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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James Stewart of Ferrier Hodgson has prepared a graph about the likely growth in internet retailing that will frighten bankers, particularly those who are worried about their jobs. Bankers will look at business lending propositions with a degree of self-interest – they don’t want to make a mistake. On the other side, retail tenants will also be frightened because they usually have to put their houses on the line and the changes taking place make them very nervous. And perhaps the greatest fear comes from those shop owners who are highly leveraged. 
Over the years, one of the safest investments has been owning a shop in a good shopping centre. Many investors were not afraid to borrow heavily on them. There seemed a never-ending number of tenants prepared to pay exorbitant sums to fit them out and commit to big rents. But that’s changing and by the end of the year the landscape will have changed dramatically.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/gottjan31large.gif"><img src="/images/stories/gottjan31.gif"></a>
The Ferrier graph above shows one US retailer is selling 18% of their goods online. Almost all US retailers have sales online well above the Australian averages (the estimated average Australian retailer online sales percentage is indicated by the red line). Partly because of our high retail costs, the difference between buying online (from offshore) and local prices can be staggering. The successful retailers will find a way to lower their costs to be more competitive with overseas retailers. Ferrier say that retailers are going to need to work out how they mix the online and store sales. In some retail areas, the online percentage will rise to 30 per cent in Australia, and this figure is backed by the research of the Quantum Group. Many retailers will adjust, others will not. Rents will depend on the talents of the tenants. Right now, Sydney and New York fight over who charges the highest retail rents in the world. With the dollar above parity, Sydney has its nose in front but Melbourne is not far away. In the next year or two, rents in many areas are going to fall and in some cases fall sharply. The big upmarket centres like Westfield’s Bondi and Chadstone believe they will be insulated. Indeed, Chadstone is backing that view with a massive expansion. I think these centres may experience a delay in reaction but over the next two years the downward movement in rents in the rest of the country will be too large for them to be insulated. And with that fall in rents will come a fall in the value of the rental properties, which will lead banks to request that building owners contribute more equity to maintain lending ratios. This will force shops onto the market. There are three forces pushing down rents. The first is that consumers are very price conscious, which means that margins are tight. Second, the new labour laws mean that for many retailers opening on the best trading days – the weekends – is much more expensive. If retailers can't put up prices they must accept lower returns – and lower returns will need to be transferred into lower rents and capital values. And finally there is the internet.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
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rgottliebsen-VjLFh9nsD4

Owning a retail shop no longer a safe investment: Robert Gottliebsen

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The number of distressed properties put up for sale in 2012 is expected to climb, thanks to continuing struggles facing property owners and an entrenched hesitancy from potential buyers to jump into the market, according to a report by the Australian Financial Review.
Overall distressed real estate listings soared 30% in Australia in 2011 compared with 2010, according to Colliers International research.
More than half of the 775 distressed properties advertised in 2011 were in Queensland.
“You have a significant number of properties not sold coming into the market in 2012, and there's more coming on,” chief executive of listed property valuer LandMark White Brad Piltz told the AFR. 
A second source told the AFR that interest in buying distressed properties is slowly gaining pace as investors increasingly warm to the view that in some markets prices have bottomed out.
In a separate report, the AFR said that Australian housing prices were unlikely to experience a major slump in 2012, citing ANZ Research.
ANZ holds the view that market fundamentals remain supportive, although prices are likely to be flat or slightly negative.
“While housing construction continues to weaken under the cloud of negative market sentiment and softening prices, forward indicators suggest the recent slowdown in net overseas migration will continue to reverse,” ANZ said, according to the AFR.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
 
 
 
 
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po-LsXgBTHBmX

Distressed property listings to grow in 2012

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Like many other industry professionals, I’m often accused of “talking up” the market for my own greedy ends – however, the majority of my working life is spent encouraging purchasers to avoid various real estate transactions, rather than enter into them. Having worked in this industry for many years, I’m still amazed at the risks people take when purchasing a property. It’s no surprise sales agents get a bad name with consumers – buyers seem completely oblivious to the fact that they’re working for the vendor not purchaser, and as such can offer little help or advice outside essential information that can only benefit their clients – namely the vendors.
For these reasons – and many more – buyers’ agents have become commonplace over recent years and the industry has grown considerably. In America buyer advocacy is considered the norm for property shoppers. However unlike in Australia, the listing authority between the selling agent and vendor specifies that the fee will be payment for “bringing a buyer”. Therefore, when the property is sold and commission paid, the fee the buyers’ agent receives usually comes directly from the vendor-paid commission and the buyer simply pays the purchase price.
With more mouths to feed, this is why American real estate sales commissions are so high to begin with (I’m told around 6%). It’s a complicated process fraught with conflicts of interest. Obviously if the buyers’ agent is being paid from the vendor’s commission, his or her fee will be greater based on property price. In other words, the more you pay for the property, the more the buyers’ agent receives, so there is little encouragement to negotiate a low price – although I’m sure there are ethical agents in the US who do a good job regardless.
In Australia our system is a lot less complex. Buyers’ agents work exclusively for the buyer, have an authority with the buyer, are paid by the buyer, and as such are contractually obligated to work in the buyer’s best interests. Therefore when it comes to sourcing a home, avoiding risks and seeking independent advice outside that of the selling agency, working with a “good” buyers’ agent is a wise idea. However those doing so should always choose a “fee for service” model, rather than a commission-based process.
Getting reliable advice is especially relevant to those buyers who intend to invest in property in another state or territory. When I worked as a selling agent, I often sold property to buyers over the net – sight unseen. It wasn’t unusual to get emails and phone calls from purchasers who were prepared to sign a contract on the advice I relayed alone – advice benefitting the vendor. The Australian market is fragmented and as such, different states are at differing stages of the property cycle. While Perth was tracking sideways a couple of years ago, Melbourne was enjoying a 20% rise over a single quarter. Therefore investors don’t want to be tied to local purchases if it’s wiser to search further afield and if this is the case, obviously a fair amount of research has to be done remotely. But should you travel to view a property before the final decision is made?
Well, that’s the advice from some who suggest investment should be totally void of emotion. It’s not so bad if you employ a local professional to do the necessary due diligence on your behalf – but in my opinion, internet shopping into the world of real estate with no more than a few advertisements and Google maps to sway your judgement is no better than plunging your hand into a lucky dip and hope it comes out holding gold. Checking out the feel, suburb and general surrounds of a location is something you can only experience physically – and yet it wouldn’t surprise me to see “Buy Now” buttons sitting next to real estate advertisements at some point in the not-so-distant future.
For instance, who can say how many buyers this year have been tempted by the numerous spruikers of American property investments and purchased into the country’s falling market, which seemingly has no bottom to its pit of despair? However, at the Home Buyer’s Show I attended in Melbourne last year, the room was full of “property professionals” advising the wisdom of such investments.
In Australia a buyer can travel nationwide and purchase a property on a weekend away if he or she so desires. If she’s really brave, she can do it remotely – signing and returning the paperwork via fax or email. However, any transaction is subject to the laws and regulations of the state purchased – and like every other state law in Australia, they differ(in some cases quite considerably) from state to state. For example, in Victoria, buyers commonly have three business days to “cool off” on real estate sales transactions (auctions excluded). New South Wales on the other hand allows five business days. Perth has no cooling-off period, and Darwin has a four-business-day cooling-off period. In all cases there are exceptions to the rule and if you don’t know what they are, you could find yourself coming unstuck.
For example, in Victoria, buyers commonly think the cooling-off period starts when the vendor signs the contract – however not so!  It starts from when the written offer is made – regardless of it being accepted. If the vendor waits for three days before signing the contract and the buyer has not employed a solicitor to conduct the due diligence needed for the paperwork, the time to use the “get out of jail” card without losing your deposit has long passed. No doubt other states and territories have variations on this and it’s confusing enough when you work in the industry – let alone when you’re conducting a real estate transaction only two or three times in a lifetime.
There’s currently a proposal on the table to bring in national licensing for all real estate professionals. When/if implemented it would allow realtors from different states and territories to conduct their business anywhere in Australia. However, without some streamlining of the different systems in place, it’s hard to imagine how agents will have the necessary knowledge to work in the best interests of their clients without local expertise. I am hopeful the delays keeping the proposal at bay are being used to address these issues.
Other points of confusion concern the different negotiation practices employed in each state or territory. For example – the market in the inner suburbs of Melbourne can move at the speed of light. As such, placing a contract with any special conditions is a challenge in itself, and the process has to be navigated carefully if the offer is likely to be accepted. However in Perth, where – until recently – prices have languished and auctions are rare, it’s common practice to place several special conditions on sales contracts and without understanding the process, it’s not wise to venture into an unconditional agreement.
Purchasing real estate is fraught with danger. Even for those with experience, without the best research and advice, there are enough hidden dangers lurking to ruin the potential of any pricey acquisition.  For example, if you wandered into Western Australia, buoyed up on the recent market activity and population projections without due awareness of the state’s new planning schemes, you’d risk missing out on some excellent potential for short term capital growth. In Perth, large swathes of land are being re-zoned to allow for greater density in major activity centres. This could mean a house sitting on a block of land with the potential for a two-storey, seven-metre-high development could become next month’s six-storey unit site. Obviously it will affect the potential and value of various blocks of land depending on which way the wheel turns.  All in all, the internet’s not going to be very good at sourcing out these types of intricacies.
Despite all of the above, when property shoppers take to the streets once again, there’ll still be a swathe of investors who’ll delight sales agents as they stumble across the street theatre of an auction and decide on first look to raise their hand and place a bid.  Some may get lucky, but others will be the fodder for this year’s newspaper headlines and in essence, it’s no different to a game of Russian roulette. Property investment isn’t easy; it’s hard work and takes time. Analysing the price requires on-the-ground legwork and access to data bases that in some states are only accessible to licensed real estate agents. Working out if a property is a suitable investment requires a physical inspection from someone who is an experienced local and should not be done via internet alone. It’s true no investment is free of risk, however make sure those you take are calculated and not reckless.
Catherine Cashmore is senior buyer advocate, property manager and market analyst for Elite Buyer Advocates. She is also Channel Ten’s property expert on The Circle.  With extensive experience in all matters regarding real estate, <a href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a> purchases and negotiates more than $100 million worth of property each year for its clients.
 
 
 
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catherinecashmore-6LXia3pPQj

Don't be so quick to buy property

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Asian buyers look set to increase their investments in Melbourne’s upper-middle-class eastern suburbs over the Chinese New Year period.
Popular suburbs include Glen Waverley and Balwyn, with a desire to own prestige property, feng shui alignment and access to better schools among the reasons why Asian buyers have bought homes recently.
The Ray White Glen Waverley office has recently sold a number of homes in the $2 million-plus price bracket to wealthy mainland Chinese buyers.
Director Damian Moore expects almost every property currently up for sale in the suburb to attract some interest from Asian buyers during the festive season.
“Glen Waverley has a very large Asian community with varying financial means.  Therefore we sell homes [to Asian buyers] from $400,000 to $2.5 million,” says Moore.
Moore says most of the suburb’s Asian buyers come from mainland China, Malaysia, Singapore and Indonesia.
“Often the grander the house, the better – financial status at the high end of our market is very important.
“But you can’t beat good old ‘feng shui’ – most buyers will consider direction of the home, adjacent streets, low side/high side, front door opposite back door, staircase facing the front door,” he explains.
About 14 kilometres west of Glen Waverley, the affluent suburb of Balwyn has also experienced an influx of Asian buyers wanting to own property in the Balwyn High School zone bounded by the Eastern Freeway and Whitehorse Road.
According to Tim Heavyside of Fletchers Real Estate, property purchases by aspirational Asian families have increased from an average of 20% of Balwyn home buyers in the zone 10 years ago to about 60% of all purchases currently.
"They may decide rather than invest $25,000 in school fees every year, I'll utilise that in travel and educate my child in life, but they still get the benefit of being at the fourth-best school in the state," he says.
According to Moore, selling to Asian buyers comes with its challenges.
“Most Asian buyers are very hard negotiators – they remain non-emotional about the purchase and must always feel in control,” he says.
Melbourne real estate is not just proving popular with Asian families – Asian companies are also entering the market.
Asian property developers are making major plays in the Melbourne apartment market, with Hong Kong-based Far East Consortium building 2,600 apartments in the billion-dollar Upper West Side project on Lonsdale Street. Investors in the project come from Malaysia, mainland China, Korea and India.
Savills reported late last year that investors and developers from China, Singapore and Malaysia had spent more than $100 million in buying Melbourne development sites in the past 18 months.
Last year Asian developers snapped up a 3,200-square-metre site at 224-250 La Trobe Street for $29.2 million with potential for more than 500 apartments while Singapore construction and property group Chip Eng Seng bought an 8,000-square-metre office building on a 900-square-metre block at 150 Queen Street for $25.5 million, with plans to convert it for residential use. Both deals were negotiated by Savills.
Another residential development site at 420 Spencer Street (2,250-square-metre site with a permit for 368 apartments) has registered interest from Asian buyers including SP Setia and Mammoth Empire Holdings, both from Malaysia, as well as private developers from mainland China.
In total more than half of the 17 properties sold by Savills since March last year with residential development potential were snapped up by Asian buyers.
According to Savills divisional director of CBD sales and investments Nick Peden, Asian developers have bought eight properties, averaging $12.5 million, since March 2010.
"Melbourne offers sustained population growth, inexpensive land compared to home markets, the potential for significant growth, the benefit of freehold title, and its stature as the world's most liveable city," says Peden.
In a recent report on the influx of Asian property developers, CBRE said Melbourne was proving more popular with foreign developers than Sydney due to larger sites being available on the northern edge of the city.
For more on Asian investment in Australian property, download our free eBook<a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets"> Foreign Investment in Australia's Property Markets</a>.
 
 
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lschlesinger-FZcF9M3vE6

Melbourne’s eastern suburbs popular with Asian buyers

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There is no Australian housing price bubble, says ANZ in its latest assessment of the Australian property sector.
In its January assessment of the property market, the bank argues that gains in house prices over the past 25 years have been driven by increases in household income and lower interest rates.
The bank forecasts house prices will remain on hold or fall slightly in 2012, but will not crash.
“A combination of lower interest rates, falling house prices and rising household incomes has improved Australian house purchase affordability over the past 12 months,” say report authors David Cannington, senior economist at ANZ, and Paul Braddick, head of property research at ANZ. 
“Despite the continued concerns about significant Australian house price overvaluation from some commentators, housing market fundamentals remain supportive,” they say.
<img src="/images/stories/anzjan301.gif">
According to ANZ’s analysis, all the growth in Australian house prices since 1986 can be explained by gains in average household incomes and a structural decline in the cost of borrowing. 
“Cross-country comparisons using partial valuation measures are commonly used to contend the case of overvaluation of Australian house prices. That is, suggesting actual house price growth in Australia has run significantly higher than justified by explained price growth,” says ANZ. 
However, international house prices, rental yields and house price-to-income ratio comparisons compiled by ANZ suggest that Australian house prices have not deviated from international trends.
<img src="/images/stories/anzjan302.gif">
<img src="/images/stories/anzjan303.gif">
ANZ forecasts housing affordability to improve in 2012 following recent improvements due to softening house prices, rising household incomes and lower mortgage rates.
<img src="/images/stories/anzjan304.gif">
Among the factors ANZ says will continue to support the housing market is net migration, which is starting to rebound after the recent slowdown and combined with weak housing construction will add to the pressure building within the housing sector.
<img src="/images/stories/anzjan305.gif">
“While housing construction continues to weaken under the cloud of negative market sentiment and softening prices, forward indicators suggest the recent slowdown in net overseas migration will continue to reverse,” say Cannington and Braddick. 
“This renewed housing market tightening will add further upward pressure on rents, household size and provide a fundamental support to flagging market activity, especially for the first-home buyer market.” 
However, there will be no marked improvement in new home building in 2012, according to ANZ. 
“Soft house prices, weak housing market sales activity and tight credit conditions have dampened residential developer sentiment. Despite the recent interest rate cuts, weak housing market sentiment will continue to weigh on residential development activity through 2012,” says Cannington and Braddick.
<img src="/images/stories/anzjan306.gif">
 
 
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Strong fundamentals mean there is no Australian housing price bubble: ANZ

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The sales were small beer, rather than champagne cork popping, at the Gold Coast's weekend prestige auctions.
Just two of the 10 prestige listings listed for Main Event, Ray White Surfers Paradise auction found buyers.
The two were sold prior, but none of the remaining seven properties put under the hammer were sold.
Another was postponed and another withdrawn. There are reports that deals on another two are close to exchange.
The multimillion-dollar mansions that didn't sell included the Cronin Island property owned by Nicole Perrin, wife of former Billabong surfwear entrepreneur Matthew Perrin, which was passed in at $5.9 million.
It was therefore well below <a target="_blank" href="/news">its onetime $15 million valuation</a>.
No bids were taken for the <a target="_blank" href="https://www.propertyobserver.com.au/queensland/gold-coast-%249-million-offering-might-benefit-from-nerang-river-rising-tide/2011081851212">Bartinon mansion  at 26 Marseille Court in Sorrento</a>.
<img src="/images/stories/sanctcove.jpg">
The properties that did sell before auction were in Sanctuary Cove, including <a target="_blank" href="https://surfers-pardise.rwoffice1.com/qld/sanctuary-cove/723156/">a four-bedroom house sold by Ted Kunkel</a> (pictured above), the former Fosters boss turned Billabong chairman for an undisclosed figure.
Set on Bay Hill Terrace, the expansive house was built after the 804-square-metre lakefront reserve block had cost $500,000 in 2002 when bought from Mulpha. It comes with a Florida room with conservatory-style pool overlooking the sixth, seventh and eighth holes of the Palms Golf Course.
Another Hope Island property at Anchorage Terrace sold for $3 million to an overseas buyer.
Ray White Surfers Paradise boss Andrew Bell says the crowd suggested there may be renewed interest in real estate.
The auctioning of the mid-range priced properties saw some demand.
By late Sunday more than $30 million worth of properties had sold.
The clearance rate had jumped to more than 55%, well up on last year’s level of around 30%.
“It’s a big jump,” Bell says.
“We knew something was brewing.”
While the cooling in prices on the Gold Coast had played its role, Bell told the Australian Financial Review that “a couple of interest rate drops and the belief there will be more” had stimulated the market. “We’ve got five or six bidders on most properties [and] we’re going over reserve on most properties,” he said.
About 1,000 people packed the main auction watching numerous properties sell for much less than they sold before the global financial crisis.
There was an average sale of $485,000.
The Gold Coast Bulletin reported sales included a five-bedroom Dirk Hartog Place, Hollywell house with boat ramp that sold for $1.125 million, $415,000 less than when it last sold in 2006.
A mortgagee sale of a luxury apartment in the Q1 building in Surfers Paradise that sold for $2 million in October 2006 fetched $970,000 at the auction.
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jchancellor-FAypfDUnLy

Gold Coast sales marked by stubbies, not champagne as market struggles to find its price footing

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RP Data’s Tim Lawless has given qualified support to the findings of US-based research group Demographia that Australian housing is among the most unaffordable in the world.
According to Demographia’s <a href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-in-the-top-five-least-affordable-cities-in-the-world-demographia/2012012353110" target="_blank">eighth annual International Housing Affordability Survey</a>, Australian cities are among the most unaffordable in the world, led by Sydney with a median multiple (the ratio of median house price to median income) of 9.2 and Melbourne with a median multiple of 8.4. It places the blame on restrictive land use policies that encourage speculators and investors in dense urban areas.
Lawless says Demographia might exaggerate the affordability figures “slightly” but there is no doubt Australian cities are expensive places to buy homes.
“There are some flaws in the Demographia methodology – they use median house prices, whereas a better guide would be median dwelling prices, as around 35% of dwellings in Australia are units. Also it does not include regional dwelling prices and is focused on capital cities,” he says.
If you include these figures, Lawless says, “median prices will come down much further”.
These methodology issues aside Lawless backs the survey and says it reflects the fact that “we are in a market place that does have affordability challenges and even though we have seen price declines, we have not seen a dramatic improvement in the affordability level”.
According to Lawless, affordability is already changing consumer behaviour.
“There isn't any argument that in areas like Sydney for example, affordability is a real issue and we are seeing more and more people look towards the unit market as opposed to the detached housing in an effort to combat affordability,” he says in an interview on ABC radio.
Demographia founder and report author Wendell Cox says Australian house prices are two to three times higher than what they should be and says land use regulation and a focus on developing housing close to the major cities is to blame.
“There is nothing unique at all in Australia for prices to be so unaffordable… Basic economics tells us that when you create a shortage of anything, be it land or cars, you are going to drive the prices up.
“[Housing affordability problems in Australia] have to do with land use regulation, this philosophy of urban consolidation which has drawn strict borders around virtually all [Australian] capital cities so that it is virtually impossible to build much on the fringe of the city.”
Cox says regulations governing land development fuels property speculation and says such policies ultimately led to the bursting of the property bubble in the US.
“Australia has a housing bubble, of that there is no question. Australian housing is incredibly over-valued by any sort of international standard.
“Whether it bursts or not is beyond my ability to predict.”
Cox says investors are not drawn to markets that don’t have constraints.
“There aren’t any speculators in Dallas-Fort Worth or Atlanta. Why? Because you can develop land there.”
“It’s just unbelievable that sections of land in the suburbs of Sydney are going for $200,000 and $300,000 – we’re selling houses for that in a lot of urban areas in the US and Canada.”
Cox says there is plenty of room for expansion around Sydney, Melbourne, Adelaide, Perth and Brisbane.
Lawless agrees that land restrictions are driving prices up, but says there are other factors which have contributed to Australian house prices being far higher than in the US.
“Demographically we are unique… 50% of our population is across three cities. We have tight urban densities in those cities and we have very little opportunities for employment outside the capital cities.”
 
 
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Demographia figures 'flawed' but Australian cities unaffordable: RP Data's Tim Lawless

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Sydney and Melbourne are significantly more affordable than US-based research organisation Demographia claims, according to Property Observer calculations based on the latest available official ABS data.
In its eighth annual global housing affordability report, Demographia ranks Sydney as the third most unaffordable city in the world with house prices 9.2 times higher than the median household income and Melbourne sixth most unaffordable with a median multiple of 8.4.
However, the most recent ABS estimates of median household income and median house prices (respectively, the Household Wealth and Wealth Distribution report for 2009-10 released in October 2011 and the September quarter House Price Index released in November 2011) suggests quite different results.
Using the ABS figures, Sydney has a median multiple of 7.4, which means it drops down the list of most unaffordable locations from third (according to Demographia behind Hong Kong and Vancouver) to equal 10th with the UK’s Plymouth and Devon region.
Using the same ABS data, Melbourne’s median multiple falling from 8.4 to 6.5, with its ranking falling from six to joint 24th most unaffordable city alongside Telford and Shropshire in the UK.
<table style="width: 450px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="96" valign="top">
 
</td>
<td width="266" colspan="3" valign="top">
ABS figures
</td>
<td width="254" colspan="3" valign="top">
Demographia figures
</td>
</tr>
<tr>
<td width="96" valign="top">
 
</td>
<td width="91" valign="top">
Median house-hold income
</td>
<td width="91" valign="top">
Median house price
</td>
<td width="84" valign="top">
Median multiple
</td>
<td width="82" valign="top">
Median house-hold income
</td>
<td width="93" valign="top">
Median house price
</td>
<td width="80" valign="top">
Median multiple
</td>
</tr>
<tr>
<td width="96" valign="top">
Sydney
</td>
<td width="91" valign="top">
$77,500
</td>
<td width="91" valign="top">
$575,000
</td>
<td width="84" valign="top">
7.4
</td>
<td width="82" valign="top">
$69,400
</td>
<td width="93" valign="top">
$637,600
</td>
<td width="80" valign="top">
9.2
</td>
</tr>
<tr>
<td width="96" valign="top">
Melbourne
</td>
<td width="91" valign="top">
$74,000
</td>
<td width="91" valign="top">
$484,000
</td>
<td width="84" valign="top">
6.5
</td>
<td width="82" valign="top">
$67,700
</td>
<td width="93" valign="top">
$567,000
</td>
<td width="80" valign="top">
8.4
</td>
</tr>
<tr>
<td width="96" valign="top">
Brisbane
</td>
<td width="91" valign="top">
$79,700
</td>
<td width="91" valign="top">
$450,000
</td>
<td width="84" valign="top">
5.6
</td>
<td width="82" valign="top">
$71,500
</td>
<td width="93" valign="top">
$427,500
</td>
<td width="80" valign="top">
6.0
</td>
</tr>
<tr>
<td width="96" valign="top">
Adelaide
</td>
<td width="91" valign="top">
$65,500
</td>
<td width="91" valign="top">
$402,000
</td>
<td width="84" valign="top">
6.2
</td>
<td width="82" valign="top">
$57,300
</td>
<td width="93" valign="top">
$385,000
</td>
<td width="80" valign="top">
6.7
</td>
</tr>
<tr>
<td width="96" valign="top">
Perth
</td>
<td width="91" valign="top">
$76,300
</td>
<td width="91" valign="top">
$500,000
</td>
<td width="84" valign="top">
6.6
</td>
<td width="82" valign="top">
$78,900
</td>
<td width="93" valign="top">
$450,000
</td>
<td width="80" valign="top">
5.7
</td>
</tr>
<tr>
<td width="96" valign="top">
Darwin
</td>
<td width="91" valign="top">
$95,500
</td>
<td width="91" valign="top">
$510,000
</td>
<td width="84" valign="top">
5.2
</td>
<td width="82" valign="top">
$82,500
</td>
<td width="93" valign="top">
$507,250
</td>
<td width="80" valign="top">
6.1
</td>
</tr>
<tr>
<td width="96" valign="top">
Hobart
</td>
<td width="91" valign="top">
$58,240
</td>
<td width="91" valign="top">
$339,000
</td>
<td width="84" valign="top">
5.8
</td>
<td width="82" valign="top">
$58,900
</td>
<td width="93" valign="top">
$345,000
</td>
<td width="80" valign="top">
5.9
</td>
</tr>
<tr>
<td width="96" valign="top">
Canberra
</td>
<td width="91" valign="top">
$104,400
</td>
<td width="91" valign="top">
$538,000
</td>
<td width="84" valign="top">
5.2
</td>
<td width="82" valign="top">
$105,100
</td>
<td width="93" valign="top">
$513,000
</td>
<td width="80" valign="top">
4.9
</td>
</tr>
</tbody></table>
Source: ABS data, Demographia
Not all cities become more affordable using the ABS figures – Perth’s median multiple goes from 5.7 to 6.6 because the official ABS figures put the median Perth house price at $500,000 while Demographia says it is $450,000.
<img src="/images/stories/medianmultiplechart.jpg" width="470">
Wendell Cox, co-founder of Demographia, tells Property Observer median household income data differences arise because it uses a different Australian Bureau of Statistics (ABS) database while house prices come from real estate industry sources.
“Our median household income estimates start with a base of the ABS 2006 census data for the corresponding capital cities (statistical divisions) as well as the other areas reported upon. These figures are then adjusted based upon the change in earnings per person (using ABS data),” Cox says.
“There are differences between the income data from the census and the Household Wealth and Wealth Distribution report data. For example, the 2005-6 report had a median household income for Sydney approximately 9% higher than the median household income as reported by the 2006 census,” he says.
“Our first choice for estimating median household income data is census data, where it is available (such as Australia, Canada, New Zealand and the United States) because of its virtual universality (more than 7 million households nationwide). The 2009-10 Household Wealth and Wealth Distribution data is from a national sample of 18,000 households (2,245 in Sydney).
“We do not question the Household Wealth and Wealth Distribution report, but consider the census data more appropriate for the comparisons in the Survey. We anticipate updated median household income data from the 2011 census and plan on using that as a base next year.
“The median house prices for the capital cities are from the Real Estate Institute (REIA and state affiliates),” he says.
Demographia as its Australian research sources the following: AMP Banking (Australia), ABS, Australian Property Monitors, Housing Industry Association, Real Estate Institute of Australia and its state institutes, RBA, Residential Property Council (Division of the Property Council of Australia) RP Data (realestate.com.au), and the Urban Development Institute of Australia.
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Sydney and Melbourne more affordable than Demographia suggests

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In a previous article published here entitled <a href="https://www.propertyobserver.com.au/residential/selling-agents-and-buyers-agents-work-together-but-have-opposing-goals/2011112052436">Selling agents and buyers' agents work together but have opposing goals</a>, I covered the definition of these agents’ respective roles in today’s property industry and how the two work together.  But what about vendors’ advocates? 
If real estate selling agents act for the seller, buyers’ agents act for the buyer, where on earth do vendors’ advocates fit into the equation? Surely they must be the same thing as real estate agents – after all, doesn’t the selling agent represent the vendor? So what is the difference? 
Firstly, they are all licensed agents but have different roles in property transactions. In Australia buyers’ agents have only been around for about 15 years, and their alter-egos, the vendors’ advocates have only recently begun to emerge in their specific role in our property industry. To further confuse the issue, buyers’ agents and vendors’ advocates are often the same person, although by definition they never sell real estate themselves. 
Vendors’ advocates are independent agents who act exclusively for the seller of a property. They offer a value-added service including: 
<ul>
<li>A written market appraisal of the property including local comparable sales and current listings to establish a market value range </li>
</ul>
<ul>
<li>Advice and recommendations for selecting the best real estate agent in the locality </li>
</ul>
<ul>
<li>Advice on real estate agents’ exclusive sale agreements and proposed commission fees </li>
</ul>
<ul>
<li>Recommendations on the best method of sale – auction or private treaty </li>
</ul>
<ul>
<li>Advice on strategy and proposed marketing campaigns </li>
</ul>
<ul>
<li>Vetting and screening buyers' offers presented to the seller through their appointed real estate agent</li>
</ul>
In the US advocates have been around for decades and are widely used by both sellers and buyers, but in Australia the concept is relatively new and falls into a grey area that is still unclear to many consumers.
The issue comes down to two reasonable questions: 
<ol>
<li>Why would a seller engage a real estate agent (acting as a vendor’s advocate) to then recommend another real estate agent to sell their property? </li>
</ol>
<ol>
<li>Isn’t there an inherent conflict of interest involved in this process? </li>
</ol>
The answer to the first question is that a vendor may decide to engage an independent professional to advise him on the whole process and look after his interests in the sale. He may be based overseas or simply doesn’t have the time to arrange the sale himself. 
The answer to the second question is much trickier and lies in understanding who actually benefits from the transaction. 
Brief research of fees charged by vendors’ advocates in the Australian states of New South Wales and Victoria reveals that many do not charge a fee to the seller. They are paid a conjunction fee or “referral fee” by the real estate agent they originally recommended as the best agent to exclusively sell a property. 
The issues involved with this arrangement are: 
-          The vendors’ advocate may be tempted to recommend the selling agent who pays her the highest split of the final commission, or choose an agent with whom she has a good relationship (but who may not necessarily be the right person for the job in terms of achieving the best sale price for the client). 
-          There can be confusion between who is actually handling the negotiation process, and in whose interest. 
-          If the vendors’ advocate is receiving a split of the sales commission the real estate agent’s motivation may be degraded. If offered a listing they will usually take it even if their fee is reduced, but will they then give the sale 100% of their effort? 
 
 
Other vendors’ advocates charge a fee directly to the vendor (usually about 0.5% of the sale price). This system avoids a conflict of interest, allowing the vendors’ advocate to act independently and without bias for the client, and it encourages the selling agent to put his best effort into the sale for the benefit of all stakeholders.
Either way the fact is the market for vendor advocacy is growing at a fast rate in Australia. If vendors feel they can benefit from this new service by engaging a property professional, then why not? 
The service is ideal for vendors based overseas and anyone else who needs independent advice in the sale of what is often their most valuable asset – their home.
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a target="_blank" href="https://www.primepropertybuyer.com/">Prime Property Buyer</a>.
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tmansfield-Rk8rBecHRA

Why you might use a vendor's advocate

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The December quarter Consumer Price Index figures show that the Reserve Bank of Australia’s consumer price measures of inflation are within their target zone.
The analytical series of trimmed mean and weighted median increased by 0.6% and 0.5% respectively for the December quarter 2011, compared with 0.4% for both measures in the previous quarter.
The annual change in trimmed mean and weighted median is 2.6% for both measures for the December quarter, compared with 2.4% and 2.7% respectively for the September 2011 quarter
The latest figures are well within the RBA’s target zone of 2% to 3% and should provide a clear message to the RBA to reduce official interest rates at its February meeting.
The housing group showed a slowing down in the quarterly rate – from 1.9% in the September quarter 2011 to 0.4% in December quarter 2011 – the annual rate decreased from 4.2% for the 12 months to September 2011 and to 4% for the 12 months to December 2011.
The main contributor to the December quarter increase for the housing group was rents, which increased 1%.
For the year to December 2011 the biggest increases in the housing group were for electricity (12.2%), water and sewerage (8.6%) and gas and other household fuels (6.7%), with inflation within the RBA’s target zone. Given the latest outlook for the Australian and global economies it is appropriate to have a third consecutive cut in interest rates.
Pamela Bennett is president of the <a target="_blank" href="https://www.reia.com.au/">Real Estate Institute of Australia.</a>
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