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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Melbourne house prices are forecast to grow by between 0% and 3% in 2012, according to Australian Property Monitors. 
“Melbourne’s housing market will struggle for growth in 2012 as it continues to adjust to the affordability barriers created by the strong price rises of 2009 to 2010,” says APM senior economist Andrew Wilson. 
“The Victorian economy is set to continue to waver early in 2012 as the construction sector struggles to find replacement work following the abatement of the new apartment boom of 2010 and 2011. 
“An oversupply of apartment stock looms, which will keep a lid on rental growth and subsequent investor activity in what is already the most tenant-friendly capital city rental market."
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Melbourne October quarter median house and unit price round-up

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Hobart house prices are forecast to grow by between 0% and 3% in 2012, according to Australian Property Monitors. 
“Hobart’s housing market has retreated in 2011 with median house prices down by just over -3 % for the year,” says APM senior economist Andrew Wilson. 
“Although this is a reasonable performance compared to some of the other capitals, a revival in buyer activity in 2012 is heavily dependent on a lift in the local economy. “With no direct exposure to the resource sector, the Tasmanian economy is set to continue to meander in 2012. As a consequence buyer confidence will remain subdued and house price growth will be flat for most of 2012."
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Hobart October quarter median house and unit price round-up

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Darwin house prices are forecast to grow by between 5% and 10% in 2012, according to Australian Property Monitors. 
“Darwin has recorded a typically erratic pattern of median house price growth in 2011 with October quarter median house prices decreasing markedly by -3.5% and down -3.9% over the year ending October,” says APM senior economist Andrew Wilson.
“Darwin also has good prospects of sustained house price growth through 2012 as it resumes its volatile pattern of housing market activity. 
“Significant exposure to the resource sector, seasonal employment patterns and a severe shortage of accommodation will drive increased home buyer activity levels. It would not surprise to see Darwin record double-digit house price growth by the end of 2012."
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Darwin October quarter median house and unit price round-up

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Canberra house prices are forecast to grow by between 3% and 5% in 2012, according to Australian Property Monitors. 
“The Canberra housing market has proved particularly resilient in 2011 with median house prices down by just -1.7% over the year to October - a nation-leading performance,” says APM senior economist Andrew Wilson.
“Canberra is set to record increases in home buyer activity as economic growth fuels increased public service activity in the national capital. A chronic undersupply of housing will drive prices growth through 2012 and expect this to be around 5% by year’s end."
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Canberra October quarter median house and unit price round-up

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Brisbane house prices are forecast to grow by between 5% and 10% in 2012, according to Australian Property Monitors.
 
“The Brisbane housing market is set to revive in 2012 off the back of the Queensland resources boom that will gather strength through the year – weather conditions notwithstanding," ,” says APM senior economist Andrew Wilson.
“Dwelling shortages, population increases, rising incomes and the improvement in confidence as a consequence of the reconstruction program should contribute to a recovery in buyer activity. Brisbane has the clear potential of double digit growth in median house prices over 2012."
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Brisbane October quarter median house and unit price round-up

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Adelaide house prices are forecast to grow by between 0% and 3% in 2012, according to Australian Property Monitors.
“The Adelaide housing market has floundered this year with median house prices down by over 5% over the year. A significant contributing factor to this outcome has been the continued underperformance of the South Australian economy and its impact generally on buyer confidence," says APM senior economist Andrew Wilson.
“The Adelaide housing market will struggle to revive in 2012 although with South Australia’s direct exposure to the resources sector expect flat to marginal house price increases."
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Adelaide October quarter median house and unit price round-up

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The 2011 pessimism in most housing markets across the country will be replaced by return to growth in 2012, according to Australian Property Monitors, with Brisbane, Perth and Darwin tipped as the likely best performers.
Its October quarter national median house price was off by 1.6% – and down 4.2% over the year.
But going out on a limb against the prevailing more of the same sentiment, APM senior economist Dr Andrew Wilson forecasts next year will provide brighter, but mixed outcomes for housing markets.
Some capital cities are set to revive strongly while others will remain flat, he says.
Much of his forecast is based on the mining boom assisting the continued prospect of strong economic growth in Australia.
“Australia’s economic fundamentals are strong, and are well positioned to weather any downturn in international markets.
"This, coupled with renewed buyer confidence, will be the key to driving prices growth in the new year,” Wilson says.
“Nationally, median house prices should recover to rise by 3 to 5 per cent through 2012,” he forecasts.
Darwin, Perth and Brisbane have the best prospects for price growth, while Sydney and Canberra are also expected to achieve reasonable growth in the year, he says.
Capital City Forecast growth – Median House Prices 2012
National 3% to 5%
Sydney 3% to 5%
Melbourne 0% to 3%
Brisbane 5% to 10%
Adelaide 0% to 3%
Perth 5% to 10%
Hobart 0% to 3%
Darwin 5% to 10%
Canberra 3% to 5%
“Demand for housing will intensify in 2012, particularly in Sydney, Canberra and Perth, which will see housing markets re-energised albeit at different levels,” Wilson says.
<img src="/images/stories/apmdec151.gif">
Source: APM
APM says Brisbane has been the worst performer of all capital city markets in 2011, with median house prices down nearly 7% over the year ending October, with a lingering significant contributing factor being the devastating floods in January.
"The Brisbane housing market is set to revive in 2012 off the back of the Queensland resources boom that will gather strength through the year – weather conditions notwithstanding. Dwelling shortages, population increases, rising incomes and the improvement in confidence as a consequence of the reconstruction program should contribute to a recovery in buyer activity.
"Brisbane has the clear potential of double digit growth in median house prices over 2012,” Wilson says.
He reports low buyer confidence had caused Perth’s median house price to fall by nearly 6% in the year to October 2011, which is almost 10% below the peaks recorded four years ago. "With recessed house prices together with low levels of new construction and a flood of workers seeking the wages bonanza delivered by nearly $100 billion in mining activity, Perth houses prices have the clear potential to rise by a double-digit percentage in 2012," he says.
The third big rise is forecast for Darwin, which has recorded a typically erratic pattern of median house price growth in 2011 with October quarter median house prices decreasing markedly by 3.5% and down 3.9% over the year ending October.
"Darwin also has good prospects of sustained house price growth through 2012 as it resumes its volatile pattern of housing market activity,” Wilson says.
"Significant exposure to the resource sector, seasonal employment patterns and a severe shortage of accommodation will drive increased home buyer activity levels.”
"It would not surprise to see Darwin record double-digit house price growth by the end of 2012," he suggests.
Of the two major capitals, Wilson believes Sydney will be the stronger.
He says Sydney has predictably performed best of the capitals in 2011 with median house prices relatively stable – not surprising considering its underlying lack of housing and associated costly rental market.
"Sydney provides a solid prospect for median house price growth of up to 5% in 2012.
"This growth will come mainly through the lower and middle band suburbs as buyers seek to maximise choices in a market characterised by chronic shortages of accommodation and Australia’s tightest capital city rental market."
He expects the prestige market will remain quiet in Sydney in 2012 although some modest but sustained growth in house prices may be recorded towards the end of the year from a low base.
"This will be contingent on the flow-on effect of the resources boom driving a significant recovery in the share market unleashing the wealth effect and the aspirational buyers that have been largely dormant in Sydney since 2008.
Melbourne’s housing market will struggle for growth in 2012 as it continues to adjust to the affordability barriers created by the strong price rises of 2009 to 2010, Wilson forecasts.
"A waning economic performance in 2011 exacerbated declining buyer activity through 2011.
"The Victorian economy is set to continue to waver early in 2012 as the construction sector struggles to find replacement work following the abatement of the new apartment boom of 2010 and 2011.
"An oversupply of apartment stock looms, which will keep a lid on rental growth and subsequent investor activity in what is already the most tenant-friendly capital city rental market.
"Similar to Sydney however, the flow-on effects of the resources boom and a revival in the stock market may activate the prestige market with reasonable prospects of prices growth from a low base.
“Overall Melbourne house prices should drift sideways over the year with some modest incremental growth a possibility by years-end."
The Adelaide housing market has floundered this year according to APM with median house prices down by more than 5% over the year.
"A significant contributing factor to this outcome has been the continued underperformance of the South Australian economy and its impact generally on buyer confidence,” Wilson says.
“The Adelaide housing market will struggle to revive in 2012 although with South Australia’s direct exposure to the resources sector expect flat to marginal house price increases.”
The report suggests Canberra is set to record increases in home buyer activity as economic growth fuels increased public service activity in the national capital.
A chronic undersupply of housing will drive prices growth through 2012, and APM expects this to be about 5% by year’s end.
The report notes the Canberra housing market proved particularly resilient in 2011, with median house prices down by just 1.7% over the year to October – a nation-leading performance.
For Hobart, Wilson suggests a revival in buyer activity in 2012 would be heavily dependent on a lift in the local economy.
"With no direct exposure to the resource sector, the Tasmanian economy is set to continue to meander.
"As a consequence buyer confidence will remain subdued and house price growth will be flat for most of 2012," he forecasts.
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jchancellor-FAypfDUnLy

Housing markets will recover in most capitals in 2012: APM

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A three-month online consultation aimed at rewriting 50-year-old NSW rules governing the ownership and management of apartments will kick off today, led by NSW Fair Trading Minister Anthony Roberts.
The consultation process will seek to draw input and feedback from strata professionals, apartment owners and the general public and is hosted by public policy think-tank Global Access Partners.
There are currently 70,000 strata schemes in NSW comprising more than 700,000 apartments, numbers that are set to grow, with unit developments forecast to constitute half of Sydney’s new housing by 2040.
Strata schemes apply to anyone who owns an apartment or unit where quarterly fees are paid towards the upkeep of the building and maintenance of common areas. Members of strata schemes must also pay money into “sinking funds” to cover future long-term expenses such as painting the building or replacement of guttering.
Schemes may also contain rules restricting renovations, stating where you can and cannot park your car and whether you can keep pets, but the current complex rules are difficult to enforce.
The launch of the online consultation follows an escalation in strata cases heard by the Consumer, Trader and Tenancy Tribunal, the body that handles residential property disputes.
The end result will be the simplification of the current set of complex regulations.
“An improved, modern and more flexible framework for strata and community schemes is essential,” says Roberts.  “Many people waste thousands of dollars in legal fees because the law is not simple and clear.”
“The original strata Act only had 29 sections. Not only have schemes become larger and more complex since then, but we now have five separate acts plus five associated regulations, with more than 1,000 provisions, regulating the development and management of strata and community schemes.
“The laws have become like a tired, rundown block of flats, with various amendments tacked on over the years to try to cover up the cracks.”
“The construction of new schemes, and service delivery to existing schemes, is a multibillion-dollar industry. Reforming the strata laws can play a vital role in improving the NSW economy,” he says.
The NSW Office of Fair Trading is seeking input on the following four questions:
Q1. What are the main areas of the existing strata and community scheme laws you would like to see changed?
Q2. Can you see any future issues that need to be addressed in the legislation?
Q3. How could the management of strata and community schemes be improved?
Q4. Are there any changes needed to the way disputes in strata and community schemes are resolved?<a target="_self" href="https://www.openforum.com.au/content/strata-laws-online-consultation-question-4"></a> 
The legislation was last amended in 2008, with changes including giving strata owners greater protection on proxy voting in owners’ corporation meetings.
Feedback on strata rules can be submitted <a href="https://www.openforum.com.au" target="_blank">here</a>.
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NSW begins consultation on overhauling complex strata rules

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Unless there is a large-scale European banking default, Australian property prices are likely to rise in 2012, says SQM Research managing director Louis Christopher.

Christopher says he is sticking with his “relatively bullish scenario regarding dwelling prices” provided there isn’t a credit squeeze in Australia brought on by Europe falling over.

“Europe is the key. The risk is clear and present. If Europe allows for large-scale banking defaults and a general credit squeeze, this will see our banks ration housing credit by requiring more conservative loan-to-value ratios. 

“Of course, if the squeeze is large enough, banks could come up with additional ways to reduce their balance sheets.”

In a worst-case scenario banks would call in loans “simply because the loan-to-value ratios have risen too high due to drops in property prices”. 

“No doubt [this would be] an event of the last resort with the bankers knowing full well that such a move could very well trigger very deep house price falls in this country, which would further destabilise their own balance sheets.” 

However, barring any such calamities Christopher expects the housing market to respond favourably to further rate cuts in 2012.

“From our regression modelling it appears that the market is very sensitive to interest rate changes. We have had this conviction concerning the markets from some time now. 

“Yes, even a quarter-point change can move the markets and this is because buyers and owners are highly leveraged. Now that we have had a half point change, which has been passed on in full, there is a greater chance, in our opinion, that dwelling prices will rise,” he says.

According to Christopher, mortgage approvals, which increased in October without any interest rate cut stimulus, need to rise by about 3,000 per month to reach the 37,500 achieved in November 2010.
<img src="/images/stories/christopherdec15.gif">
Source: SQM Research
“The red dot on the chart is the point where housing finance approvals need to get to in order to attain capital growth equating to inflation and naturally, meet our bullish scenario forecast for 2012. So clearly we are not there yet and we will need to reach the red dot by June next year in order for our bullish scenario to play out,” he says.


 
 
 
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Barring a European banking collapse, house prices set to rise in 2012: SQM

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As we look back on 2011, Property Observer is republishing some of our most noteworthy observations of the year. 
 
Population aging in Australia is expected to accelerate.  At present, there are 5 million people over the age of 55 across Australia.  Within the next 40 years, that number is expected to exceed 11.5 million.  This represents a projected growth rate of 150,000 people per annum.
Within a generation, a third of Australians are going to be aged over 55 years old and close to a quarter will be aged over 65.
Assuming that all those aged over 55 years were to move into a new dwelling, there would be a need to create 90,000 new homes across the country each year for this older market segment.  However, most “55-plus” households cannot afford to move into more appropriate accommodation.  The high entry and rental costs of the current retirement products on the market prevent them from doing so.  Many will be forced to age in place.
As a result, the more practical requirement is currently for around 15,000 new retirement dwellings per year, three-quarters of which are needed across the eastern seaboard.  This market is quite undersupplied.  Our estimates suggest that new retirement housing construction has ranged from between 3,500 to 4,250 new starts each year over much of the last decade.
Some relevant statistics
About 80% of “55-plus” households own their home outright, with around 15% either renting or living with relatives.  Most have not moved in the last five or 10 years, while half have not moved in more than 20 years, as the number of times a person moves residence declines considerably with age.
When “55-plus” households do move, it is primarily for lifestyle reasons (35%); followed by affordability grounds (25%) and the want for a smaller and more hassle-free home (20%).  One in 10 moves to be closer to family or friends.
Many in this older market segment are very sensitive to price.  Their new abode must have a strong connection to the local setting.  This market also places a high value on living with others of similar background, age and interests.  This trend also seems to accelerate as one ages.
Whilst many own their principal place of residence, and have done so for some time, many Australians over the age of 55 years are cash-poor.  The latest official data shows that 55% of our older residents live on less than $500 per week and 35% live on less than $350 per week.  Sadly, one-quarter of Australian residents aged over 45 years have no personal income, with 45% largely relying on a government pension or allowance.  A further 25% rely on their investments, including superannuation.
Housing costs
The median house price across our Australian capital cities is now $540,000.  For attached dwellings it is $455,000.
However, older Australians generally own older properties, which in turn generally have lower median values.  In addition, many of the properties held by older Australians need repair, sometimes in a major way, are usually located in middle to outer-ring suburbs and have limited renovation appeal, especially to a younger buying audience.
In short, many properties held by older Australians could be difficult to sell and for a premium.
 
<hr class="system-pagebreak">
 
Australia is facing a demographic tsunami.
There are 5.3 million baby boomers (born between 1945 and 1964), and the oldest are now starting to retire.
This dominant market segment makes up 25% of the Australian population; represents 38% of the country’s households; 43% of the paid workforce and holds 49% of our housing assets (in dollar value), split 46% for owner-occupation and 57% for investment housing.  Yet they do have great equity in their properties – 93% for owner-resident stock and 86% for their investments and secondary homes.
Two out of three of their residential properties are held in a middle-ring suburb.
The baby boomer generation has always distorted the market – like a tennis ball through a garden hose – with some studies suggesting that this demographic set, by its very existence alone, generated about a third of the house price growth over the last 40 years.  Some are now predicting the opposite influence, with ageing boomers applying a drag on asset growth of between 20% and 40%, depending on location.
So, what will the boomers do with their residential assets when they start to retire or retread?
Well, five things are possible:
<ul>
<li>They will sell their investment properties.</li>
<li>They will sell their secondary homes.  But the market conditions are soft and are likely to remain so for some time, hence concepts like <a href="https://www.propertyobserver.com.au/residential/how-to-use-your-second-home-to-secure-a-dream-vacation-michael-matusik/2011120452664">3rd Home</a> will gain traction.</li>
<li>They will downsize, rebuy and pocket the difference.  But this might pose some problems as the right stock isn’t readily available.</li>
<li>They will age in place and maybe consider a reverse mortgage.</li>
<li>They will stay put, but retrofit their homes and rent out a proportion to family and/or tenants.</li>
</ul>
Whether or not ageing boomers will cause the market to implode is open for debate, but a couple of things are pretty certain:
<ul>
<li>There is likely to be slower price growth in the next decade than we have seen in the recent past.</li>
<li>There will be fewer housing starts and sales on a per capita basis.</li>
<li>There is going to be more pressure on gentrifying our middle-ring suburbs.  We need to think outside of the square here and start, for example, redeveloping our older shopping precincts into mixed-use centres including age-in-place retirement accommodation.</li>
</ul>
What would help baby boomers and other market segments move (and make housing more affordable) would be to have stamp duty paid by the vendor and not the purchaser.
It is useless banging on about the need to reduce taxation on property.  In a country where about half of the population relies either directly (i.e. employment) or indirectly on the government for its welfare – reminds me of Ayn Rand’s Atlas Shrugged – and we don’t want to increase overseas migration (yet) – we will need to raise taxes, and property is an easy target.
What we could do is change who pays such taxes and when.  Stamp duty paid by the vendor makes sense; so, too, does levying infrastructure charges and development application fees at the time end-buyers settle, rather than at the beginning of the new project.
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 href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>.
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