 26.2% of approvals were terrace and townhouses and a record low 4.9% of approvals were for units in a one or two storey block. Again, these figures just go to show the heightened level of developer confidence particularly when you consider the relative level of risk associated with high rise development.</p>
<p>The number of dwelling approvals remains high albeit it is slightly lower than recent record highs. Strength in the approvals figures are becoming increasingly reliant on the multi-unit sector which tend to be much more volatile than house approvals. With many banks, credit unions and building societies tightening their lending criteria it will be interesting to see over the coming months if this flows into approvals and causes developer confidence to wane.</p>
<p>No matter what happens with approvals over the coming months and years there is a strong pipeline of new construction, much of which is high-rise and will extend out over a number of years.  Furthermore, with population growth slowing we should see a better relationship between housing supply and housing demand.  This is already being seen by the fact that capital city rental rates are increasing at an historic low rate currently.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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Rise in unit approvals drives rebound: Cameron Kusher

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<p><span>As a result of new lending criteria delivered to deposit-taking institutions by Australian Prudential Regulation Authority (APRA) a lot of attention has been placed on the pace of lending for residential housing investment. </span></p>
<p><span>The APRA guidelines highlighted a limit on annual investment </span><span>credit growth for ADIs of 10% however, from that point until June 2015 the annual rate of investment credit growth continued to increase.</span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.30.35%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.30.35%20PM.png" alt=""></span></p>
<p> </p>
<p><span>Although it’s only one month of data, the latest housing credit </span><span>data to July 2015 suggests that we may be finally set to see a </span><span>slowing of investment credit growth. </span></p>
<p><span>Over the 12 months to July 2015, the Reserve Bank (RBA) reports that total housing credit rose by 7.4%; its fastest annual rate of growth since October 2010, and consisted of a 5.3% annual increase in owner occupier credit (fastest growth since March 2012) and a 10.8% annual rise in investor credit.</span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.31.43%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.31.43%20PM.png" alt=""></span></p>
<p> </p>
<p><span>Investor housing credit is still growing at a robust pace however, at 10.8% over the year it is down from </span><span>11.1% in June and at its lowest level since March 2015. “In fact, </span><span>the monthly investor housing credit data shows credit advanced by just 0.6% in July which was its lowest monthly increase since </span><span>October 2013. </span></p>
<p><span>Investment segment lending data on the investment segment </span><span>suggests that following recent changes to lending policies by Australian ADIs, lending to the investment segment of the market is set to slow further over the coming months. </span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.32.48%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.32.48%20PM.png" alt=""></span></p>
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<p><span>With mortgage rates remaining low we would anticipate the rate of </span><span>growth will slow to around the 10% per annum benchmark, </span><span>however this is unlikely to drop much further than that.</span></p>
<p><span>While any slowdown in investment growth may have an impact on </span><span>overall housing credit figures, Mr Kusher noted that it’s important </span><span>to recall that a much greater proportion of overall lending goes to owner occupiers. </span></p>
<p><span>In July 2015, the total value of outstanding housing credit was $1.476 trillion. This figure was comprised of $906.4 billion in lending to owner occupiers and $569.8 billion to investors. </span></p>
<p><span>I</span><span>t’s important to remember that the rate of </span><span>growth in owner occupier lending has also been rising although over the past year there was a $45.2 billion expansion in credit to owner occupiers compared to $56.1 billion to investors. Furthermore, the proportion of total mortgage credit to investors is at a record high 38.6%. </span></p>
<p><span>ADIs of course don’t lend exclusively for mortgages and the latest </span><span>data shows an encouraging lift in credit to businesses. In July 2015 business credit rose by 0.7% to be 4.8% higher over the year. Total business credit is currently recorded at $799.7 billion, which is significantly larger than investment housing credit.</span></p>
<p><a href="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.33.38%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/03/Screen%20Shot%202015-09-03%20at%2012.33.38%20PM.png" alt=""></span></p>
<p> </p>
<p><span>The RBA and APRA are likely to be very encouraged to see the </span><span>first signs of a slowing of lending to the investment housing segment and would hope that it continues over the coming months. </span></p>
<p><span>While this may result in a slight slowing in overall housing credit growth increases, this shouldn’t be viewed as a negative outcome. </span><span>If the recent increase in business credit can continue it would </span><span>arguably provide greater economic benefit. </span></p>
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<p><span><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></span></p>
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Has growth in investor housing credit reached its apex? Cameron Kusher

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<p><span>Preliminary auction clearance rates ticked back on the first weekend of spring according to </span>CoreLogic-RP Data<span>.</span></p>
<div>Sydney's auction clearance rate should now begin to track lower than its equivalent prior year figure, but remains elevated at this juncture 78 per cent.</div>
<p><span style="line-height: 1.3em;">Generally strong results were seen outside Sydney and Melbourne as per the below graphic, albeit from the usual small samples.</span></p>
<p><span><br><strong><span style="text-decoration: underline;">Speeding ticket</span></strong><br><br></span></p>
<div>That the Sydney market must eventually slow is not in question.</div>
<div> </div>
<div>After all, both Residex and CoreLogic-RP Data have recorded house prices growing at an absolutely cuckoo pace of +7.5 per cent over the last quarter (a totally bonkers rate of growth implying that prices would double within the next 10 quarters). </div>
<div> </div>
<div>The real questions are how well the spring auction market can hold up in the face of likely higher stock volumes and what happens when the growth cycle eventually comes to an end. </div>
<div> </div>
<div>It's worth noting that while outer suburban auction rates may have tailed off in Sydney somewhat, many of the inner suburbs are still recording blistering results.</div>
<div> </div>
<div>The inner west (88.6%), eastern suburbs (84%) and North Sydney and Hornsby (83.6%) regions each once again recorded supremely high preliminary clearance rates.</div>
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<div><a href="/images/2015/09/07/AUCTIONS1.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/07/AUCTIONS1.jpg" alt=""></div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
<p><span> </span></p>
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Auctions spring forth: Pete Wargent

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<p><span style="line-height: 1.3em;">With each property development we manage, we'll fine tune the process so that on the next one, we'll do something a little differently to improve the results. </span></p>
<p><span>After completing over 80 developments, our process has become pretty refined. But there is always something we can improve on. </span></p>
<p><span>Sometimes they are just small tweaks that can make a massive difference. This particular example I'll share with you shaved literally a month off the planning process.</span></p>
<p><span>At Property Bloom we work across a number of different councils and each council has their own way of looking at and processing a Development Application (DA). It can be easy to make assumptions based on past experience. </span></p>
<p><span>So when we started working in a new location that fell under a council we'd not yet worked with, we assumed they'd review our plans in the same fashion as the other councils. The first few DAs (all assigned to different town planners) were processed within about 7-8 weeks on average. This is a lot longer than we liked but still not as bad as another council's processing times. It fell somewhere in the middle of our best and worst processing times. </span></p>
<p><span>The time your DA is in council is dead time, there is not too much you can do whilst you wait for the consent in case changes need to be made. We tend to use this period to choose material and colours.</span></p>
<p><span>Even after working with some councils for ten years, it will come down to the individual town planner who is assessing your DA and what they like to see marked on your plans. If they request 'more Information' then your DA is put on hold until they receive a response.  </span></p>
<p><span>This particular DA was assigned to a planner we'd not yet worked with at this council. We received a letter requesting more information on off street parking locations. The plans detailed a single garage for each villa. The requirements are to provide two parking spaces. Obviously one is in the garage - but here's where our assumption kicked in -  we thought the planner could 'see' that the second space was on the driveway as a stacked or tandem parking space.  </span></p>
<p><span>We quickly marked this on the plan and immediately sent it to the planner, and within three days we had the DA Consent on our desk. This set a record of processing time with this council - four weeks, down from eight weeks. </span></p>
<p><span>It goes without saying that this was added to our list of what to include on the plans and we made a mental note never to assume. We are now a month ahead of schedule and our client is happy to save time and holding costs.</span></p>
<p><span><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></span></p>
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