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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The experience of a house fire is traumatic for anyone, but what happens when you are a tenant? Who do you call? What do you do?
The first point of call is usually the property manager.  But if you read the legislation there isn’t anything in there about fire, or what the process is.  It doesn’t outline the steps the property manager needs to take. Does the property form part of an owners’ corporation or is it a stand-alone house? Does the owner have insurance? If the property is inhabitable, where do you relocate the tenant to?  Who pays?
There are so many questions, so what’s the process?
Well, recently we had a fire, so I thought it would be an ideal topic.
Our situation is a unit within a development. Therefore the building insurance is taken out by the owners’ corporation.
We made the call to the corporation, and the people there advised they would notify the insurance company.
While our tenant was safe and uninjured, he was shaken up and there was some damage caused to his belongings. The fire brigade advised us the property was no longer habitable.
The next morning we inspected the damage. There was severe smoke damage throughout, a window had been blown out, the kitchen was destroyed and the carpets need replacement due to water, as did the gas ducted heating throughout.  All walls and ceilings throughout the house will need to be washed down and then repainted. All the electrical wiring will also need to be inspected. And the list goes on.
The building insurance policy will cover the rebuilding costs and provide the owner with rental assistance/income during the reconstruction. But did you know that that the carpet forms part of a landlord insurance policy and isn’t part of the building insurance policy? I bet there are lots of property managers and owners who don’t know this!
We meet with the tenant, who as you would imagine was still in a daze about the events of the past 12 hours. As he didn’t have anywhere to live, we reviewed what other properties we had available in the same area and showed him a property just around the corner. We obtained approval from that owner, we prepared all the required paperwork and done – the tenant had a new home.
We did what needed to be done. We did it quickly and with as little further stress or inconvenience to him as possible.
But what totally surprised me from the events of the past 12 hours was the seeming lack of care or interest from people at the owners’ corporation strata managers. They simply advised they would ring me on Monday and let me know what the insurance process was. They never offered once to call the tenant to see if he was OK. They never offered to assist either the tenant or us in finding another property. It was simply expected we would fix things. Someone had just lost his home, and they simply seemed to not care. It was almost like, “Well, Leah will sort things out. She will know what to do,” – but what about if I hadn’t known what to do? Where would this have left the tenant?
So the next time you are at an owners’ corporation meeting, perhaps ask your strata manager what steps they will you undertake if there is a fire at your investment property. If your property burns down or is inhabitable, what will they do to assist your tenant and property manager in this situation?
Their reply may determine if they continue to be the owners’ corporation for your property in the future.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
 
 
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leahcalnan-pwE6GD6KY9

Fire in an investment property leaves unanswered questions

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Despite a modest recovery in the final quarter of 2011, the median house price in metropolitan Melbourne is down $30,000 compared with a year ago, according to the Real Estate Institute of Victoria.
The institute puts the median house price at $550,000, a minor increase of 1.9% from the revised September quarter median of $540,000, but 5.2% down on a median of $580,000 a year ago. 
The price decline equates to Melbourne metropolitan houses losing about $80 a day in value over the past year.
One of the best-performing suburbs of the quarter and the year was Prahran, with house prices up 14% for the quarter to $997,500 and 10.8% for the year. A year ago a house in Prahran cost $900,000, and the median in December 2011 is $997,500.
Affluent Kew recorded quarterly price growth of 36% with the median house price increasing from $1.18 million to $1.6 million (with about 60 Kew houses sold over the quarter, according to realestate.com.au) but does not feature on the <a target="_blank" href="https://www.propertyobserver.com.au/residential/top-10-suburbs-with-the-highest-annual-growth-in-2011in-victoria-reiv/2012012253105">list of the best-performing suburbs of the year</a>, indicating some record sales over the final quarter skewed the results.
The far-outer Melbourne suburb of Mornington (an hour’s drive from the CBD) recorded 10.9% increase in house prices over the quarter, with house prices increasing $50,000 to $510,000. Quarterly house price increases of around 10% or more were also recorded for Kensington (12.4% up to $725,000) and Port Melbourne (up 9.7% to $911,000).
Balwyn North (7.9%), Blackburn (7.4%), Wantirna South (6.9%), West Footscray (6.2%) and Mount Waverley (4.8%) all recorded strong growth over the quarter.
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<td>
 
</td>
<td>
Suburb
</td>
<td>
Dec 2011 median
</td>
<td>
Sept 2011 median
</td>
<td>
Quarterly change
</td>
</tr>
<tr>
<td>
1
</td>
<td>
<a target="_blank" href="/news">Kew</a>
</td>
<td>
$1,600,000
</td>
<td>
$1,175,000
</td>
<td>
36.2%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
<a target="_blank" href="/news">Prahran</a>
</td>
<td>
$997,500
</td>
<td>
$875,000
</td>
<td>
14.0%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
<a target="_blank" href="/news">Kensington</a>
</td>
<td>
$725,000
</td>
<td>
$645,000
</td>
<td>
12.4%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
<a target="_blank" href="/news">Mornington</a>
</td>
<td>
$510,000
</td>
<td>
$460,000
</td>
<td>
10.9%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
<a target="_blank" href="/news">Port Melbourne</a>
</td>
<td>
$911,000
</td>
<td>
$830,250
</td>
<td>
9.7%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
<a target="_blank" href="/news">Balwyn North</a>
</td>
<td>
$1,154,500
</td>
<td>
$1,070,000
</td>
<td>
7.9%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
<a target="_blank" href="/news">Blackburn</a>
</td>
<td>
$768,000
</td>
<td>
$715,000
</td>
<td>
7.4%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
<a target="_blank" href="/news">Wantirna South</a>
</td>
<td>
$556,000
</td>
<td>
$520,000
</td>
<td>
6.9%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
<a target="_blank" href="/news">West Footscray</a>
</td>
<td>
$515,000
</td>
<td>
$485,000
</td>
<td>
6.2%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
<a target="_blank" href="/news">Mount Waverley</a>
</td>
<td>
$740,000
</td>
<td>
$706,000
</td>
<td>
4.8%
</td>
</tr>
</tbody></table>
Unit prices are down 4.2% for the year, with the median unit price falling from $475,000 to $450,000. Over the December 2011 quarter, units managed growth of 1.1%.
The strongest demand for units was recorded in North Melbourne, Armadale and West Footscray. 
Regional houses have delivered investors a better return over the past year, falling by just 0.8%. The median regional house price now stands at $312,500 compared with $315,000 a year ago. 
Of the three main regional centres, demand was highest in Bendigo, where the median house price increased by 6.3% to $294,000. In Ballarat the increase was 3.6% to $290,000 and in Geelong there was a drop of 2.3% to $380,000. 
“The REIV does not predict any significant change in the market during the March quarter as it is generally the quarter with the least activity, however we are starting to see signs that the market may have bottomed in 2011, and, if there are improvements in economic conditions, we may see an improvement in transaction activity from the second quarter of this year,” says REIV chief executive Enzo Raimondo. 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="88" valign="top">
 
</td>
<td width="176" valign="top">
Melbourne house prices
</td>
<td width="176" valign="top">
Melbourne unit prices
</td>
<td width="176" valign="top">
Melbourne regional houses
</td>
</tr>
<tr>
<td width="88" valign="top">
Dec 11
</td>
<td width="176">
$550,000
</td>
<td width="176">
$455,000
</td>
<td width="176">
$312,500
</td>
</tr>
<tr>
<td width="88" valign="top">
Sep 11
</td>
<td width="176">
$540,000
</td>
<td width="176">
$450,000
</td>
<td width="176">
$310,000
</td>
</tr>
<tr>
<td width="88" valign="top">
Dec 10
</td>
<td width="176">
$580,000
</td>
<td width="176">
$475,000
</td>
<td width="176">
$315,000
</td>
</tr>
</tbody></table>
Source: REIV 
Commenting on the December quarter results, Raimondo says that demand in the local residential market improved marginally from the previous quarter, as did housing affordability, due to the two interest rate cuts; however, transaction numbers were significantly lower than for the same time the previous year. 
“REIV data confirmed that, overall, the median house price has not changed over the last six months; the key factors driving the current market are a combination of lower consumer confidence, a slowing state economy and an increase in supply,” he says. 
“Feedback from REIV members during the December quarter was that buyers are not as willing to buy and sellers are not as anxious to sell as they hold out for an improvement in conditions. 
“As we head into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions.”
 
 
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lschlesinger-FZcF9M3vE6

Melbourne metro house prices 5.2% cheaper than a year ago: REIV

<html><body>
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>
 
</td>
<td>
Suburb
</td>
<td>
Dec 2011 median
</td>
<td>
Dec 2010 median
</td>
<td>
Annual change
</td>
</tr>
<tr>
<td>
1
</td>
<td>
Prahran
</td>
<td>
$997,500
</td>
<td>
$900,000
</td>
<td>
10.8%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
Mount Evelyn
</td>
<td>
$406,500
</td>
<td>
$377,000
</td>
<td>
7.8%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
Surrey Hills
</td>
<td>
$1,212,000
</td>
<td>
$1,130,000
</td>
<td>
7.3%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
Brighton East
</td>
<td>
$1,200,000
</td>
<td>
$1,123,000
</td>
<td>
6.9%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
Lilydale
</td>
<td>
$490,000
</td>
<td>
$460,000
</td>
<td>
6.5%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
Mount Eliza
</td>
<td>
$795,000
</td>
<td>
$750,000
</td>
<td>
6.0%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
Williamstown
</td>
<td>
$905,000
</td>
<td>
$856,000
</td>
<td>
5.7%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
Richmond
</td>
<td>
$853,000
</td>
<td>
$810,000
</td>
<td>
5.3%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
Frankston South
</td>
<td>
$565,000
</td>
<td>
$540,000
</td>
<td>
4.6%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
Rosebud
</td>
<td>
$380,000
</td>
<td>
$367,500
</td>
<td>
3.4%
</td>
</tr>
</tbody></table>
Source: REIV
 
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cknowlton-QnEa6ntUYP

Top 10 suburbs with the highest annual growth in 2011 in Victoria: REIV

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Asian buyers are expected to cast an eye over the tender documents for the Calderwood Valley Golf Course in the NSW Illawarra.
The 18-hole, par 70 Albion Park course was established in 1995 by the late Noel Smithers and his family, who enlisted golf course architects McKay and Sons to design the course.
<img src="/images/stories/calderwood2.jpg">
<a target="_blank" href="https://www.calderwoodgolfcoursesale.com/">The property</a>, located 20 minutes south of Wollongong, comprises 31 hectares of golf course and an additional 20 hectares, some of which is escarpment land and not able to be developed.
Two homes are on the holding, which straddles two local government areas – zoned 1 (a) agricultural with Shellharbour Council, and RU2 rural landscape with Wollongong Council.
Recreational land use as a golf course and accommodation has council approval in both municipalities.
{yoogallery src=[images/stories/jan24calderwood]}
It’s close to Delfin, Lend Lease’s approved 4,800-home Calderwood Valley Estate site. 
No price estimate was given for the property.
‘‘It’s rare to get a golf course, especially a profitable one like this, to sell, so it’s too early to even give an approximate on what this property could fetch,’’ agent Andrew Hedley from Bevans Thirroul told the Illawarra Mercury.
‘‘And what is different about this property as opposed to golf course fire sales, is that it is successful in attracting not only local players but also ones from Sydney and Canberra.’’
An adjoining 51-hectare farm is currently also for sale.
 
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jchancellor-FAypfDUnLy

Asian buyers tipped to consider Calderwood Valley Golf Course in NSW Illawarra

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Last year was a great year for office building owners in the Perth CBD. Net effective rents for A-grade properties jumped by 24% over the 12 months to mid-year and the vacancy rate started to decline dramatically, estimated to be less than 4% by the third quarter of 2011.
The impact of the two-speed economy is now particularly apparent in this market. Next year, demand is expected to continue to accelerate, however, there are a number of new developments that will help to moderate rental growth and absorb tenants.
A move to decentralise hovernment tenants to non-CBD locations will also assist in accommodating demand.
The Brisbane CBD is also experiencing significant demand, however the floods at the start of the year, as well as a significant pipeline of development have led to relatively flat rental levels. Next year, there will be two buildings completing, One One One Eagle Street and King George Central. Similarly to Perth CBD, these will help to moderate rental growth, however net absorption levels are expected to be high, with rental growth really starting to accelerate towards the end of the year.
Although the Brisbane and Perth CBD office markets will be the obvious beneficiaries of growth in the mining sector, other CBDs are also expected to benefit. According to Deloitte Access Economics, Melbourne is a world leader in the provision of front and back office services to mining, while the Adelaide CBD is likely to benefit from the Olympic Dam expansion, with the first stage of this expected to complete by late 2013.
Australian office property has been the <a href="https://www.propertyobserver.com.au/commercial/offshore-investment-in-australian-commercial-property-at-20-year-high/2011122052916" target="_blank">most popular investment category for overseas investors</a>. The total volume of Australian office property acquired by offshore purchasers increased from $644 million in 2008 to $3 billion in 2011, a 365% increase. Asian and North American investors were the dominant purchasers.
Next year, these volumes are likely to continue provided there are enough owners willing to sell. Globally, there is still a lot of capital looking for a place to invest and Australian property is attractive due to Australia’s high levels of transparency and relatively solid performance.
Poor economic performance in Europe and the US is a positive for Australian property from this perspective. It is expected that similar to last year, Asian investors will be the main purchasers.
The likely sellers next year are the REITS, with some indicating that they plan to sell non-core assets. It is also possible that private investors will look to capitalise on the strong demand for their assets. The main competitors for Australian property will be the wholesale funds that are also looking to buy.
Nerida Conisbee is national director of office research at <a href="https://www.colliers.com.au/" target="_blank">Colliers International</a>
For more expert forecasts for the property market in 2012, <a href="http://propertyobserver.com.au/ebooks/free-ebook-property-forecasts-for-2012" target="_blank">download our free eBook</a>.
 
 
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nconisbee-4KnoX9XmtH

Perth and Brisbane CBD office markets to get mining sector boost in 2012

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Queensland architect DBI Design has won the coveted World’s Leading Hotel Award for its Etihad Towers project in Abu Dhabi at the World Travel Awards in Doha.
The Brisbane-based outfit was up against some the world’s leading architects including France’s Jean-Michel Wilmotte, who transformed two Art Deco Paris offices – originally designed by the distinguished 1930s architect Charles Letrosne – into the Mandarin Oriental Paris. Wilmotte is well known for his redesign of several wings and galleries of the Louvre Museum.
<img src="/images/stories/dbi2.jpg"> 
Other finalists were Jestico + Whiles for the W Hotel London, New York’s Skidmore, Owings and Merrill for The Park Hyderabad, Allan Murray Architects for Hotel Missoni Edinburgh, which is a UNESCO World Heritage site, and the American firm Kohn Pedersen Fox Associates for the Ritz Carlton Hong Kong.
<img src="/images/stories/dbi5.jpg">
DBI managing director Warren Coyle says he is delighted that Etihad Towers claimed the prize against such imposing competition.
Etihad Towers is a US$1 billion (A$962 million), five-tower project in Abu Dhabi’s exclusive beachside area of Al Ras Al Akhdar near the Corniche. It has three residential towers with 800 apartments, 200 serviced apartments, a 400-room Jumeirah hotel, 12 restaurants, retail space and a convention centre. Worked started in 2006 for His Highness Sheikh Suroor Bin Mohammed Al Mahyan.
<img src="/images/stories/dbi3.jpg"> 
“It is a very sculptural form, and the owner really liked that iconic style. He wanted a landmark and a statement to Dubai, so we set out to give him one,’” Coyle says. 
DBI was invited to enter the international design competition after one of the developers bought an apartment in the Ultra building on Broadbeach, which DBI had designed. 
DBI designed, engineered and fitted out the project mainly from its Brisbane office.
“Designing remotely from Australia was a challenge, and we were the lead consultant so had a great deal of control including structure, air-conditioning, and acoustics which was new to us and very challenging,” Coyle says. 
<img src="/images/stories/dbi4.jpg">
DBI is behind some of Brisbane’s most avant-garde buildings and is working on FKP’s AUD$210 million The Milton. 
“We can design projects that are truly world-leading,” says Coyle. 
The recent prize, which is considered the “Oscars” of the travel industry, has more than 5,000 companies from 162 countries competing in 1,000 categories. 
<img src="/images/stories/dbi6.jpg">
The prize is DBI’s first international award, although the firm has accumulated a swag of local awards. 
“This award so is a nice start for us on the international scene,” Coyle says.
<img src="/images/stories/dbi1.jpg" style="border-style: initial; border-color: initial;">
 
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andreadixon-oif3j7eKne

Queensland-based DBI Design wins award for Abu Dhabi hotel Etihad Towers

<html><body>
A forecast that Australian property prices will fall 60% over the next few years has excited the Twitterverse.
The prominent property <a target="_blank" href="https://www.propertyobserver.com.au/residential/property-prices-to-fall-20-by-2013-year-s-end-steve-keen/2011101952000">doom commentator Steve Keen</a> has expressed ironic relief that another analyst has forecast even worse tidings than his longstanding forecast for the Australian property market.
United States analyst Jordan Wirsz forecast a 60% fall in Australian capital city house prices over the next five years.
<img src="/images/stories/keentweet.jpg">
“Thankfully someone taking the bear heat off me,” Keen tweeted today.
<img src="/images/stories/wirszwebinar.jpg">
Wirsz, a self-described author, speaker and real estate expert, <a target="_blank" href="https://trade-futures.com/australia_real_estate/australia_real_estate">gave a webinar on Australian property</a> this week. His webinar is available to be heard for $89.
News Ltd papers reported today his forecast that right now was not a time to be buying real estate in Australia.
“The market has slowed substantially but residential prices are likely to fall up to 60%, possibly even more, within five years," Wirsz said.
It reported his outlook was even grimmer for land, which Wirsz said being more speculative would plummet by as much as 80% and 90% in value.
Commercial property would shed at least 50% of its value, he told reporter Sonja Koremans.
Wirsz suggests a sluggish recovery would begin in 2016.
“If you are home owner, be cautious, get rid of your debt, consider selling if you don’t plan to be in your house for more than seven years and downsize or become a tenant," he said.
The only winners will be real estate agents cashing in on bank-owned properties, he added.
Properties in capital city would be hardest hit “because Australian cities are some of the most overvalued in the world and more speculative than regional areas", Wirsz said.
While the comments have been questioned by Tim Lawless at RP Data, other commentators have given the forecast some credence including economist, Stephen Koukoulas.
<img src="/images/stories/kouktweet.jpg">
“This looks ridiculously extreme: but many who've experienced a property crash still cannot explain why Aust is diff,” Koukoulas tweeted.
Wirsz says he has $500 million of real estate based transactions under his belt.
<img src="/images/stories/jordantweet.jpg">
Wirsz, a former fund manager and private capital financier, says he has been heavily involved and invested in real estate for over a decade.
“Jordan has seen the national real estate markets at their best, and at their worst.
<img src="/images/stories/wirszbookcover.jpg">
“Jordan has been featured on Fox News, CNBC, NBC, and many others, as well as having been recognized by members of Congress, Senate, and state government, awarded Young Entrepreneur of the Year by the SBA, Top 40 under 40, and has published four books,” his marketing screed says.
</body></html>

A 60% price fall - Incredible prediction of Australian real estate bloodbath excites Twitter

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?There is little chance of a housing market crash this year, says HSBC chief economist Paul Bloxham as part of his macro-economic outlook for 2012. 

Bloxham says there are three main reasons why prices won’t plummet: the majority of households can service their debt; the undersupply of housing is growing at a greater rate <a href="https://www.propertyobserver.com.au/demographics/australia-s-population-up-1.4-in-2010-11-as-migration-slows/2012011953093" target="_blank">than the decline in population growth</a>; and there is strong demand for housing close to major urban areas. 
Bloxham expects these three broad factors to underpin the housing sector and remains “unconcerned about the possibility of a large decline in housing prices this year”. 
Expanding on the first of these factors, Bloxham says that while aggregate household debt is high in Australia, “it is well-allocated to households that can afford to service it”.
<img src="/images/stories/bloxham1.gif">
“Around three-quarters of household debt in Australia is held by the top two income quintiles. These households also typically have significant equity built up in their properties and assets. 
“Indeed, a significant proportion of this debt is held against a second property, to take advantage of the mortgage deductibility on investment properties. 
“Around one-fifth of Australian households have a second dwelling,” he says, adding that the tax system favours these investment properties. 
“Around one-quarter of all household credit is for the purpose of holding an investment property. Indeed, when making international comparisons of household debt levels, this is a critical point to keep in mind.”
<img src="/images/stories/bloxham2.gif">
He also notes that the debt-to-income rate has been broadly steady for the past five years, and has been declining modestly over the past year.
“Despite the decline in housing prices last year, non-performing housing loans also remained a very small share of total loans and significantly lower than in other developed countries.”
On the second point of housing supply, Bloxham says construction of housing is still “well below the cumulative demand that exists”.
“Most industry estimates suggest a shortage of around 100,000 homes, which is over two-thirds of one year’s production. While population growth has slowed to be in line with growth in the number of dwellings, construction has yet to catch up with the demand overhang.”
<img src="/images/stories/bloxham3.gif">
Lastly, he says there are significant constraints in the supply of additional dwellings close to the urban centres, and thus within a reasonable distance to employment in the urban centres.
“For these ‘high-quality’ dwellings there is strong demand and limited supply. Supply is constrained by zoning regulations, a lack of willingness of local governments to allow further urban infill in the major cities, and the lack of quality transport infrastructure.
“Despite its artificial nature, this is still a constraint. Unless this constraint is lifted – which seems unlikely to occur rapidly – the supply of dwellings close to urban centres will remain low relative to demand, supporting prices,” he says.
Bloxham says the main risk to the housing market is a sharper increase in unemployment, which he says is the “typical trigger of rising loan arrears”.
But, he says, the RBA has a powerful tool for providing support for the housing market and employment. 
“While we expect the unemployment rate to rise further from here, we expect it to peak around the middle of the year, before falling as expected RBA rate cuts provide support for the economy.” 
Bloxham expects the trend of households increasing their savings and reducing their borrowings to continue in 2012, but says lower interest rates should put a floor under house prices. 
“While increased savings can often be seen as a bad thing for the economy, especially when everyone does it at once, in Australia’s case it has occurred just at the right time: that is, at a time when household income growth has been strong,” he says. 
Bloxham forecasts housing credit growth to remain subdued in 2012, with household consumption slowing in response to a further modest weakening in the labour market, “though this should be partly offset by lower interest rates”.
 
</body></html>

Three reasons why there is no Australian housing price bubble: HSBC's Paul Bloxham

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NAB’s highly regarded interest rate strategist, Peter Jolly, thinks that an RBA rate cut in February is only a 50:50 bet. I agree. Frankly, I see no need to cut rates at all. I don't buy the global recession line. And I am still worried about global (and thus Australian) inflationary pressures, especially in the medium term. 
As one portent, US core inflation has started bubbling up again: during the 2011 calendar year, headline inflation in the US rose by 3% while core increased 2.2% – both above the US Federal Reserve’s implied target. 
I certainly don't agree with Professor John Quiggin, who yesterday published an op-ed arguing that the RBA should drop its singular inflation target and instead focus on targeting economic growth (or nominal GDP). Central banks should concentrate, laser-like, on two things only: price stability (viz., inflation) and financial stability. Leave the rest to fiscal policy and the politicians. But forgetting what I think, because, in case you had not noticed, I am not the RBA, my best guess at this stage is, like December, February is a very “line ball” call for an eager-to-please, financial markets-enraptured central bank (it shouldn't be, but it is). Anyone claiming it's a “done deal” has not eaten their Weet-Bix for brekkie. One key wrinkle is this: if you believe that the four major banks – they are the financial system these days and really all that counts – are entitled to maintain their current world-beating returns on equity and should not have to eat any of the current funding cost increases (or heaven forbid, cut staff salaries), then an RBA rate cut in February will be all about major bank margin preservation. (And do you get the irony? Remember bank profits have nothing to do with the RBA's cash rate, or so we were told!)
All the hoopla around the major banks shedding a few staff is simply a PR campaign to explain to the public that times are very tough. It is the first salvo in a renewed attempt to maintain or expand major bank net interest margins, which are getting squeezed by higher funding costs. As I have pointed out too many times to count, there is another alternative: our government-guaranteed banks could simply target lower returns, lower profits and lower margins in recognition of their substantially lower risks (as a function of explicit taxpayer guarantees, new RBA liquidity facilities and lower leverage).
If the RBA cuts, it is entirely possible the banks pass on less than half, if any. So why cut in the first place? We've had two in succession already, which have yet to have a material impact – in fact, rate changes typically take two years to have their full effect. And the RBA is the first to admit it cannot forecast the future. December was a “weak-at-the-knees, let's dole out some insurance for our banking and financial market buddies” moment. The RBA has time on its side. The one real rider to this is inflation. And it is a D-Day of sorts for the February meeting. If core inflation prints super-low – say 0.3% or less again for the fourth quarter – and the third-quarter numbers don't revise up, then I would agree with the many newly minted-doves (wink, nudge, HSBC’s Paul Bloxham!) that the evidence is growing that the RBA can afford to furnish the economy with more rate relief. I still wouldn't cut myself, but that's just me. I care about savers as well as borrowers. Anyway, here is what NAB's Peter Jolly has to say: "The RBA’s Feb 7 decision…remains a close-call. [Yesterday’s] labour force report didn’t give us any fresh leads, as while employment growth is weak – exactly zero jobs were created in 2011 compared to 365k in 2010 – a bit surprisingly the unemployment rate has remained steady around 5.2% for the past six months. So downward pressure on wages and inflation remains modest. Data to watch will be Wednesday’s Q4 CPI (NAB economists expect a benign increase of +0.5%qoq/+2.4%yoy) and then December’s NAB Business Survey Tuesday week…All up, a Feb 7 rate cut remains close to a 50:50 call at this stage. Market pricing little changed over the week @84%."
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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chrisjoye-JYhJsTrNRC

RBA February rate cut still a 50-50 call: Christopher Joye

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Kryal Castle, the mediaeval-themed property set on the slopes of Mt Warrenheip about two hours' drive west of Melbourne, has been sold after several unsuccessful marketing campaigns.
Built in 1972 as a life's dream by the vendor, Keith Ryall, the tourist attraction and function centre is east of Ballarat, visible in the distance to commuters taking the Western Highway.
It’s been bought by Castle Tourism and Entertainment Pty Ltd, which is headed by Ballarat district publican Gary Browning. Its other directors include John Hatherley, a former Glencore operative, currently the chairman of Tadcaster Holdings in Singapore, the tourism and entertainment company that operates Molly Malone's, Singapore's first Irish pub. The other Castle Tourism directors are Melbourne regional tourism advisor Erin Joyce and the Singapore-based Mark Hinkley.
The consortium is said to be gaining inspiration from Britain's Camelot Theme Park and Alton Towers Resort, with plans for mediaeval-inspired rides, 3D theatres, jousting and other arena-style entertainment.
In mid-2010 Ryall and wife Joyce were approached with a flighty offer in the lead-up to the <a target="_blank" href="https://www.theage.com.au/victoria/brothel-owners-10m-plan-for-kryal-castle-20100721-10k5s">castle’s July 2010 auction from a Brunswick businessman</a> who planned to convert the 22-bedroom, 30-bathroom fortress into an adults-only entertainment venue.
The Leigh Creek vendors own farmland abutting the fortress, which comes with bluestone castle, moat, drawbridge, tavern and maze.
It has operated as a tourist attraction since 1974.
The official price of the sale of the 10.9-hectare property has yet to be registered, but price expectations were upwards of $1.5 million.
Late last year interested parties were being advised that $1.7 million would be needed to outbid the highest offer.
The property no longer appears on the website of Gerard Cosgrave of Harcourts Ballarat following its sale.
A call to the castle had a recorded message saying it is due to re-open for general admissions in mid to late 2012 after a refurbishment of exhibits and displays.
It remains available for specific events, such as this weekend, when INXS, fronted by Northern Ireland singer-songwriter Ciaran Gribbin, will perform at the castle in their Red Hot Summer regional tour along with Vanessa Amorosi and James Reyne.
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