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;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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

<html><body>
The regional Victorian cities of Mildura and Shepparton rank as the most affordable Australian housing markets out of 32 major and minor housing markets as rated by US-based research group Demographia.
Canberra is the most affordable capital city market due to high civil servant wages. Sydney, with a median house price of $637,600 and median wages of just $69,400, is the least affordable.
The full list is:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="103" valign="top">
National rank
</td>
<td width="141" valign="top">
Market
</td>
<td width="65" valign="top">
Median multiple
</td>
<td width="103" valign="top">
Median price
</td>
<td width="103" valign="top">
Median household income
</td>
</tr>
<tr>
<td width="103" valign="top">
1
</td>
<td width="141" valign="top">
Mildura
</td>
<td width="65" valign="top">
4.2
</td>
<td width="103" valign="top">
$207,000
</td>
<td width="103" valign="top">
$49,300
</td>
</tr>
<tr>
<td width="103" valign="top">
2
</td>
<td width="141" valign="top">
Shepparton
</td>
<td width="65" valign="top">
4.2
</td>
<td width="103" valign="top">
$236,000
</td>
<td width="103" valign="top">
$55,600
</td>
</tr>
<tr>
<td width="103" valign="top">
3
</td>
<td width="141" valign="top">
Launceston
</td>
<td width="65" valign="top">
4.5
</td>
<td width="103" valign="top">
$272,300
</td>
<td width="103" valign="top">
$60,900
</td>
</tr>
<tr>
<td width="103" valign="top">
4
</td>
<td width="141" valign="top">
Bunbury
</td>
<td width="65" valign="top">
4.6
</td>
<td width="103" valign="top">
$362,500
</td>
<td width="103" valign="top">
$78,600
</td>
</tr>
<tr>
<td width="103" valign="top">
5
</td>
<td width="141" valign="top">
Toowoomba
</td>
<td width="65" valign="top">
4.7
</td>
<td width="103" valign="top">
$275,000
</td>
<td width="103" valign="top">
$58,400
</td>
</tr>
<tr>
<td width="103" valign="top">
6
</td>
<td width="141" valign="top">
Albury-Wodonga
</td>
<td width="65" valign="top">
4.8
</td>
<td width="103" valign="top">
$274,000
</td>
<td width="103" valign="top">
$57,200
</td>
</tr>
<tr>
<td width="103" valign="top">
7
</td>
<td width="141" valign="top">
Canberra
</td>
<td width="65" valign="top">
4.9
</td>
<td width="103" valign="top">
$513,000
</td>
<td width="103" valign="top">
$105,100
</td>
</tr>
<tr>
<td width="103" valign="top">
8
</td>
<td width="141" valign="top">
Rockingham
</td>
<td width="65" valign="top">
5.1
</td>
<td width="103" valign="top">
$312,000
</td>
<td width="103" valign="top">
$61,600
</td>
</tr>
<tr>
<td width="103" valign="top">
8
</td>
<td width="141" valign="top">
Townsville
</td>
<td width="65" valign="top">
5.1
</td>
<td width="103" valign="top">
$358,000
</td>
<td width="103" valign="top">
$70,500
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Cairns
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$350,500
</td>
<td width="103" valign="top">
$67,400
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Devonport-Burnie
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$257,00
</td>
<td width="103" valign="top">
$49,200
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Wagga Wagga
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$293,000
</td>
<td width="103" valign="top">
$56,300
</td>
</tr>
<tr>
<td width="103" valign="top">
13
</td>
<td width="141" valign="top">
Tamworth
</td>
<td width="65" valign="top">
5.3
</td>
<td width="103" valign="top">
$293,000
</td>
<td width="103" valign="top">
$48,600
</td>
</tr>
<tr>
<td width="103" valign="top">
14
</td>
<td width="141" valign="top">
Bendigo
</td>
<td width="65" valign="top">
5.4
</td>
<td width="103" valign="top">
$277,500
</td>
<td width="103" valign="top">
$51,700
</td>
</tr>
<tr>
<td width="103" valign="top">
15
</td>
<td width="141" valign="top">
Ballarat
</td>
<td width="65" valign="top">
5.5
</td>
<td width="103" valign="top">
$285,000
</td>
<td width="103" valign="top">
$52,200
</td>
</tr>
<tr>
<td width="103" valign="top">
15
</td>
<td width="141" valign="top">
Alice Springs
</td>
<td width="65" valign="top">
5.5
</td>
<td width="103" valign="top">
$440,000
</td>
<td width="103" valign="top">
$79,600
</td>
</tr>
<tr>
<td width="103" valign="top">
17
</td>
<td width="141" valign="top">
Mackay
</td>
<td width="65" valign="top">
5.6
</td>
<td width="103" valign="top">
$410,000
</td>
<td width="103" valign="top">
$73,700
</td>
</tr>
<tr>
<td width="103" valign="top">
18
</td>
<td width="141" valign="top">
Perth
</td>
<td width="65" valign="top">
5.7
</td>
<td width="103" valign="top">
$450,000
</td>
<td width="103" valign="top">
$78,900
</td>
</tr>
<tr>
<td width="103" valign="top">
19
</td>
<td width="141" valign="top">
Mandurah
</td>
<td width="65" valign="top">
5.9
</td>
<td width="103" valign="top">
$367,300
</td>
<td width="103" valign="top">
$62,700
</td>
</tr>
<tr>
<td width="103" valign="top">
19
</td>
<td width="141" valign="top">
Hobart
</td>
<td width="65" valign="top">
5.9
</td>
<td width="103" valign="top">
$345,000
</td>
<td width="103" valign="top">
$58,900
</td>
</tr>
<tr>
<td width="103" valign="top">
21
</td>
<td width="141" valign="top">
Brisbane
</td>
<td width="65" valign="top">
6.0
</td>
<td width="103" valign="top">
$427,500
</td>
<td width="103" valign="top">
$71,500
</td>
</tr>
<tr>
<td width="103" valign="top">
22
</td>
<td width="141" valign="top">
Darwin
</td>
<td width="65" valign="top">
6.1
</td>
<td width="103" valign="top">
$507,250
</td>
<td width="103" valign="top">
$82,500
</td>
</tr>
<tr>
<td width="103" valign="top">
23
</td>
<td width="141" valign="top">
Bundaberg
</td>
<td width="65" valign="top">
6.2
</td>
<td width="103" valign="top">
$270,000
</td>
<td width="103" valign="top">
$43,600
</td>
</tr>
<tr>
<td width="103" valign="top">
24
</td>
<td width="141" valign="top">
Newcastle-Maitland
</td>
<td width="65" valign="top">
6.7
</td>
<td width="103" valign="top">
$365,000
</td>
<td width="103" valign="top">
$54,300
</td>
</tr>
<tr>
<td width="103" valign="top">
24
</td>
<td width="141" valign="top">
Adelaide
</td>
<td width="65" valign="top">
6.7
</td>
<td width="103" valign="top">
$385,000
</td>
<td width="103" valign="top">
$57,300
</td>
</tr>
<tr>
<td width="103" valign="top">
26
</td>
<td width="141" valign="top">
Wollongong
</td>
<td width="65" valign="top">
6.9
</td>
<td width="103" valign="top">
$403,000
</td>
<td width="103" valign="top">
$58,200
</td>
</tr>
<tr>
<td width="103" valign="top">
27
</td>
<td width="141" valign="top">
Geelong
</td>
<td width="65" valign="top">
7.1
</td>
<td width="103" valign="top">
$390,000
</td>
<td width="103" valign="top">
$55,300
</td>
</tr>
<tr>
<td width="103" valign="top">
28
</td>
<td width="141" valign="top">
Sunshine Coast
</td>
<td width="65" valign="top">
7.5
</td>
<td width="103" valign="top">
$430,000
</td>
<td width="103" valign="top">
$57,000
</td>
</tr>
<tr>
<td width="103" valign="top">
29
</td>
<td width="141" valign="top">
Gold Coast
</td>
<td width="65" valign="top">
7.6
</td>
<td width="103" valign="top">
$470,000
</td>
<td width="103" valign="top">
$61,900
</td>
</tr>
<tr>
<td width="103" valign="top">
30
</td>
<td width="141" valign="top">
Coff’s Harbour
</td>
<td width="65" valign="top">
8.3
</td>
<td width="103" valign="top">
$354,000
</td>
<td width="103" valign="top">
$42,500
</td>
</tr>
<tr>
<td width="103" valign="top">
31
</td>
<td width="141" valign="top">
Melbourne
</td>
<td width="65" valign="top">
8.4
</td>
<td width="103" valign="top">
$567,000
</td>
<td width="103" valign="top">
$67,700
</td>
</tr>
<tr>
<td width="103" valign="top">
32
</td>
<td width="141" valign="top">
Sydney
</td>
<td width="65" valign="top">
9.2
</td>
<td width="103" valign="top">
$637,600
</td>
<td width="103" valign="top">
$69,400
</td>
</tr>
</tbody></table>
 Source: Demographia’s 8th Annual International Housing Affordability Survey
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lschlesinger-FZcF9M3vE6

Mildura and Shepparton most affordable regional areas in Australia: Demographia

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Rydges Hotel Group is set to spend $11 million to create an entire level of New York-inspired dining at its South Bank hotel in Brisbane. 
<img src="/images/stories/rydges1.jpg">
Designed by Base Architects in collaboration with LA interior designer Tracy Beckham, the 2,887-square-metre space will have an elevated dining area, a lounge plus poolside bar and eatery. It will be named in honour of the Roman god of indulgence, Bacchus. The Grey and Glenelg street frontages is set to get one of the design industry’s newest must haves: a vertical garden.
<img src="/images/stories/rydges2.jpg">
 
 
 
 
 
 
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andreadixon-oif3j7eKne

Rydges gets a taste for Big Apple-style dining in Brisbane South Bank hotel

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A Chinese developer is looking to acquire a nine-story Sydney office block as Asian funds continue to pour into prime CBD assets.
The unnamed developer is currently carrying out due diligence on for 333 Kent Street, owned by AMB Holdings. 
The building, which measures nearly 9,000 square metres and is fully leased by Central Queensland University until 2017, last traded for $41.5 million in August 2010. 
In recent survey carried out by the US-based Association of Foreign Investors in Real Estate (AFIRE), Sydney ranked as the seventh most attractive city for offshore investors to buy commercial real estate.
The building is being marketed by Mark Wizel from CBRE, who has sold a number of development sites to Chinese groups, including 557 St Kilda Road in Melbourne, which was acquired by Setia Australia for $25 million. 
Over the past two years, Wizel has noticed a strong preference among Chinese buyers for development assets over passive investments, with the recent drop in the Australian dollar encouraging more offshore interest.
Wizel says Chinese developers have spent more than $180 million on development sites and plan to build about 3,500 apartments on these sites, the Australian Financial Review reported.
In addition, Chinese institutions are also seeking out more passive properties. Wizel expects them to start buying up office, retail and industrial assets and possibly apartment blocks in Sydney and Melbourne. 
Among these is Chinese conglomerate HNA Group, which has paid $117.7 million to acquire 1 York St from an unlisted fund run by Colonial First State Global Asset Management.
The purchase of the 22-storey B-grade office building is the first Australian investment for HNA Group, which plans to make further investments in Australia due to it have a stable economy, strong tenancy covenants and strong capital growth. 
DTZ acted on behalf of HNA while Colliers International represented Colonial.
For more on Asian investors in Australian property, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets" style="color: #000000; font-size: 15px;" target="_blank">Foreign Investment in Australian Property Markets</a>
 
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Chinese developer set to buy Sydney office block as more Asian funds eye CBD properties

<html><body>
It’s not news to anyone that there has been a constant increase in the number of Chinese property buyers and sellers in Australia, particularly in metro city areas. In light of the Chinese lunar New Year, I find it timely to take a look at some of the taste and behaviour idiosyncrasies of this significant group of property actors. 
This article will refer mostly to Chinese residential buyers and sellers. While there are some similar behaviour patterns with Chinese commercial buyers and sellers, most commercial transactions are different as many involve syndicates rather than single players. 
I also would like to highlight that a level of generalisation is required to write an article such as this. The observations made in this article are from years of experience in dealing with Chinese clients and from the knowledge of my colleagues who are of Chinese origins and understand the finer details of the culture. 
The first mistake that many people make when discussing Chinese buyers is to group them all as one. The reality is that Chinese buyers behave very differently depending on whether they are overseas Chinese buyers, new Chinese immigrants, long-term Australian residents of Chinese heritage, or even Australian-born-Chinese buyers of the second generation. The main difference is due to their level of English as well as the level of familiarity, trust and comfort they have in the Australian real estate processes. 
The second mistake often made in understanding Chinese buyers is to assume all buyers of ethnic Chinese origins behave in similar fashion. A Taiwanese buyer can behave very differently from a Hong Kong buyer or a mainland Chinese buyer. Chinese Malaysians, Indonesians or Singaporeans likewise all behave in their own unique manner during property negotiations. 
While increasing sensitivity to Chinese buyers and sellers is becoming the norm in real estate transactions, many agents still only have a superficial understanding of Chinese clients. Many have a basic understanding of feng shui, or the preference for certain lucky numbers such as eight, and tend to focus on these in the marketing of properties. While this is certainly important for some Chinese buyers, it is not usually equally so for second-generation Chinese-Australians. Many properties with the supposedly unfortunate number four (meaning “death”) have sold for high prices to Chinese buyers. Therefore, while important to keep these cultural preferences in mind, it is not an all-consuming factor. Chinese buyers are rational, and they are not buying every single property that has an eight in the number. 
With this said, my colleagues and I have noticed a definite pattern of preferences with many Chinese buyers over the years: 
<ul>
<li>They like full-brick homes (as opposed to brick veneer, weatherboard or fibro – unless they plan to knock it down).</li>
<li>They like rectangular-shaped land.</li>
<li>They generally would prefer not to have a swimming pool. Swimming is not a big part of the Chinese upbringing and many Chinese-born children don’t know how to swim. Therefore a swimming pool is seen to be more a danger and a chore than a source of pleasure.</li>
<li>They like level and clear land with not too many trees (especially protected species such as gum trees, which are not always possible to remove).</li>
<li>They like low-maintenance properties (e.g. paved backyard as opposed to cottage-style garden).</li>
<li>They prefer high side of the street and generally dislike properties that have an entrance below street level.</li>
<li>They have a preference for newer properties and less of an appreciation for older-style features such as an ornate ceiling or picture rails, etc. Therefore, a heritage-listed property usually does not appeal to Chinese buyers.</li>
<li>Position is important, and many Chinese buyers will not want to purchase properties that are at a T-junction, for example.</li>
<li>Aspect is also important, and Chinese buyers typically prefer morning sun than afternoon sun.</li>
<li>Some feng shui-related features are important. However, so long as a “flaw” can be fixed, it shouldn’t be a huge problem. For example, some superstitious Chinese buyers believe it is bad feng shui to be able to see through from the front door straight out the back door. To them, this implies that money which comes into the house will immediately find its way out the door just as quickly. However, if some kind of partition or barrier can be built to disrupt this flow, then this problem is solved. This is quite unlike many non-Asian families who actually think it is preferable to have that cross ventilation and see-through aspect from the front door.</li>
<li>For any Chinese buyers with school-aged children, the proximity to their preferred school is almost always the main consideration. This is not surprising given the heavy emphasis on education by parents. </li>
</ul>
When it comes time to buy or sell, many Chinese buyers and sellers who may not be fluent in English would show a strong preference to deal with Chinese-speaking agents. This is why many Sydney suburbs (such as Chatswood, Eastwood, Epping, Strathfield, Campsie, and Ashfield etc.), which have strong Chinese demographic presence, also tend to have the highest number of Chinese-speaking agents. Quite often the Chinese agents are not necessarily the best when it comes to sophisticated or glossy marketing. However, their ability to communicate in the same language and build a relationship with the client gets them the business. 
At the end of the day, while recognising that there are distinct behavioural differences between Chinese and non-Chinese property buyers and sellers, it is also important to note that there are also similarities. For example, as is the case with anyone else, Chinese buyers also like to get a “bargain” when buying. They tend to be savvy property investors who are risk averse and rely on the advice of their family and friends. Earning their trust is important when dealing with them, regardless of whether it is on the buy or sell side. And just like any other buyers, once they are emotional about a particular property that meets their criteria, they are prepared to pay a premium if they can afford it.
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" title="OH Property Group" target="_blank">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
For more on Chinese buyers and sellers of Australian property, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets">download our free eBook</a>.
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oliverstier-Cu9aF99VRm

Understanding Chinese property buyers and sellers

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The value of all 53,700 properties in The Hills Shire has been put at $26.45 billion.
It's represents a 10% jump on the 2008 total of $23.90 billion given by NSW Valuer-General Philip Western.
Western says landowners and rate-paying lessees are set to receive a notice of valuation given.
Over the three-year period since landowners in The Hills Shire LGA were last issued with the official notices, the value of residential land has generally shown a moderate increase.
It included a 2% increase in median residential values from $377,000 to $385,000 in the 2010-11 valuation year.
Rural land also showed a moderate increase over the three-year period.
In the north-most part of the shire rural land had shown a strong increase in value. Rural land surrounding Maraylya, however, shown a slight decrease in value.
But overall rural land recorded a decline in the last of the three years, when the median rural value eased from $661,000 to $650,000.
Commercial land values have generally remained steady, with some commercial properties in Kellyville and Castle Hill showing a slight increase in value over the three years.
The median value of business (e zoned, which is an "employment zone") commercial jumped in the most recent year by 6.6%, from $2.7 million to $2.88 million. The median value of b-zoned business ("commercial/business zone") commercial land was steady at $619,000.
The value of industrial land has shown a slight increase overall. Industrial land in North Rocks has shown a moderate decrease, while the value of industrial land in Castle Hill has generally shown a slight decrease. In the final of the three years the median value of industrial land eased from $3.62 million to $3.52 million.
Land values in the Rouse Hill development area generally showed a strong increase over the three-year period.
Typical residential land values were:
<ul>
<li>696 square metres at Bradley Drive, Carlingford valued at $441,000 </li>
<li>703 square metres at Carole Avenue, Baulkham Hills valued at $360,000</li>
<li>696 square metres at Carramarr Road, Castle Hill valued at $418,000</li>
<li>550 square metres at Greygum Avenue, Rouse Hill valued at $297,000</li>
<li>700 square metres at Huon Place, Bella Vista valued at $442,000</li>
<li>946 square metres at Kingussie Avenue, Castle Hill valued at $430,000</li>
<li>696 square metres at Thirlmere Avenue, Northmead valued at $391,000</li>
<li>550 square metres at Perisher Road, Beaumont Hills valued at $322,000</li>
</ul>
Typical commercial land values were:
<ul>
<li>917 square metres at Cecil Avenue, Castle Hill valued at $702,000</li>
<li>379 square metres at Kenthurst Road, Dural valued at $540,000</li>
<li>721 square metres at North Rocks Road, North Rocks valued at $425,000</li>
<li>456 square metres at Old Northern Road, Baulkham Hills valued at $709,000</li>
<li>335 square metres at Old Northern Road, Castle Hill valued at $684,000</li>
<li>1,868 square metres at Windsor Road, Kellyville valued at $907,000</li>
</ul>
Typical industrial land values were:
<ul>
<li>1.7 hectares at Annangrove Road, Rouse Hill valued at $3,400,000</li>
<li>6,620 square metres at Brookhollow Avenue, Baulkham Hills valued at $3,010,000</li>
<li>1.3 hectares at Hudson Avenue, Castle Hill valued at $5,670,000</li>
<li>8,083 square metres at Loyalty Road, North Rocks valued at $2,000,000</li>
</ul>
Typical rural land values were:
<ul>
<li>10.1 hectares at Floyds Road, South Maroota valued at $488,000</li>
<li>2 hectares at Jones Road, Kenthurst valued at $700,000</li>
<li>2.4 hectares at Nelson Road, Nelson valued at $704,000</li>
</ul>
 
 
 
<ul></ul>
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jchancellor-FAypfDUnLy

Land values in The Hills, NSW jumps 10% in three years

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The proliferation of information (spin really) about climate change and our own carbon tax doesn’t mean that it has become more understandable.  In fact, the opposite rings true.

Who really knows what happened in <a href="https://www.crikey.com.au/2011/12/12/what-i-did-on-my-trip-to-durban-by-greg/" target="_blank">Durban</a> last month, except that the Kyoto Protocol has been taken out of its casket and put on critical life support; the Gillard government got a breath of fresh air; some carbon-cutting decisions will be made in 2015 and then again in 2020; and $100 billion per year (yes $100 billion every year) will be spent on a Green Climate Fund.  Our contribution – if financing is direct – towards this fund will be between $2 billion and $3 billion per year.

Oh, and of course, there will be an even bigger United Nations climate change summit next year.  This time it is in Qatar. Qatar and a climate change summit is a perfect fit if you ask me as it has – well, according to Wikipedia – the world’s largest per capita production and proven reserves of both oil and natural gas.  Qatar also has the highest and fastest-growing GDP per capita in the world.  The main drivers behind this rapid growth are the production and exports of liquefied natural gas, oil and petrochemicals.  How bloody ironic!

Most don’t know that these talk-fests have been going on since the mid-1990s, when they were informally known as the Earth Summit.  Also ironic, again if you ask me, is that the 18 annual conventions held to date have delivered nothing but hot air.

Closer to home, the carbon tax is now law.  Starting from July 2012, a carbon tax of $23 per tonne will be levied on the 500 biggest polluters in Australia.  This will rise by 2.5% per year until an emission trading scheme kicks in.  The 2015 starting date for such a scheme is now somewhat up in the air, given the Durban outcome. Nevertheless, Climate Change Minister Greg Combet has declared that “Durban has delivered”.

Now depending on whose figures you use, it is suggested that about 10% of your carbon footprint is attributed to your own transport, another 10% is embedded in your home and another 17% or so goes into running that house.

The tell-tale figure is that about two-thirds (63%) of one’s carbon footprint is in what you consume.  So if you want to do anything about climate change, then you should focus on what you consume.  For example, our home household electricity bill – when using one of those online carbon tax calculators – will rise by about $300 or 10% in 2012-13.  The air-conditioning and pool filter are the two biggest culprits.

For the construction industry, the impact of the new tax falls into two categories: cost and demand.  In both cases it is difficult to determine the impact of the carbon tax with any great clarity.

In terms of cost, the new tax will affect the price of building materials and in theory, overall construction costs should rise.  But here is the stupidity of the whole thing, many of the trade-exposed industries, such as cement, steel, aluminium and glass-making qualify for up to 95% shielding from the carbon tax.  So while the MBA and HIA claim that costs will rise by as much as 2% or around $6,000 to build the average new home from July 2012 (and by as much as $13,000 over the life of a 25-year home loan), I do think the financial impact will be much less and more likely than not, negligible.

In fact, the two 0.25% recent rate cuts have delivered the average home owner twice as much savings (close to $28,000) in the interest payments over a 25-year period.

In addition, if you are building a home you can request a number of easy, cost-effective ways to reduce the amount of embodied carbon and energy contained within a new home.  This, too, will reduce its cost.  For example, you can specify fly-ash as a substitute for cement in concrete, which drops the embodied energy like a stone without – as I am told by <a href="https://www.lifestyle.com.au/tv/grand-designs/" target="_blank">Kevin McCloud from Grand Designs</a> – affecting a building’s structural integrity (whatever that means).

The effect of the carbon tax on housing demand is even more complex.  The scaremongers suggest a fall of about 17,000 new starts (about 12% on current demand) once the carbon tax starts from mid-next year.  But I don’t think it will have much impact on new housing starts at all.  In fact, it might get things moving again, especially if suppliers get innovative about building materials and the end housing designs on offer.  Again, the key to minimising the impact of the carbon tax is to reduce consumption.  New houses are much more energy- efficient than old, established homes.  More might start buying new homes over old ones again.

Now, for those malcontents who keep trying to push me down a “carbon tax will make new housing much more expensive” path – rack off.  Just because I think that a carbon tax and the whole climate change industry is a gross misuse of our time and money, and that we have much bigger things to resolve in the world than pretending to do something about an issue over which we have no real control – outside of China, India and America playing ball that is – doesn’t mean that I will roll over and spruik the housing industries’ dogma.

Nobody is listening anyway.  The number of respondents to online carbon tax polls rarely number in treble digits these days.  Blog replies rarely exceed 10.  Only 12 months ago literally thousands replied.  Tired of it all?  Or just more concerned about other things, like staying employed, paying the mortgage and keep ahead of the utility and school fees?

Both, me thinks.

PS Personally I would be more interested if I got the complete Grand Designs series for Christmas like I asked Santa for.  Well, maybe next year.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
 
 
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michaelmatusik-49YzLvdmNv

Scaremongering over the carbon tax just a lot of hot air

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The majority of people still believe wind farms can reduce the land values of nearby properties despite no evidence that this is true, two new reports on the renewable energy source have found.
About 53% of the 1,000 people surveyed in November by renewable energy company Pacific Hydro believe wind farms negatively impact on nearby property prices, and 30% totally disagreed with this assertion.
However, a report on community acceptance of rural wind farms by the CSIRO’s Science into Society Group found that to date the building of wind farms has not “necessarily lead to negative impacts on neighbouring property prices”. 
The CSIRO report notes an assessment of 78 property sales around the Crookwell wind farm between 1990 and 2006, which found no reductions in property values as well as a 2009 assessment by the NSW Valuer-General of 45 property transactions near six wind farms, which found there was no reduction in sale price for properties in townships with views of the wind farm.
Forty of the 45 properties did not sell at reduced prices, and there was no evidence that the decline in prices for the remaining five properties was caused by the wind farms.
Negative media stories could play a role in the perception that wind farms have a negative impact on property prices. 
Analysis of 49 articles about wind farms carried out by CSIRO found more reasons for opposing wind farms were reported in the media than reasons to support them.
Among the benefits noted by rural landowners who have allowed wind farms to be built on their properties include using the extra rental income to remain on the farm  after retirement.
They also said wind farms helped “conserve biodiversity, and prevent subdividing of land; communities benefit from a local wind farm through increased local business, community funds and local government revenue”.
One landowner said having a wind farm on their property could provide “a drought-proofing income stream for my property... Few farmers in this region could survive without off-farm income”.
Another said wind farms helped fund land protection.
“[With] a bit of money to put turbines on my property – that won’t devalue my property – we’ll be able to run less animals and put less pressure on the land and look after it a whole lot better, get the biodiversity happening as it should – that’s a good outcome for me,” a survey participant said.
Detractors said while wind farm might not reduce the actual value of a particular property, it could limit the market of potential buyers, such as those seeking to subdivide.
The report also produced evidence that wind farms could attract tourism, but at the same time found they can conflict with other tourism features.
It cites the Victorian Civil and Administrative ruling approving the Cape Bridgewater wind farm that the wind farm would add a “positive element to the landscape interest, and could become a significant tourist attraction in the South Gippsland area”.
One respondent to the survey said: “[The wind farm] has increased tourism; it’s put them on the map a bit. You know, they sell T-shirts and bumper stickers of our wind farm.”
But another respondent said the wind farm defeated the purpose of having a B&amp;B in a picturesque rural landscape.
Other complaints were that wind farms blocked up country roads during construction and that they changed the landscape.
The Pacific Hydro survey found strong overall support for wind farm developments, with 83% of respondents supporting their construction and only 14% opposed. Support is strongest South Australia (90%), the state that relies on wind-generated energy for 17% of its power, the highest across Australia.
More than two-thirds (69%) of respondents to the survey nationwide support the building of wind farms over gas-fired power plants (25%) and new coal power plants (6%).
Commenting on the results, Lane Crockett, general manager for Pacific Hydro Australia, says there has been “significant debate and media coverage on the effects of wind farms on health, wildlife and amenity”.
“However, this recent poll shows that there continues to be overwhelming support for wind farms, and the recent negative messaging and constant attacks by some in the community does not appear to be altering public opinion too much”
“It is clear from these results that people in regional Australia are drawing their own conclusions on wind energy and they are that they understand the benefits and want to see more of it.
“The results of this poll should serve as a clear message to politicians and policy developers in all three states that most people like wind power.”
<img src="/images/stories/electricity.gif">
Construction is currently underway to build the 500-turbine Silverton wind farm project near Broken Hill, which will generate 1,000 megawatts of power, making it the largest wind farm in the Southern Hemisphere.
There are currently 52 wind farms operating across Australia generating about 1.5% of the country’s total electricity generation.
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Most Australians erroneously believe wind farms will hurt property prices

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The Reserve Bank is likely to cut interest rates a further three times this year, Yellow Brick Road executive chairman Mark Bouris has forecast.
Three rate cuts of 25 basis points each would take the cash rate to 3.5%, with the RBA’s monetary policy committee next scheduled to meet on February 7.
The last time the cash rate was at or below 3.5% was in February 2009, when the RBA cut the rate by 100 basis points from 4.25% to 3.25% to stimulate recovery following the GFC.
Most economists, including Westpac chief economist Bill Evans, <a href="https://www.propertyobserver.com.au/economy/february-rate-cut-tipped-to-boost-australian-housing-market/2012011253030">are forecasting two more rate cuts this year</a>.
But Bouris believes both global economic troubles and local factors will force the RBA’s hand further.
“I don’t like to spread negative sentiment, but a number of factors have been presenting themselves that suggest we’re in for a rough ride and that the RBA will have to look at cutting official interest rates in the first six months of the year,” he writes in the Sunday Telegraph.
“I am picking as many as three rates by the RBA before Christmas.”
On the global front, Bouris points to last week’s warning by the World Bank that the sovereign debt crisis in Europe could tip the world economy into a second GFC.
In the local banking sector, he notes predictions by investment bank UBS that 7,000 banking jobs will go due to the slowest growth in lending in Australia since WW II.
ANZ has already announced that it will lay off 900 staff, and today Toyota says it will cut 350 jobs from its Altona plant.
The other local data Bouris says is pointing to three rate cuts are a 2.6% drop in job ads in December, with 29,000 jobs lost (though the unemployment rate has held steady at 5.2%), stagnant housing finance up just 0.2% between October and November and little movement in property prices of late.
“Yet while we’re starting to see many indicators of a flat economy, flat housing, low credit growth, a drop in job advertisements, we also have reasonably high inflation, which suggests an overheating economy.
“The Reserve Bank’s web site says inflation is now at 3.5% well above the Reserve’s own guidelines of keeping it at 2% to 3%... the result of what they call the two-speed economy.”
This, he says, creates a “conundrum” for the RBA.
Bouris says the RBA would usually raise the cash rate to cool inflation, but says it now has a “broader mandate than simply controlling inflation”.
“The RBA’s three mandated roles are stability of the currency; maintenance of full employment; and the economy prosperity and welfare of the people of Australia.
“I don’t believe that with the current global and domestic weaknesses the cash rate can be kept at settings that control inflation while hurting the general welfare of the people,” he says.
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Mark Bouris tips three rate cuts in 2012

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The single best indication of the correct reaction to today's inflation data was in the financial market's response. In short, there was big disappointment – the market was, as I had correctly predicted, positioning for a very low number, and proved way wrong. Those economists forecasting super-low core inflation prints of around 0.2% or 0.3% – one was even angling for a negative number! – were frankly blown out of the water with the RBA's two core measures averaging 0.6% (to one decimal place). 
The Aussie dollar jumped from US$1.047 before the print to US$1.052 after. More tellingly was the reaction of Australian government bond futures. The benchmark three-year government bond contract immediately plummeted 10 points from 96.74 to 96.64 as traders priced in higher long-term interest rates. The 30-day interbank futures contract also substantially reduced the probability of a rate cut in February, although it is still pricing-in a better-than-evens chance. 
There is little doubt that today's inflation data creates more complications for the RBA. The average of the RBA's two main core measures – the trimmed mean and the weighted median – was 0.6%. The Bloomberg consensus was 0.5%, but all economists expected the risks to be skewed to the downside. (Remember also this is an inflation estimate produced using the ABS's much-improved expenditure class and seasonal-adjustment methodologies. So there are no excuses for the numbers.) 
As I had canvassed here in previous columns, more issues arose as a result of upward revisions to past data. In particular, both measures of third-quarter core inflation revised up from 0.3% to 0.4%. Crucially, this leaves Australia's 2011 calendar year core inflation rate sitting at, officially, 2.6%, which is slightly above the mid-point of the RBA's 2% to 3% target band. The risk is that the fourth quarter also gets revised up, and the numbers start looking a little ugly for Australia's central bank. 
With interest rates now substantially below where they were in 2011, and the benefits of the remarkable Aussie dollar appreciation mostly behind us, it is hard to see how the RBA is going to be confidently forecasting the much lower inflation outcomes over the next two years it requires to justify more stimulatory policy than the one it already has in operation right now (with two pre-emptive rate cuts in November and December). Sure, if the economy starts growing clearly sub-trend, it could make the case. But today it is far more difficult, unless of course this RBA finds it easier to cut rather than raise rates. 
There is, to be sure, much water to still flow under this bridge before the RBA meets again in February. But only a fool would refute the notion that a rate cut in February has become another line-ball – or in UBS's words – “close” call.
 Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
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Firm inflation surprises market: Christopher Joye

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A modest increase in underlying inflation and the decision by the IMF to cut its global growth forecasts have increased the likelihood of the RBA cutting interest rates next month. 
Seasonally adjusted CPI rose 0.2% for the quarter – in line with economists’ estimates to be up 3% year-on-year. 
Fruit prices fell furthest during the quarter, down 13.4% due to a sharp drop in the cost of bananas, while costs also dropped for pharmaceuticals, vegetables and electronics. Domestic holiday travel, beer, telecommunications and rents all increased.
Underlying inflation increased by 0.55% (weighted mean of 0.5%, trimmed mean of 0.6%) in the December quarter to an annualised rate of 2.6%. Headline inflation for the quarter was 3.1% just outside the RBA’s inflation target range of between 2% and 3%, but below estimates of 3.3%.
RP Data’s Tim Lawless believes the inflation figure is good news for interest rates as does Channel Nine finance editor Ross Greenwood. 
“Headline inflation steady. Seasonally adjusted 0.2%. Lock in rate cut Tuesday week,” tweeted Greenwood. 
Financial commentator and TV host David Koch tweeted: “Inflation well under control so Reserve Bank should cut rates in 2 weeks.” 
However, economists are more divided on what the inflation numbers mean for interest rates. 
Rismark International and Yellow Brick Road director Christopher Joye says markets reacted to the inflation results with “big disappointment”. 
“The Aussie dollar jumped from US1.047 before the print to US1.052 after. More tellingly was the reaction of Australian government bond futures. The benchmark three-year government bond contract immediately plummeted 10 points from 96.74 to 96.64 as traders priced in higher long-term interest rates. The 30-day interbank futures contract also substantially reduced the probability of a rate cut in February, although it is still pricing in a better-than-evens chance,” he says. 
According to Joye, the February rate call is a line ball call, with the risk being “that the fourth-quarter [core inflation data] also gets revised up, and the numbers start looking a little ugly for Australia's central bank”.
Macquarie senior economist Brian Redican says the latest figures suggest inflation is “well contained” and will not surprise the RBA.
A rate cut, Redican says, will allow the RBA to “take out more insurance about the weakening global outlook; they can be more worried about those soft employment numbers”.
Rochford Capital currency director Derek Mumford says there might be a rate cut in February but it could be the end of the rate cutting cycle due to the increase in core inflation.
“That would suggest that in the short term interest rates can come down but perhaps the RBA will be less keen to cut rates sharply."
Ahead of the announcement Craig Michaels, senior economist at ANZ, said a 0.5% quarterly increase in underlying inflation would lend further support to its view “that the RBA has scope to further reduce rates, given the continued risk of European financial market dislocation, as well as a cyclical slowdown in Chinese growth and further labour market softness”.
The RBA board will also take note of the International Monetary Fund’s decision to cut its global growth forecast from 4% to 3.25% for 2012 principally due to a continued deterioration the Eurozone. This follows on from the World Bank cutting its economic growth forecasts to 2.5% in 2012 and 3.1% in 2013 – well below June 2011 forecasts of 3.6% growth for each year.
The IMF expects the eurozone to fall into a mild recession in 2012 after the crisis entered a “perilous new phase” toward the end of last year, affecting other parts of the world including the United States, emerging markets, and developing countries.
Olivier Blanchard, the IMF’s economic counsellor, says the global growth outlook is mediocre and could be worse. 
Speaking in Washington, Blanchard says “the world recovery, which was weak in the first place, is in danger of stalling”. 
“The epicentre of the danger is Europe, but the rest of the world is increasingly affected,” he says. 
Mortgage broker Loan Market says the RBA will need to reduce the official interest rate by at least 0.5 percentage points next month to pressure major banks into passing on reductions to customers.
Loan Market spokesman Paul Smith says the big banks have all indicated they might not be able to match a 25-basis-points cut to the cash rate should the central bank cut rates on February 7.
“The RBA will have to go hard with at least a 50-basis-point reduction at their next meeting and the latest official figures showing a lower-than-expected 3.1% annual inflation rate and prospects of rising unemployment support the need for a cut,” he says.
The major banks are coming under pressure from the IMF to raise their capital reserves as a buffer to a possible second GFC – a move that has been rebuffed by the Australian Bankers Association, which says it will force the banks to raise mortgage rates if implemented.
The ABA says the banks are already well capitalised and already implementing requirements under Basel III global banking reforms to hold higher levels of cash.
Holding higher levels of cash reserves would force the banks to ration credit and push up interest rates, the ABA has warned.
 
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