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.

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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 Shopping Centre Council of Australia has backed zoning and planning recommendations by the Productivity Commission aimed at encouraging a more level playing field for all retail formats. 
The Productivity Commission’s final report notes the imbalance between shopping centre landlords and smaller tenants, who have to pay significantly higher rent than anchor tenants due to an imbalance of power and a lack of rental alternatives. 
To address this, the Productivity Commission recommends the broadening of business zones and significantly reducing prescriptive planning requirements to allow all retail formats in existing business zones. 
“We broadly support the commission’s recommendations on planning and zoning,” says Milton Cockburn, executive director of the Shopping Centre Council of Australia. 
“In particular, we are pleased that the commission recognises in its final report that all retail formats have to engage with the planning system and that it is not just a constraint on the so-called ‘new retail formats’. 
Cockburn in particular highlights the final recommendation that “all retail formats” have access to fairer zoning and planning regulations, as opposed to the draft version, which only singled out “new retail” formats. 
As an example, under the recommendation general retail and bulky goods outlets would be treated the same under state and territory planning schemes – meaning no retail format would be able to use planning and zoning regulations to gain a competitive advantage over others. 
“In the longer term, the planning objective should be to have one ‘open zone’ or multiple-use zone where a broad variety of land uses can be considered — such as retail, commercial and even some low-impact industrial uses,” the report says. 
Cockburn says all the other recommendations are directed at facilitating increased retail competition, and “we support this provided it results in all retail formats competing on a level playing field”. 
“We would have liked to see stronger support for activity centres policies (places where retail and commercial activities are combined in one location) and, within that support, particular recommendations for ensuring and increased supply of retail land within those activity centres,” he adds.
 
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lschlesinger-FZcF9M3vE6

Shopping Centre Council backs calls for relaxed retail zoning

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All you need is a sprinkling of confidence, with an understanding that things are not as bad as you read in many newspapers.
For some time now, I have been trying to explain how the underlying fundamentals for Australia's economy and commercial property are strong.
And a recent AFR headline, “Recruitment boom bucks the trend” (December 9, 2011, page 41) now confirms that our major law firms are "in the midst of a hiring spree".
However, if you still need some more convincing of Australia's wellbeing, just take a look at these two graphs.
<img src="/images/stories/confidence.gif">
Clearly, two positive aspects emerge:
Our economy is outperforming other major countries; and
Australia has actually surged ahead since the global financial crisis in 2008 – whereas other countries have barely clawed back to where they were.
Despite retailer complaints regularly making headlines, overall household spending forms a major part of that growth. In fact, consumer spending grew by 1.2% in the quarter (and 3.8% over the year) to September.
Furthermore, incomes are growing, along with a record terms of trade. Plus, corporate profits surged 5.7% for the quarter — climbing to 10.7% for the year.
Moreover, business investment is up 12.9% for the quarter — representing a 22.7% increase for the 12 months to September.
Unfortunately, you can't cajole (nor control) a country's level of confidence, because it is a very fragile commodity.
However, the Westpac-Melbourne Institute Consumer Sentiment Index and the NAB monthly business survey are both showing a general improvement in confidence.
Bottom Line: It should only take a little “think time” over our extended summer break for the penny to drop. And when it does, people will quickly begin to raid that pile of savings they've been squirreling away.
I hope the latest interest rate reduction will provide the encouragement needed for serious investors to realise that now is the time to step back into the commercial property market.
And just make sure you do so, before this rare opportunity dawns upon everyone else.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
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chrislang-EQKojcgJPV

Now is the time to invest in commercial property

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The Shopping Centre Council has rejected calls by the Franchise Council of Australia to cap the amount retailers are compelled to spend on store fit-outs, saying attractive stores are integral to combating the threat of online retail.

"Successful retailers say you have to be prepared to spend money to inspire customers to engage in the bricks and mortar experience," the SCC, which represents shopping centre owners and managers, says.
"Australian franchisors want regulated limits on how much they have to spend."
The SCC is responding to the FCA's plans for a voluntary code of conduct for landlords and tenants, designed to stem disputes between the two.
The FCA, which represents franchisors and franchisees, says the code is designed to address "extreme behaviour" such as "excessive" rent increases and "unreasonable and costly requirements in relation to shop fit-out and signage".
FCA executive director Steve Wright says the ball is rolling on the code of conduct.
But the SCC says that successful international retailers "stress the need for store fit-outs and store-fronts to be exciting, modern and seductive for customers."
"They also stressed the need for shopping centre environments to be constantly refreshed so they remain an ongoing magnet for customers."
According to the SCC, shopping centre owners have no incentive to make unreasonable fit-out demands of their tenants.
"Shopping centre owners fully understand that fit-out requirements are a delicate balance: on one hand, there is the need for shops to be exciting, fresh and seductive to customers; on the other, the amount spent can't be so much that it jeopardises the retailer's business plan and they can't afford to pay the rent," the SCC says.
"After all, the money spent on fit-outs does not end up in the owner's pocket."
But the Franchise Council of Australia says shopping centre fit-out requirements are expensive, too frequent and an unfair imposition on tenants who have leases for as short as five years.
"The problem is, the shopping centre management or owner is trying to turn the thing in to an art gallery instead of a retail precinct," the FCA says.
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/"> SmartCompany.</a>
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Shopping Centre Council says mandatory store fit-outs necessary to protect bricks and mortar from online

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The next round of the European crisis will involve banks. In Australia, suddenly what banks pay for deposits will become a major issue. Having been forced to cut their mortgage interests rates, the Australian banks will be tempted to recover that money via lower term deposits and other deposit rates – in other words, to take the money from retirees.
But there is a danger in this. Australian term deposits are cheaper than borrowing on the overseas wholesale market. Moreover, there are clear dangers that the wholesale market could be greatly diminished by the European manoeuvres. The ratings agencies have already downgraded the big Australian banks for their dependence on wholesale borrowing. Losing market share in deposits carries risk.
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And to underline this global banking risk, foreign investors are rushing into Australian government bonds at yields below 4 per cent. They are snubbing Australian banks, which are paying in the vicinity of 50 per cent more for their money than government bonds. The government will have to consider reinstating its deposit guarantee.
At the moment, there is a minimum of trust among European banks because everyone knows everyone is hiding losses – it’s a question of who is broke and who is not. As trust breaks down, so does confidence in European banks. Of course, if the politicians can convince markets to pay more for Italian and Spanish paper, then those paper bank losses will decline.
Nevertheless, any further deterioration in Italian and Spanish bonds (and perhaps French) during 2012 would severely damage the wholesale banking market, possibly at a time when Australian banks have maturing overseas wholesale loans.
Australian banks have already slashed deposit interest rates, and if they cut them again you could see an exodus of self-managed funds and other money, which will seek better rates from corporate securities, bank hybrids or even bank shares.
At the weekend, the most aggressive bank in leading deposit rates down was ANZ – the bank that broke ranks in cutting mortgage rates. This morning it has narrowed the gap, although its term deposit rates in most periods are still a little below the other big banks, except in five-year paper where ANZ offers 5.8 per cent – the same as NAB.
However, in this five-year sector Westpac has suddenly taken the lead and has lifted its offering from 5.8 per cent about two weeks ago to 6 per cent, compared to ANZ's 5.8 per cent, CBA’s 5.9 per cent (over $50,00) and NAB's 5.8 per cent.
It is fascinating that while the Westpac economics department has been the most vocal in forecasting lower rates, when it comes to term deposits the bank's special rate for products up to five years' duration either matches or beats its opponents.
CBA and NAB match Westpac in most (but not all) rates but if customers with larger sums seek a better rate, they can usually negotiate it. This is a game that will unfold as the day and week moves on.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
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The big four's risky rates play: Robert Gottliebsen

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Barton MP Robert McClelland has been appointed the new Minister for Housing and Homelessness in the Gillard government.
The combined postings were previously held by the Federal Minister for Social Housing and Homelessness, Senator Mark Arbib, and Jenny Macklin as Minister for Families, Housing, Community Services and Indigenous Affairs.
According to lobby group Australians for Affordable Housing campaign manager Sarah Toohey, the “inclusion of a single housing minister in the federal cabinet, responsible for all Commonwealth housing policies and programs, is something we have been advocating for and we’re hopeful that this demonstrates that the Gillard government is making housing affordability in Australia one of its top priorities”.
The Housing Industry Association has welcomed the appointment.
“The Gillard government has today noted the challenge that housing affordability (or the lack thereof) presents and has highlighted its commitment to focussing on this issue,” says HIA managing director Shane Goodwin.
“Creating a ministry which includes ‘under one roof’ all facets of housing supply across the spectrum of public and social housing, together with private owner-occupier and rental stock is a crucial step towards delivering a successful package of housing supply policy reform and implementation is achieved,” Goodwin says.
 
 
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Robert McClelland appointed Minister for Housing and Homelessness

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The ABS housing finance data released today has once again reaffirmed what I have argued here for months now: Australia's housing market is stabilising, and would likely have commenced a gradual recovery in the absence of interest rate accommodation from our recently appointed major bank insurer, aka the RBA.
Today the ABS reports that in the month of October – before the November or December rate cuts, which have been passed on to borrowers mostly unperturbed – the number of new home loans approved to people buying existing dwellings had once again risen by a very healthy 0.9% month-on-month.
Indeed, the number of new home loans approved by Australian lenders for purchases in October – not “refinancings” – was higher than any other month since way back in 2009. You can see the very steady ramp-up in seasonally adjusted new home loan approvals in my chart below.
<img src="https://www.urban.com.au/images/stories/december12.gif">
Now for some reason analysts get confused when interpreting this housing finance data. In respect of the future performance of the housing market, we don't care much for purchases of newly developed homes, which are a small fraction (circa 5%) of the total, refinancings of existing loans, the share of owner-occupiers versus buyers, nor the 'value' of loans (where the latter is affected by a range of things including the value of the homes being purchased, the types of buyers in the market – e.g., first timers acquiring cheaper homes – and the policies of lenders).
The single best proxy for the demand-side of the housing market is the seasonally adjusted number of new loans approved for the purchase of existing homes, which is about 20 times the size of the “new dwellings” series.
Since April 2011, this benchmark has been growing healthily, averaging a stonking 2.2% increase each month. Let me reiterate, this was before two consecutive RBA rate cuts that have been passed on to borrowers.
We got the first glimpse of the impact the RBA's very generous policy reversal has had on the housing market via <a href="https://www.propertyobserver.com.au/mortgages/afg-mortgage-approvals-at-33-month-high-as-investors-return-to-the-market" target="_blank">AFG's data for November</a> (AFG is Australia's largest mortgage broker). This series, which leads the ABS numbers, printed at its highest level since March 2009, with investors hitting their biggest relative share in history.
Expect much more of this in 2012 as Australians seek to take advantage of sub-6% fixed-rate home loans and discounted variable rates only slightly above this level.
As I have noted too many times to count, our incredibly interest rate sensitive housing sector (which is much more so than it has been in decades past) will likely prove a very powerful hedge against adversity in the event that the RBA slashes rates. In contrast to other countries, almost all of Australia's residential borrowers are on fully adjustable-rate mortgages that typically price off the RBA's cash rate.
Why? Because circa 60% of bank funding comes from short-term retail deposits, which in turn price off the short-end of the yield curve largely controlled by the RBA. But I will leave bank funding costs for a column on another day!
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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 Housing market recovered strongly in October 

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<table border="1" cellspacing="0" cellpadding="0" width="337"><tbody>
<tr>
<td width="64" nowrap valign="bottom">
Postcode
</td>
<td width="124" nowrap valign="bottom">
Suburb
</td>
<td width="149" nowrap valign="bottom">
Indicative gross rental yield for units
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2158
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">DURAL</a>
</td>
<td width="149" nowrap valign="bottom">
7.1%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2011
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">WOOLLOOMOOLOO</a>
</td>
<td width="149" nowrap valign="bottom">
6.5%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2015
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">ALEXANDRIA</a>
</td>
<td width="149" nowrap valign="bottom">
6.4%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2000
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">SYDNEY</a>
</td>
<td width="149" nowrap valign="bottom">
6.2%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2007
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">ULTIMO</a>
</td>
<td width="149" nowrap valign="bottom">
6.1%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2008
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">DARLINGTON</a>
</td>
<td width="149" nowrap valign="bottom">
6%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2153
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">BELLA VISTA</a>
</td>
<td width="149" nowrap valign="bottom">
5.7%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2008
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">CHIPPENDALE</a>
</td>
<td width="149" nowrap valign="bottom">
5.6%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2140
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">HOMEBUSH</a>
</td>
<td width="149" nowrap valign="bottom">
5.6%
</td>
</tr>
<tr>
<td width="64" nowrap valign="bottom">
2000
</td>
<td width="124" nowrap valign="bottom">
<a target="_blank" href="/news">HAYMARKET</a>
</td>
<td width="149" nowrap valign="bottom">
5.6%
</td>
</tr>
</tbody></table>
 Source: RP Data
 
 
 
 
 
 
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Top 10 Sydney suburbs for unit rents: RP Data

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The final report by the Productivity Commission into the retailing sector has recommended easing planning and zoning requirements to increase the supply of retail space. 
The commission believes this is the best way to redress the imbalance of power held by shopping centre landlords over smaller retailers. 
The newly formed Retail Council of Australia has been tasked with implementing the commision’s recommendation that state, territory and local governments “broaden business zoning and significantly reduce prescriptive planning requirements to allow the location of all retail formats in existing business zones to ensure that competition is not needlessly restricted”. 
The council must also implement the objectives of the National Retail Tenancy Working Group set up following the 2008 review, including the harmonisation of retail tenancy leases across jurisdictions and developing a common terms framework to be used nationally in reference to retail tenancy leases and the simple meaning of these terms. 
Russell Zimmerman, executive director of the Australian Retailers Association, says the peak body will work alongside the Retail Council in implementing these recommendations:
“Retailers have faced poor trading conditions for the last eighteen months as well as soaring rents and costs. The ARA intends to work as part of the Retail Council of Australia to balance the power between retailers and their landlords through addressing planning and zoning restrictions as well as working to harmonise and nationalise leasing legislation as quickly as possible.”
In its 563-page report, the commission says planning and zoning constraints appeareto be “the root cause of many of the concerns in the retail tenancy market”.
“Simply put, occupancy rates are extremely high in shopping centres due to strong demand for retail space in the face of constrained supply. 
“This places smaller retailers — who do not have the bargaining power of anchor tenants or chain specialty stores — in a very tough bargaining situation. 
“While it is possible for these retailers to ‘vote with their feet’ and move to shopping strips or other locations, the alternative sites are not always commercially attractive.” 
According to the report, planning and zoning controls have had “some adverse impact on the efficient operation of the retail tenancy market by increasing retail centre development prices to a level higher than they would be otherwise [and] reducing the level of localised competition between shopping centre landlords”. 
The report acknowledges the “large gap between rents of anchor tenants and smaller specialty retailers in shopping centres” but also accepts explanations from the likes of Westfield and Mirvac of “the importance of anchor tenants to the success of a shopping centre development”. 
According to the commission there is scope to improving the retail tenancy market by “removing unnecessary restrictions on competition and constraints on the supply and location of retail space through reforms to the planning and zoning regulations”. 
Implementing these reforms, it says, “would potentially increase competition between shopping centre landlords, and reduce the bargaining power of landlords vis-à-vis their tenants, by improving tenants’ ability to relocate close by and preserve their businesses after lease expiry”. 
The 563 page report highlights the growing dominance of shopping centres in the make-up of the retail market. 
“Current planning arrangements have produced 45 million square metres of retail space in Australia which over time is increasingly distributed towards shopping centres. 
“While most retailing still occurs outside of shopping centres, centres represent a growing share of the total market. The contribution of shopping centres to total retail space increased from 28% in the early 1990s to 38% in 2005-06.”
The commission highlighted the following as the key tenancy concerns raised by retailers 
<ul>
<li>Large gap between rents of anchor tenants and smaller specialty retailers in shopping centres.</li>
<li>Significant differences in retail rents in Australia compared to the United States.</li>
<li>Reporting of turnover data in shopping centres is used to set rents at ‘excessive’ levels.</li>
<li>Shop fit-out requirements, particularly the inability of retailers to negotiate competitive quotes for the work undertaken.</li>
<li>Standard lease terms (a provision incorporated in most state and territory legislation in a bid to improve security of tenure for tenants), that are normally of five years duration, do not provide sufficient security and are insufficient to amortise capital costs.</li>
<li>Limited negotiating power of retail tenants in shopping centres at the time of renegotiating a lease.</li>
<li>Landlords exploiting their superior bargaining power when a lease expires by seeking ‘excessive’ rent increases.</li>
<li>Retailers’ lack of security of tenure during ‘lease hold over’ periods.</li>
<li>Lack of publicly available information relating to shopping centre rents.</li>
</ul>
Photograph by Sherwin Huang
 
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Relaxing zoning laws would help struggling retail sector: Productivity Commission

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The Goulburn Valley Hotel, which this weekend entertained punters with Bon Jovi and Pink tribute bands, has sold under the hammer for $6.6 million at auction in Melbourne.
The hotel has annual income of $472,849, reflecting a yield of 7.16%.
It includes a long-term lease with options expiring 2035.
It was sold on behalf of H. MacKinnon and K. Sutherland of Bent and Cougle, receivers and managers of Zurcus Hotel-Motel, who were appointed in October.
The property was marketed by Scott Callow from CBRE, Terry Board from TJ Board, Rocky Gagliardi from Kevin Hicks Real Estate Shepparton and Numurkah and Billy Holderhead from Burgess Rawson.
The hotel, located at 221-233 High Street in Shepparton and about two hours north of Melbourne, was built in 1928.
It stands on a 7,083-square-metre site and features a bistro, a piano bar with seating for 80 people, 40 gaming machines and a licence for 2,032 patrons.
The hotel is located close to both Coles and Woolworths.
It was sold as part of a Burgess Rawson portfolio auction held at Crown Casino in Melbourne on December 7.
The Goulburn Valley Hotel won the Australian Hotels Association Victoria Award for Best Re-Developed Hotel in in 2008 and the AHA National Awards for Best Re-Developed Hotel in Australia in 2009.
 
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Shepparton's Goulburn Valley Hotel sells for $6.6 million

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This year has been a year some in the property market – chiefly sellers and some agents – would possibly rather forget. For buyers it’s been a little better, when there’s been a reasonable supply of good stock. But buyers’ enthusiasm has been constrained by nervousness about economic events unfolding beyond our shores. So while they’ve been out there looking, and while in many cases they’ve been keen to buy, they haven’t wanted to pay too much – certainly not as much as what many sellers are demanding. For many sellers it’s not been a happy result – and some of them will be still on the market with their now stale offerings in the new year.
Read on for our season-by-season account of how the year unfolded.
Late summer
After 2010 finished in a state we described as “balanced and healthy”, 2011 started with a bit of warmth, even moving into “hot” for the $1 million market. On the last weekend in February, clearance rates for the auctions we attended were up at 74% and Bidderman number of bidders per auction) was at two.
But a flush of new stock slated to come on to the market in March and April would be the test of whether the warmth we saw in the last weekend of summer represented an underlying hotting up or a temporary New Year afterglow.
The story was different with the $3 million-plus market, which was dead as a doornail with very few homes changing hands. Geographically too, the trend at the top end of the market reversed – with bayside performing a lot better than the inner east (in fact Brighton townhouses at the $3 million level were almost walking out the door).
Autumn
The New Year’s afterglow had indeed faded by March, with buyers increasingly nervous about world events, the stock market, the government – the whole shebang. Coinciding with this buyer nervousness was a flood of new stock coming onto the market as would-be sellers also nervous about the future decided to try and sell quickly.
The surge in stock was not taken up by the market and consequently we saw declining auction clearance rates and bidder numbers, and a market groaning under the weight of stock numbers. Not only was new stock coming on that would previously have been gobbled up, but it was having to compete with an increasing backlog of pass-ins from previous weeks. This compounding rate of stock build meant price only had one way to go – and that was down. It wasn’t quite a price free fall, however, as most sellers, including those at the $3 million-plus level, had the resources to ride out what they thought was just a blip of negativity.
Red Zone - Bidders under 1.5 - Falling Prices
 <img src="/images/stories/maldec12.gif">
Easter
From around Easter the market had the first of two short periods of 2011 price spiking (September was the other). Those sellers who had the good luck or good management to be in the market at this time saw some good results – especially those with sensibly priced A-grade properties.
May 21st was probably the high point for sellers, with the clearance rate a whopping 84% on the 37 auctions we attended and Bidderman of over 2. It was the 2011 weekend to be selling.
Winter
However, the late autumn cheer turned out to be nothing more than a brief flare of optimism before we went into a grinding winter with little activity as the supply of good quality stock dried up, and buyers stayed home uninspired by what was on offer. It was not so much a negative as a boring market.
Prices flat-lined and even fell on lower-quality homes. The exception was the rare occasion when a quality home hit the market, but overall the market was off by as much as 10% from the last peak in April 2010.
The unluckiest sellers this year were those who went to auction on August 6, the day after the share market plunged by more than 4% on fears the global financial crisis was re-emerging. Just three of the 25 auctions we covered sold under the hammer – that’s 12% – though by the end of the day that figure had gone up to 55%.
After that weekend of panic, the rest of winter wasn’t quite the disaster that some had feared. It was more a “nothing” market, with little good stock on offer, and most auctions seemed a tug-of-war rather than a race – even when there was solid support from buyers. Vendors refused to budge on price, and buyers weren’t prepared to pay what they saw as inflated asking prices – and the result, more often than not, was a stalemate. 
Red Zone - Poor Price Matching - Falling Prices
<img src="/images/stories/maldec122.gif">
Early spring
Vendors in early spring saw a reprieve from the doom and gloom of winter, with the second of the year’s upwards price spikes. The $3 million-plus market did particularly well. On August 27 we reported that 11 homes had sold for a total of $55 million in one week.  Clearance rates were back up over 60%. The heat stayed for most of the month of September for the $3 million-plus market.
Why did this happen? It was like April – it was about buyers looking into the future and seeing not a lot of good stock coming on. The supply and price equation showed that demand was there when conditions were right – and September proved it.
But by mid-September we were back in the ‘two speed market’. This division between over-priced lower grade properties and good quality well priced properties had been going on all year, but it became more entrenched as the year went on and buyers flocked to A-grade auctions and stayed away in droves from the rest.
At the lower end it was a vicious circle of low bidder demand resulting in poor results, making sellers reluctant to put their houses on the market. Which meant little in the way of good stock around, so buyers already feeling cautious about the economy anyway weren’t bothering to go out there and bid on the little that was on offer.
Meanwhile, at that upper level, where buyers weren’t so concerned about the economy, they were snapping up whatever good quality stock was coming on to the market. All you need is couple of bidders at this level to push the price up, and even at this point we were seeing auctions with three or more.
However the up spike was short-lived. By the end of September the heat had dissipated as opportunistic sellers flooded their properties onto the market. Within a fortnight most of the good news for sellers was over. And, as it turned out, that was it for sellers in terms of good news in 2011. For buyers though, the good news has rolled on for the rest of the year with a great combination of falling prices and increased choice.
Late spring
With the AFL season ending a week later than usual, the spotlight was on October 22 as the day of culmination for many auction campaigns and the biggest Super Saturday for 2011. In the $1 million-plus market in the inner east and bayside, 150 auctions were slated, three times as many as the previous week, and twice as many as we’d seen on any weekend since autumn.
But it was a day of pouring rain and frustrated hopes for many sellers, with a clearance rate of just 43% on the 46 auctions we attended. And many of the properties that passed in on that hopeful day sat on the market for weeks to come. Three weeks after Super Saturday our survey showed that a third of those properties still had not sold.
Even so, the market was not exactly on its knees. Yes, prices were continuing to fall and in some cases falling quite substantially. But when vendors were prepared to fall in with the market, there were bidders. In fact, if choice and falling prices are your definition of a good buyers’ market, this was an ideal buyers’ market.
2011 - Falling Prices 
<img src="/images/stories/maldec123.gif">
What does this mean for 2012?
There is a lot talk going on about the market being overpriced and the bubble bursting. But the fact is the bubble has already well and truly burst. Prices right now appear to be tumbling as much as they did in the GFC. Even on some good homes they are down 5% to 10% and as much as 20% since our last highwater mark (April 2010) on the weaker homes.
But markets can turn quickly. To recap on recent history, we saw this kind of price discounting through the GFC in 2008 – although, please the GFC was heavier than 2011. But we also saw prices climbing back up the next year, with a mini-boom occurring up until Anzac Day 2010. During that period some prices on some homes rose by as much as 30%. Our graphic representation to the right shows how prices have moved in the past couple of years.
And while we have seen big price drops in 2011 (on all but the best of the best), there is not the panic we saw three years ago. The market appears to be accepting these ups and downs as a normal gyration and these gyrations may well become bigger and more regular in 2012 as we all become more “fully informed” through media saturation.
Our best bit of advice for 2012: The market is two-faced:
Look at the Bidderman stats over the last three weeks. Two weeks ago we reported 27 bidders on five homes and 14 bidders combined on the other 21 auctions. It was the same story last week, with 17 bidders on four homes but only 15 bidders on the other 21 homes we reported on. This week we saw 26 bidders on seven homes and 24 bidders combined on the other 27 homes we reported on. Which shows that properties that are hot are really hot. Those that aren’t need a good agent.
These facts should show you the importance of
<ul>
<li>Research</li>
<li>Multiple negotiation strategy – low and high</li>
<li>Price framing – may be $100,000s away from where you are.</li>
<li>Selection in buying now determines for your future in selling</li>
</ul>
Mal James is principal of<a target="_blank" title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
 
 
 
 
<ul></ul>
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