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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Despite the spate of headlines forecasting further property gloom, Mortgage Choice CEO Michael Russell says a record level of mortgage pre-approvals indicates that there is “patchy pent-up demand”, with a rate cut likely to spur many sitting on the sidelines back into the market.
Russell says mortgage pre-approvals have risen over recent months, particularly among first-home buyers.
“There are lots of people on the sidelines who are still waiting for a lower entry price – for the market to bottom out – and another cash rate reduction,” he says.
“Another cash rate cut either next week or in February will make property irresistible for investors and stimulate the market.”
Aside from the increase in pent-up demand, Russell says industry-wide home loan approvals have picked up in five out of the last six months.
Having bottomed out in March at around $19 billion from a high of around $24 billion at the end of 2009 (helped out by the first-home owner boost), Russell saysindustry-wide mortgage approvals have now climbed back up to around $21 billion a month.
“My feeling in terms of momentum for the market is one of optimism and confidence,” he says.
And despite the media attention on what is happening globally and in particurlar in Europe, Russell says consumers are not that concerned about macro issues.
“Speculators – those that buy off the plan and look to flip the property at settlement for profit – have lost their appetites for property.
“But investing in property is not about making a short-term investment, it’s about investing for seven to 10 years.”
 
</body></html>

lschlesinger-FZcF9M3vE6

Rate cut will encourage first-home buyers and investors: Mortgage Choice CEO Michael Russell

<html><body>
In the Q+A after his speech last Friday night the RBA governor Glenn Stevens claimed that central bankers are spending a lot of time these days “nowcasting”. That is, trying to figure out exactly how the economy is tracking in the present tense.
In rationalising this allocation of time, he made a statement of the obvious:  unless you know what your starting point is today, it is nigh on impossible to make a credible forecast of where you will be tomorrow.
A more impolite interpretation might be that since the RBA has little faith in its own forecasting prowess – which is why it discarded its November 2010 experiment with ‘pre-emptive monetary policy’ – its next best option is to concentrate its energies on determining how the economy is tracking right now.
That is not as easy as it seems. Even carefully collated data, such as core inflation, is subject to material errors. As regular readers will know, the RBA, media and financial markets were grossly misled by a major downward revision to the second quarter core inflation print.
This had serious ramifications for the RBA’s approach to monetary policy, which it shifted away from a tightening bias. Yet a second revision to these same numbers (which was, therefore, the third time the ABS had attempted to calculate them) increased the Q2 core inflation estimate back up to unacceptably high levels that would normally warrant policy tightening.
Unfortunately, that’s the nature of the imperfect informational beast that the RBA has to grapple with.
Today we get a batch of new data that will shed further light on how <country-region><place>Australia</place></country-region>’s economy is sailing in what is undeniably a stormy global sea. The most important stuff includes the third-quarter capital expenditure data, the ABS’s estimate of capital spending plans over 2011-12, and private credit growth for October.
We also have RP Data-Rismark’s October house price index results, which will show that capital city dwelling prices are down 2.8% in raw terms (4% seasonally adjusted) over the first 10 months of 2011. Given that the dollar value of rents is rising at nearly a 5% per annum rate, this modest 3% to 4% correction in housing costs is no big deal.
Importantly, our house price data precedes the RBA’s crucial November rate cut, which, in concert with record yield curve inversion, has forced home loan rates to plummet to as low at 5.99%.
As a quick aside on the housing market, the ABS tells us that seasonally adjusted housing finance approvals to people buying established homes have increased every month over the last seven months to the end of September.
We also know that consumer confidence in November rose to above-average levels, and, perhaps most importantly, that the previously surveyed expectation among Australian households that rates would rise two to three times in the year ahead has likely evaporated. Today the average Australian family probably expects unchanged rates and/or more cuts.
As I have pointed out before, this means that the “expectational” impact of the RBA’s November cut will be significantly larger than would otherwise be the case.
Have you ever noticed how there tends to be relentless media coverage of deteriorating housing affordability when prices rise, but next to nothing written about improving affordability when prices fall? Without a shadow of doubt, this is the biggest story in the Aussie housing market today.
RP Data-Rismark’s estimate of the national median dwelling price across all regions and dwelling types has fallen from a recent high of $420,000 to $400,000 today. So the cost of Australian housing is unambiguously lower than it was one to two years ago. Concurrently, discounted fixed and variable mortgage rates are now well below their long-term historical averages while disposable incomes per household have been expanding at a healthy 8% per annum pace, according to the ABS’s National Accounts. This has resulted in Rismark’s national dwelling price-to-income ratio falling to its lowest level since before 2003. It is little wonder that first time buyers are returning to the market.
The striking improvement in Australian housing affordability is one reason why Rismark is projecting that there will be a sustained recovery in housing activity by the end of the first quarter next year.
While I am not in the least bit concerned about <country-region>Australia</country-region>’s housing market, given the daily doses of doom and gloom that we are asked to ingest, how is the rest of <country-region><place>Australia</place></country-region>’s economy faring? One needs to address this question before we can turn to the RBA’s December dilemma.
Data flows over the past month or two have confirmed that consumer spending and housing credit are expanding at “new normal” rates that are near household income growth, as you would expect.
Notwithstanding the rhetoric about the specter of a global recession, surveyed business confidence and business conditions remain at trend-like thresholds, which helps explain why business credit growth has recovered of late.
And despite a step-down in job ads and employment growth, Australia’s unemployment rate has remained sticky at a touch above its “full-employment” level.
Beyond the ABS’s small and volatile unemployment survey, we can get further labour market insights by parsing the more comprehensive unemployment benefits data reported by the federal government. In absolute terms, the number of people on the dole has been declining consistently right through to the end of October (see first chart). Expressed as a share of a growing labour force, the decline in dole recipients would be even sharper. There are no signs here of a labour market that is “rolling over”.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov301.gif"><img src="/images/stories/nov301thumb.gif"></a>
The government has created a second series that tracks the number of dole recipients who have been looking for jobs for a relatively short period of time. This is illustrated in my next chart. The main take-away is that the number of people looking for jobs has been falling, not rising, albeit at a reduced rate in 2011 compared to the steeper declines evidenced in 2010.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov302.gif"><img src="/images/stories/nov302thumb.gif"></a>
Finally, last week we got a major upside surprise with the ABS reporting that “construction work done” in the third quarter printed at +12.5% – its highest rate on record and way above consensus forecasts of a +2% increase. Economists believe that this variable alone has the potential to add as much as 1.5 percentage points to the critical third quarter real GDP data.
The available empirical evidence implies that <country-region><place>Australia</place></country-region>’s overall economy is advancing at a trend pace, although when you lift the bonnet there is significant cross-sectional diversity in the growth experienced by individual industries.
While we always knew that a narrow resources investment boom would make this the case, one tends to hear much more from the noisier “have nots”. This can in turn blur one’s vision in respect of the broader economy’s performance.
Telescoped sources of economic growth can also interfere with the integrity of numerical surveys (or polls) of business conditions/confidence if participants’ responses are not weighted by their contributions to overall growth.
The bottom line is that based on the hard data and the RBA’s forecasts for gradually increasing core inflation over the next few years there seems to be no prima facie case for a rate cut next week.
This view was reinforced by the RBA’s top economist, Dr Phil Lowe, who explained, for the avoidance of any doubt, that following the November rate cut domestic “interest rates now are broadly neutral. They're neither expansionary … nor contractionary for the economy.”
While most economists currently expect the RBA to stay its hand in December, the financial markets have been pricing in a 100% probability of a cut for some time.
The interest rate debate is swirling around what experts think is the RBA’s “policy of least regret.”
In this context, there is universal agreement that the chief near-term risk <country-region><place>Australia</place></country-region> faces is to the funding of our banking system, with the wholesale finance markets that supply about 40% of total bank funding temporarily closed.
The concern is that if the banks feel they cannot fund themselves, they will ration credit, and, by doing so, rather myopically kill off economic growth. Of course, we have been here before during the GFC, and know that contrary to some predictions, the banking system did not fall in a heap.
Why? Because the Government decided to lend its pristine AAA credit rating to all ADIs by providing a taxpayer guarantee of deposits, which make up 50-60% of total bank funding, and through an offer of a taxpayer guarantee of the banks’ wholesale debts. In addition to these two insurance policies, the RBA also lent directly and very cheaply to the banks to provide them with enough funds to meet their day-to-day liabilities. Had the Government and the RBA not acted in this way, many Australian banks would have ended up trading insolvent.
The good news for the banks is that the RBA is in the process of launching another, more formal, bail-out program called the Committed Liquidity Facility, which will furnish banks with a line of credit that they can tap during liquidity crises such as the current one.
The RBA is the first to admit that it does not know what is going to happen in Europe, and what, if any, adverse economic shocks might be sent Australia’s way. It has ample time to watch how things unfold.
If the “nowcasting” Glenn Stevens is increasingly fond of reveals that the economy is about to come to a grinding halt, and if unemployment starts to rise at a surprising rate, he can comfortably cut rates.
Yet dropping rates today in response to bank funding problems prior to his nowcasting telling him to do so is foolish for at least two reasons.
First, there are many much more direct policy measures that can be used to immediately cauterize these issues, such as the assorted taxpayer guarantees and RBA liquidity facilities discussed above.
A cut in interest rates, on the other hand, is likely to be almost entirely absorbed by the banks in the form of margin expansion, which they would argue they need in order to vouchsafe their profitability.
This has two adverse consequences for the RBA and taxpayers.
The first is that if the RBA cuts its cash rate, and the banks don’t pass it on, this undermines the effectiveness of the RBA’s conventional monetary policy instrument. There is a zero lower bound on how far the RBA’s cash rate can go.
If you assume that banks want to maintain, as a minimum, net interest margins of around 2.5%, it is hard to see how mortgage rates can fall below circa 3% to 3.5%. And that assumes no further margin expansion by the banks along the way, which is heroic. So the RBA probably has the ability to reduce actual lending rates by about 300 basis points, give or take.
The point is that the RBA wants to be very careful to disentangle the policy solutions to bank funding problems and those required to stop an economy heading into recession (especially when fiscal policy is purportedly out-of-action).
Confusing the two could hamper your ability to lower market lending rates and thus stimulate the wider economy. Put differently, the RBA should preserve its policy firepower for when it needs it rather than using it to subsidise bank margins.
The issue for households is that if banks absorb RBA cash rate cuts via margin expansion, the RBA is, in effect, facilitating a wealth transfer from the 5 million families with mortgages, who will not get the benefit of lower rates, to bank executives and bank shareholders.
Don't get me wrong. A sustained deterioration in global economic conditions would absolutely warrant deep cuts by the RBA. Yet unlike its peers overseas, the RBA is in the fortunate position of having most domestic debt being issued in ‘variable rate’ form. This means the RBA can make immediate and very significant changes to household cash-flows through adjustments to its policy rate. In many other countries, such as the <country-region>US</country-region> and <country-region><place>UK</place></country-region>, most household debt is fixed-rate and not, therefore, controlled as closely or immediately by the local central bank.
<country-region><place>Australia</place></country-region> does indeed have an economic insurance policy, or a “Stevens’ Put” <a target="_blank" href="https://www.propertyobserver.com.au/trends/will-the-financial-markets-give-the-rba-a-stevens-put-christopher-joye/2011112352496">as I described it in an earlier column</a>. But instead of trading some of that insurance away to vocal bankers and financial market investors, the RBA should preserve it for the maximum benefit of all Australian households.
Christopher Joye is a leading financial economist. The above article is not investment advice.
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chrisjoye-JYhJsTrNRC

Should the RBA bail out financial markets?: Christopher Joye

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Brisbane house prices registered the biggest fall in dwelling prices nationally over October with values down 2.9% for the month and 9.3% compared with a year ago, according to the RP Data-Rismark October Hedonic Home Value Index Results.
Canberra was the only capital city to register an increase in dwelling values over the month, up 1.6%.
Brisbane units have proved far more resilient, with values up 1.1% for October to be down only 1.4% over the past 12 months.
The average dwelling price in Brisbane declined by 1.6% in October to be down 8% year-on-year with the median price declining to $402,000
The median price for a Brisbane house now stands at $425,000 and at $360,000 for a unit.
The declining in Brisbane dwelling values in October was triple the overall capital city home values decline of 0.5% in the month before the RBA’s decision to cut interest rates.
For the year to date, dwelling prices are down 4% for capital cities.
Regional dwelling prices declined by 0.8% to be down 3.4% over the past 12 months.
<img src="/images/stories/rpnov30.gif">
Sydney and Canberra were the most resilient capital city markets, with dwelling values unchanged in Sydney over October to be down just 1.4% off their peaks while Canberra dwelling prices increased by 1.6% over the month to be 1.1% off peak prices.
Dwelling prices fell 0.6% in Melbourne over October to be down 5.4% year-on-year and 5.8% off the peak.
RP Data director of research Tim Lawless says the year-to-date results highlight the divergent outcomes more clearly. 
“Over the 10 months to October, Canberra and Sydney dwelling values have not moved a great deal: up 0.9% and down 1.4% respectively.”
“In contrast, Brisbane home values have been hit hard and are now off 7.5% while Melbourne dwellings have corrected 5.8% after very strong 25-30% capital growth over 2009-10.” 
“The combination of lower interest rates, cheaper homes, and rising incomes is generating a welcome boost to housing affordability, particularly in those markets where value falls have been more significant,” he says.
For property investors, the 2.8% decline in house prices over 2011 has been offset by solid growth in rents.
 
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Brisbane house prices fall 10% over past year as Canberra only mainland city with rising market: RP Data

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The Mermaid Beach beachfront attracts the highest prices on the Gold Coast – and thereby attracts the greatest attention in both buoyant and depressed markets.
The latest resale hasn't had much publicity, but at 56% less than its 2007 pre-global financial crisis sale price, it’s the highest yet recorded luxury price decline.
The 199 Hedges Avenue property has been bought by Parkdon Pty Ltd, a company associated with Avi Silver from Caulfield. The vendor, Max Twigg, also comes from Melbourne.
It cost $17.5 million in 2007 and resold recently at $7.7 million, meaning the price dropped by about $50,000 a week during his four-year ownership.
Another $10 million plus loss on the Gold Coast's "Millionaires' Row" was incurred by the internet-billing company high flier Daniel Tzvetkoff, who splashed out $27 million in early 2008 on the unfinished mansion of fallen tourism entrepreneur Tony Smith and his wife, Simone. At its mortgagee sale in 2009 it resold at $17 million to drilling tycoon Peter Mitchell, who was cashed up after selling his business for $150 million. Given the Ipswich-born internet whiz-kid spent $8 million on almost completing construction, Tzvetkoff's foray actually translated to an $18 million loss.
Many buyers are only prepared to purchase under market value at the moment, according to valuer Herron Todd White.
The company suggests current enquiry for property is steady, with agents noting that vendors must be keen and willing to meet the market.
"As well as a reduction in the volume of sales, prices since the GFC have fallen by anywhere between 35% and 50%, with the most expensive homes generally suffering the greater price drops," HTW notes.
HTW advised that housing varies from original 1950s beach shacks on single 405-square-metre allotments to luxury mansions built over four to six allotments.
The most recent land content sales have ranged from $4.17 million to $4.25 million.
Quality house sales have been $5 million to $5.5 million on single blocks and $7.7 million for a luxury house on a larger 530-square-metre block of land.
HTW notes sales in Main Beach have also been few and far between, given there are only 15 beachfront house properties in Main Beach and these are generally tightly held.
 
Beachfront Sales (Mermaid Beach and Main Beach)
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="154">
Year
</td>
<td valign="top" width="154">
Number of sales
</td>
</tr>
<tr>
<td valign="top" width="154">
1989
</td>
<td valign="top" width="154">
4
</td>
</tr>
<tr>
<td valign="top" width="154">
1990
</td>
<td valign="top" width="154">
6
</td>
</tr>
<tr>
<td valign="top" width="154">
1992
</td>
<td valign="top" width="154">
2
</td>
</tr>
<tr>
<td valign="top" width="154">
1991
</td>
<td valign="top" width="154">
2
</td>
</tr>
<tr>
<td valign="top" width="154">
1993
</td>
<td valign="top" width="154">
9
</td>
</tr>
<tr>
<td valign="top" width="154">
1994
</td>
<td valign="top" width="154">
5
</td>
</tr>
<tr>
<td valign="top" width="154">
1995
</td>
<td valign="top" width="154">
5
</td>
</tr>
<tr>
<td valign="top" width="154">
1996
</td>
<td valign="top" width="154">
6
</td>
</tr>
<tr>
<td valign="top" width="154">
1997
</td>
<td valign="top" width="154">
9
</td>
</tr>
<tr>
<td valign="top" width="154">
1998
</td>
<td valign="top" width="154">
13
</td>
</tr>
<tr>
<td valign="top" width="154">
1999
</td>
<td valign="top" width="154">
2
</td>
</tr>
<tr>
<td valign="top" width="154">
2000
</td>
<td valign="top" width="154">
8
</td>
</tr>
<tr>
<td valign="top" width="154">
2001
</td>
<td valign="top" width="154">
13
</td>
</tr>
<tr>
<td valign="top" width="154">
2002
</td>
<td valign="top" width="154">
8
</td>
</tr>
<tr>
<td valign="top" width="154">
2003
</td>
<td valign="top" width="154">
10
</td>
</tr>
<tr>
<td valign="top" width="154">
2004
</td>
<td valign="top" width="154">
5
</td>
</tr>
<tr>
<td valign="top" width="154">
2005
</td>
<td valign="top" width="154">
5
</td>
</tr>
<tr>
<td valign="top" width="154">
2006
</td>
<td valign="top" width="154">
15
</td>
</tr>
<tr>
<td valign="top" width="154">
2007
</td>
<td valign="top" width="154">
14
</td>
</tr>
<tr>
<td valign="top" width="154">
2008
</td>
<td valign="top" width="154">
10
</td>
</tr>
<tr>
<td valign="top" width="154">
2009
</td>
<td valign="top" width="154">
8
</td>
</tr>
<tr>
<td valign="top" width="154">
2010
</td>
<td valign="top" width="154">
4
</td>
</tr>
<tr>
<td valign="top" width="154">
2011
</td>
<td valign="top" width="154">
5*
</td>
</tr>
</tbody></table>
* includes under contract sale
Source: Herron Todd White
“There has only been one sale of a 400-square-metre allotment (improved with a one-bedroom cottage) at $3.6 million early this year,” it notes.
Twigg – who made his fortune in waste management – has indicated he did not know that the market in Hedges Avenue properties had been fuelled in the boom by unusual and hidden deals.
The Ray White Australia chairman Brian White recently noted that Hedges Avenue in recent years had been "like a property casino and people were caught up in a frenzy to get in".
Investigations by the Queensland Office of Fair Trading and police into alleged property price manipulation continue.
 
Top 8 Mermaid Beach price collapses (compiled by Property Observer)
<img src="/images/stories/hedgesave199use.jpg">
199 Hedges Avenue, sold in 2011 for $7,700,000, last sold for $17.5 million in 2007, a loss of 56%
<img src="/images/stories/hedgesave247.jpg">
247 Hedges Avenue, sold in 2010 for $5 million, last sold for $10.25 million in 2007, a loss of 51%
<img src="/images/stories/hedgesave31.jpg">
31 Hedges Avenue, sold in 2011 for $5.4 million, last sold for $11 million in 2008, a loss of 50%
<img src="/images/stories/albatross19right.jpg">
19 Albatross Avenue, sold in 2010 for $6 million, last sold for $11 million in 2008, a loss of 45%
<img src="/images/stories/albatross31.jpg">
31 Albatross Avenue, sold in 2009 for $5.35 million, last sold in 2008 for $9 million, a loss of 40%
<img src="/images/stories/hedgesave492.jpg">
49 Hedges Avenue, sold in 2000 for $9.5 million, last sold in 2008 for $16 million, a loss of 40%
<img src="/images/stories/albatross89.jpg">
89A Albatross Avenue, sold in 2010 for $6.5 million, last sold in 2006 for $10 million, a loss of 35%
<img src="/images/stories/hedges33.jpg">
33 Hedges Avenue, sold in 2009 for $17 million, last sold in 2008 for $27 million, a loss of 37%
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jchancellor-FAypfDUnLy

The eight biggest losses on Mermaid Beach's Millionaire's Row show no post-GFC recovery in sight

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?The tightening Sydney rental market has its epicentre in the inner-city suburbs of Leichhardt and Randwick as vacancies across the greater metropolitan region tightened from 1.4% to 1.3% over October, according to NSW Department of Housing analysed by PRDnationwide.





Leichhardt in Sydney’s inner west is experiencing the largest increase for a two-bedroom unit (20% year-on-year to September) and the second largest for a three-bedroom house (12%), while the Randwick municipality in Sydney’s east recorded the largest growth in median rent for a three-bedroom house, equating to 14.3% between September 2010 and 2011.

<div><img src="/images/stories/prdnov30.gif"></div>
<div></div>
<div></div>
<div><img src="/images/stories/prdnov301.gif"></div>
<div></div>
<div></div>
<div></div>
<div></div>
<div></div>
<div>Source: PRDnationwide</div>
<div></div>
<div>
 The median rent for a three-bedroom house in both Randwick and Leichhardt was $800 per week as at September 2011.</div>
<div>
The average increase in median rent across all municipalities in greater metropolitan Sydney equated to 5.8% for a three-bedroom house, with a 6.4% increase in the rent for a two-bedroom unit – slower growth than the average of 8% per annum (three-bedroom house) and 8.3% (two-bedroom unit) recorded over the past five years.
The increase in rents in Randwick follows growth in demand for rental accommodation in the suburb, with the municipality now accounting for 4.2% of the total 531,838 rental bonds held in the greater metropolitan region.
The highest proportion of rental bonds is held in City of Sydney, accounting for 9.5% of total bonds.
Sydney and Randwick were also found to contain some of the highest concentration of rental properties of the total dwelling stock, corresponding to 63% in Sydney and 47% for Randwick.
The most expensive place to rent in the Sydney metropolitan area is in the Waverley Council, in the inner east, which includes the suburbs of Bondi and Bondi Beach, where the median rent for a three-bedroom house is of $980 per week.
The most expensive median rent for a unit was recorded in the City of Sydney, where a two-bedroom unit returned $600 per week in September 2011.
Around Sydney the council area of Botany Bay recorded strong increases in new rental bonds for the past three consecutive quarters, with a September growth representing an 18.4% increase on the same period in 2010.
<a target="_blank" href="/news">Nationally, houses are currently taking an average of 56 days to sell with units typically selling in 54 days</a>, according to RPData.
 
 
 
 
</div>
<div></div>
<div></div>
<div></div>
<div></div>
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Leichhardt and Randwick the epicentre of Sydney rental squeeze

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Meriton boss Harry Triguboff expects the Reserve Bank to cut interest rates at its meeting next week (December 6) and says reducing the lending rate is one of the best ways to encourage people back into the property market.
“If we want to see the economy improve, we must do more to help people invest in property. 
“Keeping interest rates low is a very good place to start,” he says. 
Triguboff also backed the property market over the share market, saying investing in the share market should be secondary to investing in the property market. 
“When the stock market crashes, you need something ‘concrete’ to fall back on,” he says. 
“To build a better economy, we need to build more housing. We need to make it easier for young people and investors to enter the property market and councils must make the approval process faster so we can build more, sooner. 
“Help people get started, help them invest, help them use their superannuation for property. Get them into bricks and mortar.” 
Triguboff made his comments on the need for an interest rate cut following the launch of his latest project, Oceanvale at Warriewood in Northern Sydney, where prices begin at $425,000 for a one-bedroom unit.
Speaking yesterday at the AICC 2011 Annual Property Lunch in Sydney, he warned of the growing impact of global factors, in particurlar China on Australia’s economy.
“If China does something different, it affects us, even if it has nothing to do with us. Before we had to think only of ourselves, now we have to think of the whole world,” he said.
He says there is a growing demand for one-bedroom apartments and Meriton will build more one-bedroom units as people are less willing to share.
Triguboff’s comments follow the release of the government’s mid-year budget review yesterday with plans to cut spending over the next four years and reduced growth forecasts with the Organisation for Economic Cooperation and Development downgrading Australia's economic growth for calendar 2011 from 2.9% to 1.8%.
<a href="https://www.propertyobserver.com.au/economy/europe-worries-and-budget-cuts-intensify-pressure-for-rba-to-cut-rates-in-december/2011112952594">AMP chief economist Shane Oliver</a> said yesterday that he expected the RBA to cut rates in December, arguing that waiting until February 7 meeting would be too high a risk due to “the increase threat from the Eurozone debt crisis, rising bank funding costs and increasing fiscal drag following federal government belt tightening”.
 
 
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Harry Triguboff says interest rates must fall next week

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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.
{yoogallery src=[images/stories/november30makepeace]}
Cashed-up holidaymakers who were hoping to spend their summer break on Makepeace Island will have to make other plans – Sir Richard Branson’s $16,890-a-night Noosa getaway was fully booked over Christmas and New Year’s and is busy over the summer period.
Branson opened his private retreat to the luxury holiday market <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/sir-richard-bransons-noosa-getaway-for-hire-%E2%80%93-for-%2417000-a-night/2011071150769" target="_blank">earlier this year</a>, and spokeswoman Kirsty Aitken says it has proved popular with well-heeled travellers.
“The interest we have had after just four months of opening has been overwhelming, and we are thrilled with the bookings we have received,” she says.
Aitken says many of the island’s visitors have been well-known names who choose to holiday there to escape the pressures of fame.
“Our clients often book the island because of its seclusion and to meet their desire in most cases not to have their celebrity known,” she says.
Branson, along with Virgin Blue executives Brett Godfrey and former colleague Rob Sherrard, bought the heart-shaped island for $2.86 million in 2007. It rents for between $7,900 per night for up to eight guests during the off season to $16,890 per night for up to 22 guests during busy periods.
There is a main house, three two-bedroom villas and a four-bedroom guest house. It has a boathouse, lagoon pool and a 15-person spa.
Guests travel to and from the island by riverboat, and it contains a host of facilities, such as an outdoor cinema and a full-sized tennis court, to keep them occupied.
When he announced that Makepeace island would be available to rent, Branson said: "When neither Brett nor myself are visiting Makepeace, we will make the island and its facilities available for others to enjoy the tranquillity of what is a very special place.”
One can assume the Virgin chairman will be spending more time on his island the next time he is in Australia.
 
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cknowlton-QnEa6ntUYP

Sir Richard Branson's Noosa getaway, Makepeace Island, booked out for summer in the tropics

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It is just 31 days before the NSW government limits first-home buyer full stamp duty concessions to those buying newly constructed houses and units.

From January 1, 2012 first-home buyers will no longer have their stamp duty fully subsidised by the state government if they buy established homes.

First-home buyers who buy established houses or apartment next year will forego up to $17,990 in stamp duty exemption. 

Purchases must be exchanged before January 1, but can settle later next year.

The measure was unveiled by Treasurer Mike Baird in the Coalition’s first budget in office on September 6 this year.

"We recognise this is a difficult decision, but we believe it is necessary to make buying a new house relatively more attractive than buying an existing dwelling for first-home buyers," Baird advised.

“The government has therefore decided that from 1 January next year, while all eligible first-home buyers will continue to receive the $7,000 first-home owner’s grant, eligibility for additional stamp duty concessions will be limited to those purchasing newly constructed homes, including ‘off the plan’,” the Treasurer said. 

Baird predicted the first-home buyer housing market would spike up until January 1 as a result of the change and claimed that after January 1 more much-needed new homes would be built.

<a target="_blank" href="https://www.propertyobserver.com.au/auctions/agents-rushing-nsw-vendors-hoping-top-get-first-home-buyers-before-the-stamp-duty-concessions-conclude/2011112952609">Some estate agents have held first-home buyer auctions to engender a competitive element for their listings</a>, but there appears not to have been a herd of buyers paying silly prices. 
First-home benefits of up to $24,990 have been available, including the $7,000 first-home owner grant and a duty exemption of up to $17,990 under the First Home Plus Scheme.

The $7,000 first-home buyer grant will continue to be available to all eligible first-home buyers in 2012.
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NSW first-home buyers have a month left to secure stamp duty concessions on established homes

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The Future Fund chairman David Murray, who served as Commonwealth Bank of Australia chief executive for a decade until 2005, has warned that houses are overvalued and predicts that prices will at best stay flat for some time.

He believes house prices are higher than justified by income levels, but says this does not mean prices will collapse.

Instead, prices and incomes would come back into line over several years, he told the Australian Business Economists’ annual forecasting conference.

“The lending system for housing has resulted in a house price which is higher than it should be,” he said in answer to a question reported by the Australian Financial Review.

“I believe that will be worked through by stabilisation of house pricing and rising increases in incomes and hopefully that’s the outcome.”

Murray said in hindsight he saw that banks were funnelled into home lending by prudential standards that required them to hold much less capital in reserve against home loans than for other loans.

Banks were unlikely to face major losses on home loans based on historical experience but it was a concern that they needed to refinance the home loans on international markets, which were showing signs of stress, Murray added.
 
 
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Future Fund chairman David Murray says Australian housing overvalued

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In Queensland, the Gold Coast holiday rental market is picking up again after a tough year, says Clark Brackenridge, principal of Raine &amp; Horne Surfers Paradise.
“Our property markets are showing signs of turning the corner, and as it stands, our holiday bookings for the Christmas period are reasonably strong, and are certainly well up on this time last year.
“In addition, buyers are beginning to recognise that property prices on the Gold Coast represent good buying, with good yields available to investors,” says Brackenridge
Two-bedroom, two-bathroom apartments overlooking the beach can be purchased for $400,000, and rent for $250 a night as a holiday rental, or for between $500 and $550 a week to long-term tenants.
In Far North Queensland, Port Douglas is also maintaining a steady stream of holiday bookings, says David Cotton, Principal of Raine &amp; Horne Port Douglas / Mossman.
“To date, our holiday bookings have been on a par with 2010, if not higher, and we currently have between 60% and 70% occupancy for Christmas.”
Luxury homes on the hill overlooking Port Douglas can rent for between $5,000 and $7,000 a week, notes Cotton, but ultimately, the town runs the gamut of holiday accommodation, including backpacker lodging and beachside holiday units.
“For buyers interested in purchasing a slice of the Far North Queensland holiday lifestyle, quality holiday homes start from $1 million and provide returns of between 3% and 5%,” Cotton adds.
 
 
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